Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — De Nora — H1 2023 Earnings Presentation
30 slides from Industrie De Nora Spa's earnings presentation, Jul 31, 2023
Slide 1: Paving the way to a sustainable growth – H1 2023 Financial Results
Paving the way to a sustainable growth H1 2023 Financial Results 31st July 2023 © 2023 De Nora
Slide 2: Agenda
Agenda Speakers: Paolo Dellachà - CEO Massimiliano Moi - CFO Chiara Locati – IR & ESG Manager H1 2023 BUSINESS H1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 3: H1 2023 Achievements
H1 2023 ACHIEVEMENTS Strong profitability confirmed, building up for sustainable growth Revenues growth (+2.4%) Successful thyssenkrupp despite some projects 8 nucera’s IPO,.confirmed the phasing in Q2 and strength of our partnership headwinds in some sectors Growth in the Energy Production Footprin
Slide 4: Main results: sounding profitability underpinning sustainable growth
H 1 2 0 2 3 M A I N R E S U LT S Sounding profitability underpinning sustainable growth REVENUES INCREASE SOUNDING CONFIRMED ENERGY PROFITABILITY TRANSITION’S GROWTH €420.4m €86.1m €47.3m Revenues EBITDA Adjusted (€102.3m in H1 Revenue, ~7x H1’22 2022) +2.4% vs H1 2022 20.5% Ebitda Adj margin 12.8%
Slide 5: Agenda: H1 2023 Highlights
Agenda Paving the way to a sustainable growth H1 2023 BUSINESS H1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 6: H1 2023 Electrode Technologies Business
H1 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, r o b u s t b a c k l o g Electrode Technologies New Projects for future growth OxyChem project awarded by our partner thyssenkrupp nucera Texas (US), Chlor – Alkali 55%1 Expected completion by 2026
Slide 7: H1 2023 Water Technologies Business
H 1 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, P o o l s i m p a c t e d b y d e s t o c k i n g t a i l s Water Technologies Water Technologies Systems (WTS) on-going projects (2 examples) Tubli-STP Expansion Phase 4 End User: State of Bahrain One o
Slide 8: H1 2023 Energy Transition
H1 2023 ENERGY TRANSITION Building upon our leadership to play a key role in decarbonization Energy Transition Backlog 2.0 GW - € 168 m (@30 Jun ‘23) NEOM, Saudi Arabia, Largest H2 Project Globally part of > 2 GW tot project - H2 to Green Ammonia Camacari Complex, 1° industrial-scale green H2 Site i
Slide 9: Energy Transition Pipeline
ENERGY TRANSITION PIPELINE Transfo rmi ng o ur co ncrete pi pel ine i n f uture back l o g BACKLOG ~2.0 GW ~168 m€ ~3.0 GW o/w ~ 60% ~287 m€ HOT DEALS 1 • ELECTRODES Secured Orders (700+ MW), MoUs, Capacity Reservations • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSUED PROJECTS2 ~7.0 GW ~660
Slide 10: 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 H1 2023 Ongoing as planned to support sustainable future growth Germany Japan (Okayama) Expansion of existing manufacturing capacity Expansion of the existing US to enhance Energy Transition productivity manufacturing plant. Increase of existing pl
Slide 11: ESG – Accelerating our journey
E S G – A C C E L E R AT I N G O U R J O U R N E Y SUSTAINABILITY IS OUR BUSINESS Improving our impact, ongoing initiatives Our offerings are aligned with the UN Sustainable Solar Renewable Energy Plan- cumulated GWh installed Development Goals 3.3 GWh solar renewable energy to be installed by 2022
Slide 12: Agenda: Results Review
Agenda Paving the way to a sustainable growth H1 2023 BUSINESS H1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 13: H1 2023 Revenue
H1 2023 REVENUE Revenue growth despite some projects scheduling KEY HIGHLIGHTS ELECTRODE TECHNOLOGIES (€m) 2.4% YoY Growth Revenue By Geography • Growth driven by volume increase mainly in Chlor-alkali, despite some project scheduling in Q2 +6.9x YoY • Softer performance in Electronics and Electrowi
Slide 14: H1 2023 Backlog
H1 2023 BACKLOG S o l i d b a c k l o g u n d e r p i n n e d b y n e w o r d e r s i n E l e c t r o d e Te c h n o l o g i e s thyseenkrupp nucera’s Secured Orders in the Energy Transitions BU KEY HIGHLIGHTS H1 2023 Backlog by ELECTRODE TECHNOLOGIES (€m) Year of Deployment • Backlog increased vs Q
