Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — Q1 2024 Earnings Presentation
31 slides from Industrie De Nora Spa's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Financial Results
Q1 2024 Financial Results Robust Profitability and Backlog growth in a challenging scenario May 8th 2024 © 2024 De Nora
Slide 2: Q1 2024 Results: With You Today
Q 1 2 0 2 4 R E S U LT S W I T H YO U T O D AY Paolo Dellachà CEO Massimiliano Moi CFO Chiara Locati Head of IR & ESG 2 © 2024 De Nora
Slide 3: Agenda
Q 1 2 0 2 4 R E S U LT S AGENDA Q1 2024 Key Achievements and Business Review Q1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session Coating process De Nora Deutschland 3 © 2024 De Nora
Slide 4: Q1 2024 Key Highlights
Q1 2024 KEY HIGHLIGHTS We continue to build up for growth and value creation SOLID PROFITABILITY AND BACKLOG • 19% EBIDTA Adj margin supported by Electrode Technologies (26.9%) GROWTH • +8% Backlog vs Dec’ 23, new orders 1.3x quarter’s revenues • €189.1 m Revenues, €195m constant fx, recovery expect
Slide 5: 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 6: 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 performance is still weak, but expected to recover in the second half Strong 26.9% EBITDA Adj. m
Slide 7: 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 ~€55m 43% • WTS1, positive momentum 57% Municipal Industrial continues
Slide 8: Water Technologies Systems: Flagship New Project Awarded in Q1 2024
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 9: 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 quarter ever. €26.6 m revenues in line with Q1’23. Project execution Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 follows customer planning Backlog €m 181.0 168.0 182.3 Solid
Slide 10: Our Green Hydrogen Projects
Q1 2024 ENERGY TRANSITION Our Green Hydrogen Projects Main Projects in Backlog Reservation Capacity in our pipeline (Hot Deals) NEOM, Saudi Arabia, «Next Company» high Largest H2 Project Globally multi-hundred MW Green H2 part of > 2 GW tot project project in North America H2 to Green Ammonia HyTecH
Slide 11: Energy Transition Pipeline @ 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 • ELECTRODES 30% Capacity Reservations already announced by nucera • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSU
Slide 12: Boosting Our Distinctive Production Capacity
B O O S T I N G O U R D I S T I N C T I V E P R O D U C T I O N C A PAC I T Y Focus on readiness and flexibility to market trends Okayama -Expansion AMS EMEIA ASIA ▪ Automation and • Strengthen • Synergic plan of • Site expansion inaugurated in technology upgrades. manufacturing set-up expansion for
Slide 13: Agenda
Q 1 2 0 2 4 R E S U LT S AGENDA Q1 2024 Key Achievements and Business Review Q1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session Coating process De Nora Deutschland 13 © 2024 De Nora
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: Positive Net Financial Position @ 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 19 1 Ebitda Reported © 2024 De Nora
Slide 20: Agenda
Q 1 2 0 2 4 R E S U LT S AGENDA Q1 2024 Key Achievements and Business Review Q1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session Coating process De Nora Deutschland 20 © 2024 De Nora
Slide 21: 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 • Supply Chain Policy Adopted
Slide 22: Agenda
Q 1 2 0 2 4 R E S U LT S AGENDA Q1 2024 Key Achievements and Business Review Q1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session Coating process De Nora Deutschland 22 © 2024 De Nora
Slide 23: Final Remarks
F I N A L R E M A R K S Q 1 2 0 2 4 R E S U LT S We continue to build up for growth and value creation, despite a demanding scenario Robust profitability, EBITDA adj margin plentifully in line with guidance, supported by Electrodes Technologies Business Positive momentum in Water Technologies Busine
Slide 24: Q&A Session
Q&A Session 24 © 2024 De Nora
Slide 25: Additional Materials
Additional Materials © 2024 2023 De Nora
Slide 26: 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 27: 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 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) 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 29: 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 30: 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 31: Investor Relations – Ready to Engage
I N V E S TO R R E L AT I O N S – R E A DY TO E N G A G E UPCOMING EVENTS FINANCIAL CALENDAR IR CONTACTS May 15 UBS Pan EU Small and Mid- Jul. 30 H1 2024 Results ir@denora.com Investor Relations | Overview | De Nora Cap Conference Nov. 5 9M 2024 Results ph: +39 02 2129 2124 May 21 Unicredit - Italia