Innovatec Spa · MIL:INC
Innovatec Spa — Investor Day (February 2022)
34 slides from Innovatec Spa's investor day presentation, Feb 3, 2022
Slide 1: Towards a Cleaner Future, Together – Business Plan to 2024
TOWARDS A CLEANER FUTURE, TOGETHER BUSINESS PLAN TO 2024 INNOVATEC GROUP 3 February 2022
Slide 2: Today's Speakers
Raffaele Vanni Elio Catania Roberto Maggio Federico Malgarini Head of Investor Chairman CEO Head of Financial Relations Planning TODAY’S SPEAKERS 2
Slide 3: Business Plan to 2024
BUSINESS PLAN TO 2024 INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY 2022-2024 PLAN GOVERNANCE
Slide 4: Cleantech Industry
CLEANTECH INDUSTRY Any process, product or service that aims at reducing negative environmental impacts through: Environmental protection activities – recovery, recycling and disposal of materials Sustainable use of resources: water, air and the environment as a whole Significant improvements in ter
Slide 5: Focus on Energy Transition
FOCUS ON ENERGY TRANSITION LANDFILL WASTE DISPOSAL TARGET TARGETED EMISSIONS REDUCTION* RES INSTALLED CAPACITY Current Target New 2030 Target Target 2050 20% 116 GW -23% -55% Net zero emissions 10% 55 GW GtCO 2 20 2 0 2035 20 20 2030 RECYCLED WASTE ELECTRICITY GENERATION FROM RES 50% 60% 38% 70% 2 0
Slide 6: We Are in an Attractive Business
4 ACCESSIBLE MARKETS FOR INNOVATEC: SUPERBONUS 110% WE ARE IN AN ATTRACTIVE 1 Deduction for interventions dedicated to households’ insulation and energy saving €14 bn BUSINESS ENERGY TRANSITION Funding for innovative projects (“Progetti 2 Faro), promotion of innovative power plants, biomethane, Gree
Slide 7: Innovatec Group – Who We Are
INNOVATEC GROUP WHO WE ARE CLEANTECH INDUSTRY INTEGRATION ENVIRONMENT & CIRCULAR ECONOMY INNOVATION & CONSULTANCY SERVICES EE & RENEWABLES Collection Energy efficiency EPC TRADITIONAL Selection B2B PV plants ENVIRONMENTAL SERVICES Recovery of Materials Smart vertical technologies High level advisory
Slide 8: Our Strategy
OUR STRATEGY HOW WE MEAN TO PLAY A ROLE BE A LEADER IN THE CLEANTECH INDUSTRY TO REWRITE THE FUTURE FOR NEXT GENERATIONS A clear strategic path and a serious commitment in our 2022-2024 business plan: Strong Investment Plan to strengthen and deepen our Leveraging our unique footprint in circular Ass
Slide 9: 2022-24 BP at a Glance
(‘21-‘24) CAGR: 22% REVENUES (€M) 405 2022-24 BP AT A GLANCE 222 161 Cumulative CAPEX and Recruitments (2022-2024) 2020 PF * 2021 PF * 2024 M&A CAPEX + M&A * 2020 and 2021 Revenues and EBITDA 12 including COBAT financial results Investing in capex and in vertical 59M€ technologies via acquisitions a
Slide 10: A Key Enabler of Sustainability
SOCIETY SHAREHOLDERS EMPLOYEES 15% 33% Environment 69 A KEY ENABLER OF ESG Social Actions Governance SUSTAINABILITY 52% SUPPLIERS CUSTOMERS ESG – AT THE CORE OF INNOVATEC’S PURPOSE REGULATORS AND PA SUSTAINABILITY IS AT THE HEART OF INNOVATEC BUSINESS AND FULLY INTEGRATED IN CORPORATE STRATEGY 10
Slide 11: Business Plan to 2024
BUSINESS PLAN TO 2024 INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY 2022-2024 PLAN GOVERNANCE
Slide 12: Guidelines for Execution
GUIDELINES FOR EXECUTION Focus on value creation and medium-term return CIRCULAR ECONOMY INNOVATION EE & RENEWABLES Strengthen our asset base Invest in breakthrough technologies Become a leader in our sector Broaden our service proposal Promote technology transfer Facilitate energy trans
Slide 13: Roadmap to 2024 Leadership
ROADMAP TO 2024 LEADERSHIP MAIN DRIVERS INNOVATION & ENVIRONMENT & CIRCULAR ECONOMY CONSULTANCY SERVICES EE & RENEWABLES Enhance traditional treatment facilities HouseVerde (HV) Market share increase STRENGTHEN BECOME A OUR ASSET Expand our customer base LEADER IN Integrate HV social housing
