Innovatec Spa · MIL:INC
Innovatec Spa — TP ICAP Midcap Conference (May 2023)
35 slides from Innovatec Spa's conference presentation, May 12, 2023
Slide 1: Innovatec Group Company Presentation
INNOVATEC GROUP TOWARDS A CLEANER FUTURE, TOGETHER COMPANY PRESENTATION TP ICAP Midcap Conference INNOVATEC GROUP 12 May 2023
Slide 2: Company Presentation – Innovatec in Action
COMPANY PRESENTATION INNOVATEC GROUP ✓ INNOVATEC IN ACTION ▪ MARKET OPPORTUNITIES ▪ INNOVATEC VALUE CHAIN ▪ FY2022 RESULTS ▪ GOVERNANCE & ESG ▪ INVESTMENT OPPORTUNITY
Slide 3: Today's Speakers
Raffaele Vanni Elio Catania Matteo Marini Head of Investor Chairman CEO Relations TODAY’S SPEAKERS 3
Slide 4: At the Center of Energy Transition
INNOVATEC GROUP AT THE CENTER OF ENERGY TRANSITION ENVIRONMENT & CIRCULAR ECONOMY ENERGY EFFICIENCY & RENEWABLES Energy Recovery ITALIAN LEADING and EPR driven Collection Energy Energy Efficiency INTEGRATING services Communities B2B OPERATOR ENERGY B2C PROVIDING 360- EFFICIENCY DEGREE SERVICES AND S
Slide 5: A Lead Player in the Clean Tech Industry
INNOVATEC A LEAD PLAYER IN THE CLEAN TECH INDUSTRY Vision - Shaping the future towards an alternative, sustainable development model to help Corporate, Community & People become carbon neutral by providing innovative, responsible, practical and timely solutions to environmental problems. Mission - D
Slide 6: Our Business Structure
INNOVATEC GROUP OUR BUSINESS STRUCTURE ENVIRONMENT & CIRCULAR ECONOMY ENERGY EFFICIENCY & RENEWABLES TRADITIONAL ENVIRONMENTAL SERVICES Green Up S.p.A. : Collection, Treatment, Disposal Innovatec Power: B2B / PA & B2C Energy Efficiency & Renewables Vescovo Romano & C. S.r.l.: Collection, Treatment w
Slide 7: Roadmap to Leadership
ROADMAP TO LEADERSHIP INTEGRATION OF THE OFFER MAIN DRIVERS ENVIRONMENT & CIRCULAR ECONOMY INTEGRATION EE & RENEWABLES ▪ HouseVerde exploit mkt conditions and ▪ Enhance treatment facilities EXPAND STRENGTHEN adjust on new regulatory changes BUILDING OUR ASSET ▪ Expand our customer base RENOVATION ▪
Slide 8: 2022 Company Financial Achievements
INNOVATEC 2022 COMPANY FINANCIAL ACHIEVEMENTS REVENUES +21% vs 2021 €289M NET RESULT +71% vs 2021 €10.6M PROVEN SOUND 1.5x NET DEBT/ EBI TDA FI NANCI AL DI SCI PLI NE GROUP DEVELOPMENT CONTINUES 8
Slide 9: Our Business Pattern
INNOVATEC OUR BUSINESS PATTERN Solid and continuous Revenue double digit growth Energy Efficiency: +67%, Circular Economy: +3% REVENUES EBITDA & EBIT (€M) Operating Margin growth benefitted from asset mgmt +22% CAGR 289 ‘24 REVENUES GROWTH PLAN and BU’s rebalance despite highly challenging energy PA
Slide 10: 2022 Strategic Direction Reinforced
INNOVATEC 2022 STRATEGIC DIRECTION REINFORCED CI RCULARI TY LEVERS • NEW VERTICALS IN Consolidation and Textiles RECYCLING implementation of consortium mgmt to other classes of waste - Batteries & Rechargeables new verticals in recycling • IMPLEMENTATION OF - WEEE - WEEE CONSORTIUM MGMT TO - Tyres -
Slide 11: 2023 / 2024 Focus Area
2023 / 2024 FOCUS AREA OBJECTI VES ACTI ON Optimise revenue/margin return in vertical sectors FULL EXPLOIT INTEGRATION SYNERGIES IN CIRCULAR ECONOMY, TO OPTIMISE REVENUE/MARGIN RETURN IN CI RCULARI TY VERTICAL SECTORS Improve WEEE treatment value chian ROAD MAP IN FULL EXECUTION Implement new consor
Slide 12: Market Opportunities
COMPANY PRESENTATION INNOVATEC GROUP ▪ INNOVATEC IN ACTION ✓ MARKET OPPORTUNITIES ▪ INNOVATEC VALUE CHAIN ▪ FY2022 RESULTS ▪ GOVERNANCE & ESG ▪ INVESTMENT OPPORTUNITY
Slide 13: Energy Transition Targets: Emission Reductions
