Slide 1: Pushing Boundaries - IR Deck 3Q24
PUSHING BOUNDARIES IR DECK 3Q24 September 2024 DEME
Slide 2: Agenda
AGENDA 00 Intro & Executive Summary 01 Group Financial Highlights 02 Segments Update 03 ESG & Safety 04 Appendix INVESTOR RELATIONS DEME 2
Slide 3: DEME, a global marine solution provider
DEME, A GLOBAL MARINE SOLUTION PROVIDER Market leading Growth One of the ESG and safety Attractive De-risked in healthy trajectory largest and most at the core of financial profile portfolio of segments with supported by technologically DEME’s activities supported by a activities through high barrie
Slide 4: A global leader in offshore energy, dredging, marine infrastructure and environmental solutions
A GLOBAL LEADER IN OFFSHORE ENERGY, DREDGING, MARINE INFRASTRUCTURE AND ENVIRONMENTAL SOLUTIONS OFFSHORE ENERGY DREDGING & INFRA ENVIRONMENTAL CONCESSIONS Unrivalled track record in construction Almost 150 years of knowhow and Innovative solutions for soil remediation, Developing, building and opera
Slide 5: Latest updates
LATEST UPDATES <Large contract> <Large contract> <Large contract> <Sizeable> INVESTOR RELATIONS DEME 5 Contract value categories for the DEME scope: Large (>300 million euro) ; Substantial (150 million - 300 million euro) ; Sizeable (50 million -150 million euro) ; A contract (<50 million euro)
Slide 6: Executive summary 1H24
EXECUTIVE SUMMARY 1H24 Strong performance in all segments underpins record year outlook Orderbook @ 7.6 billion euro; matching the Strong free cash flow @ 278 million euro vs -178 peak-levels of the last four quarters million euro a year ago & halving the net debt to 352 million euro from 715 millio
Slide 7: Group financial highlights
01 GROUP FINANCIAL HIGHLIGHTS INVESTOR RELATIONS DEME 7
Slide 8: 1H24 – Key financial highlights
1H24 – KEY FINANCIAL HIGHLIGHTS (in millions of euro) 1H24 1H23 FY23 Orderbook 7,622 7,654 7,582 y-o-y growth +0% +36% Orderbook remains at peak level Turnover 1,916 1,475 3,285 y-o-y growth +30% +14% Turnover +30% All segments contributing to growth EBITDA 345 222 596 margin 18.0% 15.0% 18.2% EBIT
Slide 9: 1H24 – Group orderbook
1H24 – GROUP ORDERBOOK Orderbook remains at a high level, even with strong conversions of orders Orderbook Geographic breakdown Orderbook run-off 6% 17% 7,654 7,622 16% 18% 5,620 3% 19% 11% 1H24 38% 9% 5% 62% 1H23 6% 63% Europe Africa Asia 27% America Middle East 1H22 1H23 1H24 Offshore Energy Dredg
Slide 10: 1H24 – Group turnover
1H24 – GROUP TURNOVER Group turnover grew 30% with solid growth in all contracting segments Turnover Segment breakdown Geographic breakdown 1,916 6% 1,916 11% 1,475 1,475 1,292 9% 1,292 1% 19% 8% 1H24 11% 66% 1H23 7% 62% Europe Africa Asia 1H22 1H23 1H24 1H22 1H23 1H24 America Middle East (in millio
Slide 11: 1H24 – Group profitability
1H24 – GROUP PROFITABILITY Surge in all profitability metrics EBITDA & EBITDA margin EBIT & EBIT margin Net profit & margin 400 50.0% 200 20.0% 150 141 20.0% 345 40.0% 150 300 150 15.0% 15.0% 100 222 30.0% 191 200 18.0% 100 7.8% 10.0% 7.4% 10.0% 14.8% 15.0% 20.0% 57 3.9% 50 39 100 50 40 3.1% 5.0% 3.