Slide 15: H1 Operating Costs
H 1 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)* As % COGS incidence increase reflects of 61.9% 65.2% 11.8% 12.9% 1.4% 1.6% changes in product mix Sales G&A and Corporate costs slightly increased
Slide 16: H1 2023 EBITDA Adjusted
H1 2023 EBITDA ADJUSTED S o l i d P r o f i t a b i l i t 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 24.9% 20.5% • Solid profitability in line with Energy Transition n.m. 12.8% guidance • Changes vs. H1 2022 reflec
Slide 17: H1 2023 Results: From EBITDA to Net Result
H 1 2 0 2 3 R E S U LT S : F R O M E B I T D A TO N E T R E S U LT KEY HIGHLIGHTS The EBIT trend reflects H1 • the EBITDA performance, • slight increase in Dep&Amort 2023 following investments Changes in Net Financials reflect • H1 2022 net positive differences in exchange rates • Higher financial c
Slide 18: H1 2023 Results: Net Working Capital Evolution
H 1 2 0 2 3 R E S U LT S Net Working Capital Evolution NWC % Sales* 41.8% 32.9% 38.0% 35.6% KEY HIGHLIGHTS (€m) NWC was €307.4m with a lower incidence on revenues vs. Mar 2023, the main drivers are: • Improvement in Trade Receivables (DSO 63) • Increase in Advance Payments from clients related to ne
Slide 19: H1 2023 Net Financial Position
H1 2023 Net Financial Position 1 Ebitda Reported 19 © 2023 De Nora
Slide 20: 2023 Guidance
2023 GUIDANCE Confirmed solid profitability €900- 950m CONSOLIDATED REVENUES 2023E 130-150 REVENUES: In the low part €175-185m of the range EBITDA 2023E Ebitda Margin 18%-19% ENERGY TRANSITION €130-150m PROFITABILITY REVENUES 2023E on Track EBITDA Margin Low Double Digit 20 © 2023 De Nora
Slide 21: Agenda: Final Remarks
Agenda Paving the way to a sustainable growth H1 2023 BUSINESS H1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 22: Final Remarks
FINAL REMARKS • Our growth path continues despite a challenging macroeconomic scenario • The Energy Transition business is growing at a rapid pace (7x revenues vs H1 2022) with a sounding positive double-digit profitability • Electrode Technologies business grows at a stable pace with a robust Ebitd
Slide 23: Agenda: Q&A
Agenda Paving the way to a sustainable growth H1 2023 BUSINESS H1 2023 FINAL Q&A MAIN ACHIEVEMENTS HIGHLIGHTS RESULTS REVIEW REMARKS © 2023 De Nora
Slide 24: Q&A Session
Q&A Session © 2023 De Nora
Slide 25: Additional Materials
Additional Materials © 2023 De Nora
Slide 26: Income Statements
I N C O M E S TAT E M E N T S (€m) Q1 2022 Q2 2022 H1 2022 Q1 2023 Q2 2023 H1 2023 Revenue 200.1 210.4 410.5 216.9 203.5 420.4 YoY Growth (%) 79.8 % 47.8 % 61.8 % 8.4 % (3.4%) 2.4 % Change in inventory of finished goods and work in progress 6.8 7.7 14.5 16.8 8.5 25.3 Other income 1.6 0.9 2.5 1.4 2.0
Slide 27: 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 REVENUES 200.1 210.4 206.1 236.2 216.9 203.5 Electrode Technologies 109.5 118.5 123.4 122.0 118.9 112.8 Energy Transition 4.5 2.4 7.2 28.6 26.6 20.7 Water Technologies 86.1 89.5 75.5
Slide 28: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) H1 2022 H1 2023 Sales 410.5 420.4 EBITDA 79.6 84.8 Margin (%) 19.4% 20.2% Terminations costs (labor + legal expenses) 0.3 0.3 Costs relative to IPO process 2.6 0.7 Costs relative to M&A, integration, and company reorganization 0.0 0.1 Cost
Slide 29: Balance Sheet
BALANCE SHEET (€m) H1 2023 FY 2022 Intangible assets 126.4 131.6 Property, plant and equipment 205.1 184.2 Equity-accounted investees 123.5 122.7 Fixed asset 455.0 438.4 Inventories 298.4 295.5 Contract work in progress, net of advances from customers 23.3 16.4 Trade receivables 135.5 123.4 Trade pa
Slide 30: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) H1 2023 H1 2022 EBITDA 84,800 79,599 Losses on the sale of property, plant and equipment and intangible assets 202 155 Other non-monetary items 484 17,784 Cash flows generated by operating activities before changes in net working capital 85,486 97,537 Change in i