Friedrich Vorwerk : 15/05/2024 | Quarterly report Q1 2024 | 142 kB

Interim Statement

31 March 2024

FRIEDRICH VORWERK GROUP SE

21255 Tostedt

Friedrich Vorwerk in figures

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Friedrich Vorwerk in figures

Three months	2024	2023	∆ 2024
(unaudited)			/ 2023
	€k	€k	%
Order backlog	1,045,430	448,820	132.9
Order intake	121,337	206,803	-41.3
Earnings figures (adjusted*)	€k	€k	%
Revenue	76,710	73,074	5.0
Operating performance	76,710	73,076	5.0
Total performance	81,200	78,508	3.4
Cost of materials	-34,260	-36,306	-5.6
Staff costs	-31,994	-28,970	10.4
EBITDA	6,761	5,574	21.3
EBITDA margin	8.8%	7.6%
EBIT	1,944	1,248	55.7
EBIT margin	2.5%	1.7%
EBT	2,001	1,190	68.2
EBT margin	2.6%	1.6%
Consolidated net profit after non-controlling interests	1,585	771	105.6
EPS in €	0.08	0.04	105.6
Average number of shares outstanding	20,000,000	20,000,000	0.0
Earnings figures (IFRS)	€k	€k	%
EBITDA	6,761	5,574	21.3
Group result	1,558	748	108.2
EPS in €	0.08	0.04	108.2
Figures from the statement of financial position (IFRS)	31 Mar	31 Dec
	€k	€k	%
Non-current assets	145,435	137,697	5.6
Current assets	162,961	173,579	-6.1
thereof cash funds	37,005	56,530	-34.5
Issued capital	20,000	20,000	0.0
Other equity	153,307	151,542	1.2
Total equity	173,307	171,542	1.0
Equity ratio	56.2%	55.1%
Non-current liabilities	52,731	46,004	14.6
Current liabilities	82,358	93,730	-12.1
Total assets	308,396	311,276	-0.9
Net cash (+) / net debt (-))**	15,593	42,064	-62.9
Employees	1,742	1,695	2.8

* With regard to the adjustments, please refer to the information provided in the section on result of operations, financial position and net assets.

** This figure includes the value of securities.

Business development, result of operations, financial position and net assets

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Business development, result of operations, financial position and net assets

Business Development

The FRIEDRICH VORWERK Group once again demonstrated its excellent cross-segment market position in the first three months of the 2024 financial year, generating order intake of €121.3 million (previous year: €206.8 million), which largely resulted from plant construction projects attributable to the Electricity and Adjacent Opportunities segments. In addition to the aforementioned projects, further numerous renovation and service projects were acquired, meaning that the order backlog as at 31 March 2024 amounted to €1,045.4 million (31 December 2023: €1,000.8 million). The majority of the order backlog is attributable to the Electricity segment (€837.0 million), which therefore offers the greatest opportunities for growth in the short and medium term.

Despite sometimes challenging weather conditions, revenue in the reporting period increased by 5.0% to €76.7 million (previous year: €73.1 million), while EBITDA increased overproportionately from €5.6 million to €6.8 million in the current period. This corresponds to an EBITDA margin of 8.8%. Adjusted EBIT grew to €1.9 million (previous year: €1.2 million), which corresponds to an EBIT margin of 2.5%. The increase in profitability is mainly due to the gradual completion of the old projects acquired in 2020 and 2021 and are therefore affected by partly considerable increases in material and staff costs. Of particular note is here one major plant construction project in the Natural Gas segment, which is expected to be completed in the second quarter. In addition, the proportion of third party services was also reduced and a greater proportion of the value was generated using the company's own resources.

After a construction period of just under a year, FRIEDRICH VORWERK completed the Energy Transmission Line (ETL) 180 as part of a working group (joint venture) in the first quarter of 2024. The official commissioning of ETL 180, which connects the LNG terminal in Brunsbüttel with the existing long-distance pipeline network in the Hamburg area, took place on 11 March 2024 and make an important contribution to the security of energy supply in Germany. Due to the high time pressure of this critical infrastructure project and in some cases significant design changes, numerous items remain the subject of constructive follow-up negociations even after the completion of the construction work. Recultivation work along the approximately 55 km-long route will take place over the remainder of the financial year.

On 29 February 2024, the FRIEDRICH VORWERK Group acquired 100% of the shares in Seyde und Coburg Kathodischer Korrosionsschutz GmbH, based in Ludwigsfelde. Seyde und Coburg generates profitable annual revenue in the low single-digit million range and expands the Group's increasingly important corrosion protection expertise.

The Management Board and the Supervisory Board of Friedrich Vorwerk Group SE have proposed to distribute a dividend of €0.12 per entitled share for the financial year 2023 and to carry forward the remaining amount to new account. The dividend is subject to approval by the Annual General Meeting, which will be held in Hamburg on 3 June 2024.

