Interpump Group S.p.a. · MIL:IP
Interpump — Q4 2024 Earnings Presentation
49 slides from Interpump's earnings presentation, Feb 14, 2025
Slide 1: Interpump Group 4Q-2024 Preliminary Financial Results
INTERPUMP GROUP 4Q-2024 PRELIMINARY FINANCIAL RESULTS 14th February 2025
Slide 2: Index
INDEX ▪• KEY KEY HIGHLIGHTS HIGHLIGHTS ▪ 4Q-2024 PRELIMINARY FINANCIAL RESULTS • 4Q-2023 PRELIMINARY FINANCIAL RESULTS ▪ GROUP SUSTAINABILITY PATH • GROUP SUSTAINABILITY PATH ▪ OUTLOOK • OUTLOOK ▪ ANNEX • ANNEX For Group accounting definitions see please slides 28-29 of the Annex part 1
Slide 3: 4Q-2024 Results: Key Highlights
4Q-2024 RESULTS ▪ KEY HIGHLIGHTS 2
Slide 4: A Delivering Group – Top Level Cash Generation
4Q-2024 RESULTS A DELIVERING GROUP – TOP LEVEL CASH GENERATION ▪ Margin protection and cash improvement delivered 2009-2020-2024 SALES & EBITDA EVOLUTION (2) % change compared to previous reporting period in the 2nd worst year of Group history in terms of sales (1) 2009 2020 2024 ‒ Margin protection
Slide 5: A Delivering Group – Profitability Resilience
3Q-3Q2023YTD 4Q-2024 RESULTS A DELIVERING GROUP – PROFITABILITY RESILIENCE ▪ 2024 EBITDA: profitability resilience confirmed ▪ Capability to match extraordinary market swings and acquisitions dilution impact – Complementary nature of two divisions – Increased diversification by division, geography,
Slide 6: A Delivering Group – Top Level Cash Generation
3Q-3Q2023YTD 4Q-2024 RESULTS A DELIVERING GROUP – TOP LEVEL CASH GENERATION ▪ 2024 FCF: top level cash generation GROUP 1996-2024 FCF EVOLUTION (€ million) 2024: post COVID normalisation ▪ Slightly better than 2020 despite worst addends Sales: -7.2% and EBITDA: -14.9% EBITDA margin: from 24% to a 22
Slide 7: A Delivering Group: 2023-25 Commitments
3Q-3Q2023YTD 4Q-2024 RESULTS A DELIVERING GROUP ▪ 2023-25 commitments, 1 target with 2 guidelines (1) 2023-25 GROUP EXPECTED SALES EVOLUTION (1) 3,500 2022-2025 sales growth: +25% ▪ One target: sales 3,000 – around 25% of total growth(2) 2,500 2,000 ▪ Two guidelines: profitability and leverage 1,500
Slide 8: 4Q-2024 Preliminary Financial Results
3Q-3Q2023YTD 4Q-2024 RESULTS ▪ KEY HIGHLIGHTS ▪ 4Q-2024 PRELIMINARY FINANCIAL RESULTS 7
Slide 9: Group – Normalisation Stronger Than Expected
3Q-3Q2023YTD 4Q-2024 RESULTS GROUP – NORMALISATION STRONGER THAN EXPECTED ▪ 2024 – Sales: normalisation in Hydraulics much heavier than expected – Profitability: diversification, business model flexibility and integration capability allowed to minimise negative flow through – NFP: execution of FCF c
Slide 10: Divisions – Completely Different Evolution
3Q-3QYTD2023 4Q-2024 RESULTS DIVISIONS – COMPLETELY DIFFERENT EVOLUTION ▪ Hydraulics – Sales: normalisation much heavier than expected – Profitability: margin protection effective for the most part of the year ▪ Water-Jetting – Sales: post COVID recovery going on – Profitability: improved capability
Slide 11: Sales – Normalisation versus Growth
3Q-3Q2023YTD 4Q-2024 RESULTS SALES – NORMALISATION VERSUS GROWTH ▪ 4Q2024: normalisation still affecting Hydraulics − Hydraulics: “Earth moving machine” and “Construction” are still stagnating at the bottom, while “Agri” and “Lift” decrease halved − Water Jetting: “revenues for projects” and “proces
Slide 12: Sales – Normalisation versus Growth by Division
