Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — 9M 2024 Earnings Presentation
34 slides from Industrie De Nora Spa's earnings presentation, Nov 5, 2024
Slide 1: 9M 2024 Financial Results: Healthy Profitability and Solid Financial Structure
9M 2024 Financial Results: Healthy Profitability and Solid Financial Structure to Invest in Long-Term Growth 1 November 5th, 2024 © 2024 De Nora
Slide 2: 9M 2024 Results: With You Today
9 M 2 0 2 4 R E S U LT S W I T H YO U T O D AY Paolo Dellachà CEO Luca Oglialoro CFO Chiara Locati Head of IR & ESG 2 © 2024 De Nora
Slide 3: Agenda
9 M 2 0 2 4 R E S U LT S AGENDA 9M 2024 Key Achievements and Business Review 9M 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 3 © 2024 De Nora
Slide 4: 9M 2024 Key Highlights
9M 2024 KEY HIGHLIGHTS Results in Line with Guidance, Building Up for Future Growth REVENUES ON THE RIGHT PATH • 9M Revenues (€601m) and EBITDA Adj. (17.8% margin) were in line with TO FULLY RECOVER Guidance, since a soft Q3 was expected, while Q4 is moving at the right pace IMPROVED • €81m Operatin
Slide 5: 9M 2024 Key Results
9 M 2 0 2 4 K E Y R E S U LT S Results in Line with Guidance, Coupled with a Solid Cash Flow Generation REVENUES EBITDA ADJUSTED* NET RESULT €601.2 m €107.3 m €52.5 m €614.7 m @ constant fx 17.8% Ebitda Adj margin 8.7% on revenues 2.8% +180 bps ENERGY TRANSITION BACKLOG NET CASH POSITION €70.2 m Rev
Slide 6: Electrode Technologies Business
ELECTRODE TECHNOLOGIES BUSINESS Revenues Recovery Ongoing, New Orders Expected to Surge Markets • Chlor Alkali: New- built projects expected to pick up. Global contracts equivalent to 5 million tons/y of production are expected to reach FID by 2025 • Electronics: Progressive Recovery Expected in 202
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 Water Positive Momentum Still Present Backlog 153.8 138.8 14.6 15.8 • +10.8% Water Technologies backlog driven by ~€227m new orders which 123.0 139.2 improved YoY both in WTS and in Pools €m FY 2023 9M’24 H1 2024 WTS1 Orders • € 153m 9M’24 new orders,+
Slide 8: Water Technologies Systems: Diversified Projects Across Technologies and Geographies
WAT E R T E C H N O L O G I E S SY S T E M S D i v e r s i f i e d P r o j e c t s A c r o s s Te c h n o l o g i e s a n d G e o g r a p h i e s North Field Expansion Prj. - II Phase Selected Municipal Awards in Q3 2024 CECHLOTM MS System QATAR - Ras Laffan USA – Murfreesboro, TN CHINA- Anhui USA -
Slide 9: Energy Transition Business: 9M 2024 Achievements
ENERGY TRANSITION BUSINESS 9M 2024 ACHIEVEMENTS KEY NUMBERS1 Strategic Partnerships to grow and develop 2.1 GW technologies from 785 MW €88m large to small scale facilities: Green H2 Techs realized 9M’24 new orders in 9M’24, +12% YoY (€26m in 9M 2023) ~2.1 GW 1.5 GW Green H2 Techs realized Backlog @
Slide 10: Dragonfly: Developing a New Market
O N G O I N G D R A G O N F LY P R O J E C T S DRAGONFLY® Technologies Developing a New Market Dragonfly®: Containerized Small- Scale Electrolyzer (1 - 7.5MW) - Designed to minimize TOC1 and LCOH1 - Our proprietary versatile solution for decentralized applications Small Scale Projects ongoing Maffei
Slide 11: HyTecHeat Project: Dragonfly System Delivered
