Innovatec Spa · MIL:INC
Innovatec Spa — Investor Presentation (May 2022)
37 slides from Innovatec Spa's investor presentation, May 5, 2022
Slide 1: Towards a Cleaner Future, Together
TOWARDS A CLEANER FUTURE, TOGETHER COMPANY PRESENTATION INNOVATEC GROUP 05 May 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: Industry and Innovatec Overview
COMPANY PRESENTATION INNOVATEC GROUP ✓ INDUSTRY AND INNOVATEC OVERVIEW ▪ BUSINESS MODEL & STRATEGY ▪ 2022-2024 PLAN ▪ FY2021 RESULTS ▪ 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: EU Energy Transition Targets
EU ENERGY TRANSITION TARGETS 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 2020 2035 2020 2030 RECYCLED WASTE ELECTRICITY GENERATION FROM RES 50% 60% 38% 70% 2020
Slide 6: 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 7: We Are in an Attractive Business
EU INVESTMENTS European at least €1 trillion of sustainable Green Deal investments over the next 10 years ITALIAN GOVERNMENT INVESTMENTS IT Recovery €60 billion for the Italian Green Plan revolution and ecological transition 4 ACCESSIBLE MARKETS FOR INNOVATEC: SUPERBONUS 110% WE ARE IN AN ATTRACTIVE
Slide 8: 2022-2024 Growth Business Plan
2022-2024 GROWTH BUSINESS PLAN KEY DRIVERS A clear strategic path and a serious commitment in our 2022-2024 business plan: Strong Investment Plan to 1 €59M strengthen and deepen our footprint in circular economy Investing in human capital 2 to fuel the EE business +125 HR Leveraging our unique Asset
Slide 9: 2022-24 BP at a Glance
2022-24 BP AT A GLANCE (‘21-‘24) CAGR: 22% REVENUES (€M) 405 222 Cumulative CAPEX and Recruitments (2022-2024) 161 M&A CAPEX + M&A 12 Investing in capex and in vertical 59M€ technologies via acquisitions as 2020 PF * 2021 PF * 2024 * 2020 and 2021 Revenues and EBITDA Hard Capex well as in human reso
Slide 10: FY21 at a Glance
FY21 AT A GLANCE REVENUES (€M) 238 + 47% Fixed Assets and FTEs 161 74M€ + 30% 57M€ FY20 FY21 PF20 * PF21 * * PF figures include COBAT results Tangible Intangible Tangible Intangible 33 259 + 83% +51 people 208 54 25 18 En Efficiency 205 183 Env & Circ Economy FY20 FY21 * * EBITDA (€M) 10
Slide 11: A Key Enabler of Sustainability
70% 55% SUPPLIERS ESG SOCIETY CAPEX ESG SHAREHOLDERS EMPLOYEES 15% 33% 69 Environment A KEY ENABLER OF ESG Social Actions Governance SUSTAINABILITY 52% SUPPLIERS CUSTOMERS ESG – AT THE CORE OF INNOVATEC’S PURPOSE CARBON SUSTAINABILITY FOORPRINT REGULATORS AND PA ACADEMY SUSTAINABILITY IS AT THE HEAR
Slide 12: Business Model & Strategy
COMPANY PRESENTATION INNOVATEC GROUP ▪ INDUSTRY AND INNOVATEC OVERVIEW ✓ BUSINESS MODEL & STRATEGY ▪ 2022-2024 PLAN ▪ FY2021 RESULTS ▪ GOVERNANCE
Slide 13: Company Milestones
COMPANY MILESTONES 19 April 22 Price per share: €2.25 PERFORMANCE Dec-13 FY-21 2022 25% IPO AIM Italia Cobat Acquisition 1y 245% 3y 1842% Market Cap: € . M Market Cap: € . M 5y 750% 156 MV 50 km 24 GREENHOUSES ARCADE PROJECT ‘ 4 Rev: € . M ‘ PF Rev: € .4 M COGENERATION DISTRICT HEATING SUPPLIED WITH
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: 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 16: Environment & Circular Economy
ENVIRONMENT & CIRCULAR ECONOMY 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 RECYCL
Slide 17: EE – B2C
EE – B2C CLIENT GENERAL CONTRACTOR Innovatec Power has already signed agreements with banks for credit assignment END OF WORK AND ▪ Zero-cost EE building/house renovations or DISCOUNT INVOICE securing with anti-seismic renovations benefitting from the Italian incentives “Superbonus” QUOTE / CONTRACT
Slide 18: EE – B2B