3Q-3Q2023YTD 4Q-2024 RESULTS SALES – NORMALISATION VERSUS GROWTH 4Q2024 SALES EVOLUTION 2024 SALES EVOLUTION 500 -13.5% -13.9% 1,900 450 € 1.634m -14.0% +0.3% 1,700 -0.1% HYDRAULICS 400 € 366m -14.1% € 1.407m 1,500 350 0% 1,300 +0.7% € 317m 300 1,100 900 250 700 200 500 2023 ORGANIC PERIMETERS FX 20
Slide 13: EBITDA – Minimising Normalisation
3Q-3QYTD2023 4Q-2024 RESULTS 26.0% EBITDA – MINIMISING NORMALISATION 25.5% 2024 EBITDA EVOLUTION (1-2) 25.0% (% on Net Sales) 24.5% 24.0% 24.0% 23.6% 23.5% 23.0% 22.5% 22.1% 22.0% 22.0% 21.5% 21.0% 2023 2023 2023 Purchase Labour Other 2024 Perimeters 2024 one-off excl. one-off operating constant cha
Slide 14: NFP – Top Level Cash Generation
3Q-3Q2023YTD 4Q-2024 RESULTS NFP – TOP LEVEL CASH GENERATION ▪ NFP equal to € 409m compared to € 486m NFP EVOLUTION (1) (€ m) of December 2023(1) 600 € 486m € 205m ▪ Cash generation at top level: FCF up by almost 40%, 500 € 35m € 10m € 10m €1 € 409m to € 205m 400 € 92m – TWC (2) : € 60m of cash gene
Slide 15: NFP – TWC – Normalisation Slowed Down
3Q-3Q2023YTD 4Q-2024 RESULTS NFP – TWC – NORMALISATION SLOWED DOWN ▪ Normalisation process slowed down by sales drop – Trade receivable and payable evolution consistent with sales evolution – Inventory lower adjustment • More difficult to promptly and consistently follow sales evolution ▪ Commitment
Slide 16: NFP – CAPEX – Delivering Normalisation
3Q-3Q2023YTD 4Q-2024 RESULTS NFP – CAPEX – DELIVERING NORMALISATION 2019-2024 CAPEX EVOLUTION ▪ CAPEX(1) normalisation process ongoing: (% on total CAPEX) down by around 20%, from € 165m to € 128m 200 10% 7.3% 6.7% 6.2% ▪ Different evolution, different CAPEX approach 5.4% 6.1% – Hydraulics down acco
Slide 17: New Interpump Hydraulics Headquarter
3Q-3Q2023YTD 4Q-2024 RESULTS NFP – CAPEX – DELIVERING NORMALISATION ▪ New Interpump Hydraulics headquarter – 62,000 sq. metres, a total area increase of around 30% – Best environmental standards ▪ Relocation started at 2024 end – New machine delivered, shipping and PTOs assembly departments already
Slide 18: New Inoxpa India Headquarter
3Q-3Q2023YTD 4Q-2024 RESULTS NFP – CAPEX – DELIVERING NORMALISATION ▪ New Inoxpa India headquarter – A total area of 32,000 sq. metres, of which 17,500 for the factory and 4,500 for office space – Investment main targets • Increase of production capacity • Operations centralization • Alignment of wo
Slide 19: NFP – Acquisitions – Perfect Fit with Group Strategy
3Q-3Q2023YTD 4Q-2024 RESULTS NFP – ACQUISITIONS – PERFECT FIT WITH GROUP STRATEGY ▪ Acquisitions with a perfect fit with Group growth and diversification strategy – Strengthening Group’s global network • PP China & YRP, “Flow Processing” in China: entry into the plant engineering market and expansio
Slide 20: Group Sustainability Path
3Q2023YTD 4Q-2024 RESULTS GROUP SUSTAINABILITY PATH ▪ KEY HIGHLIGHTS ▪ 4Q-2024 PRELIMINARY FINANCIAL RESULTS ▪ GROUP SUSTAINABILITY PATH 19
Slide 21: Concreteness
3Q2023YTD 4Q-2024 RESULTS CONCRETENESS “A falling tree makes more noise than a growing forest” Lao Tzu 20
Slide 22: A Delivering Group: ESG Plan
3Q2023YTD 4Q-2024 RESULTS A DELIVERING GROUP ▪ All 2024 ESG Plan actions delivered (1) – 2023-2025 ESG Journey: conclusion of “foundation” phase ▪ Multi annual actions delivery on track – S.4 action of 2025 - Global Mobility Program – anticipated to 2024 ▪ Each action drove Group enhancement – CPPA
Slide 23: Three Priorities for Three Pillars
