Compagnie D'entreprises Cfe Sa · EURONEXT:CFEB
Compagnie D'entreprises Cfe Sa — CFE — Investor Day (June 2022)
63 slides from Compagnie D'entreprises Cfe Sa's investor day presentation, June 2022
Slide 1: We bring together people, skills, materials and technology
We bring together people, skills, materials and technology in a community of change for good June 2022 WOOD HUB, Brussels (future CFE HQ)
Slide 2: Today’s presenters
Today’s presenters Raymund Trost CEO as of July 2022 Member of Executive Committee since 2015 Professional experience CEO CFE Contracting (2015-present) CEO Joris Ide (2011-2015) Various global leadership roles at Owens Corning Fabien De Jonge CFO Member of Executive Committee since 2014 Profe
Slide 3: Agenda
Agenda Building a sustainable and innovative world The SPARC strategy Complementary business segments in 3 core growth countries Financial overview and targets Capital Markets Day June 2022 3
Slide 4: Building a sustainable and innovative world
Building a sustainable 1 and innovative world Capital Markets Day June 2022 4
Slide 5: Together, we shape smart and sustainable living and working places
Shaping tomorrow’s world of innovation and sustainability CFE supports society to create the highest impact for the next generation: • Sustainable buildings • Smart industries • Infrastructure for tomorrow's mobility & energy Together, we shape smart and sustainable living and working places Capital
Slide 6: Why invest in CFE?
Why invest in CFE? We are a longstanding We cover We have a solid & future- integrated multi-disciplinary the entire building proof strategy based group addressing highly lifecycle, from acquisition on value creation attractive growth markets to maintenance for all stakeholders, through in 3 countri
Slide 7: After the streamlining of its operations, the business is now ready for a stand-alone future
After the streamlining of its operations, the business is now ready for a stand-alone future 2022 Demerger of CFE allowing CFE to concentrate on core activities and gain agility Streamlining the 2020 1880 organization towards CFE and BPI Real Estate Company creation and stock a fully integrated cr
Slide 8: We are a leading multidisciplinary group with complementary expertise
We are a leading multidisciplinary group with complementary expertise offering end-to-end solutions to our clients 2021 Revenue (€m) Order book (€m) EBIT (€m) FTEs L3Y avg ROE 1,125 1,621 58.0 ~3,100 25.3% Group Construction & Green-Offshore Real estate development Multitechnics Construction & Renov
Slide 9: Strong and futureproof leadership position
Strong and futureproof leadership position Leverage on existing leadership positions and know-how… …to shape the future state of the world Leader in large scale wood and hybrid buildings in Belux Top 3 construction contractor in Buildings in Belgium (155,050m2) Largest integrated rail infrastructure
Slide 10: CFE bound to benefit from megatrends in its end markets
CFE bound to benefit from megatrends in its end markets Buildings Urgency toward smart buildings and energy efficient materials • Carbon neutral and circular by 2050 (various governments have launched policies and investment programs that will benefit the renovation market, in addition to the over
Slide 11: Strong fundamentals for real estate development in all our markets
Strong fundamentals for real estate development in all our markets Evolution and general trends in the residential real estate market Belgium Luxembourg Poland Modest growth, recovering from the Further strengthening of the Strong growth supported by health crisis economy consumption and investment
Slide 12: Market context remains accommodative for the construction industry outlook
Market context remains accommodative for the construction industry outlook European building construction output evolution Main market drivers for 2022-2024 YoY change at 2020 prices (%) 7,1% Confidence in the market is back to pre- pandemic levels according to the purchasing managers’ index 3,7% 3,
Slide 13: Increased use of technology is driving high growth in CFE’s end markets
Increased use of technology is driving high growth in CFE’s end markets European smart building market European industrial automation & control systems market Revenue in $bn Revenue in $bn CAGR 11.7% CAGR 7.1% 36,8 42,3 28,1 30,0 21,2 26,3 18,0 18,7 2019 2020 2021 2026e 2019 2020 2021 2026e • In ord
Slide 14: Our people are our Heroes
Our people are our Heroes We invest in our people and everyday we aim to be the best place to work Why do our heroes join the CFE Framily? We attract and retain the right talents Human & caring environment • We are present on several job fairs, we focus on the right work-life balance, Strong family
Slide 15: Highly experienced executive committee
