Veidekke Asa · OSL:VEI
Veidekke Asa — Q2 2022 Earnings Presentation
22 slides from Veidekke Asa's earnings presentation, Aug 18, 2022
Slide 1: Q2 Second quarter 2022
Q2 Second quarter 2022 18 August 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 12-month rolling, 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 Q2 2022
Highlights Q2 2022 • Profit margin increased in four of five business areas • Weak results in Construction Sweden. Challenges in the Asphalt operation • The group’s highest-ever order book, after strong order intake • Signed LOI to acquire Constructa Entreprenør AS in Bergen 3
Slide 4: Key financial figures
Key financial figures Q2 revenues and profits Q2 revenues Q2 pre-tax profit NOK billion NOK million 500 12 400 9 300 6 9.9 200 391 9.5 9.9 9.8 360 338 355 3 100 0 0 1 1 2 1 1 2019 2020 2021 2022 2019 2020 2021 2022 1 Historical figures (2019–2020) have been revised to reflect the spin-off of the pro
Slide 5: Strong order intake in the quarter and highest-ever order book
Strong order intake in the quarter and highest-ever order book Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 40 100 % 48 44 40 80 % 36 36 32 60 % 28 32 24 20 40 % 16 28 12 20 % 8 4 24 0 0% Jun-20 Jun-21 Jun-22 Jun-20 Jun-21 Jun-22 Jun-2
Slide 6: Large increase in contracts with public clients
Large increase in contracts with public clients …and in residential and commercial projects that are based on strong, longstanding customer relationships Infrastructure Public buildings Commercial + residential buildings Order intake Q2: NOK 5.0 bill. Order intake Q2 : NOK 3.7 bill. Order intake Q2
Slide 7: Q2 Results
Q2 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 Q2 2022 Q2 2021 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 214 128 4.0% 3 564 138 3.9% Infrastructure Norway 2 523 155 6.2% 2 459 136 5.5% Construction Sw
Slide 9: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 3.9% 3.9% 4 5% 4.0% 3.4% 4.0% 3 4% 138 139 128 117 3% 108 10% drop in revenues compared to Q2 2021 2 3.6 3.5 3.0 3.2 3.2 • Primarily related to commercial buildings in Oslo 2% 1 1% Profitability of the project portfolio increased 0 Q2
Slide 10: Acquisition of Constructa
Acquisition of Constructa To boost Veidekke’s position in Bergen region Letter of intent to acquire 100% of shares in Constructa Entreprenør AS – a solid and well-reputed construction contractor Together, Veidekke Construction and Constructa will be Bergen’s largest contractor, with 350 employees an
Slide 11: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q2 11.7% 4 15% 121 14% 13% 12% 3 5.5% 5.5% 6.2% 11% 10% 9% 8% 2 7% 6% 5% 1 4% 2.5 2.8 2.4 1.7 2.5 3% 71 Revenues increased 3% over Q2 2021 2% 0 1% 0% 80 -1% -2% 65 • Revenue boost in Civil engineering. Drop in Asphalt -3% -1 -4% -8.7
Slide 12: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 5% 4% 72 2 3.3% 3% Revenues increased 7% from Q2 2021 1.9 2.3 43 2.2 2.5 2.1 in local currency 1 2% 34 1.9% 30 • Drop in Stockholm and Malmö 1.4% 1.4% 1% 11 • Increase related to BRA in Gothenburg 0 0.6% 0% Q2 21 Q3 21 Q4 21 Q1 22 Q2
Slide 13: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 5% 3.9% 5.0% 23.7% 4.0% 4% 3% 19% revenue increase since Q2 2021 2% 1.1 1.1 1.3 1.0 1.4 in local currency 1% 1 0% • Large parts of the business contributed to the increase -1% -1 -0.9% -2% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4
Slide 14: Denmark/Hoffmann
Denmark/Hoffmann Revenues and profit margin Profit before tax 1 12% 11.9% 11% 8.5% 10% 70 8.0% 9% 7.0% 7.0% 8% Revenues on a par with Q2 2021 7% 50 6% 45 5% 37 0.5 0.6 0.6 0.4 0.5 4% 31 3% Margins remain high 2% 1% • Consistently strong project profitability 0 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 0% Q2 21
Slide 15: Financial position
Financial position Balance sheet Amounts in NOK million 30 June 2022 30 June 2021 Fixed assets 6 446 6 292 8 170 7 670 2 379 3 206 Assets 16 996 17 168 2 155 2 297 2 375 3 062 12 465 11 809 16 996 17 168 13% 13% 37% 60% 2 002 2 494 1 Includes both continuing operations and operations sold as of 1 Se
Slide 16: Financial position
Financial position Highlights 1H 2022 Change in net interest-bearing assets NOK million • Payment of dividends of NOK 945 million • Normal seasonal fluctuations in Asphalt and Aggregates • Weak operational cash flow in the Swedish business units Change in Net cash flow 31 Dec 21 EBITDA working capit
Slide 17: Q2 Closing comments
Q2 Closing comments Jimmy Bengtsson, Group CEO
Slide 18: Clear signs of improvement
Clear signs of improvement Improved margin in four of five business areas Construction Norway • Margin improvement in line with plan • Profitability boost in the project portfolio Infrastructure Norway • Strengthened positions in important markets Hoffmann • Challenging in Construction Sweden • High
Slide 19: Well positioned in an uncertain world
Well positioned in an uncertain world 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 po
Slide 20: Closing comments
Closing comments • • The group’s highest-ever order book, after strong order intake in the quarter • Situation with a more uncertain market and volatile commodity prices • Profitability boost in project portfolio and strong financial position provide a good starting point 20
Slide 21: Takk for
Takk for 2 1
Slide 22: Revenues, profits and profit margins
Revenues, profits and profit margins First half 2022 First half 2021 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 6 410 235 3.7% 7 035 251 3.6% Infrastructure Norway 4 237 6 0.1% 3 922 4 0.1% Construction Sweden 4 386 73