Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — Non-Deal Roadshow (March 2023)
49 slides from Industrie De Nora Spa's roadshow presentation, March 2023
Slide 1: Energy Transition Becomes Reality - European Roadshow
ENERGY TRANSITION BECOMES REALITY European Roadshow 27-30 March 2023 © 2023 De Nora
Slide 2: 100 Years of De Nora
1 DE NORA 100 YEARS -OFe--eee Se eM IS TRY
Slide 3: About Us
ABOUT US The world's largest supplier of high- performing coatings and electrodes for industrial applications. A leading provider of disinfection, and filtration solutions for water and wastewater treatment. Italian multinational company listed on the Leader in emerging sustainable Euronext Milan st
Slide 4: About Us: Key Facts and Figures
ABOUT US AMS EMEIA A PA C 268 Patent families 6 4 683 25 647 282m 599 269m 4 301m Operating companies 100 32% Years of Innovation 33% 35% €852.8m 2022 Revenues 1.900+ People Electrode Energy Water Factories People Revenues Technology Transition Technology © 2023 De Nora
Slide 5: About Us
ABOUT US Global leading provider of mission- critical electrochemical solutions One century of breakthrough innovation driving long-term growth Key enabler for the green hydrogen technology global revolution © 2023 De Nora
Slide 6: Purpose, Vision & Mission
Purpose, vision & mission PURPOSE VISION MISSION Empower collaboration & Leverage available talents Agility & green champion resilience as catalyst for a technologies sustainable future for value creation © 2023 De Nora
Slide 7: Timeline
TIMELINE ¹ First Joint Venture with thyssenkrupp Uhde Chlorine Engineers (“tkUCE”) was set up in 2001, renamed tk nucera in 2022. ²Acquisition of Severn Trent Water Purification Technologies. ³Approximately 33% stake acquired from the De Nora family in April 2017. ⁴Approximately 35% stake acquired f
Slide 8: De Nora: Three Divisions One Soul
DE NORA:THREE DIVISIONS ONE SOUL 1 0 0 Ye a rs o f E l e c t r o c h e m i s t r y Electrode Energy Water Technologies Transition Technologies 56%1 5%1 39%1 PRODUCTS PRODUCTS PRODUCTS Anodes, Cathodes, Catalytic Coatings Electrochlorination, Disinfection and Electrodes for Alkaline Water Gas Diffusi
Slide 9: Diversified End Markets and Applications
D I V E R S I F I E D E N D M A R K E T S A N D A P P L I C AT I O N S Electrode Energy Water Technologies Transition Technologies Chlor-alkali Hydrogen production Swimming pools Electronics Hydrogen storage and transportation Municipal and Industrial water & wastewater treatment Electrowinning (Min
Slide 10: Competitive Positioning
COMPETITIVE POSITIONING Electrode Energy Water Technologies Transition Technologies Chlor-alkali, Copper Foil, PCB, Nickel & Cobalt Metal-coated Electrodes for Alkaline Water Pools and industrial electrochlorinator; within Electrowinning Electrolysis the top 5 in municipal filtration & disinfection
Slide 11: Services: Intimate customer relationships from joint R&D to aftermarket
SERVICES Intimate customer relationships from joint R&D to aftermarket STRONG FOCUS ON R&D LONG-LASTING CUSTOMER RELATIONSHIP Tailored solutions Long-standing relationships 100+ researchers lasting +25 years with all addressing customer needs large customers R&D in ~15% Product collaboration Long-st
Slide 12: Trends Supporting Our Growth
TRENDS SUPPORTING OUR GROWTH Un p reced ented o p p o rtu n ities i n E n ergy Tran s i ti on an d S tab l e G row th in Electrode and Water Businesses TRENDS DRIVERS OUR OFFERINGS Climate Change • Infrastructure Electrode > 300 Mton of Green H2 Technologies by 2050 • Energy Efficiency • Upgrades an
Slide 13: Trends Supporting Our Growth by Division
