Norconsult Asa · OSL:NORCO
Norconsult Asa — Q3 2023 Earnings Presentation
37 slides from Norconsult Asa's earnings presentation, Nov 29, 2023
Slide 1: Continued solid performance
Electrification of Trønder and Meråker Railway, Norway DTU –(Matthias Herzog) Campus Risø, Denmark Continued solid performance Third quarter and nine months of 2023. CEO Egil Hogna and CFO Dag Fladby 29 November 2023
Slide 2: Disclaimer
Disclaimer Not for general release, publication or distribution, directly or indirectly in Australia, Canada, Japan, the United States or to US persons or in any other jurisdiction where such distribution would constitute a violation of the relevant laws or regulations of such jurisdiction. This rep
Slide 3: Contents
Photo: Herman Dreyer Contents Highlights Markets and projects Financial presentation Outlook Appendix 29/11/2023 Quarterly presentation - Third quarter
Slide 4: Norconsult was listed on Oslo Børs 10 November 2023
Norconsult was listed on Oslo Børs 10 November 2023 Norconsult was listed on Oslo Børs 10 November 2023 NOK 19 per share, implying market capitalization of approximately NOK 5.7 billion 34% of outstanding share capital sold to new shareholders Broad participation from leading Norwegian insti
Slide 5: Norconsult – Every day we improve everyday life
Norconsult – Every day we improve everyday life 6 200 +130 Our business areas* Sectors Employees Q3 23 Offices 10% 8% Norway Head office 30% Norway Regions 7% Public 2022 Sweden 2022 Denmark Private 15% Renewable Energy 30% Technogarden & Digital * Share of net revenue Our markets Solid financial tr
Slide 6: Q3: Continued solid performance
Photo: Herman Dreyer Q3: Continued solid performance Financial highlights third quarter vs last year Net revenue* 12% growth to NOK 1,705m (1,523) 10% organic growth adjusted for calendar effect Calendar effect of NOK -27m due to one less working day this year Adj. EBITA** Adj. EBITA of NOK
Slide 7: Organisational highlights: The industry's most attractive employer
Organisational highlights: The industry’s most attractive employer 6 200 employees as of end Q3 (Q3 22: 5 600) Third season of the online reality series Rådgiverne Number of FTEs 6 047 (Q3 22: 5 532) Key contract awards motivating factor for retaining employees Important for retaining senior
Slide 8: Acquisitions 2023
Acquisitions 2023 LB Consult (DK) Ingeniørværket (DK) Franck Miljø- og Geoteknik (DK) Planråd (NO) 29/11/2023 Quarterly presentation - Third quarter 8
Slide 9: Markets and projects
Myreskauen housing for people with reduced functional capacity Markets and projects
Slide 10: Market overview: Stable market demand
Market overview: Stable market demand Good demand in the Energy & Industry segment and Infrastructure projects Infrastructure Energy & Industry (water, transport and environment) Buildings & Architecture Continued strong market in Energy & Stable market driven by public infrastructure Continue to se
Slide 11: Cruachan 1 – Unit #3 and #4 upgrade
Cruachan in Scotland Cruachan 1 – Unit #3 and #4 upgrade The Cruachan power plant in Scotland, owned by Drax, consist of 4 reversible pump-turbine units with a combined capacity of 440MW. The power plant plays a crucial role in stabilizing the grid in Scotland. Currently, units 3 and 4 Project name:
Slide 12: Renovation/extension, Vilundabadet
Vilundabadet Illustraton: Mattias Dellmo Renovation/extension, Vilundabadet Vilundabadet in Upplands-Väsby needs a renovation and major extension. Architecture is procured from early sketches to finish in 2027. Several of Norconsult's different competencies are involved, such as landscape, Project n
Slide 13: Storm water management Veum
