Industrie De Nora

Investor Presentation • Aug 4, 2022

1H-2022 Consolidated Results

Key Highlights

Progressing on H2 projects to support future growth

Project completion: 2026

De Nora Start of Supply: 2022

Camacari Industrial Complex (1) (First industrial scale green Hydrogen Site in Brazil)

I Phase Project Size: 60 MW

Project KPIs:

• Green Hydrogen:10,000 tons/y
• Green Ammonia: 60,000 tons /y

Project completion: end 2023

FURTHER POSITIVE DEVELOPMENTS

• ◼ EU Commission approves public support for Important Project of Common European Interest (IPCEI Hy2Tech) for €5.4bn of which €1bn for Italy
• ◼ De Nora Italy Hydrogen Technologies (90% De Nora-10% Snam) selected among eligible companies to contribute to the development of next generation high- pressure and high-current density containerized electrolysers
• ◼ The project presented by the Company is related to the design and construction of a large-scale production hub (Gigafactory) for stack, systems and components for water electrolysis and fuel cells with a capacity up to 2GW

(1) Based on publicly available information

Best-in-class backlog and evolving pipeline of opportunities provide visibility around solid growth

Source: Company Information and estimates as of 1H 2022. ¹Backlog as of 1H 2022. ²Refers to order secured by tk nucera as of Apr-2022 that are contracted under the toll manufacturing agreement but not yet converted into an order for De Nora. ³ Roland Berger assuming 45-65% load factor

Strong Organic Revenue Growth

All-time-high backlog providing revenue visibility

Key highlights

◼ All-time high backlog as of 1H 2022 (€616.3m, +12.6% vs. Full Year 2021 results)

Electrode Technologies

◼ Benefits from multi-year contracts and recurrent aftermarket

Water Technologies

◼ Most of the backlog (65%) executed in the same year, with ensured sales covering 78% of yearly expected sales

Energy Transition

◼ Confirming Backlog ramp up: in July doubling vs 1Q2022

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Note: Backlog signed orders in execution. ¹ Ratio between Backlog in FY (only the portion expected to be executed in FY+1) and Revenues in FY+1.

Proven ability to pass-through raw materials price increase

Key highlights

• ◼ In 1H 2022, COGS have been in line with FY 2021 relatively to sales, confirming De Nora's ability in passing-through raw materials price increments
• ◼ SG&A costs in 1H2022 have been inflated by headcount increase (+467 average headcount in 1H 2022 vs +442 in 1H 2021) and T&E
• ◼ Corporate costs in H1 2022 have been slightly higher compared to H1 2021 with an increase of around 1 million in Other costs mainly due to travel, ICT costs (mostly licences due to HC increase at Group level) and new projects related to Global Operations
• ◼ On a relative basis, the increase registered in Revenues more than offsets the rise in costs

Premium Profitability with Increasing Margins

Electrode Technologies:

◼ Surge in profitability driven by: (i) revenue growth exploiting operating leverage effect and (ii) continuous control of fixed costs

Water Technologies:

◼ Strong increase in profitability mainly driven by gross margin improvement and volume growth for Pools, partially offset by higher opex (labour costs, selling costs and G&A)

Energy Transition

◼ Positive at Gross Margin Level Negative Ebitda mainly due to R&D costs

¹Includes Energy Transition for 1H 2021.

Net working capital evolution

(€'m)

Inventories % of sales	37.8%	36.7%
DSO	65.0	77.0
DPO	46.0	43.0

• ◼ Net Working Capital has reached €322.9m in 1H 2022 as a result of:
• ➢ Inventory increase driven by volume and safety stock of noble metal price increase (+€6m) and other raw materials stock (~50% of total inventory)
• ➢ increase in receivables (+€19m) and construction contracts (€7.5m)
  • DSO on quarterly basis has been ~75 days in 1H 2022 DSO to further decrease to around 70 within year end
  • Inventory ratio heading below 35% within year end

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Net Financial Position Evolution

(€'m)

Key highlights

• Strong operating performance offsetting increase in NWC and resulting in a stable net financial position vs FY2021
• Cash flow from operating activities fully financed NWC, capex and dividends
• IPO Capital Increase reducing NFP/Ebitda ratio to ~0.2x

¹Of which: (i) Income taxes paid of €20.4m; (ii) Net Interest and Net other financial expense paid of €2,5m; (iii) Net Other €4,9m.

