Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — H1 2022 Earnings Presentation
19 slides from Industrie De Nora Spa's earnings presentation, Aug 4, 2022
Slide 1: 1H-2022 Consolidated Results
1H-2022 Consolidated Results 4thAugust 2022
Slide 2: Key Highlights
Key Highlights STRONG ORGANIC INCREASING ALL-TIME HIGH SOLID CAPITAL GROWTH PROFITABILITY BACKLOG STRUCTURE €410.5m €102.3m ~€616m ~0.2x 1H-22 Revenues 1H-22 Adj. Ebitda As of June-22 Net Debt / Adj. EBITDA +61.8% vs 1H21 24.9% Margin +12.6% vs FY 2021 €19m Net Debt +c.700bps vs 1H21 (June-22) Elect
Slide 3: Progressing on H2 projects to support future growth
Progressing on H2 projects to support future growth NEOM Project Camacari Industrial Complex (1) (Largest Hydrogen Project Globally) (First industrial scale green Hydrogen Site in Brazil) FURTHER POSITIVE DEVELOPMENTS ◼ EU Commission approves public support for Important Project of Common European I
Slide 4: Best-in-class backlog and evolving pipeline of opportunities provide visibility around solid growth
Best-in-class backlog and evolving pipeline of opportunities provide visibility around solid growth Scope of Potential Size Supply Total Value BACKLOG1 ~0.3 GW ~€35m CONTRACTED VOLUMES FROM tk nucera NEWLY ~2.3 GW • Electrodes ~€250m SECURED ORDERS2 • Cell Manufacturing • Electrode Package • Electro
Slide 5: Strong Organic Revenue Growth
Strong Organic Revenue Growth (€m) Key highlights 61.8% Y-o-Y Growth Electrode Technologies 410.5 ◼ Revenue growth of +57.4% >2X growth Y-o-Y (+€83m) almost equally driven 6.9 by price increase for indexation to noble metals and volume from new projects in both Chlor- 253.7 175.7 65.9% growth Y-o-Y
Slide 6: All-time-high backlog providing revenue visibility
All-time-high backlog providing revenue visibility Backlog as % Key highlights of next year 46% 60.6 Revenue1 ~250 at July 30th 1H 2022A Backlog by ◼ All-time high backlog as of 1H Year of Deployment 2022 (€616.3m, +12.6% vs. Full 613.2+0.6% 616.3 Year 2021 results) +12% 547.1 31.9 34.6 2025+ Electr
Slide 7: Proven ability to pass-through raw materials price increase
Proven ability to pass-through raw materials price increase COGS (€m) SG&A Costs (€m) Corporate Costs (€m) Key highlights ◼ In 1H 2022, COGS have been in line with FY 2021 relatively to As % sales, confirming De Nora’s of 64.4% 61.9% 11.7% 9.0% 4.2% 2.8% ability in passing-through raw Sales material
Slide 8: Premium Profitability with Increasing Margins
Premium Profitability with Increasing Margins Adj. EBITDA (€m) Key highlights Total Margin 17.8% 24.9% Electrode Technologies: Water Tech. Margin 13.4% 23.0% Electrode Tech. Margin1 20.9% 28.7% ◼ Surge in profitability driven by: (i) 126.8% revenue growth exploiting Y-o-Y operating leverage effect a
Slide 9: Net working capital evolution
Net working capital evolution (€’m) Key highlights ◼ Net Working Capital has reached €322.9m in 1H 2022 as a result of: ➢ Inventory increase driven by volume and safety stock of noble metal price increase (+€6m) and other raw materials stock (~50% 2021 1H 2022 of total inventory) (€m) 2021 1H 2022 ➢
Slide 10: Net Financial Position Evolution
Net Financial Position Evolution (€’m) Key highlights Net Debt / ~0.2x LTM EBITDA 1.2x Adj. ▪ Strong operating performance offsetting increase in NWC and resulting in a stable net financial position vs FY2021 ▪ Cash flow from operating activities fully financed NWC, capex and dividends ▪ IPO Capital
Slide 11: Update on 2022 Guidance
Update on 2022 Guidance Old 2022 New 2022 Key highlights Guidance Guidance ▪ Revised Revenue ▪ Significant increase in Pools business thanks to staycation effect, market €830-880m €880-910m demand and backlog Revenue 2022E 2022E ▪ Revised Profitability ▪ ET: (i) operating leverage effect coupled wit
Slide 12: Q&A
Q&A 12 © 2022 De Nora WE ARE DE NORA
Slide 13: Additional Materials
Additional Materials 13 © 2022 De Nora WE ARE DE NORA
Slide 14: Income Statement
ADDITIONAL FINANCIALS Income Statement (€m) H1 2021 H1 2022 Q2 2021 Q2 2022 Revenue 253.7 410.5 142.4 210.4 YoY Growth (%) Change in inventory of finished goods and work in progress 15.5 14.5 4.0 7.7 Other income 2.0 2.5 1.3 0.9 Costs for raw materials, consumables, supplies and goods, excluding uti
Slide 15: Income Statement | Focus on EBITDA Adjustments
ADDITIONAL FINANCIALS Income Statement | Focus on EBITDA Adjustments (€m) H1 2021 1H 2022 Sales 253.7 410.5 EBITDA 42.9 79.6 Margin (%) 16.9% 19.4% Costs relative DND fire 0.9 Terminations costs (labor + legal expenses) 0.2 0.3 Costs relative to IPO process 2.6 Costs relative to M&A, integration, an
Slide 16: Balance Sheet
ADDITIONAL FINANCIALS Balance Sheet (€m) 2021 H1 2022 Intangible assets 132.8 139.7 Property, plant and equipment 167.6 167.8 Equity-accounted investees 121.8 118.7 Fixed asset 422.2 426.2 Inventories 233.0 283.4 Contract work in progress, net of advances from customers 12.4 19.9 Trade receivables 1
Slide 17: Cash Flow Statement
ADDITIONAL FINANCIALS Cash Flow Statement (€m) H1 2022 H1 2021 EBITDA 79.6 42.9 Losses on the sale of property, plant and equipment and intangible assets 0.2 0.7 Other non-monetary items 17.8 (0.5) Cash flows generated by operating activities before changes in net working capital 97.5 43.2 Change in
Slide 18: Disclaimer
Disclaimer The content of this presentation has a merely informative and provisional nature and does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recomm
Slide 19: www.denora.com
www.denora.com 19 © 2022 De Nora WE ARE DE NORA