Maire S.p.a. · MIL:MAIRE
Maire — Maire Tecnimont — H1 2023 Earnings Presentation
34 slides from Maire's earnings presentation, Jul 27, 2023
Slide 1: H1 2023 Financial Results: Deploying Our Strategy
27 July 2023 H1 2023 FINANCIAL RESULTS DEPLOYING OUR STRATEGY
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Maire Tecnimont S.p.A. (“Maire”, or the “Company”) solely for use in the presentation of the Maire Tecnimont Group (the “Group”) and its financial results. This document does not constitute or form part of any offer or invitation to sell, or any solicita
Slide 3: Agenda
AGENDA 01 INTRODUCTORY REMARKS Alessandro Bernini, CEO 02 OPERATIONAL PERFORMANCE Alessandro Bernini, CEO 03 FINANCIAL RESULTS Fabio Fritelli, CFO 04 THE WAY FORWARD Alessandro Bernini, CEO H1 2023 FINANCIAL RESULTS 3
Slide 4: Introductory Remarks
01 INTRODUCTORY REMARKS Alessandro Bernini, CEO H1 2023 FINANCIAL RESULTS 4
Slide 5: Deploying Our Strategy – H1 2023 Highlights
DEPLOYING OUR STRATEGY – H1 2023 HIGHLIGHTS DOUBLE-DIGIT GROWTH OF MAIN KPIs €1,965.7m €120.9m €54.0m Revenues EBITDA Net Income +21.7% YoY +24.1% YoY, 6.2% Margin +33.0% YoY Driven by steady project execution STS EBITDA +48.8% YoY Creating value for shareholders €104.6m €9.0bn €57.7m Adjusted Net C
Slide 6: A New Organization Supporting Our 10-Year Strategy
A NEW ORGANIZATION SUPPORTING OUR 10-YEAR STRATEGY TWO BUSINESS UNITS, A UNIQUE INTEGRATED APPROACH, TO ENABLE ENERGY TRANSITION SUSTAINABLE INTEGRATED TECHNOLOGY SOLUTIONS Nitrogen Fertilizers E&C SOLUTIONS Technology Process Design H2 and Circular Carbon Front End Engineering Licensing Package Eng
Slide 7: STS Is Gaining Traction
STS IS GAINING TRACTION POSITIONING THE GROUP AT THE FOREFRONT OF ENERGY TRANSITION YTD ACHIEVEMENTS ~€200m new awards YTD1 5x vs H1 2022 2023-2032 GROWTH DRIVERS Seize the growing request of Energy Transition technology ~90 new patents added Total portfolio 2,127 vs 2,041 at YE2022 Develop and scal
Slide 8: IE&CS Is Consistently Delivering
IE&CS IS CONSISTENTLY DELIVERING TESTAMENT TO THE HISTORIC POSITIONING IN KEY GROWTH MARKETS YTD ACHIEVEMENTS €2.3bn H1 2023 order intake, 2023-2032 GROWTH DRIVERS 2.2x vs H1 2022 Reap the growth of reference markets 3 projects awarded Implement Sustainable Technology Solutions leveraging upon syner
Slide 9: A Comprehensive Technology Offering
A COMPREHENSIVE TECHNOLOGY OFFERING PORTFOLIO AND FOCUS TECHNOLOGY AREAS NITROGEN H2 AND FUELS POLYMERS FERTILIZERS CIRCULAR CARBON AND CHEMICALS Proven technologies / ● ULE – Ultra Low Energy ● Carbon capture and storage ● Waste-to-X solutions to ● Mechanical recycling and fertilizers solutions con
Slide 10: A Comprehensive Technology Offering: H1 Main Developments
A COMPREHENSIVE TECHNOLOGY OFFERING H1 MAIN DEVELOPMENTS M&A-driven developments APPLICATIONS MAIN DEVELOPMENTS Production of biodegradable plastic Expanding commercial reach in new regions monomers Expanded tech package to catalysts and proprietary equipment POLYMERS Depolymerization of PMMA Tested
Slide 11: Operational Performance
02 OPERATIONAL PERFORMANCE Alessandro Bernini, CEO H1 2023 FINANCIAL RESULTS 11
Slide 12: H1 Initiatives: Positive Market Momentum
H1 INITIATIVES: POSITIVE MARKET MOMENTUM CONFIRMING OUR LEADERSHIP IN CORE MARKETS WHILE GROWING IN ENERGY TRANSITION Carbon capture Feasibility study Licensing and facility in waste-to-energy engineering Ravenna plant in Italy ultra-low energy urea plant in ENI Foresight Group China Engineering wor
