Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q1 2024 Earnings Presentation
30 slides from Af Gruppen Asa Class A's earnings presentation, May 15, 2024
Slide 1: AF Gruppen ASA Q1 2024
AF Gruppen ASA Q1 2024 15 May 2024 AF Anlegg rehabilitating Nesjødammen for Statkraft Energi. Photo: Hans Fredrik Asbjørnsen
Slide 2: Overview: Improved results and stable order backlog
1st quarter 2024 Overview Improved results and stable order backlog ▪ Revenue of NOK 7,187 (7,393) million in Q1 ▪ Earnings before tax of NOK 186 (13) ▪ Profit margin of 2.6% (0.2%) ▪ Cash flow from operations of NOK 128 (-24) ▪ Order intake of NOK 5,472 (9,296) million in Q1 ▪ Order backlog of NOK
Slide 3: Health and Safety
1st quarter 2024 Health and Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 2.0 10.0 5.0% 4.5% 7.9 4.1% 8.0 7.0 4.0% 1.5 6.0 3.0% 1.0 0.8 0.8 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2021 2022 2023 Q1 24 2021 2022 2023 Q1 24 2021 2022 2023 Q1 24 Number of lost-
Slide 4: Revenues and Earnings
1st quarter 2024 Revenues and Earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 700 4.0% 8,000 7,393 600 3.5% 7,187 7,000 3.0% 500 2.6% 6,000 2.5% 5,000 400 2.0% 4,000 300 1.5% 3,000 186 200 2,000 1.0% 100 0.5% 1,000 0.2% 13 0 0 0.0% Q1 23 Q2 23 Q3 23 Q4 23 Q1
Slide 5: Return on Capital Employed
1st quarter 2024 Return on Capital Employed Earnings before tax and interest Average capital employed Return on capital employed expense * NOK million NOK million 2,000 6,000 40% 5,032 5,009 5,000 1,500 30% 4,000 977 19.5% 1,000 799 3,000 20% 15.9% Target 2,000 500 10% 1,000 0 0 0% 2020 2021 2022 20
Slide 6: Cash Flow Statement
1st quarter 2024 Cash Flow Statement Cash flow from operations NOK million Q1 2024 Q1 2023 2023 EBIT 201 15 749 NOK million Depreciation, amortisation and impairment 156 131 576 1,600 1,552 Change in net working capital -158 -63 675 Taxes paid -58 -81 -470 1,400 Other -13 -27 22 1,200 1,000 Cash flo
Slide 7: Net Interest-bearing Debt and Liquidity
1st quarter 2024 Net Interest-bearing Debt and Liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million 500 1,500 -570 1,000 -974 0 500 348 -500 0 -570 -500 -1 000 -1,000 -974 -1,500 -1 500 -2,000 -2 000 -2,500 Q1 23 Q2 23 Q3 23 Q4
Slide 8: Balance Sheet
1st quarter 2024 Balance Sheet Equity share NOK million 31.03.24 31.03.23 31.12.23 Long term debt Non-current assets 8 543 7 859 8 407 Equity Current assets, ex. cash 6 146 6 643 5 894 Cash and cash equivalents 348 677 347 Equity-share*: 21.9% Total assets 15 038 15 180 14 647 (22.8%) Equity 3 288 3
Slide 9: Environment
1st quarter 2024 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 44,096 (125,160) tonnes in 2024 recycling Recycling rate 77% (78%) in 2024 % Tonnes Tonnes 100 97 % 92 % 60,000 600,000 86 % 88 % 89 % 86 % 80 50,000 500,000 40,000 37,443
Slide 10: Business Areas
Business Areas 1st quarter 2024 10 Älgkullen Wind Park. Photo: AF Gruppen
Slide 11: Civil Engineering: Very High Level of Activity and Good Result
Civil Engineering Very High Level of Activity and Good Result NOK million Q1 24 Q1 23 2023 Revenues 2,044 1,451 6,776 EBIT 116 77 550 EBT 131 78 572 EBIT % 5.7% 5.3% 8.1% EBT % 6.4% 5.4% 8.4% ▪ Civil Engineering increases revenues by 41% compared to the same quarter last year and reports a good resu
Slide 12: Construction: Improved Profitability and Solid Order Intake
Construction Improved Profitablity and Solid Order Intake NOK million Q1 24 Q1 23 2023 Revenues 2,203 2,591 10,182 EBIT 64 51 396 EBT 66 46 378 EBIT % 2.9% 2.0% 3,9% EBT % 3.0% 1.8% 3,7% ▪ Construction has a revenue decrease of 15% and improved profitability compared to the corresponding quarter las
Slide 13: Betonmast: Reduced Level of Activity and a Negative Result
Betonmast Reduced Level of Activity and a Negative Result NOK million Q1 24 Q1 23 2023 Revenues 1,005 1,206 4,553 EBIT -20 34 34 EBT -11 40 58 EBIT % -2.0% 2.8% 0,7% EBT % -1.1% 3.3% 1,3% ▪ Betonmast has a revenue decrease of 17% compared to the same quarter last year and a negative result for the q
Slide 14: Property: Low Sales and Uncertain Market Sentiment
Property Low Sales and Uncertain Market Sentiment NOK million Q1 24 Q1 23 2023 Revenues 6 10 27 EBIT -7 -1 -20 EBT -3 1 -8 Capital employed 870 678 818 ▪ A challenging property market with high interest has contributed to low sales. Sales contracts for 19 (20) residential units were signed in the qu
Slide 15: Sweden: Revenue Decline and Break-Even Result
Sweden Revenue Decline and Break-Even Result NOK million Q1 24 Q1 23 2023 Revenues 1,361 1,927 7,501 EBIT 2 -162 -152 EBT 0 -163 -160 EBIT % 0.1% -8.4% -2,0% EBT % 0.0% -8.5% -2,1% ▪ Sweden has a revenue decline of 29% compared to the corresponding quarter last year and a weak result in the 1st quar
