Interpump Group S.p.a. · MIL:IP
Interpump — 3Q 2024 Earnings Presentation
60 slides from Interpump's earnings presentation, January 2025
Slide 1: Interpump Group January 2025
INTERPUMP GROUP January 2025
Slide 2: Index
INDEX ▪• GROUP OVERVIEW KEY HIGHLIGHTS ▪• 2024 OUTLOOK 4Q-2023 PRELIMINARY FINANCIAL RESULTS ▪ 3Q2024 FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH ▪ ANNEX • OUTLOOK • ANNEX 1
Slide 3: Index
INDEX ▪• GROUP OVERVIEW KEY HIGHLIGHTS • 4Q-2023 PRELIMINARY FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH • OUTLOOK • ANNEX 2
Slide 4: Interpump: A Delivering Group
3Q-3Q2023YTD INTERPUMP A DELIVERING GROUP ▪ € 2.240m of turnover and € 536m of EBITDA (24% on net sales) in 2023 divided between two divisions − Hydraulics and Water Jetting ▪ Hydraulics: around 75% of Group sales, EBITDA margin around 22% − Wide range of components for mobile and non-mobile hydraul
Slide 5: Excellence Track Record
2023 INTERPUMP A DELIVERING GROUP – EXCELLENCE TRACK RECORD ▪ Since IPO in 1996 a track record of excellence and GROUP 1996-2023 SALES EVOLUTION (€ million) resilience ▪ Sales: only 4 years of decrease driven by strategic 2020: COVID crisis Sales: -5.4% activities review (1) or extraordinary externa
Slide 6: Excellence Track Record: FCF and cash conversion
2023 INTERPUMP A DELIVERING GROUP – EXCELLENCE TRACK RECORD ▪ FCF: growing generation and consistent GROUP 1996-2023 FCF EVOLUTION (€ million) exploitation in worsening environment – EBITDA excellence and resilience 250.0 – TWC proactive management 200.0 • Customer quality 150.0 • Tactical supply ch
Slide 7: Sales Diversification
ANNEX INTERPUMP A DELIVERING GROUP – SALES DIVERSIFICATION GROUP 2023 sales: € 2.240m PACIFIC AREA: 11% OTHERS: 1% EARTH MOVING MACHINE: 8% GENERIC DEALERS: 16% CONSTRUCTION: 8% REST of THE WORLD: 9% CLEANING: 5% AGRICOLTURE: 10% GENERIC CONTRACTORS: 3% EUROPE: 52% OTHER INDUSTRIAL SECTOR: 8% LIFT:
Slide 8: Market Diversification
3Q-3Q2023YTD INTERPUMP A DELIVERING GROUP – MARKET DIVERSIFICATION WATER JETTING HYDRAULICS HIGH PRESSURE PUMPS DEVICES FLOW HANDLING COMPONENTS & SYSTEMS • Power take-offs, cylinders, hydraulic motors & gear • Piston pumps 1-2,000hP used in • Stainless steel agitators, mixers, pumps, valves high-pr
Slide 9: Application Diversification
3Q-3Q2023YTD INTERPUMP A DELIVERING GROUP – APPLICATION DIVERSIFICATION 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 Bac
Slide 10: Brand & Product Diversification
3Q-3Q2023YTD INTERPUMP A DELIVERING GROUP – BRAND&PRODUCT DIVERSIFICATION WATER JETTING HYDRAULICS HIGH PRESSURE PUMPS FLOW HANDLING COMPONENTS DEVICES & SYSTEMS INTERPUMP BERTOLI INTERPUMP HYDRAULICS PRATISSOLI Homogenizers WALVOIL – WHITE - EUROFLUID MUNCIE POWER Directional control valves, ALFA V
Slide 11: Strategy Milestones
3Q-3Q2023YTD INTERPUMP A DELIVERING GROUP – STRATEGY MILESTONES FLEXIBILITY • Vertically integrated 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 m
Slide 12: Strategy Milestones
3Q-3Q2023YTD INTERPUMP A DELIVERING GROUP – STRATEGY MILESTONES Volatility reduction through multiple cycles exposure Effective reaction to unexpected swings FLEXIBILITY • Vertically integrated manufacturing DIVERSIFICATION (wherever possible) Product mix and sales strategy • Across the widest possi
Slide 13: 2023-25 Group Commitments
3Q-3Q2023YTD INTERPUMP A DELIVERING GROUP – 2023-25 GROUP COMMITMENTS ▪ 2023-25 commitments, 1 target with 2 guidelines (1) 2022-25 GROUP EXPECTED SALES EVOLUTION (1) 3,500 2022-2025 sales growth: +25% ▪ One target: sales 3,000 – around 25% of total growth(2) 2,500 2,000 ▪ Two guidelines: profitabil
