Friedrich Vorwerk Group Se · XETR:VH2
Friedrich Vorwerk — Q1 2023 Earnings Presentation
24 slides from Friedrich Vorwerk's earnings presentation, May 15, 2023
Slide 1: Driving the clean energy transition. Q1 Earnings Call
Driving the clean energy transition. H Q1 Earnings Call May 15, 2023
Slide 2: Market update
Market update 1
Slide 3: Germany is under pressure to accelerate energy transition due to Ukraine war
Germany is under pressure to accelerate energy transition due to Ukraine war Climate Change Act 2021 Compulsory carbon reduction goals by sector Reductions of carbon emission by 65% by 2030 Carbon neutrality by 2045 2
Slide 4: The Russia-Ukraine war acts as strong catalyst across VORWERK's key markets
The Russia-Ukraine war acts as strong catalyst across VORWERKs key markets “ opportunity “ 3
Slide 5: The new grid development plan foresees additional investments of 240 bn € by 2045
The new grid development plan electricity foresees additional investments of 240 bn € by 2045 25,740 km Gross electricity consumption in TWh +169 % 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) (NE
Slide 6: Delegated acts for RED II provide a clear framework for hydrogen infrastructure investments
The recently published delegated acts for RED II provide a clear and certain framework for accelerated investments in new hydrogen infrastructure European European Important Fit for 55 Delegated Acts for RED II Green Hydrogen Projects of Package Deal Strategy Common Interest (IPCEI) translating the
Slide 7: Financial performance
Financial performance 6
Slide 8: Record-level order backlog provides strength and resilience
Record-level order backlog provides strength and resilience Order intake Order backlog in €m in €m +19 % 449 378 28 % +67 % Adjacent Opportunities 207 6% Adjacent Opportunities 4% Clean Hydrogen 41 % 124 3% 42 % 10 % Electricity 72 % Electricity 73 % 46 % 3% 26 % Natural Gas 23 % 22 % Natural Gas Q1
Slide 9: Backed by strong market demand, revenue increased by 25% year-on-year
Backed by strong market demand, revenue increased by 25 % year-on-year Revenue in €m 115.9 109.4 +25% 84.4 Typical seasonal 73.1 revenue development 58.4 Q1 22 Q1 23 Q2 22 Q3 22 Q4 22 Book-to-Bill >2.8 8
Slide 10: Revenue growth was driven strongly by our Adjacent Opportunities segment
Revenue growth was driven strongly by our Adjacent Opportunities segment Revenues by segment in % 73.1 58.4 32 % Adjacent Opportunities 24 % 4% Clean Hydrogen 2% 15 % Electricity 18 % 56 % 49 % Natural gas Q1 22 Q1 23 9
Slide 11: Profitability lies significantly below previous year's level
Profitability lies significantly below previous year’s level EBITDA EBIT (adj.) in €m in €m 15.5 % 7.6 % 9.2 % 1.7 % -39 % 9.1 -77 % 5.6 5.4 1.2 Q1 22 Q1 23 Q1 22 Q1 23 10
Slide 12: There are several reasons to expect a lower profitability level 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 Planning and Engineering f
Slide 13: Despite lower profitability in Q1 we confirm our guidance for 2023
Despite lower profitability in Q1 we confirm our guidance for 2023 Revenue guidance Profitability guidance -19 % 368 >300 EBITDA margin 279 on 2022 level EBIT margin below 2022 level FY 2021 FY 2022 FY 2023 Large majority of FY23 revenue already Strong profitability rebound expected secured in the o
Slide 14: VORWERK balance sheet remains strong with an equity ratio of 55%
VORWERK balance sheet remains strong with an equity ratio of 55% Balance sheet in €m, as at 31.03.2023 297 297 Fixed assets** 135 164 Equity 10 Mezzanine financing 20 Financial liabilities Working 144 30 capital Operating liabilities (LT) 73 Operating liabilities (ST) Cash* 17 Assets Liabilities & E
Slide 15: Business update
Business update 14
Slide 16: VORWERK again secured major project orders across all segments
VORWERK again secured major project orders across all segments 2 km connection pipeline for new FSRU/LNG terminal in Stade 42 km underground cable system for BorWin6 offshore project 1 2x Gas pressure regulating stations Framework agreement for HD drilling for multiple offshore landfall projects 2 R
Slide 17: The recently won BorWin6 project underlines BoDo's strong positioning
1 The recently won BorWin6 project again underlines BoDo's strong positioning in the field of onshore realization of offshore cable connections Project BorWin 6 Description 235km long and 980 MW DC link for Customer transporting wind power from the BorWin Kappa converter station to the converter sta
Slide 18: Bohlen & Doyen has concluded a framework agreement for HD drilling operations
2 In addition, Bohlen & Doyen has concluded a framework agreement for the execution of HD drilling operations HD drilling framework agreement Description Framework agreement for HDD drilling for Customer various offshore landfall projects (incl. BorWin6) and various hydraulic engineering services (l
Slide 19: German electricity infrastructure market is facing an unprecedented wave of investments
2 Due to massive electrification efforts, the German electricity infrastructure market is facing an unprecedented wave of investments 2023 2024 2025 2026 2027 2028 2029 2030 A310 A-Nord* OstWind6 SuedLink Tiefbau Hansa Powerbridge BorWin6 Amprion Korridor B DC34 LanWin3+6 TenneT Portfolio 3+4 Projec
Slide 20: Bützberg lighthouse Power-to-Gas project drives the hydrogen economy
3 In Bützberg VORWERK combines its deep experience in hydrogen and biogenic gases to drive innovation and pave the way for tomorrow’s hydrogen economy Lighthouse Power-to-Gas Project Bützberg Description Innovative R&D project funded by the Federal Ministry of Economics and Climate Protection to Cus
Slide 21: Key strategic priorities
Key strategic priorities Deliver excellent project execution Strong focus on excellent project execution in the field as well as efficient administrative processes in the back-end including risk management, billing, claim management and a firm grip on third-party services Acquire and retain best tal
Slide 22: 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 23: 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
Slide 24: Driving the clean energy transition
Driving the clean energy transition
Friedrich Vorwerk Group — Q1 2023 Earnings Presentation on 6ix