Industrie De Nora Spa · MIL:DNR

Industrie De Nora Spa — De Nora — 9M 2022 Earnings Presentation

18 slides from Industrie De Nora Spa's earnings presentation, Nov 9, 2022

  1. Slide 1: 9M 2022 Consolidated Results

    9M 2022 Consolidated Results 9th November 2022

  2. Slide 2: Key Highlights

    Key Highlights STRONG ORGANIC INCREASING ALL-TIME HIGH SOLID CAPITAL GROWTH PROFITABILITY BACKLOG STRUCTURE €616.6m €145.9m €646.4m ~Cash neutral 9M-22 Revenues 9M-22 Adj. Ebitda As of September-22 €0.6m Net Debt +51.8% vs 9M21 23.7% Margin +18.2% vs FY 2021 (September-22) +c.400bps vs 9M21 Electrod

  3. Slide 3: Best-in-class backlog and evolving pipeline of opportunities provide visibility around solid growth

    Best-in-class backlog and evolving pipeline of opportunities provide visibility around solid growth Scope of Potential Size As of Sept. 2022 Supply Total Value BACKLOG1 ~0.4 GW ~€56m CONTRACTED VOLUMES • Electrodes FROM tk nucera NEWLY ~2.3 GW ~€190m SECURED ORDERS2 • Cell Manufacturing • Electrode

  4. Slide 4: Strong Organic Revenue Growth

    Strong Organic Revenue Growth Key highlights Revenue (€m) Electrode Technologies ◼ Strong Revenue growth of +50.8% (+€118m) driven by volume (–60%) 51.8% Y-o-Y Growth from new projects in both Chlor- alkali (specifically HCI) and Electrowinning business lines and >3X growth Y-o-Y price increase (–40

  5. Slide 5: All-time-high backlog providing revenue visibility

    All-time-high backlog providing revenue visibility Key highlights Backlog as % of next year 46% ◼ All-time high backlog as of 9M 2022 Revenue1 ~190 (€646.4m, +18.2% vs. Full Year 2021 9M 2022A Backlog by results) +4.8% Year of Deployment +12.6% Electrode Technologies ◼ Benefits from multi-year contr

  6. Slide 6: Continuous focus on cost control

    Continuous focus on cost control Key highlights ◼ COGS in 9M 2022, have been in line COGS (€m)* SG&A Costs (€m)* Corporate Costs (€m)* with FY 2021 relatively to sales, confirming De Nora’s ability in passing- through raw materials price increments As % of 62.8% 62.7% 11.2% 9.3% 4.1% 2.9% Sales ◼ SG

  7. Slide 7: Premium Profitability with Increasing Margins

    Premium Profitability with Increasing Margins Key highlights Adj. EBITDA (€m) Electrode Technologies: Total Margin 20.0% 23.7% ◼ Surge in profitability driven by: (i) Water Tech. Margin 13.0% 20.8% revenue growth exploiting operating leverage effect and (ii) Electrode Tech. Margin1 25.0% 27.7% conti

  8. Slide 8: Net working capital evolution

    Net working capital evolution (€m) Key highlights ◼ Net Working Capital has reached €325.9m in 9M 2022 (+€72mn) as a result of Inventory increase due to: • higher stock in Pools mainly following the business normalization • price increase of noble metal (+€8m only related to stock of Iridium and Rut

  9. Slide 9: Net Financial Position Evolution

    Net Financial Position Evolution (€m) Key highlights Net Debt / LTM EBITDA 1.2x ~Cash Neutral ▪ Strong operating performance Adj. offsetting increase in NWC and resulting in a stable net financial position vs FY2021 20.0 ▪ Cash flow from operating activities fully financed NWC, 31.5 capex and divide

  10. Slide 10: 2022 Guidance

    2022 Guidance Heading toward Revenue €880-910m the low part of the range Adj. Well on track €185-195m EBITDA 10 © 2022 De Nora WE ARE DE NORA

  11. Slide 11: Q&A

    Q&A 11 © 2022 De Nora WE ARE DE NORA

  12. Slide 12: Additional Materials

    Additional Materials 12 © 2022 De Nora WE ARE DE NORA

  13. Slide 13: Income Statement

    ADDITIONAL FINANCIALS Income Statement (€m) 9M 2021 9M 2022 Q1 2021 Q1 2022 Q2 2021 Q2 2022 Q3 2021 Q3 2022 Revenue 406.1 616.6 111.3 200.1 142.4 210.4 152.4 206.2 Change in inventory of finished goods and work in progress 40.9 37.9 11.5 6.8 4.0 7.7 25.4 23.4 Other income 2.6 3.3 0.6 1.6 1.3 0.9 0.7

  14. Slide 14: Income Statement | Focus on EBITDA Adjustments

    ADDITIONAL FINANCIALS Income Statement | Focus on EBITDA Adjustments (€m) 9M 2021 9M 2022 Sales 406.1 616.6 EBITDA 77.9 121.9 Margin (%) 19.2% 19.8% Costs relative DND fire 1.5 0.0 Terminations costs (labor + legal expenses) 0.3 0.4 Costs relative to IPO process 3.5 Costs relative to M&A, integratio

  15. Slide 15: Balance Sheet

    ADDITIONAL FINANCIALS Balance Sheet (€m) 2021 9M 2022 Intangible assets 132.8 145.9 Property, plant and equipment 167.6 180.8 Equity-accounted investees 121.8 120.2 Fixed asset 422.2 446.8 Inventories 233.0 326.2 Contract work in progress, net of advances from customers 12.4 25.7 Trade receivables 1

  16. Slide 16: Cash Flow Statement

    ADDITIONAL FINANCIALS Cash Flow Statement (€m) 9M 2022 9M 2021 EBITDA 121.9 77.9 Losses on the sale of property, plant and equipment and intangible assets 0.2 0.8 Other non-monetary items 16.8 0.4 Cash flows generated by operating activities before changes in net working capital 138.9 79.1 Change in

  17. Slide 17: Disclaimer

    Disclaimer The content of this presentation has a merely informative and provisional nature and does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recomm

  18. Slide 18: www.denora.com

    www.denora.com 18 © 2022 De Nora WE ARE DE NORA

De Nora — 9M 2022 Earnings Presentation on 6ix