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DEME OUTSTANDING 2024: STRONG INCREASES IN TURNOVER AND PROFIT; POSITIVE NET CASH AND UNMATCHED ORDERBOOK Luc Vandenbulcke & Stijn Gaytant 26 February 2025 FULL YEAR RESULTS 2024
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DEME AGENDA 2 00 Executive summary 01 Group financial highlights 02 Segments update 03 ESG & safety 04 Dividend & outlook 05 Q&A FULL YEAR RESULTS 2024
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DEME EXECUTIVE SUMMARY FY24 Strong increases in turnover and profit - positive net cash and unmatched orderbook 3 Strong free cash flow of 729 million euro vs 62 million euro a year ago, and leading to a net cash position of 91 million euro EBITDA rose 28% to 764 million euro, for an EBITDA margin of 18.6%, up from 18.2% Net profit was 288 million euro, +77% y-o-y Guiding for a 2025 turnover and EBITDA margin at least in line with 2024 CapEx for 2025 estimated around 300 million euro before larger investment decisions Orderbook at an unmatched level of 8.2 billion euro Turnover grew 25%, surpassing the 4 billion euro mark, reflecting effective project execution across all segments FULL YEAR RESULTS 2024 Dividend at 3.8 euro per share, up 81% y-o-y
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DEME GROUP FINANCIAL HIGHLIGHTS 01 4 FULL YEAR RESULTS 2024
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DEME 5 FY24 – KEY FINANCIAL HIGHLIGHTS (1/2) (in millions of euro) 2024 2023 2022 Orderbook y-o-y growth 8,200 +8% 7,582 +22% 6,190 +5% Turnover y-o-y growth 4,101 +25% 3,285 +24% 2,655 +6% EBITDA Margin 764 18.6% 596 18.2% 474 17.9% Depreciation & impairment -411 -355 -319 EBIT Margin 354 8.6% 241 7.3% 155 5.8% Financial results -9 -23 -24 Current taxes and deferred taxes -90 -50 -31 Share of profit of JVs and associates 40 3 16 Net profit 288 163 113 Orderbook at unmatched level of 8.2 billion euro, +8% vs 2023 Turnover +25%, surpassing the 4 billion euro mark, all segments contributing to the growth EBITDA, EBIT, Net profit on the rise and growing at a faster rate than turnover Higher depreciation vs 2023 and 2022 Depreciations increased due to recent investments and IFRS 16 leases FULL YEAR RESULTS 2024 Income statement Financial result reflects improved FOREX results and net interest cost in 2024
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DEME 6 FY24 – KEY FINANCIAL HIGHLIGHTS (2/2) Key balance sheet items 1. Operating working capital (+ is receivable, - is payable) is net working capital (current assets less current liabilities), excl uding interest-bearing debt and cash & cash equivalents and financial derivatives related to interest rate swaps , including other non-current assets and non-current liabilities (if any) as well as non -current financial derivatives (assets and liabilities), except for those related to interest rate swaps. 2. Free cash flow is computed as the sum of cash flow from operating activities and cash flow from investing activities decrease d with the cash flow related to lease repayments that are reported in the cash flow from financial activities. Strong free cash flow Driven by a significant increase in turnover, profitability, improved working capital and lower investment levels (in millions of euro) FY24 FY23 FY22 Operating working capital1 -813 -471 -506 CapEx 286 399 484 Free cash flow² 729 62 -80 Cash & cash equivalents 853 389 522 Net financial cash (debt) 91 -512 -521 FULL YEAR RESULTS 2024 From a net financial debt of -512 million euro to a net financial cash position of 91 million euro CapEx 2024 declined y-o-y In line with the investment guidance for the year ; including capitalized maintenance investments and new fleet additions in the Offshore Energy segment
