Cenergy Holdings Sa · EURONEXT:CENER
Cenergy Holdings Sa — Investor Presentation (September 2024)
36 slides from Cenergy Holdings Sa's investor presentation, September 2024
Slide 1: Cenergy Holdings Corporate Presentation
Cenergy Holdings Corporate Presentation
Slide 2: Agenda
/01 Introduction to Cenergy /02 Key Strengths Agenda /03 Updated Guidance /04 Appendix
Slide 3: Part of Viohalco, a Holding Company of Metal Processing Companies
Part of Viohalco, a Holding Company of Metal Processing Companies Viohalco is a holding company of several metal processing companies across Europe with €6.3bn of sales in 2023 BELGIUM AI Cu Fe Real Aluminium1 Copper1 Cables Steel Pipes Steel R&D Estate2 Cenergy Holding Ownership Cenergy is the hold
Slide 4: Introduction to Cenergy
Ps 01 INTRODUCTION TO CENERGY Co CENERGY HOLDINGS
Slide 5: Cenergy Comprises Two Leading Segments in Cables and Steel Pipes
Cenergy Comprises Two Leading Segments in Cables and Steel Pipes Cables Segment Steel Pipes Segment • Manufacturer of low, medium, high and extra high voltage • Manufacturer of steel pipes for onshore & offshore energy cables for onshore & offshore wind farms, and projects and hollow sections for co
Slide 6: Cables Segment at a Glance
Cables Segment at a Glance Business Overview Key Activities • A leading provider of reliable cable solutions at the forefront of Energy Transmission, Power Cables: LV, MV, HV & EHV energy transition Distribution & Renewables Onshore and offshore • Offers a full suite of cable products and solutions
Slide 7: Steel Pipes Segment at a Glance
Steel Pipes Segment at a Glance Business Overview Activities and End-Markets • A leading manufacturer of steel pipes and hollow sections for the Onshore Drilling & Offshore energy and construction sectors Gas & Liquid Fuel Pipelines Extraction Pipelines • It implements demanding projects for the wor
Slide 8: Long Heritage of Successful Growth
Long Heritage of Successful Growth 1950-60s 1970s 1980s 1990s 2000s 2010s 2020s Foundation Focus on submarine Growth in MV Expanding into HV Establishing HV Established Energy transition cables cables cables capabilities Tier 1 supplier enabler Start of cable Cables Segment Production of XLPE Fulgor
Slide 9: Cenergy Plays a Key Role in Enabling the Energy Transition
Cenergy Plays a Key Role in Enabling the Energy Transition Renewable Energy Sources Wide range of cable solutions (onshore, offshore, floating OFW parks) Evaluation of expansion to OFW floating metallic structures Electricity & Power Connections CCS Subsea connections: leading position Technological
Slide 10: Key Strengths
- 02 KEY STRENGTHS Co CENERGY HOLDINGS
Slide 11: Key Strengths
Key Strengths Leading position in energy transmission /01 in a growing electrification market Well-invested and vertically integrated asset base /02 with capacity expansion potential Established technological capabilities /03 with a longstanding commitment to innovation /04 Clearly defined strategy
Slide 12: Fundamental Long-term Trends Driving Global Energy Transition
Fundamental Long-term Trends Driving Global Energy Transition 01 Resulting in Increased Demand for Cables and Pipes Increasing Global Regulatory Support for Emerging New Energy Significant Investment Demand for Energy Green Transition Technologies in Infrastructure • Global population reached • 147
Slide 13: Significant Investments in T&D Supporting ~7% CAGR in Power Cables Market Until 2030
Significant Investments in T&D Supporting 01 ~7% CAGR in Power Cables Market Until 2030 Global Power Cables Market to Reach ~$100bn by 2030 Power Cables Global Market, ($bn) • Overhead lines, underground and subsea power cables market expected to grow at ~7% CAGR until 2030 and ~3% CAGR from CAGR CA
Slide 14: Europe has Highest Regional Growth At ~11% CAGR Until 2030
