Industrie De Nora Spa · MIL:DNR
Industrie De Nora Spa — H1 2024 Earnings Presentation
38 slides from Industrie De Nora Spa's earnings presentation, Jul 30, 2024
Slide 1: H1 2024 Financial Results: Q2 revenues recovery, as expected, with healthy profitability
H1 2024 Financial Results: Q2 revenues recovery, as expected, with healthy profitability July 30th 2024 © 2024 De Nora
Slide 2: H1 2024 Results: With You Today
H 1 2 0 2 4 R E S U LT S W I T H YO U T O D AY Paolo Dellachà CEO Luca Oglialoro CFO Chiara Locati Head of IR & ESG 2 © © 2024 2024 De De Nora Nora
Slide 3: Agenda
H 1 2 0 2 4 R E S U LT S AGENDA H1 2024 Key Achievements and Business Review H1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 3 © © 2024 2024 De De Nora Nora
Slide 4: H1 2024 Key Highlights
H1 2024 KEY HIGHLIGHTS Q2 Revenues Robust Recovery as expected, with Healthy Profitability Q2’24 REVENUE RECOVERY, SOLID • +3.8% YoY Q2 Revenues | +6.1% @constant fx with all BUs growing PROFITABILITY • 18.4% Q2 EBITDA1 margin, €47 m Operating Cash flow • +3% Backlog vs Dec 2023 H1’24 ENERGY TRANSIT
Slide 5: H1 Key Results
H 1 2 0 2 4 K E Y R E S U LT S Revenues progress and cash generation underpinned by healthy profitability REVENUES EBITDA ADJUSTED* NET RESULT €400.3m €75.3m €40.0m €420.4m in H1 2023 18.8% Ebitda Adj margin 10.0% on revenues €84.4m in H1 2023 €46.7m in H1 2023 2.8% +180 bps ENERGY TRANSITION BACKLO
Slide 6: Electrode Technologies Business
ELECTRODE TECHNOLOGIES BUSINESS Revenues Surged in Q2 2024 Revenues €m • Q2’2024: Revenues recovered as expected: 118.9 112.8 112.1 • +3.6% YoY @ constant fx driven by 92.7 Chlor Alkali division • Aftermarket revenues at 47% Q1 2023 Q2 2023 Q1 2024 Q2 2024 BACKLOG €m • H1 ‘2024: New Orders ~€180 m,
Slide 7: Water Technologies Business
WAT E R T E C H N O L O G I E S B U S I N E S S Sound New Orders Underpin Growth BACKLOG, +12% YoY 155.4 138.8 17.7 • +12% Water Technologies backlog 15.8 increase driven by ~€160m new orders 137.7 123.0 Pools Backlog : +12% YoY WTS1 Backlog +12% YoY €m FY 2023 H1 2024 H1’24 WTS Orders ~€108m • WTS
Slide 8: Water Technologies Systems: Flagship New Projects Awarded in Q2
WAT E R T E C H N O L O G I E S SY S T E M S Flagship New Projects awarded in Q2 Selected MUNICIPAL Projects Selected INDUSTRIAL Projects about 538,000 m3/d of Water Treated* about 330,000 m3/d of Water Treated* Usa – Santa Clarita Valley (California) Netherlands – North Sea Scope: Safe Drinking Wat
Slide 9: PFAS: Growing Pipeline of Opportunities
PFAS Growing Pipeline of Opportunities to Materialize in the next years PFAS US Regulations • EPA April 2024: 4ppt is the MCL1 for drinkable water • The utilities have a 5-year runway to come into compliance: 3Yrs to monitor and 2Yrs to implement new techs • EPA estimates total clean up costs of €1.
