Friedrich Vorwerk Group Se · XETR:VH2
Friedrich Vorwerk — H1 2023 Earnings Presentation
26 slides from Friedrich Vorwerk's earnings presentation, Aug 15, 2023
Slide 1: Q2 Earnings Call H1 2023
Q2 Earnings Call H 15 August 2023 Driving the clean energy transition.
Slide 2: Key messages
Key messages Key messages Key figures Very high market demand continues to fuel strong order intake development +26 % Order intake 6M 23 vs. 6M 22 Especially the Electricity segment shows very strong dynamics due to ramp up of large HVDV projects 467 €m Order backlog as of 30.06.2023 Large LNG pipel
Slide 3: Introduction
H Introduction 2
Slide 4: VORWERK plans, realizes and operates the energy infrastructure of the future
VORWERK plans, realizes and operates the energy infrastructure of the future VORWERK is driving the clean energy transition In attractive end-markets With success Hydrogen €368 m >1,800 revenues employees 2 n o iti Electricity ns tr a r gy Natural Gas e En >8 % ~1.9 EBITDA margin book-to-bill ratio
Slide 5: VORWERK is critical in transforming and delivering energy from producers to consumers
VORWERK is critical in transforming and delivering energy from producers to consumers Production/ import Transformation/ transportation Consumer LNG Terminals Storage & Compressor Gas pressure Pipelines measurement stations regulating & International metering stations pipelines Landfall Power-to-Hea
Slide 6: The draft grid development plan electricity foresees additional investments of 240 bn € by 2045
The draft grid development plan electricity foresees additional investments of 240 bn € by 2045 Gross electricity consumption in TWh +169 % 25,740 km 1,303 1,079-1,303 of additional electricity lines (on- and 899-1,053 offshore) in Germany by 2045 650-700 484 Today (2022) 2035 2037 2045 (NEP 2021) (
Slide 7: Financial performance
H Financial performance 6
Slide 8: Order intake and backlog remain on record level
Driven by strong market demand, order intake and backlog remain on record level Order intake Order backlog in €m in €m +11 % 467 +26 422 +26% % 318 Order intake 252 year-on-year H1 2022 H1 2023 H1 2022 H1 2023 467 €m Order backlog 7
Slide 9: The strong growth trajectory was continued in the second quarter
The strong growth trajectory was continued in the second quarter Revenue in €m 115,9 +10% 109,4 92,6 84,4 73,1 +10 58,4 Typical seasonal revenue development % Revenue growth in Q2 year-on-year Q1 22 Q1 23 Q2 22 Q2 23 Q3 22 Q3 23 Q4 22 Q4 23 8
Slide 10: In total, revenues in H1 increased by 16 % compared to the previous year
In total, revenues in H1 increased by 16 % compared to the previous year Revenue Revenue by segment in €m in % +16% 165,6 142,8 165,6 142,8 26 % 2% 33 % Adj. Opportunities +16 % 17 % 5% Clean Hydrogen Revenue growth in 15 % Electricity H1 year-on-year 55 % ~1.9 46 % Natural Gas H1 2022 H1 2023 H1 20
Slide 11: Profitability lies significantly below the previous year's levels
However, profitability lies significantly below the previous year‘s levels EBITDA EBIT (adj.) in €m, blue bubbles show EBITDA margin in €m, blue bubbles show EBIT margin 15.6% 8.2% 10.2% 2.9% 22.3 8.2 % EBITDA margin 14.6 13.6 2.9 4.9 % H1 2022 H1 2023 H1 2022 H1 2023 EBIT margin 10
Slide 12: Profitability is impacted by rising material and personnel costs and low-margin projects
Profitability is impacted by rising material and personnel costs as well as single low-margin projects Profitability impacts H1 2023 vs. guidance in PP, as at 30.06.2023 ~13% (1 PP) (1 PP) (4 PP) 1 PP 8.2% Guided Personnel expenses Material expenses Low-margin projects Successful claims Actual EBITD
Slide 13: We revised our revenue and profitability guidance
Based on H1 results and due to project delays we revised our revenue and profitability guidance Revenue guidance Profitability guidance -10 % 368 >330 Revised guidance 300 279 Previous guidance EBITDA margin: 8-11 % (Previously: ~13 %) EBIT margin below 2022 level FY 2021 FY 2022 FY 2023 12
