Interpump Group S.p.a. · MIL:IP
Interpump — FY2022 Earnings Presentation
46 slides from Interpump's earnings presentation, Feb 15, 2023
Slide 1: Interpump Group 4Q2022 & FY2022 Financial Results
INTERPUMP GROUP 4Q2022 & FY2022 FINANCIAL RESULTS 15 February 2023
Slide 2: Index
INDEX • KEY HIGHLIGHTS • 2022 FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH • OUTLOOK • ANNEX 1
Slide 3: Key Highlights
KEY HIGHLIGHTS 8 © OO 2022
Slide 4: A Delivering Group
2022 A DELIVERING GROUP ▪ 2022 commitments and delivery ‒ Exceeding € 2 billion of sales: € 2.077m of sales, with almost 14% of organic growth(1) ‒ “Confirming and protecting profitability excellence”: 23.7% of EBITDA margin(2) ‒ “Consolidating and aligning Group sustainability activities and proces
Slide 5: A Delivering Group – 2022 Commitments
2022 A DELIVERING GROUP – 2022 COMMITMENTS ▪ 2022 sales: € 2.077m, up by almost 30% 2022 GROUP SALES EVOLUTION ‒ “Organic growth” the most important driver • Production strength in term of continuity, +29.5% flexibility and ongoing enhancement +11.5% +4.4% € 2.077m +13.6% • Pricing policy € 1.604m ‒
Slide 6: A Delivering Group – 2020-2022 Commitments
2022 A DELIVERING GROUP – 2020-2022 COMMITMENTS ▪ In February 2020 Group released 2020-22 Guidances and due to the following pandemic outbreak in February 2021 confirmed plan targets with one year of postponement ▪ With 2022 Results Group delivered 2020-22 Guidances targets according to the original
Slide 7: A Delivering Group – 2020-2022 Commitments
2022 A DELIVERING GROUP – 2020-2022 COMMITMENTS ▪ Group acquisition strategy milestone reflected in acquired companies ‒ Enhancement Group activity ‒ Entrepreneurial approach ‒ Good financial performance to be levered on ‒ Fair valuation approach ▪ Reggiana Riduttori and White Drive the most importa
Slide 8: A Delivering Group – 2020-2022 Commitments
2022 A DELIVERING GROUP – 2020-2022 COMMITMENTS ▪ White Drive, the biggest acquisition in Interpump history and moreover the one with the most different managerial approach ‒ Integration milestones • Alignment to Group managerial and cultural approach • Group “Operations” best practices sharing and
Slide 9: A Delivering Group – 2020-2022 Commitments
2022 A DELIVERING GROUP – 2020-2022 COMMITMENTS ▪ 2022 EBITDA margin: 23.7% in 2022 2019-2022 EBITDA MARGIN EVOLUTION (% on net sales) − Almost all acquisitions consolidated in the period 2022 achievement: 23.7% had a lower profitability compared to Interpump 2020-22 target: 22% − Group was able to
Slide 10: Financial Results
FINANCIALRESULTS 8 OO 2022
Slide 11: Group – A Delivering Group
2022 GROUP – A DELIVERING GROUP ▪ 2022: +13.6% organic growth and 23.7% of EBITDA margin (1) ‒ Sales: organic growth the most important driver − Profitability: Group best practices stronger than inflationary trend and acquisition impact ‒ Net Profit: +36% compared to 2021(3) ‒ NFP: commitments to gr
Slide 12: Divisions – Benefits of Division Diversification
2022 DIVISIONS – BENEFITS OF «DIVISION» DIVERSIFICATION ▪ 2022: the strength of “division” diversification − Hydraulics: Group growth driver − Water-Jetting: Group profitability excellence ▪ 4Q2022: up by 210bp to 23.9% of EBITDA margin, driven by the best 4Q of history for both division − Hydraulic
Slide 13: Sales – Double Digit Organic Growth Delivered