Slide 14: Index
INDEX ▪• GROUP OVERVIEW KEY HIGHLIGHTS ▪• 2024 OUTLOOK 4Q-2023 PRELIMINARY FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH • OUTLOOK • ANNEX 13
Slide 15: 2024 Still Normalisation, Still Acceleration
2024 STILL NORMALISATION, STILL ACCELLERATION ▪ Most recent trends underline (1) – Hydraulics: normalisation trend confirmed – Water Jetting: acceleration trend confirmed ▪ 2024 financial expectations updating – Sales: high single digit organic decrease • Impact of all 2024 perimeters changes: aroun
Slide 16: Margin Protection & FCF Exploitation Track Record
2024 MARGIN PROTECTION & FCF EXPLOITATION TRACK RECORD 2009, 2020 and 3Q2024YTD SALES, EBITDA & FCF EVOLUTION (1-2) % change compared to previous reporting period 200% 185.3% 150% 100% 63.2% 55.7% 50% 2009 2020 3Q2024YTD 0% -12.6%-13.6% -9.4% -12.8% -50% -29.7% -48.4% Sales EBITDA FCF 2 GROUP 2019-2
Slide 17: Index
INDEX DELIVERING MARGIN PROTECTION & CASH IMPROVEMENT ▪• GROUP OVERVIEW KEY HIGHLIGHTS ▪• 2024 OUTLOOK 4Q-2023 PRELIMINARY FINANCIAL RESULTS ▪ 3Q2024 FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH • OUTLOOK • ANNEX 16
Slide 18: 3Q2024 FCF Record Level
3Q2024 FCF RECORD LEVEL ▪ Delivering margin protection and cash improvement 2024 SALES & EBITDA EVOLUTION (1) % change compared to previous reporting period ‒ Delivering margin protection 1Q2024 2Q2024 3Q2024 • Consistent profitability protection 0% compared to a consistent sales decrease -2% -4% ‒
Slide 19: 3Q2024 Group: A Record FCF Generation
3Q2024 GROUP – A RECORD FCF GENERATION ▪ 3Q2024 – Sales: enduring Hydraulic normalisation mitigated by Water Jetting increasing strength and acquisitions – Profitability: consistent protection capability – NFP: reduction driven by a record FCF generation Million € 3QUARTER 3QUARTER YTD 2023 2024 202
Slide 20: 3Q2024 Divisions
3Q2024 DIVISIONS – REACTING TO THE WORST AND TO THE BEST ▪ Hydraulics – Sales: a combination between stagnation and normalisation – EBITDA: ongoing margin protection ▪ Water-Jetting – Sales: growth driven by organic evolution – EBITDA: acquisitions impact almost completely absorbed Million € 3QUARTE
Slide 21: 3Q2024 Sales: Normalisation and Acceleration
3Q2024 SALES – NORMALISATION AND ACCELERATION ▪ 3Q2024: different trends emphasis 3Q2024 GROUP SALES EVOLUTION – Hydraulics: normalisation widespread to almost all-important activities -8.0% 700 – Water Jetting: organic consistent accelleration 650 during the year 600 € 536m -9.4% 550 +1.8% -0.4% €
Slide 22: 3Q2024 YTD Sales Evolution
3Q2024 SALES – NORMALISATION AND ACCELERATION 3Q2024YTD GROUP SALES EVOLUTION -7.7% 2,000 1, 00 € 1.720m -9.4% +1.9% -0.2% € 1.589m 1,600 1,400 1,200 1,000 00 600 400 2023 M 2024 3Q2024YTD HYDRAULICS SALES EVOLUTION 3Q2024YTD WATER JETTING SALES EVOLUTION -14.0% +10.1% 1,500 1,400 € 1.269m -14.0% 70
Slide 23: 3Q2024 NFP: FCF Record Level
3Q2024 NFP – FCF RECORD LEVEL ▪ January: US$300m Private Shelf agreement NFP EVOLUTION (1) (€ m) ‒ € 100m single tranche issued 600 • 8 years average duration and 4.17% coupon 550 € 486m € 157m 500 ▪ September: NFP of € 441m compared to € 4 6m 450 € 34m € 2m € 8m € 1m € 441m as of December 2023(2) €
Slide 24: 3Q2024 NFP: CAPEX Last Important Project