Slide 10: Energy Transition Business
ENERGY TRANSITION BUSINESS 1.9 GW delivered since 2022 MW1 Delivered 1000 500 588 • +18% YoY MW delivered in H1’24 300 • 1.9 GW1 delivered since 2022 FY FY H1 H1 • H1 Revenues +10.6% YoY (+24.2% in Q2) 2022 2023 2023 2024 Backlog €m 168 182 125 161 • 1.6 GW backlog @ 30 Jun’24 • 3.0 GW Hot Deals in
Slide 11: Our Green Hydrogen Projects
H1 2024 ENERGY TRANSITION Our Green Hydrogen Projects Main Projects in Backlog NEOM, Saudi Arabia, Green Steel project, Sweden Largest Green H2 Project Globally the first large-scale green steel plant in EU part of > 2 GW tot project 700+ MW H2 to Green Ammonia H2 to Steel – Hard to abate industry S
Slide 12: Dragonfly System: Our Small-Scale Solution
D R A G O N F LY ® S Y S T E M O U R S M A L L - S C A L E S O L U T I O N Backlog and Pipeline Building Up Our innovative H2 generation system Key Milestone June 2024* • Designed to minimize Total Cost of Ownership (TOC) and Levelized cost of green H2 LOI with Duferco Energy Company • Plug-n-play s
Slide 13: Energy Transition Pipeline at 30 June 2024
ENERGY TRANSITION PIPELINE@30 June 2024 Fast-growing 78.6 GW pipeline BACKLOG ~1.6 GW ~161 €M ~3.0 GW ~286 €M HOT DEALS1 ~27% • ELECTRODES Projects at different stages already announced by nucera • CELL MANUFACTURING • ELECTRODE PACKAGE ACTIVELY PURSUED ~15 GW ~1.4 €bn PROJECTS2 IDENTIFIED PIPELINE3
Slide 14: Gigafactory, Another Step in Our Green Hydrogen Footprint
B O O S T I N G O U R D I S T I N C T I V E P R O D U C T I O N C A PAC I T Y G i g a f a c t o r y, a n o t h e r s t e p i n o u r G r e e n H y d r o g e n F o o t p r i n t Development Italian Gigafactory’s Groundbreaking AMS EMEIA ASIA June 2024 ▪ Automation and • Strengthened • Synergic plan o
Slide 15: Agenda
H 1 2 0 2 4 R E S U LT S AGENDA H1 2024 Key Achievements and Business Review H1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 15 © © 2024 2024 De De Nora Nora
Slide 16: Q2 Revenues
Q2 REVENUES Sound Growth in all the Business Units at constant fx Total Revenues Electrodes Technologies KEY HIGHLIGHTS (€m / % YoY) (€m / %YoY) +6.1% +3.8% +3.6% ELECTRODE TECHNOLOGIES 216.9 215.9 -0.6% 203.5 211.3 211.2 118.9 112.8 116.9 112.1 189.1 92.7 • Performance driven by scheduled productio
Slide 17: Q2 EBITDA Adjusted
Q2 EBITDA ADJUSTED H e a l t h y P r o f i t a b i l i t y, w i t h W a t e r Te c h n o l o g i e s a n d E n e r g y Tr a n s i t i o n improving EBITDA* Adjusted by quarters (€m) KEY HIGHLIGHTS Q2 47.0 ELECTRODES TECHNOLOGIES 37.4 38.9 Electrode 5.0 36.4 • Q2’24 margin mainly reflects a Technolog
Slide 18: H1 2024 Revenues
H1 2024 REVENUES … towards Growth in the Second Half KEY HIGHLIGHTS REVENUES €m Revenues By Geography -2.3% YoY -4.8% YoY ELECTRODE TECHNOLOGIES 420.4 410.7 Americas; • Chlor Alkali revenues accelerated in Q2 and 400.3 30.2% expected to further improve in H2 47.3 52.4 +10.8% • 52.3 +10.6% Japanese Y
Slide 19: H1 2024 Backlog
H1 2024 BACKLOG W a t e r Te c h n o l o g i e s a n d E n e r g y Tr a n s i t i o n o r d e r s s u p p o r t e d t h e b a c k l o g BACKLOG €m KEY HIGHLIGHTS 661.1 Backlog 612.1 630.1 by Year of Deployment ELECTRODE TECHNOLOGIES 2027+ • Project execution partially 182.3 compensated by orders mai
Slide 20: H1 Operating Costs
H 1 2 0 2 4 O P E R AT I N G C O S T S Corporate Structure and R&D Profile well set to grow COGS (€m)1 SG&A and Corporate R&D (€m) KEY HIGHLIGHTS (€m)1 COGS decreased reflecting volume As % trend of 65.3% 66.3% 12.9% 13.9% 1.6% 2.0% Sales 274.4 SG&A and Corporate costs slightly 265.6 55.8 increased
Slide 21: H1 2024 EBITDA Adjusted
H1 2024 EBITDA ADJUSTED H e a l t h y p r o f i t a b i l i t y, w i t h W a t e r Te c h n o l o g i e s i m p r o v i n g KEY HIGHLIGHTS EBITDA* Adjusted (€m) ELECTRODE TECHNOLOGIES 84.4 75.3 • The margin evolution reflects lower volumes 5.6 3.4 and a different revenues mix, especially in 18.1 Q2,
Slide 22: H1 2024 Results: From EBITDA to Net Income
H 1 2 0 2 4 R E S U LT S : F R O M E B I T D A TO N E T I N C O M E €(2.2)m Net Financial Costs 76.6 €(1.9) m Share of loss of equity- 60.4 accounted investees (jv nucera) (16.2) 40.0 H1 (4.1) 10.0% on Revenues 2024 (16.3) DEPRECIATION AND EBIT NET FINANCIALS TAXES NET INCOME (€m) EBITDA1 AMORT. €(4
Slide 23: Net Financial Position at June 2024