3Q2023YTD 4Q-2024 RESULTS THREE PRIORITIES FOR THREE PILLARS SUPPORTED GRI 2023-2025 KEY TARGETS and SDG ▪ Definition of Group “Carbon neutrality” strategy 2023 E ▪ Reduction of Group “Carbon intensity” 2025 ▪ Increase of renewed electricity consumption 2025 305-1 and 2 302-1 ▪ Injury rate improveme
Slide 24: A Delivering Group: ESG Timeline
4Q-2024 RESULTS 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 ▪ S.2 - ISO 45001 extension ▪ E.4 - Circular economy (phase 1) ▪
Slide 25: Outlook
2023RESULTS 4Q-2024 ▪ KEY HIGHLIGHTS ▪ 4Q-2024 PRELIMINARY FINANCIAL RESULTS ▪ GROUP SUSTAINABILITY PATH ▪ OUTLOOK 24
Slide 26: Solid Bases to Face the Future
2023 2025 SOLID BASES TO FACE THE FUTURE ▪ 2025 entrance consistent with 2024 trends (1) 2010-2025YTD BACKLOG EVOLUTION (1) Million € ‒ Water Jetting on going strength 1500.0 1400.0 ‒ Hydraulic stagnation at the curve bottom 1300.0 1200.0 1100.0 2021-23 average 1000.0 ▪ 2025 financial expectations 9
Slide 27: Annex: Disclaimer
ANNEX ▪• KEY HIGHLIGHTS DISCLAIMER • 4Q-2023 DETAILS ▪ 4Q-2025 PRELIMINARY FINANCIAL RESULTS • 2023 ESG ACTIONS ▪ GROUP SUSTAINABILITY PATH ▪ OUTLOOK ▪ ANNEX 26
Slide 28: Annex
ANNEX ANNEX ▪ DISCLAIMER ▪ 4Q-2023 DETAILS ▪ 2023-2025 ESG JOURNEY - 2024 ACTIONS (1) (1) Please refers to Group web site for specific documentation on the topic (“2024 ESG Actions Overview”, January 2025) 27
Slide 29: Disclaimer
ANNEX DISCLAIMER ▪ DISCLAIMER 28
Slide 30: Disclaimer – Performance Indicators
ANNEX DISCLAIMER − PERFORMANCE INDICATORS The Group uses several alternative measures that are not identified as accounting parameters in the framework of IFRS standards, to allow better evaluation of the trend of economic operations and the Group's financial position. Such indicators are also tools
Slide 31: Disclaimer – Forward Looking Statements
ANNEX DISCLAIMER – FORWARD LOOKING STATEMENTS This document has been prepared by Interpump Group S.p.A for aforesaid forward-looking statements. This document does not use during meetings with investors and financial analysts and is constitute an offer to sell or a solicitation to buy or subscribe t
Slide 32: 4Q-2024 Details
ANNEX 4Q-2023 DETAILS ▪ DISCLAIMER ▪ 4Q-2024 DETAILS 31
Slide 33: Sales Details – Sales Breakdown – Group
ANNEX ANNEX SALES DETAILS – SALES BREAKDOWN (1) – GROUP GROUP 2024 sales: € 2.078m OTHERS: 1% EARTH MOVING MACHINE: 6% GENERIC DEALERS: 16% PACIFIC AREA: 13% CONSTRUCTION: 8% REST of THE WORLD: 9% CLEANING: 5% AGRICOLTURE: 8% GENERIC CONTRACTORS: 4% EUROPE: 50% OTHER INDUSTRIAL LIFT: 6% SECTOR: 8% S
Slide 34: Sales Details – Sales Breakdown – Hydraulic
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – HYDRAULIC HYDRAULICS 2024 sales: € 1.407m OTHERS: 1% PACIFIC AREA: 10% EARTH MOVING MACHINE: 10% GENERIC DEALERS: 17% REST of THE WORLD: 10% CONSTRUCTION: 8% OTHER INDUSTRIAL SECTOR: 9% AGRICOLTURE: 12% F&B: 1% ENERGY&UTILITIES: 1% MINING: 1% SHIPYARD-MARI
Slide 35: Sales Details – Sales Breakdown – Water Jetting
ANNEX SALES DETAILS – SALES BREAKDOWN (1) – WATER JETTING WATER JETTING 2024 sales: € 671m OTHERS: 1% PACIFIC AREA: 17% CONSTRUCTION: 7% GENERIC DEALERS: 13% ADAPTORS INDUSTRIAL VEHICLES: 4% AUTOMOTIVE: 4% REST of THE WORLD: 10% SHIPYARD-MARINE: 5% CLEANING: 14% OIL&GAS: 5% RAILWAY: 0% ENERGY&UTILIT
Slide 36: Sales Details – Organic Evolution
ANNEX SALES DETAILS – ORGANIC EVOLUTION GROUP 2020-2024 ORGANIC GROWTH EVOLUTION by QUARTER 50% 39.4% 40% 2020: -12.6% - 2021: +20.1% - 2022: +13.7% - 2023: +6.9% - 2024: -9.0% 30% 17.9% 18.7% 20% 15.7% 14.2% 10% 11.6% 14% 9.1% 12.6% 12.5% 4% 0% -7.8% -3.4% -10% -1.7% -11.2% -9.2% -16.2% -9.5% -9.4%
