Friedrich Vorwerk Group Se · XETR:VH2
Friedrich Vorwerk — H1 2021 Earnings Presentation
19 slides from Friedrich Vorwerk's earnings presentation, August 2021
Slide 1: Driving the clean energy transition. H1 Results August 2021
Driving the clean energy transition. H1 Results August 2021
Slide 2: Market update
Market update 1
Slide 3: Recent changes to the German Climate Change Act increase pressure
Recent changes to the German Climate Change Act increase pressure Climate commitments Increasingly ambitious climate goals Goal of cutting total carbon emission by 65% by 2030 (vs. previous target of 55%) and by 88% by 2040 Carbon neutrality by 2045 Goal of reaching full carbon neutrality by 2045 (v
Slide 4: Natural gas continues to become a more critical energy source
Natural gas continues to become a more critical energy source Gas consumption Drivers YoY increase in %; in Europe Cold winter temperatures 2021’s colder and longer winter caused an extended heating period Coal (and nuclear) phase out Switch from coal- to gas-fired power plants due to coal/nuclear p
Slide 5: Since the IPO planned TSO investments in gas grid have further increased
Since the IPO planned TSO investments in gas grid have further increased Planned investments in German natural gas infrastructure in €bn; according to the confirmed NDP 2030 (2020) €4.8 Projects commissioned by 2030 and €3.8 bn by 0.5 8.9 8.5 bn 2026 €8.9 2,287 New Pipeline to be constructed bn km D
Slide 6: Forecasts for electricity consumption by 2030 continue to rise
Forecasts for electricity consumption by 2030 continue to rise Electricity consumption Drivers in TWh; in Germany1) Electric vehicles Expectation of 14 million cars on the road by 2030 up from a previous forecast of 10 million +13% 655 Heat pumps 580 Increased usage of electrical heat pumps in build
Slide 7: New electricity NDP draft 2035 (2021) leads to substantially higher investment volumes
New electricity NDP draft 2035 (2021) leads to substantially higher investment volumes Planned investments in German electricity infrastructure in €bn; according to the 2nd draft NDP 2035 (2021) Invested in earthbound 16.5 79.0 €38 HVDC lines, with 14 GW running from north to south bn 62.5 €79.0 2-4
Slide 8: Cost estimates of envisioned hydrogen backbone have increased significantly since IPO
Cost estimates of envisioned hydrogen backbone have increased significantly since IPO Est. cost of hydrogen backbone Drivers in bn € by 20401) More newly built pipelines Share of 30+% of newly built pipelines vs. ~25% in previous draft +27% 81 64 Greather network length Extension of envisioned hydro
Slide 9: Financial performance
Financial performance o © @
Slide 10: After adverse weather conditions in Q1 Vorwerk was able to exceed previous year's Q2 revenues
After adverse weather conditions in Q1 Vorwerk was able to exceed previous year’s Q2 revenues Revenue in €m1 +6% 83.9 80.1 75.3 69.9 62.2 Typical seasonal 52.5 revenue development Q1/20 Q1/21 Q2/20 Q2/21 Q3/20 Q4/20 +100% days of frost Q1 21 vs Q1 20 1) Revenues represent revenues as reported adjust
Slide 11: The share of the growth segments Electricity and Clean Hydrogen continues to increase
The share of the growth segments Electricity and Clean Hydrogen continues to increase Revenues by segment in % 137.9 132.7 13 % 14 % Adjacent Opportunities 4% Clean Hydrogen 11 % 16 % Electricity 76 % 66 % Natural gas H1 20 H1 21
Slide 12: Vorwerk maintains its superior profitability based on unique market positioning
Vorwerk maintains its superior profitability based on unique market positioning EBITDA (adj.1) EBIT (adj.1) in €m in €m +40% +49 % 27.5 21.3 19.6 14.3 H1 20 H1 21 H1 20 H1 21 11 1) Adjustments primarily refer to IPO-related costs
Slide 13: Substantial margin uplifts could be realized across all segments
Substantial margin uplifts could be realized across all segments EBIT margin in % +40.4 PP +5.1 PP +8.2 PP 24.0 15.6 14.2 18.4 10.8 9.1 10.2 H1 20 H1 21 H1 20 H1 21 H1 20 H1 21 -16.4 H1 20 H1 21 Natural Gas Electricity Clean Hydrogen Adjacent Opportunities 12
Slide 14: Postponement of project awards leads to decrease in order intake
Postponement of project awards leads to decrease in order intake Order intake Order backlog in €m in €m 0% -19 % 129 277 278 8% 7% Adjacent Opportunities 18 % 3% 7% 104 Clean Hydrogen 1% 9% 5% 12 % Electricity 16 % 2% 14 % 75 % 80 % 74 % Natural gas 68 % H1 20 H1 21 Q2/20 Q2/21 13
Slide 15: Business update
Business update 14
Slide 16: VORWERK joins the GET H2 initiative & realizes its first major project
VORWERK joins the GET H2 initiative & realizes its first major project Members of the GET H2 initiative Nucleus and 2050 Vision Refinery Lingen, BP Power plant Lingen, RWE Chemical park Marl, Evonik Ruhr Oel refinery Gelsenkirchen, BP Nucleus realized by + many more… 15
Slide 17: Key Investment Highlights
Key Investment Highlights Climate change commands billions in infrastructure investments in VORWERK core end markets gas, electricity and hydrogen 50+ years of technology leadership in design, realization and operation of system critical energy infrastructure Key player in ramping up the European hy
Slide 18: 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 an
Slide 19: Driving the clean energy transition
H2 Driving the clean energy transition
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