Deme Group Nv · EURONEXT:DEME
Deme Group Nv — IPO Roadshow (June 2022)
59 slides from Deme Group Nv's IPO roadshow presentation, June 2022
Slide 1: Setting Sail for an Independent Listing, June 2022
SETTING SAIL FOR AN INDEPENDENT LISTING JUNE 2022 Note: This presentation is a document relating to the listing of shares on Euronext Brussels and not a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017 (as amended). A prospectu
Slide 2: Today's Presenters
TODAY’S PRESENTERS Luc Vandenbulcke CEO 24 years of experience at DEME • CEO (2019-present) • Deputy COO (2011-2018) • Founder & CEO GeoSea1 (2005-2018) • Various engineering and managerial roles (1998-2005) Els Verbraecken CFO 20 years of experience at DEME • CFO (2013-present) • Deputy CFO (2012-2
Slide 3: DEME, a global marine solutions provider: agenda
DEME, A GLOBAL MARINE SOLUTIONS 01 PROVIDER 02 MISSION AND STRATEGY FOUR COMPLEMENTARY BUSINESS 03 SEGMENTS 04 ESG & SAFETY AT DEME’S CORE 05 A STRONG FINANCIAL PROFILE DEME 3
Slide 4: DEME
01 DEME 4
Slide 5: A long heritage of exploring new horizons by creating sustainable marine solutions
1 Intro 2 3 4 5 A LONG HERITAGE OF EXPLORING NEW HORIZONS BY CREATING SUSTAINABLE MARINE SOLUTIONS ✓ Unlock the full potential of DEME and allow for better sector specialization 1876 1991 ✓ Enhance governance and management focus Foundation of Founding of DEME by merging ✓ Better alignment of capita
Slide 6: DEME is a global leader in offshore energy, dredging, marine infrastructure and environmental solutions
1 Intro 2 3 4 5 DEME IS A GLOBAL LEADER IN OFFSHORE ENERGY, DREDGING, MARINE INFRASTRUCTURE AND ENVIRONMENTAL SOLUTIONS Turnover (€m) EBITDA (€m) Order book (€m) FTEs 2021 2,511 469 5,905 4,880 Offshore Energy Dredging & Infra Environmental Concessions Unrivalled track record in the More than 145 ye
Slide 7: DEME has built up a strong presence across all of the world's seas and continents
1 Intro 2 3 4 5 DEME HAS BUILT UP A STRONG PRESENCE ACROSS ALL OF THE WORLD’S SEAS AND CONTINENTS More than 1,000 projects realised over the past 15 years Diversified turnover split (2021) 1% Belgium 4% 2% 11% Europe (EU) 1 19% Europe (non-EU) Africa 39% Asia & Oceania 24% America Other 2 More than
Slide 8: Highly experienced executive committee, crew and staff
1 Intro 2 3 4 5 HIGHLY EXPERIENCED EXECUTIVE COMMITTEE, CREW AND STAFF Executive committee with a long tenure at the company Solid employee retention & diversity Luc Vandenbulcke 13% Chief Executive Officer >10 years 36% 4,880 6 - 10 years Els Verbraecken 31% FTEs 1 - 5 years Chief Financial Officer
Slide 9: Unique opportunity to invest in a global, sustainable marine solutions provider
1 Intro 2 3 4 5 UNIQUE OPPORTUNITY TO INVEST IN A GLOBAL, SUSTAINABLE MARINE SOLUTIONS PROVIDER Addresses global challenges with innovative solutions and a pioneering DNA Owns and operates one of the largest and most technologically advanced fleet in the world Growth trajectory supported by secular
Slide 10: Mission and Strategy
MISSION AND =- STRATEGY
Slide 11: DEME's mission is to work towards a sustainable future by offering solutions for global challenges
1 2 Mission and Strategy 3 4 5 DEME’S MISSION IS TO WORK TOWARDS A SUSTAINABLE FUTURE BY OFFERING SOLUTIONS FOR GLOBAL CHALLENGES Increasing Rising sea Polluted rivers maritime trade levels and soils activity Need for Growing Electrification reduction of population and leads to scarcity emissions ur
Slide 12: The innovative spirit of DEME is the backbone of its technological leadership
1 2 Mission and Strategy 3 4 5 THE INNOVATIVE SPIRIT OF DEME IS THE BACKBONE OF ITS TECHNOLOGICAL LEADERSHIP 1 By embracing innovation and investing in technologically 2 DEME has a strong track record of successfully pioneering advanced equipment and techniques, DEME is able to in novel industries,