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DEME 7 Orderbook FY24 – GROUP ORDERBOOK Orderbook run-off (in millions of euro) Orderbook run-off supports our topline outlook for the year and provides near-term visibility Orderbook reached a new record level, even with the high conversions of backlog into revenue 4,500 5,905 6,190 7,582 8,200 FY20 FY21 FY22 FY23 FY24 Offshore Energy Dredging & Infra Environmental (in millions of euro & %) 3,639 2,290 2,271 FY25 FY26 >2026 44% 38% 28% 28% Run-off volume for 2025 in line with a year ago and volumes exceeding 4.5 billion euro spread across 2026 and beyond Y-o-y growth mainly driven by continued increase in Offshore Energy, while orderbook for Dredging & Infra and Environmental remains at healthy levels Geographical breakdown 71% 4% 12% 10% 3% Europe Africa America Asia Middle East FY24 58% 5% 18% 12% 7% FY23 Europe expanded its leading position to achieve 71% of the backlog FULL YEAR RESULTS 2024 Backlog for the America-region decreased from 18% to 12% driven by effective project execution on US East Coast offshore projects The Asia region covers both Asia and Oceania
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DEME 8 Turnover Segment breakdown FY24 – GROUP TURNOVER Geographical breakdown 2,196 2,511 2,655 3,285 4,101 FY20 FY21 FY22 FY23 FY24 (in millions of euro) 2,196 2,511 2,655 3,285 4,101 FY20 FY21 FY22 FY23 FY24 Offshore Energy Dredging & Infra Environmental 60%8% 18% 9% 5% Europe Africa America Asia Middle East FY24 63%8% 18% 8% 3% FY23 (in millions of euro) 25% growth year-over-year after a 24% growth in 2023 Strong double-digit growth in all contracting segments again in 2024 - Offshore Energy: +37% - Dredging & Infra: +22% - Environmental: +11% Leading position maintained in Europe; America also strong fueled by solid progress on ongoing offshore projects Group turnover grew 25% with strong growth in all contracting segments FULL YEAR RESULTS 2024 Relative stable geographical positions Turnover nearly doubled over last 5 years 1 1. Breakdown of segment results based on segment turnover, excluding reconciliation effects
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DEME 9 EBIT & EBIT margin Net profit & margin FY24 – GROUP PROFITABILITY Surge in all profitability metrics EBITDA & EBITDA margin 474 596 764 17.9% 18.2% 18.6% 15.0% 25.0% 0 100 200 300 400 500 600 700 800 900 FY22 FY23 FY24 EBITDA EBITDA margin 155 241 354 5.8% 7.3% 8.6% 0.0% 5.0% 10.0% 15.0% 20.0% 0 50 100 150 200 250 300 350 400 FY22 FY23 FY24 EBIT EBIT margin 113 163 288 4.2% 5.0% 7.0% 0.0% 5.0% 10.0% 15.0% 20.0% 0 50 100 150 200 250 300 350 FY22 FY23 FY24 Net profit Net profit margin (in millions of euro) (in millions of euro) (in millions of euro) EBITDA up 28% y-o-y EBITDA margin @ 18.6%, up from 18.2% EBITDA margin remains solid across the board, with marked growth in Offshore Energy EBIT up 47% y-o-y EBIT margin @ 9%, up from 7% Depreciation and impairment rose y-o-y due to investments in ‘Yellowstone’ and ‘Sea Installer’ and IFRS 16 leases Net profit @ 288 million euro, up 77% y-o-y Net profit margin @ 7%, up from 5% for 2023 Earnings per share 11.4 euro compared to 6.4 euro for 2023 FULL YEAR RESULTS 2024
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DEME 10 Net Result & Margin FY24 – CAPEX Continued investments in strengthening the fleet pay off Evolution of CapEx1 (in millions of euro) 441 435 202 282 484 399 286 2018 2019 2020 2021 2022 2023 2024 Increased capacity of ‘Viking Neptun’ with installation of a second turntable Maintenance investments in entire DEME fleet 1. Excluding investments in financial fixed assets CapEx Highlights 2024 NET BOOK VALUE PROPERTY, PLANT & EQUIPMENT 2,468 million euro (compared to 2,582 million euro for 2023) Major conversion of ‘Yelllowstone’, a pioneering fallpipe vessel, which joined the fleet in 1H24 ‘Karina’, an offshore survey vessel, added to the fleet and put into operation during 2024 FULL YEAR RESULTS 2024
