Innovatec Spa · MIL:INC
Innovatec Spa — EnVent Winter Conference – Call For Growth 2022
32 slides from Innovatec Spa's conference presentation, Feb 16, 2022
Slide 1: Towards a Cleaner Future, Together
TOWARDS A CLEANER FUTURE, TOGETHER COMPANY PRESENTATION EnVent Winter Conference – Call For Growth MILAN Westin Palace Hotel INNOVATEC GROUP 16 February 2022
Slide 2: Today's Speakers
Raffaele Vanni Elio Catania Roberto Maggio Federico Malgarini Head of Investor Chairman CEO Head of Financial Relations Planning TODAY’S SPEAKERS 2
Slide 3: Company Presentation
COMPANY PRESENTATION INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY 2022-2024 PLAN THE WAY WE WORK
Slide 4: Cleantech Industry
CLEANTECH INDUSTRY Any process, product or service that aims at reducing negative environmental impacts through: Environmental protection activities – recovery, recycling and disposal of materials Sustainable use of resources: water, air and the environment as a whole Significant improvements in ter
Slide 5: Focus on Energy Transition
FOCUS ON ENERGY TRANSITION 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 2 0 2035 20 20 2030 RECYCLED WASTE ELECTRICITY GENERATION FROM RES 50% 60% 38% 70% 2 0
Slide 6: We Are in an Attractive Business
4 ACCESSIBLE MARKETS FOR INNOVATEC: SUPERBONUS 110% WE ARE IN AN ATTRACTIVE 1 Deduction for interventions dedicated to households’ insulation and energy saving €14 bn BUSINESS ENERGY TRANSITION Funding for innovative projects (“Progetti 2 Faro), promotion of innovative power plants, biomethane, Gree
Slide 7: Innovatec Group: Who We Are
INNOVATEC GROUP WHO WE ARE CLEANTECH INDUSTRY INTEGRATION ENVIRONMENT & CIRCULAR ECONOMY INNOVATION & CONSULTANCY SERVICES EE & RENEWABLES Collection Energy efficiency EPC TRADITIONAL Selection B2B PV plants ENVIRONMENTAL SERVICES Recovery of Materials Smart vertical technologies High level advisory
Slide 8: Our Strategy
OUR STRATEGY HOW WE MEAN TO PLAY A ROLE BE A LEADER IN THE CLEANTECH INDUSTRY TO REWRITE THE FUTURE FOR NEXT GENERATIONS A clear strategic path and a serious commitment in our 2022-2024 business plan: Strong Investment Plan to strengthen and deepen our Leveraging our unique footprint in circular Ass
Slide 9: A Key Enabler of Sustainability
70% 55% SUPPLIERS ESG SOCIETY CAPEX ESG SHAREHOLDERS EMPLOYEES 15% 33% Environment 69 A KEY ENABLER OF ESG Social Actions Governance SUSTAINABILITY 52% SUPPLIERS CUSTOMERS ESG – AT THE CORE OF INNOVATEC’S PURPOSE CARBON SUSTAINABILITY FOORPRINT REGULATORS AND PA ACADEMY SUSTAINABILITY IS AT THE HEAR
Slide 10: Company Presentation
COMPANY PRESENTATION INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY 2022-2024 PLAN THE WAY WE WORK
Slide 11: Guidelines for Execution
GUIDELINES FOR EXECUTION Focus on value creation and medium-term return CIRCULAR ECONOMY INNOVATION EE & RENEWABLES Strengthen our asset base Invest in breakthrough technologies Become a leader in our sector Broaden our service proposal Promote technology transfer Facilitate energy trans
Slide 12: Roadmap to 2024 Leadership