Update on 2022 Guidance

Key highlights

▪ Revised Revenue

▪ Significant increase in Pools business thanks to staycation effect, market demand and backlog

▪ Revised Profitability

• ET: (i) operating leverage effect coupled with continuous control of fixed costs (ii) different product mix (ii) concentration of high marginality projects
• WT (POOLS): volume growth along with gross margin improvement
• ETR: double digit gross margin

Additional Materials

© 2022 De Nora

Income Statement

(€m)	2021 H1	2022 H1	Q2 2021	Q2 2022
Revenue	253 7	410 5	142 4	210 4
Growth (%) YoY
Change in inventory of finished goods and work in progress	15 5	14 5	4 0	7 7
Other income	2 0	2 5	3 1	0 9
for materials , supplies , excluding utilization of provision Costs , consumables and goods raw	(116 7)	(190 0)	(64 0)	(100 5)
Personnel excluding utilization of provision expenses,	(54 8)	(83 5)	(28 1)	(52 3) ,
for services , excluding utilization of provision Costs	(51 5) ,	(69 6)	(28 9)	38 1)
Other operating excluding utilization of provision expenses,	(5 1)	(4 8)	(3 4)	(2 5)
EBITDA	42 9	79 6	23 2	25 6
Margin (%)	17%	19%	16%	12%
Amortization and depreciation	(12 8)	(13 6)	(6 5)	(6 8)
Reinstatement (write down) of equipment property , plant and	0 1	(3 1)	0 1	(2 8)
charges1 Net provision for risk and	(0 5)	(0 1)	(0 3)	0 2
EBIT	29 8	62 8	16 5	16 1
Margin (%)	12%	15%	12%	8%
2 Share of profit of equity-accounted investees	3 4	(5 6)	2 4	0 8
Finance income	6 8	21 5	1 7	14 1
Finance expenses	(7 9)	(17 8)	(3 4)	(11 7)
Profit before tax	31 1	61 0	17 1	19 2
Income tax expense	(8 6)	(21 2)	(4 1)	(6 1)
Profit for the period	23 5	39 7	13 0	13 2

Source: Company Information. ¹This item includes the utilization of provisions on the following Income Statement line items: Costs for raw materials, Consumables, supplies and goods, Personnel expenses, Costs for services, Other operating expenses

2.. Negative €5.6m is made up as follows: € (4.0) m refer to a late adjustment in the net profit of tk Nucera as of December 2021 that was communicated to De Nora after the approval of its FY 2021 consolidated financials, € (2.4) m refer to the P&L impact of the Preferred dividends distributed in March 2022 by tk Nucera to its other shareholder thyssenkrupp Projekt 1 GmbH and € 0,8 is the share of profit for the period January-March 2022 since financials as of Juneof tk Nucera are not yet available.

ADDITIONAL FINANCIALS

Income Statement | Focus on EBITDA Adjustments

(€m)	2021 H1	2022 1H
Sales	253 7	410 5
EBITDA	42 9	79 6
Margin (%)	16 9%	19 4%
Costs relative DND fire	0 9
Terminations (labor expenses) costs legal +	0 2	0 3
Costs relative to IPO process		2 6
relative integration reorganization Costs to M&A , and company ,	0 1	0 0
Costs relative to startup of Tech LLC – US plant De Nora ,	0 5	0 1
relative Covid Costs to -19	0 3
Advisory for special projects costs		0 3
Management Incentive Plan		19 4
recurring Other costs non	0 2	0 1
Adj EBITDA	45 1	102 3
Margin (%)	8% 17	9% 24

Balance Sheet

(€m)	2021	2022 H1
Intangible assets	132 8	139 7
Property , plant and equipment	167 6	167 8
Equity-accounted investees	121 8	118 7
Fixed asset	422 2	426 2
Inventories	233 0	283 4
Contract work in net of advances from customers progress,	12 4	19 9
Trade receivables	140 0	159 6
Trade payables	(61 4)	(63 5)
Operating working capital	323 9	399 3
Other current assets and liabilities	(69 6)	(76 4)
Net working capital	254 3	322 9
Deferred tax assets	29 4	29 9 ,
Trade receivables	-	-
Other receivables and non-current financial assets	15 7	17 1
benefits Employee	(26 0)	(20 8)
Provisions for risks and charges	(21 1)	(20 8)
Deferred tax liabilities	(29 3)	(28 8)
Trade payables	(0 2)	(0 2)
payables Income tax	(0 1)	-
Other payables	(2 2)	(2 2)
liabilities Other net current asset and non	(33 7)	(25 8)
invested capital Net	642 8	723 4
Net current financial indebtedness	(184 1)	249 0
Non-current financial indebtedness	(3 8)	(267 7)
financial indebtedness Net - ESMA	(187 9)	(18 7)
Fair value of financial instruments	(0 9)	(0 3)
Net financial indebtedness - De Nora	(188 8)	(19 0)
Equity Total	(454 0)	(704 3)
Total sources	(642 8)	(723 4)

