Friedrich Vorwerk Group SE · XETR:VH2
Friedrich Vorwerk — Investor Presentation (December 2020)
22 slides from Friedrich Vorwerk's investor presentation, December 2020
Slide 1: Driving the clean energy transition
Driving the clean energy transition H2 December 2020
Slide 2: Escalating climate change forces governments to take drastic action
Escalating climate change forces governments to take drastic action Average temperature anomaly Global government action in Northern Hemisphere relative to 1961-1990 average +1.0 °C Paris agreements Limit global warming to a maximum of 1.5°C by 2050 -0.3 °C EU Green Deal Achieve net carbon-neutralit
Slide 3: Clean energy transition requires unprecedented energy infrastructure investments
Clean energy transition requires unprecedented 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 hi
Slide 4: 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 >€ 280 m >1,250 H2 revenues employees Electricity Gas >14% >14% since 1962 EBIT margin organic CAGR 3 Notes: Management estimates for 2020; CAGR based on 2014-2019
Slide 5: 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 6: 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 7: 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 8: Clean energy transition commands unprecedented investments in energy infrastructure
Clean energy transition commands unprecedented investments in energy infrastructure Natural gas Electricity Hydrogen >5 bn € ~40 bn € 470 bn € Planned investment Planned investment Planned investment until 20261 until 20262 until 20503 1) NEP investment volume 2020-2026; volume attributed to year of
Slide 9: 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% Grid upgrades Service & maintenance bn € share of NEP projects International projects (e.g. Baltic pipe) 2012-2018 with Industrial projects (e.g. Siemens) VORWERK
Slide 10: 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 ~40 ~15% Grid upgrades Service & maintenance bn €1 share of relevant NEP International projects projects 2015-2020 based on total route length2 Top VORWERK Customers ~
Slide 11: 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 12: 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 Lingen, BP 2030 2050 Power plant Lingen, RWE Electrolyser Chemical park Marl, Evonik Additional 470 order volume upgrade ~€ 18 m bn €1 Order volume new construction Ruhr Oel refinery Plan developed by ~€ 9
Slide 13: VORWERK participated in 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 14: Key customers are already planning for 500 MW of new electrolysis capacity
VORWERK key customers are already planning for 500 MW of new electrolysis capacity Select planned electrolyser projects Location Plant size Planned by 1 Lingen 100 MW 30 6 MW 2 Diele 100 MW 100 MW 3 Wesseling 100 MW ITM Power 2 4 Leuna 100 MW 100 MW 10 1 35 9 MW 5 Bad Lauchstädt 35 MW 10 5 MW 8 MW 6
Slide 15: VORWERK in the midst of the universe of innovative energy players
VORWERK in the midst of the universe of innovative energy players EBIT margin comparison 1 Energy ~14% >14% transformation Infrastructure & ~5% 1 Energy Services ~4% 2 Energy grids ~ -13% Hydrogen 1 1) Based on Bloomberg 2021 consensus forecast figures 2) Based on 2018A figures 14 Source: Company da
Slide 16: 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 17: Dynamic growth track-record at 14% EBIT margin
Dynamic growth track-record at 14 % EBIT margin Adj. EBIT >14% >14% margin, in % >280 Acquisition of 269 CAGR 2014-20191 +15% p.a. 173 87 Revenues in m € 2014 2019 2019 2020 as-if as-if FC excl. BoDo1 incl. BoDo2 1) Presentation as if Bohlen & Doyen had not been acquired by VORWERK in 2019 2) Presen
Slide 18: Strong contracted orderbook further fuelled by additional project pipeline
Strong contracted orderbook further fuelled by additional project pipeline Order backlog Project pipeline in € m; forecast 31 December 2020 not yet included in order backlog1 OGE new compressor station Legden 32 m € CENAM Closed Loop high-pressure 30 m € test rig Mexico TenneT requests from framewor
Slide 19: Capital-light business model with attractive business opportunities
Capital-light business model with attractive business opportunities Capital expenditure 2018-2019 Investments in € m Technology & R&D H2 H2 plant construction Wiesmoor R&D CO2 reduction in pipeline construction (cooperation Fraunhofer Institute) European expansion Hub Benelux Hub Spain Digitalisatio
Slide 20: Proven M&A strategy as a key catalyst to further accelerate profitable growth
Proven M&A strategy as a key catalyst to further accelerate profitable growth Specialized technologies Hydrogen Biogenic gases Horizontal direct drilling (HDD) Electricity grids 2020 Employees & competencies HDD drilling Smaller regional players with Active certified employees and/ or complimentary
Slide 21: European leader for turnkey energy solutions driving the clean energy transition
H2 European leader for turnkey energy solutions driving the clean energy transition 20
Slide 22: 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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