TRENDS SUPPORTING OUR GROWTH Electrode Energy Water Technologies Transition Technologies • Need for technologies upgrade • Unprecedent market opportunity • More stringent regulations and • Request of service of the huge • Exponential growth in AWE emerging contaminants installed base electrolyzer ca
Slide 14: De Nora's Assets to Win
DE NORA’S ASSETS TO WIN Unique Positioning in Growing Markets UNDISPUTED GLOBAL TECHNOLOGY CUTTING-EDGE PROPRIETARY LEADER ACROSS ALL BUSINESS TECHNOLOGIES Chlor-alkali, Metal coated Pools & industrial 268 Patent Families 5 R&D Centers 100+ Electronics, Nickel & Electrodes for electrochlorination; w
Slide 15: Sustainability at the Core of Our Business
S U S TA I N A B I L I T Y AT T H E C O R E O F O U R B U S I N E S S SUSTAINABILITY IS OUR BUSINESS MODEL Our offerings are aligned with the UN Sustainable Development Goals Delivery of energy savings for our customers Providing reliable, Green H2 sustainable, cost-effective solutions for water tre
Slide 16: Full-year 2022 Main Achievements & Results
Full-year 2022 Main Achievements & Results © 2023 De Nora
Slide 17: 2022 Delivering, Executing, and Evolving Our Business
2 0 2 2 D E L I V E R I N G , E X E C U T I N G , A N D E V O LV I N G O U R B U S I N E S S E n ergy Tran s i tion b eco mes Real i ty Record set of Results in €24.2 m dividend to be line with guidance, proposed for approval at positive Net Cash Position 1 7 the AGM in April Energy Transition Ramp-
Slide 18: Main Results
2 0 2 2 M A I N R E S U LT S Strong set of Results in line with Guidance STRONG ORGANIC INCREASED ALL-TIME HIGH GROWTH PROFITABILITY BACKLOG €852.8m €190.8m €789.6m Revenue Ebitda Adj €193 Energy Transition +38.5% vs 2021 +50.6% vs 2021 +44.0% vs 2021 +22.8% +180 bps 22.4% margin, +180 bps +22.8% HI
Slide 19: Energy Transition Division: The ramp-up has started
ENERGY TRANSITION DIVISION The ramp–up has started Main ongoing Projects under execution (Backlog at 31 Dec 2022 2.2 GW, Completion by 2025) NEOM, Saudi Arabia , Largest H2 Project Globally >2 GW H2 to Green Ammonia 2022 PERFORMANCES H2 Holland Project, Largest H2 Project in Europe 200 MW H2 to E-fu
Slide 20: Electrode and Water Technologies 2022 Highlights
E L E C T R O D E A N D WAT E R T E C H N O L O G I E S 2 0 2 2 H I G H L I G H T S Record Performances Riding the Wave of 2022 Markets Momentum ELECTRODE TECHNOLOGIES WAT E R T E C H N O LO G I E S • Confirmed our undisputed global Leadership Position • Confirmed leadership in Pools and competitive
Slide 21: FY 2022 Results: Solid Organic Growth
F Y 2 0 2 2 R E S U LT S Solid Organic Growth, record performances in all divisions KEY HIGHLIGHTS Revenues By Geography ELECTRODE TECHNOLOGIES 38.5% YoY Growth Growth was driven by: 4.5X AMS growth YoY 33.1% • Volumes mainly in Chlor-alkali and Electrowinning lines EMEIA 30.7% 31.6% • Price increas
Slide 22: FY 2022 Results: All-time-high Backlog
F Y 2 0 2 2 R E S U LT S All-time-high backlog, providing good visibility on revenue +44% YoY Growth KEY HIGHLIGHTS Backlog as % ~ 10m of next year 56% All-time high backlog at €789.6m, Revenue1 FY 2022 Backlog by +44% YoY Year of Deployment ELECTRODE TECHNOLOGIES Benefits from multi-year contracts,
Slide 23: Continuous Focus on Cost Control
F Y 2 0 2 2 R E S U LT S Continuous focus on cost control KEY HIGHLIGHTS COGS (€m)* SG&A Costs (€m)* Corporate Costs (€m)* COGS in FY 2022 have been in line with FY 2021 relative to sales, confirming De Nora’s ability in As % passing-through raw materials of 63.5% 63.8% 10.6% 9.3% 3.5% 3.1% price in
Slide 24: Premium Profitability with Increasing Margins
F Y 2 0 2 2 R E S U LT S Premium Profitability with Increasing Margins Adj. EBITDA (€m) Adj. EBIT (€m) KEY HIGHLIGHTS EBITDA Adj. Margin % ELECTRODE TECHNOLOGIES Total 20.6% 22.4% Surge in profitability driven by: Water Tech. 15.7% 19.5% EBIT Adj. Margin % • Revenue growth Electrode1 15.2% • Continu