2022 SALES – DOUBLE DIGIT ORGANIC GROWTH DELIVERED ▪ 2022: 13.6% of organic growth, with a consistent performance all among the year − Production continuity and flexibility to follow customer requests o Continuity: benefits of industrial approach to inventories and CAPEX +20.1% o Flexibility: strong
Slide 14: Sales – Double Digit Organic Growth Delivered
2022 SALES – DOUBLE DIGIT ORGANIC GROWTH DELIVERED 4Q2022 SALES EVOLUTION 2022 SALES EVOLUTION +22.3% +35.9% +20.1% HYDRAULICS +2.9% € 392m +3.8% € 1.541m +1.6% +16.2% +17.8% +15.9% € 1.134m € 322m +9.1% +14.1% WATER-JETTING +10.1% +4.0% € 536m € 470m 0% +4.7% € 140m +4.4% 0% € 128m 13
Slide 15: EBITDA – Profitability Protection Delivered
2022 EBITDA – PROFITABILITY PROTECTION DELIVERED ▪ 2022: 23.7%, the best Group EBITDA margin GROUP EBITDA 2019-2022 EVOLUTION (1) (€ m - % on Net Sales) confirmed for the 2nd year in row 600.0 35.0% 23.7% 23.7% ‒ Focus on Operations and integration capability 23.2% 30.0% 500.0 22.7% 25.0% 400.0 ▪ 4Q
Slide 16: EBITDA – Profitability Protection Delivered
2022 EBITDA – PROFITABILITY PROTECTION DELIVERED ▪ Steady and consistent focus on Operations to promptly adapt to market condition evolution − Pricing policy, both on purchase and selling side − Production continuity and saturation − Efficient management of “not production related” costs − “Protecti
Slide 17: NFP – Commitment to Growth and to Shareholders
2022 NFP – COMMITMENT TO GROWTH AND TO SHAREHOLDERS ▪ NFP was € 542m(1) compared to € 495m of December 2021 NFP EVOLUTION (1) (€ m) − Commitment to growth and to shareholders (32) 9 1 542 (31) ▪ Commitment to growth 495 49 (43) ‒ NWC: strong increase of sales and “industrial approach” to inventory •
Slide 18: NFP – TWD – Commitment to Growth
2022 NFP – TWD – COMMITMENT TO GROWTH ▪ TWD (1) evolution both driver and result of Group TRADE WORKING 2019-2022 EVOLUTION (€ m - % on Net Sales) growth and profitability delivery 50% 39.5% ‒ Inventory supported production continuity and 800 36.6% 36.8% 38.0% pricing policy adjustments implementati
Slide 19: NFP – CAPEX – Commitment to Growth
2022 NFP – CAPEX – COMMITMENT TO GROWTH ▪ CAPEX (1) was € 128m, 6.1% on net sales, GROUP CAPEX 2019-2022 EVOLUTION (1) (€ m - % on net sales) driven by the progression of medium-long term 200 10% production capacity expansion plans 6.7% 6.1% ‒ Factory equipment phase gradually rolling out 5.4% 4.7%
Slide 20: NFP – CAPEX – Commitment to Growth
2022 NFP – CAPEX – COMMITMENT TO GROWTH • Factory upgrading in Turin, Italy • Contribution to the relaunch of an old industrial area • Manufactory and consumption efficiency • Ready for summer 2023 Tubiflex Turin new factory rendering Tubiflex Turin new factory work in progress • Factory expansion i
Slide 21: NFP – Acquisitions – Commitment to Growth
2022 NFP – ACQUISITIONS – COMMITMENT TO GROWTH ▪ Further and consistent steps with Group growth strategy with € 43m of acquitions ▪ Draintech and Eurofluid, 2 bolt-on acquisitions in the Hydraulic division ‒ Draintech: enhancement in the “power transmission” business ‒ Eurofluid: perfect fit with “v
Slide 22: Sustainability Path
2022 SUSTAINABILITY PATH 21
Slide 23: Sustainability Path