Highly experienced executive committee Excellence in operations Raymund Trost CEO CFE and leadership Valérie Van Brabant Fabien De Jonge CHRO CFE CFO CFE Alexander Hodac Jacques Lefèvre CEO Construction & Over 146 years of combined CEO Real estate Executive 146 Renovation Belgium team and permanent
Slide 16: The SPARC strategy
2 The SPARC strategy Capital Markets Day June 2022 16
Slide 17: The SPARC strategy
The SPARC strategy SPARC(LE) is our way to impact the world Shift Perform Accelerate Return Community We strive for excellence for We change the world by We accelerate through We put our people and our customers in risk We create attractive putting sustainability & platforms for sustainable partners
Slide 18: SHIFT: we transform through sustainability
SHIFT: we transform through sustainability Putting sustainability at the heart of our business to transform (y)our world Industry frontrunner in safety Accident frequency rate Accident severity rate (2021) (2021) 28,6 22,4 1,0 0,7 35,580 tons of materials reused CFE Industry CFE Industry in projects
Slide 19: SHIFT: we transform through innovation
SHIFT: we transform through innovation Innovation is a strategic lever for sustainability Innovation supports long term value creation Increased productivity and optimized processes by making use of Enables efficient use of resources technological solutions in industries Smart logistics leading to i
Slide 20: PERFORM: we strive for excellence in risk management, operational processes and resource productivity
PERFORM: we strive for excellence in risk management, operational processes and resource productivity Selective bidding: local entities, right market choices, EBIT Margin central risk governance Risk management and Fit 4 Future & Way of Working: best practices, standard 2.3x operational excellen
Slide 21: ACCELERATE: through sustainable growth platforms
ACCELERATE: through sustainable growth platforms CFE’s integrated approach allows us to go into high gear and to accelerate through platforms for sustainable growth Total solutions provider Integrated and A-Z offer of project management & services, from design & development, to construction & mainte
Slide 22: Complementary business segments in core growth countries
Complementary business 3 segments in 3 core growth countries Capital Markets Day June 2022 22
Slide 23: Strong accretive value to be created by a combination of our strategic activities
Strong accretive value to be created by a combination of our strategic activities Recurring intragroup revenue generation • 95.7% of BPI’s projects have been built by CFE Construction & Renovation Offering end-to-end solutions • Combination of business segments such as real estate development, const
Slide 24: We leverage our core technologies and competencies across our businesses
We leverage our core technologies and competencies across our businesses Early Integrated technical, Automation & involvement, economic & visualization collaboration sustainable engineering & partnering Parametric design Smart BMS & using bio based off- IoT Construction & Renovation site constructi
Slide 25: BPI Real Estate
BPI Real Estate 3.1 Inner-city developer enhancing a sustainable future Capital Markets Day June 2022 25
Slide 26: BPI Real Estate is a renowned developer with a focus on inner-city and urban development
BPI Real Estate is a renowned developer with a focus on inner-city and urban development A talented team of Real estate developer operating in Belgium, Poland more than 80 and Luxembourg employees Over 4,375 More than Addressing 4 end-markets from a sustainable residential units 477,000m2 angle:
Slide 27: BPI Real Estate is well positioned to steer towards an ambitious and sustainable future
BPI Real Estate is well positioned to steer towards an ambitious and sustainable future • Know-how on the main real • Off-market acquisitions and • Development of mixed-use estate sectors (residential, office, large tenders with a commercial projects retail, services) edge • Partnerships when approp
Slide 28: Highly attractive project portfolio of 477,000m² in development
Highly attractive project portfolio of 477,000m2 in development Proven track record Selection of highly attractive project portfolio Erasmus Gardens Grand Poste Move’Hub Key West John Martin Arlon 53 Brussels Liège Brussels Brussels Antwerp Brussels 160,000 m2 8,000 m2 51,000 m2 63,200 m2 9,900 m2 1
Slide 29: Selection of BPI’s promising project pipeline
Selection of BPI’s promising project pipeline Project Country Type Gross sqm1 GDV (€m) % Sold2 2022 2023 2024 2025 Wooden Luxembourg Office 5,152 N/A3 12% Gravity Luxembourg Mixed-use 12,180 46 67% Livingstone Phase 3 Luxembourg Mixed-use 3,704 29 95% Under construction 4 Bavière D Belgium Mixed-use
Slide 30: Multitechnics
Multitechnics 3.2 One-stop-shop offering integrated solutions to multiple end-markets Capital Markets Day June 2022 30
Slide 31: What do we do at VMA?
