Veidekke Asa · OSL:VEI
Veidekke Asa — Q4 2023 Earnings Presentation
24 slides from Veidekke Asa's earnings presentation, Feb 8, 2024
Slide 1: Q4 Fourth quarter 2023
Q4 Fourth quarter 2023 8 February 2024 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 7% 14 6% 12 5% 10 4% 8 6 3% 4 2% 2 1% 0 0% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 c-
Slide 3: Highlights
Questions? Email ir@veidekke.no Highlights • Revenue NOK 12.1 billion – up 12% on Q4 2022 • Profit before tax up 22%, adjusted for capital gain in Q4 2022 • Stable, high quality order book • Revenue increase and solid profits for the year 2023 • Proposed dividend of NOK 7.90/share for 2023
Slide 4: Key financial figures
Key financial figures Q4 revenues Q4 profit before tax NOK billion NOK million 14 700 12 600 10 500 8 400 6 12.1 300 622 603 10.3 10.8 10.2 4 200 391 393 2 100 0 0 2020 2021 2022 2023 2020 2021 2022 2023 4
Slide 5: Stable, high quality order book
Stable, high quality order book 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% Dec-21 Dec-22 Dec-23 Dec-21 Dec-22 Dec-23 Dec-21 Dec-22 Dec-23 Con
Slide 6: Broad order intake; public sector dominance
Broad order intake; public sector dominance Order intake Q4 2023 NOK billion Construction segments Infrastructure segments 4.0 2.0 1.5 0.9 0.6 0.6 0.3 Residential Commercial Public Energy, water Road maintenance buildings buildings buildings Civil engineering and drainage Transportation contracts No
Slide 7: Veidekke is building the green shift
Veidekke is building the green shift 2023 projects Nordre Gate 12 Metroselskapet Hestnestunnelen Sustainability focus Waste and materials Materials consumption Space Head office Asphalt factory Cutting CO2 emissions Circular concrete Hydrogen 7
Slide 8: Q4 Results and financial status
Q4 Results and financial status Jørgen Wiese Porsmyr, CFO
Slide 9: Revenues, profits and profit margins
Revenues, profits and profit margins Group and business areas Q4 2023 Q4 20221 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 4 463 245 5.5 % 3 863 172 4.5 % Infrastructure Norway 2 683 132 4.9 % 2 530 189 7.5 % Constructi
Slide 10: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 5 5.5% 6% 4.5% 3.4% 4.0% 4.5% 5% 4 245 4% 3 High activity, as in previous 2023 quarters 3% 172 164 165 4.5 3.9 4.0 4.1 136 • Revenue increase of 16% on Q4 2022 2 3.7 2% • Effect from high order intake in 2022 1 1% 0 0% Q4 22 Q1 23 Q2 2
Slide 11: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q4 184 4 25% 24% 10.1% 23% 22% 7.5% 21% 20% 3 4.5% 19% 18% 17% 16% 15% 2.8 2.7 14% 13% 2.4 2 12% 11% 10% 4.9% 9% 8% 7% 1.4 1 6% 2.5 103 99 5% Revenue on a par with Q4 2022 4% 3% 2% 1% 0 0% -1% -2% -3% -4% • Stable revenue in civil en
Slide 12: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 5% 2.6 4% 41 2.5 37 2 2.2 2.3 2.0 3% Revenue down 10% on Q4 2022 in local currency 2% • Gothenburg-based BRA increased their activities 1 0.7% 2.0% 18 18 1.6% • Residential segment has seen a considerable drop 0.5% 1% 10 0.7% 0 0% Q4
Slide 13: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 3 11.1% 12% 10% 1.8 8% 1.7 2 1.6 2% revenue increase from Q4 2022 in local currency 6% 1.3 1.2 5.4% 4% • High activity in large parts of the business 1 3.7% 4.6% 2% 0% Robust profits and improved profitability in Q4 -1 Q4 22 -0.7% Q1
Slide 14: Denmark
Denmark Revenues and profit margin Profit before tax 1 16.3% 18% 17% 16% 15% 0.8 14% 118 0.8 0.8 13% 0.7 12% 7.7% 0.7 11% Revenue down 18% from Q4 2022 in local currency 10.7% 7.0% 10% 9% 8% 83 9.6% 65 62 7% 55 6% 5% Strong results and solid profitability 4% 3% 2% • Consistently robust project profi
Slide 15: Financial position
Financial position Balance sheet Amounts in NOK million 31 December 2023 31 December 2022 Fixed assets 7 317 Current assets (excluding cash, cash equivalents and financial investments) 7 906 Cash, cash equivalents and financial investments 2 989 Assets 18 212 Equity 3 099 Long-term debt 2 380 Short-
Slide 16: Financial position
Financial position Change in net interest-bearing assets NOK million Highlights Q4 2023 • Strong seasonal development in working capital • Otherwise only minor changes from Q3 Highlights YTD 2023 • Strong project liquidity • Settlement of shares in Gothenburg-based subsidiary BRA of approx. NOK 640
Slide 17: Proposed dividend of NOK 7.90 per share for 2023
Proposed dividend of NOK 7.90 per share for 2023 Corresponds to 100% payout ratio Ordinary dividend NOK per share 12 140% ● Proposed dividend: NOK 7.90 120% 10 100% 8 ● Earnings per share: NOK 7.9 7.75 7.90 80% 7.00 6 5.75 60% ● Dividend ratio: 100% 4 40% 2 2.50 20% - 0% 2019 2020 2021 2022 2023 Ord
Slide 18: Q4 Closing comments
Q4 Closing comments Jimmy Bengtsson, Group CEO
Slide 19: Key financial figures, year 2023
Key financial figures, year 2023 Revenue Profit before tax Profit margin NOK billion NOK million Percent 50 1800 5,0 % 1 554 1 337 1500 40 1 342 4,0 % 3.5 % 3.6% 3.6 % 1200 1 134 3.0% 30 3,0 % 900 43.1 20 38.7 2,0 % 36.6 38.1 37.6 596 1.6% 600 10 1,0 % 300 0 0 0,0 % 1 2 1 2 2019 2020 2021 2022 2023
Slide 20: Still considerable potential
Still considerable potential Norway Sweden Denmark Construction Infrastructure Construction Infrastructure Construction 2019 2.7% 1.8% 1.7% -3.3% 7.2% 2021 3.8% 5.1% 1.9% 3.1% 8.5% 2023 4.4% 3.6%1 1.2% 3.6% 10.0% 20
Slide 21: The road to further improvement
The road to further improvement According to plan and step-by-step Selection Implementation New projects priced right In accordance with plans in the current market or better, with risk management Cost base Improvements Organisation To turn tide in weak units and joint costs and maintain in strong u
Slide 22: Summary
Summary 1 Growth and increased profitability in Q4 • Strong revenue growth in several units • Provides profit increase in NOK 2 Solid and stable order book • Strong order intake in a demanding market • Good predictability over next 12 months Husk nytt bilde 3 Entire profits to be distributed as divi
Slide 23: (II gui
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Slide 24: Revenues, profits and profit margins
Revenues, profits and profit margins Year 2023 20231 20222 Amounts in NOK million Revenue Profit before tax Profit margin Revenue Profit before tax Profit margin Construction Norway 16 225 710 4.4 % 13 370 530 4.0 % Infrastructure Norway 9 325 222 2.4 % 9 583 496 5.2 % Construction Sweden 9 078 106