Deme Group Nv · EURONEXT:DEME
Deme Group Nv — Q1 2024 Earnings Presentation
58 slides from Deme Group Nv's earnings presentation, May 2024
Slide 1: Pushing Boundaries – IR-Deck 2Q24
PUSHING BOUNDARIES IR-DECK 2Q24 May 2024 DEME
Slide 2: Agenda
AGENDA 00 Intro & Executive Summary 01 Group Financial Highlights 02 Segments Update 03 ESG & Safety 04 Outlook 05 Appendix DEME 2
Slide 3: DEME, a global marine solution provider
DEME, A GLOBAL MARINE SOLUTION PROVIDER Market leading Growth One of the ESG and safety Attractive De-risked in healthy trajectory largest and most at the core of financial profile portfolio of segments with supported by technologically DEME’s activities supported by a activities through high barrie
Slide 4: Leading in offshore energy, dredging, marine infrastructure and environmental solutions
LEADING IN OFFSHORE ENERGY, DREDGING, MARINE INFRASTRUCTURE AND ENVIRONMENTAL SOLUTIONS OFFSHORE ENERGY DREDGING & INFRA ENVIRONMENTAL CONCESSIONS Unrivalled track record in construction 145+ years of experience in dredging, land Innovative solutions for soil remediation, Developing, building and op
Slide 5: Latest updates
LATEST UPDATES <Large contract> <Large contract> <Sizeable> <Sizeable contract> <Sizeable contract> DEME 5 Contract value categories for the DEME scope: Large (>€300m) ; Substantial (€150m-€300m) ; Sizeable (€50m-€150m) ; A contract (<€50m)
Slide 6: Executive summary full year 2023
EXECUTIVE SUMMARY FULL YEAR 2023 22% surge in orderbook, turnover record high at € 3.3bn and profits on the rise Further expanding DEME’s fleet, adding ‘Green Jade’ and Orderbook +22% ; Turnover +24% ‘Viking Neptun’ ; total capital expenditure @ € 399m in 2023 Achieving ESG-targets on Safety & Low c
Slide 7: Group financial highlights
01 GROUP FINANCIAL HIGHLIGHTS DEME 7
Slide 8: FY23 – Key financial highlights
FY23 – KEY FINANCIAL HIGHLIGHTS (in million EUR) 2023 2022 2021 Orderbook @ € 7.6bn, +22% vs 2022 Orderbook 7,582 6,190 5,905 y-o-y growth +22% +5% Turnover +24%, surpassing the € 3bn All segments contributing to the growth Turnover 3,285 2,655 2,511 y-o-y growth +24% +6% EBITDA 596 474 469 EBITDA,
Slide 9: FY23 – Group orderbook
FY23 – GROUP ORDERBOOK Orderbook increase driven by continued strong demand ; double-digit growth in all contracting segments Orderbook +22% y-o-y Geographic breakdown Orderbook run off 2023 vs 2022 4% 12% 7,582 7% 27% 55% 6,190 18% 5,905 35% 2022 13% 5% 2023 49% 12% 58% 2021 2022 2023 5% Offshore E
Slide 10: FY23 – Group turnover
FY23 – GROUP TURNOVER Turnover up 24% vs 2022 Segment breakdown Geographic breakdown 3,285 3,285 3% 2,655 2,655 2,511 2,511 18% 5% 8% 8% 8% 2023 12% 63% 2022 75% Europe Africa Asia 2021 2022 2023 2021 2022 2023 America Middle East (in million EUR) Offshore Energy Dredging & Infra Environmental (in m
Slide 11: FY23 – Group profitability
FY23 – GROUP PROFITABILITY Profitability on the rise EBITDA & EBITDA Margin EBIT & EBIT Margin Net Profit & Margin 700 50.0% 300 20.0% 200 20.0% 596 163 600 250 241 40.0% 500 469 474 15.0% 150 15.0% 200 115 113 400 30.0% 143 155 150 18.7% 17.9% 18.2% 7.3% 10.0% 100 10.0% 300 20.0% 5.7% 5.8% 100 4.6%
Slide 12: FY23 – CAPEX
FY23 – CAPEX Continued investments in technologically-advanced fleet Evolution of CAPEX1 Net Result & Margin 484 441 435 399 282 202 2018 2019 2020 2021 2022 2023 (in million EUR) CAPEX Highlights ‘Viking Neptun’, a new cable laying vessel, joined the fleet in 1H23 Major conversion investments for ‘
Slide 13: FY23 – Key balance sheet items
FY23 – KEY BALANCE SHEET ITEMS Debt well under control Key balance sheet items (in million EUR) 2023 2022 2021 Operating Working -471 -506 -511 Capital1 Net Financial -512 -521 -393 Debt Free cash 62 -80 131 flow² Cash & cash 389 522 529 equivalents Positive free cash flow Healthy Net Financial than
Slide 14: FY23 – Segments
FY23 – SEGMENTS Complementary segments result in diversified sources of income OFFSHORE DREDGING & ENVIRONMENTAL CONCESSIONS ENERGY INFRA (in million EUR) 2023 2022 2023 2022 2023 2022 (in million EUR) SINCE START Turnover1 1,502 958 1,605 1,524 304 206 Value of projects at closing c. 6,000 y-o-y gr