H y Te c h H e a t P R O J E C T : D R A G O N F LY ® S Y S T E M D E L I V E R E D T h e 1 st U s e o f O u r E l e c t r o l y z e r A p p l i e d t o t h e H a r d - t o - A b a t e S e c t o r HyTecHeat Project - Electrolyzer delivered • EU funded project, developed in partnership with several t
Slide 12: Energy Transition Pipeline at Sep. 2024
E N E R G Y T R A N S I T I O N P I P E L I N E @ 3 0 S E P. 2 0 2 4 G r o w i n g 8 8 G W P i p e l i n e , To w a r d s a M i d - Te r m S u s t a i n a b l e G r o w t h BACKLOG ~1.5 GW ~144 €M HOT DEALS1 ~1.3 GW • ELECTRODES ~122.3 €M • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSUED ~20
Slide 13: 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 Readiness and Flexibility to market trend is our approach AMS EMEIA ASIA 2GW Italian Gigafactory • Synergic plan of • Smart and Sustainable Factory ▪ Automation and • Strengthened technology upgrades. manufacturing set-up
Slide 14: Agenda
9 M 2 0 2 4 R E S U LT S AGENDA 9M 2024 Key Achievements and Business Review 9M 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 14 © 2024 De Nora
Slide 15: Q3 Revenues
Q3 REVENUES In Line with Guidance, a Soft Q3 Was Expected Total Revenues Electrode Technologies KEY HIGHLIGHTS (€m / % YoY) (€m / %YoY) -2.6%% -4.1% ELECTRODE TECHNOLOGIES 209.4 211.2 -0.8% -2.9% 204.0 200.9 121.0 120.0 117.5 189.1 112.1 • +4.8% sequentially growth vs. Q2’24, 92.7 confirming the exp
Slide 16: Q3 EBITDA Adjusted
Q3 EBITDA ADJUSTED H e a l t h y p r o f i t a b i l i t y U n d e r p i n n e d b y E l e c t r o d e s Te c h n o l o g i e s a n d P o o l s EBITDA* Adjusted by quarters (€m) KEY HIGHLIGHTS Q3 37.6 ELECTRODE TECHNOLOGIES 36.4 38.9 Electrode 32.0 Technologies • Q3’24 in line with Q2’24, led by the
Slide 17: 9M 2024 Revenues
9M 2024 REVENUES O n t h e R i g h t Pa t h t o a C o m p l e t e R e c o v e r y b y t h e E n d o f t h e Ye a r KEY HIGHLIGHTS REVENUES €m Revenue By Geography ELECTRODE TECHNOLOGIES -2.4% YoY -4.5% YoY Americas; • Recovery ongoing, expected a solid Q4, 629.8 614.7 601.2 30.4% based on project sc
Slide 18: 9M 2024 Backlog
9M 2024 BACKLOG B a c k l o g S w i n g L e d b y E x e c u t i o n , W a t e r Te c h s G r e w D o u b l e - D i g i t Y T D BACKLOG €m KEY HIGHLIGHTS 612.1 630.1 Backlog by Year of Deployment ELECTRODE TECHNOLOGIES 569.7 2027+ • Physiological Backlog Swing 125.0 161.2 15% • New orders incoming in
Slide 19: 9M 2024 EBITDA Adjusted
9M 2024 EBITDA ADJUSTED Healthy 17.8% EBITDA Adj Margin, in Line with the FY guidance KEY HIGHLIGHTS EBITDA* Adjusted (€m) ELECTRODE TECHNOLOGIES 122.0 107.3 • The profitability evolution reflects lower 7.1 volumes, a different revenue mix, and 26.1 optimization costs related to capacity scale- 32.9
Slide 20: 9M 2024 Results: From EBITDA to Net Income
9 M 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 €(6.5)m Net Finance Expenses €(0.4) m Share of loss of jv nucera 106.8 (24.4) 9M 82.4 (6.9) (23.0) 2024 52.5 EBITDA1 DEPRECIATION AND EBIT NET FINANCE TAXES NET INCOME (€m) AMORT. INCOME/EXP €(6.3)m Net Finance Expences 130.5 198.6
Slide 21: Net Financial Position at September 2024
NET FINANCIAL POSITION @ 30 SEPTEMBER 2024 Q3 Solid Operating Cash Flow more than Covered Capex and Dividends H1 Operating 76.6 Cash Flow: €30.1m €81 m Operating Cash Flow generated in 9M (46.5) Q3 Operating Cash Flow: €50.9m 68.2 20.7 (24.7) (3.0) (8.4) 30.2 29.7 (20.6) (0.5) 0.1 (24.4) 2.4 14.2 (1
