Maire S.p.a. · MIL:MAIRE
Maire — Maire Tecnimont — Investor Day (March 2023)
60 slides from Maire's investor day presentation, Mar 2, 2023
Slide 1: 2023 Capital Markets Day
March 2, 2023 2023 CAPITAL MARKETS DAY UNBOXING THE FUTURE
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Maire Tecnimont S.p.A. (the “Company”) solely for use in the presentation of the Maire Tecnimont Group (the “Group”). This document does not constitute or form part of any offer or invitation to sell, or any solicitation to purchase any security issued b
Slide 3: Agenda
AGENDA 01 F. Di Amato, Chairman and Founder A NEW DAY FOR MAIRE 05 F. Fritelli, CFO FY 2022 FINANCIAL RESULTS 02 A. Bernini, CEO SHAPING THE ENERGY TRANSITION 06 A. Bernini, CEO 2023-2032 STRATEGIC PLAN 03 G. Sale, Corporate & Business Strategy SVP A GLOBAL REVOLUTION 07 A. Bernini, CEO INVESTMENT C
Slide 4: A New Day for Maire
01 A NEW DAY FOR MAIRE Fabrizio Di Amato
Slide 5: Shaping the Energy Transition
02 SHAPING THE ENERGY TRANSITION Alessandro Bernini
Slide 6: We are pioneering energy transition
WE ARE PIONEERING ENERGY TRANSITION Being the first Energy Services company with a dedicated vehicle for the Energy Transition Laying the foundation of a unique and cross- integrated expertise in the Energy Transition Innovating, researching and developing solutions to tackle clients' challenges Imp
Slide 7: Ground-breaking activities adjacent to our core
GROUND-BREAKING ACTIVITIES ADJACENT TO OUR CORE Ground-Breaking Activities Interconnected with Our Business Bio-fuels Bio-polymers Plastic Waste Upcycling Waste to X Circular H2 CO2 Capture and Valorization Green and Electric Blue H2 Renewable to Synfuels and Chemicals TRADITIONAL BUSINESS Empowerin
Slide 8: An unparalleled wealth of know-how and experience
AN UNPARALLELED WEALTH OF KNOW-HOW AND EXPERIENCE Enhanced know-how & skills New set of competencies & tech around sustainable solutions Established key relationships & partnerships Foundation to innovation and development …Positioning Maire as a top-notch Energy Transition Developed proprietary tec
Slide 9: It was an early intuition… that is now a reality
IT WAS AN EARLY INTUITION… THAT IS NOW A REALITY MAIRE MARKET CLIENTS’ PIONEERING MOVE EVOLUTION EMERGING NEEDS 9
Slide 10: A Global Revolution
03 A GLOBAL REVOLUTION Giovanni Sale
Slide 11: A complex context ahead of us
A COMPLEX CONTEXT AHEAD OF US Key external pressures Responses Global food security Population growth/GDP Institutions (Policies and pledges) Industry decarbonization Social pressures Industry New energy carriers Global warming Customers Sustainable materials Institutional and customer response on t
Slide 12: 4 interconnected clusters to address key pressures
4 INTERCONNECTED CLUSTERS TO ADDRESS KEY PRESSURES Key external pressures Clusters Global food security Nitrogen to match GDP expansion and population growth Industry decarbonization H2 and to achieve feasible emissions reduction Circular Carbon New energy carriers Fuels to move the world with low c
Slide 13: Green and blue ammonia growth to support demand