Slide 12: 1H24 – Group profitability
1H24 – GROUP PROFITABILITY Group EBITDA, EBIT and Net profit Key profit and loss items (in millions of euro) 1H24 1H23 1H22 Turnover 1,916 1,475 1,292 EBITDA 345 222 191 Depreciation & impairment -195 -165 -151 EBIT 150 57 40 Financial result 13 -13 4 Share of profit (loss) of joint ventures and 19
Slide 13: 1H24 – CapEx
1H24 – CAPEX Continued investments in strengthening the fleet albeit at lower intensity vs previous years Evolution of CapEx1 Net Result & Margin 484 441 435 399 282 202 167 2018 2019 2020 2021 2022 2023 1H24 (in millions of euro) CapEx Highlights 1H24 Major conversion investments for Increasing cap
Slide 14: 1H24 – Key balance sheet items
1H24 – KEY BALANCE SHEET ITEMS Net financial debt halved year-over-year Key balance sheet items (in millions of euro) 1H24 1H23 FY23 Operating working -575 -411 -471 capital1 Net financial -352 -715 -512 debt Free cash 278 -178 62 flow² Cash & cash 509 309 389 equivalents Positive free cash flow fue
Slide 15: 1H24 – Segments
1H24 – SEGMENTS Strong contribution of all segments OFFSHORE DREDGING & ENVIRONMENTAL CONCESSIONS ENERGY INFRA (in millions of euro) 1H24 1H23 1H24 1H23 1H24 1H23 (in millions of euro) SINCE START Turnover1 898 658 992 716 175 143 Value of projects at closing c. 7,200 y-o-y growth +37% +39% +22% (De
Slide 16: Outlook
OUTLOOK Based on the strong results in the first half, management now anticipates for the full year 2024: a TURNOVER growth of CAPEX for the year between around 20% 300 and 350 million euro an EBITDA MARGIN comparable to 2023 For the next few years, and taking into account current project schedules
Slide 17: Segments update
02 SEGMENTS UPDATE INVESTOR RELATIONS DEME 17
Slide 18: Luchtfoto Orion
Luchtfoto Orion INVESTOR RELATIONS DEME 18
Slide 19: DEME Offshore Energy supports the energy transition
DEME OFFSHORE ENERGY SUPPORTS THE ENERGY TRANSITION NON- ~87% of RENEWABLES ~13% of RENEWABLES Turnover² & NUCLEAR turnover 2000 Start offshore wind activities OFFSHORE WIND FARMS DECOMMISSIONING & HYDROCARBONS +14k MW • 350 successfully executed projects, incl 30 EPCI SALVAGING & NUCLEAR Capacity o
Slide 20: Market dynamics | Offshore wind
MARKET DYNAMICS | OFFSHORE WIND Supporting the energy transition Studies & reports signal significant market growth • From ~5GW installed pa in 2022 to ~25GW pa in 2030 • Total market by end 2030 271 GW* Europe US APC • by end 2030 (excl China): 212 GW or + ~180 GW • by end of 2035: 328 GW • CAGR ‘2
Slide 21: One of the most technologically advanced fleet
ONE OF THE MOST TECHNOLOGICALLY ADVANCED FLEET Driven by continuous investments YELLOWSTONE ORION GREEN JADE VIKING NEPTUN • Fallpipe vessel • DP3 floating installation vessel • DP3 floating installation vessel • DP3 cable laying vessel • Largest in sector with a payload of • 5,000-ton lifting capac
Slide 22: Broad service offering
BROAD SERVICE OFFERING Providing flexible solutions for the most demanding offshore wind projects ROCK FOUNDATIONS CABLES TURBINES PLACEMENT +2k foundations installed1 +2,000 km of cable installed2 +2.5k turbines installed1 +3,300k tonnes of rock used for scour protection 6% Market share 16% Market
Slide 23: Offshore Energy
Orderbook remains high, fuelled by new contract Strong EBITDA and EBITDA margin increase, wins with deployments over next years, including driven by continued high fleet utilisation important wins in the Netherlands, Belgium and across different projects ; EBITDA 1H23 OFFSHORE ENERGY Taiwan impacted
Slide 24: Offshore Energy – Key projects 1H24