3Q2024 NFP – CAPEX – LAST IMPORTANT PROJECT ▪ New Interpump Hydraulics headquarter – 62,000 sq. metres, a total area increase of around 30% – Best environmental standards ▪ Next steps – December: new machines arrival – From January 2025: gradual transfer of all activities starting from shipping depa
Slide 25: Acquisitions: Perfect Fit with Group Strategy
3Q2024 NFP – ACQUISITIONS – PERFECT FIT WITH GROUP STRATEGY ▪ Acquisitions with a perfect fit with Group growth 2024 INTERPUMP GROUP ACQUISITIONS (1) (2) and diversification strategy in 1H2024 FINANCIAL DATA IMPLIED ACQUIRED COMPANIES EBITDA Sales EV/EBITDA – Strengthening Group’s global network Mar
Slide 26: Hidrover Acquisition
3Q2024 NFP – ACQUISITIONS – PERFECT FIT WITH GROUP STRATEGY ▪ Hidrover – A product in total synergy with the Group's portfolio • Hydraulic cylinders: “double action” and “special” cylinders – A motivated and competent management team • 2024: effective margin protection in a sales normalisation trend
Slide 27: Index
INDEX ▪• GROUP OVERVIEW KEY HIGHLIGHTS ▪• 2024 OUTLOOK 4Q-2023 PRELIMINARY FINANCIAL RESULTS ▪ 3Q2024 FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH ▪ ESG PATH • OUTLOOK • ANNEX 26
Slide 28: A falling tree makes more noise than a growing forest
3Q2024 CONCRETENESS “A falling tree makes more noise than a growing forest” Lao Tzu 27
Slide 29: A Delivering Group: 2023-2025 Key Targets
3Q2024 A DELIVERING GROUP SUPPORTED GRI 2023-2025 KEY TARGETS and SDG ▪ efini ion of o p “ a bon ne ali ” s a e 2023 E ▪ Reduction of Group “Carbon intensity” 2025 ▪ Increase of renewed electricity consumption 2025 305-1 and 2 302-1 ▪ Injury rate improvement 2024 S ▪ ESG supply chain evaluation 2023
Slide 30: 2023-25 ESG Journey
3Q2024 2023-25 ESG JOURNEY – A DELIVERING GROUP ▪ 2024 actions: G.4. action approved by Group board (1) 2023-2025 ESG JOURNEY – Other 2024 actions in the finalisation phase 2024 ACTIONS • E.7: the analysis of the EU Regulation 2024/1781 E.7 Product ECO-Design confirmed the quality of the preparatory
Slide 31: G.4 Tax Compliance Consolidation
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1) ▪ Through action G. 4 of 2023-25 ESG Journey - Tax Control Framework (“TCF”) adoption – Group aims to – Integrate the fiscal strategy inside the Group strategy definition and execution – Take an important step toward fiscal transparency • Ita
Slide 32: G.4 Tax Compliance Consolidation
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1) EXTERNAL REGULATORY FRAMEWORK GROUP CODE of ETHICS 2013 & 2016 OCSE Guidelines (2) - D. Lgs. 128/2015 (3) TAX CONTROL FRAMEWORK TAX STRATEGY Goals – Principles – Guidelines - Application TAX COMPLIANCE MODEL (1) See please “Tax Compliance Con
Slide 33: G.4 Tax Control Framework
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1-2) TAX CONTROL FRAMEWORK Detect, measure, manage and control the tax risk 4 GOALS Tax regulations application Sustainable development Tax and reputational risk Tax culture spread consistency and reliability and Group asset integrity minimizati
Slide 34: G.4 Tax Compliance: 2025 and 2026-27
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1-2) 2025 2026-27 ▪ Interpump Group S.p.A TCF model and controls testing ▪ Interpump Group S.p.A. TCF model finetuning – “Test of design” and “test of effectiveness” – Annual ongoing activity ▪ Evaluation of possible extension to other Group Ita
Slide 35: G.4 Tax Compliance: 2028
3Q2024 2024 ACTIONS – G.4 TAX COMPLIACE CONSOLIDATION (1-2) 2028 ▪ Interpump Group S.p.A. TCF model finetuning – Annual ongoing activity ▪ Other Group Italian entities TCF model finetuning – Annual ongoing activity Pending release of implementation guidelines by Italian Tax Authorities ▪ Interpump G
