Innovatec Spa · MIL:INC
Innovatec Spa — 3° Next Gems Conference 2022
26 slides from Innovatec Spa's conference presentation, Oct 18, 2022
Slide 1: Innovatec S.p.A. Company Presentation 1H22
INNOVATEC S.p.A. Company Presentation 1H22 3° NEXT GEMS CONFERENCE 2022 TOWARDS A CLEANER FUTURE, TOGETHER INNOVATEC GROUP 18 October 2022
Slide 2: Today's Speakers
Raffaele Vanni Elio Catania Roberto Maggio Federico Malgarini Head of Investor Chairman CEO Head of Financial Planning Relations TODAY’S SPEAKERS 2
Slide 3: Agenda: Industry and Innovatec Overview
INNOVATEC S.p.A. Company Presentation 1H22 3° NEXT GEMS CONFERENCE 2022 ü INDUSTRY AND INNOVATEC OVERVIEW § BP 2022-24 AND 1H22 OVERVIEW § 1H22 ACHIEVEMENTS AND FINANCIAL RESULTS § OUTLOOK § INNOVATEC STOCK & IR COMMITMENTS
Slide 4: Innovatec Group
INNOVATEC GROUP WHO WE ARE CLEANTECH INDUSTRY STRENGTHENING THE GROUP ENVIRONMENT & CIRCULAR ECONOMY EE & RENEWABLES ASSET BASE THROUGH M&A Collection MAINTAINING A SINGLE, Energy efficiency EPC TRADITIONAL Selection COMPANY WIDE INTEGRATED B2B PV plants STRATEGY ENVIRONMENTAL SERVICES Recovery of M
Slide 5: EU Energy Transition Targets
EU ENERGY TRANSITION TARGETS LANDFILL WASTE DISPOSAL TARGET TARGETED EMISSIONS REDUCTION* RES INSTALLED CAPACITY Current Target New 2030 Target Target 2050 20% 116 GW -23% -55% Net zero emissions 10% 55 GW GtCO 2 20 20 2035 2020 2030 RECYCLED WASTE ELECTRICITY GENERATION FROM RES 50% 60% 38% 70% 20
Slide 6: We Are in an Attractive Business
EU INVESTMENTS European at least €1 trillion of sustainable Green Deal investments over the next 10 years ITALIAN GOVERNMENT INVESTMENTS IT Recovery €60 billion for the Italian Green Plan revolution and ecological transition 4 ACCESSIBLE MARKETS FOR INNOVATEC: SUPERBONUS 110% WE ARE IN AN ATTRACTIVE
Slide 7: A New BU: Photovoltaic
AN OPPORTUNITY: PV A NEW BU: PHOTOVOLTAIC In order to reach the EU's MW decarbonisation goals by 2050, the 350000 GSE expects around 330 GW of photovoltaics to be installed in Italy, 300000 producing 400 TWh of photovoltaic energy per year. 250000 200000 150000 €30bn market in the next 8 100000 year
Slide 8: Agenda: BP 2022-24 and 1H22 Overview
INNOVATEC S.p.A. Company Presentation 1H22 3° NEXT GEMS CONFERENCE 2022 § INDUSTRY AND INNOVATEC OVERVIEW ü BP 2022-24 AND 1H22 OVERVIEW § 1H22 ACHIEVEMENTS AND FINANCIAL RESULTS § OUTLOOK § INNOVATEC STOCK & IR COMMITMENTS
Slide 9: BP 22-24: Investments for Growth
REVENUES (€M) +70% 405 BP 22-24: INVESTMENTS FOR GROWTH 238 2024 TARGETS vs 2021 2021PF 2024 REVENUES UP TO €405M (+€167M) EBITDA & EBIT (€M) 14% 14% 55.3 9% 38.3 32.9 5% EBITDA : €55,3M (+€22M) 10.7 EBIT : €38.3M (+€28M) 2021 PF 2024 EBITDA EBIT EBITDA Margin EBIT Margin CAPEX M&A: €59M Capex M&A a
