Increase in revenue and continued development of business segments. Grenevia Group has summed up the year 2023.
In 2023, the revenue of Grenevia Group amounted to PLN 1.644 billion. This represents an increase of 27% compared to 2022, resulting from higher revenue in the electrical power engineering and PV segments, stable revenue streams achieved by the FAMUR segment, and consolidation of the e-mobility segment for the full period. In 2023, EBITDA stood at PLN 414 million which means profitability at the level of 25 percent. Grenevia achieved net profit of PLN 144 million, an increase of 20 percent compared to 2022.
The past year was a period of intensive development of the four business segments that make up Grenevia Group. The scale of operations of Impact Clean Power Technology was expanded in the e-mobility segment. The company continues to cooperate with and secures new contracts from world leaders in the manufacturing of electric buses. It also finalises the investment in GigafactoryX or the building of a large-scale factory to manufacture batteries for electric vehicles. A highly automated state-of-the-art manufacturing line will support the production of a new battery for the e-mobility sector every 11 minutes. In the photovoltaics segment, Projekt Solartechnik concluded in 2023 a preliminary agreement to sell to KGHM a portfolio of PV projects with a total capacity of approx. 50 MW. The transaction was finally closed and settled in February 2024. In the electrical power engineering segment, Elgór + Hansen recorded a significant increase in revenue. The company is expanding the offer related to the distribution and supply of energy, especially in the area of renewable energy, including but not limited to container transformer stations for PV farms. In the area of solutions and services for the wind energy sector, the FAMUR segment expanded its offer, among others due to the acquisition of a 75.24% stake in Total Wind PL. The development of business operations in this area led to the establishment in February 2024 of the FAMUR Gearo area which consolidates all activities related to solutions for wind energy sector within the segment.
In 2023, we pursued the strategic process of transforming Grenevia into a holding investing in green transformation. We continued the journey set by strategic directions adopted in 2021. We focused on building the value of large-scale photovoltaics and e-mobility segments. At the same time, we implemented new initiatives in traditional business areas to increase their involvement in sectors related to renewable energy, including wind energy. I think that we have already built a new structure and business model that allows us to be flexible and quickly respond to changes in the reality surrounding us.
At the beginning of the previous year, we adopted the Sustainable Development Strategy for 2023-2030 which integrates the business strategy of Grenevia with the ESG area. We pursue this strategy in all segments of our business operations. It resulted, among others, in an increase in the share of consolidated sustainable revenue, consistent with the EU Taxonomy, from 9.2% in 2022 to 25.5% in 2023, and an increase in capital expenditure on business operations consistent with the taxonomy from 5.8% to 61.4%. In 2023, our green capex stood at PLN 466 million.
Beata Zawiszowska, CEO of Grenevia SA
Operating results of Grenevia business segments in 2023
E-mobility sector
In 2023, the electro-mobility segment recorded PLN 335 million in revenue. Export sale accounted for 32% and involved the territory of Europe. In 2023, the business operations of Impact Clean Power Technology SA (IMPACT), creating the e-mobility segment focused on securing new framework agreements and contracts for the delivery of battery systems for e-buses in 2024-2026. The cooperation with Solaris is continued and there is a steady increase in the scale of purchase orders received from Alexander Dennis Limited – a global leader in the design and manufacture of double-deckers. As part of the actions ensuring stability in the supply chain, the market of suppliers of modules and electronics was analysed to conclude agreements with key suppliers while also introducing Dual Sourcing. The current actions have translated to a large extent into a better availability of components in all purchasing categories. Cooperation agreements were signed with Freyr and LG Energy Solution and diversification of supplies from China was enhanced.
IMPACT continues, as planned, the investment in GigafactoryX which is scheduled to be fully operational in the second quarter of 2024. The manufacturing line is currently being assembled. The launch of GigafactoryX will allow to double the Impact production from 0.6 GWh to 1.2 GWh per year and will provide a guarantee of reproducible quality of the batteries manufactured. Total capital expenditure incurred on this investment in 2023 was approx. PLN 87 million. In the fourth quarter of 2023, external sources of financing were secured in the form of two factoring agreements with a limit of up to PLN 60 million for each of them, and credit facility agreements including a working capital facility of up to PLN 75 million and an investment facility of up to approx. EUR 22 million, which allowed to repay working capital and investment loans granted by shareholders (including Grenevia SA).
Photovoltaic segment
In 2023, the large-scale photovoltaics (PV) segment generated PLN 78 million in revenue, an increase of PLN 24 million (44%) compared to the twelve months of 2022.
At the end of 2023, the estimated total capacity of projects in the Projekt Solartechnik Group (PST) portfolio on the Polish market, which are currently at various stages of development, increased by some 1.1 GW to approx. 4.2 GW compared to the end of 2022. Of this, 210 MW of PV farm power was connected to the power grid, and the total power of PV projects with conditions for connection was ~1 GW. In turn, over 0.5 GW of PV projects at various stages of development were recorded on the German market. In addition, as a result of the decision to diversify the portfolio towards wind energy sources and energy storage, the capacity of the conditions for connection for energy storage and wind farms amounted to 228 MW and 37 MW, respectively.