GREEN AND BLUE AMMONIA GROWTH TO SUPPORT DEMAND Nitrogen fertilizer market Ammonia demand and feedstock [Mt] [Mt] 200 >1% 600 +4% 150 400 100 200 50 By feedstock 0 0 2020 2030 2040 2050 2020 2050 2050 Current uses Green Ammonia Ammonia Ammonia Nitrate Ammonia (non fert.) Maritime fuels Blue Ammonia
Slide 14: H2 and CCS key to decarb hard to abate sectors
H2 AND CCS KEY TO DECARB HARD TO ABATE SECTORS 1 Hydrogen production CCS1 projects [Mt] [Mt] 600 6,600 +6% 400 800 600 Gap of projects 200 400 vs. SDS4 scenario 200 0 0 2020 2030 2040 2050 2020 2030 SDS4 2050 SDS4 Fossil Renewables with CCS1 Operational Under development To be developed % CAGR Susta
Slide 15: SAF and bio / e-methanol to significantly grow
SAF AND BIO / E-METHANOL TO SIGNIFICANTLY GROW SAF demand Methanol production [Mt] [Mt] 200 600 +39% 150 +6% 400 100 200 50 0 0 2020 2050 2020 2050 Fossil Methanol E-methanol & Circular Methanol % CAGR Bio-methanol % CAGR Sustainable Aviation Fuels (SAF) Bio / E-methanol growing importance, as key t
Slide 16: Resilient growth in polyolefins, increased share of bioplastics
RESILIENT GROWTH IN POLYOLEFINS, INCREASED SHARE OF BIOPLASTICS Polyolefins demand Bioplastics demand [Mt] [Mt] +3% 14 +7% 300 12 10 200 8 6 100 4 2 0 0 2020 2030 2040 2050 2020 2030 2040 2050 Polyethylene Polypropylene Biodegradable Plastic Non-Biodegradable Plastic % CAGR % CAGR Sustained growth i
Slide 17: Energy transition as a world mega-project, supported by massive funding
ENERGY TRANSITION AS A WORLD MEGA-PROJECT, SUPPORTED BY MASSIVE FUNDING Social Climate Fund Energy Transition Budget Just Transition Fund >2 Trillions € Already Funded Inflation Reduction Act REPowerEU National Government Fund Note: Selected fundings, not exhaustive 17
Slide 18: What the market is looking for
WHAT THE MARKET IS LOOKING FOR TECHNOLOGICAL KNOW-HOW ABILITY TO DRIVE A BROAD PORTFOLIO BROADER ECOSYSTEM OF SOLUTIONS PARTNER WITH INTEGRATED APPROACH FLAWLESS DELIVERY IN A BREAKTHROUGH COMPLEX ENVIRONMENT INNOVATION 18
Slide 19: Maire, Evolve to Lead
04 MAIRE, EVOLVE TO LEAD Alessandro Bernini
Slide 20: Unboxing Our Client-Driven DNA
UNBOXING OUR CLIENT-DRIVEN DNA Alessandro Bernini
Slide 21: It's in our DNA to offer an integrated approach
IT’S IN OUR DNA TO OFFER AN INTEGRATED APPROACH Understanding Engineering Innovative Executing Complex Clients’ Needs Solutions Projects A full project-lifecycle support, beyond the EPC traditional value chain 21
Slide 22: Leveraging our consolidated worldwide footprint
LEVERAGING OUR CONSOLIDATED WORLDWIDE FOOTPRINT STARTING FROM SOLID ACHIEVEMENTS Nitrogen 60% Market Share Urea Licensing H2 and Circular Carbon 50 years Hydrogen tech Fuels and Chemicals WE DRIVE TRADITIONAL AND NEW CLIENTS IN THEIR ENERGY TRANSITION JOURNEY Extensive Experience Polymers #1 in Poly
Slide 23: Our strong commitment to ESG
OUR STRONG COMMITMENT TO ESG OUR JOURNEY TO BUILD A SOLID CULTURE AROUND ESG IN-COUNTRY VALUE FOCUS SUSTAINABLE SUPPLY CHAIN ESG 2050 TARGET BRINGING VALUE TO CLIENTS, TO MAIRE AND TO THE WORLD PEOPLE AS SUSTAINABILITY-ENABLER 23
Slide 24: A new business units' structure, to unbox the future
A NEW BUSINESS UNITS' STRUCTURE, TO UNBOX THE FUTURE MAIRE CORE BUSINESS Nitrogen H2 and Circular Carbon SUSTAINABLE INTEGRATED TECHNOLOGY E&C SOLUTIONS SOLUTIONS Fuels and Chemicals Polymers TWO PARTS OF A UNICUM 24