Slide 13: DEME aims to grow its geographical footprint in all segments
1 2 Mission and Strategy 3 4 5 DEME AIMS TO GROW ITS GEOGRAPHICAL FOOTPRINT IN ALL SEGMENTS, WHILE KEEPING SUSTAINABILITY AND SAFETY AT THE ABSOLUTE CORE OF ITS OPERATIONS 3 4 DEME strives to fundamentally contribute to sustainable DEME is aiming for continuous growth and an increasingly solutions f
Slide 14: DEME
03 DEME 14
Slide 15: Offshore Energy
Offshore Energy — DEME — 15 IS
Slide 16: Offshore energy segment is supported by strong fundamental growth drivers
1 2 3 Offshore Energy 4 5 THE OFFSHORE ENERGY SEGMENT IS SUPPORTED BY STRONG FUNDAMENTAL GROWTH DRIVERS Macro trends that are driving the offshore energy market Offshore wind installations will continue to grow over the next decade Annual installed capacity, GW, T-1, excl. China The electricity gene
Slide 17: DEME Offshore Energy supports the energy transition
1 2 3 Offshore Energy 4 5 DEME OFFSHORE ENERGY SUPPORTS THE ENERGY TRANSITION 84% of turnover Renewables 16% of turnover Non-renewables & Nuclear 2000 Start offshore wind activities 13,268 MW Decommissioning Hydrocarbons & Capacity of installed Offshore wind farms & Salvaging Nuclear wind turbines ▪
Slide 18: Broad service offering for the most complex offshore wind projects
1 2 3 Offshore Energy 4 5 BROAD SERVICE OFFERING PROVIDING FLEXIBLE SOLUTIONS FOR THE MOST COMPLEX OFFSHORE WIND PROJECTS Foundations Turbines Cables Rock placement 3,300k tonnes of rock used for scour 1,985 foundations installed1 2,584 turbines installed1 1,900 km of cable installed2 protection 16%
Slide 19: One of the most technologically advanced fleets on the market
1 2 3 Offshore Energy 4 5 ONE OF THE MOST TECHNOLOGICALLY ADVANCED FLEET ON THE MARKET DRIVEN BY CONTINUOUS INVESTMENTS IN NEW VESSELS Growing fleet occupancy (weeks) Selected vessels from DEME's renowned fleet Orion Green Jade 2021 42.2 ▪ DP3 floating installation ▪ DP3 floating installation vessel
Slide 20: The growth-oriented strategy is realised through well-executed initiatives
1 2 3 Offshore Energy 4 5 THE GROWTH-ORIENTED STRATEGY IS REALISED THROUGH WELL-EXECUTED INITIATIVES Maintain the market Expand operations across leading position in offshore Europe, Asia and the renewables contracting United States services Evidenced by executing key strategic initiatives such as G
Slide 21: DEME has a proven track record of executing complex projects
1 2 3 Offshore Energy 4 5 DEME HAS A PROVEN TRACK-RECORD OF EXECUTING COMPLEX PROJECTS Hornsea Two Saint-Nazaire Moray East 165 89 1.4 GW 80 First 480 MW 198 km LNG 950 MW Turbines Scour protection Total capacity XL foundations Installation in Total capacity Of cables Powered cable Total capacity lo
Slide 22: Strong and geographically diversified order book to support future growth
1 2 3 Offshore Energy 4 5 STRONG AND GEOGRAPHICALLY DIVERSIFIED ORDER BOOK TO SUPPORT FUTURE GROWTH A Vineyard Wind 1 (800 MW) Arcadis Ost 1 (257 MW) D DEME will install and transport the DEME secured an EPCI contract for the 28 monopile foundations and the turbines. XXL monopile foundations, which
Slide 23: Dredging & Infra
Dredging & Infra — DEME — 23 IS
Slide 24: Leading player in a global market with high barriers to entry and secular growth drivers
1 2 3 Dredging & Infra 4 5 LEADING PLAYER IN A GLOBAL MARKET WITH HIGH BARRIERS TO ENTRY AND SECULAR GROWTH DRIVERS Leading player in a global market… … characterized by high barriers to entry… … and secular growth drivers Complex engineering Specialist +80% of international trade and design crew an
Slide 25: DEME is a global dredging powerhouse, complemented by infra activities