Slide 22: 2024 Guidance - Confirmed
2024 GUIDANCE - CONFIRMED Low Single-Digit Growth, coupled with continued healthy Profitability REVENUES ADJ. EBITDA MARGIN LOW SINGLE-DIGIT GROWTH ~17% Electrode Technologies Broadly in line with 2023 Including Italian Gigafactory Development costs Water Technologies Low Single-Digit Growth Energy
Slide 23: Agenda
9 M 2 0 2 4 R E S U LT S AGENDA 9M 2024 Key Achievements and Business Review 9M 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 23 © 2024 De Nora
Slide 24: Main 9M 2024 ESG Achievements
MAIN 9M 2024 ESG ACHIEVEMENTS Executing our Sustainability Plan, our journey continues… ITALIAN GIGAFACTORY PEOPLE & LOCAL COMMUNITIES LEADING EXTERNAL RECOGNITION 40,000 m2 area, 25,000 m2 covered by the • Parental Leave Policy finalized and re-issued building • Launched Italian edition for Inclusi
Slide 25: Agenda
9 M 2 0 2 4 R E S U LT S AGENDA 9M 2024 Key Achievements and Business Review 9M 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 25 © 2024 De Nora
Slide 26: Final Remarks: A Solid Business Model for Sustainable Growth
F I N A L R E M A R K S 9 M 2 0 2 4 R E S U LT S A Solid Business Model for Sustainable Growth Q3 Soft revenues were expected, while Q4 is on the right path to achieve a complete recovery in the FY 2024, with Healthy profitability. FY guidance confirmed Chlor Alkali market: New-built projects are ex
Slide 27: Q&A
Q&A 27 © 2024 De Nora
Slide 28: Additional Materials
Additional Materials © 2024 2023 De Nora
Slide 29: Income Statements
I N C O M E S TAT E M E N T S (€m) Q1 2023 Q2 2023 H1 2023 Q3 2023 9M 2023 Q1 2024 Q2 2024 H1 2024 Q3 2024 9M 2024 Revenue 216.9 203.5 420.4 209.4 629.8 189.1 211.2 400.3 200.9 601.2 YoY Growth (%) 8.6% -4.8% 2.4% 1.6% 2.1% -12.8% 3.8% -4.8% -4.1% -4.5% Royalties and commissions (2.2) (2.7) (4.9) (2
Slide 30: 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 Q1 ‘24 vs Q2 ‘24 vs Q3 ‘24 vs (€m) Q1 ‘23 Q2 ‘23 Q3 ‘23 Q1 ‘24 Q2 ‘24 Q3 ‘24 Q1 ‘23 Q2 ‘23 Q3 ‘23 REVENUES 216.9 203.5 209.4 189.1 211.2 200.9 -12.8% 3.8% -4.1% Electrode Technologies 118.9 112.8 121.0 92.7 112.1 117.5 -2
Slide 31: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) 9M 2023 9M 2024 Sales 629.8 601.2 EBITDA 119.6 106.8 Margin (%) 19.0% 17.8% Terminations costs (labor + legal expenses) 0.9 0.8 Costs relative to IPO process 0.7 - Costs relative to M&A, integration, and company reorganization 0.2 0.2 Mari
Slide 32: Balance Sheet
BALANCE SHEET (€m) 9M 2024 FY 2023 Intangible assets 110.8 115.8 Property, plant and equipment 275.6 254.3 Equity-accounted investees 230.6 231.5 Fixed asset 616.9 601.6 Inventories 268.8 257.1 Contract work in progress, net of advances from customers 26.4 31.7 Trade receivables 150.4 141.9 Trade pa
Slide 33: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) 9M 2024 9M 2023 EBITDA 107 120 Losses on the sale of property, plant and equipment and intangible assets (6) 0 Other non-monetary items (4) 3 Cash flows generated by operating activities before changes in net working capital 97 123 Change in inventory (14) 3 Chan
Slide 34: 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 ir@denora.com Nov. 12 Carbonomics Conference, London – Goldman Sachs Investor Relations | Overview | De Nora Nov. 26 Sustainability Day, Milano – De Nora ph: +39 02 2129 2124 Dec. 3 Future of E