Slide 25: Q4 Review
Q4 REVIEW Revenue Growth Normalization in Electrodes and Water Divisions, R amp - u p i n E n ergy Tran s i ti on KEY HIGHLIGHTS ELECTRODE TECHNOLOGIES €m Q4'21 Q3'22 Q4'22 Q4’22 vs Q4’21 • Revenue in line with Q3 (+5% REVENUES 209.8 206.2 236.2 12.6% YoY) • EBITDA margin decrease mainly ELECTRODE T
Slide 26: Net Working Capital Evolution
F Y 2 0 2 2 R E S U LT S Net Working Capital Evolution KEY HIGHLIGHTS NWC % Sales 41.3% 39.4% 32.9% NWC was €280m in FY 2022 with a lower incidence on revenue (32.9%) vs. 2021 (41.3%) mainly due to: • Improvement of the inventory ratio, led by a reduction of inventories in Q4, also driven by the Ene
Slide 27: Net Cash Financial Position
F Y 2 0 2 2 R E S U LT S Net Cash Financial Position KEY HIGHLIGHTS (€’m) Operating Cash Flow2 in 2022 was positive by ~€115m. IPO Capital Increase led to Cash Neutrality in 9M’22. 0 Q4 Solid Cash Flow from Operating Activities in Q4 led to a Positive Financial position as a result of: • Projects ex
Slide 28: 2023 Guidance
2023 GUIDANCE Consolidation in Electrodes and Water Divisions, further ramp -up in E n ergy Tran s i tion KEY HIGHLIGHTS Revenue increase is driven by Energy Transition. €900- 950m CONSOLIDATED REVENUES 2023E Electrode and Water Technologies, after exceptional 130-150 growth in 2021-2022, to consoli
Slide 29: 2022-2025 Strategy Update
2022-2025 Strategy update Electrochemistry, Water, Energy: our future for a cleaner World © 2023 De Nora
Slide 30: Electrochemistry, Water and Energy: Our Future for a Cleaner World
DE NORA E l e c t r o c h e m i s t r y, Wa t e r a n d E n e r g y : o u r f u t u r e fo r a c l e a n e r w o r l d GROWTH & MARKET POSITIONING • Deliver step-change organic growth driven by energy transition in partnership with the leading players • Evolve our Energy Transition portfolio, target
Slide 31: Energy Transition Strategy
E N E R G Y T R A N S I T I O N S T R AT E G Y At the core of green hydrogen supply chain «To be the key enabler for the green hydrogen revolution, thanks to a diversified portfolio of best-performing electrodes and the readiness of our production capacity.» TECHNOLOGY STRATEGIC BROAD PORTFOLIO MANU
Slide 32: Industrial Scale Green H2 Solutions
INDUSTRIAL SCALE GREEN H2 SOLUTIONS U n i q u e , E f f i c i e n t , R e a d y t o u s e Te c h n o l o g i e s … a n d o n g o i n g i n n o v a t i o n In The Market Under development Services ELECTRODES CELLS ELECTRODES SMALL SIZE OTHER R&D AFTERMARKET FOR AWE FOR AWE FOR FUEL ELECTROLYSERS INIT
Slide 33: Energy Transition Pipeline
ENERGY TRANSITION PIPELINE C o n t i n u o u s l y i n c r e a s i n g p i p e l i n e u p t o 4 4 G W, p r o v i d i n g v i s i b i l i t y f o r future growth BACKLOG ~2.2 GW ~193 m€ HOT DEALS 1 ~3.0 GW • ELECTRODES ~285 m€ • CELL MANUFACTURING ACTIVELY PURSUED • ELECTRODE PACKAGE ~8,0 GW ~760 m€
Slide 34: Expansion of Production Capacity
E X PA N S I O N P R O D U C T I O N C A PA C I T Y With a Best-in-Class capacity in place we focus on readiness and flexibility to market trends Ongoing investments in brown and green field projects AMS EMEIA ASIA • Increase of existing • Strengthen further • Synergic plan of plants’ capacity with
Slide 35: Electrode Technology Strategy
E L E C T R O D E T E C H N O L O G Y S T R AT E G Y Leveraging on our leadership «Continuously safeguard leadership position across products, industries, and geographies by leveraging strengths.» MAINTAIN EXPAND OPERATIONAL INVEST IN TECHNOLOGY LEADERSHIP POSITION SERVICES EXCELLENCE INNOVATION © 2
Slide 36: Water Technology Strategy
