Innovatec Spa · MIL:INC
Innovatec Spa — Mid & Small in Milan Conference 2023
34 slides from Innovatec Spa's conference presentation, Nov 23, 2023
Slide 1: Innovatec Group Company Presentation
INNOVATEC GROUP TOWARDS A CLEANER FUTURE, TOGETHER COMPANY PRESENTATION Mid & Small in Milan Conference 2023 INNOVATEC GROUP 23 november2023
Slide 2: Company Presentation agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 SEPTEMBER 30, 2023 RESULTS
Slide 3: Innovatec a lead player in the clean tech industry
INNOVATEC A LEAD PLAYER IN THE CLEAN TECH INDUSTRY Vision Shaping the future towards an alternative, sustainable development model to help Corporate, Communities & People to embrace sustainability and reduce environmental footprint Mission Diversification and integration of innovative end-to-end sol
Slide 4: Business units to cover all cleantech value chain
INNOVATEC: 2 BUSINESS UNITS TO COVER ALL CLEANTECH VALUE CHAIN Innovatec’s offering address Corporate, People, Communities and PA’s with a 360° degrees offering portfolio to cover circularity and energy needs to enable the path toward sustainability BU Environment & Circular economy Innovatec S.p.A
Slide 5: Innovatec's key figures: impressive growth
INNOVATEC’S KEY FIGURES IMPRESSIVE GROWTH…. CAGR ‘20-’22 22% 289,2 237,8 REVENUES 161,2 (€M) 42,7 41,9 31,0 46,1 0 2 16 FY 0 2 17 FY 0 2 18 FY 0 2 19 FY FP 20 20 FY FP 20 21 FY 0 2 2 FY CAGR ‘20-’22 22% 32,9 32,4 17,9 11,3 11,7 EBITDA 1,7 (€M) (17,1) CAGR ‘20-’22 7,5 6,1 7,8 10,7 18,7 34% EBIT (30,9
Slide 6: With a solid asset base
WITH A SOLID ASSET BASE 8 SORTING & TREATMENT PLANTS 7 BIOGAS AND PV PLANTS 3 LANDFILLS 3.300 EQUIPMENT & VEHICLES 600kt WASTE MANAGEMENT Lazzate 2.000 CLIENTS (95% RETETION RATE) Cermenate Chivasso Milano Romano 5 CONSORTIA (Batteries, WEEE, Tyre, Bedizzole Collegno Compositi, Textile) PV panel rec
Slide 7: 2023: a transition year
- 2023: A TRANSITION YEAR…... M&A SPEED UP + SLOWDOWN IN INDUSTRIAL PRODUCTION STOP & GO IN ECOBONUS 110% in order to gather some of the strategic assets leveraging on its capacity to produce positive cash flows and to The decrease on revenues, margins and cash generation was receive additional debt
Slide 8: 2026 Plan: relaunch opportunity
2026 PLAN: RELAUNCH OPPORTUNITY 500€M REVENUES 66€M EBITDA 14% EBITDA MARGIN 13,9% 11,3% 12,0% CAPEX +77€M HR (+137 to 2026) NFP TO ZERO Leverage available for futher business development
Slide 9: Company Presentation agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 SEPTEMBER 30, 2023 RESULTS
Slide 10: ESG rating received in 2022
ESG RATING RECEIVED IN 2022 Morningstar Sustainalytics, a company specialized in developing research, ratings and analytical data on ESG parameters, analyzed Commercial Innovatec performance, Industry Services providing a high-quality Sub Industry Facilities score that is useful in Maintenance suppo
Slide 11: Our strategy towards carbon neutrality
OUR STRATEGY TOWARDS CARBON NEUTRALITY Implementing all the proposed actions, a -17% reduction in emissions is Projected emissions Carbon Management Plan (t CO2eq) observed by 2026 compared PROJECTED REDUCTIONS TOT. 2024 to the Business As Usual (ton CO2eq)* - 26 (BAU) scenario updated to -17% Light
Slide 12: Our carbon management plan
OUR CARBON MANAGEMENT PLAN ACTIONS 2024 2025 2026 Innovatec S.p.A. POLICIES Coordination with sustainability committee POLICIES Updating emission sources and periodic reporting POLICIES Scope 3 Evaluation REDUCTION ACTIONS Light vehicle electrification COMPENSATION ACTIONS Renewable energy purchase