Slide 37: Acquisition Details
ANNEX ACQUISITION DETAILS 2024 INTERPUMP GROUP ACQUISITIONS FINANCIAL DATA (1) IMPLIED First consolidation ACQUIRED COMPANIES EBITDA Additional Total EV/EBITDA Group division Sales Margin Information consideration PP CHINA April 2024 9 April YRP FLOW TECNOLOGY € 10m 10% - € 2.9m 2.9x Water Jetting d
Slide 38: 2023-2025 ESG Journey
ANNEX 2023-2025 ESG JOURNEY ▪ DISCLAIMER ▪ 4Q-2023 DETAILS ▪ 2023-2025 ESG JOURNEY - 2024 ACTIONS (1) (1) Please refers to Group web site for specific documentation on the topic (“2024 ESG Actions Overview”, January 2025) (1) Please refers to Group web site for specific documentation on the topic (“
Slide 39: Actions E.2 & E.3 – Corporate Power Purchase Agreement
ANNEX ACTIONS E.2 & E.3 – CORPORATE POWER PURCHASE AGREEMENT E POWER PURCHASE AGREEMENT MAIN FEATURES Plant technology Photovoltaic – New plant Plant location Italy PPA typology Physical sleeved (1) Consumption volumes 20GWh Contract length 10 years, starting from 1° January 2025 Price Fix 5 Italian
Slide 40: Actions E.7 – Product Eco-Design Guidelines
ANNEX ACTIONS E.7 – PRODUCT ECO-DESIGN GUIDELINES E REUSE AVOID WASTE CREATION RECYCLE REPAIR 39
Slide 41: Actions E.7 – Product Eco-Design Guidelines
ANNEX ACTIONS E.7 – PRODUCT ECO-DESIGN GUIDELINES E CORE PRINCIPLES GOALS ▪ Increased use of renewable energy sources Efficient material ▪ Seeking design solutions to reduce materials used while preserving performance levels management ▪ Adopt cross-product logics to optimise production and warehous
Slide 42: Action S.4 – Global Mobility Program
ANNEX ACTION S.4 – GLOBAL MOBILITY PROGRAM (1) S 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 professiona
Slide 43: Action S.6 – Responsable Supply Chain
ANNEX ACTION S.6 – RESPONSABLE SUPPLY CHAIN G ▪ Approach: leverage on existing best practices at subsidiaries level ▪ Methodology: internally performed activities – Harmonise business model variety between and inside divisions – Overcome decentralised organisation at operational level – Consider the
Slide 44: Action S.6 – Responsable Supply Chain
ANNEX ACTION S.6 – RESPONSABLE SUPPLY CHAIN G ▪ Focus: “Cost of sales”, the most important cost item of P&L – 4 most important cost items • Purchase of raw materials, semi-finished products, finished products • External manufacturing costs • Consumable tools • Consumables ▪ Sample: all Italian manuf
Slide 45: Action G.4 – Tax Compliance Consolidation
ANNEX ACTION G.4 – TAX COMPLIANCE CONSOLIDATION G EXTERNAL REGULATORY FRAMEWORK GROUP CODE of ETHICS 2013 & 2016 OCSE Guidelines (1) - D. Lgs. 128/2015 (2) TAX CONTROL FRAMEWORK TAX STRATEGY Goals – Principles – Guidelines - Application TAX COMPLIANCE MODEL 44
Slide 46: Action G.4 – Tax Compliance Consolidation – TCF
ANNEX ACTION G.4 – TAX COMPLIANCE CONSOLIDATION – TCF G 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 minimization a
Slide 47: G.6 Updating on ESG Journey
ANNEX G.6 UPDATING ON ESG JOURNEY G ▪ Improvement of communication transparency – 360° approach, not only ESG topics ▪ 2023-25 ESG Journey – Quarterly updating – Ad hoc presentations • «Tax Compliance Consolidation», 14 November 2024 • «Corporate Purchase Power Agreement», 21 November 2024 • «Eco-De
Slide 48: G.6 Updating on ESG Journey
ANNEX G.6 UPDATING ON ESG JOURNEY G 47
Slide 49: 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