Friedrich Vorwerk Group Se · XETR:VH2
Friedrich Vorwerk — FY2023 Earnings Presentation
25 slides from Friedrich Vorwerk's earnings presentation, Mar 26, 2024
Slide 1: Driving the clean energy transition. Earnings Call FY 2023
Driving the clean energy transition. H Earnings Call FY 2023 March 26, 2024
Slide 2: Market update
H Market update 5
Slide 3: GDP Electricity foresees investments of >320 bn € until 2045
The recently confirmed GDP Electricity foresees investments of >320 bn € until 2045 +4,800 km New electricity lines* „ +2,500 km This is the first network development reinforced electricity lines* plan that presents the electricity network we need to complete the energy transition. We have carefully
Slide 4: By approving hydrogen projects, the EU paves the way for the German hydrogen economy
By approving 24 hydrogen projects, the EU paves the way for the German hydrogen economy Commission approves up to €6.9 bn of State aid by seven Member States for the third Important Project of Common European Interest in the hydrogen value chain IPCEI Hy2Infra Important Project of Common ” H2 Projec
Slide 5: The IPCEI approval is an important step towards the German Hydrogen Core Grid
The IPCEI approval is an important step towards the German Hydrogen Core Grid (“Kernnetz”) German Hydrogen Core Grid (Kernnetz) “ Act on hydrogen grid planning and core grid financing passed Federal Minister Habeck: "The foundation stone for the future of hydrogen has been laid. The development of t
Slide 6: Financial performance FY 2023
H Financial performance FY 2023 9
Slide 7: Q4 revenues came out slightly below the very strong previous year's level
As expected, Q4 revenues came out slightly below the very strong previous year’s level Revenue in €m -10% 115,9 109,5 109,4 98,2 92,6 84,4 73,1 -10 Typical seasonal 58,4 revenue development % Revenue development y-o-y in Q4 2023 Q1 22 Q1 23 Q2 22 Q2 23 Q3 22 Q3 23 Q4 22 Q4 23 10
Slide 8: Revenue in FY 2023 showed a moderate y-o-y increase
Despite last year’s rapid growth, revenue in FY 2023 showed a moderate y-o-y increase Revenue Revenue by segment in €m in % +1% 368.2 373.4 368.2 373.4 27 % 32 % Adj. Opportunities +1.4 % 8% 7% Clean Hydrogen Revenue growth 15 % 17 % Electricity y-o-y FY 2023 50 % >2.8 44 % Natural Gas FY 2022 FY 20
Slide 9: Profitability improved significantly compared to Q4 in the previous year
At the same time, profitability could be improved significantly compared to Q4 in the previous year EBITDA EBIT (adj.) in €m, blue bubbles show EBITDA margin in €m, blue bubbles show EBIT margin 6.5% 11.8% 2.4% 7.1% +64% 11.6 +165 % 11.8 % EBITDA margin 6.9 in Q4 2023 7.1 2.6 Q4/22 Q4/23 Q4/22 Q4/23
Slide 10: Without one-off effects, continuous margin improvements over the year
Without one-off effects, we have seen continuous margin improvements over the year EBITDA in €m, blue bubbles show EBITDA margin 13% 12 % 9% 8% 6% +4 11.6 One-off project- 7.4 related provision 8.0 PP 5.6 EBITDA Margin 6.8 Q4/23 vs. Q1/23 Q1/23 Q2/23 Q3/23 Q4/23 13
Slide 11: Full-year profitability remains significantly below previous year
Despite recent margin improvements, full-year profitability remains significantly below previous year EBITDA EBIT (adj.) in €m, blue bubbles show EBITDA margin in €m, blue bubbles show EBIT margin 13.6% 8.6% 9.2% 3.8% 50.1 8.6 % EBITDA margin 33.8 in FY 2023 32.0 14.1 FY 2022 FY 2023 FY 2022 FY 2023
Slide 12: Strong operating cashflow of more than 50 million € in 2023
VORWERK achieved a strong operating cashflow of more than 50 million € in 2023 Cash flow in €m FY 2022 FY 2023 Cashflow from operations 50.4 Very strong cashflow from operations driven esp. by effective TWC reduction -10.3 Cashflow from investment activities Gradually decreasing CAPEX levels 50.4 €m
Slide 13: Net liquidity increased strongly by the end of the year