Slide 25: Providing tomorrow's technology today: Sustainable Technology Solutions
PROVIDING TOMORROW'S TECHNOLOGY TODAY SUSTAINABLE TECHNOLOGY SOLUTIONS Process Design Package Proprietary Services and Selected Technology Equipment & Digital Specialty Licensing Basic Catalysts Solutions Solutions Engineering Design 25
Slide 26: Delivering future-proof plants today: Integrated E&C Solutions
DELIVERING FUTURE-PROOF PLANTS TODAY INTEGRATED E&C SOLUTIONS Engineering Front End Engineering & Procurement Upgrading & Operations & Engineering Procurement Construction Revamping Maintenance Design (Management) 26
Slide 27: Integrated organization, a source of competitive advantage
INTEGRATED ORGANIZATION, A SOURCE OF COMPETITIVE ADVANTAGE SUSTAINABLE INTEGRATED TECHNOLOGY E&C SOLUTIONS SOLUTIONS 1 2 1. Upon closing expected by April 15th 2. Upon closing expected by April 30th 27
Slide 28: Project development, the big enabler
PROJECT DEVELOPMENT, THE BIG ENABLER SUSTAINABLE INTEGRATED TECHNOLOGY E&C SOLUTIONS PROJECT SOLUTIONS DEVELOPMENT 1 2 1. Upon closing expected by April 15th 2. Upon closing expected by April 30th 28
Slide 29: Project development
PROJECT DEVELOPMENT REMARKS OUR DISTINCTIVENESS Investors & Financial Sponsors Involvement Project Structuring, Capital Structuring Feedstock, EPC, Offtake PROJECT DEVELOPMENT Co-Development Public Founding & & Partnering Grants Coordination 29
Slide 30: Unboxing Our Growth Engines
UNBOXING OUR GROWTH ENGINES Alessandro Bernini
Slide 31: Unlocking embedded value to reap the full growth
UNLOCKING EMBEDDED VALUE TO REAP THE FULL GROWTH Unlock embedded technology value Increasing flexibility while decoupling Tech and EPC business RIDING OUR Enhancing our integrated approach NEW CYCLE 31
Slide 32: ...Scaling up to exploit limitless opportunities
...SCALING UP TO EXPLOIT LIMITLESS OPPORTUNITIES Seize the growing request of Energy Transition Technology Develop and scale-up new already- Growth drivers to in-pipeline technology unbox Sustainable Technology Solutions Pursue and follow up M&A process to expand tech portfolio Collaborate with IE&C
Slide 33: ...And evolving to expand integrated services
...AND EVOLVING TO EXPAND INTEGRATED SERVICES Reap the growth of reference markets Implement Sustainable Technology Solutions offerings Growth drivers to unbox Integrated E&C Enhance revamping and upgrading Solutions of existing plants Offer comprehensive services to serve clients from FEED to O&M 3
Slide 34: Unboxing Our Technology Leadership
UNBOXING OUR TECHNOLOGY LEADERSHIP Antonio Batistini
Slide 35: Our DNA is technology, our heritage is innovation
OUR DNA IS TECHNOLOGY, OUR HERITAGE IS INNOVATION 2,041 Patents 4x Revenues 155 families 2,041 60% Share Urea Licensing - #1 patents 1,428 323 patents patents H2 Technology since the 1970s 29 108 155 families families families 4 R&D centers across the world 2009 2019 2022 35
Slide 36: Comprehensive tech offering on nitrogen
WITH A COMPREHENSIVE TECH OFFERING ON NITROGEN... Focus Technology Areas Nitrogen Technologies Micro-scale Sustainable Green Green Power-to- fertilizer Ammonia Fertilizer Fertilizers 2x Reducing carbon Supporting Implementing Offering on site Novel Areas and energy Ammonia role as Carbon free Carbon
