Veidekke Asa · OSL:VEI
Veidekke Asa — Q3 2023 Earnings Presentation
21 slides from Veidekke Asa's earnings presentation, Nov 8, 2023
Slide 1: Q3 Third quarter 2023
Q3 Third quarter 2023 8 November 2023 Jimmy Bengtsson, Group CEO | Jørgen Wiese Porsmyr, CFO Questions? Email ir@veidekke.no
Slide 2: Occupational health and safety
Occupational health and safety Our primary priority Number of serious injuries Sickness absence 12-month rolling, Veidekke employees, hired staff Veidekke employees and sub-contractors 6% 14 12 5% 10 4% 8 3% 6 2% 4 1% 2 0 0% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 c-2 2
Slide 3: Highlights Q3 2023
Questions? Email ir@veidekke.no Highlights Q3 2023 • Revenue NOK 10.4 billion – up 9% on Q3 2022 • Profit before tax up 10% – profit margin remains stable • Order book down 10% from the previous quarter, to NOK 40.7 billion • In a challenging market, Veidekke has a good overview of activity for the
Slide 4: Key financial figures
Key financial figures Q3 revenues Q3 profit before tax NOK billion NOK million 12 700 600 10 500 8 400 6 10.4 300 601 9.5 9.3 9.6 505 530 545 4 200 2 100 0 0 1 1 2020 2021 2022 2023 2020 2021 2022 2023 1 Historical figures (2020) have been restated to reflect the spin-off of the property development
Slide 5: Solid order book in a more challenging market
Solid order book in a more challenging market Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 100 % 48 42 44 38 40 80 % 36 34 32 60 % 30 28 24 26 20 40 % 22 16 18 12 20 % 8 14 4 10 0 0% Sep-21 Sep-22 Sep-23 Sep-21 Sep-22 Sep-23 Sep-21 Sep
Slide 6: Broad intake of orders in the quarter
Broad intake of orders in the quarter Share of orders from private clients remains high Order intake Q3 2023 NOK billion Construction segments Infrastructure segments 1.6 1.0 0.9 0.7 0.6 0.2 Residential Commercial Public Energy, water and buildings buildings buildings Civil engineering drainage Tran
Slide 7: Q3 Results and financial status
Q3 Results and financial status Jørgen Wiese Porsmyr, CFO
Slide 8: Revenues, profits and profit margins
Revenues, profits and profit margins Group and business areas Q3 2023 Q3 2022 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway Infrastructure Norway Construction Sweden Infrastructure Sweden Denmark/Hoffmann Total business a
Slide 9: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 5 4.5% 4.5% 5% 4.0% 4.0% 3.4% 4 4% 172 164 165 3 3% 136 High activity 123 3.9 4.0 4.1 • Revenues up 19% on Q3 2022 2 2% 3.7 3.1 (of which acquisition accounts for 5% ) 1 1% • Effect of high order intake in 2022 0 0% Q3 22 Q4 22 Q1 23 Q
Slide 10: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q3 4 25% 24% 229 221 10.1% 23% 10.7% 7.5% 22% 21% 20% 3 4.5% 19% 18% 17% 16% 183 2.8 15% 2.8 14% 13% 2.4 2 12% 11% 10% 9% 8% 7% 1.4 1 6% 2.5 5% Revenues on a par with Q3 2022 4% 3% 2% 1% 119 0 0% -1% -2% -3% 96 -4% • Drop in civil en
Slide 11: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 5% 2.6 4% 49 2 1.8 2.2 2.3 2.0 3% 41 Revenues up 9% in local currency from Q3 2022 37 2.7% 2% • Activity boost in BRA, Gothenburg 1 0.7% 2.0% 1.6% 18 • Significant decline in the residential segments 0.5% 1% 10 0 0% Q3 22 Q4 22 Q1 23
Slide 12: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 11.1% 12% 10% 2 1.7 1.6 8% 1.3 1.2 1.2 Revenue up 9% in local currency from Q3 2022 6% 4% 4.9% • Increase linked to high production and expansion 1 4.6% 3.7% 2% of ongoing projects 0% -1 -0.7% -2% Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22
Slide 13: Denmark
Denmark Revenues and profit margin Profit before tax 1 10.7% 12% 7.7% 9.6% 11% 7.0% 10% 83 8.0% 0.8 0.8 0.8 9% 65 8% 0.7 0.7 62 Revenues dropped 10% in local currency 7% 6% 53 55 from Q3 2022 5% 4% 3% 2% High profit margin 0 1% 0% Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 • Consist
Slide 14: Financial position
Financial position Balance sheet Amounts in NOK million 30 Sept. 2023 30 Sept. 2022 Fixed assets 7 173 Current assets (excluding cash, cash equivalents and financial investments) 9 345 Cash, cash equivalents and financial investments 1 735 Assets 18 253 Equity 2 591 Long-term debt 2 274 Short-term d
Slide 15: Financial position
Financial position Change in net interest-bearing assets NOK million Highlights Q3 2023 • Normal seasonal development in operational cash flow, with somewhat higher working capital in Asphalt • Otherwise only minor changes from Q2 Highlights YTD 2023 • Strong project liquidity in the Norwegian const
Slide 16: Q3 Closing comments
Q3 Closing comments Jimmy Bengtsson, Group CEO
Slide 17: Challenging market
Challenging market But a good overview over the next year Order book NOK billion 43.7 40.7 40.1 37.7 • Low general demand for residential and private commercial buildings • Interest rates and inflation are decisive factors • Solid demand for large infrastructure projects 23.7 24.6 24.9 26.8 • We wil
Slide 18: Focus on the things we can influence
Focus on the things we can influence Diversified and distributed Flexible cost structure Selectivity and portfolio ● Handle various geographies and ● Large share of costs are related ● Selectivity and market markets with unique drivers to project deliveries adaptation ● Adjust capacity to demand ● F
Slide 19: Summary
Summary 1 Growth and stable profitability in Q3 • Strong revenue boost in several segments • Profit increase, measured in NOK 2 Solid order book • Lower order intake in a challenging market • Good overview over the next year Husk nytt bilde 3 Focus on improvement • Selectivity in line with strategy
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Slide 21: Revenues, profits and profit margins
Revenues, profits and profit margins Per 30 Sept. 2023 30 Sept. 2023 30 Sept. 2022 Amounts in NOK million Revenue Profit before tax Profit margin Revenue Profit before tax Profit margin Construction Norway 11 762 465 4.0 % 9 507 358 3.8 % Infrastructure Norway 6 641 90 1.3 % 7 053 307 4.4 % Construc