Slide 1: Growing Profitably in a Challenging Environment: 9M 2023 Financial Results
Growing Profitably in a Challenging Environment 9M 2023 Financial Results 8th November 2023 © 2023 De Nora
Slide 2: Agenda
Agenda Speakers: Paolo Dellachà - CEO Massimiliano Moi - CFO 9M 2023 BUSINESS 9M 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 3: 9M 2023 Achievements
9M 2023 ACHIEVEMENTS S t r o n g F o u n d a t i o n t o D r i v e L o n g - Te r m G r o w t h a n d P r o f i t a b i l i t y Sustainable by DNA, Working on our Green Plan Revenues growth +2.1%, or Share Buyback launched: 5.4% at constant FX rates De Nora strongly believes in its 8 capacity to gen
Slide 4: 9M Main Results
9 M 2 0 2 3 M A I N R E S U LT S Solid profitability & Cash Generation, Revenues +5.4% at constant FX REVENUES INCREASE SOUNDING CONFIRMED ENERGY PROFITABILITY TRANSITION’S GROWTH €629.8m €124.3m €68.6m Revenues EBITDA Adjusted (€145.9 m in 9M’22) Revenue, 4.9x 9M’22 +2.1% vs 9M 2022 19.7% Ebitda Ad
Slide 5: Share Buyback Launched
SHARE BUYBACK LAUNCHED De Nora strongly believes in its capacity to generate value for all stakeholders and to grow in the mid and long-term PURPOSES SHARE BUYBACK PROGRAM Remuneration policies already adopted (PSP1) by De Nora Max amount €45m Start date 9th Nov. 2023, effective for 9 months Any oth
Slide 6: Agenda: Business Highlights
Agenda Strong foundation to drive long-term sustainable growth and profitability 9M 2023 BUSINESS 9M 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 7: 9M 2023 Electrode Technologies Business
9M 2023 ELECTRODE TECHNOLOGIES BUSINESS S o u n d i n g a n d S t a b l e p r o f i t a b i l i t y, Re v e n u e s g r e w d e s p i t e f o r e x h e a d w i n d s Electrode Technologies VOLUME GROWTH UNDERPINNED BY TECHNOLOGICAL UPGRADE PROJECTS: OxyChem project, Texas (US), Chlor-Alkali 56%1 Del
Slide 8: 9M Water Technologies Business
9 M 2 0 2 3 WAT E R T E C H N O L O G I E S B U S I N E S S S u s t a i n a b l e W T S g r e w, M a r k e t N o r m a l i z a t i o n i m p a c t e d P o o l s Water Technologies WATER TECHNOLOGIES SYSTEMS (WTS2) We expect that our Sustainable Technologies dedicated to providing Clean Water and tre
Slide 9: 9M 2023 Energy Transition
9M 2023 ENERGY TRANSITION Well Equipped to be the Champion in the Green Hydrogen Revolution Energy Transition Since 2022, we have achieved 11%1 €100m+ Revenues 111 €m 1 GW of Green H2 Techs sold 1000 MW 700 69 400 43 47 300 14 9M'22 FY'22 H1'23 9M'23 Cumulated since FY'22 H1 '23 9M'23 Cumulated Sinc
Slide 10: Our Green Hydrogen Projects
9M 2023 ENERGY TRANSITION Our Green Hydrogen Projects Main Projects in Backlog MoU – Reservation Capacity (by our jv thyssenkrupp nucera) NEOM, Saudi Arabia, Largest H2 Project Globally MoU to extend Camacari project (Brazil) to 240 MW part of > 2 GW tot project Largest Green Fertilizer project in S
Slide 11: Energy Transition Pipeline
ENERGY TRANSITION PIPELINE While we are executing our Backlog, the Pipeline is growing to 46 GW BACKLOG ~1.5 GW ~150 m€ ~3.2 GW o/w ~ 50% ~300 m€ HOT DEALS 1 • ELECTRODES Secured Orders (700+ MW), MoU, Capacity Reservations • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSUED PROJECTS2 ~8.8 GW
Slide 12: Expansion 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 Enabling the right investments to drive profitable and sustainable growth US Germany Japan (Okayama) Suzhou - China Expanding existing Plant, Expanding existing Energy Expanding existing plant. Expansion of Existing Plant Completed and technology u
Slide 13: Agenda: Results Review
Agenda Strong foundation to drive long-term sustainable growth and profitability 9M 2023 BUSINESS 9M 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 14: 9M 2023 Growing Revenues
9M 2023 GROWING REVENUES E n ergy Tran s i tion , Ch lor -A l kali an d W TS mo re th en o ffs et Pools’ market normalization & FX Headwinds KEY HIGHLIGHTS Revenue By Geography ELECTRODE TECHNOLOGIES (€m) 2.1% YoY Growth 5.4% at constant rates • Growth in Chlor-Alkali (+2.9% YoY) and soft performanc
Slide 15: 9M 2023 Solid Backlog on Continuous Execution
9M 2023 SOLID BACKLOG ON CONTINOUS EXECUTION Good Project Execution drives backlog trend, while pipeline support future growth thyseenkrupp nucera’s Secured Orders Energy Transitions BU KEY HIGHLIGHTS 9M 2023 Backlog by (€m) Year of Deployment ELECTRODE TECHNOLOGIES • Backlog driven by solid project
