Veidekke Asa · OSL:VEI
Veidekke Asa — Q2 2024 Earnings Presentation
22 slides from Veidekke Asa's earnings presentation, Aug 15, 2024
Slide 1: Q2 Second quarter 2024
Q2 Second quarter 2024 15 August 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 12-month rolling, Veidekke employees and sub-contractors 6% 14 12 5% 10 4% 8 3% 6 2% 4 1% 2 0 0% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 20
Slide 3: Highlights Q2 2024
Questions? Email ir@veidekke.no Highlights Q2 2024 • Revenue at NOK 10.8 billion – down 3% from Q2 2023 • Profits and profit margin improved from Q2 2023 • Large order book remains stable at NOK 41.1 billion
Slide 4: Key financial figures
Key financial figures Q2 revenues Q2 profit before tax NOK billion NOK million 11.2 10.8 484 9.9 9.8 9.9 360 391 387 355 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 4
Slide 5: Stable order book
Stable order book High quality project portfolio Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 100 % 48 42 44 38 80 % 40 36 34 32 30 60 % 28 26 24 20 40 % 22 16 18 12 20 % 8 14 4 10 0 0% Jun-22 Jun-23 Jun-24 Jun-22 Jun-23 Jun-24 Jun-22
Slide 6: Solid and diverse order intake
Solid and diverse order intake Of which public projects comprise the bulk Order intake Q2 2024 NOK billion Norway Sweden Denmark 2.4 1.9 1.7 1.5 0.7 0.8 0.5 Residential Commercial Public Rock and Energy, industry, Transportation Road maintenance buildings buildings buildings foundation work water, d
Slide 7: Q2 Results and financial status
Q2 Results and financial status Jørgen Wiese Porsmyr, CFO
Slide 8: Revenues, profits and profit margins
Revenues, profits and profit margins Group and business areas Q2 2024 Q2 2023 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 692 148 4.0% 4 089 164 4.0% Infrastructure Norway 2 817 183 6.5% 2 436 109 4.5% Construction Sw
Slide 9: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 5 5.5% 6% 4.0% 4.5% 4.0% 5% 4.0% 4 245 4% 3 Revenue down 10% – from a high level in Q2 2023 3% 164 165 4.5 150 148 4.1 3.8 • As in the preceding quarter, revenue increased 2 3.7 3.7 2% in the big cities, but decreased in the other regi
Slide 10: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q2 4 25% 24% 10.1% 23% 22% 6.5% 21% 20% 3 4.5% 19% 18% 17% 16% 2.8 15% 2.8 2.7 14% 13% 2.4 2 12% 11% 10% 9% 1 1.8 8% 7% 6% 5% 121 Revenue up 16% compared to Q2 2023 4% 3% 2% 1% 0 0% 4.9% -1% 97 -2% -9.6% -3% -4% 86 • Increase in both
Slide 11: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 2.2% 3% 2.2% 2.0% 2% 2.5 2 2.3 2.0 2.1 2% 1.9 Revenue down 12% from Q2 2023 in local currency 1% • Gothenburg has the biggest drop 1 47 41 42 37 • Mixed performance in the other units 1% -% 0.7% 18 0 0% Q2 23 Q3 23 Q4 23 Q1 24 Q2 24
Slide 12: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 3 7% 5.4% 6% 4.6% 3.7% 4.4% 5% 2 1.8 4% 1.6 Revenue on a par with Q2 2023 in local currency 1.6 1.3 1.2 3% 2% • Stable, strong revenue from all market segments 1 1% 0% -1% -1.1% Profit boost -1 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 -2% Q2 23
Slide 13: Denmark
Denmark Revenues and profit margin Profit before tax 1 16.3% 18% 17% 16% 0.9 15% 14% 0.8 13% 0.8 0.7 12% 7.7% 0.7 8.8% 11% Revenue up 3% from Q2 2023 in local currency 7.0% 10% 9% 8% 118 9.6% 7% 6% 5% 81 62 65 Strong profits and solid profitability 4% 3% 53 2% 1% • Consistently solid project profita
Slide 14: Financial position
Financial position Balance sheet Amounts in NOK million 30 June 2024 30 June 2023 Fixed assets 7 400 7 218 Current assets (excluding cash, cash equivalents and financial investments) 8 979 8 134 Cash, cash equivalents and financial investments 1 158 1 448 Assets 17 537 16 800 Equity 2 380 2 228 Long
Slide 15: Financial position: net interest-bearing position
Financial position Net interest-bearing position NOK million Highlights H1 2024 • Increase in working capital ▪ Normal seasonal variation in the asphalt and civil engineering operations • Some increase in net investments compared to last year (NOK 300 million vs NOK 242 million), primarily related t
Slide 16: Q2 Closing comments
Q2 Closing comments Jimmy Bengtsson, Group CEO
Slide 17: Good visibility
Good visibility Revenue expected to decline somewhat in 2H 2024 Revenue and order intake 12-month rolling, NOK billion Construction 27.3 • Order intake over past 12 months will result in lower activity in 2H 2024 compared to 2H 2023 23.3 • Interest rate developments will be an important influence on
Slide 18: Position in northern Sweden bolstered
Position in northern Sweden bolstered A region of growing strategic and economic importance • With its raw materials industry, Northern Sweden takes on increasing importance in the Swedish economy • Euromining specialises in ore loading and transporting for the Swedish mining industry • The largest
Slide 19: The road to further improvement
The road to further improvement Systematic and step-by-step ● Continued focus on selecting the right projects at the right price in important markets – today and in the future ● Develop close, long-term customer relationships Selectivity Execution New projects at the right On plan or better, with pr
Slide 20: Summary
Summary 1 Stable revenues • Infrastructure growth • Construction decline 2 Improved profit and margins • Infrastructure Norway shows clear improvement • Good project profitability in Construction Husk nytt bilde 3 Stable and strong order book • Solid order intake • Construction activities expected t
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Slide 22: VEIDEKKE
VEIDEKKE