1 2 3 Dredging & Infra 4 5 DEME IS A GLOBAL DREDGING POWERHOUSE, COMPLEMENTED BY INFRA ACTIVITIES IN CORE MARKETS Dredging activities Infra activities €1,478m Inland Capital and Marine aggregates Turnover (2021) Port waterway maintenance dredging services construction infrastructure €306m EBITDA (20
Slide 26: Optimal use of one of the most competitive and versatile fleets
1 2 3 Dredging & Infra 4 5 MAKING OPTIMAL USE OF ONE OF THE MOST COMPETITIVE AND VERSATILE FLEET ON THE MARKET Growing fleet occupancy (weeks) Selected vessels from DEME's renowned fleet 25.3 Spartacus Bonny River 2021 41.4 ▪ World’s largest CSD ▪ Dredges hard soils and in ▪ Dual fuel deep waters (>
Slide 27: Leveraging deep know-how and extensive international track record
1 2 3 Dredging & Infra 4 5 LEVERAGING DEEP KNOW-HOW AND EXTENSIVE INTERNATIONAL TRACK RECORD A Fehmarnbelt fixed link River Elbe Deepening D Prestigious infrastructure project The river was deepened from Hamburg to connecting Denmark with Germany via the the mouth of the Elbe and widened in some lon
Slide 28: A well-filled Dredging & Infra order book of €2.8bn in 2021
1 2 3 Dredging & Infra 4 5 A WELL-FILLED DREDGING & INFRA ORDER BOOK OF €2.8BN IN 2021 Dredging & Infra order book in line with 3 years historical average1 Selected projects that each contribute more than €150m in revenue €3.2bn €2.8bn Fehmarnbelt Fixed Link project €2.2bn €2.0bn Blankenburg Connect
Slide 29: Environmental
Environmental — DEME — 29 IS
Slide 30: DEME Environmental is thriving on growing sustainability awareness and regulatory initiatives
1 2 3 Environmental 4 5 DEME ENVIRONMENTAL IS THRIVING ON GROWING SUSTAINABILITY AWARENESS AND REGULATORY INITIATIVES Fundamental long term market drivers European growth opportunities Local regulations to protect the environment a Regulations (e.g. traceability of soil, waste management, undergroun
Slide 31: A leading environmental specialist in the Benelux offering a wide range of services
1 2 3 Environmental 4 5 A LEADING ENVIRONMENTAL SPECIALIST IN THE BENELUX OFFERING A WIDE RANGE OF SERVICES Soil remediation & brownfield development ▪ Cleaning and recycling of polluted soils 1988 13 ▪ Broad network of fixed and mobile treatment centres Start of environmental Soil and sediment acti
Slide 32: DEME Environmental set to expand further in the Netherlands and France
1 2 3 Environmental 4 5 USING ITS POSITION AS A FRONTRUNNER IN BELGIUM, DEME ENVIRONMENTAL IS SET TO EXPAND FURTHER IN ATTRACTIVE MARKETS SUCH AS THE NETHERLANDS AND FRANCE Restoring nature by remediating brownfields and treating contaminated soils and sediments Key geographies Project-by-project ba
Slide 33: An expert in large and multi-year projects serving the circular economy
1 2 3 Environmental 4 5 AN EXPERT IN LARGE AND MULTI-YEAR PROJECTS WHERE DEME CAN APPLY ITS INNOVATIVE TREATMENT TECHNIQUES, SERVING THE CIRCULAR ECONOMY Soil remediation and brownfield development High water protection FORMER OIL TERMINAL GOWA Turning an oil-polluted former oil As a contribution to
Slide 34: Soaring demand has resulted in a very sound order book of €255m
1 2 3 Environmental 4 5 SOARING DEMAND HAS RESULTED IN A VERY SOUND ORDER BOOK OF €255M IN 2021 Order book in 2021 has increased by 35% vs. last year1 Selected projects in the current order book €255m Marken island Large flood protection contract to reinforce and build higher dikes €190m €169m Nyrst
Slide 35: Concessions
Concessions — DEME — 35 IS
Slide 36: DEME Concessions is the infrastructure developer, investor and manager within DEME
1 2 3 Concessions 4 5 DEME CONCESSIONS IS THE INFRASTRUCTURE DEVELOPER, INVESTOR AND MANAGER WITHIN DEME, LEVERAGING A UNIQUE COMBINATION OF TECHNICAL AND FINANCIAL CAPABILITIES DEME Concessions at a glance Active in 4 sectors ▪ Early involvement in the development process ▪ Strong additionality wit
Slide 37: DEME Concessions Wind co-invests through the additionality principle