Cash Flow Statement

(€m)	2022 H1	2021 H1
EBITDA	79 6	42 9
of equipment intangible Losses the sale property , plant and and assets on	0 2	0 7
items Other non-monetary	17 8	(0 5)
Cash flows generated by operating activities before changes in working capital net	97 5	43 2
Change in inventory	(43 5)	(85 4)
Change in trade receivables and construction contracts	(20 5)	(2 7)
Change in trade payables	1 5	7 6
in receivables/payables Change other	(0 3)	(3 4)
Cash flows generated by changes in working capital net	(62 8)	(84 0)
Cash flows generated by operating activities	34 7	(40 8)
Net Interest and Net other financial paid expense	(2 5)	(2 3)
Income taxes paid	(20 4)	(6 5)
flows operating activities Net cash generated by	11 8	(49 6)
of equipment intangible Sales property , plant and and assets	0 1	0 6
in tangible intangible Investments and assets1	(15 2)	(8 1)
in Associated companies (TK AG) Investments Management nucera	(0 0)	-
Dividends collected from Thyssenkrupp	-	-
Shareholders contribution reimbursed by Thyssenkrupp	-	-
cash flows used in investing activities Net	(15 1)	(7 5)
Share capital increase	196 6	18 1
loans/(Repayment) of loans New	36 2	29 3
(decrease) in other financial liabilities Increase	(1 1)	(0 7)
(Increase) decrease in financial assets	(3 7)	0 1
Dividends paid	(20 0)	-
cash flows generated by financing activities Net	208 0	46 8
	-	-
increase (decrease) in equivalents Net cash and cash	204 7	(10 3)
Opening equivalents cash and cash	73 8	75 7
gains/(losses) Exchange rate	0 8	0 5
Closing equivalents cash and cash	279 3	65 9

Disclaimer

The content of this presentation has a merely informative and provisional nature and does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto.

The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party.

Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Past performance of De Nora Group cannot be relied on as a guide to future performance. Industrie De Nora makes no representation or warranty, whether expressed or implied, and no reliance should be placed on the fairness, accuracy, completeness, correctness or reliability of the information contained herein and/or discussed verbally.

This presentation contains forward-looking statements regarding future events and the future results of Industrie De Nora that are based on current expectations, estimates, forecasts, and projections about the industries in which Industrie De Nora operates and the beliefs and assumptions of the management of Industrie De Nora. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management are forward-looking in nature. Words such as 'expects', 'aims', 'forecasts', 'anticipates', 'targets', 'goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', variations of such words, and similar expressions (or their negative) are intended to identify such forwardlooking statements.

These forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Many of these risks and uncertainties relate to factors that are beyond the company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors. Therefore, Industrie De Nora's actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, social, political, economic and regulatory developments or changes in economic or technological trends or conditions in Italy and internationally. Consequently, Industrie De Nora makes no representation, whether expressed or implied, as to the conformity of the actual results with those projected in the forward-looking statements. Any forward-looking statements made by or on behalf of Industrie De Nora speak only as of the date they are made. Industrie De Nora does not undertake to update forward-looking statements to reflect any changes in Industrie De Nora's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any further disclosures Industrie De Nora may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange.

This presentation contains alternative performance indicators that are not recognized by IFRS. Different companies and analysts may calculate these non-IFRS measures differently, so making comparisons among companies on this basis should be done very carefully. These non-IFRS measures have limitations as analytical tools, are not measures of performance or financial condition under IFRS and should not be considered in isolation or construed as substitutes for operating profit or net profit as an indicator of our operations in accordance with IFRS.

Matteo Lodrini, in his position as manager responsible for the preparation of financial reports, certifies pursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and accounting information disclosures herewith set forth correspond to the company's results documented in the books, accounting and other records.

This presentation has to be accompanied by a verbal explanation. A simple reading of this presentation without the appropriate verbal explanation could give rise to a partial or incorrect understanding. By attending this presentation or otherwise accessing these materials, you agree to be bound by the foregoing limitations.

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© 2022 De Nora

19 WE ARE DE NORA