Friedrich Vorwerk Group Se · XETR:VH2
Friedrich Vorwerk — Q2 2024 Earnings Presentation
23 slides from Friedrich Vorwerk's earnings presentation, Aug 14, 2024
Slide 1: Q2 Earnings Call
Q2 Earnings Call H 14 August 2024 Driving the clean energy transition.
Slide 2: Introduction
H Introduction 2
Slide 3: With 60 years of experience, VORWERK is realizing the energy infrastructure of the future
With 60 years of experience, VORWERK is realizing the energy infrastructure of the future A strong group of companies… … in highly attractive markets Husum Natural Electricity Clean Adjacent Gas Hydrogen Opportunities Marne Wiesmoor Hamburg Skwierzyna (PL) … with decade-long customer relationships T
Slide 4: 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 Terminals Storage & Compressor Gas pressure Pipelines measurement stations regulating & International metering stations pipelines Landfall Power-to-Hea
Slide 5: Market update
H Market update 5
Slide 6: German grid operators have submitted their application for the realization of the H2 grid
The German Grid operators have submitted their application for the realization of the H2 grid German Hydrogen Core Grid (Kernnetz) ” 9,666 km Total grid length 40% vs. 60% New pipelines Converted pipelines 19.7 billion € Total envisaged investment volume 2024-2032 Planned time for realizing the core
Slide 7: The expansion of the district heat grid remains a key pathway to decarbonize the buildings sector
The expansion of the district heat grid remains a key pathway to decarbonize the buildings sector Recent prognos study on required investment in district heating grid Study on district heating grids: Investment in district heating infrastructure* 43.5 billion euros must be invested in € bn in distri
Slide 8: Financial performance
H Financial performance 8
Slide 9: The second quarter saw a strong revenue increase compared to previous year
The second quarter saw a strong revenue increase compared to previous year Revenue in €m +27% 117.4 109.5 98.2 92.6 76.7 Typical 73.1 seasonal 27 revenue development + % revenue increase y-o-y in Q2 2024 Q1 Q2 Q3 Q4 2023 2024 9
Slide 10: Half-year revenues increased by 17% compared to the previous year
As a result, half-year revenues increased by 17 % compared to the previous year Revenue Revenue by segment in €m in % +17% 194.1 194.1 165.6 165.6 27 % Adj. Opportunities 33 % 6% 17 Clean Hydrogen 5% Electricity 30 % 15 % + % revenue increase 46 % 37 % Natural Gas y-o-y in H1 2024 H1 2023 H1 2024 H1
Slide 11: With a 121% y-o-y EBITDA hike, profitability growth has outperformed the revenue growth
With a 121 % y-o-y EBITDA hike, profitability growth has outperformed the revenue growth by far EBITDA EBIT (adj.) in €m, blue bubbles show EBITDA margin in €m, blue bubbles show EBIT margin 8.7% 15.1% 3.9% 10.7% +121% 15.1 % 17.7 EBITDA margin +248 % in Q2 2024 12.6 8.0 10.7 3.6 % Q2 2023 Q2 2024 Q
Slide 12: Year to date, EBITDA margin is at 12.6% and EBIT up 199%
Year to date, EBITDA margin is at 12.6 % and EBIT up 199 % compared to previous year EBITDA EBIT (adj.) in €m, blue bubbles show EBITDA margin in €m, blue bubbles show EBIT margin 8.2% 12.6% 2.9% 7.5% +80% 24.4 +199 % 12.6 % EBITDA margin 14.5 in H1 2024 13.6 199 4.9 + % H1 2023 H1 2024 H1 2023 H1 2
Slide 13: Order intake and backlog remain on record level
Driven by strong market demand, order intake and backlog remain on record level Order intake Order backlog in €m in €m +160 % 1.214 +28% 408 +28 % Order intake 318 year-on-year +158% 467 286 111 2023 2024 2023 2024 30.06.2023 30.06.2024 1.2 €bn Order backlog Q2 H1 13
Slide 14: VORWERK continues to have a strong balance sheet as basis for further growth
VORWERK continues to have a strong balance sheet as basis for further growth Balance Sheet in €m, as at 30.06.2024 317 317 Fixed Assets* 148 179 Equity Working Capital 158 23 27 10 Mezzanine financing Financial liabilities Operating liabilities (LT) 56.4 % Equity ratio 78 Operating liabilities (ST)
Slide 15: For 2024, we raise our guidance to >€410m revenues
For 2024, we raise our guidance to >€410m revenues at upper end of 11-13% EBITDA-margin range Revenue Guidance Profitability guidance │EBITDA margin in €m in €m / in % 8.6% 11-13% +10% 410 >410 373 >380 Expectation > m€ 32 New revenue guidance FY 2024 FY 2023 FY 2024 FY 2024 FY 2023 FY 2024 11-13 %
Slide 16: Business update
H Business update 16
Slide 17: VORWERK won three additional lots of the SEL
Based on excellent performance, VORWERK was able to win three additional lots of the SEL New project acquisitions Current project update terranets bw Süddeutsche Erdgasleitung (SEL) Project details Contract comprises 3 construction lots with a total length of ~43 km Existing grid terranets BW SEL Pr
Slide 18: BalWin3/LanWin4 represent a milestone project in offshore grid connections
BalWin3/LanWin4 again represent a milestone project in the growing area of offshore grid connections New project acquisitions Current project update Offshore grid connection projects BalWin3 and LanWin4 Project details Offshore Connection line for two offshore wind windparks farms in the North Sea L
Slide 19: The A-Nord Project is already underway and is making steady progress
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 cable route suc
Slide 20: We continue to expect the largest revenue contributions in 2025 and 2026
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 >250 Malus Project Others margin >220 Minimum compensation Project-r
Slide 21: The expansion of our workforce has made strong progress since the beginning of this year
The expansion of our workforce has made strong progress since the beginning of this year Number of employees Key drivers Comprehensive roll-out of improved VORWERK employer brand +7% 1,816 1,695 Introduction of various employee benefits, incl. doubling of compensation for away- from-home work assign
Slide 22: Disclaimer
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Slide 23: Driving the Clean Energy Transition.
H Driving the Clean Energy Transition.
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