Maire S.p.a. · MIL:MAIRE
Maire — Investor Day (March 2024)
60 slides from Maire's investor day presentation, Mar 5, 2024
Slide 1: 2024 Capital Markets Day: Out of the Unbox
5 March 2024 2024 CAPITAL MARKETS DAY OUT OF THE UNBOX
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by MAIRE Tecnimont S.p.A. (the “Company”) solely for use in the presentation of the MAIRE Group (the “Group”) and its financial results. This document does not constitute or form part of any offer or invitation to sell, or any solicitation to purchase any s
Slide 3: Out of the Unbox agenda
OUT OF THE UNBOX 01 THE SUSTAINABLE FUTURE IS HERE F. Di Amato, Chairman and Founder 05 SPEEDING UP THE TECH DEVELOPMENT A. Bernini, Chief Executive Officer A. Batistini, Chief Technology Innovation Officer SVP F. Dignani, Commercial & Procurement Head of Department Conser 02 OFF TO A FLYING START A
Slide 4: The Sustainable Future Is Here
01 THE SUSTAINABLE FUTURE IS HERE F. Di Amato 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 5: Off to a Flying Start
02 OFF TO A FLYING START A. Bernini 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 6: Last year's new strategic approach
LAST YEAR'S NEW STRATEGIC APPROACH… INTEGRATING TECHNOLOGICAL LEADERSHIP WITH EXECUTION EXCELLENCE SUSTAINABLE INTEGRATED TECHNOLOGY E&C SOLUTIONS SOLUTIONS 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX OFF TO A FLYING START 5
Slide 7: Has already borne its fruits in 2023
…HAS ALREADY BORNE ITS FRUITS IN 2023 DELIVERING ON OUR STRATEGIC DRIVERS Seized the growing demand Expanded our in our reference markets technology portfolio +23% Group revenues 10 new +43% STS revenues technologies Navigated the energy Delivered synergies investment supercycle between STS and IE&C
Slide 8: Leading in a global energy scenario
LEADING IN A GLOBAL ENERGY SCENARIO SECULAR TRENDS SUPPORTING OUR VALUE PROPOSITION Energy supercycle • Superior sector knowledge • Ability to deliver mega projects leading in a more complex and faster environment Industry decarbonization and circular economy • Flexible approach • Ability to provide
Slide 9: Stepping up the pace, accelerating results
STEPPING UP THE PACE, ACCELERATING RESULTS ACHIEVING 2028 REVENUES IN 2024 EXPECTED GROUP REVENUES Reaching our targets 4 years earlier vs. strategic plan set in 2023 2024 2025 2026 2027 2028 2023 plan 2024 plan 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX OFF TO A FLYING START 8
Slide 10: Ongoing commitment to human capital
ONGOING COMMITMENT TO HUMAN CAPITAL CONTINUOUSLY INCREASING OUR TECHNICAL COMPETENCES MAIRE EMPLOYEES +24% ~1,300 ~8,000 New engineers in 2023, of which ~800 in India ~6,500 80 Nationalities ~6,800 ~5,500 ~400,000 Training hours in 2023 20221 20231 Technical and commercial Staff 1. As of 31 December
Slide 11: Our strategic priorities
OUR STRATEGIC PRIORITIES TO MAINTAIN OUR UNDISPUTED LEADERSHIP Riding the worldwide …tackling the transition …while speeding energy investment needs leveraging on our up the development of mega trends… process engineering technology platforms capabilities… 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 12: Riding the Energy Investments Wave
