Innovatec (INC) Strategic Plan 2024-2026 presentation summary

Strategic positioning and business model

• Two business units combine Energy Efficiency & Renewables with Environment & Circular Economy, supported by shared corporate governance and services.

• Haiki’s 2023 reorganization groups collection, recycling, material recovery and waste disposal activities; Cobat’s five consortia serve 8,000+ existing clients.

• Energy transition services span RES development and asset management, EPC, green energy procurement, PPAs and energy communities.

• PV development portfolio includes 50+ MW for 360° service, 130 MW to be constructed, 325 MW with expected authorizations and 450 MW in pipeline.

2024-2026 operating plan

• Revenue target of €478M in 2026, up 90% vs 2023F; 2023-2026 CAGR 23.7%.

• 2026 EBITDA target of €66M and margin of 13.9%; plan targets 2023-2026 EBITDA CAGR of 32.7%.

• Environment & Circularity and Energy Efficiency & Renewables are expected to add €94M and €132M, respectively, to revenue by 2026P.

• Planned investment totals €76.7M: €54.2M hard CapEx, €19.4M M&A and €3.0M for decarbonization; hiring plan adds 137 employees by 2026.

• Net invested capital projected at €156M in 2026P; target ROI 25%, versus 12% in 2022FY.

Financial outlook and shareholder returns

• Net financial position projected to fall from €46M in 2023F to €4M in 2026P, alongside cash and cash equivalents rising from €10M to €29M.

• Plan cash generation forecasts €19M net cash to equity after €77M CapEx and M&A and €25M of financial debt reduction.

• Proposed end-plan dividend of €10M, or €0.10 per share; estimated dividend yield 5.52% and cumulative estimated yield 12.83% for 2024-2026, based on the 18 Sep 2023 share price.

• Free warrants planned for 4Q2023 at a ratio of 32 shares to one warrant; each warrant converts into one new share, with strike prices of ~€1.90, ~€2.10 and ~€2.60 across 2024, 2025 and 2027.