Storm water management Veum Storm water management Veum The assignment includes updating the preliminary project followed by detailed planning and preparation of tender documentation for execution contracts in the project. For example, this will involve designing new technical Project name: Overvann
Slide 14: Jotun Future Binder
Jotun Research Center Jotun Future Binder Norconsult have been awarded a project to provide engineering consultancy for an upgrade of Jotun’s factory at Gimle in Sandefjord. The assignment is an interdisciplinary project, involving all disciplines within Norconsult. The Project name: Jotun Future Bi
Slide 15: Financial presentation
Highly qualified engineers from Technogarden to Aker Solutions Established “HUB Tromsø” Financial presentation CFO Dag Fladby
Slide 16: Q3 2023: Continued revenue growth and slightly improved profitability adjusted for calendar effects
Q3 2023: Continued revenue growth and slightly improved profitability adjusted for calendar effects Net revenue increased with 12% y-o-y. Organic revenue NOKm Q3 2023 Q3 2022 Change growth of 10%*** Net revenue* 1 705 1 523 182 Calendar effect of NOK -27m due to one less working Adj. EBITA** 108
Slide 17: YTD Q3 2023: Solid revenue growth and slightly improved profitability
YTD Q3 2023: Solid revenue growth and slightly improved profitability Net revenue increased with 14% to NOK 6,161m y-o-y. NOKm YTD Q3 2023 YTD Q3 2022 Change Organic revenue growth of 11%** Net revenue* 6 161 5 383 777 Calendar effect of NOK -34m due to one less working day Adj. EBITA 601 534 67
Slide 18: Solid performance YTD, but significant seasonal variations
Solid performance YTD, but significant seasonal variations Net revenue* Billing ratio +11.9% LTM 2 500 2 359 10 000 80% 2 012 2 109 2 097 2 000 1 793 1 849 8 000 76.2% 1 705 75.1% 1 523 74.3% NOK million 75% 73.9% 73.7% 74.0% 1 500 6 000 72.3% 71.4% 1 000 4 000 70% 500 2 000 0 0 65% Q4 21 Q1 22 Q2 2
Slide 19: Norway Head Office and Norway Regions
Norway Head Office 30% Norway Regions 30% Solid organic growth. Calendar effects compared to same quarter Solid organic growth and improved profitability adjusted for last year was NOK -8m calendar effects (NOK -10m) Organic growth was 11% adjusted for calendar effects Organic growth was 13%
Slide 20: Sweden and Denmark
Sweden 15% Denmark 8% Solid organic growth and improved profitability adjusted for calendar Solid growth in net revenue mainly driven by acquisitions. Calendar effects (NOK -6m) effects compared to Q3 2022 was NOK -2m Organic growth was 16% adjusted for calendar effects No organic growth adj
Slide 21: Renewable Energy and Technogarden & Digital
Renewable Energy 8% Technogarden & Digital 9% Solid organic growth and improved profitability adjusted for Organic growth was 1%, no calendar effect calendar effects (NOK -2m). Organic growth was 22%** Adj. EBITA margin decreased to 11.8% (12.7%) Corrected for calendar effects adj. EBITA mar
Slide 22: Q3 2023: Seasonal variations affects cash from operations
Q3 2023: Seasonal variations affects cash from operations Q3 2023 Q3 2022 Change Cash flow from Operating Activities of NOK -21m (-5) Cash flows from Operating Activities -21 -5 -16 Increased working capital due to revenue growth Cash flows from Investing Activities -4 -13 9 The third quarter
Slide 23: Strong financial position
Strong financial position 30.09.2023 31.12.2022 Non-current assets 2 851 2 732 Cash and cash equivalents and other current financial Cash and equivalents and other current financial assets 1 098 1 343 assets NOK 1,098m Receivables 2 434 2 203 Total assets 6 383 6 278 Net interest-bearing debt (i
Slide 24: Solid orderbook Q3: Good momentum in order intake
Solid orderbook Q3: Good momentum in order intake Selected contracts awarded during the quarter Briskeby tram (NO) Moratunet nursing homes Norconsult has won the consultancy contract for detail design and plans for Moratunet nursing home is to be expanded with 18 new care homes, a new nursing upgrad
