Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — De Nora — Investor Presentation (April 2024)
52 slides from Industrie De Nora Spa's investor presentation, April 2024
Slide 1: Corporate Profile: Innovative Technologies Enabling Sustainable Future
Corporate Profile Innovative Technologies Enabling Sustainable Future April, 2024 © 2024 De Nora
Slide 2: Agenda
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE De Nora in a Nutshell FY 2023 Results Review Mid-Term View and Guidance ESG Plan 2030 Investment Case DSA® Anode for Cathodic Protection Leader in Coated Electrode Technologies 2 © 2024 De Nora
Slide 3: Who We Are
WHO WE ARE G l o b a l L e a d e r i n E l e c t r o d e Te c h n o l o g i e s a n d W a t e r Tr e a t m e n t S o l u t i o n s The world's largest supplier of high- performing coatings and electrodes for industrial applications Leader in emerging sustainable technologies and with a key role in G
Slide 4: De Nora Today
D E N O R A T O D AY AMS EMEIA A PA C €856.4m 2022 Revenues 6 4 745 24 586 258m 679 308m 5 290m Operating companies +100 36% Years of Innovation 30% 34% 281 Patent families 2010 People Electrode Energy Water Revenues Factories People Technology Transition Technology Data as of 31.12.2023 4 4 © 2024
Slide 5: Timeline: Profitable growth and sustainable value creation
TIMELINE Profitable growth and sustainable Value Creation 1 First Joint Venture with thyssenkrupp Uhde Chlorine Engineers (“tkUCE”) was set up in 2001, renamed tk nucera in 2022. 2 Acquisition of Severn Trent Water Purification Technologies. 3 Approximately 33% stake acquired from the De Nora family
Slide 6: Three Divisions, One Soul
DE NORA:THREE DIVISIONS ONE SOUL 1 0 0 Ye a rs o f E l e c t ro c h e m i s t r y 2023 By Business Units 12% 34% 54% ELECTRODE TECHNOLOGIES ENERGY TRANSITION WATER TECHNOLOGIES Electrochlorination, Disinfection and Anodes, Cathodes, Catalytic Coatings Electrodes for Alkaline Water Filtration Technol
Slide 7: What Makes De Nora's Electrodes Different?
W H AT M A K E S D E N O R A’ S E L E C T R O D E S D I F F E R E N T ? Leading High Performing Electrodes provider One century of investments, R&D and technological breakthrough Best-in-class manufacturing capacity in place Italian multinational Superior performance in terms of energy consumption,
Slide 8: Top R&D Activities
TOP R&D ACTIVITIES Continuous improvement of performance and sustainability to strengthen our leadership 281 Patent Families, Continuous improvement of DSA® Electrodes 2800+ Territorial Extensions performances (Current Density increase) 5 R&D Centers around the world Noble Metals usage optimization
Slide 9: Financial Results 2021-2023
F I N A N C I A L R E S U LT S 2021–2023 O u r S u s t a i n a b l e a n d Profitable growth STRONG ORGANIC SOLID NET FINANCIAL GROWTH PROFITABILITY POSITION €856m €171m €68m 2023 Revenue 2023 EBITDA Adj. €51m in 2022 CAGR 2021- 2023 +18% CAGR 2021- 2023 +17% +34% vs 2022 EBITDA MARGIN % 21% 22% 20%
Slide 10: Agenda: FY 2023 Results Review
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review Mid-Term View and Guidance ESG Plan 2030 Investment Case AWE Stack Sustainable and Profitable Growth, while investing for the future 10 © 2024 De Nora
Slide 11: 2023 Results Opening Remarks