ROADMAP TO 2024 LEADERSHIP MAIN DRIVERS INNOVATION & ENVIRONMENT & CIRCULAR ECONOMY CONSULTANCY SERVICES EE & RENEWABLES Enhance traditional treatment facilities HouseVerde (HV) Market share increase STRENGTHEN BECOME A OUR ASSET Expand our customer base LEADER IN Integrate HV social housing
Slide 13: Our Asset Base
A vertically integrated structure, with a presence at every step of the cycle, which ensures cost efficiency and flexibility, underpinned by complementary customer service Area of Operations Sorting & treatment plants (North Italy) Italy 5 OUR ASSET BASE Bio-gas Plants 5 Unmatched presence in Lombar
Slide 14: Company Milestones
COMPANY MILESTONES End Jan 22 Price per share: €2.15 PERFORMANCE Dec-13 FY-21 2022: 15% IPO AIM Italia Cobat Acquisition 1y: 175% Market Cap: €17.6 M Market Cap: €180.0 M 3y: 1.617% 156 MV 50 km 24 GREENHOUSES ARCADE PROJECT ‘14 Rev: €21.0 M ‘21PF Rev: €220.4 M 5y: 691% COGENERATION DISTRICT HEATING
Slide 15: Environment & Circular Economy
ENVIRONMENT & CIRCULAR ECONOMY A vertically integrated structure, with a presence at every step of the cycle, which ensures cost efficiency and flexibility, underpinned by complementary customer service WASTE SERVICE CLIENTS ACTIVITIES CIRCULAR ECONOMY SERVICES COLLECTION / SORTING & DISPOSAL RECYCL
Slide 16: EE – B2C
EE – B2C CLIENT GENERAL CONTRACTOR Innovatec Power has already signed agreements with banks for credit assignment END OF WORK AND Zero-cost EE building/house renovations or DISCOUNT INVOICE securing with anti-seismic renovations benefitting from the Italian incentives “Superbonus” QUOTE / CONTRACT
Slide 17: EE – B2B
EE – B2B Milan Trieste Commercial and “AS IS” ANALYSIS technical sites Energy consumption analysis of companies Rome that use energy fossil fuels and coal 2021 NORTH CENTER SOUTH ITALY ENERGY EFFICIENCY COMMERCIAL TEAM 8 4 4 16 Design, installation and management PARTNERS 30 28 103 161 Palermo techn
Slide 18: Company Presentation
COMPANY PRESENTATION INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY 2022-2024 PLAN THE WAY WE WORK
Slide 19: Main Growth Drivers
CAGR: 22% REVENUES (€M) ‘21-’24 405 MAIN GROWTH DRIVERS 161 222 Cumulative CAPEX and Recruitments (2022-2024) 2020 PF* 2021 PF * 2024 M&A CAPEX + M&A • 2020 and 2021 Revenues, EBITDA and EBIT (‘21-‘24) CAGR: 22% 12 include COBAT financial results Investing in capex and in vertical (‘21-‘24) CAGR: 58
Slide 20: Double-Digit Growth Targets: Revenues
REVENUES DOUBLE-DIGIT GROWTH TARGETS INCREASED CONTRIBUTION FROM EE AND ADVANCED TREATMENT ACTIVITIES 450 7.6 405.1 400 39.9 12.0 CAGR 22% 80.5 • 14% organic CAGR in collection business through 350 corporate client acquisition • Expansion in lithium batteries and PV modules 300 +42.3 204.1 11.2 15.0
Slide 21: Double-Digit Growth Targets: EBITDA
EBITDA DOUBLE-DIGIT GROWTH TARGETS BALANCED MARGINS EVOLUTION WITH BOTH BUSINESS AREAS CONTRIBUTING EQUALLY TO EBITDA GROWTH 60 3.6 1.4 0.5 55.3 CAGR 22% 7.7 50 • 10% target EBITDA Margin for collection business by the end of the plan through critical mass increase 2.5 2.4 and lead client acquisitio