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DEME FY24 – SEGMENTS Complementary segments result in diversified sources of income 11 (in millions of euro) 2024 2023 2024 2023 2024 2023 Turnover1 y-o-y growth 2,055 +37% 1,502 1,963 +22% 1,605 337 +11% 304 EBITDA Margin 432 21% 231 15% 358 18% 298 19% 44 13% 51 17% EBIT2 Margin 259 13% 102 7% 118 6% 73 5% 32 9% 41 14% (in millions of euro) Since start Value of projects at closing (Debt & Equity) c. 7,200 Own equity invested c. 240 Contracting revenue generated c. 3,000 DREDGING & INFRA ENVIRONMENTALOFFSHORE ENERGY CONCESSIONS (in millions of euro) 2024 2023 Net result from associates 12 37 1. The reconciliation between the segment turnover and the turnover as per financial statements refers to the turnover of joint ventures. They are consolidated according to the proportionate method in the segment reporting but according to the equity consolidation method in the financial statements 2. EBIT before DEME’s share in the result of joint ventures and associates FULL YEAR RESULTS 2024
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DEME SEGMENTS UPDATE 02 12 FULL YEAR RESULTS 2024
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DEME OFFSHORE ENERGY FULL YEAR RESULTS 2024 13
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DEME FENGMIAO 1 Foundation and offshore substation installation OFFSHORE ENERGY Performance Dashboard 2024 14 Orderbook Turnover EBITDA & Margin Fleet utilization rate (in millions of euro) (in millions of euro) (in millions of euro) (in weeks) 3,261 3,755 4,259 2022 2023 2024 958 1,502 2,055 2022 2023 2024 222 231 432 23% 15% 21% 2022 2023 2024 34 41 47 2022 2023 2024 IJMUIDEN VER ALPHA AND NEDERWIEK 1 Cable installation works PRINCESS ELISABETH ISLAND Export cable project Revenue exceeded 2 billion euro, reflecting 37% growth, more than doubling in 2 years EBITDA grew 87% driven by strong turnover growth and disciplined and effective project execution Higher vessel utilization reflecting a 90% occupancy; ‘Yellowstone’ and ‘Karina’ joining the fleet and upgrade for ‘Viking Neptun’ Orderbook reached a record high driven by strong demand, recent expansion of fleet capacity, add- ons to existing projects and addition of new contracts in the APAC region and Europe EBITDA margin FULL YEAR RESULTS 2024 ORANJEWIND Inter-array cable and secondary steel NORDLICHT 1 & 2 Transport & Installaton of foundations and scour protection
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DEME 15 Key projects 2024 OFFSHORE ENERGY A A F B MORAY WEST (900 MW) 29 monopiles foundations DOGGER BANK A, B & C (3.6 GW) Inter-array cables & rock dumping COASTAL VIRGINIA (2.6 GW) 176 monopiles; substations ; Inter-array and export cables ÎLE D’YEU AND NOIRMOUTIER (1 GW) 62 XXL monopiles; deploying drilling technique; jacket and substation D SEA INSTALLER • DP2 jack-up vessel • 1,600-ton lifting capacity INNOVATION • DP2 jack-up vessel • 1,500-ton lifting capacity ORION • DP3 floating installation vessel • 5,000-ton lifting capacity C HAI LONG (1 GW) 73 jacket foundations, turbines and offshore substation DIEPPE – LE TRÉPORT Pin piles, jackets for 62 turbines; offshore substation and inter-array cables VIKING NEPTUN • DP3 cable vessel • 4,500 and 7,000-ton cable capacity GREEN JADE • DP3 floating installation vessel • 4,000-ton lifting capacity Actual project work in 2024 B C D A FULL YEAR RESULTS 2024 B
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DEME 16 FULL YEAR RESULTS 2024 DREDGING & INFRA