Slide 14: Our Asset Base
A vertically integrated structure, with a presence at every step of the cycle, which ensures cost efficiency and flexibility, underpinned by complementary customer service Area of Operations Sorting & treatment plants (North Italy) Italy 5 OUR ASSET BASE Bio-gas Plants 5 Unmatched presence in Lombar
Slide 15: Main Achievements
MAIN ACHIEVEMENTS End Jan 22 Price per share: €2.15 PERFORMANCE Dec-13 FY-21 2022: 15% IPO AIM Italia Cobat Acquisition 1y: 175% Market Cap: €17.6 M Market Cap: €180.0 M 3y: 1.617% 156 MV 50 km 24 GREENHOUSES ARCADE PROJECT ‘14 Rev: €21.0 M ‘21PF Rev: €220.4 M 5y: 691% COGENERATION DISTRICT HEATING
Slide 16: Business Structure Overview
BUSINESS STRUCTURE OVERVIEW A vertically integrated structure, with a presence at every step of the cycle, which ensures cost efficiency and flexibility, underpinned by complementary customer service WASTE SERVICE CLIENTS ACTIVITIES CIRCULAR ECONOMY SERVICES COLLECTION / SORTING & DISPOSAL RECYCLE /
Slide 17: HouseVerde
Innovatec Power has already signed agreements with banks CLIENT GENERAL CONTRACTOR for credit assignment HOUSEVERDE END OF GO TO MARKET WORK AND DISCOUNT INVOICE QUOTE / CONTRACT EXECUTION CERTIFICATIONS, Zero-cost EE building/house renovations or AND DOCUMENTS securing with anti-seismic renovatio
Slide 18: Go to Market – B2B
Milan Trieste GO TO MARKET – B2B Commercial and “AS IS” ANALYSIS technical sites Energy consumption analysis of companies Rome that use energy fossil fuels and coal 2021 NORTH CENTER SOUTH ITALY ENERGY EFFICIENCY COMMERCIAL TEAM 8 4 4 16 Design, installation and management PARTNERS 30 28 103 161 Pal
Slide 19: Business Plan to 2024
BUSINESS PLAN TO 2024 INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY 2022-2024 PLAN GOVERNANCE
Slide 20: Main Growth Drivers
(‘21-‘24) CAGR: 22% EBITDA & EBIT (€M) (‘21-‘24) CAGR: 58% MAIN GROWTH DRIVERS • 2020 and 2021 Revenues, EBITDA and EBIT include COBAT financial results 14% 55.3 14% 11% 9% 38.3 Cumulative CAPEX and Recruitments (2022-2024) 30.4 4% M&A CAPEX + M&A 18.1 5% 12 9.6 Investing in capex and in vertical 7.
Slide 21: Increased Value for Shareholders
INCREASED VALUE FOR SHAREHOLDERS 38% 29% ROE ROE ROI 38% ROI 29% 24% The Plan envisages an increasing return for shareholders and on 15% 14% capital invested 12% 2020 PF 2021 PF 2024 2020 PF 2021 PF 2024 STRONG INCREASE OF ROE AND ROI OVER THE PLAN ROE & ROI 21
Slide 22: Positive Cash Generation
POSITIVE CASH GENERATION +€14.7M . STRONG FREE CASH FLOW TO EQUITY Net consolidated cash generated during the . plan, while repaying . €19M financial debt and . after €59M Capex and . M&A . . . . STRONG CASH GENERATION OVER THE PLAN CASH FLOW 22
Slide 23: Double-Digit Growth Targets – Revenues
DOUBLE-DIGIT GROWTH TARGETS INCREASED CONTRIBUTION FROM EE AND ADVANCED TREATMENT ACTIVITIES REVENUES 450 7.6 405.1 400 39.9 12.0 CAGR 22% 80.5 • 14% organic CAGR in collection business through 350 corporate client acquisition • Expansion in lithium batteries and PV modules 300 +42.3 204.1 11.2 15.0
Slide 24: Double-Digit Growth Targets – EBITDA
DOUBLE-DIGIT GROWTH TARGETS BALANCED MARGINS EVOLUTION WITH BOTH BUSINESS AREAS CONTRIBUTING EQUALLY TO EBITDA GROWTH EBITDA 60 3.6 1.4 0.5 55.3 CAGR 22% 7.7 50 • 10% target EBITDA Margin for collection business by the end of the plan through critical mass increase 2.5 2.4 and lead client acquisitio
Slide 25: Increasing Operating Margins
INCREASING OPERATING MARGINS EBITDA 13.7% EBIT 4.3% EBITDA 13.7% EBIT 9.5% 22% EBITDA CAGR 40,0 60,0 EE ENVIR. & CIRCULAR 55.3 58% EBIT CAGR ECONOMY BUSINESS 50,0 30.4 EBITDA margin is flat at 30,0 38.3 14% all over the Plan 40,0 32.1 13.1 3.5 0.4 EBIT margin increases 20,0 20.5 30,0 15.