Slide 13: Company Presentation agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 WHERE WE ARE TODAY 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 SEPTEMBER 30, 2023 RESULTS
Slide 14: Ambitious EU targets will boost demand for circularity
AMBITIUS EU TARGETS WILL BOOST DEMAND FOR CIRCULARITY In the coming years, all industries will face several challenges related to the recycling of components and waste to reduce their environmental impact. Innovatec has several opportunities to expand its market presence. RECYCLING SHARES % 35% 65%
Slide 15: Acceleration toward clean & renewable energy in Italy
ACCELERATION TOWARD CLEAN & RENEWABLE ENERGY IN ITALY RENEWABLE ENERGY MARKET, CUMULATIVE INSTALLED CAPACITY (GW) +7,4% 80,3 +3,7% 8,9 56,6 45,4 18,9 37,9 CAGR CAGR 8,7 ‘17-’22 ‘22-’30 8,6 14,1 8,4 11,8 Others +0,4% +1,8% 9,8 52,4 33,7 Wind +3,8% +5,4% 19,7 25,0 Solar +4,9% +9,7% 2017 2022 2026 2030
Slide 16: Future growth drivers in main industries
FUTURE GROWTH DRIVERS IN INNOVATEC REFERENCE MAIN INDUSTRIES Next years challenges will accelerate our Client’s journey toward sustainability: Automotive will switch to EV increasing recycling, Fashion will be revolutionized by green fashion and growth of recycling, 10 millions of buildings will be
Slide 17: Clients industry trends: other industries
INNOVATEC’S CLIENTS INDUSTRY TRENDS: OTHER INDUSTRIES Other Industries expected to experiment future massive growth in sustainability transition FOOD & BEVERAGE ELECTRONICS & BATTERIES MATTRESSES & DRYWALL FOOD&BEVERAGE MARKET (€Bn) CONSUMER ELECTRONICS MARKET (€Bn) EU IT MATTRESSES MARKET 29M 5M 5%
Slide 18: Markets highlights: significant growth opportunities
MARKETS HIGHLIGHTS: SIGNIFICANT GROWTH OPPORTUNITIES CORPORATE PEOPLE, COMMUNITIES & PA WASTE CONSTRUCTIONS & BUILDINGS <0,9% 76 Mtons* SPECIAL WASTE VOLUMES (2020) Innovatec’s share in waste volume ITALIAN BUILDINGS BELOW ENERGY AUTOMOTIVE ~78% EFFICIENCY TARGET (9,7 millions of buildings) EXPECTED
Slide 19: Company Presentation agenda
INNOVATEC GROUP COMPANY RESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 SEPTEMBER 30, 2023 RESULTS
Slide 20: Haiki+: the ability to envision a new future
HAIKI+: THE ABILITY TO ENVISION A NEW FUTURE The BU serves the so-called “special waste producers” and provides environmental services at every step of the cycle, WASTE SERVI CE CLI ENTS ACTI VI TI ES CONSORTI A COLLECTI ON / SORTI NG & TRANSPORT TREATMENT DI SPOSAL RECYCLE / RECOVERY … Manufactur
Slide 21: The new 360° energy clean tech platform
THE NEW 360° ENERGY CLEAN TECH PLATFORM Sustainability & System RES Asset Development Green Energy Portfolio Decarbonization Integrator of Energy Pillar & Management Management Strategy Transition solutions • Carbon inventory analysis • Management of the entire • Feasibility Analysis • Energy portfo
Slide 22: Offering portfolio for photovoltaic plant development
OFFERING PORTFOLIO FOR PHOTOVOLTAIC PLANT DEVELOPMENT To affirm our role as 360° ENERGY CLEAN TECH PLATFORM we designed a clear Offering Portfolio for ground mounted, utility scale Photovoltaic plant development. Thanks to these different types of offering we will seize several market opportunities
Slide 23: 2026 Plan: growth & financial ambitions
2026 PLAN: GROWTH & FINANCIAL AMBITONS Cumulative CAPEX and Recruitments (2023-2026) DECARBONIZATION PLAN TO REDUCE HARD CAPEX M&A GROUP’S EMISSIONS ~63% ~62% Assets renovation Operating Cash vs ‘22 Flow for CapEx 3 (‘23-‘26) CAGR Revenues 478 23,7% (€M) CAPEX + M&A 332 €77 M 289,2 252 54 Investing