Slide 37: Exceptional innovation in H2 and circular carbon
…EXCEPTIONAL INNOVATION IN H2 AND CIRCULAR CARBON Focus Technology Areas H2 & Circular Carbon Technologies Sulphur & Carbon fossil Clean Green feedstock Hydrogen Hydrogen cleansing and Carbon Capture 3x Reducing Exploiting new Capturing emissions for electrolizer tech Novel Areas emissions from alre
Slide 38: Value generation in fuels and chemicals
…VALUE GENERATION IN FUELS AND CHEMICALS Focus Technology Areas Fuels and Chemicals Technologies Renewable Waste to Fuels and E-Fuels and Chemicals™ Chemicals - E-Chemicals Technologies 2G bioethanol, HVO2, SAF3 5x Converting Converting Producing carbon biomass and biomass and neg. Fuels and Novel A
Slide 39: Empowering the recycling of polymers
...EMPOWERING THE RECYCLING OF POLYMERS Focus Technology Areas Polymers Technologies MyReplast™ Chemical Bio-Polymers Mechanical Recycling (e.g., Conser2) Upcycling (e.g., CatC1) 3x Upcycling and Recycling Producing of compounding thermoplastic Novel Areas biodegradable Plastic Polymers Under dev. T
Slide 40: FY 2022 Financial Results
05 FY 2022 FINANCIAL RESULTS Fabio Fritelli
Slide 41: Rating improvement proves the value of ESG strategy
RATING IMPROVEMENT PROVES THE VALUE OF ESG STRATEGY Main Rating Rating 62.21/100 28.6/100 Gold A- B Score disclosure rating > peers’ average Medium Risk Trend vs. 2020/21 41
Slide 42: Order intake
ORDER INTAKE 2021 Intake by Geography Order Intake (€m, 2010-2022) Asia Africa 12% 21% 6,433 14% Europe 53% 3,607 Middle East 3,209 2,659 2,732 2022 Intake by Geography Avg. 2010- 2021 (€m) Americas Europe 2,919 15% 17% 17% Africa 4% 2010 2015 2020 2021 2022 47% Middle East Asia Strong and diversifi
Slide 43: Backlog
BACKLOG Pro-Forma Backlog by Business Unit1 Backlog by Geography1 (Dec 31, 2022) (%, Dec 31, 2022) PRO-FORMA €8,614m Americas BACKLOG 6% Europe 21% 15% SUSTAINABLE Africa TECHNOLOGY €159m SOLUTIONS Asia 7% INTEGRATED IE&C €8,455m SOLUTIONS 51% Middle East 1. Not including the Russian projects accoun
Slide 44: Commercial pipeline
COMMERCIAL PIPELINE Consolidated Commercial Pipeline (€bn, Dec 21 - Dec 22) 53.8 54.0 51.9 52.7 0.6 47.1 11.2 42.2 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 IE&CS - standalone IE&CS - generated by STS STS 44
Slide 45: Income statement
INCOME STATEMENT Revenues EBITDA Net Income (€bn, 2021-2022) (€m, 2021-2022) (€m, 2021-2022) +21% +20% +12% 3.5 209.3 90.4 2.9 173.7 80.5 2021 2022 2021 2022 2021 2022 6.1% 6.0% X% Growth X% EBITDA margin % 45
Slide 46: Business units' reporting
BUSINESS UNITS' REPORTING Up to FY 2022 From FY 2023 onwards Sustainable Integrated E&C Hydrocarbons Green Energy Technology Solutions Solutions • Non-green business • Green business • Licensing • FEED • PDP & Basic • EP Engineering • EPC(M) • Proprietary Equipment • Upgrading & Revamping • Services
Slide 47: 2022 pro-forma income statement
2022 PRO-FORMA INCOME STATEMENT STS IE&CS Total REVENUES €182.9m €3,280.8m €3,463.7m BUSINESS €49.8m €248.9m €298.7m PROFIT 27.2% 7.6% 8.6% €35.4m €173.9m €209.3m EBITDA 19.4% 5.3% 6.0% 47
Slide 48: Adjusted net financial position
