Interpump Group S.p.a. · MIL:IP
Interpump — Q1 2024 Earnings Presentation
28 slides from Interpump's earnings presentation, May 15, 2024
Slide 1: Interpump Group 1Q2024 Financial Results
INTERPUMP GROUP 1Q2024 Financial Results - 15th May 2024
Slide 2: Index
INDEX ▪• KEY HIGHLIGHTS ▪• 1Q2024 4Q-2023FINANCIAL RESULTS PRELIMINARY FINANCIAL RESULTS ▪• ESG PATH GROUP SUSTAINABILITY PATH ▪• OUTLOOK ▪• ANNEX 1
Slide 3: Key Highlights
1Q2024 ▪ KEY HIGHLIGHTS 2
Slide 4: Towards Margin Protection & Cash Improvement Targets
1Q2024 TOWARDS MARGIN PROTECTION & CASH IMPROVEMENT TARGETS ▪ On the right path to the goals of margin protection 2024 SALES, EBITDA & FCF EVOLUTION (2-3) % change compared to previous reporting period and FCF generation improvement 160% 142.2% ‒ Effective margin protection 140% 120% • Organic sales
Slide 5: 1Q2024 Financial Results
1Q2024 ▪ KEY HIGHLIGHTS ▪ 1Q2024 FINANCIAL RESULTS 4
Slide 6: Group – Effective Margin Protection
1Q2024 GROUP – EFFECTIVE MARGIN PROTECTION ▪ 1Q2024 – Sales: normalisation trend exacerbated by comparison with best 1Quarter in Group history – Profitability: effective margin protection thanks to division diversification and business model flexibility – NFP: delivering improvement in cash flow gen
Slide 7: Divisions – Consistency with Division Features
1Q2024 DIVISIONS – CONSISTENCY WITH DIVISION FEATURES ▪ Hydraulics – Sales: “agriculture” and “earth-moving machinery” in a stabilisation phase – EBITDA: countermeasures gradually kicking in ▪ Water-Jetting – Sales: “complete system” and “pressure pump” best performer among most important categories
Slide 8: Sales – Normalisation and Comparison
1Q2024 SALES – NORMALISATION AND COMPARISON ▪ 1Q2024: Hydraulics more impacted by normalisation, 1Q2024 GROUP SALES EVOLUTION Water Jetting more influenced by comparison – Hydraulics: “orbital motors" and “power -7.8% transmission” the weakest, “hoses, pipes & fittings» € 592m -9.2% and «PTO & cylin
Slide 9: NFP – Balancing Cash Improvement and Growth
1Q2024 NFP – BALANCING CASH IMPROVEMENT AND GROWTH ▪ January: US$300m Private Shelf agreement NFP EVOLUTION (1) (€ m) ‒ US$100 single tranche issued • 8 years average duration and 4.17% coupon € 486m € 34m € 3m € 0m € 0m € 3m € 0m € 453m • Gross debt average life from 2.5 to 3 years ▪ March: NFP of
Slide 10: NFP – CAPEX – Last Important Project
1Q2024 NFP – CAPEX – LAST IMPORTANT PROJECT ▪ New Interpump Hydraulics headquarter – 62,000 sq. metres, a total area increase of around 30% – Best environmental standards • Photovoltaic plants with an estimated 2,300,000 kWh annual production and consequently 1.219 Tco2 savings • 10x better thermal
Slide 11: ESG Path
1Q2024 ▪ KEY HIGHLIGHTS ▪ 1Q2024 FINANCIAL RESULTS ▪ ESG PATH 10
Slide 12: Concreteness
1Q2024 CONCRETENESS “A falling tree makes more noise than a growing forest” Lao Tzu 11
Slide 13: 2024 Actions
1Q2024 2024 ACTIONS 2023-2025 ESG JOURNEY 2024 ACTIONS UPDATINGS E.7 Product ECO-design S.1 Injury rate improvement S.6 ESG supply chain evaluation model extension Tax compliance consolidation G.4 in line with best practices G.5 (1) GR1 207-4 information updating G.6 (1) Updating on ESG journey (1)
Slide 14: Outlook
2024 ▪ KEY HIGHLIGHTS ▪ 1Q2024 FINANCIAL RESULTS ▪ ESG PATH ▪ OUTLOOK 13
Slide 15: Consistent Growth Strategy in a Mixed Environment
2024 CONSISTENT GROWTH STRATEGY IN A MIXED EVIRONMENT ▪ Enhancement of Group’s network presence GROUP EVOLUTION IN «HOSES, PIPES & FITTINGS» (1) Sales and EBITDA margin – Water Jetting: 3rd step in Flow Processing in less GS-HYDRO TUBIFLEX TEKNO TUBI than one year ~ € 23m of sales ˃ € 11m of sales ~