Slide 10: 1H22 Strong Performance in All Key Indicators
1H22 STRONG PERFORMANCE IN ALL KEY INDICATORS Execution of the growth strategy in line with the BP22-24 trends Prompt reaction to new scenarios REVENUES €163M (+55%) Timely M&A deals Asset based consolidation EBITDA €22.4M (+47%) Business verticalization continues EBIT €14.1M (+174%) Significant str
Slide 11: ESG Target Achieved in 2021
SUSTAINABILITY COMMITTEE SET UP IN 2021 + 9 GWH OF ENERGY (100% RENEWABLE) PRODUCED BY PV AND BIOGAS PLANTS FED INTO THE NATIONAL GRID - 15% REDUCTION OF TOTAL EMISSIONS vs 2020 (-28% vs 2019) ESG TARGET ACHIEVED 48% IN 2021 OF THE FLOWS COMING OUT OF THE PLANTS RE-INTRODUCED INTO THE PRODUCTION CYC
Slide 12: Agenda: 1H22 Achievements and Financial Results
INNOVATEC S.p.A. Company Presentation 3° NEXT GEMS CONFERENCE 2022 § INDUSTRY AND INNOVATEC OVERVIEW § BP 2022-24 AND 1H22 OVERVIEW ü 1H22 ACHIEVEMENTS AND FINANCIAL RESULTS § OUTLOOK § INNOVATEC STOCK & IR COMMITMENTS
Slide 13: 2022 Company Achievements
2022 COMPANY ACHIEVEMENTS 1H22 Rev: EBIT%: €160 M EBITDA: €22.4 M 9% FRISBI ENERGY RESELLING NEW PV 30% Business unit ACQUISITION ‘24 €100m Target STRENGTHENING SALES NETWORK. 140 PARTNERS 29.58% INTEGRATION ACQUISITION €61M ECOBONUS 110% EE RENEWABLES REVENUES OFFERS EQUALLING FY21 RAEE TREATMENT P
Slide 14: 1H22 at a Glance
EBITDA (€M) EBIT (€M) 1H22 AT A GLANCE 25 22.4 15 14.2 20 +47% 15.1 10 5.1 +174% 15 10 REVENUES (€M) 5 5 0 0 200 1H21PF 1H22 1H21PF 1H22PF 163 150 +55% 105 100 GROUP NET INCOME (€M) NFP (€M) 50 10 40 0 8.5 8 (29.5) 1H21PF 1H22 30 6 +254% 20 4 2.4 (10.0) 10 2 0 0 1H21PF 1H22 2021 1H22 * PF figures in
Slide 15: 1H22 Key Business Highlights
Revenues: 163M€ (+55%) EBITDA: 22.4M€ (+47%) EBITDA%: 14% stable NET PROFIT 1H22 KEY BUSINESS HIGHLIGHTS €8.5M (+254%) Energy Efficiency (“EE”) continues to demonstrate the ability to leverage on national legislation in building a Rev. EBITDA: 10€M contrywide partnerships’ network dedicated to 61 M€
Slide 16: 1H22 Key Figures P&L (1/2)
1H22 KEY FIGURES P&L (1/2) KEY FIGURES €163M Revenues (+55%) ü Solid performance displayed by Energy Efficiency % on % on 1 thanks to (contributing €61M) ü Organic growth in Environmental & Circular business MEuro 1H22 1H21PF Revenues Revenues thanks to volumes and prices (1H22 revenues: €41M Enviro
Slide 17: 1H22 Key Figures P&L 2/2
1H22 KEY FIGURES P&L 2/2 KEY FIGURES €0.3M Net Financial expenses 1 ü Increase Financial income due to Ecobonus 100% tax % on % on credit settings MEuro 1H22 1H21PF Revenues Revenues ü Increase Financial expenses due to increase of financial indebtness EBIT 14,1 5,1 Financial Income 1,2 1% 0,5 0% 1
Slide 18: 1H22 Capex & People