03 RIDING THE ENERGY INVESTMENTS WAVE A. Bernini, M. Sicari, S. Taraschi 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 13: A new supercycle in energy investments
A NEW SUPERCYCLE IN ENERGY INVESTMENTS SECURING SUPPLY WHILE INCREASING DECARBONIZATION EFFORTS YEARLY WORLD ENERGY INVESTMENTS - STEPS1 SCENARIO ($tn) 3.4 3.3 Energy investments expected to 3.0 significantly increase globally, transitioning away from fossil fuels 2.3 Decarbonization features are 20
Slide 14: Massive investment plans by energy companies
MASSIVE INVESTMENT PLANS BY ENERGY COMPANIES BRINGING MORE MEGA PROJECTS MAJOR ENERGY PLAYERS CAPEX PLAN AVG PROJECT SIZE BY YEAR OF COMPLETION ($bn)1 2015 - 2022 2023 - 2030 International companies 4.8 e.g., $0.8tn $1.0tn 4.3 Middle East national companies 3.4 e.g., $1.4tn $1.9tn 3.2 Other national
Slide 15: How to successfully navigate the supercycle
HOW TO SUCCESSFULLY NAVIGATE THE SUPERCYCLE KEY FACTORS TO EXECUTE MEGA PROJECTS Increasing Unleashing the value Strengthening our Ensuring healthy and engineering capacity of digital innovation procurement process safe environments 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX RIDING THE ENERGY INVEST
Slide 16: Increasing engineering capacity
INCREASING ENGINEERING CAPACITY ADDING QUALITY TECHNICAL COMPETENCES TO SUPPORT GROWTH ENGINEERING CAPACITY (million man-hours) CURRENT GROUP OPERATING CENTERS +20% ~ 11.5 ~ 10.7 Braunschweig ~ 9.9 Sittard ~ 8.4 Milan 8.0 Rome Abu Dhabi New Delhi 2021 2022 2023 2024 2025 Mumbai …including outsourcin
Slide 17: At the forefront of digital innovation
AT THE FOREFRONT OF DIGITAL INNOVATION BOOSTING PRODUCTIVITY AND QUALITY OF DELIVERY NEW SOLUTIONS FOR INTERNAL PRODUCTIVITY • Microsoft Co-pilotTM enabled users Technical Material Vendors • Gen.AI to improve operations productivity specifications requisition management • Human in the loop approach
Slide 18: Strengthening our procurement process
STRENGTHENING OUR PROCUREMENT PROCESS VALORIZATION OF LOCAL SUPPLY CHAINS Early Securing ESG Local Digital engagement capacity due diligence sourcing transformation Vendors involved in Multisource logistics 70% of total spending 52% of project goods Digital tools to advance during contracts applied
Slide 19: Best-in class for health and safety
BEST-IN CLASS FOR HEALTH AND SAFETY A TOP PRIORITY FOR OUR CONSTRUCTION ACTIVITIES Lost Time Injury Rate 0.063 LTIR1 Total Recovery Injury Rate 0.266 TRIR2 On-site training 2.4m hours LTIR 58% lower than the IOGP3 construction benchmark 1. LTIR five-year rolling average. 2. 2023 TRIR. 3. IOGP: Inter
Slide 20: Hail and Ghasha
HAIL AND GHASHA RECOGNIZING THE VALUE OF OUR EXPERTISE AND DELIVERY SKILLS ONSHORE DEVELOPMENT KEY FIGURES 4.1 270,000 km2 tons plant area of equipment, steel structure and piping Client ADNOC Location UAE Contract Value $8.7bn 25,000 550,000 km m3 World-class track record in delivering gas treatmen
Slide 21: Hail and Ghasha governance
HAIL AND GHASHA GOVERNANCE ENSURING AN EFFECTIVE DELIVERY PROJECT GOVERNANCE AND ORGANIZATION PROJECT PERSONNEL BY OPERATING CENTER (# resources) 400 For EP1 and coordination Full integration with ADNOC team activities MILAN Dedicated directorate ensuring strict control over project progress and exe
Slide 22: Hail and Ghasha fast track approach
HAIL AND GHASHA FAST TRACK APPROACH EFFICIENT PLANNING FOR A TIMELY DELIVERY KEY PROGRESS UPDATE 2023 2024 2025 […] 2028 Today Award Started detailed engineering activities, including geotechnical Advance on 3D Engineering analysis and workshops to streamline model design review design development P
Slide 23: Leading New Energy Transition Trends
04 LEADING NEW ENERGY TRANSITION TRENDS A. Bernini, G. Sale, M. Nafid 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 24: Energy transition trends facing strong growth
ENERGY TRANSITION TRENDS FACING STRONG GROWTH AMMONIA, CLEAN H2, SAF AND RECYCLED PLASTICS PIVOTAL IN DECARBONIZATION Hydrogen and Nitrogen circular carbon Global demand of Green Global demand of Clean H2 ammonia +16% [PJ] 1 +27% [Mt] 2023 2030 2050 2023 2030 2050 Fuels and chemicals Polymers Global
Slide 25: Leveraging our legacy for a sustainable future
LEVERAGING OUR LEGACY FOR A SUSTAINABLE FUTURE MORE THAN ONE CENTURY OF INNOVATION IN CHEMISTRY 2018 2005 1973 1920 Nextchem established as Tecnimont becomes focal point for tech and Montecatini engineering part of MAIRE green chemistry Fauser Montecatini and development division Group ammonia produ
Slide 26: The solution to the decarbonization equation
THE SOLUTION TO THE DECARBONIZATION EQUATION A PARADIGM SHIFT THE TRADITIONAL DEVELOPMENT PATH… …VS. THE NEW INDUSTRIAL CHEMISTRY Sustainability add-ons Complete Efficiency process re-design improvements is needed Industrial system based on conventional energy 1950 […] 2000 […] 2015 2020 2025 2024 C
Slide 27: No single path to net zero exists
NO SINGLE PATH TO NET ZERO EXISTS NEXTCHEM IS EQUIPPED TO PROVIDE FLEXIBLE SOLUTIONS TO CLIENTS FEEDSTOCK PRODUCTS Air Clean energy Ammonia CO2 Fertilizers Water Minerals Natural gas Hydrogen Bio-oils Fuels Regulation Regional Biomass impact differences Chemicals Municipal solid waste Recycled polym
Slide 28: From expectations to reality
FROM EXPECTATIONS TO REALITY DECARBONIZATION PACE IMPACTED BY DIVERGING TRENDS Increasing demand of green ammonia Nitrogen as energy carrier Hydrogen and Green hydrogen growth in the medium-long term, circular carbon Blue Hydrogen more relevant in the transition Fuels and SAF accelerated demand supp
Slide 29: A constantly evolving scenario
A CONSTANTLY EVOLVING SCENARIO… A DEEP DIVE ON AMMONIA AND HYDROGEN AMMONIA EXPECTED CAPACITY (MTPA1, 2030) CLEAN H2 EXPECTED CAPACITY (MTPA1, 2030) +5% +45% 295 311 38 26 Blue H 2 Green H 2 2030 2030 2030 2030 (consensus 2022) (consensus 2023) (consensus 2022) (consensus 2023) Resilient growth for
Slide 30: A unique offering based on process integration
A UNIQUE OFFERING BASED ON PROCESS INTEGRATION PROPRIETARY TECHNOLOGIES ARE OUR BUILDING BLOCKS FEEDSTOCK PRODUCTS Air Ammonia CO2 Fertilizers Water Minerals Natural gas Hydrogen Proprietary Bio-oils tech Fuels Third Third Biomass party party Chemicals tech tech Municipal solid waste Recycled polyme
Slide 31: Speeding Up the Tech Development
05 SPEEDING UP THE TECH DEVELOPMENT A. Bernini, A. Batistini, F. Dignani 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 32: Three routes to accelerate tech development
THREE ROUTES TO ACCELERATE TECH DEVELOPMENT WE CONTINUE TO PUSH BOUNDARIES MAKE TEAM UP BUY Internal strategic R&D Partnerships and Add-on acquisitions of proven and continuous incremental joint development technologies or competences to be innovation agreements scaled-up NX CPO, NX SAF, Clariant, E
Slide 33: A broad portfolio of technologies
A BROAD PORTFOLIO OF TECHNOLOGIES… CURRENT PROPRIETARY BRANDS Hydrogen and Fuels and Nitrogen Polymers circular carbon chemicals STAMI Urea NX Reform NX Circular NX Replast Ultra-low energy urea production Conventional H2 Waste-to platform Mechanical recycling of plastic STAMI Green Ammonia NX CPO3
Slide 34: To be further enriched
…TO BE FURTHER ENRICHED STRATEGIC AREAS FOR FURTHER DEVELOPMENT Hydrogen and Fuels and Nitrogen Polymers circular carbon chemicals Expand nitrogen-derived Strengthen clean H2 Expand into synthetic Expand into products production technologies fuels and e-SAF sustainable monomers Structure specialty D
Slide 35: A complete commercial offering
A COMPLETE COMMERCIAL OFFERING SUPPORTING CLIENTS AT VARIOUS PROJECT STAGES Catalysts2 and Process Feasibility proprietary Life-cycle Our offer License Design Digital studies equipment support Package1 supply3 Assess Value Access Tailored Productivity Accuracy Optimized technical for client rights p
Slide 36: Green Innovation District
GREEN INNOVATION DISTRICT CENTER OF EXCELLENCE FOR INNOVATION AND PILOTS TO BE BUILT IN ROME 3,650 sqm dedicated to laboratories 2,700 sqm dedicated to pilots Up to 10 Group demonstrative pilot plants 200 Professionals employed at full speed Partnerships with Milan, Rome and Salerno universities …an
Slide 37: FY 2023 Results
06 FY 2023 RESULTS F. Fritelli 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 38: 2023 financial highlights
2023 FINANCIAL HIGHLIGHTS A YEAR OF DELIVERY 2023 YoY growth vs. guidance Revenues €4.3bn +23.0% Proposed 2024 dividend: EBITDA €274.4m +31.1% Margin % 6.4% +40bps €64.7m +59% YoY CAPEX €76.6m 3.0x 50% Pay-out ratio vs. 45% paid in 2023 Adjusted Net Cash1 €337.9m +€244.1m 1. Excluding leasing liabil
Slide 39: Consolidated P&L
CONSOLIDATED P&L DOUBLE-DIGIT GROWTH OF ALL THE MAIN KPIs AND INCREASE IN PROFITABILITY REVENUES (€bn) EBITDA (€m) NET INCOME (€m) Revenues increase driven by steady project execution +23.0% +31.1% +43.3% EBITDA growth supported by operating leverage Profitability boosted by increased STS contributi
Slide 40: Sustainable Technology Solutions
SUSTAINABLE TECHNOLOGY SOLUTIONS STEPPING UP THE PACE REVENUES (€m) EBITDA (€m) +43.1% +84.1% Revenues increase driven by a growing demand for technologies, mainly in nitrogen fertilizers and circular solutions 261.8 65.1 Strong profitability, at the 182.9 35.4 top end of the guidance, thanks to pro
Slide 41: Integrated E&C Solutions
