Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — Non-Deal Roadshow (June 2024)
51 slides from Industrie De Nora Spa's roadshow presentation, June 2024
Slide 1: Corporate Profile June 2024
CORPORATE PROFILE June 2024 © 2024 De Nora
Slide 2: Agenda
AGENDA De Nora in a Nutshell GPS – Growth Profitability and Sustainability Q1 2024 Results Investment Case 2 © 2024 De Nora
Slide 3: Who We Are
WHO WE ARE G l o b a l L e a d e r i n E l e c t r o d e Te c h n o l o g i e s a n d Wate r Tre at m e nt S o l u t i o n s 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 Green H
Slide 4: De Nora's Key Numbers and Global Footprint
DE NORA’S KEY NUMBERS AND GLOBAL FOOTPRINT Te c h n o l o g i e s , M a n u f a c t u r i n g C a p a c i t y & P e o p l e u n d e r p i n o u r l e a d e r s h i p AMS EMEIA A PA C 281 Patent families 6 4 745 24 586 258m 679 308m 5 290m Operating companies 15 36% of revenues Manufacturing faciliti
Slide 5: Innovation, Growth, Leadership, Partnerships and Resilience
I N N O V AT I O N , G R O W T H , L E A D E R S H I P, PA R T N E R S H I P S A N D R E S I L I E N C E This is our successfully history 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 Purif
Slide 6: De Nora: Three Divisions, One Soul
DE NORA: THREE DIVISIONS, ONE SOUL 1 0 0 Ye a r s o f E l e c t r o c h e m i s t r y, t o p r o v i d e S u s t a i n a b l e Te c h n o l o g i e s 2023 Revenues By Business Units 12% 34% 54% ELECTRODE TECHNOLOGIES ENERGY TRANSITION WATER TECHNOLOGIES Electrochlorination, Disinfection and Anodes,
Slide 7: Electrode Technologies Business
ELECTRODE TECHNOLOGIES BUSINESS Undisputed Global Leader to serve key multiple industries KEY PRODUCTS ANODES CATHODES CATALYTIC COATINGS GDE1 MAIN ADDRESSED INDUSTRIES Chlor-alkali Electronics Mining OTHER INDUSTRIES Pulp & paper Steel Automotive Plumbing & furniture Steel & concrete galvanizing Ch
Slide 8: Energy Transition
ENERGY TRANSITION L e a d i n g Te c h n o l o g i c a l P o s i t i o n i n t h e G r e e n H y d r o g e n MAIN APPLICATIONS Hard to Abate Green Chemicals Mobility Energy Storage PORTFOLIO Electrodes for Alkaline Electrolysis Cells Stack for AWE Gas Diffusion Electrodes Gas Diffusion Electrodes Wa
Slide 9: Water Technologies
WATER TECHNOLOGIES L e a d i n g Te c h n o l o g i e s t o P r o v i d e a S u s t a i n a b l e W a t e r M a n a g e m e n t APPLICATIONS Pools WATER TECHNOLOGIES SYSTEMS (DISINFECTION AND FILTRATION) Municipal Industrial PORTFOLIO – main brands Electrodes for pool ClorTec® On-Site Capital Contro
Slide 10: 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 281 Patent Families 5 R&D Centers 100+ Electronics, Nickel & Electrodes for electrochlorination; w
Slide 11: Financial Results - Our Sustainable and Profitable Growth
F I N A N C I A L R E S U LT S 2 0 2 1 - 2 0 2 3 Our Sustainable and Profitable growth STRONG ORGANIC SOLID NET FINANCIAL GROWTH PROFITABILITY POSITION €856m €171m €68m 2023 Revenue 2023 EBITDA Adj. €51m in 2022 CAGR 2021- 2023 +18% CAGR 2021- 2023 +17% +34% vs 2022 EBITDA MARGIN % 21% 22% 20% 856 8
Slide 12: 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 © 2024 De Nora
Slide 13: Sustainable by DNA
S U S TA I N A B L E BY D N A Committed to leading in Green Innovation & Circular Economy enhancing o u r P O S I T I V E I M PA C T ESG 2030 Plan’s Pillars Selected Flagship initiatives include: Develop Product Scorecards for our portfolio disclosing our B technologies’ environmental and social per
Slide 14: Agenda
AGENDA De Nora in a Nutshell GPS – Growth Profitability and Sustainability Q1 2024 Results Investment Case 14 © 2024 De Nora
Slide 15: GPS – Growth Profitability Sustainability
S T R AT E G I C P I L L A R S GPS – GROWTH PROFITABILITY SUSTAINABILITY GROWTH & MARKET POSITIONING • Deliver step-change organic growth driven by energy transition in partnership with the leading players • Pursue profitable growth in both Electrode and Water Technologies • Focus on after-market ex
Slide 16: Market Outlook 2024-2026
