Interpump Group S.p.a. · MIL:IP
Interpump — Q3 2024 Earnings Presentation
39 slides from Interpump's earnings presentation, Nov 14, 2024
Slide 1: Interpump Group 3Q2024 Financial Results
INTERPUMP GROUP 3Q2024 Financial Results - 14th November 2024
Slide 2: Index
INDEX ▪• KEY KEY HIGHLIGHTS HIGHLIGHTS ▪ 3Q2024 FINANCIAL RESULTS • 4Q-2023 PRELIMINARY FINANCIAL RESULTS ▪ ESG PATH • GROUP SUSTAINABILITY PATH ▪ OUTLOOK • OUTLOOK ▪ ANNEX • ANNEX 1
Slide 3: Key Highlights
3Q2024 ▪ KEY HIGHLIGHTS 2
Slide 4: FCF Record Level
3Q2024 FCF RECORD LEVEL ▪ Delivering margin protection and cash improvement 2024 SALES & EBITDA EVOLUTION (1) % change compared to previous reporting period ‒ Delivering margin protection 1Q2024 2Q2024 3Q2024 • Consistent profitability protection 0% compared to a consistent sales decrease -2% -4% ‒
Slide 5: 3Q2024 Financial Results
3Q2024 DELIVERING MARGIN PROTECTION & CASH IMPROVEMENT ▪ KEY HIGHLIGHTS ▪ 3Q2024 FINANCIAL RESULTS 4
Slide 6: Group – A Record FCF Generation
3Q2024 GROUP – A RECORD FCF GENERATION ▪ 3Q2024 – Sales: enduring Hydraulic normalisation mitigated by Water Jetting increasing strength and acquisitions – Profitability: consistent protection capability – NFP: reduction driven by a record FCF generation Million € 3QUARTER 3QUARTER YTD 2023 2024 202
Slide 7: Divisions – Reacting to the Worst and to the Best
3Q2024 DIVISIONS – REACTING TO THE WORST AND TO THE BEST ▪ Hydraulics – Sales: a combination between stagnation and normalisation – EBITDA: ongoing margin protection ▪ Water-Jetting – Sales: growth driven by organic evolution – EBITDA: acquisitions impact almost completely absorbed Million € 3QUARTE
Slide 8: Sales – Normalisation and Acceleration
3Q2024 SALES – NORMALISATION AND ACCELERATION ▪ 3Q2024: different trends emphasis 3Q2024 GROUP SALES EVOLUTION – Hydraulics: normalisation widespread to almost all-important activities -8.0% 700 – Water Jetting: organic consistent accelleration 650 during the year 600 € 5 6m -9.4% 550 +1.8% -0.4% €
Slide 9: Sales – Normalisation and Acceleration (YTD)
3Q2024 SALES – NORMALISATION AND ACCELERATION 3Q2024YTD GROUP SALES EVOLUTION -7.7% 2 000 1 00 € 1.7 m -9.4% +1.9% -0.2% € 1.589m 1 600 1 400 1 200 1 000 00 600 400 M 3Q2024YTD HYDRAULICS SALES EVOLUTION 3Q2024YTD WATER JETTING SALES EVOLUTION -14.0% +10.1% 1 500 1 400 € 1. 69m -14.0% 700 1 300 1 20
Slide 10: NFP – FCF Record Level
3Q2024 NFP – FCF RECORD LEVEL ▪ January: US$300m Private Shelf agreement NFP EVOLUTION (1) (€ m) ‒ € 100m single tranche issued 600 • 8 years average duration and 4.17% coupon 550 € 86m € 157m 500 ▪ September: NFP of € 441m compared to € 4 6m 450 € m € m € 8m € 1m € 1m as of December 2023(2) €8 m 40
Slide 11: NFP – CAPEX – Last Important Project
3Q2024 NFP – CAPEX – LAST IMPORTANT PROJECT ▪ New Interpump Hydraulics headquarter – 62,000 sq. metres, a total area increase of around 30% – Best environmental standards ▪ Next steps – December: new machines arrival – From January 2025: gradual transfer of all activities starting from shipping depa
Slide 12: NFP – Acquisitions – Perfect Fit with Group Strategy
3Q2024 NFP – ACQUISITIONS – PERFECT FIT WITH GROUP STRATEGY ▪ Acquisitions with a perfect fit with Group growth 2024 INTERPUMP GROUP ACQUISITIONS (1) (2) and diversification strategy in 1H2024 FINANCIAL DATA IMPLIED ACQUIRED COMPANIES EBITDA Sales EV/EBITDA – Strengthening Group’s global network Mar