01 Europe has Highest Regional Growth At ~11% CAGR Until 2030 EU is Expected to have the Highest Growth at ~11% p.a. Until 2030 Power Cables Global Market ($bn) • Higher share of subsea and interconnection projects expected in Europe driven by UK CAGR CAGR and Germany (~45% of EU capex in subsea 202
Slide 15: HVDC Applications Expected to Have the Highest Growth
HVDC Applications are Expected to Have the Highest Growth 01 Reaching ~$19bn in 2030 and ~$35bn in 2050 HVDC Applications Expected to see the Highest Growth • HV expected to grow the fastest, driven by Total Market Size ($bn) growth in OFW (~12-20% p.a. until 2030), CAGR resulting in increased deman
Slide 16: Gas Continues to Play an Important Role in Energy Transmission
01 Gas Continues to Play an Important Role in Energy Transmission Global Fossil Fuel Demand will Continue to Rise in the Near-Term million TJ • Total fossil fuel demand exp. to make up ~43% of global energy demand in 2050 500 2037 Gas Peak – Natural gas projected to peak in mid/late 2029 2030s, late
Slide 17: Cables: Plants With >€600m Invested To Date since 2012
Cables: Sophisticated and Technologically Advanced Manufacturing 02 Plants With >€600m Invested To Date since 2012 • Key facility strategically located close to the sea, with its own port • Vertically integrated facilities to optimise distribution and minimise cost base • Situated in low-cost Europe
Slide 18: The Corinth Plant is One of the Most Advanced in the World for HV
The Corinth Plant is One of the Most Advanced in the World for HV 02 and EHV Submarine Cables • Leadership: One of the largest (245,306m2 land plot, covered area of 100,895m2) and one of the most advanced submarine cable factories globally • Location: Strategically located next to the sea in Corinth
Slide 19: Capacity Expansion Planned to Execute on Record Backlog
02 Capacity Expansion Planned to Execute on Record Backlog Deep Dive: Corinth Plant Deep Dive: Thiva Plant HV & EHV Offshore Cables MV & HV Onshore Cables • Two-year investment program commenced in early 2023 to address • Expansion program aimed at growing onshore cable capacity to serve growing dem
Slide 20: Expansion to Capture the US Opportunity
02 Expansion to Capture the US Opportunity Clear Rationale for US Expansion Investing in a State-of-the-Art Facility to Capitalise on US Opportunities • Large and fast-moving market, with similar long-term megatrends to our existing core markets • Capacity constraints from local players with very lo
Slide 21: Steel Pipes: Vertically Integrated Thisvi Plant Providing End-to-End Solutions
Steel Pipes: Vertically Integrated Thisvi Plant Providing 02 End-to-End Solutions All-in-One Location for Cenergy’s Steel Pipes Activities • Scale facility with total land area of 497,000 m2 and building area of 107,000 m2 Port • Broad portfolio capabilities: onshore / offshore pipelines, hollow Exc
Slide 22: Advanced Technological Capabilities
03 Advanced Technological Capabilities Leading Technological Capabilities Landmark Projects Long Continuous Length Submarine Cables Complex Turnkey Project Solutions of up to 500kV Dogger Bank project: between 2021-2025, the Cables Segment will supply ~900km of 66kV inter-array cables and accessorie
Slide 23: Growth Potential
03 Continuously Investing In Attractive Market Segments Investing in the High Growth High Profitability Segments • Existing established presence in cables for High Cenergy’s Developed High-End Capabilities Capabilities Being Further Developed construction and industrial use • Future market growth ex
Slide 24: Clearly Defined Strategy to Drive Growth and Profitability
