Friedrich Vorwerk Group Se · XETR:VH2
Friedrich Vorwerk — Investor Presentation (March 2021)
27 slides from Friedrich Vorwerk's investor presentation, Mar 8, 2021
Slide 1: Driving the clean energy transition
Driving the clean energy transition. March 2021 Strictly private and confidential
Slide 2: VORWERK is driving the clean energy transition
VORWERK is driving the clean energy transition
Slide 3: Escalating climate change forces governments to take drastic action
Escalating climate change forces governments to take drastic action Global surface temperature anomalies Global government action Land and ocean; temperature anomaly with respect to 20th century average +1.0 °C Paris agreements Limit global warming to a maximum of 1.5°C by 2050 EU Green Deal Achieve
Slide 4: Clean energy transition requires significant energy infrastructure investments
Clean energy transition requires significant energy infrastructure investments Planned energy infrastructure investments1 Key catalysts Natural gas grid expansion Expansion of natural gas infrastructure to compensate for coal and nuclear phase-out Electricity highways Realization of electricity high
Slide 5: VORWERK plans, realizes and operates the energy infrastructure of the future
VORWERK plans, realizes and operates the energy infrastructure of the future In highly attractive markets With success Hydrogen €291m >1,300 H2 revenue employees Electricity Gas 16% >15% since 1962 EBIT margin organic CAGR 4 Notes: Management estimate for 2020; CAGR based on 2014-2020
Slide 6: 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 Pipelines Compressor Storage & Gas pressure Terminals station measurement regulating & metering stations Landfall Underground Transformer Power- cable
Slide 7: VORWERK's fully integrated service offering enables critical energy infrastructure
VORWERK’s fully integrated service offering enables critical energy infrastructure Automated welding processes Process & detail engineering Public and private permitting Gas pressure control & measuring plants No-dig procedures (HDD) Compressor & pump stations Cable pull Electrolyser technologies In
Slide 8: 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 9: Clean energy transition commands unprecedented investments in energy infrastructure
Clean energy transition commands unprecedented investments in energy infrastructure Natural gas Electricity Hydrogen >€5 bn ~€17 bn €430 bn Planned investment Planned investment Planned investment until 20261 until 20262 until 20303 1) NDP investment volume 2020-2026; volume attributed to year of pl
Slide 10: VORWERK has a unique track-record and customer access in the gas market
VORWERK has a unique track-record and customer access in the gas market Natural gas VORWERK track-record Additional opportunities >5 ~35% Single energy consumers (e.g. industrials) Grid upgrades bn € share of NDP projects Service & maintenance 2012-2018 with VORWERK International projects (e.g. Balt
Slide 11: VORWERK is ideally positioned to benefit from planned electricity highways
VORWERK is ideally positioned to benefit from planned electricity highways Electricity VORWERK track-record Additional opportunities Underground AC projects ~17 ~20% Single energy consumers (e.g. industrials) Cable line upgrades bn €1 share of relevant NDP Service & maintenance projects 2015-2020 ba
Slide 12: Leading in decarbonisation based on decades-long innovation track-record
Leading in decarbonisation based on decades-long innovation track-record Case study Gas: Nesselgrund Case study Electricity: DolWin 6 Planning, realization and operation of 45 km onshore underground cable for worldwide first CO2 neutral gas pressure transporting 900 MW green offshore wind regulating
Slide 13: VORWERK is already working on the nucleus of the European hydrogen backbone
VORWERK is already working on the nucleus of the European hydrogen backbone Hydrogen Refinery Customer Lingen, BP 2030 2040 Power plant Customer Lingen, RWE Electrolyser Chemical park Marl, Evonik Additional 430 order volume upgrade ~€ 18 m bn €1 Order volume new construction Ruhr Oel refinery Europ
Slide 14: VORWERK participated in the realization of the first German electrolyser pilot project