NET FINANCIAL POSITION @ 30 JUNE 2024 Q2 Operating Cash Flow more than covered Capex and Dividends Q2 Operating Cash Flow: €47m 6.1 (52.6) (11.5) (1.2) (13.2) (3.1) (1.8) (5.3) 1.5 14.2 9.4 (24.4) (3.5) (22.5) NET CASH EBITDA Δ NWC & CAPEX FINANCIALS TAXES BUY OTHERS NET CASH EBITDA Δ NWC & CAPEX FI
Slide 24: 2024 Guidance
2024 GUIDANCE Low Single-Digit Growth, coupled with continued healthy Profitability REVENUES ADJ. EBITDA MARGIN LOW SINGLE-DIGIT GROWTH ~17% Electrode Technologies Broadly in line with 2023 Including Italian Gigafactory Development costs Water Technologies Low Single-Digit Growth Energy Transition L
Slide 25: Agenda
H 1 2 0 2 4 R E S U LT S AGENDA H1 2024 Key Achievements and Business Review H1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 25 © © 2024 2024 De De Nora Nora
Slide 26: Main H1 2024 ESG Achievements
MAIN H1 2024 ESG ACHIEVEMENTS Executing our Sustainability Plan, our journey continues… GREEN CLIMATE ACTION & CIRCULAR PEOPLE & LOCAL INNOVATION ECONOMY COMMUNITIES • Update of Circular Design Guidance focused • 3.1 GWh PV plants connected, in our • DE&I Policy finalized on 4 major areas: Germany,
Slide 27: Agenda
H 1 2 0 2 4 R E S U LT S AGENDA H1 2024 Key Achievements and Business Review H1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 27 © © 2024 2024 De De Nora Nora
Slide 28: Final Remarks H1 Results
F I N A L R E M A R K S H 1 2 0 2 4 R E S U LT S A Solid Business Model for Sustainable Growth Revenues recovered in Q2 2024, enhancing the H1 results, underpinned by a solid and differentiated backlog and a healthy 18.8% EBITDA margin. Positive momentum in Water Technologies Business continues with
Slide 29: Agenda
H 1 2 0 2 4 R E S U LT S AGENDA H1 2024 Key Achievements and Business Review H1 2024 Results Review ESG Journey Updates Final Remarks Q&A Session 29 © © 2024 2024 De De Nora Nora
Slide 30: Q&A
Q&A © 2024 De Nora
Slide 31: Additional Materials
Additional Materials © 2024 2023 De Nora
Slide 32: Income Statements
I N C O M E S TAT E M E N T S €m Q1 2023 Q2 2023 H1 2023 Q1 2024 Q2 2024 H1 2024 Revenue 216.9 203.5 420.4 189.1 211.2 211.3 400.3 400.4 YoY Growth (%) 8.6% -4.8% 2.4% -12.8% 3.8% -4.8% Royalties and commissions (2.2) (2.7) (4.9) (2.0) (2.5) (4.5) Cost of goods sold (138.4) (131.3) (269.7) (120.7) (
Slide 33: 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 ‘23 Q2 ‘23 Q1 ‘24 Q2 ‘24 Q1’24 vs Q1'23 Q2’24 vs Q2'23 REVENUES 216.9 203.5 189.1 211.2 -12.8% 3.8% Electrode Technologies 118.9 112.8 92.7 112.1 -22.0% -0.6% Energy Transition 26.6 20.7 26.6 25.7 0.0% 24.2% Water T
Slide 34: Income Statement: Focus on EBITDA Adjustments
I N C O M E S TAT E M E N T Focus on EBITDA Adjustments (€m) H1 2023 H1 2024 Sales 420.4 400.3 EBITDA 83.1 76.6 Margin (%) 19.8% 19.1% Terminations costs (labor + legal expenses) 0.2 0.5 Costs relative to IPO process 0.7 - Costs relative to M&A, integration, and company reorganization 0.1 0.1 Marine
Slide 35: Income Statement: EBITDA New vs. Previous Definition
I N C O M E S TAT E M E N T E B I T D A N e w v. s . P r e v i o u s D e f i n i t i o n (€m) H1 2024 H1 2023 Previous New Previous New Definition Definition Definition Definition Cash effect of cost for w hich a prov ision w as -5.6 -5.6 -1.5 -1.5 accrued in PY Prov ision Utilization 0 5.6 0 1.5 Pr
Slide 36: Balance Sheet
BALANCE SHEET (€m) FY 2023 H1 2024 Intangible assets 115.8 115.2 Property, plant and equipment 254.3 261.6 Equity-accounted investees 231.5 229.1 Fixed asset 601.6 605.9 Inventories 257.1 272.1 Contract work in progress, net of advances from customers 31.7 25.4 Trade receivables 141.9 154.7 Trade pa
Slide 37: Cash Flow Statement
C A S H F L O W S TAT E M E N T (€m) H1 2023 H1 2024 EBITDA 83,106 76,606 Losses (Gain) on the sale of property, plant and equipment and intangible assets 202 (5,712) Other non-monetary items 2,178 (4,529) Cash flows generated by operating activities before changes in net working capital 85,486 66,3
Slide 38: Investor Relations – Ready to Engage
I N V E S TO R R E L AT I O N S – R E A DY TO E N G A G E UPCOMING EVENTS – FINANCIAL CALENDAR IR CONTACTS Sep. 9 - 11 Italian Sustainability Week, Milan - Borsa Italiana Sep. 19 Clean Energy and Energy Transition Conference, London - Redburn A. ir@denora.com Investor Relations | Overview | De Nora