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DEME DREDGING & INFRA Performance Dashboard FY24 17 Orderbook Turnover EBITDA & Margin Fleet utilisation rate (in millions of euro) (in millions of euro) (in millions of euro) (in weeks) Turnover grew 22% y-o-y, approaching two billion euro, driven by strong performance across a range of projects including maintenance, capital dredging and infrastructure work EBITDA grew 20% driven by sustained high activity levels and disciplined project execution Vessel occupancy increased across the fleet driven by strong backlog including recent contract wins Orderbook grew 3% y-o-y with a healthy intake of new projects across various regions EBITDA margin 2,616 3,472 3,589 2022 2023 2024 1,524 1,605 1,963 2022 2023 2024 255 298 358 17% 19% 18% 2022 2023 2024 38 38 43 29 27 34 2022 2023 2024 TSHD 1 CSD 2 1. TSHD: Trailing Suction Hopper Dredger 2. CSD: Cutter Suction Dredger GRAND LAHOU Coastal Protection project RAVENNA Extension and modernization of the port facilities MALAYSIA Container port expansion and maintenance OOSTERWEEL Antwerp ring road, including immersed tunnel in the River Scheldt FULL YEAR RESULTS 2024 CUXHAVEN Construction of offshore wind terminal LE HAVRE New access channel linking Port 2000 to the outer harbor
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DEME 18 Key projects 2024 Actual project work in 2024 DREDGING & INFRA PORT-LA NOUVELLE Port expansion via dredging and construction of terminals A F WEST-AFRICA Multiple maintenance- and reclamation works C KIEL CANAL Widening of the Kiel Canal towards the Elbe river OOSTERWEEL Completion of Antwerp ring road, including construction of immersed tunnel in the Scheldt river E LONDON GATEWAY PORT Maintenance of the access channel D C F A D I E PORT OF OXAGON 2nd phase of capital dredging and construction works I J INDIA Multiple maintenance dredging projects on West- and East coast India J FULL YEAR RESULTS 2024 B NEW LOCK TERNEUZEN Wet and dry earthmoving works and dredging for the new lock complex B UAE Deployment of our largest CSDs for land reclamation projects G H EGYPT Continuation of reclamation works for the port of Abu Qir 2 H G
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DEME 19 FULL YEAR RESULTS 2024 ENVIRONMENTAL
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DEME ENVIRONMENTAL Performance Dashboard FY24 20 Orderbook Turnover EBITDA & Margin (in millions of euro) (in millions of euro) (in millions of euro) Turnover grew 11% to 337 million euro fueled by long-term and complex remediation and high water protection projects across Belgium, the Netherlands, UK and Norway EBITDA margin of 13% (2023 margin included a non-recurring settlement) Orderbook remains stable with additional projects in the Benelux; exploring opportunities in Italy and the UK Launching ‘Cargen’, an innovative JV, frontrunning with active carbon based water and gas treatment, expanding the portfolio of remediation solutions EBITDA margin 313 355 352 2022 2023 2024 BELGIUM THE NETHERLANDS 206 304 337 2022 2023 2024 25 51 44 12% 17% 13% 2022 2023 2024 FULL YEAR RESULTS 2024
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DEME 21 Key projects 2024 Actual project work in 2024 ENVIRONMENTAL A A FORMER OIL TERMINAL Turning former oil-polluted oil terminal into residential plot for houses ; >200,000 tonnes of soil treated C C MARKEN A multi-year dyke reinforcement project, part of the Netherlands Flood Protection Program Soil remediation and brownfield development High water protection A B C OOSTERWEEL Treating PFAS polluted soils SERAING Large reconversion project of a former Arcelor Mittal site, near Liège BA GOWA 23km dyke reinforcement, part of the Netherlands Flood Protection Program FELUY Remediation of former industrial brownfield site FULL YEAR RESULTS 2024
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DEME 22 FULL YEAR RESULTS 2024 CONCESSIONS
