Interpump Group S.p.a. · MIL:IP
Interpump — Q1 2022 Earnings Presentation
24 slides from Interpump's earnings presentation, May 13, 2022
Slide 1: Interpump Group 1Q2022 Financial Results
INTERPUMP GROUP 1Q2022 FINANCIAL RESULTS 13 May 2022
Slide 2: Index
INDEX ▪ KEY HIGHLIGHTS ▪ 1Q2022 FINANCIAL RESULTS ▪ 2022 KEY EVENTS ▪ GROUP SUSTAINABILITY PATH ▪ 2022 OUTLOOK ▪ ANNEX 1
Slide 3: 1Q2022 Key Highlights
zt y 1Q2022 KEY HIGHLIGHTS
Slide 4: 1Q2022 The Best Base for 2022 Commitments
1Q2022 THE BEST BASE FOR 2022 COMMITMENTS ▪ 2022 Group commitment is to pursue its strategic and long term growth path, consolidating and protecting profitability in an extremely complex scenario − Group sustainability activities and processes evolution is another important target ▪ 1Q2022 Results r
Slide 5: 1Q2022 Financial Results
Jix) 102022 FINANCIALRESULTS
Slide 6: 1Q2022 Group – Stronger Than Expected Sales Performance
1Q2022 GROUP – STRONGER THAN EXPECTED SALES PERFORMANCE 1QUARTER Million € 2021 2022 Group Sales 375.6 488.7 Growth, +30.1% of which ▪ Organic (1) +12.6% ▪ Perimeter change (1) +15.5% ▪ FX impact +2.9% EBITDA 91.5 114.2 Growth +24.9% % on net sales 24.4% 23.4% 23.9% excl. White Drive Net Income 53.8
Slide 7: 1Q2022 Divisions – EBITDA Protection Actions Kicking In
1Q2022 DIVISIONS – EBITDA PROTECTION ACTIONS KICKING IN 1QUARTER Million € 2021 2022 HYDRAULICS SALES 266.9 364.8 Growth +36.7% EBITDA 60.5 79.2 Growth +30.9% 22.1% % on net sales 22.6% 21.7% excl. White Drive SALES 108.7 123.8 JETTING WATER- Growth +13.9% EBITDA 31.0 35.0 Growth +13.0% % on net sal
Slide 8: 1Q2022 Sales – Double Digit Organic Growth
1Q2022 SALES – DOUBLE DIGIT ORGANIC GROWTH ▪ € 488.7m of Group sales, +30.1% on total basis 1Q2022 GROUP SALES EVOLUTION − Double digit organic growth: 12.6% +30.1% +20.1% ▪ Business quarterly swings exacerbated by COVID +2.9% comparison impact +15.5% € 489m +12.6% − Water Jetting division in partic
Slide 9: 1Q2022 Sales – Business Swings Exacerbated by Covid Comparison
1Q2022 SALES – BUSINESS SWINGS EXACERBATED BY COVID COMPARISON GROUP 2020-2022 ORGANIC GROWTH EVOLUTION by QUARTER 50% 39.4% 40% 30% 20% 17.9% 12.6% 14.2% 11.6% 10% 0% -1.7% -10% -11.2% -20% -16.2% -25.2% -30% 1Q 2Q 3Q 4Q HYDRAULICS 2020-2022 ORGANIC GROWTH WATER-JETTING 2020-2022 ORGANIC GROWTH EVO
Slide 10: 1Q2022 EBITDA – EBITDA Protection Actions Kicking In
1Q2022 EBITDA – EBITDA PROTECTION ACTIONS KICKING IN ▪ EBITDA reached € 114.2m, 23.4% on net sales − 23.9% excluding White Drive ▪ First benefits of EBITDA protection countermeasures − Constant focus on both purchase and selling price policy • Purchase prices: raw material price peaks managed throug
Slide 11: 1Q2022 NFP - Reflecting Industrial Medium Long Term Approach
1Q2022 NFP - REFLECTING INDUSTRIAL MEDIUM LONG TERM APPROACH ▪ NFP was € 530.3m (1) compared to € 495m of 2021 NFP QUARTERLY EVOLUTION (€ m) − Buy-back process and FCF were main drivers 41 0 (0) 530 495 (6) 0 0 ▪ FCF was € 5.8m compared to € 40.8m of 1Q2021, reflecting industrial long term approach
Slide 12: 1Q2022 White Drive – Results and Integration on Track
1Q2022 WHITE DRIVE – RESULTS AND INTEGRATION ON TRACK WHITE DRIVE INTEGRATION PLAN 2021 STEPS 2022 STEPS Four ex-Eaton production lines transfer and Two motors production lines transferred in 1Q2022 Carve out finalisation start of production capacity increase CAPEX: close to € 7m since October 2021
Slide 13: Sustainability Path
SUSTAINABILITY PATH aa Bix] 2022
Slide 14: Governance − 2022-24 Incentive Plan
2022 GOVERNANCE − 2022-24 INCENTIVE PLAN ▪ Group Annual Shareholding meeting approved 2022-24 Incentive Plan ▪ Previous steps − 2019: approval of “2019-2022 Stock Option Plan” − 2020: approval of First Section of Group Remuneration Policy ▪ 2022 steps − Approval of “2022-2024 Stock Option Plan” ▪ 20
Slide 15: Governance − 2022-24 Incentive Plan − Highlights
2022 GOVERNANCE − 2022-24 INCENTIVE PLAN − HIGHLIGHTS ▪ Main objectives pursued by the new Incentive Plan − Confirmed of the already present “involvement and retention management” approach − Introduction of an ESG involvement target ▪ “Minimum holding” period − Confirmation of the “3 years period” b
Slide 16: Outlook
OUTLOOK Bix] 2022
Slide 17: 2022 Gaining Confidence
2022 GAINING CONFIDENCE ▪ 1Q2022 Results revealed themselves as the best base for 2022 commitments − a steady evolution month after month ▪ The exceptional and unexpected backlog increase gained between 2020 and 2021 – around 3x - is gaining soundness, with a “2022 start - April YTD” growth close to
Slide 18: Additional Step in Power Transmission
2022 ADDITIONAL STEP IN POWER TRANSMISSION ▪ Through different acquisitions Interpump was able to create its power transmission business segment - 2019: Reggiana Riduttori and Transtecno - 2020: DZ Transmission - 2021: Berma - April 2022: Draintech In less than 3 years Group became the 2nd player of
Slide 19: Proven Capability to Face External Shocks
2022 PROVEN CAPABILITY TO FACE EXTERNAL SHOCKS ▪ 2008-10 financial crisis and 2020-21 pandemic crisis could be considered as Group most difficult periods ▪ In both case Group showed an impressive reaction capability − 2009 vs. 2008: EBITDA margin from 20.5% to 13.7% − 2020 vs. 2019: EBITDA margin fr
Slide 20: Different Dimension, Higher Diversification and Flexibility
2022 DIFFERENT DIMENSION, HIGHER DIVERSIFICATION AND FLEXIBILITY ▪ Interpump in 2021 compared to Interpump in 2007 − Breakdown by division: better fit to the different economic cycles − Breakdown by geography: better mix in Europe, with “Europe-excluding-Italy” from 29% to 36% on total − Breakdown b
Slide 21: Annex
ANNEX ▪ DISCLAIMER 20
Slide 22: Annex 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 23: Annex 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 24: Carlo Banci
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