Friedrich Vorwerk Group Se · XETR:VH2

Friedrich Vorwerk — Q4 2022 Earnings Presentation

16 slides from Friedrich Vorwerk's earnings presentation, Jan 31, 2023

  1. Slide 1: Q4 Update - Preliminary Figures

    Q4 Update - PRELIMINARY FIGURES - January 31, 2023

  2. Slide 2: Agenda

    Agenda Financials Q4 2022 Outlook 2023

  3. Slide 3: Q4 Revenues increased by 56% y-o-y, significantly above expectations

    Q4 Revenues increased by 56% y-o-y, which is significantly above expectations Revenues in €m +56% 115.9 109.4 84.4 80.1 76.3 70.2 58.4 52.5 Typical seasonal Revenues development Q1 21 Q1 22 Q2 21 Q2 22 Q3 21 Q3 22 Q4 21 Q4 22 2

  4. Slide 4: Full year revenues of €368 million, an increase of 32% y-o-y

    This leads to full year revenues of € 368 million – an increase of 32% y-o-y Revenues in €m +32 % 368.2 Guidance 2022: > 320 €m 279.1 FY 2021 FY 2022 3

  5. Slide 5: Profitability in Q4 significantly lower than expected

    However, profitability in Q4 was significantly lower than expected EBITDA EBIT in €m in €m 20.6 % 6.5 % 15.7 % 2.6 % -51% 14.3 -74 % 10.9 7.1 2.8 Q4 21 Q4 22 Q4 21 Q4 22 4

  6. Slide 6: Significant shortfall of EBITDA and EBIT in the full year

    Leading to a significant shortfall of EBITDA and EBIT in the full year EBITDA (adj.1) EBIT (adj.1) in €m in €m 20.6 % 13.6 % 16.0 % 9.2 % -13% 57.5 50.1 -24 % 44.5 33.8 FY 2021 FY 2022 FY 2021 FY 2022 5 1) Adjustments primarily refer to IPO-related costs

  7. Slide 7: Low profitability rooted in overstretched capacity and one-off effects

    The low profitability is rooted in the overstretched capacity and one-off effects Short-notice order extensions and time pressure in critical gas projects Several large projects, including the LNG connections, were extended in scope and were under immense time pressure at the end of 2022, while inte

  8. Slide 8: Share of third-party services rose to unsustainable levels

    The share of third-party services rose to unsustainable levels at the end of 2022 Revenues and third-party services in €m; line graph shows share of third-party services 37 % Short-notice extensions of project scope and tight timelines 21 % led to high reliance on third-party service providers to co

  9. Slide 9: VORWERK was able to avert a targeted cyber attack in November

    VORWERK was able to avert a targeted cyber attack in November Background Direct costs Continuation of business operations Targeted cyber attack in mid-November despite some limitations due to limited data and tool access employing ransomware to encrypt VORWERK databases and files No indication of da

  10. Slide 10: Agenda

    Agenda Financials Q4 2022 Outlook 2023

  11. Slide 11: After substantial growth, we expect a transitional year 2023

    After substantial growth in the past years, we expect a transitional year 2023 Revenues in €m -19 % 368 >300 279 FY 2021 FY 2022 FY 2023 10

  12. Slide 12: Large electricity HVDC projects to contribute substantially from 2024

    The large electricity HVDC projects are expected to start making substantial revenue contributions from 2024 onwards LNG projects (WAL, Brunsbüttel) Large natural gas projects Natural Gas (e.g. EUGAL, large compressor stations, L- to H-gas conversion etc.) Large electricity HVDC projects (A-Nord, Su

  13. Slide 13: EBITDA margin expected to remain on 2022 level in 2023

    For the transitional year 2023, we expect the EBITDA margin to remain on 2022 level EBITDA margin (adj.) EBIT margin (adj.) in % in % EBITDA margin on 2022 level EBIT margin below 13.6 9.2 2022 level FY 2022 FY 2023 FY 2022 FY 2023 12

  14. Slide 14: Several reasons to expect lower profitability in 2023

    There are several reasons to expect a lower profitability level in 2023 Lower margin follow-up work from large projects After strong Revenues growth at the end of 2022, some projects (e.g. WAL) will require some capacity for follow-up works which are typically lower margin Preparation of organisatio

  15. Slide 15: 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

  16. Slide 16: Driving the clean energy transition

    Driving the clean energy transition

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