WAT E R T E C H N O L O G Y S T R AT E G Y Enhance value proposition «Positioning De Nora for profitable growth through value additions and efficiency enhancements.» MARKET PORTFOLIO OPERATIONAL FUTURE-READY PENETRATION ENHANCHEMENT EXCELLENCE ORGANIZATION © 2023 De Nora
Slide 37: New Financial Targets
2 0 2 5 N E W F I N A C I A L S TA R G E T S Improved profitability forecasts DATA DE NORA 2025 NEW TARGETS vs. PREVIOUS TARGETS REVENUES €1,350 - €1,500m €1,500 - €1,700m EBITDA €250 - €280m €230 - €270m MARGIN 18% - 20% 15% - 16% CAGR 2022 - 2025 CAGR 2021- 2025 CAGR 2021 - 2025 REVENUES Electrode
Slide 38: Energy Transition to Drive Further Future Growth
ENERGY TRANSITION TO DRIVE FURTHER FUTURE GROWTH Organic Sales (€m) 25E-30E • Growth expected to 23E-25E continue • Additional market • Confirmed Scale-up based on • Applications and clients strong backlog • Aftermarket services to • Continue to build up a pipeline 500 – 600 ramp-up • Change vs. the
Slide 39: Financial Targets
2 0 2 5 F I N A N C I A L S TA R G E T S ORGANIC SALES (€m) ADJ. EBITDA (€m) NEW TARGETS ORGANIC GROWTH NEW TARGET ADJ PREVIOUS CAGR 2022-2025 CAGR 2021-2025 EBITDA MARGIN TARGETS 1,350-1,500 18%-20% 15%-16% €500 - €600m €500-€600 m 900 - 950 16%-17% 10%+ 853 43 2%- 4% 9%-11% 16%-18% 16% - 20% In li
Slide 40: 2022 ESG KPIs & Performances
2022 ESG KPIs & PERFORMANCES Our Journey Continues… ONGOING PROJECTS 8GWh Solar Renewable Energy by 1.3 E -24% -25% 39% GWh 2025 in 12 sites Carbon Intensity Energy Intensity Waste Recycled Installed UN EN ISO 14001 (Scope 1 and 2) Photovoltaic Panels all plants certified by in German Factory 2025 D
Slide 41: Final Remarks
FINAL REMARKS • Record set of results in 2022, in line with guidance, driven by the leading position of the Group in all divisions and strong market momentum • Solid Financial Structure thanks to cash flow generation from operations • Ramp-Up of Energy Transition Division, with early-than-expected p
Slide 42: Additional Materials
Additional Materials © 2023 De Nora
Slide 43: Income Statements
I N C O M E S TAT E M E N T S (€m) FY 2021 FY 2022 Q1 2021 Q1 2022 Q2 2021 Q2 2022 Q3 2021 Q3 2022 Q4 2021 Q4 2022 Revenue 615.9 852.8 111.3 200.1 142.4 210.4 152.4 206.2 209.8 236.2 YoY Growth (%) Change in inventory of finished goods and work in progress 35.3 34.8 11.5 6.8 4.0 7.7 25.4 23.4 (5.5)
Slide 44: Quarterly Revenue and Adj. EBITDA by Division
Q U A R T E R LY R E V E N U E A N D A D J . E B I T D A B Y D I V I S I O N €m Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Electrode Technologies 115.7 109.4 118.5 123.5 122.0 YoY variation 72% 46% 40% 5.4% Water Technologies 89.0 86.2 89.5 75.4 85.6 Revenue YoY variation 85% 51% 20% -3.8% Energy Trans
Slide 45: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) 2021 YTD 2022 YTD Sales 615.9 852.8 EBITDA 121.2 165.2 Margin (%) 19.7% 19.4% Costs relative DND fire 1.2 - Terminations costs (labor + legal expenses) 0.5 0.5 Costs relative to IPO process 1.2 3.6 Costs relative to M&A, integration, and c
Slide 46: Balance Sheet
BALANCE SHEET (€m) FY 2021 FY 2022 Intangible assets 132.8 131.6 Property, plant and equipment 167.6 184.2 Equity-accounted investees 121.8 122.7 Fixed asset 422.2 438.4 Inventories 233.0 295.5 Contract work in progress, net of advances from customers 12.4 16.4 Trade receivables 140.0 123.4 Trade pa
Slide 47: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) FY 2022 FY 2021 EBITDA 165,176 121,206 Losses on the sale of property, plant and equipment and intangible assets 330 1,803 Other non-monetary items 10,672 (3,456) Cash flows generated by operating activities before changes in net working capital 176,177 119,553 C
Slide 48: 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 49: © 2023 De Nora
© 2023 De Nora