INNOVATEC ENERGY TRANSITION TARGETS THE EMISSION REDUCTIONS REQUIRED AT THE EU27 ARE AMBITIOUS, BUT FEASIBLE AND NEEDED Already by 2030, emissions must decrease by at least 63% 1 compared to the year 2015 or 73% compared to 1990 levels, so that climate neutrality can be achieved by 2040. A key outco
Slide 14: Energy Transition Targets: Renewables
INNOVATEC ENERGY TRANSITION TARGETS RENEWABLES ARE NECESSARY TO ACHIEVE TARGETS 105 GW of renewables to be added from 2023 onward on an 1 annual basis. This is three times higher compared to the 2020-2022 period, when only 35GW of renewables were installed on an annual basis. From 2020 figures, at l
Slide 15: Energy Efficiency on Buildings and Industry
INNOVATEC ENERGY EFFICIENCY ON BUILDINGS and INDUSTRY B2B and B2C DEVELOPMENT on EE WILL BE IMPRESSIVE In the next decade, almost half of buildings in 1 Europe are expected to face renovations, and 80% of them by 2050, at a 3% yearly renovation rate after 2030. In Italy, 75% of buildings are energy
Slide 16: Circular Economy Targets
INNOVATEC CIRCULAR ECONOMY TARGETS ITALY AN EXCELLENCE IN RECYCLING IN THE EU MARKET RECYCLING ON CERTAIN MATERIAL NEED TO GROW WEEE: 2021 at 34.6%: far away from EU TARGET: 65% BATTERIES & RECHARGEABLES at 47%: far away from TARGET: 65% Global battery recycling mkt expected to growth by CAGR of 9%
Slide 17: We Are in an Attractive Business
EU INVESTMENTS European at least €1 trillion of sustainable Green Deal investments over the next 10 years ITALIAN GOVERNMENT INVESTMENTS IT Recovery €60 billion for the Italian Green Plan revolution and ecological transition EXAMPLE ACCESSIBLE MARKETS FOR INNOVATEC: WE ARE IN AN ATTRACTIVE BUILDINGS
Slide 18: Innovatec Value Chain
COMPANY PRESENTATION INNOVATEC GROUP ▪ INNOVATEC IN ACTION ▪ MARKET OPPORTUNITIES ✓ INNOVATEC VALUE CHAIN ▪ FY2022 RESULTS ▪ GOVERNANCE & ESG ▪ INVESTMENT OPPORTUNITY
Slide 19: Lead Player in Sustainability with a Solid Asset Base
INNOVATEC LEAD PLAYER IN SUSTAINABILITY WITH A SOLID ASSET BASE 8 SORTING & TREATMENT PLANTS 18 7 BIOGAS AND PV PLANTS 3 LANDFILLS 600kt WASTE MANAGEMENT Milan Photovoltaic Environment & Trieste Energy Community Sustainability 50 WASTE INDUSTRIAL PARTNERS Lazzate Cermenate Romano S. Pietro di Morubi
Slide 20: Environment & Circular Economy Value Chain
ENVIRONMENT & CIRCULAR ECONOMY VALUE CHAIN A vertically integrated structure, with a presence at every step of the cycle, which ensures cost efficiency and flexibility, underpinned by complementary customer service The BU serves the so-called “special waste producers” and provides environmental se
Slide 21: EE & Renewables Value Chain
EE & RENEWABLES VALUE CHAIN The BU offers to companies (B2B and PA). individuals (B2C) Integrating energy efficiency services and renewables with an EPC approach Eliospower and Albarum: development of PV plants to B2B, Farmers, in house for energy production (29,5% stake) listed in EGM Italy sto
Slide 22: End Customer Perspective Focus
END CUSTOMER PERSPECTIVE FOCUS Markets Proposition & Brands Customer Channels CleanTech aT 360° I ntegrated service portfolio on Companies that need to Go-to-market through a 3 macro areas: embark on a path to improve unique sales network. Interventions aimed at • Consultancy and innovation their en
Slide 23: FY2022 Results
COMPANY PRESENTATION INNOVATEC GROUP ▪ INNOVATEC IN ACTION ▪ MARKET OPPORTUNITIES ▪ INNOVATEC VALUE CHAIN ✓ FY2022 RESULTS ▪ GOVERNANCE & ESG ▪ INVESTMENT OPPORTUNITY
Slide 24: 2022 Increase in Revenues and Margins