2023 Results OPENING REMARKS Profitable growth and sustainable Value Creation SOLID AND GROWING • +4% YoY Revenues at constant fx FINANCIAL RESULTS • 20% EBITDA adj. margin ENERGY TRANSITION • 1GW Technologies for Green H2 released GROWTH • +140% YoY Revenues, 12% EBITDA margin IMPROVING OUR • 3X El
Slide 12: Electrode Technologies Business
E l e c t r o d e s Te c h n o l o g i e s B u s i n e s s Volume growth and solid profitability Electrode Technologies Business: Revenues grew by 2.4 % YoY at constant fx, 54% of total revenues supported by Chlor- Alkali volumes Sounding 25% Ebitda Adj. margin, and after market revenues at 42% of r
Slide 13: Water Technologies Business
W a t e r Te c h n o l o g i e s B u s i n e s s Record growth in the WTS, while Pools’ destocking is over Water Technologies Business 34% of total revenues Water Technologies Systems (WTS) reported a record year as revenues grew by 17%, and increased WTS - Revenues €m profitability. After Market re
Slide 14: Energy Transition Business
Energy Transition Business Profitable GROWTH to decarbonize hard-to-abate industries Energy Transition Business: 12% of total revenues Our Growth KPIs: 1GW of Green H2 technologies delivered, €102m revenue (+140% YoY), positive 11.8% Ebitda adj. GW1 DELIVERED margin 1.0 3X 0.3 New Orders: 700+ MW, p
Slide 15: Our Green Hydrogen Projects
FY 2023 ENERGY TRANSITION Our Green Hydrogen Projects Main Projects in Execution / Backlog Main Orders Completed in 2023 NEOM, Saudi Arabia, Camacari Complex Largest H2 Project Globally 1° industrial-scale green H2 Site in Brazil part of > 2 GW tot project Part of 60 MW H2 to Green Ammonia H2 to Fer
Slide 16: Energy Transition Pipeline Feb. 2024
ENERGY TRANSITION PIPELINE @ FEB. 2024 Tra n s fo r mi n g o u r fa st g row i n g 6 3 G W p i p e l i n e i n b a c k l o g BACKLOG1 ~2.2 GW ~200+ €M ~2.4 GW ~224 €M HOT DEALS2 • ELECTRODES MoU and Capacity Reservations • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSUED PROJECTS3 ~15.9 GW ~1
Slide 17: FY 2023 Growing Revenues
FY 2023 GROWING REVENUES… …despite a challenging scenario, +4% at constant forex KEY HIGHLIGHTS (€m) Revenue By Geography ELECTRODE TECHNOLOGIES +4.0% YoY +0.4% YoY • +2.4% YoY at constant fx, mainly thanks to Americas EMEIA Chlor-Alkali 852.8 886.5 856.4 30% 36% • Electronics impacted by market +14
Slide 18: FY 2023 EBITDA Adjusted
FY 2023 EBITDA ADJUSTED S o l i d p r o f i t a b i l i t y, e x c e e d i n g t h e G u i d a n c e EBITDA Adj. Margin % Adj. EBITDA KEY HIGHLIGHTS Total 22.4% 20.0% ELECTRODE TECHNOLOGIES Energy Transition 5.6% 11.8% • Solid profitability despite challenging scenario Water Tech. 19.5% 14.3% • Chan
Slide 19: Agenda: Mid-Term View and Guidance
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review Mid-Term View and Guidance ESG Plan 2030 Investment Case SEACLOR® Onshore Seawater Leading provider of Water Disinfection and Filtration Technologies 19 © 2024 De Nora
Slide 20: GPS - Growth Profitability Sustainability
S T R AT E G I C P I L L A R S GPS – GROWTH PROFITABILITY SUSTAINABILITY GROWTH & MARKET POSITIONING • Deliver step-change organic growth driven by energy transition in partnership with the leading players €1 bn company in 2025 • Pursue profitable growth in both Electrode and Water Technologies • Fo
Slide 21: Market Outlook 2024-2026