The operations of the segment focused mainly on the intensive development of the project portfolio, the consistent construction of new PV farms and the diversification of the PST portfolio towards wind energy and energy storage projects. Last year, the process of offering packages of ready-made projects to the market and selling energy in the PPA/cPPA formula from ready-made photovoltaic farms was continued. In September 2023, PST concluded a preliminary agreement to sell to KGHM a portfolio of PV projects with a total capacity of approx. 50 MW. The value of the transaction was approx. PLN 210 million, and it was finally closed and settled in February 2024. In order to finance the construction costs of photovoltaic farms, the PV segment successfully secured nearly PLN 200 million of project finance.
Power engineering segment
In 2023, the electrical power engineering segment secured contracts totalling PLN 263 million, an increase of PLN 139 million compared to the previous year. It generated PLN 162 million in revenue, of which PLN 52 million as a result of synergy within the Grenevia Group, i.e. the sale to FAMUR and photovoltaics (PV) segments. Gross profit on sales for 2023 in this segment stood at PLN 48 million, an increase of PLN 17 million (55%) year-on-year. At the end of 2023, the total order book reached the level of PLN 129 million, including PLN 63 million worth of orders for Grenevia segments.
Last year, the business operations of the segment focused on maintaining the position of the first-choice partner in the sector of solutions for the mining industry and continued development of the offer for distribution and supply of energy, especially in the area of renewable energy. In view of the continuing demand for renovation of equipment used in the mining industry, the scope of aftermarket services has been expanded. A significant increase in revenue from the renewable energy sector (container transformer stations for PV farms) was recorded, and revenue related to the supply of electricity switchboards and industrial machine control systems increased slightly as well. The increase in the scale of Elgór+Hansen SA business operations in 2023 resulted in an increase in employment and the launch of a new manufacturing line for transformer stations in Zabrze.
FAMUR segment
In 2023, the revenue of the FAMUR segment amounted to PLN 1.116 billion. The total order book, which includes deliveries of machinery and equipment and leases, reached the level of approx. PLN 730 million at the end of last year.
In the area of solutions and services for the wind energy sector, the FAMUR segment is consistently expanding its offer. In July 2023, Grenevia SA acquired a 75,24% stake in the share capital of Total Wind PL Sp. z o.o. for an amount of approx. EUR 4,5 million. It is a Polish company whose main operations involve the installation of wind turbines and the servicing and replacement of main components for key turbine manufacturers. The acquisition of this company allowed to supplement the competence of the FAMUR segment in the area of solutions and services for the wind energy sector, and also expanded the operations of one of the key manufacturing plants in this segment. The expected revenue synergies will allow to increase the scale of operations in this area, through the possibility of supplementing the current offer (renovations, servicing, monitoring systems and technical consultancy on gears) with replacement and servicing of the main turbine components, and installation services. The next step in the development of wind energy operations was the creation of the FAMUR Gearo area within the segment structure in February 2024. It will consolidate all operations related to the development and offering of comprehensive solutions for wind energy and the manufacturing of gears for various industrial applications.
In the area of production of machinery for the mining industry, competition from Chinese manufacturers continued on global markets, while the mines reduced their investment demand. The investments in domestic plants involved mainly replacement and preservation. Both domestic and foreign markets were dominated by aftermarket demand which was related to services, supplies of parts, repairs of machinery and equipment and leasing of combined cutter loaders. Recurring revenue (aftermarket and leases) in this segment increased by PLN 148 million (+25%) year on year to PLN 743 million.
As a result of the war in Ukraine and sanctions, FAMUR ceased its operations on the Russian and Belarusian markets. In March last year, the process of divesting the assets of the segment in Russia began which ended in January 2024 with the sale of 100% shares in the subsidiary OOO Famur.
Sustainable Development Strategy
Environmental, Social and Corporate Governance (ESG) issues represent an important area of the Grenevia Group’s operations. In January 2023, the Sustainable Development Strategy of the Grenevia Group for 2023-2030 was announced. As part of the strategy implementation, the Steering Committee was appointed in the first place to be headed by the president of the management board of Grenevia SA. Subsequent actions include the development of internal ESG procedures and policies and their unification within segments, and the streamlining and improvement of the non-financial data aggregation process within all portfolio companies of the Grenevia Group. The installations of roof solar panels at FAMUR and Elgór+Hansen plants were systematically expanded. An increase in the scale of operation of the photovoltaics segment allowed the economy to avoid a total of 221,000 tons of CO2 emissions in 2022-2023. The operations of the e-mobility segment contributed to the avoidance of approx. 33,000 tons of CO2 emissions in the period from 15 November 2022 to 31 December 2023. In 2023, the share of the Group’s revenue from sources other than the thermal coal sector was 48 percent, an increase of 6% compared to 2022. This increase was achieved mainly due to the Group’s entry into the e-mobility sector as part of a consistently implemented strategy and diversification of business operations towards green transformation.
The Grenevia Group is an active investor integrating and developing business operations in four business segments: large-scale photovoltaics (PV) within Projekt Solartechnik; battery systems for e-mobility and energy storage (e-mobility) as part of IMPACT Clean Power Technology; state-of-the-art solutions for the energy distribution sector (electrical power engineering) based on the Elgór + Hansen company; solutions for the mining and wind energy sectors under the FAMUR brand. The Group’s operations focus on building the value of segments which support the transformation towards a low-emission economy.