OFFSHORE ENERGY Key Projects 1H24 INNOVATION A • DP2 jack-up vessel MORAY WEST (900 MW) • 1,500-ton lifting capacity 29 monopiles foundations A DOGGER BANK (3.6 GW) ORION Inter-array cables • DP3 floating installation A vessel A • 5,000-ton lifting B NEARTH NA GAOITHE capacity (450 MW) D Inter-array
Slide 25: Zoom in on Ile de Yeu et Noirmoutier
ZOOM IN ON ILE DE YEU ET NOIRMOUTIER Major French offshore project France, Loire Atlantique Project characteristics Follows the successful deployment with industry- Customer: EMYN (Ocean Winds, Sumitomo first technology at Saint-Nazaire ; will require corp and La Banque des Territoires and Vendée En
Slide 26: DEME
INVESTOR RELATIONS DEME 26
Slide 27: Global dredging powerhouse
GLOBAL DREDGING POWERHOUSE Complemented by Infra activities in core markets DREDGING INFRA 1.6bn euro ACTIVITIES: Turnover (2023) ACTIVITIES: Capital and Land reclamation 298m euro Inland waterway Port construction maintenance EBITDA (2023) infrastructure dredging Marine aggregates Coastal protectio
Slide 28: Addressable dredging market of 5-6bn euro
1 ADDRESSABLE DREDGING MARKET OF 5-6BN EURO 2 Addressable market Addressable market 7,000 6,095 Area Market Today (in million euro) 6,000 5,220 5,330 5,105 4,860 Europe ~1,500 5,000 In million euro 4,000 APAC ~2,000 3,000 Middle East ~1,000 2,000 Africa ~700 1,000 Americas ~600 0 Total 5-6 bn 2018 2
Slide 29: Market dynamics
MARKET DYNAMICS Secular market drivers Challenges High barriers to entry Trade activity Chinese competition +80% of international trade is carried by sea, requiring Complex engineering as part of their “Belt and road” initiative dredging & infra works to ensure ship access and suitable and design po
Slide 30: One of the most technologically advanced fleet
ONE OF THE MOST TECHNOLOGICALLY ADVANCED FLEET Driven by continuous investments SPARTACUS BONNY RIVER AMBIORIX SCHELDT RIVER 3 • World’s largest CSD1 • Dredges hard soils and in deep • Operates in heavy soil and rock • KNVTS Ship of the Year 2018 • Dual fuel waters (>100m) conditions award 2 • Size:
Slide 31: Dredging & Infra
Orderbook declined 4% y-o-y but remains EBITDA margin increased to 19% from 14% y-o-y DREDGING & INFRA robust with a healthy intake of diverse new mainly driven by strong project execution and projects higher activity levels Performance Dashboard 1H24 Turnover grew nearly 40% y-o-y, approaching one
Slide 32: Dredging & Infra – Key projects 1H24
DREDGING & INFRA Key Projects 1H24 A A OOSTERWEEL PRINCESS Completion of Antwerp ring ELISABETH ISLAND road, including construction of World’s first artificial energy C immersed tunnel in the Scheldt island river A B D B C F KIEL CANAL LONDON G Widening of the Kiel Canal GATEWAY PORT towards the Elb
Slide 33: Zoom in on Princess Elisabeth Island
ZOOM IN ON PRINCESS ELISABETH ISLAND Industry-first, artificial energy island to be deployed by end 2026 Project characteristics Customer: ELIA ; won by Customer expressed the ambition to have TM EDISON (JDN & DEME) all new offshore wind farms (3.5 GW) connected with the onshore grid by 2030 13% EPC
Slide 34: Investor Relations — DEME
INVESTOR RELATIONS — DEME — 34
Slide 35: Leading environmental specialist in Benelux
LEADING ENVIRONMENTAL SPECIALIST IN BENELUX Offering wide range of services SOIL REMEDIATION & ENVIRONMENTAL HIGH WATER BROWNFIELD DREDGING & SEDIMENT PROTECTION DEVELOPMENT TREATMENT • Offering tailored solutions for high water • Cleaning and recycling of polluted soils • Fluvial dredging with mini