Slide 36: 2025 Actions: S.4 Global Mobility Program
3Q2024 2025 ACTIONS – S.4 GLOBAL MOBILITY PROGRAM (1) GLOBAL MOBILITY PROGRAM 4 GOALS Group strategy Group 2023-25 ESG Journey Professional growth Value creation implementation alignment fast track Mobility is key tool for driving Mobility is a key lever Mobility promotes Mobility accelerates profes
Slide 37: A Delivering Group: ESG timeline
3Q2024 A DELIVERING GROUP 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 ▪ E.4 - Circular economy (phase 1) ▪ E.3 - Increase of renewable energy co
Slide 38: Index
INDEX ▪• GROUP OVERVIEW KEY HIGHLIGHTS ▪• 2024 OUTLOOK 4Q-2023 PRELIMINARY FINANCIAL RESULTS ▪ 3Q2024 FINANCIAL RESULTS • GROUP SUSTAINABILITY PATH ▪ ANNEX • OUTLOOK • ANNEX 37
Slide 39: Annex Disclaimer
ANNEX ANNEX DISCLAIMER 38
Slide 40: Alternative Performance Measures
ANNEX ANNEX M − M The Group uses several alternative measures that are not identified as accounting parameters in the framework of the IFRS standards in order to allow the trend of economic operations and the Group's financial position to be better evaluated. Such indicators can also assist the dire
Slide 41: Definitions
ANNEX ANNEX M − M The Group uses some additional terms too, below the related definitions: ▪ Organic variation: variation at constant perimeter and FX ▪ Trade Working Capital: NWC with “Trade Payable” net of CAPEX Trade Payable ▪ Buy-back: purchase of treasury shares less Proceeds from the sale of t
Slide 42: Disclaimer: Forward Looking Statements
ANNEX DISCLAIMER – FORWARD LOOKING STATEMENTS This document has been prepared by Interpump Group S.p.A for not constitute an offer to sell or a solicitation to buy or subscribe to use during meetings with investors and financial analysts and is Company shares. Neither this document nor a portion the
Slide 43: 3Q2024
ANNEX 3Q2024 42
Slide 44: Sales Details: Organic Evolution on Quarterly Basis
ANNEX SALES DETAILS – ORGANIC EVOLUTION ON QUARTELY BASIS GROUP 2020-2024 ORGANIC GROWTH 50% EVOLUTION by QUARTER 39.4% 40% 2020: -12.6% - 2021: +20.1% - 2022: +13.7% - 2023: +6.9% - 2024YTD: -9.4% 30% 17.9% 18.7% 20% 15.7% 14.2% 10% 11.6% 14% 9.1% 12.6% 12.5% 4% 0% -3.4% -10% -1.7% -11.2% -9.2% -16
Slide 45: Acquisition Details
ANNEX ACQUISITION DETAILS 2024 INTERPUMP GROUP ACQUISITIONS FINANCIAL DATA (1) IMPLIED Consolidated since ACQUIRED COMPANIES EBITDA Additional Total EV/EBITDA Where Sales Margin Information consideration PP CHINA April 2024 9 April YRP FLOW TECNOLOGY € 10m 10% - € 2.9m 2.9x Water Jetting division Ch
Slide 46: Annex 2023
ANNEX ANNEX 2023 45
Slide 47: 2023 Sales Details: Group
ANNEX 2023 – SALES DETAILS – BREAKDOWN (1) – GROUP GROUP 2023 sales: € 2,240m PACIFIC AREA: 11% OTHERS: 1% EARTH MOVING MACHINE: 8% GENERIC DEALERS: 16% CONSTRUCTION: 8% REST of THE WORLD: 9% CLEANING : 5% AGRICOLTURE : 10% GENERIC CONTRACTORS: 3% EUROPE: 52% OTHER INDUSTRIAL SECTOR: 8% LIFT: 7% STE
Slide 48: 2023 Sales Details: Hydraulics
ANNEX 2023 – SALES DETAILS – BREAKDOWN (1) – HYDRAULICS HYDRAULICS 2023 sales: € 1,634m OTHERS: 1% PACIFIC AREA: 10% EARTH MOVING MACHINE: 11% GENERIC DEALERS: 18% REST of THE WORLD: 9% CONSTRUCTION: 8% OTHER INDUSTRIAL SECTOR: 9% AGRICOLTURE : 14% F&B: 1% ENERGY&UTILITIES: 1% MINING: 1% SHIPYARD-MA
Slide 49: 2023 Sales Details: Water Jetting
