Thank you for joining me in this second half and full year 2020 presentation. I will talk about 3 things in this presentation: 1st, the financial performance of 2020 then I will talk about new contracts we have entered into lately and strategic partnerships we have entered into lately. And I will the last section I will talk about, woah, green, metal as a new potential spin off. Starting off with just give sort of an introduction of who we are. We are a provider of world leading technologies to eliminate pollution, to enhance a circular economy and to mitigate climate change.
We have we are offering sort of a patented unique solutions to turn waste and biomass into CO2 neutral energy. We have technology ready for industry today. It integrates easily to industrial processes and it doesn't depend on large complicated infrastructure for the industry to use our technology. We have, over the years, demonstrated that we have a proven and scalable delivery model. We have delivered technology to the marine industry for many years, and we have a record high order backlog a large installed base with large industry players in a wide range of industries.
That provides recurring business for us. And we have an international footprint, headquartered in Norway with subsidiaries in France, in U. S. And in Poland. So that's sort of the short introduction of who we are.
Going into the the first part of the presentation, the financial and operational headlines 2020. Here are the key takeaways. This is the 5th consecutive year of growth, and we deliver record high performance within Cruise Projects. Our top revenue line ends at €460,000,000 for the group and this is a 21% growth year on year, and we continue our sort of strong performance within the cruise industry newbuild side. An EBITDA from that business here is €71,000,000 and this is sort of a 100% increase compared to 2019.
So that explains how well we are doing. And now that we when we say that we're scalable and we have standardized we see the benefit now that we are able to deliver so strongly within that industry segment. Aftersales is, of course, affected by the pandemic. No EBITDA contribution from that business area in 2020, but looking at 2019, this would have been sort of more than €20,000,000 stronger EBITDA, but still we delivered sort of a double digit EBITDA and within sort of acceptable levels in this period. Gross margin and land based are on par with what we're doing within the cruise industry space, but we are growing that part of our business.
We are adding more resources on to meet the demand we see in many new industry sectors, and that's why in this period, it has sort of a negative contribution on the EBITDA side. Order backlog very strong. When we leave 20 20, €952,000,000 of firm orders with additionally optional contracts for €584,000,000 And this is this provides revenue for us well into 2024, 2025 and creating a good visibility for our business. Very important, we deliver 28 €1,000,000 on pretax result, the profit before tax. This is €34,000,000 better than we did in 20 €1,000,000 better than we did in 2019 where we had sort of a negative €7,300,000 so we are definitely profitable in this business in 2020.
And of course, this slide is just summarizing what I said on the previous slide, 21% top revenue line growth. We have a double digit EBITDA level, and you see the order backlog. And I'm just here to illustrate, we have added on the cruise contracts we have entered into now in the 1st period of 2021 and also what the first deliveries to the plant at Folding that we will build in that we plan to build, how that will sort of these 2 activities on top of what we had on the order backlog when we left 2020, give sort of a visibility into our order book around SEK 1,800,000,000 and that's very good. We're very sort of satisfied with that position. Looking at the segments.
As I said, our strongest segment today is the cruise industry in our new building space, 31% growth on the top revenue line, total €309,000,000 of revenues. That's 67% of the group's revenue in 2020. And look, we deliver sort of an EBITDA at 23%. We have never delivered so strong numbers and it just demonstrates again that we have a successful delivery model towards the marine activities that we also have the plan to replicate and use when we now are moving onshore. Looking at aftersales.
It is for us €53,000,000 It's a breakeven operation last year. We're down from €126,000,000 And of course, evidently, this is due to the fact that the cruise industry voluntarily did shut down their operations in March last year. But still, we it's sort of a breakeven. It's 12% of our revenue, the group revenue. In a normal year, this is more than onethree of our revenues.
And as I said, we had an EBITDA contribution in 2019 of 20 €2,500,000 and this year is no contribution. So you could only imagine how strong we would have delivered for the group if this was not a year of pandemic. Land based. We see growing demand for a while, technology already, of course, reflected in our numbers. This in 2020, we have nearly NOK 100,000,000 NOx of revenues.
We are increasing our capacity towards land based. We are adding more resources. We are structuring that business, standardizing it to become scalable as we are in cruise, and we have some one offs in this period around €8,000,000 so the overall EBITDA is minus 10% in the period, and it's the total share of revenue is 21% within land based, but this is definitely an area we will grow going forward. And I would say, I'm very we are very satisfied and pleased with the contract awards we have had in 2020 within Landbase. We have entered into several milestone contracts within waste valorization and industry decarbonization.