Slide 16: Consistent Growth Strategy in a Mixed Environment
2024 CONSISTENT GROWTH STRATEGY IN A MIXED EVIRONMENT ▪ Updating 2024 financial expectations updating ▪ Sales: between -5% and +1% overall (1) – Impact of 2023 acquisitions: January-March for Mouldtech and January-April for I.Mec and Waikato – Impact of 2024 acquisitions: from April for Process Part
Slide 17: Margin Protection & FCF Exploitation Track Record
2024 MARGIN PROTECTION & FCF EXPLOITATION TRACK RECORD 2009 & 2020 SALES, EBITDA & FCF EVOLUTION (1) % change compared to previous reporting period 200% 185.3% 150% 100% 63.2% 50% 2009 2020 0% -12.6% -13.6% -50% -29.7% -48.4% Sales EBITDA FCF 2 2 GROUP 2019-2021 COGS, LABOUR COST GROUP 2019-2021 SAL
Slide 18: Annex
ANNEX ▪• KEY DISCLAIMER HIGHLIGHTS • 4Q-2023 DETAILS ▪ 1Q2024 FINANCIAL RESULTS • 2023 ESG ACTIONS ▪ OUTLOOK ▪ ANNEX 17
Slide 19: Disclaimer
ANNEX ▪ DISCLAIMER 18
Slide 20: Disclaimer – Performance Indicators
ANNEX DISCLAIMER − PERFORMANCE INDICATORS The Group uses several alternative measures that are not identified as accounting parameters in the framework of the IFRS standards in order to allow the trend of economic operations and the Group's financial position to be better evaluated. Such indicators
Slide 21: Disclaimer – Forward Looking Statements
ANNEX DISCLAIMER – FORWARD LOOKING STATEMENTS This document has been prepared by Interpump Group S.p.A for not constitute an offer to sell or a solicitation to buy or subscribe to use during meetings with investors and financial analysts and is Company shares. Neither this document nor a portion the
Slide 22: 4Q-2023 Details / 1Q2024 Sales Details
ANNEX 4Q-2023 DETAILS ▪ DISCLAIMER ▪ 1Q2024 SALES DETAILS 21
Slide 23: Sales Details – Organic Evolution
ANNEX SALES DETAILS – ORGANIC EVOLUTION GROUP 2020-2024 ORGANIC GROWTH EVOLUTION by QUARTER 50% 39.4% 2020: -12.6% - 2021: +20.1% - 2022: +13.7% 40% 2023: +6.9% - 2024YTD: -9.2% 30% 17.9% 20% 15.7% 18.7% 14.2% 11.6% 14% 10% 12.5% 9.1% 12.6% 4% 0% -3.4% -10% -1.7% -11.2% -9.2% -16.2% -20% -30% -25.2%
Slide 24: 2024 Sales Details
ANNEX 4Q-2023 DETAILS ▪ DISCLAIMER ▪ 1Q2024 SALES DETAILS ▪ 2024 SALES DETAILS 23
Slide 25: Sales Details – Sales Breakdown – Group
ANNEX SALES DETAILS – SALES BREAKDOWN – GROUP (1) GROUP 2023 sales: € 2,240m PACIFIC AREA: 11% OTHERS: 1% EARTH MOVING MACHINE: 8% GENERIC DEALERS: 16% CONSTRUCTION: 8% REST of THE WORLD: 9% CLEANING : 5% AGRICOLTURE : 10% GENERIC CONTRACTORS: 3% EUROPE: 52% OTHER INDUSTRIAL SECTOR: 8% LIFT: 7% STEE
Slide 26: Sales Details – Sales Breakdown – Hydraulic
ANNEX SALES DETAILS – SALES BREAKDOWN – HYDRAULIC (1) HYDRAULICS 2023 sales: € 1,634m OTHERS: 1% PACIFIC AREA: 10% EARTH MOVING MACHINE: 11% GENERIC DEALERS: 18% REST of THE WORLD: 9% CONSTRUCTION: 8% OTHER INDUSTRIAL SECTOR: 9% AGRICOLTURE : 14% F&B: 1% ENERGY&UTILITIES: 1% MINING: 1% SHIPYARD-MARI
Slide 27: Sales Details – Sales Breakdown – Water Jetting
ANNEX SALES DETAILS – SALES BREAKDOWN – WATER JETTING (1) WATER JETTING 2023 sales: € 606m PACIFIC AREA: 13% OTHERS: 1% CONSTRUCTION: 8% GENERIC DEALERS: 11% ADAPTORS INDUSTRIAL VEHICLES: 4% AUTOMOTIVE: 4% REST of THE WORLD: 11% SHIPYARD-MARINE: 3% CLEANING: 17% OIL&GAS: 4% RAILWAY: 1% ENERGY&UTILIT
Slide 28: Declaration of Manager Preparing Financial Reports
The Manager in charge of preparing the company’s financial reports declares - pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance - that the accounting information contained in this presentation corresponds to the document results, books and accounting records. S.Ilario d’E