1 2 3 Concessions 4 5 DEME CONCESSIONS WIND IS UNIQUELY POSITIONED TO CO-INVEST ON THE BACK OF ITS VAST SECTOR EXPERTISE THROUGH THE ADDITIONALITY PRINCIPLE A good portfolio of operational projects in Belgium1 And a growing pipeline of projects in development elsewhere1 1 C-Power 325 MW | 6.5% Opera
Slide 38: DEME Concessions Infra & Dredging leverages its deep industry network
1 2 3 Concessions 4 5 THE SAME APPLIES TO DEME CONCESSIONS INFRA & DREDGING THAT LEVERAGES ITS DEEP INDUSTRY NETWORK AND KNOW-HOW Involved in major marine infrastructure projects1 1 Blankenburg Infrastructure PPP | 15.0% Construction 2 Port-La-Nouvelle Port Development | 23.7% Construction 3 CAP Duq
Slide 39: DEME aims to be a frontrunner in green hydrogen
1 2 3 Concessions 4 5 DEME AIMS TO BE A FRONTRUNNER IN GREEN HYDROGEN BY DEVELOPING, BUILDING AND OPERATING INDUSTRIAL-SCALE PRODUCTION FACILITIES A promising market In which DEME is building a portfolio of green hydrogen investments HYPORT® Developing the first phase of a 1.5 GW (electrolyser capac
Slide 40: Collecting the metals to power our future in the most responsible way
1 2 3 Concessions 4 5 COLLECTING THE METALS TO POWER OUR FUTURE IN THE MOST RESPONSIBLE WAY Deep-sea harvesting avoids environmental & social terrestrial impacts GSR is taking concrete steps Global demand for metals is increasing Developing disruptive technologies to source nodules in Terrestrial mi
Slide 41: ESG & Safety
04 DEME 41
Slide 42: Sustainability is strongly embedded in DEME's corporate governance
1 2 3 4 ESG & Safety 5 SUSTAINABILITY IS STRONGLY EMBEDDED IN DEME’S CORPORATE GOVERNANCE Learning & feedback 1 EXCEL IN OUR Operational Implementation OPERATIONS Process objectives, of action SUSTAINABILITY GROWTH MODEL monitoring Reduce the carbon and targets and KPIs programmes environmental foot
Slide 43: Clear company values that contribute to global sustainability developments
1 2 3 4 ESG & Safety 5 CLEAR COMPANY VALUES THAT CONTRIBUTE TO GLOBAL SUSTAINABILITY DEVELOPMENTS Originating from We aim to EXCEL As we seek to EXPLORE In global areas Our company values Through inner shifts A structural impact Sustainable value UN SDGs Climate and Energy ▪ Offshore wind farms Natu
Slide 44: Determination to lead and create a more sustainable world expressed in KPIs and targets
1 2 3 4 ESG & Safety 5 DETERMINATION TO LEAD AND CREATE A MORE SUSTAINABLE WORLD EXPRESSED IN KPI’S AND TARGETS DEME’s alignment with EU Taxonomy Sustainability targets Diligent monitoring and reporting DEME’s activity in offshore wind has been assessed as being both ‘eligible’ and largely ‘aligned’
Slide 45: Safety is our priority in all circumstances
1 2 3 4 ESG & Safety 5 SAFETY IS OUR PRIORITY IN ALL CIRCUMSTANCES WITH NO ROOM FOR COMPROMISES Safety KPIs International standards & frameworks LTIF evolution ▪ ISO 50001 – Energy Management System 226 0.21 0.24 ▪ ISO 45001 – Occupational Health & Safety 0.19 0.19 Management System Safety success s
Slide 46: Financials
05 DEME 46
Slide 47: Robust financial performance despite the COVID-19 pandemic
1 2 3 4 5 Financials ROBUST FINANCIAL PERFORMANCE DESPITE THE COVID-19 PANDEMIC Robust turnover growth… …with consistently high EBITDA margins… …and recovering net result margins 19% 17% 17% 17% 19% 7% 6% 5% 2% 5% €2,646m €2,622m 10% 7% 5% 3% 6% €2,511m €2,356m €2,196m €456m €459m €469m €437m €369m
Slide 48: Complementary segments result in diversified sources of income
1 2 3 4 5 Financials COMPLEMENTARY SEGMENTS RESULT IN DIVERSIFIED SOURCES OF INCOME WHILE CONCESSIONS CREATE ADDITIONAL UPSIDE Offshore Energy Dredging & Infra Environmental Concessions In €m 2020 2021 2020 2021 2020 2021 In €m Since start Turnover 962 916 1,152 1,478 140 166 Value of projects at c.