Business development, result of operations, financial position and net assets

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Result of operations, financial position and net assets

The order backlog as of the reporting date of 31 March 2024 amounted to €1,045.4 million. Of the order backlog, 9% is attributable to the Natural Gas segment, 80% to the Electricity segment, 1% to the Clean Hydrogen segment and 10% to the Adjacent Opportunities segment. Order intake in the reporting period amounted to €121.3 million.

Consolidated revenue of the FRIEDRICH VORWERK Group amounted to €76.7 million in the reporting period. This corresponds to an increase of 5.0% compared to the same period of the previous year (€73.1 million). The increase in revenue is mainly due to a high revenue share from the major A-Nord project acquired in the previous year, where work on the preparatory measures started again in February after a short winter break. In addition, the inner-city construction projects and plant construction projects in particular contributed to revenue growth despite challenging weather conditions.

Revenue by quarter

in millions of €

125		109.5
	92.6	98.2
100

73.1 76.7

75

50

25

0

Q1	Q2		Q3	Q4
			2023		2024

EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by €1.2 million in the first three months to €6.8 million (same period in the previous year: €5.6 million). The profitability of the projects in the same period of the previous year was impacted in particular by sharp rises in the costs of materials, energy and third party services. The majority of these projects were completed by the reporting date, meaning that no further negative effects on profitability are expected.

EBITDA by quarter in millions of €

20
15									11.6
10		6.8	8.0			6.8
	5.6
5
0
	Q1	Q2		Q3	Q4
						2023		2024

After adjusted depreciation and amortisation of €4.8 million (previous year: €4.3 million), adjusted EBIT

amounted to €1.9 million (previous year: €1.2 million). The year-on-year increase in depreciation and amortisation is mainly the result of increased investment activity in recent financial years. Adjusted net income after minority interests amounted to €1.6 million (previous year: €0.8 million) and €0.08 per share (previous year: €0.04 per share).

Equity amounted to €173.3 million as at 31 March 2024 (31 December 2023: €171.5 million). In relation

to the consolidated balance sheet total of €308.4 million (31 December 2023: €311.3 million), the equity ratio as of the balance sheet date was 56.2% compared to 55.1% as at 31 December 2023. The increase is mainly due to the current result.

Business development, result of operations, financial position and net assets

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As at 31 March 2024, the FRIEDRICH VORWERK Group has liquidity (including securities) of €39.3 million (31 December 2023: €58.6 million). The decrease in liquidity is mainly the result of the negative cash flow from operating activities €-17.7 million. The operating cash flow is characterised in particular by the seasonal increase in net working capital, which is regularly reduced again by the end of the year. Another reason for the decline in cash and cash equivalents is the high level of investment activity of €8.1 million. This was offset by proceeds from borrowing of financial loans of €8.0 million. After deducting financial liabilities of €23.7 million (31 December 2023: €16.5 million), net cash and cash equivalents amounted to €15.6 million as at the reporting date (31 December 2023: €42.1 million).

Outlook

For the seasonally stronger summer months, the Management Board expects an acceleration in revenue recognition and a further increase in profitability, so that Group revenue of more than €380 million and an increased EBITDA margin of 11-13% are still expected. The adjusted EBIT margin will increase at a comparable rate despite higher depreciation as a result of investment activities.

IFRS consolidated income statement

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IFRS consolidated income statement

	IFRS consolidated income statement		1 Jan - 31 Mar		1 Jan - 31 Mar
		2024		2023
	(unaudited)		€k		€k
	Revenue		76,710		73,077
	Increase (+), decrease (-) in finished goods and work in progress		0		-1
	Operating performance		76,710		73,076
	Income from equity investments	3,198		4,410
	Other operating income
		1,292		1,022
	Total performance		81,200		78,508
	Cost of raw materials and supplies	-8,485		-5,329
	Cost of purchased services	-25,774		-30,977
	Cost of materials	-34,260		-36,306
	Wages and salaries	-24,756		-21,827
	Social security and pension costs	-7,238		-7,142
	Staff costs	-31,994		-28,970
	Other operating expenses	-8,185		-7,659
	Earnings before interest, taxes, depreciation and amortisation
	(EBITDA)		6,761		5,574
	Depreciation and amortisation	-4,858		-4,364
	Earnings before interest and taxes (EBIT)		1,904		1,209
	Finance income		323		115
	Finance expenses		-252		-135
	Earnings attributable to non-controlling interests		-11		-35
	Net finance costs		60		-56
	Earnings before taxes (EBT)		1,963		1,153
	Income tax expense	-294		-352
	Other taxes
		-112		-30
	Profit or loss for the period		1,557		771
	Non-controlling interests	0		-23
	Consolidated net profit		1,557		748
	Earnings per share (in €)		0.08		0.04

IFRS consolidated statement of comprehensive income

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IFRS consolidated statement of comprehensive income

