Slide 1: AF Gruppen ASA Q3 2024
AF Gruppen ASA Q3 2024 15 November 2024
Slide 2: Overview
3rd quarter 2024 Overview High activity level with improved profitability in the 3rd quarter Revenue of NOK 7,204 (6,907) million in Q3 and NOK 22,043 (22,152) million year-to-date Earnings before tax of NOK 289 (103) million in Q3 and NOK 496 (408) million year-to-date Profit margin of 4.0% (
Slide 3: Health and Safety
3rd quarter 2024 Health and Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 1.5 10.0 5.0% 8.9 7.9 4.1% 4.0% 8.0 7.2 4.0% 3.8% 1.0 0.8 6.0 3.0% 0.5 0.5 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2021 2022 2023 YTD Q3 24 2021 2022 2023 YTD Q3 24 2021 2022 2023 YTD
Slide 4: Revenues and earnings
3rd quarter 2024 Revenues and earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 700 4.5% 4.0% 8,000 600 4.0% 7,204 6,907 7,000 3.5% 500 6,000 3.0% 5,000 400 2.5% 4,000 300 289 2.0% 1.5% 3,000 1.5% 200 2,000 103 1.0% 100 1,000 0.5% 0 0 0.0% Q3 23 Q4 23 Q1 24 Q2
Slide 5: Return on Capital Employed
3rd quarter 2024 Return on Capital Employed Earnings before tax and interest Average capital employed * Return on capital employed expense * NOK million NOK million 2,000 6,000 40% 5,032 5,000 4,751 1,500 30% 4,000 1,000 892 20% 18.8% 799 3,000 15.9% 2,000 500 10% 1,000 0 0 0% 2020 2021 2022 2023 YT
Slide 6: Cash flow statement
3rd quarter 2024 Cash flow statement NOK million Q3 Q3 YTD YTD Cash flow from operations 2024 2023 2024 2023 EBIT 304 128 542 447 NOK million Depreciation, amortisation and impairment 185 142 514 408 1,552 1,600 Change in net working capital -101 240 285 62 1,400 Taxes paid -24 -41 -142 -193 1,200 1
Slide 7: Net interest-bearing debt and liquidity
3rd quarter 2024 Net interest-bearing debt and liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million 500 1,500 -1,381 -780 1,000 522 0 500 0 -500 -500 -1,000 -780 -1,000 -1,500 -2,000 -1,500 -1,381 -2,500 Q3 23 Q4 23 Q1 24 Q2 24
Slide 8: Balance Sheet
3rd quarter 2024 Balance Sheet Equity share NOK million 30.09.24 30.09.23 31.12.23 Long term debt Equity Non-current assets 8,703 8,242 8,407 Current assets, ex. cash 6,486 6,241 5,894 Cash and cash equivalents 522 526 347 Equity-share*: 19.4% Total assets 15,711 15,009 14,647 (19.8%) Equity 3,051 2
Slide 9: Environment
3rd quarter 2024 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 150,733 (218,291) tonnes YTD in 2024 recycling Recycling rate 77% (78%) YTD in 2024 % Tonnes Tonnes 100 96 94% 60,000 600,000 84 88% 87 86% 80 50,000 500,000 1 40,000 37,44
Slide 10: Business Areas
Business Areas 3rd quarter 2024 Museum of the Viking Age. Photo: AF Gruppen
Slide 11: Civil Engineering: High activity and good profitability
Civil Engineering High activity and good profitability NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 2,353 1,680 6,797 4,636 EBIT 150 129 406 310 EBT 169 135 454 320 EBIT % 6.4% 7.7% 6.0% 6.7% EBT % 7.2% 8.0% 6.7% 6.9% Civil Engineering reports high activity and a good result in Q3 AF Anl
Slide 12: Construction: Increasing order intake
Construction Increasing order intake NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 2,016 2,285 6,499 7,549 EBIT 60 93 219 256 EBT 62 89 225 240 EBIT % 3.0% 4.1% 3.4% 3.4% EBT % 3.1% 3.9% 3.5% 3.2% Construction reports revenue decline of 12% relative to Q3 of last year. AF Bygg Østfold, Strø
Slide 13: Betonmast: Stable activity and improved profitability
Betonmast Stable activity and improved profitability NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 1,061 1,059 3,045 3,382 EBIT 38 19 28 86 EBT 50 25 59 102 EBIT % 3.6% 1.8% 0.9% 2.6% EBT % 4.7% 2.3% 1.9% 3.0% Betonmast maintains activity levels from Q3 of last year Betonmast Asker og Bær
Slide 14: Property: Low sales
Property Low sales NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 4 4 15 20 EBIT -14 -4 -28 -9 EBT -10 0 -16 0 Capital employed 937 792 937 792 An uncertain market sentiment and high interest rates affect sales negatively and contribute to low sales in the quarter. Sales contracts for 22 (5)
Slide 15: Sweden: Continuing low profitability
Sweden Continuing low profitability NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 1,165 1,567 3,927 5,644 EBIT 1 0 4 -135 EBT -3 -4 -6 -141 EBIT % 0.1% 0.0% 0.1% -2.4% EBT % -0.3% -0.2% -0.2% -2.5% Sweden still has large variations in the entities’ performances AF Prefab deliver very good
Slide 16: Energy and Environment: Stable revenue and good result
Energy and Environment Stable revenue and good result NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 383 381 1,109 994 EBIT 24 21 64 51 EBT 23 22 61 56 EBIT % 6.3% 5.6% 5.8% 5.1% EBT % 6.0% 5.9% 5.5% 5.6% Energy and Environment maintains activity levels compared to Q3 of last year and report