And this brings me to the next part of the presentation, the recent deal flow. This illustrates the 5 latest contracts and deals we have entered into for the business of large impact for us. On 11th February, we entered into an LOI with Betura Energy to deliver technology for their planned production to produce biofuel, bio carbon and CO2 neutral gas from forestry waste. And it's we're showing that we are relevant for these type of companies that wants to take a position to produce this CO2 neutral energy. We in the 3rd February, we entered into a cruise contract.
It's we're all excited that we have sort of we are getting sort of cruise contracts in this period. It's a €60,000,000 contract for Wow to deliver our cleantech to 2 cruise ships to be produced in Europe. It just demonstrates that the cruise industry are very focused on the post pandemic growth. They have maintained their large order book, and we are signing up new orders as we speak. The 2nd February, the 28th January and the 3rd October are milestones for us where we are entering into contracts with Elkem, with ArcelorMittal and with Repsol, and I will sort of explain more about these three contracts on the next slide.
These are large players in industries. These are players that have committed to a CO2 neutral ambition to become CO2 neutral within a certain time, Repsol, an energy company in Europe, ArcelorMittal, the world's largest steel producer and Elkhem, one of the big players within the silicon business. For these clients, Repsol in the, let's say, the oil and petrochemical industry side, Asolo Metals in representing high temperature industries that today have problems to electrify the processes. They need heat. Hence, they are using a substantial amount of fossil based gas.
Elkhem is using bio carbon to produce their silicon, and it explains where we are coming in. With Drexel, we will develop applications to produce CO2 neutral gas from waste and biomass in their infrastructure where they can replace their consumption today of natural gas, Ashlar Mittal, the same on their facility in Rudransh, Luxembourg, where we together will build a plant to produce CO2 neutral gas from waste and biomass an Elkhem with the biocarbon and the agreement that is connected to our start up of the fallen plant where we will produce biocarbon to the metallurgic industry. And the last part here is, of course, looking at our forward strategy and forward outlook. And I would say that what we as a team are focused on is to position us in relation to 2 large trends we see in the market being Circular Economy and Industry Decarbonization. Circular Economy, to enhance Circular Economy by using our technology to convert waste and biomass into valuable commodities.
And if we can sort of use those valuable commodities to hit the other trend, decarbonizing industries. Industries that today are using fossil based energy, using fossil based carbon, that are using fossil based gas because they have processes that they cannot be electrified. On the other side, we have the strong drivers. We see the drivers. Our clients see the drivers.
Policies, the economical ones and technology policies. For example, EU Green Deal makes a change for the industry, it's the green deal of EU to become to make the European economy CO2 neutral by 2,050, means a lot. It pushes the industry towards a green transition on the economical side with taxonomy now kicking in, where companies seize the rationality an incentive to move towards the green transition to get access to capital at a lower cost and of course, they will mitigate the risk of increased CO2 taxation. And of course, last but not least, technology. Technology are today available or becoming more and more available for the industry to decarbonize.
And this is where Huawei is really positioning ourselves and with this sort of having Repsol at the table, having Elkem at the table, having Asolo metal at the table is really an evidence that we are successful in trying now to position our technology within this space. And what are we doing actually? And why have we created Wow Industries that we announced some weeks ago. Wow Industries we'll be the incubator for Wow to roll out Wow technology. We see in new markets that we are entering that there are available biomass, there are available waste streams, there are clients in that space that are looking for how ways to valorize these volumes.
On the other side, there are off takers. There are industry, big industries seeking to decarbonize their operations, finding products renewable having a demand for renewable products. And in these spaces, in these industries, we see that we can take a position by building, owning, operating plants with wild technology and to turn these volumes into valuable commodities and renewables for industries. So the first the Huawei Industries, the first plan within Huawei Industries is to move towards the metallurgic industry, but I would say we are also considering other industries where this build own operate model will work. And of course, the first step we're taking now towards the metallurgic industry underneath Wow.