	IFRS consolidated statement of comprehensive income		1 Jan - 31 Mar		1 Jan - 31 Mar
		2024		2023
	(unaudited)		€k		€k
	Profit or loss for the period		1,557		771
	Items that may be subsequently reclassified to profit and loss
	Currency translation differences		4		1
	Items that cannot be subsequently reclassified to profit and loss
	Changes in the fair value of shares		205		173
	Other comprehensive income after taxes		209		174
	Comprehensive income for the reporting period		1,767		945
	thereof attributable to:
	- Shareholders of the parent company		1,767		922
	- Non-controlling interests		0		23

IFRS consolidated statement of financial position

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IFRS consolidated statement of financial position

	IFRS consolidated statement of financial position		31 Mar 2024		31 Dec 2023
	Assets		unaudited		audited
			€k		€k
					K
	Non-current assets
	Concessions, industrial property rights and similar rights		1,186		1,147
	Goodwill		4,406		4,276
	Intangible assets		5,593		5,423
	Land and buildings, including buildings on third-party land		48,733		36,758
	Real estate
	Technical equipment and machinery		37,440		36,154
	Other equipment, operating and office equipment		25,210		23,310
	Advance payments and assets under construction		2,759		14,118
	Property, plant and equipment		114,142		110,340
	Equity investments		13,096		10,591
	Investment securities		2,273		2,068
	Financial assets		15,369		12,659
	Deferred tax assets		10,332		9,276
			145,435		137,697
	Current assets
	Raw materials and supplies	7,852		7,241
	Work in progress
		7		7
	Inventories		7,860		7,249
	Trade receivables		32,500		37,431
	Contract assets		77,420		66,174
	Other current assets		8,176		6,194
	Trade receivables and other current assets		118,097		109,800
	Cash in hand		17		28
	Bank balances		36,988		56,503
	Cash in hand, bank balances		37,005		56,530
			162,961		173,579
	Total assets		308,396		311,276

IFRS consolidated statement of financial position

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	IFRS consolidated statement of financial position	31 Mar 2024	31 Dec 2023
	Equity and liabilities	unaudited	audited
		€k	€k
	Equity
	Issued capital	20,000	20,000
	Capital reserve	76,204	76,204
	Retained earnings and other reserves	77,058	75,293
	Non-controlling interests	44	45
		173,307	171,542
	Non-current liabilities
	Liabilities to banks	17,230	10,333
	Liabilities to non-controlling interests	6,602	6,591
	Liabilities from participation rights	10,213	10,213
	Lease liabilities	1,146	1,364
	Pension provisions	1,990	1,990
	Deferred tax liabilities	15,550	15,513
		52,731	46,004
	Current liabilities
	Liabilities to banks	2,902	2,370
	Contract liabilities	20,644	25,541
	Trade payables	5,057	3,695
	Liabilities to non-controlling interests	1,832	1,821
	Other liabilities
	14,799	19,221
	Lease liabilities	2,407	2,267
	Provisions with liability character	20,969	25,100
	Tax provisions	6,846	6,811
	Other provisions	6,903	6,904
		82,358	93,730
	Total equity and liabilities	308,396	311,276

IFRS consolidated statement of cash flows

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IFRS consolidated statement of cash flows

	IFRS consolidated statement of cash flows		1 Jan - 31 Mar		1 Jan - 31 Mar
		2024		2023
	(unaudited)		€k		€k
	1. Cash flow from operating activities
	Earnings before interest and taxes (EBIT)		1,904		1,209
	Depreciation and amortisation		4,858		4,364
	Increase (+), decrease (-) in provisions		-30		-1,179
	Losses (+), gains (-) from disposal of property, plant and equipment		6		-17
	Results from equity investments		-3,198		-4,410
	Other non-cash expenses and income		16		25
	Adjustments for non-cash transactions		1,652		-1,217
	Increase (-), decrease (+) in inventories, trade receivables and other		-8,090		-11,742
	assets
	Decrease (-), increase (+) in trade payables and other liabilities		-11,976		-4,992
	Change in working capital		-20,066		-16,734
	Income taxes paid	-1,484		-5,149
	Interest received	323		115
	Cash receipts from dividends paid by equity investments	0		1,141
	Cash flow from operating activities		-17,671		-20,635
	2. Cash flow from investing activities
	Investments (-), divestments (+) in intangible assets		-114		-232
	Investments (-), divestments (+) in property, plant and equipment		-7,895		-7,920
	Investments (-), divestments (+) in financial assets and securities		0		-4
	Acquisitions (less cash received)		-126		0
	Cash flow from investing activities		-8,134		-8,156
	3. Cash flow from financing activities
	Proceeds from borrowing financial loans		8,000		0
	Repayments of financial loans		-771		-595
	Repayments of lease liabilities		-702		-773
	Interest payments		-248		-132
	Payments to non-controlling interests		0		-1,234
	Cash flow from financing activities		6,280		-2,734