04 Clearly Defined Strategy to Drive Growth and Profitability 3 Key Pillars to Cenergy’s Strategy Value over Volume Grow Export Sales Optimising Operational Performance • Focus on high value-added products • Execute on new Maryland US facility • Automation across the factory • HV/EHV subsea and land
Slide 25: Solid Track Record Of Growth and Profitability
05 Solid Track Record Of Growth and Profitability Cables Segment Steel Pipes Segment Cenergy Group YoY 17% 9% 101% 26% 35% 14% Revenue Growth % 1.047 964 824 581 1.628 1.426 462 1.054 Revenue 230 (€m) 2021A 2022A 2023A 2021A 2022A 2023A 2021A 2022A 2023A EBITDA 10% 11% 13% 1% 6% 11% 8% 9% 12% Margin
Slide 26: Strong Continued Momentum
05 Strong Continued Momentum Current Trading Cables Segment Steel Pipes Segment Cenergy Group YoY 14% (17)% 2% Revenue Growth % 560 812 Revenue 305 252 493 798 (€m) H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 EBITDA Margin % 11% 15% 9% 16% 10% 15% 121 81 41 79 53 EBITDA 27 (€m) H1 2023 H1 2024 H
Slide 27: Disciplined Balance Sheet to Facilitate Major Ongoing Capex Plan
05 Disciplined Balance Sheet to Facilitate Major Ongoing Capex Plan Net Debt Net Debt / EBITDA* Source: Company information CENERGY HOLDINGS | SEPTEMBER 2024 26
Slide 28: Superior a-EBITDA Margin as Compared to Many Key Competitors
05 Superior a-EBITDA Margin as Compared to Many Key Competitors 2023A a-EBITDA Margin Across the Industry1 14.7% 14.2% 10.7% 9.8% 11.1% • Consistently delivered superior a-EBITDA 10.9% 12.1% 8.2% 7.4% 9.2% margin to many of its key peers, driven by: – Increased exposure to HV projects which 14.4% be
Slide 29: Highly Experienced Management Team with Execution Track Record
06 Highly Experienced Management Team with Execution Track Record Alexios Alexiou Alexandros Benos CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER • CEO for Cenergy since 2020 • CFO for Cenergy since 2018 • Joined the group in 1996 and has held various • Several years of banking experience from the
Slide 30: Updated Guidance
Pa 03 UPDATED GUIDANCE co CENERGY HOLDINGS
Slide 31: Updated FY2024 Guidance and Medium-Term Financial Ambitions
Updated FY2024 Guidance and Medium-Term Financial Ambitions € 1 Adjusted EBITDA as per company’s alternative performance measures: Defined as EBITDA, adjusted to exclude metal price lag, impairment / reversal of fixed, intangible assets and investment properties, impairment / reversal of investments
Slide 32: Appendix
- A APPENDIX Co CENERGY HOLDINGS
Slide 33: Summary Financial Output: P&L
Summary Financial Output: P&L CENERGY HOLDINGS Summary P&L (EURm) 2021A 2022A 2023A H1 2024 2021-2023 CAGR Revenue 1,054 1,426 1,628 812 24.3% % Growth 35.3% 14.1% 1.7% COGS (946) (1,281) (1,401) (680) Gross Profit 109 145 226 133 44.3% % Margin 10.3% 10.2% 13.9% 16.3% Other Income 7 7 6 4 SG&A (40)
Slide 34: Summary Financial Output: P&L - Cables Segment
Summary Financial Output: P&L CABLES SEGMENT Summary P&L (EURm) 2021A 2022A 2023A H1 2024 2021-2023 CAGR Revenue 824 964 1,047 560 12.7% % Growth 17.0% 8.6% 13.5% COGS (732) (848) (891) (472) Gross Profit 93 117 156 88 29.7% % Margin 11.2% 12.1% 14.9% 15.8% SG&A (27) (29) (36) (19) EBIT 66 88 118 70
Slide 35: Summary Financial Output: P&L - Steel Pipes Segment
Summary Financial Output: P&L STEEL PIPES SEGMENT Summary P&L (EURm) 2021A 2022A 2023A H1 2024 2021-2023 CAGR Revenue 230 462 581 252 58.9% % Growth 100.8% 25.8% (17.4)% COGS (214) (433) (510) (207) Gross Profit 16 28 71 44 109.3% % Margin 7.0% 6.2% 12.2% 17.6% SG&A (11) (14) (15) (8) EBIT (6) 19 52
Slide 36: Disclaimer
Disclaimer This corporate presentation and accompanying discussion (together with any materials, oral commentary or question and answer session delivered together herewith, the “Presentation”) have been prepared by Cenergy Holdings S.A. (the “Company”, and together with its consolidated subsidiaries
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