Slide 25: Outlook
Ragnhildgade Myreskauen, housing for people with daycare reduced functional center capacity Outlook
Slide 26: Outlook
Lindern skole - Ørnelund Leif Krohn / Oslo Museum Outlook Stable demand within public buildings, energy and industry, and infrastructure Lower activity within the private residential and non-residential building markets The orderbook remains stable at approximately 75 percent of our annual rev
Slide 27: Appendix
Photo: Herman Dreyer Appendix
Slide 28: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Amounts in NOK million Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 FY 2022 Operating revenue 1 914 1 719 6 883 6 032 8 423 Other income 2 -4 6 4 1 External project costs 211 192 728 652 931 Operating revenue and other income after external project costs 1 705 1 523 6 161 5
Slide 29: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Amounts in NOK million ASSETS 30.09.2023 31.12.2022 EQUITY AND LIABILITIES 30.09.2023 31.12.2022 Goodwill 1 029 943 Share capital 6 6 Deferred tax assets 6 4 Treasury shares -1 -1 Other intangible assets 80 70 Share premium 221 221 Property plant and equi
Slide 30: Interim Consolidated Statement of Cash Flows
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS Amounts in NOK million Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 FY 2022 Profit (loss) before tax 104 104 569 509 612 Taxes paid -4 -9 -143 -143 -136 Depreciation, amortization and impairment 20 18 59 54 79 Depreciation right of use asset 96 82 281 243 325
Slide 31: APM - reconciliations
APM - reconciliations Amounts in NOK million Adjusted EBITA and EBITDA Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 FY 2022 Operating profit (loss) (EBIT) 96 106 574 523 626 Depreciation and impairment of tangible assets 111 96 327 285 384 Amortisation and impairment of intangible assets 4 4 13 11 20 EBI
Slide 32: Financial position excl. IFRS 16 effects
Financial position excl. IFRS 16 effects 30.09.2023 31.12.2022 Non-current assets 2 851 2 732 Cash and cash equivalents and other current financial Cash and equivalents and other current financial assets 1 098 1 343 assets NOK 1,098m Receivables 2 434 2 203 Total assets 6 383 6 278 Net interest-
Slide 33: Solid performance YTD, but seasonal variations between quarters
Solid performance YTD, but seasonal variations between quarters Net revenue* Billing ratio Key business drivers +11.9% LTM ▪ Revenues impacted by number of FTE’s, working days, billing rate and billing ratio 2 500 2 359 10 000 80% ▪ Profitability impacted by FTE’s, cost per FTE (salaries), and overh
Slide 34: Long-term financial targets
Long-term financial targets Financial targets Metric Financial targets Comment • Historical total net revenue growth of ~11% from 2012 to 2022 Growth N/A • Over-the-cycle split between organic growth and acquisitions around 2/3 and 1/3, respectively • Expected growth slightly above the market 10% Pr
Slide 35: Quarterly workdays per FTE
Quarterly workdays per FTE Average workdays per quarter1) 66 66 65 65 66 64 60 61 61 61 60 60 60 59 57 56 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 Note: 1) Blended group average workdays per quarter post public holidays and pre vacation days 35
Slide 36: Largest shareholders
Largest shareholders Rank Shareholder Number of Shares Percentage % Country 1 NC-ANSATTES HOLDING AS 65 675 058 21.2 % Norway 2 NORCONSULT ASA 13 791 582 4.4 % Norway 3 CARNEGIE AS 9 968 307 3.2 % Norway 4 The Bank of New York Mellon SA/NV 6 940 000 2.2 % Belgium 5 DANSKE INVEST NORSKE INSTIT. II. 6
Slide 37: Every day we improve everyday life
Every day we improve everyday life