Slide 13: NFP – Acquisitions – Hidrover
3Q2024 NFP – ACQUISITIONS – PERFECT FIT WITH GROUP STRATEGY ▪ Hidrover – A product in total synergy with the Group's portfolio • Hydraulic cylinders: “double action” and “special” cylinders – A motivated and competent management team • 2024: effective margin protection in a sales normalisation trend
Slide 14: ESG Path
3Q2024 ▪ KEY HIGHLIGHTS ▪ 3Q2024 FINANCIAL RESULTS ▪ ESG PATH 13
Slide 15: Concreteness
3Q2024 CONCRETENESS “A falling tree makes more noise than a growing forest” Lao Tzu 14
Slide 16: A Delivering Group
3Q2024 A DELIVERING GROUP SUPPORTED GRI 2023-2025 KEY TARGETS and SDG ▪ fini ion of o p“ on n li ” 2023 E ▪ Reduction of Group “Carbon intensity” 2025 ▪ Increase of renewed electricity consumption 2025 305-1 and 2 302-1 ▪ Injury rate improvement 2024 S ▪ ESG supply chain evaluation 2023 & 2024 403-9
Slide 17: 2023-25 ESG Journey – A Delivering Group
3Q2024 2023-25 ESG JOURNEY – A DELIVERING GROUP ▪ 2024 actions: G.4. action approved by Group board (1) 2023-2025 ESG JOURNEY – Other 2024 actions in the finalisation phase 2024 ACTIONS • E.7: the analysis of the EU Regulation 2024/1781 E.7 Product ECO-Design confirmed the quality of the preparatory
Slide 18: 2024 Actions – G.4 Tax Compliance Consolidation
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1) ▪ Through action G. 4 of 2023-25 ESG Journey - Tax Control Framework (“TCF”) adoption – Group aims to – Integrate the fiscal strategy inside the Group strategy definition and execution – Take an important step toward fiscal transparency • Ita
Slide 19: 2024 Actions – G.4 Tax Compliance Consolidation
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1) EXTERNAL REGULATORY FRAMEWORK GROUP CODE of ETHICS 2013 & 2016 OCSE Guidelines (2) - D. Lgs. 128/2015 (3) TAX CONTROL FRAMEWORK TAX STRATEGY Goals – Principles – Guidelines - Application TAX COMPLIANCE MODEL (1) See please “Tax Compliance Con
Slide 20: 2024 Actions – G.4 Tax Compliance Consolidation
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1-2) TAX CONTROL FRAMEWORK Detect, measure, manage and control the tax risk 4 GOALS Tax regulations application Sustainable development Tax and reputational risk Tax culture spread consistency and reliability and Group asset integrity minimizati
Slide 21: 2024 Actions – G.4 Tax Compliance Consolidation
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1-2) 2025 2026-27 ▪ Interpump Group S.p.A TCF model and controls testing ▪ Interpump Group S.p.A. TCF model finetuning – “Test of design” and “test of effectiveness” – Annual ongoing activity ▪ Evaluation of possible extension to other Group Ita
Slide 22: 2024 Actions – G.4 Tax Compliance Consolidation
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1-2) 2028 ▪ Interpump Group S.p.A. TCF model finetuning – Annual ongoing activity ▪ Other Group Italian entities TCF model finetuning – Annual ongoing activity Pending release of implementation guidelines by Italian Tax Authorities ▪ Interpump G
Slide 23: 2025 Actions – S.4 Global Mobility Program
3Q2024 2025 ACTIONS – S.4 GLOBAL MOBILITY PROGRAM (1) GLOBAL MOBILITY PROGRAM 4 GOALS Group strategy Group 2023-25 ESG Journey Professional growth Value creation implementation alignment fast track Mobility is key tool for driving Mobility is a key lever Mobility promotes Mobility accelerates profes