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DEME CONCESSIONS Net result 23 Offshore Dredging & Infra Green Hydrogen Global Sea Mineral Resources (in millions of euro) 2024 2023 2022 Net result from associates 12 37 9 Involved in marine infrastructure projects (Blankenburg, Port-La Nouvelle, Port of Duqm) Exploring new opportunities & working on preliminary agreement for a new terminal for the port of Swinoujscie (Poland) Advancing hydrogen development initiatives to be among the first in the world to produce green molecules from renewable energy Stakes in offshore wind projects with a total installed capacity of over 1 GW (144 MW proportional capacity) generating recurring income GSR continues to monitor legislative developments at the International Seabed Authority Net results 2024 at 12 million euro (2023 benefitted from favorable prices and one-off tailwinds) Partnership with bp for HYPORT Duqm (Oman) and new cooperation agreement to study hydrogen project in the Gargoub port area (Egypt) Advancing on the ScotWind concession project and preparing for upcoming tenders in e.g. Belgium FULL YEAR RESULTS 2024
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DEME ESG & SAFETY 03 24 FULL YEAR RESULTS 2024
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DEME 25 Update on progress ESG (1/2) (in % of total volume) 2024 2023 2022 Reduction of GHG-intensity1 30% - 27% Low carbon fuels2 6% 10% 6% 1. GHG-intensity is a measurement of greenhouse gas (GHG) emissions per dredged cubic meter or installed megawatt using 2008 as the baseline year ; GHG intensity was not assessed nor audited for the year 2023 . 2. Low carbon fuels combine the fuels for which the CO2 emissions are lower compared to conventional fuel (marine gas oil). This category includes fuels such as LNG (Liquified Natural Gas) and blended bio -fuels. 3. The Worldwide Lost Time Injury Frequency Rate (Worldwide LTIFR) is the metric reflecting accidents of employees , taking into account a risk-based method that combines the risk level rate and injury rate 42% of DEME’s turnover is EU taxonomy aligned, up from 33%, driven by strong growth in 2024 offshore wind projects and the inclusion of DEME’s environmental activities, such as remediation of contaminated sites and treatment centers Environmental (in %) 2024 2023 2022 EU Taxonomy - Turnover Eligible activities 45% 42% 29% Aligned activities 42% 33% 26% EU Taxonomy - CapEx Eligible activities 47% 49% 52% Aligned activities 46% 49% 52% FULL YEAR RESULTS 2024 Improvement to 30% reduction of greenhouse gas from 27% two years ago and further narrowing the gap towards the 40% target by 2030 Low-carbon fuel consumption decreased to 6% of total fuel usage mainly due to non-generalized adoption of alternative fuels and limited availability of low-carbon alternatives in the main regions of operations 2024 2023 2022 Headcount 5,822 5,555 5,207 Worldwide LTIFR3 0.10 0.19 0.23 Worldwide LTIFR shows another notable y-o-y improvement and better than target of 0.20, reflecting the effect of various underlying initiatives to drive improvements DEME’s employee force expanded to a headcount of 5,822, marking a 5% increase y-o-y; Significant investments and focus on retaining and attracting talent to support DEME’s mid and long term growth Social & Governance
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DEME 26 Highlighting some ESG initiatives in 2024 ESG (2/2) FULL YEAR RESULTS 2024 ELECTRIFICATION OF OUR CAR FLEETTESTING OF HYDROGEN GENERATOR MOVING TO ZERO-EMISSION EQUIPMENT CYCLING FOR KOM OP TEGEN KANKER TOWARDS A CLIMATE-NEUTRAL DEME CAMPUS COLLABORATION WITH MERCY SHIPS
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DEME DIVIDEND & OUTLOOK 04 FULL YEAR RESULTS 2024 27
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DEME Subject to the approval of the General Assembly, the dividend payment date is proposed to be set at 30 May 2025. FULL YEAR RESULTS 2024 28 An 81% increase in gross dividend DIVIDEND In line with DEME’s dividend policy, targeted to a pay-out ratio of 33% of the group’s net profit, the Board of Directors will propose to the General Assembly a gross dividend of 3.8 euro per share, marking an 81% increase compared to last year.