Slide 15: 1Q24 – High activity level and effective project execution
1Q24 | HIGH ACTIVITY LEVEL AND EFFECTIVE PROJECT EXECUTION LEAD Orderbook high; Up from € 7.1 bn a year ago due to TO A STRONG START OF THE YEAR Ijmuiden Ver and Nederwiek project and complemented by smaller contracts across the board (in million EUR) 1Q24 4Q23 1Q23 1Q22 Offshore Energy: Moray West
Slide 16: Outlook
OUTLOOK For 2024, taking into account present geopolitical and market conditions, current orderbook and fleet capacity, management expects a TURNOVER increase of at CAPEX for the year between least 10% compared to 2023 € 300m and € 350m EBITDA MARGIN Further reduction of comparable to 2023 net finan
Slide 17: Segments update
02 SEGMENTS UPDATE DEME 17
Slide 18: Luchtfoto Orion
Luchtfoto Orion DEME 18
Slide 19: DEME Offshore Energy supports the energy transition
DEME OFFSHORE ENERGY SUPPORTS THE ENERGY TRANSITION NON- ~75% of RENEWABLES ~25% of RENEWABLES turnover & NUCLEAR turnover 2000 Start offshore wind activities OFFSHORE WIND FARMS DECOMMISSIONING & HYDROCARBONS +14k MW • 350 successfully executed projects, incl 30 EPCI SALVAGING & NUCLEAR Capacity of
Slide 20: Market dynamics | Offshore wind
MARKET DYNAMICS | OFFSHORE WIND Supporting the energy transition Studies & reports signal significant market growth • From ~5GW installed pa in 2022 to ~25GW pa in 2030 • Total market by end 2030 271 GW* Europe US APC • by end 2030 (excl China): 212 GW or + ~180 GW • by end of 2035: 328 GW • CAGR ‘2
Slide 21: One of the most technologically advanced fleet
ONE OF THE MOST TECHNOLOGICALLY ADVANCED FLEET Driven by continuous investments ORION GREEN JADE VIKING NEPTUN YELLOWSTONE • DP3 floating installation vessel • DP3 floating installation vessel • DP3 cable laying vessel • Fallpipe vessel • 5,000-ton lifting capacity • 4,000-ton lifting capacity • Two
Slide 22: Broad service offering
BROAD SERVICE OFFERING Providing flexible solutions for the most demanding offshore wind projects ROCK FOUNDATIONS TURBINES CABLES PLACEMENT +2k foundations installed1 +2.5k turbines installed1 +2,000 km of cable installed2 +3,300k tonnes of rock used for scour protection 6% Market share 16% Market
Slide 23: Offshore Energy performance dashboard
Revenue growth of 57%, accelerating the Orderbook +15%, fueled by contract wins with conversion of orderbook and starting to deployments over next years, including important OFFSHORE ENERGY leverage the expanded fleet capacity wins for projects in France, Taiwan and Poland Performance Dashboard Abso
Slide 24: Offshore Energy – Key projects 2023
OFFSHORE ENERGY Key Projects 2023 INNOVATION A • DP2 jack-up vessel VESTERHAV OWF • 1,500-ton lifting capacity 41 XXL monopiles foundations B FÉCAMP ORION Offshore substation jacket and topside • DP3 floating installation C vessel F A • 5,000-ton lifting C B capacity DOGGER BANK (3.6GW) E Inter-arra
Slide 25: Contract win: Ile de Yeu et Noirmoutier
CONTRACT WIN : ILE DE YEU ET NOIRMOUTIER Winning major French offshore project France, Loire Atlantique Project characteristics Follows the successful deployment with industry- Customer: EMYN (Ocean Winds, Sumitomo first technology at Saint-Nazaire ; will require corp and La Banque des Territoires a
Slide 26: DEME
DEME 26
Slide 27: Global dredging powerhouse
GLOBAL DREDGING POWERHOUSE Complemented by Infra activities in core markets DREDGING INFRA €1.6bn ACTIVITIES: Turnover (2023) ACTIVITIES: Capital and Land reclamation €298M Inland waterway Port construction maintenance EBITDA (2023) infrastructure dredging Marine aggregates Coastal protection Bored
Slide 28: Addressable dredging market of €5-6bn
1 ADDRESSABLE DREDGING MARKET OF € 5-6BN 2 Addressable market Addressable market 7,000 6,095 Area Market Today (in million euro) 6,000 5,220 5,330 5,105 4,860 Europe ~1,500 5,000 In million euro 4,000 APAC ~2,000 3,000 Middle East ~1,000 2,000 Africa ~700 1,000 Americas ~600 0 Total 5-6 bn 2018 2019
Slide 29: Market dynamics