2022 SUSTAINABILITY PATH “A falling tree makes more noise than a growing forest” Lao Tzu ▪ “Consolidation and alignment of Group sustainability activities and processes” was one of 2022 focus ▪ Delivery was consistent with natural path of governance activities and Group concrete approach ‒ 2019: app
Slide 24: Sustainability Path − 2022-24 Incentive Plan
2022 SUSTAINABILITY PATH − 2022-24 INCENTIVE PLAN ▪ Group Annual Shareholding meeting approved 2022-24 Incentive Plan ▪ Main objectives pursued by the new Incentive Plan − Confirmation of the already present “involvement and retention management” approach − Introduction of an ESG approach ▪ “Minimum
Slide 25: Sustainability Path − 2023-25 ESG Journey − Highlights
2022 SUSTAINABILITY PATH − 2023-25 ESG JOURNEY − HIGHLIGHTS ▪ Group “2023-2025 ESG journey” − The first project defined and executed at Group entire level ESG ▪ Concrete and precise actions: 20 targets to be delivered − 12 to be delivered in the next two years to built Group ESG foundations ‒ 8 to b
Slide 26: Sustainability Path − 2023-25 ESG Journey − Key Targets
2022 SUSTAINABILITY PATH − 2023-25 ESG JOURNEY − KEY TARGETS SUPPORTED GRI 2023-2027 KEY TARGETS (1) and SDG ▪ Definition of Group “Carbon neutrality” strategy 2023 ▪ Reduction of Group “Carbon intensity”: -30% E 2025 305-1 and 2 302-1 ▪ Increase of renewed electricity consumption: from 3% to 25% 20
Slide 27: Sustainability Path − 2023-25 ESG Journey − Timing
2022 SUSTAINABILITY PATH − 2023-25 ESG JOURNEY − TIMING ANALYSIS AND MEASUREMENT BUILDING GROUP LEADING TO ESG FOUNDATIONS 2030 AND 2050 DECARBONISATION TARGETS 2022 2023 2024 2025 2027 • E.1 - Carbon neutrality strategy • E.2 - Carbon intensity reduction • S.2 - ISO 45001 extension • E.4 - Circular
Slide 28: Outlook
2022 OUTLOOK 27
Slide 29: A Delivering Group – Next Commitments
2023 A DELIVERING GROUP – NEXT COMMITMENTS ▪ 2020-22 results are the best evidences of Group capability to face any possible short term environment and in the meantime consistently pursue long term strategy of growth and profitability excellence ▪ 2023 commitments ‒ Financial commitments: around 5%
Slide 30: A Delivering Group – Past Commitments
2023 A DELIVERING GROUP – PAST COMMITMENTS 2012-2022 GROUP SALES EVOLUTION 2012-2022 GROUP NET PROFIT EVOLUTION (2) € 2.078m € 266m C.A.G.R.: +14.7% C.A.G.R.: +17.7% C.A.G.R. organic: +8.5% € 472m € 52m 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 31: Annex
ANNEX • DISCLAIMER • 2022 ADDITIONAL DATA • GROUP OVERVIEW 30
Slide 32: Annex Disclaimer
ANNEX DISCLAIMER 31
Slide 33: Annex Disclaimer – Forward Looking Statements
ANNEX DISCLAIMER – FORWARD LOOKING STATEMENTS This document has been prepared by Interpump Group S.p.A for aforesaid forward-looking statements. This document does not use during meetings with investors and financial analysts and is constitute an offer to sell or a solicitation to buy or subscribe t
Slide 34: Annex Disclaimer − Performance Indicators
ANNEX DISCLAIMER − PERFORMANCE INDICATORS The Group uses several alternative measures that are not identified as accounting parameters in the framework of IFRS standards, to allow better evaluation of the trend of economic operations and the Group's financial position. Such indicators are also tools
Slide 35: Annex 2022 Additional Details
ANNEX 2022 ADDITIONAL DETAILS 34
Slide 36: Annex Sales Details – Breakdown by Geography
