Afry Ab Class B · OMXSTO:AFRY
Afry Ab Class B — åf — Investor Day (September 2005)
29 slides from Afry Ab Class B's investor day presentation, Sep 29, 2005
Slide 1: The ÅF-Group
The ÅF-Group Jonas Wiström, President & CEO CMD, September 29th 2005 1
Slide 2: Agenda
Agenda New ÅF Financials Market challenges & Strategy 2
Slide 3: Our Mission
Our Mission We make our client’s businesses… …more profitable …environmentally adapted …and safer
Slide 4: Listed technical consultants
Listed technical consultants Company Sales (MSEK) Employees WS ATKINS plc (GB) 13,086 14,000 ALTRAN GROUP (FR) 12,443 17,000 ARCADIS (NL) 7,671 8,827 FUGRO (NL) 7,574 7,160 GRONTMIJ (NL) 4,615 4,010 WSP Group (GB) 3,944 4,970 JAKKO PÖYRY Group (FI) 3,754 4,697 MOUCHEL PARKMAN (GB) 3,619 4,312 SWECO
Slide 5: ÅF world wide
ÅF world wide Own offices Assignments after 2003 5
Slide 6: The previous ÅF
The previous AF 6 Innovation by experience
Slide 7: The new ÅF in brief
The new ÅF in brief Division Expertise Sales Employees Solutions for construction and property management industries. Infrastructure projects. Solutions for pulp and paper industry, energy and environment, industrial automation etc. Product development, business support and shared processes systems,
Slide 8: Financials
Financials 8 Innovation by experience
Slide 9: Profit/loss per quarter and rolling 12-month figures
Profit/loss per quarter after net financial items and rolling 12-month figures in millions of SEK 140 120 Profit/loss per Q Rolling 12-mth profit/loss 100 80 60 40 20 0 '2001-Q1 Q2 Q3 Q4 2002-Q1 Q2 Q3 Q4 2003-Q1 Q2 Q3 Q4 2004-Q1 Q2 Q3 Q4 2005-Q1 2005-Q2 -20 -40 -60 9
Slide 10: Sensitivity analysis
Sensitivity analysis Change Effect on earnings Factor (all other factors unchange) SEK/share (before tax) Capacity utilisation +/–1% 4.05 Hourly rate +/–1% 2.90 Payroll costs +/–1% 2.20 Operating Costs +/–1% 0.60 Number of employees +/–1% 0.10 10
Slide 11: Capacity utilisation
Capacity utilisation (invoiced-time ratio) 2000-2005 74 June June June 72 June June 70 June 68 66 64 A A A A A A J J J J J O O O O O 00 01 02 03 04 05 J J J J J J 11
Slide 12: Financial Summary
Financial Summary (in millions of SEK) Jan–Jun 05 2004 2003 Operating income, in millions of SEK 1,217 2,160 1,995 Profit after net financial items, in millions of SEK 61 33 47 Profit margin, percent 5,0 1.5 2.3 Employees (FTEs) incl. Associated companies 2,724 2,647 2,599 Equity/assets ratio, perce
Slide 13: Balance sheet 30 June 2005
Balance sheet 30 June 2005 (in millions of SEK) (adjusted: after divestment of HQ) 31/12 31/12 Assets 2004 Liabilities 2004 Intangible assets 118 108 Equity 551 387 Building and land 0 131 Minority shareholdings 2 4 Equipment 95 95 Accounts payable, incl. accruals 177 157 Payroll-related liabilities
Slide 14: Division – Infrastructure
Division – Infrastructure Our offer: Consulting services, methods and solutions, ensuring optimum function in the socio-economic and industrial infrastructure Objectives: Become a leading player in the Nordic market in all our business areas Strategy: Offer outsourcing possibilities, enter int
Slide 15: Division – Infrastructure
Division – Infrastructure Trends: Strong demand in road and railway due to public cash injections, recovery in telecom and installations. Consolidation, increasing international competition Clients include: Main competitors: Carl Bro, Ramböll, SWECO, WSP 15
Slide 16: Division – Process
Division – Process Our offer: Consulting services throughout the entire project chain, to the pulp & paper industry, energy intensive industries and others such as pharmaceutical, food and automotive industries Objectives: Become a market leader in our sectors. Today a global leader in pulp & pa
Slide 17: Division – Process
Division – Process Trends: Strong demand in pulp & paper in South America and Asia. Postponed investments in Finland. Recovery in energy intensive sector. Demand related to the general economic growth Clients include: Main competitors: Jaakko Pöyry internationally. Local niche consultants 17
Slide 18: Division – System
Division – System Our offer: Product development, business support and shared processes systems and IT services Objectives: Improve profitability, become # 1 or 2 in segments in which the division operates in Sweden Strategy: Taking on large assignments in growing from today’s 275 emloyees to
Slide 19: Division – System
Division – System Trends: Slightly growing assignments during 2005 but market still characterized by overcapacity and price pressure. Globally continuing outsourcing to lowcost countries Clients include: Main competitors: Cap Gemini, HiQ, Epsilon, IFS, Intentia, Teleca, Tieto Enator, Sigma, Se
Slide 20: Subsidiary – Kontroll/Inspection & Testing
Subsidiary – Kontroll/ Inspection & Testing Our offer: Inspection, testing, calculation, certification and training services Objectives: Remain a strong player in the Nordic market for technical inspections Strategy: Be a strong player and the main driving force in the Nordic market. Internati
Slide 21: Subsidiary – Kontroll/Inspection & Testing
Subsidiary – Kontroll/ Inspection & Testing Trends: One out of two market dominants in Sweden, deregulated in 1995. Further deregulation is to be expected in the rest of Europe. Ongoing consolidation process Clients include: Main competitors: Det Norska Veritas, Force Technology 21
Slide 22: Globalisation
Globalisation 22
Slide 23: Globalisation (1)
Globalisation (1) Our clients in industry are transferring investments outside Western Europe Production – development How does this affect ÅF ? Growth outside Western Europe 23
Slide 24: Globalisation (2)
Globalisation (2) Low-price competition from India, the Baltic states, China How does this affect ÅF? Growth in Poland, the Baltic states and the Czech Republic. Establishing a presence in South America and Asia Cost is rapidly gaining in importance 24
Slide 25: Globalisation (3)
Globalisation (3) Consolidation among our clients Consolidation within our own operations => ÅF must grow 25
Slide 26: Our Vision
Our Vision Profitability target of SEK 100,000/employee and year Grow sales to MSEK 5,000 by 2010 Become # 1 or 2 in each market in our fields of expertise Being the spearhead in the technical consulting industry by introducing methods giving the concept “value added” a new dimension to our
Slide 27: M & A Strategy
M & A Strategy Infrastructure: Nordic and Baltic Region Size: 5-800 employees Process: Eastern Europe, South America, Asia Size: 5-200 employees System: Sweden, Finland Size: 5-500 employees ÅF-Kontroll: Nordic and Baltic Region Size: 5-100 employees 27
Slide 28: A strong brand
A strong brand Market image; The survey is based on replies from 610 randomly selected decision-makers in companies with over 50 employees. 28
Slide 29: Agenda 2005
Agenda 2005 Improved profitability Top-line growth Stability and profitability for Systems Division 29