Innovatec (INC) Investor presentation summary

Business and asset base

• Two business units span environment and circular economy, plus energy efficiency and renewables, with services covering waste recovery, recycling, energy transition and decarbonization.

• Operating footprint includes 8 sorting and treatment plants, 7 biogas and PV plants, 3 landfills, 3,300 vehicles and equipment, and 600kt of waste management activity.

• Haiki Cobat serves waste producers across collection, treatment, recycling and disposal; 5 consortia cover batteries, WEEE, tyres, composites and textiles.

• Energy services include sustainability strategy, project engineering and EPC, renewable asset management, energy procurement, PPAs and energy communities.

• PV development portfolio includes 450MW in pipeline, 325MW of expected authorizations and 130MW to be constructed.

2023 context and sustainability

• 2023 was described as a transition year: industrial production slowdown and stop-start Ecobonus 110% activity weighed on revenue, margins and cash generation; PV business ramp-up took longer than forecast.

• ESG Risk Rating was 21.6, categorized as medium risk; ranking was at the 34th percentile globally and 30th percentile in Facilities Maintenance.

• Carbon plan targets a 17% emissions reduction by 2026 versus the 2022 business-as-usual scenario, through vehicle electrification, more efficient logistics and increased PV capacity.

• Renewable energy purchases and carbon credits are identified as compensation actions; Scope 3 evaluation, emissions reporting and environmental audits are included in the management plan.

Market opportunities

• Italy’s special-waste market totals 76M tons, while the current share in waste volume is below 0.9%; EU targets include 65% recycling shares for batteries and WEEE.

• Italy’s renewable capacity is projected to reach 80.3GW by 2030; 35GW of renewable sources are expected to be added from 2022 to 2030, averaging 3.5GW annually.

• Expected Italian demand drivers include 4.3M new electric and hybrid registrations in 2023–2026, €30–40bn in building renovations through 2030, and 9GW of PV installations in 2022–2026.

• EU textile waste is 5.8M tons annually, while less than 1% of clothing material is recycled into new clothing; Italy’s green-fashion market is forecast to grow at 5.4% CAGR through 2026.