Veidekke Asa · OSL:VEI
Veidekke Asa — Q3 2022 Earnings Presentation
20 slides from Veidekke Asa's earnings presentation, Nov 9, 2022
Slide 1: Q3 Third quarter 2022
Q3 Third quarter 2022 9 November 2022 Jimmy Bengtsson, Group CEO | Jørgen Wiese Porsmyr, Group 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, Veidekke employees hired staff and sub-contractors 6% 14 12 5% 10 4% 8 3% 6 2% 4 1% 2 0 0% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 c-2 2
Slide 3: Highlights Q3 2022
Highlights Q3 2022 • Revenues and profits on a par with a year ago • Majority of the group produces solid results • Large order book with good profitability 3
Slide 4: Key financial figures
Key financial figures Q3 revenues Q3 pre-tax profit NOK billion NOK million 700 10 600 8 500 6 400 9.5 9.3 9.6 300 9.0 4 530 545 505 200 417 2 100 0 0 1 1 1 1 2019 2020 2021 2022 2019 2020 2021 2022 1 Historical figures (2019–2020) have been restated to reflect the spin-off of the property developme
Slide 5: The group's large order book maintained
The group’s large order book maintained Commercial buildings’ share of the portfolio has increased Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 100 % 44 48 44 40 80 % 40 36 32 60 % 36 28 24 20 40 % 32 16 12 28 20 % 8 4 24 - 0% Sep-20 S
Slide 6: Large addition of contracts with commercial clients
Large addition of contracts with commercial clients ...in Gothenburg, Copenhagen, Trondheim og central eastern Norway Elgiganten Jönköping (NOK 652 mill.) Geely B46 (NOK 431 mill.) Kvarteret, block 2 (NOK 248 mill.) Construction Sweden, BRA (Gothenburg) Construction Sweden, BRA (Gothenburg) Construc
Slide 7: Q3 Results
Q3 Results Group and segments Jørgen Wiese Porsmyr, Group CFO
Slide 8: Revenues, profits and profit margins
Revenues, profits and profit margins Group and business areas Q3 2022 Q3 2021 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 097 123 4,0% 3 005 117 3,9% Infrastructure Norway 2 815 301 10,7% 2 777 325 11,7% Construction
Slide 9: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 3.9% 4 5% 4.0% 3.4% 4.0% 4.0% 3 4% 139 128 123 117 3% 108 Stable level of activity 2 3.5 3.2 3.0 3.2 3.1 • Revenue up 3% over Q3 2021 2% 1 1% Profitability marginally improved over previous year 0 0% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21
Slide 10: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q3 11.7% 4 15% 10.7% 14% 13% 12% 229 3 5.5% 6.2% 11% 10% 2 2.8 9% 8% 212 7% 6% 1 5% 4% 183 3% 2.8 2.4 1.7 2.5 Revenues on a par with preceding year 119 2% 1% 0 0% -1% -2% 96 • Solid level of activity in civil engineering -3% -1 -4% -
Slide 11: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 5% 2 4% 49 1.8 43 1.9 2.1 2.3 3% 2.5 Revenues up 4% from Q3 2021 in local currency 34 2.7% 30 • Increase related to BRA in Gothenburg 1 2% 1.9% • Revenues dropped in Stockholm and Malmö 1.4% 1.4% 1% 11 0 0.6% 0% Q3 21 Q4 21 Q1 22 Q2 22
Slide 12: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 5% 3.9% 5.0% 4.9% 2 4.0% 4% 3% 1.2 Revenues boosted 19% from Q3 2021 in local currency 2% 1.1 1.3 1.0 1.4 1% 1 0% Stable profits and margin -1% -0.9% • Profit improvement in industrial operations -1 -2% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22
Slide 13: Denmark/Hoffmann
Denmark/Hoffmann Revenues and profit margin Profit before tax 1 12% 11.9% 11% 8.5% 10% 70 8.0% 8.0% 9% 7.0% 8% 0.7 53 Revenue up 9% from Q3 2021 in local currency 7% 50 6% 45 5% 0.6 0.6 0.4 0.5 4% 31 Margin remains high 3% 2% • Consistently solid project profitability 1% 0 0% Q3 21 Q4 21 Q1 22 Q2 22
Slide 14: Financial position
Financial position Balance sheet Amounts in NOK million 30 September 2022 30 September 2021 Fixed assets 6 399 6 272 Current assets (excluding cash, cash equivalents and financial investments) 8 797 7 428 Cash, cash equivalents and financial investments 2 685 3 880 Assets 17 881 17 579 Equity 2 600
Slide 15: Financial position
Financial position Highlights year to date Change in net interest-bearing assets NOK million • Payment of dividends of NOK 945 million • Normal seasonal fluctuations in asphalt and aggregates operations • Operational cash flow remains relatively weak in the Swedish operations • A good cash flow can
Slide 16: Q3 Closing comments
Q3 Closing comments Jimmy Bengtsson, Group CEO
Slide 17: Veidekke is well positioned
Veidekke is well positioned Streamlined contractor 1 • Continuous focus on improvement • Flexible and capital-light business model Improvements implemented 2 • Selectivity in line with strategy and uncertainty management • Project profitability improved and risk reduced Strong financial position 3 •
Slide 18: Operational flexibility in an uncertain world
Operational flexibility in an uncertain world Selectivity, capacity and cost structure Geographical spread Serves various markets Flexible cost structure Other operating costs Payroll Materials Subcontractors • Demand varies between • The public and private markets • Project deliveries account geogr
Slide 19: Closing comments
Questions? Email ir@veidekke.no Closing comments • • Majority of the group produced solid results • Demanding situation, in an uncertain market with volatile commodity prices • Veidekke is in a strong position, with a large order book, a flexible business model and considerable financial latitude 19
Slide 20: Takk for
Takk for 2 0