Slide 14: VORWERK continues to have a strong balance sheet
VORWERK continues to have a strong balance sheet as basis for further growth Balance Sheet in €m, as at 30.06.2023 303 303 Fixed Assets* 140 164 Equity Working Capital 156 10 25 30 Mezzanine financing Financial liabilities Operating liabilities (LT) 54.3 % Equity ratio 73 Operating liabilities (ST)
Slide 15: Business update
H Business update 14
Slide 16: VORWERK again secured major project orders across all segments
VORWERK again secured major project orders across all segments DN600 FSRU connection pipeline in Stade A310 cable civil engineering, cable transfer station and tunnel system Rehabilitation of FGL065 & FGL209 pipelines 380kV Cable line Stade-Landesbergen Multiple Gas Pressure Regulating and Metering
Slide 17: Modular biogas processing and injection plants contributed more than €30m of order intake
VORWERKs modular biogas processing and injection plants have already contributed more than €30m of order intake in 2023 VORWERK modular biogas injection plants Description Biogas injection plants are used to measure, compress Customer, e.g. and inject upgraded biogas into the natural gas grid Vorwer
Slide 18: TenneT's Ostküstenleitung project
At TenneT’s Ostküstenleitung, VORWERK is participating in one of the largest infrastructure projects in Northern Germany Project description TenneT “Ostkuestenleitung” Project details Project scope comprises several different services that VORWERK realizes in joint ventures with Customer: qualified
Slide 19: A-Nord tender process expected to be concluded soon
Phase 2 of the A-Nord tender process is expected to be concluded soon Project description Tender process BorWin 4 DolWin4 Phase 1 Definition of project scope and mode of cooperation Customer: Selection of contract parties for 2nd exclusive project phase New 300 km HVDC cable line for the transport o
Slide 20: German electricity infrastructure market facing an unprecedented wave of investments
Due to massive electrification efforts, the German electricity infrastructure market is facing an unprecedented wave of investments 2023 2024 2025 2026 2027 2028 2029 2030 A310 A-Nord* OstWind6 SuedLink civil engineering Hansa Powerbridge BorWin6 Amprion Korridor B DC34 LanWin3+6 TenneT Portfolio 3+
Slide 21: Brunsbüttel LNG connection pipeline subject to contract negotiations
Due to delays and unforeseen changes in the project scope the LNG connection pipeline in Brunsbüttel is currently subject to contract negotiations Brunsbüttel LNG connecting pipeline Project update Shortly after project start, several unforeseen changes hindered project execution according to plan C
Slide 22: Improving positioning as attractive employer
VORWERK is continuously improving its positioning as attractive employer to secure personnel capacities for the substantial growth opportunities ahead Roll-out of new employer branding to New Employer Branding improve effectiveness of social media and website recruiting Introduction of new flexible
Slide 23: Questions & Answers
Questions & Answers Tim Hameister CFO Günter Albers MD Bohlen & Doyen 23
Slide 24: Financial Calendar 2023
Financial Calendar 2023 30 January Preliminary Figures 2022│ Earnings Call 09 February Hamburger Investorentage (HIT) 13 February Alster Roundtable 15-16 March Berenberg EU Opportunities Conference 28 March Jefferies Pan-European Conference 30 March Publication of Annual Report 2022 15 May Publicati
Slide 25: Disclaimer
Disclaimer By accessing this document, you agree to abide by the limitations set out hereafter. The information contained in this document relating to Friedrich Vorwerk Group SE (“Friedrich Vorwerk" or the "Company") may not be redistributed, reproduced, published, or passed on to any other person a
Slide 26: Driving the Clean Energy Transition.
H Driving the Clean Energy Transition.
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