INTEGRATED E&C SOLUTIONS PERFORMANCE DRIVEN BY STEADY PROJECT EXECUTION REVENUES (€bn) EBITDA (€m) +21.9% +20.3% Revenues increase driven by continued solid performance of projects in polymers and fuels & chemicals 4.0 209.3 3.3 173.9 Stable profitability underpinned by consistent project progress 2
Slide 42: Net cash position
NET CASH POSITION SUBSTANTIALLY IMPROVED THANKS TO STRONG OPERATING CASH FLOW CASH FLOW BRIDGE (€m, EX-IFRS 16) CAPEX BREAKDOWN (€m) 70.2 IE&CS 33.4 25.6 16.4 30.3 Total €59.0m 44.6 448.2 Gross CAPEX of €76.6m 337.9 60.2 net of €17.6m acquired cash STS 93.8 Adj. Net Operating Taxes Organic Net M&A N
Slide 43: Adjusted net trade working capital
ADJUSTED NET TRADE WORKING CAPITAL WORKING CAPITAL DYNAMIC REFLECTS THE NEW DIMESION OF ENERGY PROJECTS ADJUSTED NET TRADE WORKING CAPITAL (€m) Benefiting from the increased -113.8 size of new awards -379.0 -311.3 61.1 -15.0 Net trade Advances from clients Adjusted net accounts Net WIP Net trade wor
Slide 44: A strong ESG positioning
A STRONG ESG POSITIONING DELIVERING ON ALL SUSTAINABILITY PILLARS OUR 2023 MAIN ESG RESULTS MAIN ESG RATING -11% vs. 2022 -5% vs. 2022 37% sustainable Scope 1 & 2 Scope 3 emissions funding emissions intensity1 (vs. 9% in 2022) (-26% vs. 2018)1 MAIN RATING RATING 64.04/100 22.4/100 Gold B 29 partners
Slide 45: Group order intake and backlog
GROUP ORDER INTAKE AND BACKLOG RECORD HIGH ORDER INTAKE AND BACKLOG DRIVEN BY STRONG MARKET FUNDAMENTALS Sustainable Technology Integrated E&C Solutions Solutions Short cycle: 12 - 18 months Long cycle: 3 - 4 years €15.0bn GROUP BACKLOG €230.4m €14.8bn YE BACKLOG (1.4x YoY Growth) YE BACKLOG (1.8x Y
Slide 46: IE&CS backlog schedule
IE&CS BACKLOG SCHEDULE SOLID STARTING POINT FOR 2024 AND BEYOND IE&CS BACKLOG SCHEDULE 2024 2025 2026+ Total backlog €14.8bn ~35% Strong 2024 visibility 30 - 35% Projects in construction phase in Middle East and Sub-Saharan Africa 30 - 35% Early contribution from engineering and procurement activiti
Slide 47: Commercial pipeline
COMMERCIAL PIPELINE MARKET OPPORTUNITIES WORTH €56.6BN BY MAIN CLUSTER €56.6bn Europe and Caspian Area 14% Nitrogen Americas 15.7 Asia Hydrogen and 14% 3.1 16.7 circular carbon1 Middle East 16.6 37% Fuels and chemicals Africa 4.5 35% Polymers €bn Maire commercial pipeline 31-Dec-23 1.1. Including In
Slide 48: 2024 - 2033 Strategic Plan
07 2024 - 2033 STRATEGIC PLAN A. Bernini 2024 CAPITAL MARKETS DAY: OUT OF THE UNBOX
Slide 49: 2024 guidance, stepping up the pace
2024 GUIDANCE, STEPPING UP THE PACE SOLID GROWTH SUPPORTED BY CURRENT BACKLOG, CAPEX TO ACCELERATE 2023 2024 Revenues €4.3bn €5.7 - 6.1bn STS €262m €340 - 360m IE&CS €4.0bn €5.4 - 5.7bn EBITDA €274m €360 - 405m STS €65m €75 - 90m IE&CS €209m €285 - 315m CAPEX1 €76.6m €140 - 170m STS €16.4m €110 - 12
Slide 50: Group results beyond last year ambitions
GROUP RESULTS BEYOND LAST YEAR AMBITIONS STRONG REVENUE GROWTH AND MARGIN EXPANSION ALONG THE 10Y PLAN REVENUES (€bn) EBITDA (€m) Double-digit CAGR for the first 5 years on revenues and EBITDA +6-7% +11-15% Revenues to exceed €10bn +12-13% at the end of the plan +15-19% 10+ ~1,000 7.5-8.0 5.7-6.1 55
Slide 51: Sustainable Technology Solutions