VORWERK participated in the realization of the first German electrolyser pilot project Pilot plant VORWERK electrolysis competencies Power-to-Gas Falkenhagen 4 1 5 6 9 17 2 3 8 7 13 12 11 16 10 15 19 "World's first 18 14 demonstration plant for the storage of wind power in the natural gas grid” 1 Un
Slide 15: In Germany, VORWERK customers are planning 500 MW of new electrolysis capacity
In Germany, VORWERK customers are planning 500 MW of new electrolysis capacity Select planned electrolyzer projects Location Plant size Planned by 30 6 MW 1 Lingen 100 MW 100 MW 2 Diele 100 MW 2 100 3 Wesseling 100 MW ITM Power MW 5 10 1 35 9 MW 4 Leuna 100 MW MW 10 8 MW 100 5 Bad Lauchstädt 35 MW T
Slide 16: VORWERK in the midst of the universe of innovative energy players
VORWERK in the midst of the universe of innovative energy players Energy Energy Transformation Grids Operation & Service Hydrogen 15
Slide 17: VORWERK benefits from intact and sustainable market entry barriers
VORWERK benefits from intact and sustainable market entry barriers Customers & References Turnkey competence Energy grids Energy transformation Service & Operation Intelligent Infrastructure Mgmt. Regulation & accreditation Technology & Patents G 468- 1 OrQa® flow metering HDD drilling Cathodic anti
Slide 18: Dynamic growth track-record with >15% CAGR
Dynamic growth track-record with >15% CAGR Revenue development Revenue 2020 by segment in €m revenue split in % CAGR: 22% 291 269 13% CAGR: 15% 1% 173 12% €291m 88 74% … 2014 2019 2019 2020 as-if as-if excl. incl. BoDo1 BoDo2 Natural Gas Clean Hydrogen Electricity Adjacent opportunities 1) Presentat
Slide 19: Best-in-class profitability profile with >16% EBIT margin
Best-in-class profitability profile with >16% EBIT margin EBIT adj. EBIT adj. 2020 by segment1 in €m and margin in bubbles as % of EBIT adj. 12.5% 14.7% 16.3% 47.4 10% 39.5 1% 16% €47m 13.2 73% 2018 2019 2020 as-if incl. BoDo Natural Gas Clean Hydrogen Electricity Adjacent opportunities 1) Reconcili
Slide 20: High revenue visibility from a strong order backlog
High revenue visibility from a strong order backlog Order backlog Project pipeline1 as at 31 December 2020 Projects in acquisition, not yet included in order backlog OGE new compressor station Legden €32m CENAM Closed Loop high-pressure €30m 7% test rig Mexico 7% Amprion Corridor A-Nord up to €300m
Slide 21: Substantial growth perspectives driven by accelerating clean energy transition
Substantial growth perspectives driven by accelerating clean energy transition Revenue outlook Segment revenue split in €m, bubbles show EBIT margin targets in €m >16% >1,000 291 >500 >1,000 >500 291 2020 Mid-term Long-term 2020 Mid-term Long-term 3-5 years 7-10 years 3-5 years 7-10 years Clean Hydr
Slide 22: Clear strategic roadmap for sustainable and profitable growth
Clear strategic roadmap for sustainable and profitable growth Capture structural growth by focusing on clean energy and hydrogen Drive profitable expansion M&A as catalyst to accelerate leveraging existing client future growth network and proven technology International rollout of proven business mo
Slide 23: The dedicated VORWERK hydrogen lab will focus on hydrogen-ready infrastructure
The dedicated VORWERK hydrogen lab will focus on hydrogen-ready infrastructure Readily Development Research VORWERK Component deployable required required Gas compressor Electrolyzer Gas dryer technologies Gas separator Flow meters Heat extractor Chromatograph Transmission pipeline Compressor statio
Slide 24: Proven M&A strategy as a key catalyst to accelerate future growth
Proven M&A strategy as a key catalyst to accelerate future growth Specialized technologies Hydrogen technologies Horizontal direct drilling (HDD) Biogenic gases and synthetic fuels 2021 Power grids Cathodic corrosion Employees & competencies HDD drilling protection (CCP) 2020 Smaller regional player
Slide 25: 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 26: Driving the clean energy transition
H2 Driving the clean energy transition
Slide 27: Disclaimer
Disclaimer The following presentation, including any printed or electronic copy of these slides, the talks given by the presenters, the information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection wi
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