Industrie De Nora Spa · MIL:DNR

Industrie De Nora Spa — De Nora — Non-Deal Roadshow (May 2023)

52 slides from Industrie De Nora Spa's roadshow presentation, May 2023

  1. Slide 1: European Roadshow May 2023

    EUROPEAN ROADSHOW May 2023 © 2023 De Nora

  2. Slide 2: De Nora: 100 Years of Innovation

    1 DE NORA 100 YEARS -OFe--eee Se eM IS TRY

  3. Slide 3: De Nora Today

    D E N O R A T O D AY The world's largest supplier of high- performing coatings and electrodes for industrial applications. Leader in emerging sustainable technologies, and with a key role in energy transition. Italian multinational company listed on the Recognized provider of disinfection Euronext M

  4. Slide 4: About Us

    ABOUT US AMS EMEIA A PA C 268 Patent families 6 4 688 25 639 60.9m 636 86.1m 4 69.8m Operating companies 100 40% of revenues Years of Innovation 28% of revenues 32% of revenues €216.8m Q1 2023 Revenues 1.900+ People Electrode Energy Water Factories People Revenues Technology Transition Technology 4

  5. Slide 5: Financial Results - Strong Organic Growth

    F I N A N C I A L R E S U LT S 2 0 2 0 - 2 0 2 2 STRONG ORGANIC INCREASED ALL-TIME HIGH GROWTH PROFITABILITY BACKLOG €852.8m €190.8m €789.6m 2022 Revenue 2022 EBITDA Adj. €193 Energy Transition (31.12.2022) +38.5% vs 2021 +50.6% vs 2021 +44.0% vs 2021 852.8 789.6 615.9 547.1 499.5 345.7 190.8 126.7

  6. Slide 6: About Us: Global leading provider of electrochemical solutions

    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 6 © 2023 De Nora

  7. Slide 7: 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

  8. Slide 8: Timeline

    TIMELINE 1 First Joint Venture with thyssenkrupp Uhde Chlorine Engineers (“tkUCE”) was set up in 2001, renamed tk nucera in 2022. 2 Acquisition of Severn Trent Water Purification Technologies. 3 Approximately 33% stake acquired from the De Nora family in April 2017. 4 AWE: Alkaline Water Electrolysi

  9. Slide 9: 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 55%1 12%1 33%1 PRODUCTS PRODUCTS PRODUCTS Anodes, Cathodes, Catalytic Coatings Electrochlorination, Disinfection and Electrodes for Alkaline Water Gas Diffus

  10. Slide 10: Electrode Technologies: Applications

    ELECTRODE TECHNOLOGIES APPLICATIONS Chlor-alkali Electronics Mining OTHER APPLICATIONS Pulp & Steel Automotive Plumbing & furniture Steel & concrete paper galvanizing Chrome plating Surface finishing Corrosion protection 10 © 2023 De Nora

  11. Slide 11: Energy Transition: Applications and Portfolio

    ENERGY TRANSITION MAIN APPLICATIONS Energy Storage Green Chemicals Mobility PORTFOLIO Electrodes for Alkaline Electrolysis Cells Stack for AWE Gas Diffusion Electrodes Water Electrolysis for fuel cells (AWE) 11 © 2023 De Nora

  12. Slide 12: Water Technologies: Applications and Brands

    W AT E R T E C H N O L O G I E S APPLICATIONS Pools Municipal Industrial Marine PORTFOLIO – main brands Electrodes for pool ClorTec® On-Site Capital Controls® CECHLO® BALPURE® chlorinators Hypochlorite Generator Ozone Generator On-Site Generator Ballast Water Management 12 © 2023 De Nora

  13. Slide 13: 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

  14. Slide 14: Services: Intimate customer relationships

    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

  15. Slide 15: 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

  16. Slide 16: 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

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: Q1 2023 Main Achievements & Results

    Q1 2023 Main Achievements & Results 20 © 2023 De Nora

  21. Slide 21: Q1 2023 Achievements

    Q1 2023 ACHIEVEMENTS Execution drove the quarter results, supported by solid profitability Solid start to 2023 with Q1 Published our Corporate Results in line with Guidance, Sustainability Report, accelerating +8.4% Revenue 7 the journey to improve our impact 1 Confirmed growth in the Manufacturing