ANNEX 2023 – SALES DETAILS – BREAKDOWN (1) – WATER JETTING WATER JETTING 2023 sales: € 606m PACIFIC AREA: 13% OTHERS: 1% CONSTRUCTION: 8% GENERIC DEALERS: 11% ADAPTORS INDUSTRIAL VEHICLES: 4% AUTOMOTIVE: 4% REST of THE WORLD: 11% SHIPYARD-MARINE: 3% CLEANING: 17% OIL&GAS: 4% RAILWAY: 1% ENERGY&UTILI
Slide 50: ESG Path
ANNEX ESG PATH (1) Please refers to Group web site for specific documentation on the topic (“2023 ESG Activities Overview”, 12 January 2024) 49
Slide 51: ESG Plan: Climate Change
ANNEX ESG 2023-25 PLAN – LEADING TO 2030-50 TARGETS E ▪ 3 main streams – Climate change – Product life cycle – Water efficiency ▪ Formalisation of Group “E” strategy and policies is the cornerstone ▪ Approximately € 10m of CAPEX and not material impact on Group G&A in the plan horizon – CAPEX: aroun
Slide 52: ESG Plan: Climate Change and Product Life Cycle
ANNEX ESG 2023-25 PLAN – LEADING TO 2030-50 TARGETS E ACTION ID DESCRIPTION GRI and SDG KPI TIMING K.P.I. Carbon intensity reduction tCO2eq/€ (1) ▪ Focus on Scope 1 and 2 Base year: 2021 E.2 ▪ Main leverages: photovoltaic plants installation Target: -30% Target year: 2025 and renewable purchase ener
Slide 53: ESG Plan: Water Efficiency
ANNEX ESG 2023-25 PLAN – LEADING TO 2030-50 TARGETS E ACTION ID DESCRIPTION GRI and SDG KPI TIMING WATER EFFICIENCY Water monitoring system ▪ Phase 1: mapping of the installed water Base year: 2022 E.6 monitoring systems across the Group N.A. Target year: 2025 ▪ Phase 2: implementation of a continuo
Slide 54: ESG Plan: Health & Safety
ANNEX ESG 2023-25 PLAN – EXPANDING THE SILENT GROWING FOREST S ▪ 4 main streams – Health & safety – People development – Responsible supply chain – Diversity & inclusion ▪ “Pilot projects” will be crucial to capitalise on already existing best practices at subsidiaries level – Walvoil for “ESG suppl
Slide 55: ESG Plan: People Development
ANNEX ESG 2023-25 PLAN – EXPANDING THE SILENT GROWING FOREST S ACTION ID DESCRIPTION GRI and SDG KPI TIMING HEALTH & SAFETY K.P.I. % Group turnover ISO 45001 extension Base year: 2021 S.2 ▪ Focus on subsidiaries with manufacturing sites Target year: 2027 Base: 22% Target: 45% K.P.I. Increase of non-
Slide 56: ESG Plan: Responsible Supply Chain
ANNEX ESG 2023-25 PLAN – EXPANDING THE SILENT GROWING FOREST S ACTION ID DESCRIPTION GRI and SDG KPI TIMING SUPPLY CHAIN RESPONSIBLE ESG supply chain evaluation model extension ▪ First focus on Italy (100% of manufacturing Base year: 2023 S.6 N.A. subsidiaries) Target year: 2024 ▪ Feasibility study
Slide 57: ESG Plan: ESG Cornerstone
ANNEX ESG 2023-25 PLAN – BUILDING ESG FOUNDATIONS G ▪ 3 main streams – ESG as governance cornerstone – Spread of ESG principles, actions and results inside and outside the Group – Tax compliance consolidation in line with best practices ▪ “G” actions will follow the natural path of Group governance
Slide 58: ESG Plan: Principles-Actions-Results
ANNEX ESG 2023-25 PLAN – BUILDING ESG FOUNDATIONS G ACTION ID DESCRIPTION GRI and SDG KPI TIMING ESG PRINCIPLES-ACTIONS-RESULTS Code of Ethics revision Base year: 2022 G.2 N.A. Target year: ▪ To reflect ESG principles in Code of Ethics 1H2023 SPREAD Succession plan formalization G.3 ▪ Succession pla
Slide 59: ESG Plan: Updating on ESG Journey
ANNEX ESG 2023-25 PLAN – BUILDING ESG FOUNDATIONS G ACTION ID DESCRIPTION GRI and SDG KPI TIMING ESG PRINCIPLES-ACTIONS- RESULTS SPREAD Base year: 2022 Updating on ESG journey G.6 N.A. Target year: ▪ Periodic updating on actions implementation annual 58
Slide 60: Manager's declaration
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