Slide 24: A Delivering Group
3Q2024 A DELIVERING GROUP ANALYSIS AND MEASUREMENT BUILDING GROUP LEADING TO ESG FOUNDATIONS 2030 AND 2050 DECARBONISATION TARGETS 2022 2023 2024 2025 2027 ▪ E.1 - Carbon neutrality strategy ▪ E.2 - Carbon intensity reduction ▪ E.4 - Circular economy (phase 1) ▪ E.3 - Increase of renewable energy co
Slide 25: Outlook
2024 ▪ KEY HIGHLIGHTS ▪ 3Q2024 FINANCIAL RESULTS ▪ ESG PATH ▪ OUTLOOK 24
Slide 26: Still Normalisation, Still Acceleration
2024 STILL NORMALISATION, STILL ACCELLERATION ▪ Most recent trends underline (1) – Hydraulics: normalisation trend confirmed – Water Jetting: acceleration trend confirmed ▪ 2024 financial expectations updating – Sales: high single digit organic decrease • Impact of all 2024 perimeters changes: aroun
Slide 27: Margin Protection & FCF Exploitation Track Record
2024 MARGIN PROTECTION & FCF EXPLOITATION TRACK RECORD 2009, 2020 and 3Q2024YTD SALES, EBITDA & FCF EVOLUTION (1-2) % change compared to previous reporting period 200% 185.3% 150% 100% 63.2% 55.7% 50% 2009 2020 3Q2024YTD 0% -12.6%-13.6% -9.4% -12.8% -50% -29.7% -48.4% Sales EBITDA FCF 2 GROUP 2019-2
Slide 28: Annex
ANNEX ▪• KEY HIGHLIGHTS DISCLAIMER • 4Q-2023 DETAILS ▪ 3Q2024 FINANCIAL RESULTS • 2023 ESG ACTIONS ▪ OUTLOOK ▪ ANNEX 27
Slide 29: Annex – Disclaimer
ANNEX ▪ DISCLAIMER 28
Slide 30: Annex – Alternative Performance Measures
ANNEX M − M 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 can also assist the directors
Slide 31: Annex – Additional Term Definitions
ANNEX M − M The Group uses some additional terms too, below the related definitions: ▪ Organic variation: variation at constant perimeter and FX ▪ Trade Working Capital: NWC with “Trade Payable” net of CAPEX Trade Payable ▪ Buy-back: purchase of treasury shares less Proceeds from the sale of treasur
Slide 32: Annex 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 33: Annex 2Q2024 and 2023 Details
ANNEX 2Q2024 and 2023 DETAILS ▪ DISCLAIMER ▪ 3Q2024 SALES DETAILS 32
Slide 34: Sales Details – Organic Evolution on Quarterly Basis
ANNEX SALES DETAILS – ORGANIC EVOLUTION ON QUARTELY BASIS GROUP 2020-2024 ORGANIC GROWTH 50% EVOLUTION by QUARTER 39.4% 40% 2020: -12.6% - 2021: +20.1% - 2022: +13.7% - 2023: +6.9% - 2024YTD: -9.4% 30% 17.9% 18.7% 20% 15.7% 14.2% 10% 11.6% 14% 9.1% 12.6% 12.5% 4% 0% -3.4% -10% -1.7% -11.2% -9.2% -16
Slide 35: Annex Acquisition Details
ANNEX ACQUISITION DETAILS 2024 INTERPUMP GROUP ACQUISITIONS FINANCIAL DATA (1) IMPLIED Consolidated since ACQUIRED COMPANIES EBITDA Additional Total EV/EBITDA Where Sales Margin Information consideration PP CHINA April 2024 9 April YRP FLOW TECNOLOGY € 10m 10% - € 2. m 2.9x Water Jetting division Ch
Slide 36: Sales Breakdown – Group
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – GROUP GROUP l :€ , m 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% STEEL ALUMINIUM:
Slide 37: Sales Breakdown – Hydraulic
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – HYDRAULIC HYDRAULICS l : € 1,6 m 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-MARINE: 3% NO
Slide 38: Sales Breakdown – Water Jetting
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – WATER JETTING WATER JETTING l : € 6 6m 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&UTILITIES: 1%
Slide 39: Mauro Barani
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