We have decided to spin off 1 Walgreen Metals. And this company will be we're planning for a separate listing, so meaning that we are spinning that off and distributing the shares to all the existing shareholders of Wow. And while green metals will the business plan is they will produce bio carbon towards the biometallerg Industry, CO2 neutral gas and biofuels, helping that industry vertical to decarbonize. And by doing that, just to see how the value creation will be is that Wow as a group will deliver technology to Walgreen Metals. And just looking at the full plan alone, while Group will deliver technologies in the range of €200,000,000 to €250,000,000 during 2021, 2022.
On the other side, while Green Metals will have the revenue streams from operating these plants, selling the commodities that these facilities will produce. Huawei Industry will remain within Huawei and be the incubator, as I said on the previous slide, for other initiatives build on operate models for new industry verticals. Walgreen Metals, the first project for Walgreen Metals, the fallen plant. We had talked about that earlier. We're now waiting for the final investment decision on that.
It's a process within Enova. We expect to get sort of some positive feedback from Enova in the next months to come. This plant at Folem in Norway will the plan the first step of this will we need to produce 10,000 tonnes annually of biocarbon towards the metallurgic industry and but the facility will allow us to scale up that substantially up to perhaps 100,000 tonnes of bio carbon annually. We have agreements in place to scale up the business at Fulham. We have agreements with Wieken and Lindem on the intake of biomass and demolition wood.
On the offtake. We have as I said earlier, we have the agreement now with Elkje. We have also an agreement made with Vardar to utilize the the CO2 neutral gas from the facility that will be used for district heating at Honefoss. And also, we're now working to explore opportunities to deliver biofuels to the petrochemical industry. So important contracts R in place to accelerate this.
And there's a strong industrial rationale behind it. The market. The metallurgic market is big consumers of fossil based reductants such as MET and pet coke. What we are actually doing here is that we're producing renewable coke that is the CO2 neutral solution for them to decarbonize. And only in Norway, we there's an expected demand for biocarbon around 400,000 tonnes annually up to 2,030.
And the Nordic market is perhaps 4 to 5 times larger. So we're talking up to 2,000,000 tonnes our biocarbon to be produced to replace the 40% of the Nordic consumption of fossil based coke. So these markets, we are tapping into a large market, and we are taking a position in this market to scale up production capacity to meet the demand we definitely see, and this is profitable. And we're showing on the illustration on the right side here, you saw that the first stage the 1st production stage at Falun will provide an EBITDA around €20,000,000 to €30,000,000 and you see it makes sense to scale up rapidly because of the economics in this. And of course, this is the future concept of Wow!
Green Metal. So with this, I would like to conclude concluding remarks. We delivered a strong year, strong performance despite that one of our most important market it has been very affected by the pandemic. We still deliver strong growth, and we're delivering sort of a profitable growth. We are well and we are about to well position us towards the global trends we see within circular economy and industry decarbonization.
And this is creating sort of a strong interest for our technology. And today, we have, I would say, a low hanging fruit for the industry in terms of having available technology that easily can integrate helping big industry to decarbonize. And now with the launch of Wow! Green Metals, we are expanding, driving growth with a new delivery model, either alone or together with partners and basically gearing up for decarbonization as a service. And spinning of wow!
Green Metals, we will accelerate this. We will accelerate the growth for both this new entity and for Voal. And on top of that, we will definitely create more shareholder value. Thank you so much.
Hello, Henrik. Welcome. Please take a seat. And thank you for sharing with us this very interesting presentation with quite a few bits of news. Looking forward to hear you talk more about that.
Thank you.
We will now spend the next 10, 15 minutes together answering questions from our audience. You've probably seen it already, but you can type in your questions under this screen, and then we'll try and answer as many questions as we can within the time frame we have. Some questions have already been logged, and you can continue to post during the entire session. I think what I'd like to do, Henrik, is To start with an observation on my behalf really is that this, I think, is the first presentation I've seen from Wow with absolutely no pictures Of course, cruise ship. What should we read into that?
Don't be fooled by that. Don't be fooled by that. It's an important part of our business, Definitely. Also going forward, and it's we're delivering very strongly within the cruise industry space. So that's it is definitely a large market for us also going forward.
But of course, we see a lot of demand from new industries, And that also sets a new focus, and the presentation also reflects this for sure.
We must talk about the numbers a little bit. As you say, the cruise industry and especially cruise project seems to be delivering Large portion of your EBITDA. You have 2 business areas that seems to be lagging a little bit. When do you think we will see black numbers for Land based and aftersales.