What do we do at VMA? €196m ~1,000 >20 5 turnover employees Locations fields of expertise Multitechnical Total Process Energy Robotisation Maintenance installations Solutions Optimisation Leading multitechnical Adding value based on a Offering the right approach to Reliable recurring service Targeti
Slide 32: VMA is an integrated solution provider combining expertise and proximity with its clients
VMA is an integrated solution provider combining expertise and proximity with its clients 1 2 3 4 5 Delivering integrated Strong vertical A flexible and project Long standing integration: we engineer, A large variety of total solutions based driven organization partnerships with a design, install an
Slide 33: VMA is a one-stop-shop, ideally positioned to benefit from a wide variety of growth trends
VMA is a one-stop-shop, ideally positioned to benefit from a wide variety of growth trends Our positioning Growth drivers • Ability to offer global solutions (engineering- • European energy efficiency objective (Green Deal): design-installation-maintenance) renovation of buildings per year to triple
Slide 34: MOBIX, a leading provider of total solutions for smart infrastructure in Belgium
MOBIX, a leading provider of total solutions for smart infrastructure in Belgium MOBIX at a glance A market leader with best-in-class operations within attractive niches A long-term relationship with its main clients based on • A track record of reliable quality service in a segment where safety is
Slide 35: Construction & Renovation
Construction & Renovation 3.3 Leading player in a fragmented market with sustainability at the core of its operations Capital Markets Day June 2022 35
Slide 36: An established construction & renovation player in Belgium
An established construction & renovation player in Belgium Key figures Our success factors in Belgium 1 Careful client selection and develop a future-proof, balanced portfolio Present Belgium since 482 +2.1% 1921 €m – 2021 turnover of expected GDP growth in 2022e1 2 Focus on margin improvement over
Slide 37: An established construction & renovation player in Luxembourg
An established construction & renovation player in Luxembourg Key figures Our success factors in Luxembourg 1 Specialist in structural works and total construction projects Present in Luxembourg since 100 +3.7% Strong involvement in sustainable development (SuperDrecksKëscht label, 1970 €m – 2021 tu
Slide 38: A solid presence in Poland, a growing market with strong fundamentals
A solid presence in Poland, a growing market with strong fundamentals Key figures Our success factors in Poland 1 Strong focus on client selection: 100% focus on private clients in buildings only Present in Poland since 136 +5.2% 1996 €m – 2021 turnover of expected GDP growth in 2022e1 2 Well divers
Slide 39: Wood Shapers, an end-to-end integrated offer of healthy and sustainable space solutions
Wood Shapers, an end-to-end integrated offer of healthy and sustainable space solutions Different technologies to ensure a total control of the The approach of Wood Shapers construction cost and performance • Wood Shapers originally created as joint venture between CFE Contracting and BPI Real Estat
Slide 40: Investments
Investments 3.4 Investments and ventures in sustainable and green initiatives Capital Markets Day June 2022 40
Slide 41: Investments in port-related industrial zones and green energy storage through RENT-A-PORT
Investments in port-related industrial zones and green energy storage through RENT-A-PORT • Development in a sustainable way of industrial land with after market activities in a strategic and growing region in Vietnam 50.0%1 • Total of 5 industrial zones (Deep C) and +1,850 hectares of remaining lan
Slide 42: Offshore windfarm investments through Green Offshore
Offshore windfarm investments through Green Offshore • Direct and indirect investments in both offshore windfarms and holding company Otary 50.0%1 50.0%1 Green offshore 8.75% Green offshore 12.5% • The two offshore wind farms supply renewable energy to 700,000 households, resulting in a reduction of
Slide 43: Financial overview and targets
4 Financial overview and targets Capital Markets Day June 2022 43
Slide 44: Streamlining of business operations, selective bidding and a supportive market has led to growth and margin expansion
Streamlining of business operations, selective bidding and a supportive market has led to growth and margin expansion Consolidated CFE figures Revenue and order book (€m) EBIT (€m) 12.1% 1 3% 1.549 1.621 5.9% 3.0% 2.3% 3.7% 5.2% 1.331 1.376 1.433 1.125 12% Belgium 995 1.003 1.027 58,0 710 14% Poland
Slide 45: Diversified sources of income through complementary segments
Diversified sources of income through complementary segments Construction Holding & CFE Unallocated costs1 & Renovation Investments €m, unless stated otherwise 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Revenue 131.1 106.3 277.1 321.4 634.8 718.3 n.a. n.a. 21.9 9.8 YoY growth 121.8% (18.9%) 4
Slide 46: Healthy and growing balance sheet
Healthy and growing balance sheet Balance sheet (€m) 2019 2020 2021 KPIs 2021 Tangible fixed assets 85.2 83.7 82.3 Goodwill 21.6 21.6 23.8 €m, unless stated otherwise Investments accounted for using the equity 83.6 87.9 102.6 Gearing method 45.8% Of which Rent-A-Port and Green Offshore 38.8 36.3 52.