  22. Slide 22: Q1 Main Results

    Q 1 2 0 2 3 M A I N R E S U LT S Well on track with our Business Plan GROWTH IN LINE WITH SOUNDING CONFIRMED ENERGY GUIDANCE PROFITABILITY TRANSITION’S GROWTH €216.9m €46.7m €26.6m Revenue Ebitda Adjusted (€55.2m in Q1 2022) Revenue, ~5.9x Q1’22 +8.4% vs Q1 2022 21.5% Ebitda Adj margin 20% Ebitda Ma

  23. Slide 23: Q1 2023 Business Overview: Electrode and Water Technologies

    Q1 2023 BUSINESS OVERVIEW E l e c t r o d e a n d W a t e r Te c h n o l o g i e s b u s i n e s s e s Electrode Water Technologies Technologies 55%1 33%1 • Revenue growth driven by Chlor-Alkali projects in • Growth in Electrochlorination, Filtration & Disinfection main geographies products line par

  24. Slide 24: Q1 2023 Business Overview: Energy Transition

    Q1 2023 BUSINESS OVERVIEW E n e rg y Tra n s i t i o n … i m p re s s i ve g row t h co n t i n u e s Energy Transition BACKLOG (31 March) 2.1GW – € 181 m Main projects NEOM, Saudi Arabia , Largest H2 Project Globally >2 GW H2 to Green Ammonia Camacari Complex, 1° industrial-scale green H2 Site in B

  25. Slide 25: Energy Transition Pipeline

    ENERGY TRANSITION PIPELINE C o n f i r m e d o u r l a r g e a n d c o n c r e t e p i p e l i n e o f 4 2 G W, p r o v i d i n g visibility for future growth BACKLOG ~2.1 GW ~181 m€ HOT DEALS 1 ~3.0 GW • ELECTRODES ~287 m€ • CELL MANUFACTURING ACTIVELY PURSUED • ELECTRODE PACKAGE ~7.0 GW ~660 m€ PR

  26. Slide 26: 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 Q1 2023 Ongoing developments in brown and green fields projects US Increase of existing plants’ capacity with automation Germany Expansion of existing and technology upgrades manufacturing capacity to enhance Energy Transition productivity China (S

  27. Slide 27: Q1 2023 Revenue

    Q1 2023 REVENUE Organic Growth in line with guidance KEY HIGHLIGHTS ELECTRODE TECHNOLOGIES 8.4% YoY Growth Revenue By Geography • Growth was driven by volume increase mainly in Chlor-alkali (Membrane) +5.9x YoY • Softer performance in Electronics and Electrowinning due to project time effect • After

  28. Slide 28: Q1 2023 Backlog

    Q1 2023 BACKLOG Backlog driven by projects execution KEY HIGHLIGHTS Backlog current 70% year coverage ELECTRODE TECHNOLOGIES Q1 2023 Backlog by Year of Deployment • The backlog reflects strong project execution in the quarter • New orders expected in Q2, due 2025+ to our rich current pipeline 13% 20

  29. Slide 29: Q1 Operating Costs

    Q 1 2 0 2 3 O P E R AT I N G C O S T S Costs structure mainly in line with last 2022 quarters KEY HIGHLIGHTS COGS (€m)* SG&A and Corporate R&D (€m)* COGS increase reflects changes in (€m)* product mix, mainly in Water and Electrode Technologies Businesses As % of 59.8% 64.8% 11.5% 12.1% 1.3% 1.6% Sa

  30. Slide 30: Q1 2023 EBITDA Adjusted

    Q1 2023 EBITDA ADJUSTED S o l i d P r o f i t a b i l i t y, l a r g e l y c o n f i r m i n g 2 0 2 3 G u i d a n c e Adj. EBITDA (€m) KEY HIGHLIGHTS EBITDA Adj. Margin % ELECTRODE TECHNOLOGIES Total 27.6% 21.5% Profitability change reflects Energy Transition n.a. 20.0% • extraordinary performance

  31. Slide 31: From EBITDA to Net Result

    F R O M E B I T D A TO N E T R E S U LT KEY HIGHLIGHTS 39.7 35.7 • EBIT trend mainly attributable to EBITDA performance -4.0 25.0 Q1 Changes in Net Financial costs reflect 2023 • Higher financial costs in Q1 2023 EBITDA Dep. Amort. EBIT Net Financial Investm. EBT Taxes NET RESULT • Higher Financial

  32. Slide 32: Q1 2023 Results: Net Working Capital Evolution

    Q 1 2 0 2 3 R E S U LT S Net Working Capital Evolution KEY HIGHLIGHTS NWC % Sales* 42.0% 32.9% 38.0% NWC was €330m with a slight increase in the incidence on revenues vs. Dec 2022 Main Drivers: • Increase in Trade Receivables driven by some concentration of revenues accounted in March • Decrease in