MARKET DYNAMICS Secular market drivers Challenges High barriers to entry Trade activity Chinese competition +80% of international trade is carried by sea, requiring Complex engineering as part of their “Belt and road” initiative dredging & infra works to ensure ship access and suitable and design po
Slide 30: One of the most technologically advanced fleet
ONE OF THE MOST TECHNOLOGICALLY ADVANCED FLEET Driven by continuous investments SPARTACUS BONNY RIVER AMBIORIX SCHELDT RIVER • World’s largest CSD • Dredges hard soils and in deep • Operates in heavy soil and rock • KNVTS3 Ship of the Year 2018 • Dual fuel waters (>100m) conditions award • Size: 44,
Slide 31: Dredging & Infra performance dashboard
Orderbook +33% with contract wins in Europe, Turnover increased 5% y-o-y, overcoming a -4% Africa, and Asia, including flagship projects such decline for the first half, fueled by a high as the Princess Elisabeth Island in Belgium and the DREDGING & INFRA utilisation as from the second half of the y
Slide 32: Dredging & Infra – Key projects 2023
DREDGING & INFRA Key Projects 2023 A B FEHMARNBELT OOSTERWEEL FIXED LINK Construction of immersed Longest immersed road and rail tunnel in the River Scheldt A tunnel in the world, connecting D Denmark with Germany B C F C D G H PORT-LA- NEW LOCK NOUVELLE TERNEUZEN Wet and dry earthmoving E Port expa
Slide 33: Contract win: Princess Elisabeth Island
CONTRACT WIN : PRINCESS ELISABETH ISLAND Industry-first, artificial energy island to be deployed by end 2026 Project characteristics Customer: ELIA ; won by Customer expressed the ambition to have TM EDISON (JDN & DEME) all new offshore wind farms (3.5 GW) connected with the onshore grid by 2030 13%
Slide 34: DEME
DEME 34
Slide 35: Leading environmental specialist in Benelux
LEADING ENVIRONMENTAL SPECIALIST IN BENELUX Offering wide range of services SOIL REMEDIATION & ENVIRONMENTAL HIGH WATER BROWNFIELD DREDGING & SEDIMENT PROTECTION DEVELOPMENT TREATMENT • Offering tailored solutions for high water • Cleaning and recycling of polluted soils • Fluvial dredging with mini
Slide 36: DEME Environmental
DEME ENVIRONMENTAL Thriving on growing sustainability awareness and regulatory initiatives Fundamental long term market drivers European growth opportunities €680bn 50% by 2050 Regulations Local regulations to protect the environment (traceability EU Funding framework budget over European Action pla
Slide 37: Environmental performance dashboard
Turnover grew 48% to € 304m, primarily driven Setting new standards for addressing by a strong positioning within an increasingly environmental challenges, including PFAS pollutions ENVIRONMENTAL stringent environmental regulatory landscape Performance Dashboard EBITDA @ € 51m reflecting successful
Slide 38: Environmental – Key projects 2023
ENVIRONMENTAL Key Projects 2023 Soil remediation and brownfield development A A A BLUE GATE OOSTERWEEL B Converting historically heavily Treating PFAS polluted soils polluted brownfield site into sustainable business park D A B A C COKERIE DU FORMER OIL BRABANT TERMINAL Soil remediation project Turn
Slide 39: DEME
DEME 39
Slide 40: Concessions
CONCESSIONS Net result Offshore Dredging & Infra Stakes in offshore wind projects with Involved in marine infrastructure projects (in million EUR) 2023 2022 2021 a total installed capacity of over 1GW (Blankenburg, Port-La-Nouvelle, Cap (144MW proportional capacity) Duqm) Net result generating recur
Slide 41: Infrastructure developer, investor and manager
INFRASTRUCTURE DEVELOPER, INVESTOR AND MANAGER Leveraging unique combination of technical and financial capabilities At a glance Active in 4 sectors Early involvement in the development process Strong additionality with contracting side of DEME H2 OFFSHORE WIND INFRA & DREDGING GREEN HYDROGEN DEEP-S
Slide 42: Uniquely positioned
UNIQUELY POSITIONED Co-investing on back of vast sector expertise & additionality principle Good portfolio of operational Leveraging “additionality” to de- projects in Belgium1 risk investment for all stakeholders A C-POWER 325 MW | 6% | Operational RENTEL Secure scarce Expert insights Co-investing
