Friedrich Vorwerk Group Se · XETR:VH2
Friedrich Vorwerk — Q3 2023 Earnings Presentation
25 slides from Friedrich Vorwerk's earnings presentation, Nov 14, 2023
Slide 1: Q3 Earnings Call
Q3 Earnings Call H 14 November 2023 Driving the clean energy transition.
Slide 2: Key messages & figures
Key messages & figures Key messages Key figures Especially project A-Nord with order volume of €600 million leads to exponential development of order intake + 217 % Order intake 9M 23 vs. 9M 22 > € 1bn Very high demand continues to fuel strong order intake development and leads to record-level backl
Slide 3: Introduction
H Introduction 3
Slide 4: 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 Terminals Storage & Compressor Gas pressure Pipelines measurement stations regulating & International metering stations pipelines Landfall Power-to-Hea
Slide 5: VORWERK's fully integrated service offering enables critical energy infrastructure
VORWERK’s fully integrated service offering enables critical energy infrastructure Underground pipeline construction, incl. Gas pressure control & measuring plants automated welding processes Biogas processing and feed-in plants Cable construction up to ultra-high voltage levels (up to 525 kV) Compr
Slide 6: The draft grid development plan electricity foresees additional investments of 240 bn € by 2045
The draft grid development plan electricity foresees additional investments of 240 bn € by 2045 Gross electricity consumption in TWh +169 % 25,740 km 1,303 1,079-1,303 of additional electricity lines (on- and 899-1,053 offshore) in Germany by 2045 650-700 484 Today (2022) 2035 2037 2045 (NEP 2021) (
Slide 7: Financial performance
H Financial performance 8
Slide 8: Driven by A-Nord, order intake in the first months more than tripled compared to last year
Driven by A-Nord, order intake in the first 9 months more than tripled compared to last year Order intake Order backlog in €m in €m +182 % +217% 1,049 217 1,009 A-Nord A-Nord ~600 + % ~600 ~600 Order intake y-o-y in first 9M 2023 ~600 372 318 9M 2022 9M 2023 9M 2022 9M 2023 > 1 €bn Order backlog as
Slide 9: As expected, Q3 revenues came out slightly below the very strong previous year's level
As expected, Q3 revenues came out slightly below the very strong previous year’s level Revenue in €m -6% 115,9 109,5 109,4 92,6 84,4 73,1 -5.5 58,4 Typical seasonal revenue development % Revenue development y-o-y in Q3 2023 Q1 22 Q1 23 Q2 22 Q2 23 Q3 22 Q3 23 Q4 22 Q4 23 10
Slide 10: In total, revenues in the first 9 months increased by 6% compared to the previous year
In total, revenues in the first 9 months increased by 6 % compared to the previous year Revenue Revenue by segment in €m in % +6% 275,1 258,7 275,1 +6.3 258,7 25 % Adj. Opportunities 33 % % 6% 6% Clean Hydrogen Revenue growth 17 % 15 % Electricity y-o-y in first 9M 2023 53 % ~3.7 46 % Natural Gas 9M
Slide 11: However, Q3 profitability lies significantly below the strong previous year's levels
However, Q3 profitability lies significantly below the strong previous year‘s levels EBITDA EBIT (adj.) in €m, blue bubbles show EBITDA margin in €m, blue bubbles show EBIT margin 17.9% 6.2% 13.0% 14.3% 2.1% 8.8% 20.7 6.2 % EBITDA margin 16.6 in Q3 2023 One-off project- 7.4 related provision 6.8 2.1
Slide 12: Profitability in Q3 was impacted heavily by an extraordinary project-related one-off effect
Profitability in Q3 was impacted heavily by an extraordinary project-related one-off effect Sustained material and personnel price increases Recently acquired Puhlmann Group makes clearly positive weighing down on longer-running projects and EBITDA contribution as restructuring process takes effect
Slide 13: Due to these effects, year-to-date profitability remains below the previous year's level
Due to these effects, year-to-date profitability remains below the previous year’s level EBITDA EBIT (adj.) in €m, blue bubbles show EBITDA margin in €m, blue bubbles show EBIT margin 16.6% 7.4% 10.1% 12.0% 2.6% 5.3% 43.0 7.4 % EBITDA margin 31.1 in first 9M 2023 One-off project- 20.4 7.4 related pr
Slide 14: Based on a positive outlook for Q4, we confirm our revised guidance for 2023
Based on a positive outlook for Q4, we confirm our revised guidance for 2023 Revenue guidance Profitability guidance -10 % 368 >330 279 EBITDA margin: 8-11 % EBIT margin below 2022 level FY 2021 FY 2022 FY 2023 15
Slide 15: Business update
H Business update 17
Slide 16: VORWERK again secured major project orders across all segments
VORWERK again secured major project orders across all segments DN600 FSRU connection pipeline Stade Phase 3 for A Nord HVDC project DN400 pipeline Dradenau Transformer station Liedingen Rehabilitation of various pipelines (e.g. FGL065, FGL209 and FGL211) 380kV cable line Stade-Landesbergen NATURAL G
Slide 17: To ensure timely completion of the project, the first preparatory works have already been started
To ensure timely completion of the project, the first preparatory works have already been started Project details Cable route 300 km HVDC cable line for the transport of wind power from Lower Saxony to Northrhine-Westfalia >1.5 bn € ~40% Total planned project volume for civil engineering works along
Slide 18: We expect the largest revenue contributions in the financial years 2025 and 2026
We expect the largest revenue contributions in the financial years 2025 and 2026 Estimated revenue distribution A-Nord compensation scheme in €m, estimation Schematic representation Maximum compensation Time Bonus Costs >230 Malus Project Others margin >200 Project-rel. overheads >150 Minimum compen
Slide 19: Besides A-Nord, there are numerous even larger electricity projects coming up
Besides A-Nord, there are numerous even larger electricity projects coming up 2023 2024 2025 2026 2027 2028 2029 2030 2031 A310 ~1.5 bn € A-Nord* OstWind6 SuedLink civil engineering Hansa Powerbridge BorWin6 Amprion Korridor B DC34 LanWin3+6 TenneT Portfolio 3+4 Project order TenneT Portfolio 5 Pros
Slide 20: Considerable progress in negotiations on contract claims in the LNG pipeline project in Brunsbüttel
Despite considerable progress in the negotiations on contract claims in the LNG pipeline project in Brunsbüttel, numerous positions remain the subject of contract negotiations Brunsbüttel LNG connecting pipeline Project update Shortly after project start, several unforeseen changes hindered project
Slide 21: In Lingen, VORWERK again participates in one of the most ambitious hydrogen projects in Germany
In Lingen, VORWERK again participates in one of the most ambitious hydrogen projects in Germany Project Get H2 Nukleus Project description RWE recently ordered two 100 MW PEM electrolysers from Linde – they are part of RWE’s plan to build a total of 300 MW of Customer: electrolyser capacity in Linge
Slide 22: Questions & Answers
Questions & Answers Torben Kleinfeldt CEO Tim Hameister CFO 24
Slide 23: Financial Calendar 2023
Financial Calendar 2023 30 January Preliminary Figures 2022│ Earnings Call 09 February Hamburger Investorentage (HIT) 13 February Alster Roundtable 15-16 March Berenberg EU Opportunities Conference 28 March Jefferies Pan-European Conference 30 March Publication of Annual Report 2022 15 May Publicati
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 a
Slide 25: Driving the Clean Energy Transition.
H Driving the Clean Energy Transition.
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