Slide 13: Group Order Intake
GROUP ORDER INTAKE RECORD LEVEL OF NEW AWARDS IN Q2 2023 H1 ORDER INTAKE (€M) H1 ORDER INTAKE BY GEOGRAPHY ● Over €2.0bn new awards in Q2 2023 leading to €2.4bn order intake in H1 2023, Africa Asia highest level since H1 2018 2% 6% Americas ● Middle-East confirms its leading role in the 5% current i
Slide 14: Group Backlog
GROUP BACKLOG SIZEABLE AND DIVERSIFIED BACKLOG WITH INCREASING MID-TERM VISIBILITY BACKLOG SCHEDULE BACKLOG BY GEOGRAPHY ● ~25% of backlog to be executed in 2023 supporting Africa Asia 12% 6% current year’s targets Total €9,044.7m Americas Backlog 4% ● 45-50% of backlog to be executed in 2024 Europe
Slide 15: Order Intake and Backlog: STS
ORDER INTAKE AND BACKLOG: STS OUR STRATEGY AT WORK ORDER INTAKE (€M) BACKLOG (€M) BACKLOG BY GEOGRAPHY Asia 45% Africa 11% Short cycle 98.6 213.9 ~12-18 months 159.8 Americas 40.1 Middle East 15% 13% Europe 16% H1 2022 H1 2023 31-Dec-22 30-Jun-23 Backlog Cover 1.0x Trailing 12 months Note: 2022 pro-
Slide 16: Order Intake and Backlog: IE&CS
ORDER INTAKE AND BACKLOG: IE&CS THE BACKBONE OF OUR BUSINESS ORDER INTAKE (€M) BACKLOG (€M) BACKLOG BY GEOGRAPHY Africa Asia 12% 5% Americas 4% Long cycle Europe ~3-4 years 2,263.5 8,830.8 17% 8,454.2 1,045.9 Middle East 62% H1 2022 H1 2023 31-Dec-22 30-Jun-23 Backlog Cover 2.5x Trailing 12 months N
Slide 17: Selected Award: Amiral Project
SELECTED AWARD: AMIRAL PROJECT WORLD-CLASS EXECUTION TO UPGRADE REFINERIES INTO HIGHER VALUE CHEMICALS PETROCHEMICAL EXPANSION – SATORP REFINERY LOCATION BUSINESS UNIT Jubail, Saudi Arabia Integrated E&C Solutions SCOPE AND KEY FEATURES ● Engineering services, equipment and material supply, construc
Slide 18: Selected Award: Green Ammonia
SELECTED AWARD: GREEN AMMONIA INTEGRATED APPROACH BETWEEN TECHNOLOGY AND EXECUTION GREEN FERTILIZER COMPLEX – USA ABOUT GREEN AMMONIA ● Green ammonia for nitrogen-based fertilizers to serve the local market ~187 million tons ammonia demand in 2022 ● One of the biggest facilities in North America ent
Slide 19: Commercial Pipeline
COMMERCIAL PIPELINE SHORT-TERM MARKET OPPORTUNITIES WORTH €56.3BN BY MAIN CLUSTER Polymers Fuels and 20% ASIA Chemicals AMERICAS EUROPE & CIS 51% Driven by: Driven by: Fuels and Chemicals 0.7 Nitrogen Driven by: 0.2 Nitrogen Fertilizers 0.2 Nitrogen Fertilizers H2 and Circular Carbon Polymers Fertil
Slide 20: Expanding Our Technology Portfolio
EXPANDING OUR TECHNOLOGY PORTFOLIO ON TRACK ALONG OUR TECH JOURNEY 2,100+ NUMBER OF PATENTS RECOGNIZED FOR GREEN PRODUCTION PATENTS PRACTICES IN CLEANTECH . +4.2% ~90 PATENTS ADDED IN H1 . ~160 2,041 2,127 FAMILIES . 4 R&D CENTERS AROUND THE WORLD 31-Dec-22 30-Jun-23 H1 2023 FINANCIAL RESULTS OPERAT
Slide 21: Expanding Our Headcount and International Footprint
EXPANDING OUR HEADCOUNT AND INTERNATIONAL FOOTPRINT INVESTING IN TALENT TO SUPPORT GROWTH 7,000+ HEADCOUNT GROWTH TOTAL EMPLOYEES . +8.8% . 7,016 650+ 6,451 1,166 1,248 ENGINEERS HIRED IN H1, MOSTLY IN INDIA . 45 5,768 COUNTRIES WITH 50+ 5,285 OPERATING COMPANIES . 4 NEW OFFICES OPENED IN H1: 31-Dec
Slide 22: A 360-Degree Commitment to Sustainability