Slide 43: DEME Infra & Dredging Concessions
DEME INFRA & DREDGING CONCESSIONS Leveraging deep industry network and know-how 1 Involved in major marine infrastructure projects A A BLANKENBURG Infrastructure PPP | 15% | Construction B B PORT-LA-NOUVELLE Port Development | 24% | Construction C CAP DUQM Port Management | 30% | Operational C Provi
Slide 44: Frontrunner in green hydrogen
FRONTRUNNER IN GREEN HYDROGEN Developing, building and operating industrial-scale production facilities In which DEME is building a portfolio of green hydrogen A promising market investments NET ZERO +300 MT +3,500 GW HYPORT® DUQM HYVE Green hydrogen is key Annual demand for Electrolyser capacity is
Slide 45: HYPORT Duqm
HYPORT ® DUQM Flagship project in Oman Size: 1.5GW electrolyzer >3GW renewable generation >1m mt/yr green ammonia >180k mt/yr green hydrogen Location: 150km2 in Duqm, Oman Cooperation Agreement Signed 2020 Land Reservation Agreements Signed 2021 & 2022 Port of Duqm Phase 1: 500MW electrolyzer >1GW r
Slide 46: Collecting metals
COLLECTING METALS To power our future in most responsible way Deep-sea harvesting avoids environmental & social terrestrial impacts GSR is taking concrete steps Disruptive Precautionary Exclusive rights technologies to approach based on in (i) Clarion source nodules in environmental Clipperton Fract
Slide 47: ESG & Safety
03 ESG & SAFETY DEME 47
Slide 48: ESG 2023 – Environmental
ESG 2023 Update on progress Environmental 2023 2022 2021 42% of DEME’s turnover is EU taxonomy eligible and 33% aligned, up EU Taxonomy - Turnover from 29% and 26% respectively, driven by the inclusion of DEME’s environmental activities, such as remediation of contaminated sites Eligible activities
Slide 49: ESG 2023 – Social & Governance
ESG 2023 Update on progress Social & Governance 2023 2022 2021 The Group’s employee force expanded to 5,334, marking a 4% increase from 2022 ; Significant investments and focus on retaining and attracting talent to support Average # personnel (in FTE) 5,334 5,153 4,880 DEME’s mid and long term growt
Slide 50: Appendix
05 APPENDIX DEME 50
Slide 51: Who we are
WHO WE ARE DEME
Slide 52: Long heritage of exploring new horizons
LONG HERITAGE OF EXPLORING NEW HORIZONS AND CREATING SUSTAINABLE MARINE SOLUTIONS Ackermans & van Haaren Founding DEME, merging and CFE’s Société Générale Dredging International and de Dragage merge into Baggerwerken Decloedt & Dredging International Zoon 1876 1974 1988 1991 2000 Foundation Ackerman
Slide 53: Company history timeline 2010-2022
Start deep-sea Expansion infra DEME exploration activities independently activities listed • Unlock full potential of DEME and allow for better sector specialization • Enhance governance and management focus 2010 2013 2015 2018 2022 • Better alignment of capital allocation decisions • Attract most a
Slide 54: Project characteristics
PROJECT CHARACTERISTICS A cautious approach Preparation Remeasurable contract Project profit recognition Project budget based on Trying to avoid fixed price Profit recognition only after 10% of “Costs DOP + risk + margin” contracts project costs made Project execution Price revision mechanisms to tr
Slide 55: DEME Campus in the making
DEME CAMPUS “IN THE MAKING” DEME LABS finished June 2023 PAVILION finished Autumn 2024 DEME HQ start Autumn 2024 DEME 55
Slide 56: Agenda financial calendar
AGENDA FINANCIAL CALENDAR Quarterly results 14/05/2024 Q1 2024 15/05/2024 General Assembly 27/05/2024 Dividend payment date 29/08/2024 Half year 2024 results Quarterly results 14/11/2024 Q3 2024 DEME 56
Slide 57: Disclaimer
DISCLAIMER DISCLAIMER The Information and any opinions contained therein are provided as at the date of the presentation and are subject to change without notice. In giving this presentation, DEME does not undertake any obligation to provide the recipient with access to any additional information or
Slide 58: Thank you
THANK YOU For more information vanden.bussche.carl@deme-group.com DEME 58