1H22 CAPEX & PEOPLE CAPEX M&A PEOPLE 16 M€ Successful investment in 1H22 in human capital to fuel the EE business in accordance with BP22-24 +64 people [22 organic, +42 acquired through M&A] 324 En Efficiency Env & Circ Economy 75 260 208 54 25 CAPEX 8.7M€ M&A 7.4M€ 2020 249 2021 1H22 183 206 1H22 I
Slide 19: 1H22 NFP Cash Flow
NFP and CASH FLOW 1H22 NFP CASH FLOW NET FINANCIAL POSITION CUMULATED CASH FLOW (€M) Cash; 18 Cash; 25M -10M€ -29.5M€ Inv.; 3 Debt; 38 Debt; -50 INV 3M 2021YE June22 Net Debt up to €29.5M vs. €10M as of Dec21 mainly due to higher Capex and M&A as well as to the lengthening of the time required to se
Slide 20: 1H22 BS
1H22 BS KEY FIGURES €91.3 M FIXED ASSETS 1 During 1H22 the Group deployed its Capex plan by continuing to invest in its environmental MEuro FY20 FY21 1H22 Δ Δ% operations, mainly treatment plants and landfills (€9M). ‘22 acquisitions contributed €10M of Intangible Assets 29,6 42,9 44,5 1,6 4% additi
Slide 21: Agenda: Outlook
INNOVATEC S.p.A. Company Presentation 1H22 3° NEXT GEMS CONFERENCE 2022 § INDUSTRY AND INNOVATEC OVERVIEW § BP 2022-24 AND 1H22 OVERVIEW § 1H22 ACHIEVEMENTS AND FINANCIAL RESULTS ü OUTLOOK § INNOVATEC STOCK & IR COMMITMENTS
Slide 22: 2H22 Focus Areas
ØMonitor HouseVerde ecobonus 110% regulatory and financial evolution ØGeneral climate may reduce the 2H22 FOCUS AREAS production output in some client sector ØPressure on energy costs may boost demand moving forward to seize the next opportunity on renewables and the funding framework of the Italian
Slide 23: Agenda: Innovatec Stock & IR Commitments
INNOVATEC S.p.A. Company Presentation 1H22 3° NEXT GEMS CONFERENCE 2022 § INDUSTRY AND INNOVATEC OVERVIEW § BP 2022-24 AND 1H22 OVERVIEW § ACHIEVEMENTS AND FINANCIAL RESULTS § OUTLOOK ü INNOVATEC STOCK & IR COMMITMENTS
Slide 24: Analyst Coverage
ANALYST COVERAGE INTESA SANPAOLO • Youness N. El Alaoui 3.4 euro BUY • Alberto Francese (last update as of 3 August 2022) MIDCAP – TP ICAP • Filippo Migliorisi 3.0 euro BUY (last update as of 3 August 2022) VALUE TRACK • Valentina Romitelli 2.60 euro in 12m – 3.60 euro in 2y • Marco Greco (last upda
Slide 25: Innovatec Stock
STOCK DATA – INNOVATEC SPA SHAREHOLDERS DATA Listing Market Euronext Growth Milan no. of Ordinary Shares 95.4 (M) ISIN IT0005412298 BIT INC Free Float 55% INNOVATEC STOCK Price per Share 1.82 Major Shareholder (as of 5 Oct. 2022) - € 45% (Colucci Family) Mobile average 50 days Mkt Cap (€M) (@ €1.83
Slide 26: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT, NOR SHALL BE CONSTRUED AS, AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY TO BE USED AT AN INVESTOR PRESENTATION AND IS PROVIDED FOR INFORMATION PURPOSES ONLY. THIS DOCUMENT DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS