Interpump Group — Earnings Release 2021

Nov 10, 2021

Informazione Regolamentata n. 0159-49-2021		Data/Ora Ricezione 10 Novembre 2021 12:01:37	Euronext Star Milan
Societa'	:	INTERPUMP GROUP
Identificativo Informazione Regolamentata	:	153923
Nome utilizzatore	: INTERPUMPN01 - BANCI
Tipologia	:	REGEM
Data/Ora Ricezione	: 10 Novembre 2021 12:01:37
Data/Ora Inizio Diffusione presunta	:	10 Novembre 2021 12:01:38
Oggetto	:	CONSOLIDATED RESULTS AT 30/09/2021
Testo del comunicato

Vedi allegato.

PRESS RELEASE

CONSOLIDATED RESULTS AT 30 SEPTEMBER 2021

Chairman Fulvio Montipò: "The third quarter is a confirmation of Interpump's extraordinary results, with a performance of absolute excellence in growth and profitability.

Moreover, our effort goes on towards the putting into practice of sustainability topics, consistently with Group's strategic development plan"

DATA FOR THE THIRD QUARTER OF 2021:

NET SALES: € 373.5 million (€ 314.7 mn in Q3 2020) EBITDA: € 88.6 million (€ 76.0 mn in Q3 2020) EBITDA/SALES: 23.7% (24.2% in Q3 2020) CONSOLIDATED NET PROFIT: € 50.1 million (€ 39.5 mn in Q3 2020)

DATA FOR THE FIRST NINE MONTHS OF 2020:

NET SALES: € 1,154.6 million (€ 954.2 mn in 9M 2020) EBITDA: € 281.9 million (€ 215.3 mn in 9M 2020) EBITDA/SALES: 24.4% (22.6% in 9M 2020) CONSOLIDATED NET PROFIT: € 178.4 million* (€103.0 mn in 9M 2020) FREE CASH FLOW: € 134.9 million (€ 148.6 million in 9M 2020)

* Including € 20.1 mn in future fiscal benefits booked in the period

NET DEBT: € 174.4 million (€ 269.5 million at 31/12/2020)

(after € 28.8 mn dividends paid, € 9.0 mn disbursement for acquisitions and € 12.3 mn in purchases of treasury shares)

S. Ilario d'Enza, 10 November 2021 – The Board of Directors of Interpump Group S.p.A. met today and approved the consolidated Q3 2021 Interim Report.

THIRD QUARTER 2021 CONSOLIDATED RESULTS

Net Sales for the third quarter of 2021 totaled 373.5 million euro, an increase of 18.7% from the 314.7 million euro in the corresponding period of 2020.

Sales by business sector and geographical area were as follows:

(€/000)

					Rest of
Q3 2021	Italy	Rest of Europe	North America	Pacific Area	the World	Total
Hydraulics Water-Jetting Total	52,084 9,496 61,580	92,242 40,978 133,220	62,448 39,334 101,782	31,210 13,907 45,117	24,630 7,185 31,815	262,614 110,900 373,514
Q3 2020 Hydraulics	38,836	74,948	49,958	30,238	21,293	215,273
Water-Jetting	8,085	38,943	30,866	14,832	6,702	99,428
Total	46,921	113,891	80,824	45,070	27,995	314,701

Organic growth, at unchanged perimeter and before the currency exchange, was +17.9% (+11.3% for Water-Jetting and +20.9% for Hydraulics)

EBITDA amounted to 88.6 million euro (23.7% of sales) compared to 76.0 million euro in the third quarter of 2020 (24.2% of sales)

Consolidated Net Profit for the third quarter was 50.1 million euro, compared to 39.5 million euro for Q3 2020.

FIRST NINE MONTHS 2021 CONSOLIDATED RESULTS

Net Sales for the first nine months of 2021 totaled 1,154.6 million euro, an increase of 21.0% from the 954.2 million euro in the corresponding period of 2020.

Sales by business sector and geographical area were as follows:

(€/000)

					Rest of
		Rest of	North	Pacific	the
9M 2021	Italy	Europe	America	Area	World	Total
Hydraulics	165,909	289,248	182,052	99,025	76,386	812,620
Water-Jetting	31,474	126,525	116,249	43,283	24,417	341,948
Total	197,383	415,773	298,301	142,308		100,803 1,154,568
9M 2020
Hydraulics	118.689	229.474	161.053	82.686	52.983	644.885
Water-Jetting	26.238	114.229	98.201	43.804	26.880	309.352
Total	144.927	343.703	259.254	126.490	79.863	954.237

Organic growth, at unchanged perimeter and before the currency exchange, was +22.3% (+12.1% in Water-Jetting, +27.1% in Hydraulics)

EBITDA amounted to 281.9 million euro (24.4% of sales) compared to 215.3 million euro in the first nine months of 2020 (22.6% of sales). The following table sets out EBITDA by business sector:

	9M 2021 €/000	% on sales	9M 2020 €/000	% on sales	Change
Hydraulics	184,311	22.7%	132,885	20.6%	+38.7%
Water-Jetting	97,628	28.2%	82,369	26.5%	+18.5%
Total	281,939	24.4%	215,254	22.6%	+31.0%

Operating income (EBIT) was 222.8 million euro compared to 148.5 million euro in the first nine months of 2020.

Consolidated Net Profit for the first nine months of 2021 was 178.4 million euro (was 103.0 million euro in 9M 2020). In the period, some of the Group's Italy-based companies proceeded to a step-up of trademarks for fiscal purposes, as regulated by the applicable Italian law. This operation will result in future fiscal benefits booked in the period for 20.1 million euro.

Net cash flow from operating activities was 247.9 million euro (182.5 million euro in 9M 2020). Free cash flow in the first nine months of 2021 amounted to 134.9 million euro (148.6 million euro in the same period last year).

Net debt at 30/09/2021 was 174.4 million euro (269.5 million euro at 31 December 2020). In the first nine months of the year, 28.8 million euro were paid in dividends, 12.3 million euro were spent to buy treasury shares, while disbursments for acquisitions amounted to 9.0 million euro. Additionally, at the end of September the Group had commitments for the acquisition of stakes in subsidiaries for a total of 62.4 million euro (62.7 million euro at 31/12/2020).

Capital employed rose from 1,482.2 million euro at 31 December 2020 to 1,551.8 million euro at 30 September 2021, mainly as a result of the increase in net working capital associated with the ongoing recovery in the economy, and of the investments to increase production capacity. Non-annualized ROCE was 14.4% (10.0% in 9M 2020). Non-annualized ROE was 13.6% (9.3% in 9M 2020).

Moreover, our effort goes on towards the putting into practice of sustainability topics, consistently with Group's strategic development plan.

At 30 September 2020 Interpump Group S.p.A. had 2,348,625 treasury shares in its portfolio, representing 2.157% of total share capital, purchased at an average cost of € 30.467.

Pursuant to Article 65-bis, paragraph 2 of Consob Deliberation 11971/1999 as modified and supplemented, the Interim Report at 30 September 2021 is available to the public at the Group's registered office and may be also be consulted on the "Financial Statements and Reports" page in the "Investor relations" section of the Group's website www.interpumpgroup.it, as well on the repository.

S. Ilario d'Enza (RE), 10 November 2021 On behalf of the Board of Directors

Fulvio Montipò, Chairman

Carlo Banci, the manager responsible for drafting the company's accounting documents, declares - pursuant to the terms Article 154-bis, paragraph 2 of the Consolidated Financial Services Act - that the accounting disclosures in the present release correspond to the contents of the underlying documents, the accounting books and the accounting entries.

Sant'Ilario d'Enza (RE), 10 November 2021 Carlo Banci

Manager responsible for drafting the company's accounting documents

Media Relations: Investor Relations:

Moccagatta Associati ir@interpumpgroup.it Tel. 02 8645,1695 Tel. 0522-904433 segreteria@moccagatta.it

Consolidated Statement of financial position

30/09/2021	31/12/2020
582,595	343,170
	261,707
441,087	376,596
19,251	23,573
15,566	10,360
1,368,150	1,015,406
504,959	476,480
555,549	549,168
42,952	43,511
	2,269
	757
81,068	59,610
2,232	2,089
	1,133,884
2,557,760	2,149,290
	309,651 2,027 823 1,189,610