Slide 16: 9M Operating Costs
9 M 2 0 2 3 O P E R AT I N G C O S T S Corporate Structure and R&D profile well set to grow COGS (€m)* SG&A and Corporate R&D (€m)* KEY HIGHLIGHTS (€m)* COGS incidence increase reflects As % changes in product mix of 62.7% 66.1% 12.2% 12.9% 1.5% 1.6% Sales G&A and Corporate costs slightly increased
Slide 17: 9M 2023 EBITDA Adjusted
9M 2023 EBITDA ADJUSTED S o l i d P r o f i t a b i l i t y, o n c e a ga i n c o n f i r m i n g 2 0 2 3 G u i d a n c e Adj. EBITDA KEY HIGHLIGHTS EBITDA Adj. Margin % Total 23.7% 19.7% ELECTRODE TECHNOLOGIES Energy Transition n.m. 11.0% • Solid profitability in line with guidance Water Tech. 20.8
Slide 18: 9M 2023 Results: From EBITDA to a Strong Net Result
9 M 2 0 2 3 R E S U LT S : F R O M E B I T D A TO A S T R O N G N E T R E S U LT 227.0 KEY HIGHLIGHTS 126.9 3.6 198.6 EBIT almost in line with 9M’22 following : 9M • the EBITDA reported performance, 2023 • slight increase in Dep&Amort following capex Net Financial Costs / Incomes in 9M 2023 include
Slide 19: Net Working Capital Evolution
9 M 2 0 2 3 R E S U LT S Net Working Capital Evolution NWC % Sales* KEY HIGHLIGHTS 325.9 315.3 (€m) 307.4 280.2 Q3’ 23 NWC shows a lower revenue incidence than Q3’22, mainly reflecting lower inventories. The performance vs Q2’23 mainly reflects the increase of: - Trade Receivables, due to high (€m)
Slide 20: Net Financial Position @ September 2023
NET FINANCIAL POSITION @ 30 SEPTEMBER 2023 Q 3 O p e ra t i n g C a s h F l o w m o r e t h a n r e p a i d C a p e x , I n t e r e s t s & Ta xe s NET CASH EBITDA Δ NWC CAPEX TAXES FINANCIALS DIVIDEND NET CASH EBITDA Δ NWC CAPEX TAXES FINANCIALS GREENSHOE NET CASH H11 PAID COSTS PAID JUN. 2023 Q31
Slide 21: 2023 Guidance
2023 GUIDANCE Confirmed profitability and Cash generation FY 2023 € 850-€ 870 CONSOLIDATED Revenues million • Revenue negatively impacted by F/X (~€30 million) and Pools market normalization FY 2023 Adj. 18% - 19% Ebitda Margin • Confirmed Adj. EBITDA margin ENERGY TRANSITION FY 2023 €100 • 1,0 GW*
Slide 22: Agenda: Final Remarks
Agenda Strong foundation to drive long-term sustainable growth and profitability 9M 2023 BUSINESS 9M 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 23: Final Remarks
FINAL REMARKS • Our growth path continues despite a challenging environment, with Revenues improving by +5.4% at constant exchange rates, solid profitability and strong cash flow generation • While the Hydrogen Market is growing at a slower pace than expected… • …Our Energy Transition business is gr
Slide 24: Agenda: Q&A
Agenda Strong foundation to drive long-term sustainable growth and profitability 9M 2023 BUSINESS 9M 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 25: Q&A Session
Q&A Session © 2023 De Nora
Slide 26: Additional Materials
Additional Materials © 2023 De Nora
Slide 27: Income Statements
I N C O M E S TAT E M E N T S (€m) Q1 2022 Q2 2022 Q3 2022 9M 2022 Q1 2023 Q2 2023 Q3 2023 9M2023 9M 2022 Revenue 200.1 210.4 206.2 616.6 216.9 203.5 209.4 629.8 YoY Growth (%) 79.8 % 47.8 % 35.2 % 51.8 % 8.4 % (3.4%) 1.5 % 2.1 % Change in inventory of finished goods and work in progress 6.8 7.7 23.
Slide 28: 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 Q2 ‘23 Q3 ‘23 REVENUES 200.1 210.4 206.1 236.2 216.9 203.5 209.4 Electrode Technologies 109.5 118.5 123.4 122.0 118.9 112.8 121.0 Energy Transition 4.5 2.4 7.2 28.6 26.6 20.7 21.3 Water Tec
Slide 29: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) 9M 2022 9M 2023 Sales 616.6 629.8 EBITDA 121.9 121.8 Margin (%) 19.8% 19.3% Terminations costs (labor + legal expenses) 0.4 0.9 Costs relative to IPO process 3.5 0.7 Costs relative to M&A, integration, and company reorganization 0.2 0.2 Co
Slide 30: Balance Sheet
BALANCE SHEET (€m) Q3 2023 FY 2022 Intangible assets 127.8 131.6 Property, plant and equipment 215.6 184.2 Equity-accounted investees 230.3 122.7 Fixed asset 573.7 438.4 Inventories 287.0 295.5 Contract work in progress, net of advances from customers 31.1 16.4 Trade receivables 140.3 123.4 Trade pa
Slide 31: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) 9M 2023 9M 2022 YTD EBITDA 121.8 121.9 Losses on the sale of property, plant and equipment and intangible assets 0.3 0.2 Other non-monetary items 0.6 16.8 Cash flows generated by operating activities before changes in net working capital 122.7 138.9 Change in inv