A 360-DEGREE COMMITMENT TO SUSTAINABILITY 2023 ESG KEY INITIATIVES AND ACTIVITIES CLIMATE, CIRCULAR PEOPLE, H&S CREATION OF INNOVATION VALUE FOR TERRITORIES ECONOMY, ENVIRONMENTAL GOVERNANCE AND DIVERSITY THAT BRINGS WELL-BEING AND COMMUNITIES SUSTAINABILITY Carbon Neutrality Plan1 through Initiativ
Slide 23: Financial Results
03 FINANCIAL RESULTS Fabio Fritelli, CFO H1 2023 FINANCIAL RESULTS 23
Slide 24: H1 2023 Group Results
H1 2023 GROUP RESULTS DOUBLE-DIGIT GROWTH OF ALL MAIN KPIs, IN LINE WITH GUIDANCE REVENUES (€M) EBITDA (€M) NET INCOME (€M) ● Revenues increase driven by steady +21.7% +24.1% +33.0% project execution ● Higher volumes in core regions, supported by a strong performance in Middle-East ● G&A at €41.5m (
Slide 25: Sustainable Technology Solutions
SUSTAINABLE TECHNOLOGY SOLUTIONS STEPPING UP THE PACE REVENUES (€M) EBITDA (€M) ● Revenues increase driven by the +30.2% +48.8% growing demand for technology solutions and services ● Strong EBITDA performance, thanks to our focus on high value-added products and services, in line with the strategic
Slide 26: Integrated E&C Solutions
INTEGRATED E&C SOLUTIONS PERFORMANCE DRIVEN BY STEADY PROJECT EXECUTION REVENUES (€M) EBITDA (€M) ● Revenues increase driven by +21.2% +18.9% continued solid performance of existing projects in the backlog ● Profitability in line ● Newly-acquired projects will increasingly provide steady support in
Slide 27: Net Financial Position and Capex
NET FINANCIAL POSITION AND CAPEX STRONG OPERATING CASH FLOW MORE THAN COMPENSATING PLANNED INVESTMENTS AND DIVIDENDS CASH FLOW BRIDGE (€M, EX-IFRS 16) CAPEX BREAKDOWN (€M) Total Gross Capex2 €57.7m 9.3 Total Gross Capex of €57.7m net of €17.6m acquired cash 48.4 STS IE&CS 1 1 1. Excluding non-recour
Slide 28: Adjusted Net Trade Working Capital
ADJUSTED NET TRADE WORKING CAPITAL NET TRADE WORKING CAPITAL IMPROVEMENT DRIVEN BY PROJECT PROGRESS ADJUSTED NET TRADE WORKING CAPITAL (€M) Driven by projects’ advancements Borouge 4 in UAE Port Harcourt in Nigeria 1 Note: Adjusted Net Trade Working Capital to be comparable with the Adjusted Net Fin
Slide 29: The Way Forward
04 THE WAY FORWARD Alessandro Bernini, CEO H1 2023 FINANCIAL RESULTS 29
Slide 30: The Way Forward
THE WAY FORWARD ON TRACK TO DELIVER OUR FY 2023 GUIDANCE 2023 GUIDANCE ● First half results and high order backlog demonstrate strong REVENUES €3.8 - 4.2bn momentum in both technology and execution, providing a solid STS €0.2 - 0.3bn IE&CS €3.6 - 3.9bn platform to deliver double-digit growth in 2023
Slide 31: Appendix
APPENDIX H1 2023 FINANCIAL RESULTS 31
Slide 32: Income Statement: Half-Year Results
INCOME STATEMENT HALF-YEAR RESULTS H1 2022 H1 2023 Change €m % €m % €m % GROUP Revenues 1,615.4 100.0% 1,965.7 100.0% 350.3 +21.7% Operating costs (1.518.0) (94.0)% (1,844.8) (93.9)% (326.8) -21.5% EBITDA 97.4 6.0% 120.9 6.2% 23.5 +24.1% Depreciation and amortization (25.7) (1.6)% (26.2) (1.3%) (0.5
Slide 33: Income Statement: Quarterly Results
INCOME STATEMENT QUARTERLY RESULTS Q1 2022 Q2 2022 Q1 2023 Q2 2023 Q2 YoY Change €m % €m % €m % €m % €m % GROUP Revenues 728.4 100.0% 887.0 100.0% 957.9 100.0% 1,007.8 100.0% 120.8 +13.6% Operating costs (684.7) (94.0)% (833.3) (93.9) (899.9) (93.9)% (944.9) (93.8)% (111.6) -13.4% EBITDA 43.7 6.0% 5
Slide 34: Maire Tecnimont S.p.A. Headquarters
Maire Tecnimont S.p.A. HEADQUARTERS Via Gaetano De Castillia, 6 A 20124 Milan, Italy +39 02 63131 Investor-relations@mairetecnimont.it