Friedrich Vorwerk Group Se · XETR:VH2

Friedrich Vorwerk — Deutsches Eigenkapitalforum 2021

25 slides from Friedrich Vorwerk's conference presentation, Nov 23, 2021

  1. Slide 1: Driving the clean energy transition

    Driving the clean energy transition. Deutsches Eigenkapitalforum 21-23 November 2021 Strictly private and confidential

  2. Slide 2: Today's presenting team

    Today‘s presenting team Torben Kleinfeldt Tim Hameister CEO CFO Group Strategy & Development Finance & Controlling VORWERKer since 2001 VORWERKer since 2019 20+ years industry experience 6+ years industry experience at Encavis Diplomas in Engineering and Business M.Sc. Financial Management & Account

  3. Slide 3: VORWERK is driving the clean energy transition

    VORWERK is driving the clean energy transition 2

  4. 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 €291m >1,400 H2 revenue employees Electricity Gas 16% >15% since 1962 EBIT margin organic CAGR1 3 1) CAGR based on 2014-2020

  5. 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

  6. 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 Gas pressure control & measuring plants Public and private permitting Process & detail engineering No-dig procedures (HDD) Compressor & pump stations Cable pull Electrolyser technologies In

  7. Slide 7: Market update

    Market update 6

  8. Slide 8: Recent changes to the German Climate Change Act increase pressure

    Recent changes to the German Climate Change Act increase pressure Climate commitments Increasingly ambitious climate goals Goal of cutting total carbon emission by 65% by 2030 (vs. previous target of 55%) and by 88% by 2040 Carbon neutrality by 2045 Goal of reaching full carbon neutrality by 2045 (v

  9. Slide 9: Since the IPO planned TSO investments in gas grid have further increased

    Since the IPO planned TSO investments in gas grid have further increased Planned investments in German natural gas infrastructure Key drivers in €bn by 2030; according to the confirmed NDP 2030 (2020) Coal (and nuclear) phase out 0.5 8.9 Switch from coal- to gas-fired power 8.5 plants due to coal/nu

  10. Slide 10: New electricity NDP draft 2035 (2021) leads to substantially higher investment volumes

    New electricity NDP draft 2035 (2021) leads to substantially higher investment volumes Planned investments in German electricity infrastructure Key drivers in €bn by 2035; according to the 2nd draft NDP 2035 (2021) Renewable power generation 16.5 79.0 requires long-distance cable lines (“Stromautoba

  11. Slide 11: Cost estimates of envisioned hydrogen backbone have increased significantly since IPO

    Cost estimates of envisioned hydrogen backbone have increased significantly since IPO Estimated cost of hydrogen backbone Key drivers in bn € by 20401) +27% 81 39,600 km pipeline network to be created by 2040 to integrate major hydrogen supply and industrial 64 demand clusters 81.0 30+% of new-build

  12. Slide 12: District heat remains a key pathway to decarbonizing building and communal heat

    District heat remains a key pathway to decarbonizing building and communal heat Planned inv. in district heat Planned market share district heat Key drivers in bn € by 20301) in % by 20302) 30 % 40 % reduction of CO2 emissions related to building sector to be achieved by 2030 compared to 2018 33 14

  13. Slide 13: Financial performance

    Financial performance o © @

  14. Slide 14: Q3 2021 saw slight revenue decrease vs. particularly strong Q3 in the previous year

    Q3 2021 saw slight revenue decrease vs. particularly strong Q3 in the previous year Revenue in €m1 -9% 83.9 80.1 75.3 76.3 69.9 62.2 Typical seasonal 52.5 revenue development Q1/20 Q1/21 Q2/20 Q2/21 Q3/20 Q3/21 Q4/20 +100% days of frost Q1 21 vs Q1 20 1) Revenues represent revenues as reported adjus

  15. Slide 15: The share of the growth segments Electricity and Clean Hydrogen continues to increase

    The share of the growth segments Electricity and Clean Hydrogen continues to increase Revenues by segment in % 13 % 14 % Adjacent Opportunities 12 % 4% Clean Hydrogen 17 % Electricity 75 % 65 % Natural Gas Q3 2020 YTD Q3 2021 YTD

  16. Slide 16: VORWERK maintains its superior profitability based on unique market positioning

    VORWERK maintains its superior profitability based on unique market positioning EBITDA (adj.1) EBIT (adj.1) in €m, bubbles show EBITDA margin in €m, bubbles show EBIT margin 17.8% 20.7% 14.1% 16.1% +9% 43.1 39.4 +8 % 33.7 31.2 Q3 2020 YTD Q3 2021 YTD Q3 2020 YTD Q3 2021 YTD 15 1) Adjustments primari

  17. Slide 17: Substantial margin uplifts could be realized across all segments

    Substantial margin uplifts could be realized across all segments EBIT margin per segment in % +30.0 PP +0.4 PP +4.4PP +6.7 PP 20.3 15.5 15.9 14.8 17.6 10.4 10.9 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 YTD YTD YTD YTD YTD YTD -10.3 Q3 2020 Q3 2021 YTD YTD Natural Gas Electricity Clean Hydroge

  18. Slide 18: Positive outlook based on strong order backlog

    Positive outlook based on strong order backlog Order intake Order backlog in €m in €m +5 % 282 268 7% Adjacent Opportunities 6% -10 % 6% Clean Hydrogen 6% 204 8% Electricity 10 % 14 % 184 6% 14 % 9% 2% 12 % 79 % Natural Gas 77 % 71 % 72 % Q3 20 Q3 21 Q3 20 Q3 21 YTD YTD 17

  19. Slide 19: Business update

    Business update 18

  20. Slide 20: Newly acquired 50+ €m energy transformation project and a promising project pipeline

    Newly acquired 50+ €m energy transformation project and a promising project pipeline New project in Q3: Legden gas compressor station Project pipeline in 2021 awarded in September 2021, included in order backlog project and total estimated total project volume1 Project start Project volume Long dist

  21. Slide 21: VORWERK continues M&A success with the acquisition of Gottfried Puhlmann

    VORWERK continues M&A success with the acquisition of Gottfried Puhlmann IPO 03/2021 Development of new region Locations Services Berlin and strengthening of market position in HH / S-H District heat Realization of growth potential Cable pull in the areas district heating and underground cabling Pip

  22. Slide 22: VORWERK's acquisition of Puhlmann offers many strategic advantages

    VORWERK’s acquisition of Puhlmann offers many strategic advantages Market positioning Employee capacity Further strengthening of VORWERK positioning Capacity increasingly critical to meet rapidly in growth markets electricity and district heat growing demand for larger-scale projects Strengthening o

  23. Slide 23: 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

  24. Slide 24: Disclaimer

    Disclaimer By accessing this document you agree to abide by the limitations set out hereafter. The information contained in this document relating to Friedrich Vorwerk Group SE (“Friedrich Vorwerk" or the "Company") may not be redistributed, reproduced, published, or passed on to any other person an

  25. Slide 25: Driving the clean energy transition

    H2 Driving the clean energy transition

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