The aftersales, of course, we see strong signs of things Going back, we have a lot of discussions with ship owners preparing for the startup lately, and you see the market is expecting the cruise industry to return. You see how the Royal Caribbean, Carnival and Norwegian Cruise Lines shares have increased on the stock exchange just in the recent 2 weeks. So strong signs of a soon recovery, and we also see that on request in our business. On the other side, I wouldn't say that the land base is definitely not lagging. It's high activities.
And we are working now with large players at the table. We are delivering on the projects we have entered into within this space. And just looking at our forward plan and the initiatives we have to accelerate growth of land. We'll definitely Push that and the activities forward within land based and eventually also the positive numbers.
I think in the presentation you highlighted 3 agreements with 3 large industrial players, Elkem, Alstolormittal and Repsol. What are the common denominators in this in your relation to this?
These technologies, these companies have committed To decarbonize and that's sort of a pathway they have decided to pursue. 2 and of course, they need technology to meet that ambition. So it's of course that We have a relevant technology. And also what's important here is to see that they came to us. They came to us to Because they saw that we had relevant technology, so that's an exciting situation to be in.
But you're also very discussing very concrete projects. We heard about the ArcelorMittal recently announcing plans in Luxembourg.
Yes. And this is a concrete project. Its aims to be started up in 2022 at Rudanj, one of their large facilities in Europe. This large company has more than 70 facilities only in Europe producing crude steel and processing steel. And the concrete project means that and of course, Arstom Mittal themselves announced in January a time line for this project.
So it means that it's very active discussions. But of course, we're looking we're discussing the Daimler Mittal in a larger picture as well because they have committed to decarbonize their operations with 30% within 2,030. That's a tangible target.
So this single project will not make it for them. They need more, right?
But first, for the Rodents plant in Luxembourg, we're talking about sort of there this syngas that we will produce for them will be around 30% represents 30% decarbonization at that facility. But again, they have more than 70 facilities in Europe. And of course, they need to of course, they're working on several projects there, but it needs to they need to look at the deployment of this type of technology in the larger scale.
I think we need to talk about Wow Industries and Wow Green Metals. We have a couple of questions actually already on that topic from the audience. I think you described a situation where You see Wow sort of connecting those industries that have the waste and biomass with those who need sort of Products to deepen our products. Products, yes. But what makes Wow perfect to bridge that?
Why Wow?
It's I would say it's many folded in a way. It's the technology of course And we have the process skills. We have a culture in our business, the yes we can culture, I would Say that that helps us in this direction. We have an entrepreneurial mindset and we have We're how to put it, we're thinking as a ship builder in a way because when you think as a ship builder, you need to think in standardize, you have to standardize your supplies, you have to scale up. And with that sort of competence, and we have demonstrated that within the cruise industry space.
We see that we're capable or taking such position and such position needs to be taken in that industry because the industry have huge demand to go renewable. And that's why we have said this is a strategic choice for us And we are capable of moving in that direction very fast.
So you're saying the replicability or the flexibility to build many Projects and to execute many projects like this, deliver systems and technology to many That's what we're That's basically One of the core elements.
Yes. And that's what we have successfully now done for many years. Everything we do within the marine side is standardized process plants and that's the same type of mythology and thinking you need to apply when you move in towards sort of a large industry because these are large industries with reduced demand and you have to think standardized to move that in that direction.
Well, it's interesting to hear you sort of reflect on this synergy between the shipbuilding or the Marine business or the cruise industry and what you now do on land. You mentioned this before, but it's interesting to hear you put other words on that. How far have you come now in sort of preparations for the full launch of Bio Green Metals?
Of course, the fallen plant is important part of this, and that's sort of a tight the time line. We have to make the final investment decision on that project very soon. But in parallel, we are detailed engineering our projects. As we said, we have all the agreements in place to move forward from an industrial point of view. So that is sort of high activities on that side.
And we are, of course, boarding. We're working to board a new management to work for Walgreen Metals. We need to board people coming from the industry that knows this type of business Because this type of business is different from what we do within Wow.
There's a question from the audience here. How fast, how quickly do you think you will scale up activity at Fulham?