MARKET OUTLOOK – 2024- 2026 Different growth speeds of our markets CHLOR-ALKALI ELECTRONICS MINING ENERGY TRANSITION • Chlorine • Li Batteries • Nickel • Green hydrogen • Caustic soda • PCBs • Cobalt POOLS MUNICIPAL INDUSTRIAL Market CAGR 2023- 2026 CAGR <5% CAGR 5-10% CAGR >10% • Residential • Drin
Slide 17: R&D Focus: Performance, Innovation, Sustainability
B E S T I N C L A S S I N N O VAT I O N A N D R & D … Improving products performance and sustainability to strengthen our leadership R&D FOCUS: PERFORMANCE, INNOVATION, SUSTAINABILITY Improvement of DSA® Electrodes performances Current Density increase, energy efficiency and life-span Noble Metals’
Slide 18: Electrode Technologies: Consolidate and Improve Global Leadership
ELECTRODE TECHNOLOGIES Consolidate and improve our Global Leadership Market Evolution Strategic Guidance Chlor-Alkali Stable in 2024, recovery in 2025-2026. • Innovative and Sustainable Electrodes Growth’s driver: Technological upgrades • Optimizing Noble Metal Usage • Maintaining Customer and Partn
Slide 19: Water Technologies: Strengthen Competitive Position
W A T ER TECHNOLOGIES Strengthen our competitive position via organic growth and M&A Market Evolution Strategic Guidance WTS WTS • Investments in municipal and energy sectors • Focus on electrochlorination and on-site • Demand for on-site electrochlorination technologies chlorine generation (CECHLO®
Slide 20: Energy Transition: Lead Green Hydrogen Growth
ENERGY TRANSITION Lead the mid-long-term growth of Green Hydrogen Market Evolution Strategic Guidance • 85-119 GW electrolyzer capacity by 2030 • Technology: focus on performance, costs, and • AWE preferred large-scale projects, 80% share in sustainability 2030 • Grow in partnerships with leading in
Slide 21: Energy Transition Pipeline at 31 March 2024
ENERGY TRANSITION PIPELINE@31 March 2024 Tra n s fo r mi n g o u r fa st g row i n g 6 4 G W p i p e l i n e i n b a c k l o g BACKLOG ~1.9 GW ~182 €M ~2.4 GW ~224 €M HOT DEALS1 30% • ELECTRODES Capacity Reservations already announced by nucera • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSU
Slide 22: Electrolyzer Dragonfly
E L E C T R O LY Z E R D R A G O N F LY ® Our small-scale, containerized Proprietary system The innovative H2 generation system by De Nora • Reduced footprint • High efficiency (electrodes, current density) • Ready to operate: plug-n-play system Sizes: 1MW – 7.5MW A versatile solution for different
Slide 23: Our Position at the Core of the Green H2 Value Chain
O U R P O S I T I O N G AT T H E C O R E O F G R E E N H 2 VA L U E C H A I N Technologies providers EPC Contractors Off-takers Electrodes Electrolyzers Plants PRIMARY SCOPE PARTNERS OF Cell BOP construction OF SUPPLY CHOICE Electrodes and cells Joint Venture De Nora thyssenkrupp nucera Producer man
Slide 24: Italian Gigafactory Project
I TA L I A N G I G A FA C T O R Y P R O J E C T: S H A P I N G T H E F U T U R E O F G R E E N H 2 Investing in innovation and manufacturing capacity Greenfield project Products: Italy – Cernusco sul Naviglio R&D and Industrial 25,000 sqm Deployment Construction will start H1 2024 Financing Capacity
Slide 25: Boosting Production Capacity
…WHILE WE BOOST OUR CUTTING EDGE AND DISTINCTIVE PRODUCTION C A PA C I T Y Focus on readiness and flexibility to market trends Okayama -Expansion AMS EMEIA ASIA ▪ Automation and • Strengthen • Synergic plan of • New production line inaugurated technology upgrades. manufacturing set-up expansion for
Slide 26: Agenda
AGENDA De Nora in a Nutshell GPS – Growth Profitability and Sustainability Q1 2024 Results Investment Case 26 © 2024 De Nora
Slide 27: Q1 Key Results
Q 1 2 0 2 4 K E Y R E S U LT S Robust profitability and Backlog growth to win in a challenging scenario REVENUES EBITDA ADJUSTED NET RESULT €189.1m €35.9m €18.0m 19.0% Ebitda Adj margin 9.5% on revenues €216.9m Q1 2023 +22.8% +180 bps ENERGY TRANSITION BACKLOG NET CASH POSITION €26.6m €661 m €9.4m R
Slide 28: Electrode Technologies Business
