Innovatec (INC) Company presentation summary

First-half 2024 results

• Revenue €112M, up 16% YoY; EBITDA €15.4M, up 29%, with a 14% margin vs 12% in 1H23.

• Environment & circular economy revenue €100M, up 23% YoY; EBITDA €15.3M, in line with 1H23, as increased material recovery offset lower landfill volumes and prices.

• Energy efficiency & renewables revenue €12M, down 28% YoY amid the end of the 110% tax bonus and regulatory uncertainty; EBITDA returned to €0.8M from a €2.8M loss.

• CAPEX was €12.5M, including landfill capacity expansion, plant investments and solar development; €23.7M of M&A included Ecosavona, without cash outlay, and textile business Igers.

• Net financial position decreased following positive operating cash flows net of period investments.

Planned separation

• The spin-off is designed to transfer environment and circular-economy assets and liabilities to Haiki+ while energy-efficiency activities remain with the separated entity.

• Haiki+ shares are planned to list separately on Euronext Growth Milan; the proportional distribution provides one Haiki+ share for each share held in the separated entity.

• Completion is subject to bondholder waiver and Haiki+’s admission to listing; the transaction is planned to take effect in December 2024, with trading targeted for early January 2025.

• The spin-off transfers €10.3M of book equity to Haiki+, funded by a €5.5M capital increase and €4.8M of reserves, with no reduction in the separated entity’s share capital.

• Separate boards, audit boards and management decision-making structures are planned; warrant holders are to receive one Haiki+ warrant per existing warrant.

Energy efficiency and renewables strategy

• The three-year strategy targets stronger technical capabilities, a qualified professional and supplier network, and integrated services from design and construction through performance reporting.

• Priorities include scaling the project pipeline, developing proprietary assets to reduce reliance on incentives, expanding EPC expertise through ESI, and maintaining a steady contract backlog.

• The 2025–2027 plan, expected in early October 2024, is being revised; its stated ambition is €100M revenue by plan-end through organic growth, including self-owned plants, with asset management supporting more stable revenue.