(€/000)	30/09/2021	31/12/2020
LIABILITIES
Current liabilities
Trade payables	203,279	154,098
Payables to banks	3,781	10,592
Interest bearing financial payables (current portion)	182,309	181,603
Taxes payable	41,318	14,483
Other current liabilities	128,903	73,738
Provisions for risks and charges	4,980	4,739
Total current liabilities	564,570	439,253
Non-current liabilities
Interest-bearing financial payables	570,860	420,475
Liabilities for employee benefits	23,908	23,809
Deferred tax liabilities	44,378	43,229
Tax liabilities	3,078	3,809
Other non-current liabilities	24,084	58,323
Provisions for risks and charges	11,775	10,415
Total non-current liabilities	678,083	560,060
Total liabilities	1,242,653	999,313
SHAREHOLDERS' EQUITY
Share capital	55,396	55,462
Legal reserve	11,323	11,323
Share premium reserve	73,456	78,693
Remeasurement reserve for defined benefit plans	(8,217)	(8,217)
Translation reserve	(5,840)	(27,215)
Other reserves	1,178,235	1,029,529
Group shareholders' equity	1,304,353	1,139,575
Minority interests	10,754	10,402
Total shareholders' equity	1,315,107	1,149,977
Total shareholders' equity and liabilities	2,557,760	2,149,290

Consolidated income statement for the first nine months

(€/000)	2021	2020
Net sales	1,154,568	954,237
Cost of sales	(733,757)	(611,700)
Gross industrial margin	420,811	342,537
% of net sales	36.4%	35.9%
Other operating income	17,326	13,255
Distribution expenses	(91,982)	(84,970)
General and administrative expenses	(118,143)	(110,819)
Other operating costs	(5,163)	(11,519)
EBIT	222,849	148,484
% of net sales	19.3%	15.6%
Financial income	9,598	9,164
Financial charges	(14,315)	(17,253)
Equity method contribution	43	155
Profit for the period before taxes	218,175	140,550
Income taxes	(39,744)	(37,543)
Consolidated profit for the period	178,431	103,007
% of net sales	15.5%	10.8%
Attributable to:
Shareholders of Parent	176,458	101,443
Minority shareholders of subsidiaries	1,973	1,564
Consolidated profit for the period	178,431	103,007
EBITDA	281,939	215,254
% of net sales	24.4%	22.6%
Shareholders' equity	1,315,107	1,109,385
Net debt	174,355	310,676
Payables for purchase of shareholdings	62,376	58,021
Capital employed	1,551,838	1,478,082
Non-annualized ROCE	14.4%	10.0%
Non-annualized ROE	13.6%	9.3%
Basic earnings per share	1.654	0.946

Consolidated statement of comprehensive income for the first nine months

(€/000)	2021	2020
Consolidated profit (A)	178,431	103,007
Other comprehensive income which will subsequently be reclassified to consolidated profit or loss
Gains (losses) on translating the financial statements of foreign companies	21,819	(23,726)
Gains (losses) from companies accounted for using the equity method	85	(81)
Applicable taxes	-	-
Total other consolidated income (losses) which will
subsequently be reclassified to consolidated profit for the period, net of the tax effect (B)	21,904	(23,807)
Consolidated comprehensive income for the period (A)+(B)	200,335	79,200
Attributable to:
Shareholders of Parent	197,833	78,111
Minority shareholders of subsidiaries	2,502	1,089
Consolidated comprehensive income for the first nine months	200,335	79,200

Consolidated income statement for the third quarter

(€/000)	2021	2020
Net sales	373,514	314,701
Cost of sales	(240,773)	(200,050)
Gross industrial margin	132,741	114,651
% of net sales	35.5%	36.4%
Other operating income	5,940	4,391
Distribution expenses	(30,214)	(26,169)
General and administrative expenses	(38,136)	(35,087)
Other operating costs	(1,660)	(1,269)
EBIT	68,671	56,517
% of net sales	18.4%	18.0%
Financial income	1,991	2,300
Financial charges	(2,991)	(5,341)
Equity method contribution	(98)	42
Profit for the period before taxes	67,573	53,518
Income taxes	(17,474)	(13,979)
Consolidated profit for the period	50,099	39,539
% of net sales	13.4%	12.6%
Attributable to:
Shareholders of Parent	49,505	38,926
Minority shareholders of subsidiaries	594	613
Consolidated profit for the period	50,099	39,539
EBITDA	88,631	76,004
% of net sales	23.7%	24.2%
Shareholders' equity	1,315,107	1,109,385
Net debt	174,355	310,676
Payables for purchase of shareholdings	62,376	58,021
Capital employed	1,551,838	1,478,082
Non-annualized ROCE	4.4%	3.8%
Non-annualized ROE	3.8%	3.6%
Basic earnings per share	0.464	0.363

Consolidated statement of comprehensive income for the third quarter

(€/000)	2021	2020
Consolidated profit for the third quarter (A)	50,099	39,539
Other comprehensive income which will subsequently be reclassified to consolidated profit or loss
Gains (losses) on translating the financial statements of foreign companies	8,054	(14,661)
Gains (losses) from companies accounted for using the equity method	33	(19)
Applicable taxes	-	-
Total other consolidated income (losses) which will subsequently be reclassified to consolidated profit for the
period, net of the tax effect (B)	8,087	(14,680)
Consolidated comprehensive income for the period (A)+(B)	58,186	24,859
Attributable to:
Shareholders of Parent	57,427	24,424
Minority shareholders of subsidiaries	759	435
Consolidated comprehensive income for the third quarter	58,186	24,859

Consolidated cash flow statement for the first nine months

(€/000)	2021	2020
Cash flows from operating activities
Profit before taxes	218,175	140,550
Adjustments for non-cash items:
Losses (gains) on the sale of fixed assets	(4,544)	(2,018)
Amortization and depreciation	57,156	58,364
Costs recognized in the income statement relative to stock options that do not involve monetary outflows for the Group	3,415	2,460
Losses (profits) from investments	(43)	(155)
Net change in risk provisions and allocations to employee benefit provisions	642	7,690
Expenditures for tangible assets to be leased	(6,720)	(3,566)
Proceeds from the disposal of leased tangible assets	7,862	4,187
Net financial charges (revenues)	4,717	8,089
	280,660	215,601
(Increase) decrease in trade receivables and other current assets	(40,923)	34,058
(Increase) decrease in inventories	(51,951)	17,815
Increase (decrease) in trade payables and other current liabilities	56,249	(27,973)
Interest paid	(3,025)	(3,658)
Realized exchange differences	604	(2,475)
Taxes paid	(30,321)	(26,937)
Net cash from operating activities	211,293	206,431
Cash flows from investing activities
Payments for the purchase of investments net of cash received	(7,821)	(39,092)
Capital expenditure on property, plant and equipment	(59,771)	(44,052)
Proceeds from the sale of tangible fixed assets	1,873	1,198
Increase in intangible assets	(4,701)	(2,876)
Financial income received	401	829
Other	(405)	877
Net cash (used in) investing activities	(70,424)	(83,116)
Cash flows from financing activities
Disbursements (repayments) of loans	156,059	7,160
Dividends paid	(28,812)	(28,185)
Disbursements for purchase of treasury shares	(12,338)	(31,847)
Proceeds from the sale of treasury shares to stock option beneficiaries	545	14,278
Change in other financial assets	(38)	21
Payment of finance lease installments (principal)	(13,778)	(13,764)
Net cash generated by (used in) financing activities	101,638	(52,337)
Net increase (decrease) in cash and cash equivalents	242,507	70,978

(€/000)	2021	2020
Net increase (decrease) in cash and cash equivalents	242,507	70,978
Translation differences for cash held by non-EU companies	3,656	(3,760)
Opening cash and cash equivalents of companies consolidated on a line-by-line basis for the first time	73	48
Cash and cash equivalents at the beginning of the period	332,578	211,708
Cash and cash equivalents at the end of the period	578,814	278,974

Cash and cash equivalents consist of the following:

	30/09/2021	31/12/2020
	€/000	€/000
Cash and cash equivalents as per the consolidated statement of financial position	582,595	343,170
Bank payables (overdrafts and subject to collection advances)	(3,781)	(10,592)
Cash and cash equivalents as per the consolidated cash flow statement	578,814	332,578