Slide 22: Increasing Operating Margins
MARGINS INCREASING OPERATING MARGINS EBITDA 13.7% EBIT 4.3% EBITDA 13.7% EBIT 9.5% 2021 2024 22% EBITDA CAGR 40,0 60,0 EE ENVIR. & CIRCULAR 55.3 58% EBIT CAGR ECONOMY BUSINESS 50,0 30.4 EBITDA margin is flat at 30,0 38.3 14% all over the Plan 40,0 32.1 13.1 3.5 0.4 EBIT margin increases
Slide 23: Investments for Growth
EE ENVIR. & CIRCULAR ECONOMY BUSINESS 54 INVESTMENTS FOR GROWTH 260 CAPEX & M&A Innovative facilities dedicated to material 55% 206 Landfills recovery from mattresses and drywall 2021 CAPEX ESG 22M€ 10M€ Maintenance CAGR: 14% 32M€ 47M€ CAPEX Revamping & Innovation 59M€ 117 12M€ M&A of existing Plant
Slide 24: Net Financial Position Evolution
NET CASH NET FINANCIAL POSITION EVOLUTION POSITIVE (NET CASH) FOR €30.9M 2024 YE 31 STRONG CASH GENERATION 45,0 39.7 ALLOWING FOR 40,0 35,0 • €40M Cash on hand 30,0 at the end of 2024 24.9 25,0 • €19M Overall Financial 20,0 Debt reduction 15,0 10,0 5,0 - -4 NFP (€M) 60% CASH ON HAND INCREASE TO €40M
Slide 25: Increased Value for Shareholders
ROE & ROI INCREASED VALUE FOR SHAREHOLDERS 38% 29% ROE ROE ROI 38% ROI 29% 24% The Plan envisages an increasing return for shareholders and on 15% 14% capital invested 12% 2020 PF 2021 PF 2024 2020 PF 2021 PF 2024 STRONG INCREASE OF ROE AND ROI OVER THE PLAN 25
Slide 26: Company Presentation
COMPANY PRESENTATION INNOVATEC GROUP INDUSTRY AND INNOVATEC OVERVIEW BUSINESS MODEL & STRATEGY PLAN 2022-2024 THE WAY WE WORK
Slide 27: The Way We Work
THE WAY WE WORK INNOVATION DIGITAL PROFICIENCY SUSTAINABILITY 3 STRATEGIC PILLARS A NEW BUSINESS ATTITUDE Integration of the Group’s different Result oriented attitude guided by Responsiveness in order to react natures in order to provide a 360° management by objectives swiftly to change in law and
Slide 28: New Governance
NEW GOVERNANCE DECENTRALIZATION COMPETENCES • Shortening decision-making chain • Accelerated development paths for critical roles • New Responsibilities transferred to the Business Units • Key competences mapping (digital, leadership, etc ..) (i.e Business Development, Operational Excellence) • MBO
Slide 29: Innovatec Stock & IR Commitments
COMPANY PRESENTATION INNOVATEC GROUP INNOVATEC STOCK & IR COMMITMENTS
Slide 30: Innovatec Stock
STOCK DATA – INNOVATEC SPA SHAREHOLDERS DATA n. Ord. Shares (M) 95.4 Euronext Growth Listing Market Floating 55% Milan INNOVATEC STOCK Major Shareholder 45% (Colucci Family) ISIN IT0005412298 MKT Cap (€M) (@ €2.41 230 BIT INC as of 9/2/22) Price per Share (9 Feb 22) 2.41 MKT Cap Floating (€M) 126 Mo
Slide 31: 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
Slide 32: Innovatec Group: Embrace Innovation
INNOVATEC GROUP EMBRACE INNOVATION Via Giovanni Bensi, 12/5 Head of Investor Relations: Raffaele Vanni 20152 Milano ITALY Tel. +39 3351261702 Tel +39 02 41 30 51 Email: raffaele.vanni@innovatec.it fax +39 02 41 27 27 33 PEC: innovatecpower@legalmail.it
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