MARKET OUTLOOK – 2024- 2026 Different growth speeds of our markets CHLOR-ALKALI ELECTRONICS MINING ENERGY TRANSITION • Chlorine • Li Batteries • Nickel • Green hydrogen • Caustic soda • PCBs • Cobalt POOLS MUNICIPAL INDUSTRIAL Market CAGR 2023- 2026 CAGR <5% CAGR 5-10% CAGR >10% • Residential • Drin
Slide 22: Electrode Technologies
ELECTRODE TECHNOLOGIES Consolidate and improve our n.1 position Market Evolution Strategic Guidance Chlor-Alkali • Innovative and Sustainable Electrodes Stable in 2024, recovery in 2025-2026. • Optimizing Noble Metal Usage Growth’s driver: Technological upgrades • Maintaining Customer and Partner Re
Slide 23: Electrode Technologies: Key Products
ELECTRODE TECHNOLOGIES Addressing multiple industrial applications with a wide range of products KEY PRODUCTS ANODES CATHODES CATALYTIC COATINGS GDE1 MAIN ADDRESSED INDUSTRIES Chlor-alkali Electronics Mining OTHER INDUSTRIES Pulp & paper Steel Automotive Plumbing & furniture Steel & concrete galvani
Slide 24: Water Technologies
WAT E R T E C H N O L O G I E S Strengthen our competitive position via organic growth and M&A Market Evolution Strategic Guidance WTS WTS • Investments in municipal and energy sectors • Focus on electrochlorination and on-site • Demand for on-site electrochlorination technologies chlorine generatio
Slide 25: Water Technologies: Three Distinct Segments
WAT E R T E C H N O L O G I E S De Nora addresses its customers’ needs via three distinct segments ELECTRO- CHLORINATION TECHNOLOGIES TECHNOLOGIES TECHNOLOGIES Self-cleaning metal-coated titanium Gas feed chlorination & Ozone systems, Seawater, onsite and advanced electrodes for salt chlorinators. C
Slide 26: Energy Transition
ENERGY TRANSITION Lead the mid-long-term growth of Green Hydrogen Market Evolution Strategic Guidance • 85-120 GW electrolyzer capacity by 2030 • Technology: focus on performance, costs, and • AWE preferred large-scale projects, 80% share in sustainability 2030 • Grow in partnerships with leading in
Slide 27: De Nora & thyssenkrupp nucera
DE NORA & THYSSENKRUPP NUCERA Together we drive the Green H2 market Deep knowledge, long-standing expertise, Manufacturing excellence and largest 1 4 and strong strategic partnership capacity globally Global leadership in electrodes, Strong balance sheet to finance future 2 5 electrolyzers technolog
Slide 28: Industrial Scale Green H2 Solutions
INDUSTRIAL SCALE GREEN H2 SOLUTIONS U n i q u e , E f f i c i e n t , R e a d y t o u s e Te c h n o l o g i e s … a n d o n g o i n g i n n o v a t i o n In The Market Under development Services ELECTRODES CELLS ELECTRODES SMALL SIZE AWE OTHER R&D AFTERMARKET FOR AWE FOR AWE1 FOR FUEL ELECTROLYZERS
Slide 29: Our Position at the Core of Green H2 Value Chain
O U R P O S I T I O N G AT T H E C O R E O F G R E E N H 2 VA L U E C H A I N Technologies providers EPC Contractors Off-takers Electrodes Electrolyzers Plants PRIMARY SCOPE PARTNERS OF Cell BOP construction OF SUPPLY CHOICE Electrodes and cells Joint Venture De Nora thyssenkrupp nucera Producer man
Slide 30: Boosting Our Distinctive Production Capacity
BOOSTING OUR DISTINCTIVE PRODUCTION CAPACITY Focus on readiness and flexibility to market trends Ongoing investments in brown and green field projects AMS EMEIA ASIA ▪ Increase existing plants’ • Strengthen further • Synergic plan of capacity with automation manufacturing set-up expansion for China