Slide 36: DEME Environmental
DEME ENVIRONMENTAL Thriving on growing sustainability awareness and regulatory initiatives Fundamental long term market drivers European growth opportunities 680bn euro 50% by 2050 Regulations Local regulations to protect the environment (traceability EU Funding framework budget over European Action
Slide 37: Environmental
Orderbook remains stable ; exploring EBITDA solid but down y-o-y with 1H23 which opportunities in Belgium, the Netherlands, Italy was impacted by a favourable settlement on a ENVIRONMENTAL and the UK completed project Performance Dashboard 1H24 Turnover grew 22% to 175 million euro for the first hal
Slide 38: Environmental – Key projects 1H24
ENVIRONMENTAL Key Projects 1H24 Soil remediation and brownfield development A A OOSTERWEEL COKERIES DU B Treating PFAS polluted soils BRABANT Soil remediation project C A B A FORMER OIL FELUY TERMINAL Remediation of former industrial Turning former oil-polluted oil brownfield site terminal into resi
Slide 39: Investor Relations — DEME
INVESTOR RELATIONS — DEME — 39
Slide 40: Infrastructure developer, investor and manager
INFRASTRUCTURE DEVELOPER, INVESTOR AND MANAGER Leveraging unique combination of technical and financial capabilities At a glance Active in 4 sectors Early involvement in the development process Strong additionality with contracting side of DEME H2 OFFSHORE WIND INFRA & DREDGING GREEN HYDROGEN DEEP-S
Slide 41: Concessions
CONCESSIONS Net result Dredging & Infra Green Hydrogen Involved in marine infrastructure Advancing hydrogen development (in millions of euro) 1H24 1H23 1H22 projects (Blankenburg, Port-La Nouvelle, initiatives to be among the first in the Cap Duqm) world to produce green molecules from Net result re
Slide 42: Offshore concessions
OFFSHORE CONCESSIONS Uniquely positioned, co-investing on back of vast sector expertise & additionality principle Good portfolio of operational Leveraging “additionality” to de- projects in Belgium1 risk investment for all stakeholders A C-POWER 325 MW | 6% | Operational RENTEL Secure scarce Expert
Slide 43: Infra & dredging concessions
INFRA & DREDGING CONCESSIONS Leveraging deep industry network and know-how 1 Involved in major marine infrastructure projects A A BLANKENBURG Infrastructure PPP | 15% | Construction B B PORT-LA-NOUVELLE Port Development | 24% | Construction C CAP DUQM Port Management | 30% | Operational C Providing
Slide 44: Frontrunner in green hydrogen
FRONTRUNNER IN GREEN HYDROGEN Developing, building and operating industrial-scale production facilities In which DEME is building a portfolio of green hydrogen A promising market investments NET ZERO +300 MT +3,500 GW HYPORT® DUQM HYVE Green hydrogen is key Annual demand for Electrolyser capacity is
Slide 45: HYPORT Duqm
HYPORT ® DUQM Flagship project in Oman Size: 1.5GW electrolyzer >3GW renewable generation Cooperation Agreement Signed 2020 >1m mt/yr green ammonia >180k mt/yr green hydrogen Location: 150km2 in Duqm, Oman Joining forces in July 2024 Land Reservation Agreements Signed 2021 & 2022 Port of Duqm Phase
Slide 46: Collecting metals
COLLECTING METALS To power our future in most responsible way Deep-sea harvesting avoids environmental & social terrestrial impacts GSR is taking concrete steps Disruptive Precautionary Exclusive rights technologies to approach based on in (i) Clarion source nodules in environmental Clipperton Fract
Slide 47: ESG & Safety
03 ESG & SAFETY INVESTOR RELATIONS DEME 47
Slide 48: ESG 1H24