Slide 16: Energy and Environment: Revenue Growth and a Good Result
Energy and Environment Revenue Growth and a Good Result NOK million Q1 24 Q1 23 2023 Revenues 338 287 1 417 EBIT 17 11 90 EBT 17 13 96 EBIT % 5.1% 3.7% 6,3% EBT % 5.1% 4.4% 6,8% ▪ Energy and Environment increased revenues by 18% compared to the same quarter last year, and reports a good result in th
Slide 17: Offshore: Increased Level of Activity this Quarter
Offshore Increased Level of Activity this Quarter NOK million Q1 24 Q1 23 2023 Revenues 295 244 1 082 EBIT 14 18 -124 EBT 7 16 -139 EBIT % 4.7% 7.2% -11,5% EBT % 2.3% 6.4% -12,9% ▪ Offshore has increased its level of activity compared to the same quarter last year ▪ Aeron maintains a high level of a
Slide 18: Stable Order Backlog
1st quarter 2024 Stable Order Backlog Order Backlog Business Areas NOK million Offshore Civil 45,000 1,297 Engineering 40,275 Sweden 40,000 16,604 4,672 35,000 Energy and 30,000 Environment 1,258 Order 25,000 backlog 20,000 40,275 15,000 Betonmast 5,539 (41,668) 10,000 5,000 0 2021 2022 2023 2024 Co
Slide 19: Energy: Q1 2024 Theme presentation
Construction City. Foto: Eirik Førde Energy Q1 2024 | Theme presentation 19 From Livsvitenskapsbygget, photo: Eirik Førde, Catchlight
Slide 20: Energy and Environment: Good Growth and Profitability
Energy and Environment Good Growth and Profitability All numbers: Q1 2024 REVENUE RESULTS SAFETY - HSE 17 EBIT 338 NOK million H1-value NOK million 5,1 EBIT % 1,1 REVENUE AND ORDER BUSINESS UNITS BACKLOG • AF Energi Enaktiva AF Energija Baltic • AF Decom Rimol Miljøpark Nes Miljøpark Jølsen Miljøpar
Slide 21: AF Energi Delivers Energy-efficient and Industrialised Solutions
Energy AF Energi Delivers Energy-efficient and Industrialised Solutions that Society Needs Rehabilitation Renewable energy Energy hubs Guaranteed results Technical projects Build and operate Engineering Industralisation Consultation Plan and design Prefabrication Experts 21
Slide 22: Broad Project Portfolio with Diversified Customer Groups
Energy Broad Project Portfolio with Diversified Customer Groups COMMERCIAL BUILDINGS AIRPORTS HOSPITALS PROJECT CUSTOMER PROJECT CUSTOMER PROJECT CUSTOMER Møller Bil Møller Eiendom Oslo Airport Gardermoen Avinor Radiumhospitalet Helse Sør-Øst RHF HOTELS HOUSING UNIVERSITIES PROJECT CUSTOMER PROJECT
Slide 23: Life Science Building
Energy Life Science Building Norway’s largest university building at 97,500 square meters with a overall cost limit of NOK billion 12.5. ▪ Project value NOK million 680. ▪ Social mission Facilitating interdisciplinary collaboration to solve major social challenges within health and environment. ▪ Ex
Slide 24: Radiumhospitalet
Energy Radiumhospitalet Radiumhospitalet is Norway’s leading cancer hospital with the country’s first proton therapy center. ▪ Project value NOK million 90. ▪ Social mission Contribute to better treatment options in Norway, with functional and energy- efficient solutions. ▪ Execution Establish energ
Slide 25: The Big Picture: Development of Future Energy Sectors
Energy The Big Picture: Development of Future Energy Sectors Bioenergy is a preferred renewable energy source and a central part of future 5 % of energy use Replace coal and energy solutions as in Norway oil fossil fuels are phased out and district heating systems are expanded. Prioritised support R
Slide 26: New Area: Bioenergy
Energy New Area: Bioenergy ETA Norge AS is Norway’s leading supplier of bioenergy ▪ Environmentally friendly ▪ No emission of greenhouse gases Bioenergy is a preferred renewable energy source and ▪ Efficient resource utilisation ▪ Versatile (complements solar/wind/district heating) is a central part
Slide 27: Solution Combining Renewable Energy Sources
Energy Solution Combining Renewable Energy Sources RECYCLING SEWER DATA CENTERS BIO WATER GROUND SUN
Slide 28: Our Curiosity Moving Forward
Energy Our Curiosity Moving Forward ▪ Energy and environment-related services ▪ Solution for reducing energy consumption ▪ Further develop competencies in sustainable and functional solutions that provide value ▪ Efficient and industrialised project implementation EPC-project in AF Energi . Foto: AF
Slide 29: Summary
1st quarter 2024 Summary NOK million Q1 24 Q1 23 2023 Revenues 7,187 7,393 30,530 EBIT 201 15 749 EBT 186 13 700 EBIT % 2.8% 0.2% 2,5% EBT % 2.6% 0.2% 2,3% ▪ Improved results ▪ Strong financial position ▪ Order intake: NOK 5,472 (9,296) million ▪ Stable order backlog: NOK 40,275 (41,668) million ▪ T
Slide 30: Thank you for your attention
Thank you for your attention Presentation of Q2 30 August 2024 AF Decom decommissioning the Earth Observatory in Ny-Ålesund. Photo: Dag S. Roland