ADJUSTED NET FINANCIAL POSITION Cash Flow Bridge (€m, 2022, ex-IFRS 16) 41.8 60.1 17.4 117.0 8.1 93.8 149.0 22.4 14.7 13.7 2.9 8.9 44.1 Net Cash Operating Dividends Taxes Capex Net Treasury Net Cash Operation Taxes Net Capex Net Cash Dec 211 Cash Finacial Shares Jun 221 Cash Finacial Dec 221 Flows C
Slide 49: Adjusted net trade working capital
ADJUSTED NET TRADE WORKING CAPITAL Adjusted Net Trade Working Capital (€m, Dec 22) -6.0 -388.2 Mainly driven by Amur netting 33.0 -113.8 -115.8 173.5 Driven by projects’ advancements 222.0 Driven by projects’ -32.3 advancements Dec 21 APs Adv. To Suppliers Net WIP Adv. From Clients ARs Others Dec 22
Slide 50: Full year 2022 wrap-up
FULL YEAR 2022 WRAP-UP Solid fundamentals have driven double-digit growth in 2022 Strong cashflow generation has contributed to significant increase in Net Cash position Total backlog provides a solid foundation to 2023 Revenues and beyond Strong commercial pipeline of 54 billions supported by lead
Slide 51: 2023-2032 Strategic Plan
06 2023-2032 STRATEGIC PLAN Alessandro Bernini
Slide 52: 2023 guidance
2023 GUIDANCE 2022 2023 REVENUES €3.5bn €3.8 - 4.2bn • STS €0.2bn €0.2 - 0.3bn • IE&CS €3.3bn €3.6 - 3.9bn EBITDA margin 6% 6-7% • STS 19% 21-25% • IE&CS 5% 5-6% CAPEX €26.8m €95 - 115m • STS €18.6m €70 - 80m • IE&CS €8.2m €25 - 35m Net Cash €93.8m In line with 2022 Proposed FY 2022 dividends of €40
Slide 53: 10Y time-span to represent group transformation
10Y TIME-SPAN TO REPRESENT GROUP TRANSFORMATION Taking into consideration: • Market outlook and demand growth 10 year • Existing technologies and those in which we are investing Strategic Plan • Strategic business model change MAIN DRIVER OF GROWTH FOR THE BUSINESS UNIT Sustainable Technology Soluti
Slide 54: Group ambition to grow well beyond 2x by 2032
GROUP AMBITION TO GROW WELL BEYOND 2X BY 2032 Revenues EBITDA Capex Net Cash (€bn) (€m) (€m) (€m) 600-700 8-10% CAGR 3x-4x 8x-10x 450-550 2x-3x 3.5 209 2023 94 27 95-115 2022 2027 2032 2022 2027 2032 2022 2023- 2028- 2022 2027 2032 2027 2032 Stable Potential IE&CS STS 6% 7-8% 8-9% dividend pay-out r
Slide 55: STS: solid growth planned
STS: SOLID GROWTH PLANNED Revenues EBITDA Capex (€m) (€m) (€m) 200-300 7x-8x 18-20% CAGR 200-250 2023 183 35 19 70-80 2022 2027 2032 2022 2027 2032 2022 2023-2027 2028-2032 19% 20-25% 20-25% Cumulated X% EBITDA Margin % 55
Slide 56: IE&CS: consistent growth driven by ET segments
IE&CS: CONSISTENT GROWTH DRIVEN BY ET SEGMENTS Revenues EBITDA Capex (€bn) (€m) (€m) 350-400 6-8% CAGR 2x-3x 250-300 3.3 174 2023 8 25-35 2022 2027 2032 2022 2027 2032 2022 2023-2027 2028-2032 5% 5-6% 6-7% Cumulated X% EBITDA Margin % Note: ET: Energy transition 56
Slide 57: Expertise growth
EXPERTISE GROWTH 1.3x Headcount growth by 2027 1.7x Headcount growth by 2032 vs. 2022 +75% Engineering department vs. 2022 Combining organic and inorganic levers 57
Slide 58: Investment Case
07 INVESTMENT CASE Alessandro Bernini
Slide 59: Investment case: buy growth at today's value price
INVESTMENT CASE Recognized Flexible and Proven execution Foster growth …And accelerating Strong financial technological adaptable business capability to deliver through continuous via battle-proof position and leadership in Energy model spanning the a significant backlog breakthrough acquisition pla
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