Slide 26: Two Levers for Group Growth
EE ENVIR. & CIRCULAR ECONOMY BUSINESS 54 TWO LEVERS FOR GROUP GROWTH 260 CAPEX & M&A Innovative facilities dedicated to material 55% 206 Landfills recovery from mattresses and drywall 2021 CAPEX ESG 22M€ 10M€ Maintenance CAGR: 14% 32M€ 47M€ CAPEX Revamping & Innovation 59M€ 117 12M€ M&A of existing
Slide 27: Net Financial Position Evolution
NET FINANCIAL POSITION EVOLUTION POSITIVE (NET CASH) FOR €30.9M 2024 YE STRONG CASH 2021 2024 GENERATION 50,0 39.7 ALLOWING FOR 40,0 • €40M Cash on hand 30,0 24.9 30.9 at the end of 2024 20,0 • €19M Overall Financial 10,0 Debt reduction 2.9 2.6 - - (3.5) (10,0) (5.7) (5.7) (7.5) (10.0) (20,0) (13.8)
Slide 28: Business Plan to 2024
BUSINESS PLAN TO 2024 INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY PLAN 2022-2024 GOVERNANCE
Slide 29: The Way We Work
THE WAY WE WORK 3 STRATEGIC PILLARS INNOVATION DIGITAL PROFICIENCY SUSTAINABILITY A NEW BUSINESS ATTITUDE Integration of the Group’s different Result oriented attitude guided by Responsiveness in order to react natures in order to provide a 360° management by objectives swiftly to change in law and
Slide 30: New Governance and Organization
NEW GOVERNANCE AND ORGANIZATION DECENTRALIZATION COMPETENCES • Shortening decision-making chain • Accelerated development paths for critical roles • New Responsibilities transferred to the Business Units • Key competences mapping (digital, leadership, etc ..) (i.e Business Development, Operational E
Slide 31: Innovatec Stock & IR Commitments
BUSINESS PLAN TO 2024 INNOVATEC GROUP INNOVATEC STOCK & IR COMMITMENTS
Slide 32: Innovatec Stock
STOCK DATA – INNOVATEC SPA SHAREHOLDERS DATA Listing Market Euronext Growth Milan n. Ord. Shares (M) 95.4 INNOVATEC STOCK ISIN IT0005412298 Floating 55% BIT INC Price per Share (27 Jan 22) 2.145 Major Shareholder 45% (Colucci Family) Mobile average 50 days p.p.s. 1.7673 MKT Cap (€M) (@ 52 weeks perf
Slide 33: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT, NOR SHALL BE CONSTRUED AS, AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY TO BE USED AT AN INVESTOR PRESENTATION AND IS PROVIDED FOR INFORMATION PURPOSES ONLY. THIS DOCUMENT DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS
Slide 34: Innovatec Group – Embrace Innovation
INNOVATEC GROUP EMBRACE INNOVATION Via Giovanni Bensi, 12/5 Head of Investor Relations: Raffaele Vanni 20152 Milano ITALY Tel. +39 3351261702 Tel +39 02 41 30 51 Email: raffaele.vanni@innovatec.it fax +39 02 41 27 27 33 PEC: innovatecpower@legalmail.it