Slide 49: Disciplined capital allocation resulting in a state-of-the-art asset base
1 2 3 4 5 Financials DISCIPLINED CAPITAL ALLOCATION RESULTING IN A STATE-OF-THE-ART ASSET BASE AND STRATEGIC CO-INVESTMENTS Investments based upon future demand and capacity in the market1 Vessel acquisition Net financial assets Leasing (IFRS 16) Spartacus, 20213 River Thames, 20203 Maintenance equi
Slide 50: Healthy leverage ratio combined with structural negative working capital
1 2 3 4 5 Financials HEALTHY LEVERAGE RATIO COMBINED WITH STRUCTURAL NEGATIVE WORKING CAPITAL REQUIREMENTS RESULTING IN STRONG FINANCIAL FIREPOWER Effective deleveraging resulting in a robust balance sheet Negative WC requirement due to upfront payments and negative % of completion 1.5x 1.3x 0.8x €7
Slide 51: Growing order book securing future revenue
1 2 3 4 5 Financials GROWING ORDER BOOK SECURING FUTURE REVENUE Growth of order book1 of signed projects increased by 31% Order book run off indicates a promising future €5,905m 255 €4,500m 23% 190 2022 2,817 34% 1,134 2023 2024 18% >2024 3,177 2,833 25% 2020 2021 Dredging & Infra Offshore Energy En
Slide 52: Thank you for your attention
THANK YOU FOR YOUR ATTENTION DEME 52
Slide 53: Appendix
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Slide 54: Consolidated statement of income
CONSOLIDATED STATEMENT OF INCOME Year ended December 31 (€th) 2021 2020 Revenues 2,580,773 2,335,944 Turnover 2,510,607 2,195,828 Other operating income 70,166 140,116 Operating expenses (2,437,492) (2,271,663) Raw materials, consumables, services and subcontracted work (1,575,624) (1,482,795) Perso
Slide 55: Consolidated statement of financial position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets - Year ended December 31 (€th) 2021 2020 Equity and liabilities- Year ended December 31 (€th) 2021 2020 Non-current assets 2,694,235 2,691,083 Shareholders’ equity 1,579,543 1,467,492 Issued capital 31,110 31,110 Intangible assets 25,513 24,935 Sha
Slide 56: Consolidated cash flow statement
CONSOLIDATED CASH FLOW STATEMENT Year ended December 31 (€th) 2021 2020 Year ended December 31 (€th) 2021 2020 Cash and cash equivalents, opening balance 621,937 475,135 Investments (298,660) (258,788) Operating result 143,281 64,281 Acquisition of intangible assets (1,908) (2,833) Dividends from pa
Slide 57: Targeting a dividend pay-out ratio of 33% going forward
TARGETING A DIVIDEND PAY-OUT RATIO OF 33% GOING FORWARD Dividend history (under CFE ownership) Target pay-out ratio post demerger 40% 0% 40% 36% €12 €9 €5 33% target pay-out ratio COVID-19 anticipation €0 2018 2019 2020 2021 1 Gross dividend per share Pay-out ratio Note: 1. An intermediary dividend,
Slide 58: Disclaimer (1/2)
DISCLAIMER (1/2) This document is an announcement and not a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017 (as amended the “Prospectus Regulation”). A prospectus is expected to be published by DEME Group NV (“DEME”) in connec
Slide 59: Disclaimer (2/2)
DISCLAIMER (2/2) 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