EE – B2B Milan Trieste 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 Palermo techn
Slide 19: 2022-2024 Plan
COMPANY PRESENTATION INNOVATEC GROUP ▪ INDUSTRY AND INNOVATEC OVERVIEW ▪ BUSINESS MODEL & STRATEGY ✓ 2022-2024 PLAN ▪ FY2021 RESULTS ▪ GOVERNANCE
Slide 20: Main Growth Drivers
CAGR: 22% REVENUES (€M) ‘21-’24 405 MAIN GROWTH DRIVERS 161 222 Cumulative CAPEX and Recruitments (2022-2024) 2020 PF* 2021 PF * 2024 M&A CAPEX + M&A • 2020 and 2021 Revenues, EBITDA and EBIT (‘21-‘24) CAGR: 22% 12 include COBAT financial results Investing in capex and in vertical (‘21-‘24) CAGR: 58
Slide 21: Increased Value for Shareholders
ROE & ROI 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 21
Slide 22: Double-Digit Growth Targets: Revenues
REVENUES DOUBLE-DIGIT GROWTH TARGETS INCREASED CONTRIBUTION FROM EE AND ADVANCED TREATMENT ACTIVITIES 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 23: Double-Digit Growth Targets: EBITDA
EBITDA DOUBLE-DIGIT GROWTH TARGETS BALANCED MARGINS EVOLUTION WITH BOTH BUSINESS AREAS CONTRIBUTING EQUALLY TO EBITDA GROWTH 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 24: Increasing Operating Margins
MARGINS INCREASING OPERATING MARGINS EBITDA → 13.7% EBIT → 4.3% EBITDA → 13.7% EBIT → 9.5% 2021 2024 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
Slide 25: Investments for Growth
EE ENVIR. & CIRCULAR ECONOMY BUSINESS 54 INVESTMENTS FOR 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 Plant
Slide 26: Positive Cash Generation
CASH FLOW POSITIVE CASH GENERATION +€14.7M STRONG FREE CASH FLOW TO EQUITY . 60% CASH ON HAND INCREASE TO €40M IN 2024 YE . . . Net consolidated cash . generated during the plan, while repaying . . € M financial debt and . after € M Capex and . M&A STRONG CASH GENERATION OVER THE PLAN 26
Slide 27: FY2021 Results
COMPANY PRESENTATION INNOVATEC GROUP ▪ INDUSTRY AND INNOVATEC OVERVIEW ▪ BUSINESS MODEL & STRATEGY ▪ 2022-2024 PLAN ✓ FY2021 RESULTS ▪ GOVERNANCE
Slide 28: FY21 at a Glance
FY21 AT A GLANCE REVENUES (€M) 238 + 47% 161 Fixed Assets and FTEs FY21 business operations confirmed our ability to execute our 145 growth strategy thanks to speed, cost efficiencies and timely + 70% 85 M&As Energy Efficiency has demonstrated the ability of + 30% 74M€ profiting from national legisl
Slide 29: FY21 Cumulated Cash Flow
CASH FLOW FY21 CUMULATED CASH FLOW (€27.1M) Capex + M&A +€9.9M FCF Solid cash from Operations During FY21 Innovatec generated €27.4M cash from operations, both BU contributing to the result A clear growth path The group invested its cash in environmental Capex (€7.3M) and in expansive M&As (Cobat, C
Slide 30: Governance
COMPANY PRESENTATION INNOVATEC GROUP ▪ INDUSTRY AND INNOVATEC OVERVIEW ▪ BUSINESS MODEL & STRATEGY ▪ PLAN 2022-2024 ▪ FY2021 RESULTS ✓ GOVERNANCE
Slide 31: 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 32: Innovatec Stock & IR Commitments
COMPANY PRESENTATION INNOVATEC GROUP INNOVATEC STOCK & IR COMMITMENTS
Slide 33: 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 (19 APr 22) 2.25 Major Shareholder 45% (Colucci Family) Mobile average 50 days p.p.s. 2.0733 MKT Cap (€M) (@ 52 weeks perfo
Slide 34: 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 35: 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
Slide 36: Annexes
ANNEXES INNOVATEC GROUP
Slide 37: M&A Strategy
M&A STRATEGY INNOVATEC ACQUISITION STRATEGY ▪ In its business plan, Innovatec is allocating over €12 Mln to M&A in the cleantech sector, of which €4 Mln to seeding innovation through startup acquisition via Innovatec Venture ▪ At least €8 Mln will be dedicated to acquire existing companies in border