ANNEX SALES DETAILS – BREAKDOWN BY GEOGRAPHY 11% 8% 52% EUROPE NORTH AMERICA 2022 sales: € 2.078m PACIFIC AREA REST of THE WORLD 29% 35
Slide 37: Annex Sales Details – Breakdown by Sector Application
ANNEX SALES DETAILS – BREAKDOWN BY SECTOR APPLICATION (1) 1% 9% 16% 6% EARTH MOVING MACHINE CONSTRUCTION AGRICOLTURE LIFT 6% 12% ADAPTORS INDUSTRIAL VEHICLES COSMETIC AUTOMOTIVE AEROSPACE&DEFENCE OFFSHORE SHIPYARD-MARINE 4% 2022 sales: TUNNELING DRILLING € 2.078m MINING OIL&GAS FIRE PREVENTION RAILW
Slide 38: Sales Details – Quarterly Organic Sales Evolution
2022 SALES DETAILS – QUARTERLY ORGANIC SALES EVOLUTION 50% GROUP 2020-2022 ORGANIC GROWTH EVOLUTION by QUARTER 40% 39.4% 2020: -12.6% - 2021: +20.4% - 2022: +13.7% 30% 20% 17.9% 15.7% 12.5% 14.2% 14% 11.6% 12.6% 10% 0% -1.7% -10% -11.2% -20% -16.2% -25.2% -30% 1Q 2Q 3Q 4Q HYDRAULICS 2020-2022 ORGANI
Slide 39: Annex Group Overview
GROUPOVERVIEW OOOO ANNEX
Slide 40: IP A Balance and Diversified Business
IP A BALANCE AND DIVERSIFIED BUSINESS ▪ € 2.078m of turnover and € 492m of EBITDA (23.7% on net sales) in 2022 divided between two divisions − Hydraulics and Water Jetting ▪ Hydraulics: around 65% of Group sales and 68% of Group EBITDA − Wide range of components for mobile and non-mobile hydraulics:
Slide 41: IP A Balance and Diversified Business
IP A BALANCE AND DIVERSIFIED BUSINESS WATER JETTING HYDRAULICS HIGH PRESSURE PUMPS FLOW HANDLING COMPONENTS DEVICES & SYSTEMS • Power take-offs, cylinders, hydraulic motors & gear • Piston pumps 1-2,000 hP used in • Stainless steel agitators, mixers, pumps, valves high-pressure applications manifold
Slide 42: IP A Balance and Diversified Business – Applications
IP A BALANCE AND DIVERSIFIED BUSINESS – APPLICATIONS HYDRAULICS WATER JETTING TRUCK OUTFITTERS FOOD, COSMETICS (1) AUTOMOTIVE EARTH MOVING Tipping trucks High-pressure homogenizers Rail engine heads deburring Excavators Trash collection – Water-jet food cutting, Bodywork cutting Backhoe loaders Fire
Slide 43: IP A Balance and Diversified Business – Products
IP A BALANCE AND DIVERSIFIED BUSINESS – PRODUCTS WATER JETTING HYDRAULICS HIGH PRESSURE PUMPS FLOW HANDLING COMPONENTS DEVICES & SYSTEMS INTERPUMP GALTECH INTERPUMP MUNCIE POWER HYDROCONTROL PRATISSOLI BERTOLI Power take offs WALVOIL – WHITE DRIVE High flow/pressure Homogenizers Valves, plunger pump
Slide 44: IP Group Strategy Milestones
IP GROUP STRATEGY MILESTONES FLEXIBILITY • Vertically integrates manufacturing DIVERSIFICATION (wherever possible) Product mix and sales strategy • Across the widest possible range • Use of general-purpose programmable of applications, products, can adapt fast to market evolution machine tools (no r
Slide 45: IP Group Strategy Milestones
IP GROUP STRATEGY MILESTONES Volatility reduction through multiple cycles exposure Effective reaction to unexpected swings FLEXIBILITY • Vertically integrates manufacturing DIVERSIFICATION (wherever possible) Product mix and sales strategy • Across the widest possible range • Use of general-purpose
Slide 46: Giovanni Poletti
The Manager in charge of preparing the company’s financial reports declares - pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance - that the accounting information contained in this presentation corresponds to the document results, books and accounting records. S.Ilario d’E