Slide 24: Business unit breakdown
BUSINESS UNIT BREAKDOWN ENV. & CIRC. Business • Expansion of its service portfolio, complementing CAGR % the existing offer with a MEuro 2022A 2023F 2024BP 2025BP 2026BP '23-'26 new platform of Clean Tech solutions supported Environment & Circular Economy 176,0 224,0 278,0 by investments in Energy E
Slide 25: Increased contribution from EE and treatment activities
INCREASED CONTRIBUTION FROM EE AND TREATMENT ACTIVITIES In the Plan period Environment & Circularity and Energy Efficiency & Renewables contributes to revenues growth at 2026P respectively for an increase of €94M and €132M. ∆ Environment & Circularity + €94 M ∆ Energy Efficiency & Renewables + €132
Slide 26: Net financial position
NET FINANCIAL POSITION According to estimates, a strong exponential growth 2,4 x of cash & cash equivalents 2,2 x is expected, projected to FINANCIAL PAYABLES - RECEIVABLES increase from just 1,4 x CASH & CASH EQUIVALENTS €10million to 24 million by 2026. This, combined with a PFN / EBITDA general c
Slide 27: Positive cash generation
POSITIVE CASH GENERATION CUMULATED CASH FLOW 2023 - 2026 +€19M STRONG NET CASH TO EQUITY Net consolidated cash generated during the plan, while reducing €25M financial debt and after €77M Capex and M&A ~50% of the Net cash generated during the plan €10M ~25% of the cumulative (€M) Dividend in 2026 n
Slide 28: Company Presentation agenda
INNOVATEC GROUP COMPANY PRESENTATION 01 INNOVATEC IN ACTION 02 OUR PLAN TOWARDS SUSTAINABILITY 03 MARKET OVIERVIEW 04 FINANCIAL PLAN 2024 - 2026 05 SEPTEMBER 30, 2023 RESULTS
Slide 29: Results as of 30 September 2023
RESULTS AS OF 30 SEPTEMBER 2023 REVENUES €149,9m (N22: €222,3m) EBITDA €19,2m (13%) 219,1 ‘N23 vs N22 ‘3Q23 vs 3Q22 €m €m • BU Env.&EC (€23.4m) • BU EE&RES €-2,4m 149,9 • Holding net costs €-1,8m EBIT a €4,6m (3%) 59,3 **** 53,3 3Q23 EBITDA%: 13% vs 12% REVENUES €53,3m EBITDA%: 13,7%vs 7,8% 27,0 EBI
Slide 30: Revenues and EBITDA breakdown 9M23
REVENUES AND EBITDA BREAKDOWN 9M23 REVENUES BREAKDOWN EBITDA BREAKDOWN €M N23 N23 €M EE & RES 26,6 (N22: 79,5) EE & RES (2,4) (N22: 10,9) (1,8) Holding 0,2 Holding - €149,9M €19,2M Env. & EC 23,4 (N22: 17,8) Env. & EC 123,1 (N22: 142) 30
Slide 31: Revenues and EBITDA breakdown 3Q2023
RICAVI ED EBITDA BREAKDOWN 3Q2023 REVENUES BREAKDOWN EBITDA BREAKDOWN 3Q23 3Q23 EE & RES 0,4 (3Q22: 18,5) EE & RES 11,3 (3Q22: 18,5) - 0,1 Holding - (0,7) Holding €53,3M €7,3M Env. & EC Env. & EC 41,9 (3Q22: 40,6) 7,6 (3Q22: 4,2) 31
Slide 32: Capex & M&A
CAPEX & M&A CAPEX and M&A at Euro 20,5 million of which Euro 6,7 million M&A €M CAPEX AND M&A BU ENV&EC M&A €M M&A 6,7 Holding Euro Milioni EE&RES 0,1 ESI S.p.A. 0,9 0,8 SEA S.p.A. 0,3 €20,7M Circularity 0,6 Vescvo Romano & C. S.r.l. 2,5 BU EE&RES Arum S.p.A. 2,5 Totale 6,7 Env&EC 13,0 32 * In N22 n
Slide 33: Net financial position 30 September 2023
NET FINANCIAL POSITION 30 SEPTEMBER 2023 The Net Financial Position as at 30 September 2023 was negative at about Euro -69 million (Euro -50 million as at 31 December 2022) substantially due to Capex and M&A investments made during the period. During the first half of the year, there was a gradual c
Slide 34: Net financial position
NET FINANCIAL POSITION Negative at Euro 69 milioni as of 30 September 2023 NFP €M CASH FLOW €M 69,0 60,2 49,7 2022 1H23 N23 34
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