ELECTRODE TECHNOLOGIES BUSINESS Strong profitability despite soft volumes, growth to recover in H2’24 Revenues reflect the production schedule in Chlor-alkali, expected to accelerate from Q2. Electronics performances still weak, expected to recover in the second half Strong 26.9% Ebitda Adj. margin
Slide 29: Water Technologies Business
WAT E R T E C H N O L O G I E S B U S I N E S S Increased orders pave the way for growth Backlog €m 148.7 138.8 +7.1% • New Orders ~€80m, growing YoY both in WTS and Pools ▪ +4% WTS ▪ +16% Pools €m Dec 23 Mar 24 Q1’24 WTS Orders €60m 43% • WTS1, positive momentum 57% Municipal Industrial continues •
Slide 30: Water Technologies Systems: Flagship New Project Awarded
WAT E R T E C H N O L O G I E S SY S T E M S Our Flagship New Project Awarded in Q1 2024 O.B. Curtis Water Treatment Plant • Destination: Jackson, Mississipi • Capacity : 190,000 m3 Drinkable Water per Day • Population: 180.000+ • De Nora’s Technologies: 2 ClorTec 2400 –C Systems, to produce on-site
Slide 31: Energy Transition Business
ENERGY TRANSITION BUSINESS Investing in the future Growth MW1 Delivered 300 300 330 330 MW delivered in Q1’24, 200 200 the highest level ever. €26 m revenues in line with Q1’23. Project execution Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 follows customers planning Backlog €m 181.0 168.0 182.3 Solid Ba
Slide 32: Energy Transition – Our Green H2 Projects
Q 1 2 0 2 4 E N E R G Y T R A N S I T I O N - O U R G R E E N H 2P R O J E C T S Main Projects in Backlog Some projects in our pipeline Capacity Reservations, Basic Eng, Preferred Supplier and Contracts signed by our jv NEOM, Saudi Arabia, «Next Company» high Largest H2 Project Globally multi-hundre
Slide 33: Q1 2024 Revenues
Q1 2024 REVENUES Revenues expected to accelerate in H2’24 KEY HIGHLIGHTS (€m) Revenue By Geography ELECTRODE TECHNOLOGIES 216.9 • Projects scheduling in chlor-alkali and Americas EMEIA Electronics normalization impacted results 194.8 189.1 30% 37% • Revenues expected to recover from Q2’24, +0% thank
Slide 34: Q1 2024 Backlog
Q1 2024 BACKLOG W a t e r Te c h n o l o g i e s a n d E n e r g y Tr a n s i t i o n o r d e r s b o o s t e d t h e b a c k l o g +8.0% 661 Backlog KEY HIGHLIGHTS 612 by Year of Deployment ELECTRODE TECHNOLOGIES 2027+ • Project execution partially 12% compensated by orders mainly in 2026 ASIA and
Slide 35: Q1 2024 EBITDA Adjusted
Q1 2024 EBITDA ADJUSTED Profitability in line with guidance, supported by core businesses EBITDA Adj. Margin % Adj. EBITDA KEY HIGHLIGHTS Total 21.5% 19.0% ELECTRODE TECHNOLOGIES Energy Transition 20.0% -1.8% • Strong and improved profitability (~+100bps), 14.7% despite revenue trend, mainly support
Slide 36: Main Q1 2024 ESG Achievements
MAIN Q1 2024 ESG ACHIEVEMENTS Executing our Sustainability Plan, underpinned by a solid governance GREEN CLIMATE ACTION & CIRCULAR PEOPLE & LOCAL GOVERNANCE ETHICS AND INNOVATION ECONOMY COMMUNITES COMPLIANCE • Circular Design Guidance • 3.1 GWh PV plants connected, in our • Supply Chain Policy Adop
Slide 37: Agenda
AGENDA De Nora in a Nutshell GPS – Growth Profitability and Sustainability Q1 2024 Results Investment Case 37 © 2024 De Nora
Slide 38: De Nora Investment Case
DE NORA INVESTMENT CASE Leading innovative technologies to enable a Sustainable Future Undisputed Global Leader, producing High performing Electrodes and Water Treatment Solutions Global leader in Green Hydrogen Market Best - in - Class Proprietary and Sustainable Technologies, 100 years R&D- activi
Slide 39: Additional Materials
Additional Materials © 2024 De Nora
Slide 40: Income Statements
I N C O M E S TAT E M E N T S (€m) Q1 2024 Q1 2023 Revenue 189.1 216.9 YoY Growth (%) (12.8%) 8.4 % Change in inventory of finished goods and work in progress 2.7 16.8 Other income 1.3 1.4 Costs for raw materials, consumables, supplies and goods (75.4) (107.3) Personnel expenses (37.8) (36.2) Costs
Slide 41: Quarterly Revenues and Adj. EBITDA by Division
Q U A R T E R LY R E V E N U E S 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 Q4 ‘23 Q1 ‘24 REVENUES 200.1 210.4 206.1 236.2 216.9 203.5 209.4 226.7 189.1 Electrode Technologies 109.5 118.5 123.4 122.0 118.9 112.8 121.0 111.5 92.7 Energy Transition 4.