Consolidated statement of changes in shareholders' equity

	Sha re l ita cap	Leg al res erv e	Sha re ium pr em res erv e	Re me asu re nt me res erv e for de f d ine ben ef lan it p s	Tra nsl ati on res erv e	Oth er res erv es	Gr oup sha reh old ' ers ity equ	No n llin tro con g int sts ere	tal To
At 1 J 20 20 anu ary	55, 4 6 0	11, 3 23	9 6, 7 3 3	( ) 7, 35 8	7, 7 35	8 85, 44 6	1, 04 9, 3 3 9	5, 7 35	1, 05 5, 07 4
nit ion in in of fa ir v alu f s k o tio Re tat ent toc cog com e s em e o p ns d a nd rci sab le nte gra exe	-	-	2, 46 0	-	-	-	2, 46 0	-	2, 46 0
rch of sha Pu tre ase asu ry res	( 5 9 4 )	-	( 3 1, 25 3 )	-	-	-	( 3 1, 8 47 )	-	( 3 1, 8 47 )
Tra nsf of sha ck tio n b fic iar ies tre to sto er asu ry res op ene	57 6	-	13, 7 0 2	-	-	-	14, 27 8	-	14, 27 8
nsf of sha fo ity in Tra tre ent tm ent er asu ry res as pa ym r e qu ves s	25 4	-	13, 7 9 6	-	-	-	14, 05 0	-	14, 05 0
Mi itie f c ies lid d f the fir im ate st t nor s o om pan co nso or e	-	-	-	-	-	-	-	4, 28 3	4, 28 3
Div ide nd aid s p	-	-	-	-	-	( 26 8 9 8 ) ,	( 26 8 9 8 ) ,	( 1, 21 5 )	( 28 113 ) ,
Co reh ive in e ( los s) for fir ine hs of 202 0 st n ont mp ens com m	-	-	-	-	( ) 23 3 3 2 ,	10 1, 44 3	7 8, 11 1	1, 0 8 9	7 9, 20 0
ber At 30 Sep 20 20 tem	55, 6 9 6	11, 3 23	95 4 3 8 ,	( 7, 35 8 )	( 15, 5 97 )	95 9, 9 9 1	1, 0 9 9, 4 9 3	9, 8 9 2	1, 10 9, 3 85
Re nit ion in in of fa ir v alu f s k o tio tat ent toc cog com e s em e o p ns d a nd rci sab le nte gra exe	-	-	( 5 41 )	-	-	-	( 5 41 )	-	( 5 41 )
Pu rch of sha tre ase asu ry res	( 24 3 )	-	( 16, 3 97 )	-	-	-	( 16, 6 40 )	-	( 16, 6 40 )
nsf of sha ck tio n b fic iar ies Tra tre to sto er asu ry res op ene	9	-	19 3	-	-	-	20 2	-	20 2
Mi itie f c ies lid d f the fir im ate st t nor s o om pan co nso or e	-	-	-	-	-	-	-	( 16 )	( 16 )
Div ide nd s d istr ibu ted	-	-	-	-	-	1	1	( 148 )	( 147 )
Div ide nd sol ved s re	-	-	-	-	-	-	-	( ) 29	( ) 29
reh ive in e ( los s) for th e f th f 2 Co 020 rte mp ens com our qua r o	-	-	-	( 85 9 )	( 11, 6 18 )	6 9, 5 37	57 0 6 0 ,	7 0 3	57 7 6 3 ,
At 31 De ber 20 20 cem	55, 4 6 2	11, 3 23	7 8, 6 9 3	( 8, 21 ) 7	( ) 27 21 5 ,	1, 0 29 5 29 ,	1, 13 9, 57 5	10, 4 0 2	1, 14 9, 97 7
nit ion in in of fa ir v alu f s k o tio Re tat ent toc cog com e s em e o p ns d a nd rci sab le nte gra exe	-	-	3, 41 5	-	-	-	3, 41 5	-	3, 41 5
rch of sha Pu tre ase asu ry res	( ) 127	-	( ) 12, 21 1	-	-	-	( ) 12, 3 3 8	-	( ) 12, 3 3 8
Tra nsf of sha ck tio n b fic iar ies tre to sto er asu ry res op ene	22	-	5 23	-	-	-	5 45	-	5 45
nsf of sha fo ity in Tra tre ent tm ent er asu ry res as pa ym r e qu ves s	3 9	-	3, 0 3 6	-	-	-	3, 07 5	-	3, 07 5
Wi nd ing of bsi dia rie up su s	-	-	-	-	-	-	-	( 8 2 )	( 8 2 )
Div ide nd aid s p	-	-	-	-	-	( 26 6 85 ) ,	( 26 6 85 ) ,	( 2, 0 67 )	( 28 75 2 ) ,
Div ide nd sol ved s re	-	-	-	-	-	( ) 1, 0 67	( ) 1, 0 67	( ) 1	( ) 1, 0 6 8
reh ive in e ( los s) for fir ine hs of Co 202 1 st n ont mp ens com m	-	-	-	-	21 37 5 ,	17 6, 45 8	197 8 3 3 ,	2, 5 0 2	20 0, 3 35
At 30 Sep ber 20 21 tem	3 9 6 55,	11, 3 23	3, 6 7 45	( 8, 21 ) 7	( 84 0 ) 5,	1, 17 8, 23 5	1, 3 04, 35 3	10, 754	1, 3 15, 10 7