  33. Slide 33: Q1 2023 Net Cash Financial Position

    Q1 2023 Net Cash Financial Position (€’m) reduction in advance payments cashed in late Dec. 2022 (22) o/w ~€11 m in Energy Transition BU 0 NET CASH EBITDA1 Δ NWC CAPEX INCOME TAXES NET FINANCE OTHERS NET CASH DEC’22 PAID COSTS PAID MAR’23 33 1. Ebitda Reported © 2023 De Nora

  34. Slide 34: Confirmed 2023 Guidance

    CONFIRMED 2023 GUIDANCE Consolidation in Electrodes and Water Divisions, further ramp -up in E n ergy Tran s i tion €900- 950m CONSOLIDATED REVENUES 2023E 130-150 €175-185m EBITDA 2023E Ebitda Margin 18%-19% €130-150m ENERGY TRANSITION REVENUES 2023E EBITDA Margin Low Double Digit VOLUMES 1.3 GW 34

  35. Slide 35: 2022-2025 Strategy Update

    2022-2025 Strategy update Electrochemistry, Water, Energy: our future for a cleaner World 35 © 2023 De Nora

  36. Slide 36: 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

  37. Slide 37: 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

  38. Slide 38: 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

  39. Slide 39: 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 39

  40. Slide 40: 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 40 © 2023 De Nora

  41. Slide 41: 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

  42. Slide 42: 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

  43. Slide 43: 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 1,350-1,500 250 - 280 18%-20% 15%-16% €500 - €600m €500-€600 m 900 - 950 191 16%-17% 10%+ 853 175-185 43 2,4 2%- 4% 9%-1

  44. Slide 44: Investment Case

    INVESTMENT CASE A Global Technology Leader Across All Its Businesses: Electrode, Water treatment, and Green Hydrogen Mission Critical Solutions Addressing Sustainability Megatrends: Enabler for Industries Decarbonization and Clean Water At the Heart of The Green Hydrogen Global Revolution Strong and

  45. Slide 45: Additional Materials

    Additional Materials 45 © 2023 De Nora

  46. Slide 46: Income Statements

    I N C O M E S TAT E M E N T S (€m) FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Revenue 852.8 200.1 210.4 206.2 236.2 216.9 YoY Growth (%) 38.5 % 79.8 % 47.8 % 35.2 % 12.6 % 8.4 % Change in inventory of finished goods and work in progress 34.8 6.8 7.7 23.4 (3.1) 16.8 Other income 6.5 1.6 0.9 0.7

  47. Slide 47: 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 Q1’22 Q2'22 Q3'22 Q4'22 Q1 ‘23 REVENUES 200.1 210.4 206.2 236.2 216.9 Electrode Technologies 109.4 118.5 123.5 122.0 118.9 Energy Transition 4.5 2.4 7.2 28.6 26.6 Water Technologies 86.2 89.5 75.4 85.6 71.4 EBITDA Adj. 5

  48. Slide 48: Income Statement: Focus on EBITDA Adjustments

    I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) Q1 2023 Q1 2022 Sales 216.9 200.1 EBITDA 46.5 54.0 Margin (%) 21.4% 27.0% Terminations costs (labor + legal expenses) 0.1 0.0 Costs relative to IPO process 0.0 1.1 Other non recurring costs 0.0 0.1 Adj. EBITDA 46.7 55.2 Margin (%) 21.5% 27

  49. Slide 49: Balance Sheet

    BALANCE SHEET (€m) Q1 2023 FY 2022 Intangible assets 128.4 131.6 Property, plant and equipment 196.3 184.2 Equity-accounted investees 122.7 122.7 Fixed asset 447.3 438.4 Inventories 293.8 295.5 Contract work in progress, net of advances from customers 18.0 16.4 Trade receivables 145.5 123.4 Trade pa

  50. Slide 50: Cash Flow Statement

    C A S H F L O W S TAT E M E N T (€m) FY 2022 Q1 2023 EBITDA 165.2 46.5 Losses on the sale of property, plant and equipment and intangible assets 0.3 0.2 Other non-monetary items 10.7 0.0 Cash flows generated by operating activities before changes in net working capital 176.2 46.7 Change in inventory

  51. Slide 51: 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

  52. Slide 52: © 2023 De Nora

    © 2023 De Nora

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