As a result, net liquidity increased strongly by the end of the year Net liquidity in €m, as at 31.12. of the respective year +14.8 42.1 27.2 42.1 €m Net liquidity as at 31.12.2023 FY 2022 FY 2023 16
Slide 14: VORWERK continues to have a strong balance sheet
In sum, VORWERK continues to have a strong balance sheet as basis for further growth Balance Sheet in €m, as at 31.12.2023 311 311 Fixed Assets* 136 172 Equity 55.1 % (55%) Equity ratio 10 Mezzanine financing Working Capital 117 17 Financial liabilities 24 Operating liabilities (LT) Cash** 59 Aktiva
Slide 15: Driven by A-Nord, the order backlog more than tripled
Driven by A-Nord, the order backlog more than tripled compared to last year Order intake Order backlog in €m in €m +186 % > 3x 1,059 182 1,001 A-Nord 96 Adj. Opportunities ~600 14 Clean Hydrogen + % Order intake ~600 y-o-y in FY 2023 807 Electricity 370 315 FY 2022 FY 2023 FY 2022 84 FY 2023 Natural
Slide 16: Moderate revenue growth at clearly improving margins expected
Based on our strong order backlog, we expect moderate revenue growth at clearly improving margins Revenue Guidance Profitability guidance │EBITDA margin in €m in €m / in % 8.6% 11-13% >2% 380 >380 373 > 368 m€ Revenue Guidance 32 FY 2024 FY 2022 FY 2023 FY 2024 FY 2023 FY 2024 11-13 % Guidance Guida
Slide 17: Business update
H Business update 20
Slide 18: Brunsbüttel LNG connecting pipeline successfully commissioned
Natural gas Despite severe adverse soil conditions and weather, the Brunsbüttel LNG connecting pipeline was successfully commissioned in March 2023 Brunsbüttel LNG connecting pipeline Project update Customer: Despite challenging soil conditions, adverse weather and sabotage, the pipeline was success
Slide 19: Various important service contracts successfully extended
Natural gas In addition, various important service contracts were successfully extended by VORWERK Duration: 2025-2027 with extension option Duration: 2023-2025 Region: Region Berlin, Magdeburg and Leipzig Region: Various transmission pipelines in Eastern and Western Germany Scope: Service & fault c
Slide 20: The A-Nord Project is already underway and making steady progress
Electricity The A-Nord Project is already underway and is making steady progress Project A-Nord Project update Signing of IPA contract 08/23 Civil works First Sections approved for early start of construction in line with §44c EnWG 09/23 ~40% Official start of construction 10/23 First section of cab
Slide 21: Largest revenue contributions expected in 2025 and 2026
Electricity We continue to expect the largest revenue contributions in the financial years 2025 and 2026 Estimated revenue distribution A-Nord compensation scheme in €m, estimation Schematic representation Maximum compensation Time Bonus Costs >230 Malus Project Others margin >200 Minimum compensati
Slide 22: Numerous even larger electricity projects coming up
Electricity Besides A-Nord, there are numerous even larger electricity projects coming up 2024 2025 2026 2027 2028 2029 2030 2031 2032 A310 1,5 bn € A-Nord OstWind6 SuedLink BorWin6 SuedOstLink BalWin 3 + 4 + LanWin 1+ 2 + 4 + 5 BalWin 1+ 2 NordOstLink + DC32 DC40 + 41 WindaderWest Korridor B Projec
Slide 23: VORWERK already participating in large-scale hydrogen projects
Clean Hydrogen VORWERK is already participating in various large-scale hydrogen projects Project HyPerLink Germany Get H2 Nukleus HH Win HyPerLink 1-5 Lingen Green Hydrogen Hamburger H2 Industrienetz Part of major project and IPCEI project First starting point for a connected 60+ km pipeline network
Slide 24: Disclaimer
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Slide 25: Driving the Clean Energy Transition.
H Driving the Clean Energy Transition.
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