Slide 31: Italian Gigafactory Project
I TA L I A N G I G A FA C T O R Y P R O J E C T: S H A P I N G T H E F U T U R E O F G R E E N H 2 Investing in innovation and manufacturing capacity Greenfield project Products: Italy – Cernusco sul Naviglio R&D and Industrial 25,000 sqm Deployment Construction will start H1 2024 Financing Capacity
Slide 32: Guidance 2024-2026
GUIDANCE 2024 - 2026 Impressive Leadership in Green Hydrogen driving our growth Revenues CAGR 2023 – 2026 • Revenue’s growth will gradually accelerate in €m High Single Digit the next 3 years 856.4 • 1bn€ Company in 2025 • Revenues CAGR 2023- 2026 by division • Energy Transition 40% • Electrode Tech
Slide 33: Agenda: ESG Plan 2030
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review Mid-Term View and Guidance ESG Plan 2030 Investment Case Oronzio De Nora, Politecnico’s Labs Milan 1923. Sustainable By DNA Committed to be an ESG Champion 33 © 2024 De Nora
Slide 34: Our ESG Ambitions
OUR ESG AMBITIONS ESG material topics at the base of the sustainability Plan 2030 10 MATERIAL TOPICS Green Innovation Circular Economy Climate action OUR AMBITION IS TO Employee H&S BECOME A LEADER IN GREEN INNOVATION Responsible Supply Chain AND CIRCULAR ECONOMY, Employee Diversity, Equity & Inclus
Slide 35: ESG Plan 2030 Pillars and Key Initiatives
ESG PLAN 2030 Pillars and Key Initiatives GREEN INNOVATION PEOPLE: INCLUSION, • Product Scorecard (LCA based) WELLBEING, DEVELOPMENT • Circular Design Guidance in the R&D process • Strengthen H&S governance and culture • Reducing Noble Matels in products • Mental health awareness project • Affinity
Slide 36: ESG Targets
E S G TA R G E T S Quantitative targets to accelerate our ESG journey Download the ESG Plan 2030 Pillars Key ESG Plan Targets (baseline 2022) GREEN INNOVATION • Introduce LCA guidance in R&D processes • Develop Product Scorecard, • 100% products assessed with scorecard in 2027 • > 80% R&D spend with
Slide 37: Main 2023 ESG Achievements
MAIN 2023 ESG ACHIEVEMENTS Our journey continues… GREEN CLIMATE ACTION & CIRCULAR PEOPLE & LOCAL GOVERNANCE ETHICS AND INNOVATION ECONOMY COMMUNITES COMPLIANCE • 22% Vitaly index • Scope 1 and 2 • Great Place to Work • Anti-Corruption emission intensity flat Award in Italy Policy, 90% • +17 New Pate
Slide 38: Main 2023 Achievements: Climate Action and Circular Economy
MAIN 2023 ACHIEVEMENTS C l i m a t e A c t i o n a n d C i r c u l a r E c o n o m y, o u r p o s i t i v e i m p a c t 12% Revenues in Energy Transition 1 GW technologies for green H2 generation 24% Revenues in WTS for Water Disinfection and Filtration EU TAXONOMY 9% Revenues aligned (~80% on Energ
Slide 39: Agenda: Investment Case
Agenda INNOVATIVE TECHNOLOGIES ENABLING SUSTAINABLE FUTURE 2023 Key Achievements & Business Review FY 2023 Results Review Mid-Term View and Guidance ESG Plan 2030 Investment Case DSA® Anode for Cathodic Protection 39 © 2024 De Nora
Slide 40: De Nora Investment Case
DE NORA INVESTMENT CASE Leading innovative technologies to enable a Sustainable Future Undisputed Global Leader, producing High performing Electrodes and Water Treatment Solutions Global leader in Green Hydrogen Market Best - in - Class Proprietary and Sustainable Technologies, 100 years R&D- activi
Slide 41: Additional Materials
Additional Materials © 2024 De Nora
Slide 42: Q4 Results