Slide 17: Offshore: Higher activity than same quarter last year
Offshore Higher activity than same quarter last year NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 242 208 823 795 EBIT 14 -119 -206 -84 EBT 8 -126 -226 -98 EBIT % 6.0% -56.9% -25.0% -10.6% EBT % 3.2% -60.2% -27.5% -12.3% Aeron has strong revenue growth from Q3 of last year and delivers goo
Slide 18: Considerable order intake after quarter close
3rd quarter 2024 Considerable order intake after quarter close Development in Order Backlog Order Backlog Business Areas NOK million NOK million Offshore Civil 45,000 1,702 Engineering 40,000 Sweden 14,383 36,442 4,518 35,000 Energy and 30,000 Environment 1,186 Order 25,000 backlog 20,000 36,442 15,
Slide 19: Concrete: Trends and outlook
Concrete: Trends and outlook Q3 2024 | Theme presentation Vikingtidsmuseet, Foto: Max Emanuelson
Slide 20: Current situation for concrete
Concrete Current situation for concrete Globally Concrete is one of the most widely used construction materials in the world A considerable source of emissions – estimated 5-7% of global greenhouse gas emissions Norway Concrete is a significant input factor in all construction projects Consi
Slide 21: How do we work with concrete in AF Gruppen?
Concrete How do we work with concrete in AF Gruppen? A wide range of our construction entities have specialised competencies within concrete In total 800 employees We experience increased demand for competance and capacity «Internal forum for concrete» for developing competance, connections and
Slide 22: We have a wide range of projects in AF Gruppen
Concrete We have a wide range of projects in AF Gruppen E39 – AF Anlegg Thune Eureka – Eiqon Spro Havn – Stenseth & RS Blomsterbrua - Consolvo Wind farm – Kanonaden Fylkeshuset – Lab Rock stabilisation – Fjerby Offshore – Rakon
Slide 23: Norway is a leading country in developing robust concrete solutions
Concrete Norway is a leading country in developing robust concrete solutions I NORWAY: DEVELOPMENT OF HIGH- CO2- CONTENT REQUIREMENT STRENGTH CONCRETE Norwegian Concrete Association requires a Norwegian Continental Shelf develops maximum CO2-content/m3 concrete. Three high-strength concrete with up
Slide 24: Input factors and cost allocation in concrete structures
Concrete Most concrete structures have a relatively similar distribution of input factors and cost allocation 100 Water Scarce Resources: Input Factors in Concrete 10-15 % Labor is by far the There is limited largest input factor access to cement in concrete 80 and several of the Loqistics projects
Slide 25: Ongoing significant price pressures in 2024 and beyond
Concrete Ongoing s ignific ant pric e pres s ures in 20 24 and beyond Price development Concrete 2015-2024 • Prices of concrete have increased: Prices have 170 increased 60% from 2015 to 2024 160 • Expected increase in Norwegian CO2 fees: Will 150 increase costs for the industry. Norwegian CO2 fee i
Slide 26: Future challenges
Concrete Future challenges All construction projects include use of concrete - there are no alternative solutions A shortage of input factors is expected in the future New CO2-friendly binders create challenges related to progress and frost resistance Still a considerable source of emissions
Slide 27: Innovation in many areas creates better solutions in the projects
Concrete Innovation in many areas creates better solutions in the projects Tailored solutions Robotised iron binding Measuring Scanning Recycled aggregate Early involvement Rebuild and reuse
Slide 28: Expected future demand
Concrete Expected future demand The demand for concrete is expected to be stable and high in the future Expected increase within construction Stable/growing within civil engineering Reduced access to commodities Eco-friendly binders Replace natural sand with crushed mountain New types of b
Slide 29: Our priorities in the future
Concrete Our priorities in the future Further improve technical competencies Further strengthen innovation Increase productivity Be the customers preferred partner and a leader within concrete Måløybrua. Foto:Foto: Vikingtidsmuseet Consolvo Max Emanuelson
Slide 30: Summary
3rd quarter 2024 Summary NOK million Q3 24 Q3 23 YTD 3Q 24 YTD 3Q 23 Revenues 7,204 6,907 22,043 22,152 EBIT 304 128 542 447 EBT 289 103 496 408 EBIT % 4.2% 1.9% 2.5% 2.0% EBT % 4.0% 1.5% 2.2% 1.8% High activity and improved profitability Strong financial position Order intake: NOK 5,393 (4,07
Slide 31: Thank you for your attention
Thank you for your attention Q4 | 14 February 2025 Dronning Mauds gate 15. Photo: AF Gruppen