INNOVATEC 2022 INCREASE IN REVENUES and MARGINS REVENUES & EBITDA (€M) EBIT (€M) NET GROUP RESULTS (€M) + 80% +150% +112% 289 18.7 10.6 238 10.7 6,5% 6.2 3,7% 7.5 5.0 161 33 13.8% 32 11% 3.1% 4.6% 4.5% 18 2.6% 11% PF20 FY PF21 FY 22 FY PF20 FY PF21 FY 22 FY PF20 FY PF21 FY 22 FY Environmental & Circ
Slide 25: Acceleration in M&A Capex to Strengthen Competitive Position
INNOVATEC ACCELERATION IN M&A CAPEX TO STRENGTHEN COMPETITIVE POSITION CAPEX M&A (€M) and HR CORE BUSINESS PORTFOLIO ACHIEVED THROUGH ATTRACTIVE M&A IN CIRC. EC. Business verticalization in WEEE and in associated materials treatment recycling Others %Share incr. 2,4 €3.6M €2.8M €2.7M €2.3M HQ: €3.6M
Slide 26: FY22 Economic Results at a Glance
FY22 ECONOMIC RESULTS AT A GLANCE REVENUES (€M) REVENUES €M 289 ✓ Organic growth in Environmental & Circular business thanks price increase despite 289 lower volumes due to industrial production decrease. 138 ✓ Energy Efficiency demonstrate a solid revenues generation in the fist half of the year, 1
Slide 27: FY22 EBITDA Conversion to EBIT Increase
FY22 AT A GLANCE EBITDA CONVERSION TO EBIT INCREASE boost ROI and ROE EBITDA CONVERTION TO EBIT (€M) RATIOS 11.8 25% 32.4 22% 0.5 ROE 14% 13% 0.9 18.7 33 12% 13.8% ROI 12% 20x 6x EBITDA A&D Amm A&D EBIT I NT. COVERAGE CE EE H EBITDA → 11.2% EBIT → 6.5% 2020PF 2021PF 2022 EBITDA Conversion increase t
Slide 28: NFP & Cash Flow
NFP & CASH FLOW NET FINANCIAL POSITION (€M) CUMULATED CASH FLOW (€M) +€M 39.7 Net Debt €M (49.7) €M (10) 2022 2021 Net Debt raised to €M 49.7 vs €M 10 as of Dec 2021, mostly due to acquisitions and minorities buy-out for €M 21.4, related financial debt for €m 14.1 and Capex for €M 20.0. While the En
Slide 29: Governance & ESG
COMPANY PRESENTATION INNOVATEC GROUP ▪ INNOVATEC IN ACTION ▪ MARKET OPPORTUNITIES ▪ INNOVATEC VALUE CHAIN ▪ FY2022 RESULTS ✓ GOVERNANCE & ESG ▪ INVESTMENT OPPORTUNITY
Slide 30: Governance and Organization
GOVERNANCE AND ORGANIZATION CORPORATE GOVERNANCE DECENTRALIZATION • BoD, Statutory Auditors and Shrs’ Meeting • Shortening decision-making chain • Risk & Internal Control Committee • Business Units Accountibility • Related Parties Committee • Nomination & Remuneration Committee DIGITALIZATION • Sust
Slide 31: ESG Target Achieved
SUSTAINABILITY COMMITTEE SET UP IN 2021 + 9 GWH OF ENERGY (100% RENEWABLE) PRODUCED BY PV AND BIOGAS PLANTS FED INTO THE NATIONAL GRID - 15% REDUCTION OF TOTAL EMISSIONS vs 2020 (-28% vs 2019) ESG TARGET ACHIEVED 48% OF THE FLOWS COMING OUT OF THE PLANTS RE-INTRODUCED INTO THE PRODUCTION CYCLE AS NE
Slide 32: Investment Opportunity
COMPANY PRESENTATION INNOVATEC GROUP ▪ INNOVATEC IN ACTION ▪ MARKET OPPORTUNITIES ▪ INNOVATEC VALUE CHAIN ▪ FY2022 RESULTS ▪ GOVERNANCE & ESG ✓ INVESTMENT OPPORTUNITY
Slide 33: Innovatec Stock
STOCK DATA – INNOVATEC SPA SHAREHOLDERS DATA Listing Market Euronext Growth Milan no. of Ordinary Shares 96.4 (M) ISIN IT0005412298 BIT INC Free Float 55% INNOVATEC STOCK Price per Share 1.41 Major Shareholder (as of 14 Apr 2023) - € 45% (Colucci Family) Mobile average 50 days 1.54 Mkt Cap (€M) (@ €
Slide 34: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT, NOR SHALL BE CONSTRUED AS, AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY TO BE USED AT AN INVESTOR PRESENTATION AND IS PROVIDED FOR INFORMATION PURPOSES ONLY. THIS DOCUMENT DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS
Slide 35: Embrace Innovation
INNOVATEC GROUP EMBRACE INNOVATION Via Giovanni Bensi, 12/5 Head of Investor Relations: Raffaele Vanni 20152 Milano ITALY Tel. +39 3351261702 Tel +39 02 41 30 51 Email: raffaele.vanni@innovatec.it fax +39 02 41 27 27 33 PEC: innovatecpower@legalmail.it