Q4 Results Best 2023 quarter in Revenues, EBITDA KEY HIGHLIGHTS REVENUES +8% Q4 ‘23 vs Q3’23 • Energy Transition +58% , projects in Electrode line with schedules. All-time high Technologies Quarter 20 81 Water • Water Tech. + 22% supported by WTS Technologies growth and pools stabilization 112 Energ
Slide 43: FY 2023 Backlog
FY 2023 BACKLOG E n e rg y Tra n s i t i o n : re co rd B a c k l o g co n s i d e r i n g t h e n e w o rd e rs i n Fe b r u a r y 790 KEY HIGHLIGHTS 691 ELECTRODE TECHNOLOGIES Backlog 193 by Year of Deployment • Project execution in Chlor-Alkali and Electrowinning, partially off-set 204 by new ord
Slide 44: FY Results: From EBITDA to a Strong Net Result
F Y 2 0 2 3 R E S U LT S : F R O M E B I T D A TO A S T R O N G N E T R E S U LT KEY HIGHLIGHTS EBIT improved by €9 m in FY 2023 as a result of the: FY • EBITDA performance, 2023 • Dep. slightly increase due to Capex, more than offset by the positive effects of provision releases FY 2023 Net Result
Slide 45: Net Working Capital Evolution
F Y 2 0 2 3 R E S U LT S Net Working Capital Evolution NWC % Sales 32.9% 36.4% 30.9% KEY HIGHLIGHTS 315.3 280.2 264.6 NWC improvement in Q4 2023 reaching the lower incidence on Revenues in the last 3Yrs The performance vs Q3 2023 reflects - Consistent reduction in Inventories 31 Dec 22 30 Sep 23 31
Slide 46: Net Financial Position at December 2023
NET FINANCIAL POSITION @ 31 DECEMBER 2023 Solid cash flow generation, keeping a strong Financial Structure (€’m) 1.2 -104.8 -6.8 -6.1 NET CASH EBITDA Δ NWC CAPEX TAXES FINANCIALS DIVIDEND GREENSHOE BUYBACK NET CASH DEC.2022 FY231 PAID & OTHERS (nucera’s IPO) DEC.2023 46 1 Ebitda Reported © 2024 De N
Slide 47: Income Statements
I N C O M E S TAT E M E N T S (€m) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Revenue 200.1 210.4 206.2 236.2 852.8 216.9 203.5 209.4 226.7 856.4 YoY Growth (%) 8.4 % (3.4%) 1.5 % (4.0%) 0.4 % Change in inventory of finished goods and work in progress 6.8 7.7 23.
Slide 48: 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 €m Q1’22 Q2'22 Q3'22 Q4'22 Q1 ‘23 Q2 ‘23 Q3 ‘23 Q4 ‘23 REVENUES 200.1 210.4 206.1 236.2 216.9 203.5 209.4 226.7 Electrode Technologies 109.5 118.5 123.4 122.0 118.9 112.8 121.0 111.5 Energy Transition 4.5 2.4 7.2 28.6 26.
Slide 49: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) FY 2022 FY 2023 Sales 852.8 856.4 EBITDA 165.2 171.0 Margin (%) 19.4% 20.0% Terminations costs (labor + legal expenses) 0.488 1.3 Costs relative to IPO process 3.639 0.7 Costs for M&A, integration, and company reorganization 0.303 0.8 Inve
Slide 50: Balance Sheet
BALANCE SHEET (€m) FY 2023 FY 2022 Intangible assets 115.8 131.6 Property, plant and equipment 254.3 184.2 Equity-accounted investees 231.5 122.7 Fixed asset 601.6 438.4 Inventories 257.1 295.5 Contract work in progress, net of advances from customers 31.7 16.4 Trade receivables 141.9 123.4 Trade pa
Slide 51: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) FY 2023 FY 2022 EBITDA 171.0 165.2 Losses on the sale of property, plant and equipment and intangible assets 0.6 0.3 Other non-monetary items 2.3 10.7 Cash flows generated by operating activities before changes in net working capital 174.0 176.2 Change in invento
Slide 52: IR Contacts
IR CONTACTS ph: +39 02 2129 2124 ir@denora.com Investor Relations | Overview | De Nora © 2023 De Nora