ESG 1H24 Update on progress Governance Environmental Continuing to drive the transition to clean energy: - More offshore wind farm project contributions in France, the UK, Taiwan and the US AGM approved the appointment of Ms. Gaëlle Hotellier and Ms. Marieke - Advancing the construction of the Fehma
Slide 49: Appendix
04 APPENDIX INVESTOR RELATIONS DEME 49
Slide 50: Who we are
WHO WE ARE DEME
Slide 51: Long heritage of exploring new horizons and creating sustainable marine solutions
LONG HERITAGE OF EXPLORING NEW HORIZONS AND CREATING SUSTAINABLE MARINE SOLUTIONS Ackermans & van Haaren Founding DEME, merging and CFE’s Société Générale Dredging International and de Dragage merge into Baggerwerken Decloedt & Dredging International Zoon 1876 1974 1988 1991 2000 Foundation Ackerman
Slide 52: • Unlock full potential of • Enhance governance and • Better alignment of capital
Start deep-sea Expansion infra DEME exploration activities independently activities listed • Unlock full potential of DEME and allow for better sector specialization • Enhance governance and management focus 2010 2013 2015 2018 2022 • Better alignment of capital allocation decisions • Attract most a
Slide 53: Project characteristics
PROJECT CHARACTERISTICS A cautious approach Preparation Remeasurable contract Project profit recognition Project budget based on Trying to avoid fixed price Profit recognition only after 10% of “Costs DOP + risk + margin” contracts project costs made Project execution Price revision mechanisms to tr
Slide 54: DEME Campus in the making
DEME CAMPUS “IN THE MAKING” DEME LABS finished June 2023 PAVILION finished Autumn 2024 DEME HQ start Autumn 2024 INVESTOR RELATIONS DEME 54
Slide 55: FY23 – Key financial highlights
FY23 – KEY FINANCIAL HIGHLIGHTS (in million EUR) 2023 2022 2021 Orderbook @ 7.6 billion euro, +22% vs 2022 Orderbook 7,582 6,190 5,905 y-o-y growth +22% +5% Turnover +24%, surpassing the 3 billion euro All segments contributing to the growth Turnover 3,285 2,655 2,511 y-o-y growth +24% +6% EBITDA 59
Slide 56: FY23 – Segments
FY23 – SEGMENTS Complementary segments result in diversified sources of income OFFSHORE DREDGING & ENVIRONMENTAL CONCESSIONS ENERGY INFRA (in million EUR) 2023 2022 2023 2022 2023 2022 (in million EUR) SINCE START Turnover1 1,502 958 1,605 1,524 304 206 Value of projects at closing c. 6,000 y-o-y gr
Slide 57: ESG 2023
ESG 2023 Update on progress Environmental 2023 2022 2021 42% of DEME’s turnover is EU taxonomy eligible and 33% aligned, up EU Taxonomy - Turnover from 29% and 26% respectively, driven by the inclusion of DEME’s environmental activities, such as remediation of contaminated sites Eligible activities
Slide 58: ESG 2023
ESG 2023 Update on progress Social & Governance 2023 2022 2021 The Group’s employee force expanded to 5,334, marking a 4% increase from 2022 ; Significant investments and focus on retaining and attracting talent to support Average # personnel (in FTE) 5,334 5,153 4,880 DEME’s mid and long term growt
Slide 59: Agenda financial calendar
AGENDA FINANCIAL CALENDAR Trading update 14/11/2024 Q3 2024 26/02/2025 Full year 2024 Results Trading update 14/05/2025 Q1 2025 21/05/2025 General assembly 26/08/2025 Half year 2025 Results Trading update 13/11/2025 Q3 2025 INVESTOR RELATIONS DEME 59
Slide 60: Thank you
THANK YOU For more information vanden.bussche.carl@deme-group.com INVESTOR RELATIONS DEME 60
Slide 61: Disclaimer
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, DEME does not undertake any obligation to provide the recipient with access to any additional information or