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DEME OUTLOOK 29 This slide includes forward-looking statements which, although based on assumptions that the Company considers reasonable, are s ubject to risks and uncertainties which could cause events or conditions to materially differ from those expressed or implied by the forward -looking statements. The Company confirms that the outlook has been compile d and prepared on a basis which is ( i) comparable with the historical financial information and (ii) consistent with the Company’s accounting policies. Turnover and EBITDA margin to be at least in line with 2024 CAPEX to be around 300 million euro before larger fleet capacity expansion investments that may be decided upon to support longer term growth opportunities FULL YEAR RESULTS 2024 Also for the mid-term and despite the current geopolitical challenges, DEME’s management remains confident that it is well positioned to continue delivering robust performances, supported by a solid orderbook, a strong balance sheet and encouraging market prospects, particularly driven by the accelerating energy transition Considering the current project schedules in the backlog, the pipeline of new opportunities and fleet capacity, DEME’s management expects for 2025
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DEME Q&A FULL YEAR RESULTS 2024 30
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DEME AGENDA 31 26/02/2025 Full year 2024 results 24/03/2025 Publication annual report 14/05/2025 Trading update Q1 2025 21/05/2025 General assembly 26/08/2025 Half year 2025 results 13/11/2025 Trading update Q3 2025 FINANCIAL CALENDAR FULL YEAR RESULTS 2024
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DEME THANK YOU 32 For more information vanden.bussche.carl@deme-group.com FULL YEAR RESULTS 2024
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DEME This presentation contains proprietary and/or confidential information. Any disclosure, copying, distribution or use of this information/the ideas incorporated is strictly prohibited. This information is not to be considered as a representation of any kind. Any intellectual and industrial property rights and any copyrights with regard to this presentation, and the information therein, shall remain the sole property of DEME Group. DISCLAIMER 33 DISCLAIMER The Information and any opinions contained therein are provided as at the date of the presentation and are subject to change without notice. In giving this presentation, DEME does not undertake any obligation to provide the recipient with access to any additional information or to update the Information, or to correct any inaccuracies in the Information, including any data or forward-looking statements. The Information contains statistics, data and other information relating to ma rkets, market sizes, market shares, market positions and other industry data pertaining to DEME’s business and markets. Unless otherwise indicated, such information is based on D EME’s analysis of multiple sources such as industry publications, market research and other publicly available information. Such information has been accurately reproduced and, as far as DEME is aware and able to ascertain, no facts have been omitted which would render the reproduced information provided inaccurate or misleading. Third party industry publi cations, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but there is no guarantee of the accuracy or completeness of such data. While DEME reasonably believes that each of these publications, studies and surveys has been prepared by a reputable party, DEME has not verified t he data contained therein. In addition, certain of the industry, market and competitive position data contained in the Information come from DEME’s own internal research and estima tes based on the knowledge and experience of DEME’s management in the markets in which DEME operates. While DEME reasonably believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in the Information. The Information may include statements that are, or may be deemed to be, “forward- looking statements”. These forward-looking statements may be identified by the use of forward -looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “targets”, “may”, “will” or “should” or, in each case, their negative or other variation s or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward -looking statements may and often do differ materially from actual result s. Past performance of DEME cannot be relied on as a guide to future performance. Any forward-looking statements reflect DEME’s current view with respect to future events and are su bject to risks relating to future events and other risks, uncertainties and assumptions relating to DEME’s business, results of operations, financial position, liquidity, prosp ects, growth or strategies, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contain ed in DEME’s records (and those of its affiliates) and other data available from third parties. Although DEME believes that these assumptions were reasonable when made, these assum ptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Forward-looking statements are not guarantees of future performance and such risks, uncertainties, contingencies and other important factors could cause the actual results of operations, financial condition and liquidity of DEME and its affiliates or the industry to differ materially from those results expressed or implied in the Info rmation by such forwardlooking statements. No representation is made that any forward-looking statements will come to pass or that any forecast result will be achieved. As a result, undue i nfluence should not be placed on any forward-looking statement. Forward-looking statements speak only as of the date they are made. FULL YEAR RESULTS 2024