Slide 42: 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 2024 Sales 216.9 189.1 EBITDA 46.5 35.4 Margin (%) 21.4% 18.7% Terminations costs (labor + legal expenses) 0.12 0.42 Costs relative to M&A, integration, and company reorganization - 0.05 Costs relative to startup of De Nora Tech
Slide 43: Balance Sheet
BALANCE SHEET (€m) Q1 2024 FY 2023 Intangible assets 115.7 115.8 Property, plant and equipment 260.3 254.3 Equity-accounted investees 231.5 231.5 Fixed asset 607.5 601.6 Inventories 271.8 257.1 Contract work in progress, net of advances from customers 29.6 31.7 Trade receivables 164.7 141.9 Trade pa
Slide 44: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) Q1 2024 Q1 2023 EBITDA 35,435 46,491 Losses on the sale of property, plant and equipment and intangible assets (1) 172 Other non-monetary items (407) 35 Cash flows generated by operating activities before changes in net working capital 35,027 46,698 Change in inv
Slide 45: Q1 2024 Results: From EBITDA to Net Income
Q 1 2 0 2 4 R E S U LT S : F R O M E B I T D A TO N E T I N C O M E Lower Financial expenses due to about half senior facility 35.4 repayment in Q2 2023 27.5 18.0 Q1 2024 EBITDA DEP.AMORT & EBIT NET FINANCIALS TAXES NET INCOME PROVISIONS 46.5 39.7 25.0 Q1 2023 EBITDA DEP.AMORT & EBIT NET FINANCIALS
Slide 46: Q1 2024 Results: Net Working Capital Evolution
Q 1 2 0 2 4 R E S U LT S Net Working Capital Evolution NWC % Sales 38.0% 30.9% 37.7% 330.2 312.0 KEY HIGHLIGHTS 264.5 264.6 NWC incidence on revenues was in line with Q1’23, and increased vs Dec.2023 mainly due: • To seasonality effects in trade payable and receivables (€m) Inventories 293.8 257.1 2
Slide 47: Positive Net Financial Position at 31 March 2024
POSITIVE NET FINANCIAL POSITION @ 31 MARCH 2024 (€’m) -€23m Trade Receivable -€12m Trade Payable -€15m Inventories -€2.3m other €10.1 m in Q1 2023 -12.8 -1.3 NET CASH EBITDA Δ NWC CAPEX TAXES FINANCIALS BUYBACK NET CASH DEC.2023 Q1241 PAID & OTHERS MAR.2024 47 1 Ebitda Reported © 2024 De Nora
Slide 48: FY 2023 Growing Revenues
FY 2023 GROWING REVENUES… …despite a challenging scenario, +4% at constant forex KEY HIGHLIGHTS (€m) Revenue By Geography ELECTRODE TECHNOLOGIES +4.0% YoY +0.4% YoY • +2.4% YoY at constant fx, mainly thanks to Americas EMEIA Chlor-Alkali 852.8 886.5 856.4 30% 36% • Electronics impacted by market +14
Slide 49: FY 2023 EBITDA Adjusted
FY 2023 EBITDA ADJUSTED S o l i d p r o f i t a b i l i t y, e x c e e d i n g t h e G u i d a n c e EBITDA Adj. Margin % Adj. EBITDA KEY HIGHLIGHTS Total 22.4% 20.0% ELECTRODE TECHNOLOGIES Energy Transition 5.6% 11.8% • Solid profitability despite challenging scenario Water Tech. 19.5% 14.3% • Chan
Slide 50: ESG Main Targets
E S G M A I N TA R G E T S Quantitative targets to accelerate our ESG journey Download the ESG Plan 2030 Pillars Key ESG Plan Targets (baseline 2022) GREEN INNOVATION • Circular Design guidance in R&D processes, Product Scorecard (2024) • 100% new products assessed with scorecard in 2025, all produc
Slide 51: IR Contacts
IR CONTACTS ph: +39 02 2129 2124 ir@denora.com Investor Relations | Overview | De Nora © 2024 De Nora