Slide 47: Decreasing debt level supporting CFE’s growth
Decreasing debt level supporting CFE’s growth Debt structure 31/12/2021 Net financial surplus / (debt) evolution (€m)1 Gross financial debt €m CFE - Corporate financing 110 BPI - Corporate financing 57 138,4 120,8 99,9 BPI - Project financing 45 Leasing and others 44 (65,2) Total 256 (104,6) (85,3)
Slide 48: Expanding order book and gross development value through Accelerate strategy
Expanding order book and gross development value through Accelerate strategy locks in future revenue Construction & CFE Renovation Split order book (€m) 1.492,6 1.567,0 1.385,5 401,0 368,7 433,9 GDV 1.166,1 €1,603m 1.016,8 1.058,7 2019 2020 2021 Construction Multitechnics Forward order book (€m) Div
Slide 49: CFE outlook
CFE outlook Guidance for 2022 Mid-term targets • The impact of the Ukrainian conflict in terms of rising material prices and disruption of the supply chains will weigh on CFE’s net result in 2022 Moderate Revenue growth Improvement of Net Result as from 2023 • The net result should therefore be lowe
Slide 50: Leveraging attractive building blocks for a new future
Leveraging attractive building blocks for a new future Leadership positions in 4 core markets Leading real estate developer covering the entire building cycle Fully integrated multitechnical installation offering for smart industries Construction contractor of scale with wood, smart and circul
Slide 51: Appendix
Appendix Capital Markets Day June 2022 51
Slide 52: Client testimonials showcasing CFE’s outstanding quality of service
Client testimonials showcasing CFE’s outstanding quality of service and impeccable reputation amongst it diversified client base “The Plopsa investment team realizes our “The BPC teams have always worked with “VMA has a very capable team in “The collaboration with BPI on the Polish projects together
Slide 53: The offsite construction market rides the wave of innovation
The offsite construction market rides the wave of innovation and is expected to nearly double between 2020 and 2030 Global revenues generated by the offsite construction market Advantages of offsite construction In $bn Faster building time 235 Low labour intensity, partial automation 130 Higher prod
Slide 54: CFE leads the way in green construction by integrating sustainability initiatives
CFE leads the way in green construction by integrating sustainability initiatives in its operations Sustainability at the core of construction activities Construction & Towards off-site and modular construction Renovation • Easy access and reduction of waste production Zin case study • Makes deconst
Slide 55: VMA has strengthened its industrial automation business with the acquisition of Rolling Robotics
VMA has strengthened its industrial automation business with the acquisition of Rolling Robotics (RR) 2017 Incorporation of Rolling Robotics 2019 Joint venture: VMA RR (51% owned by VMA) Rolling Robotics specialises in simulation and off-line programming of VMA acquires 100% of RR & the remaining
Slide 56: NOSCO PC2 Haiphong City
NOSCO 2022 PC2 Haiphong City Centre 2022 PC1 PC3 MPIZ PC4 DAP 2022 2021 2021 VINFAST 2021 SAO DO 2022 2021 LACH HUYEN PORT
Slide 57: Portfolio of strong brands in Construction & Renovation
Portfolio of strong brands in Construction & Renovation Belgium Timber construction Luxembourg Poland Capital Markets Day June 2022 57
Slide 58: Key financials Other Investments
Key financials Other Investments 50.0% 50.0% (€m) 2019 2020 2021 Green Offshore (€m) 2019 2020 2021 Turnover 32.8 72.7 50.5 Production (in GWh) 1.0 1.6 2.5 EBITDA 6.4 16.9 8.7 Rentel 1.0 1.1 0.9 EBIT 4.1 14.2 6.2 SeaMade - 0.5 1.6 Net result (group share) 2.2 1.2 3.6 Net result (group share) 4.9 11.
Slide 59: Consolidated profit and loss
Consolidated profit and loss Year ended December 31 (€m) 2020 2021 Revenue 1,026.6 1,125.3 Other operating income 64.6 50.7 Purchases (745.7) (793.5) Remuneration and social security payments (189.1) (202.7) Other operating expenses (109.2) (111.4) Depreciation and amortisation (19.7) (20.2) Goodwil
Slide 60: Consolidated balance sheet
Consolidated balance sheet 2021 Assets 2020 2021 PF post CFErger Intangible assets and goodwill 283.4 25.7 25.7 Property, plant and equipment 2,515.1 82.3 82.3 Investments accounted for using equity method 204.1 103.4 103.4 Other non-current financial assets 90.6 79.3 79.3 Other non-current assets 1
Slide 61: Consolidated cash flow statement
Consolidated cash flow statement Year ended December 31 (€m) 2020 2021 Operating income 27.6 48.3 Depreciation and amortisation 19.7 20.2 (Decrease)/increase of provisions (1.9) (5.1) Impairments on assets and other non-cash items (0.1) 8.1 Loss/(profit) on disposal of tangible and financial fixed a
Slide 62: Glossary
Glossary BIM Building Information Modelling BMS Building Management Systems BREEAM Building Research Establishment Environmental Assessment Method CAGR Compounded annual growth rate Capital employed Opening equity balance of the fiscal year + net financial debt end of fiscal year Current ratio Curre
Slide 63: 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, neither CFE nor DEME undertake any obligation to provide the recipient with access to any additional information or to