SUSTAINABLE TECHNOLOGY SOLUTIONS SIGNIFICANT GROWTH DRIVEN BY ENERGY TRANSITION NEEDS AND TECH DEVELOPMENT REVENUES (€m) EBITDA (€m) Accelerated growth driven by a favourable Energy Transition +10-20% +15-25% market outlook Strong revenue increase supported by technology +24-28% +20-25% portfolio ex
Slide 52: Integrated E&C Solutions
INTEGRATED E&C SOLUTIONS FAVORABLE MARKET CYCLE SUPPORTING GROWTH REVENUES (€bn) EBITDA (€m) Grow volumes ambition leveraging the energy +5-7% +6-9% supercycle +11-12% +14-17% Higher margins in the long run thanks to favourable market cycle for EPC ~9 ~600 6.7-7.1 5.4-5.7 400-450 4.0 285-315 209 Exp
Slide 53: €1bn capex in 10 years to sustain growth
€1BN CAPEX IN 10 YEARS TO SUSTAIN GROWTH INVESTMENTS CONCENTRATED IN THE FIRST HALF OF THE PLAN CAPEX1 (€m) €1,000 - 1,200m cumulated 2024-2033 Sustainable Technology • Technologies M&A 600-650 Solutions • Technology validation €500 - 600m • Recurring R&D2 cumulated 2024-2033 Focus next 350-400 • Fi
Slide 54: Met Development, a key enabler for growth
MET DEVELOPMENT, A KEY ENABLER FOR GROWTH SUPPORT AND ACCELERATE FIRST-OF-A-KIND INITIATIVES OF THE GROUP Adoption of STS proprietary technologies Essential €320 - AND 370m1 30+ requirements Involvement of IE&CS in the EPC phase Met Development # Tech validation Minority equity investments of €10 -
Slide 55: Net cash evolution
NET CASH EVOLUTION INCREASING CASH GENERATION AND DIVIDEND PAY-OUT IN SECOND HALF OF THE PLAN ADJUSTED NET CASH (€m) Dividend pay-out assumed to increase from 50% in 2024, to 55% in 2025 and 66% from 2026 onwards Maintained financial solidity and flexibility 1,600+ Self-funded CAPEX ~500 338 Reducti
Slide 56: Anticipated Met Zero plan to carbon neutrality
ANTICIPATED MET ZERO PLAN TO CARBON NEUTRALITY ACHIEVING CARBON NEUTRALITY FOR SCOPE 1 AND 2 ONE YEAR IN ADVANCE SCOPE 1 AND 2 CO2 EMISSIONS (ktCO2) 29 2029 28 29 30 27 25 25 Anticipated target for carbon 23 neutrality (1 year in advance) 20 18 Emission reduction initiatives 2023 Decoupling Energy M
Slide 57: Strengthening human capital growth
STRENGTHENING HUMAN CAPITAL GROWTH EXPANSION OF SKILLSET IN ALL MAIRE OFFICES TO ENSURE DELIVERY MAIRE EMPLOYEES ~1.2x ~1.4x STS hiring focused on process ~11,000 engineering capabilities and R&D, mainly in Rome's Green Innovation District and in ~9,500 Southern Italy (new operating center) ~8,000 M
Slide 58: Delivering value to our shareholders
DELIVERING VALUE TO OUR SHAREHOLDERS +63% +11% TSR from Jan-23 from Jan-24 Total Shareholder Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 Return CMD 2023 CMD 2024 +44% TSR from Mar-23 Note: TSR: Total Shareholder Return (including dividends). CMD: Capital Markets Day. 2023 Capital Markets
Slide 59: The best is yet to come
THE BEST IS YET TO COME Recognized Flexible and Proven execution Foster growth …And Strong financial technological adaptable capability to through accelerating via position and leadership business model deliver continuous selective discipline to in Energy spanning the a significant breakthrough acqu
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