We have in a way the reason why we picked Fulham is that biomass is available at that location. So we have large plans to move swiftly forward there. And as I said, to increase the capacity every 5 to 10 times that we are capable of doing at the facility. And we need to the market itself needs, as we said, more than 400,000 tons annually by 2,030. That means that we need to be there in 2, 3, 4 years from now And that's the ambitions we have.
And we don't see that we have restrictions in having such an ambitious target. We are capable of moving forward.
You say you plan to spin off and share Wow! Green Metals with your shareholders. How will that
be achieved? We're working on that structure, but I think that the most important thing around it is that it's sort of having shares involved today. You have the same. You will have shares in Wow Green Metals.
There's another question here. Where do you intend to list Wow Green Metals? Is this a Euronext Growth company? And will there be a private placement in connection with the listing?
And if so, what
do you expect that to be?
We said We will we aim to list the company before the summer. And we have decided sort of The structure of it and at what list we should do the
the listing on. So there's still some
Yes, that's the ongoing discussions, of course, and preparation for that. And we will, of course, when time is right, we will communicate on that.
There's one viewer who's asked us to or you to elaborate a little bit on the difference between Wow Industries and Wow Green Metals. How would you sort of explain who is doing what and the split between the 2?
The wall industry remains the incubator in wall to work on these type of opportunities because it's not only the metallurgic industry we see this opportunity for build over and operate. While Green Metals will work with sort of build and operate within the metallurgic industry. And that's, as I said, a different type of business. Wow will be the technology provider to Walgreen Metals, but Walgreen Metals will need to be structured as a company that operates process plants and deliver products that meets the quality requirements of the metallurgic industry, whether it's recycled biocarbon or it's gas that, that industry would need gas For high temperature heating or even gas as a reductant, many opportunities with our technology towards So the metallurgic industry that will be the focus on for Walgreen Metals. And Walgreen Metals, It's now has to work on the plan that we have launched to look at how we could scale up the activities in that company because here is a it's important to ensure that Walgreen Metals will be a significant player in the space, meaning that it has sort of a large part of the demand for biocarbon.
I think that it's a question is why not keep Wow! Green Metal under the same roof, so to speak. But from what I understand, you see these 2 companies quite different in terms of culture, one being a technology, Wow and Wow Industries Technology Provider and Solutions Provider, whereas Green Metals is more like a process industry. Is that a way to sort of conceptualize this?
That's a way to see it, yes. While green metal will be a production plant and production plants And that needs sort of industrial thinking to be a commodity A player or a player in the renewable space within the metallurgic industry. So that's a different business model. And of course, it's another it requires another capital structure. It's an asset heavy sort of A way to operate as different from what we're doing in the involve, definitely.
Seems like we're having just one more question. And I think that goes to one of the cliffhangers in your presentation really. You mentioned that there might be other spin Coming later. What should we think is next?
We should be we are we will of course communicate these things as we go forward. But we see definitely we see markets that we are in today where there are such opportunities to take a position with Build Own and Operate. And it's the uniqueness of our technology that we can sort of create value with our technology And producing commodities and energy that is relevant for big industry seeking to decarbonize and that is metallurgic industry is 1, but there are a lot of other industries that we today are working in and we have communicated of being working in and where we see that there's an opportunity also to For this type of similar approach, market approach. There is
actually one very specific question this regard, and that is does VAW Industries consider developing or marketing rather smaller scale technology for city, community waste, smaller sites or smaller plants and pursue that as a separate market. Is that something you
We what the difference is the driver here is good strong financial models, bankable cases. And that is sort of when we see these type of opportunities where you could roll out technology and establish, build and operate that are profitable. You have the support for the banks as we see that we have that is of course where the focus Will be. So and looking at the especially the European market now with the Green Deal, you see how the taxation system, the taxonomy kicks in. You see that it makes sort of from a financial point of view, it's the right step to go Towards renewables.
You have the incentives to go to the renewables. That alone creates sort of bankable cases, strong business models, and it makes sense for us to move in that direction with this type of bill and operate concept.
Thank you very much, Henrik. It sounds like you have a lot on your plate, Flexible, versatile technology and a lot of good business development thinking going on.
So Yes, it's a great period, Ryn. The teams are all And we really look forward to announce more of these exciting things as we go forward.
And we look forward to hearing about that. With that, we are ready to round off. It's been very interesting to listen to your further elaboration from the presentation this morning. We will be back with the next interim report later this spring. Thank you so much for listening.