Veidekke Asa · OSL:VEI
Veidekke Asa — Q1 2023 Earnings Presentation
21 slides from Veidekke Asa's earnings presentation, May 11, 2023
Slide 1: Q1 First quarter 2023
Q1 First quarter 2023 11 May 2023 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 6% 14 12 5% 10 4% 8 3% 6 2% 4 1% 2 0 0% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 c-2 2
Slide 3: Highlights Q1 2023
Questions? Email ir@veidekke.no Highlights Q1 2023 • NOK 9.5 billion revenue – up 13% on Q1 2022 • E39 dispute settled • Underlying profits and margin on a par with a year ago • Maintains strong order book of NOK 43.1 billion
Slide 4: Key financial figures
Key financial figures Q1 revenues Q1 profit before tax NOK billion NOK billion 12 40 20 28 10 0 -20 -37 8 -55 -40 6 -60 -116 9.5 -80 4 8.4 8.3 8.4 -110 -100 -120 2 -140 0 -160 1 2 1 2 2020 2021 2022 2023 2020 2021 2022 2023 1 Historical figures (2020) have been restated to reflect the spin-off of th
Slide 5: The group maintains a strong order book
The group maintains a strong order book Increase in commercial buildings, while residential segment declines Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 100 % 44 48 44 40 80 % 40 36 32 60 % 36 28 24 20 40 % 32 16 12 28 20 % 8 4 24 0 0
Slide 6: High order intake
High order intake Both private and public clients 1 4 Vestfold/Telemark East Feios power plant Infra Norway Infra Norway NOK 807 million NOK 500 million 2 5 Volvo STL AE Kallerud student housing Constr. & Infrastr. Sweden Construction Norway 4 5 NOK 1 500 million NOK 137 million 3 6 3 6 1 Nygatakvar
Slide 7: Q1 Results
Q1 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 Q1 2023 Q1 2022 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 977 136 3.4% 3 196 108 3.4% Infrastructure Norway1 1 407 -303 -21.5% 1 715 -149 -8.7% Construct
Slide 9: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 5 4.5% 5% 3.4% 4.0% 4.0% 3.4% 4 4% 172 3 3% 136 Activity boost across the business 108 128 123 3.9 4.0 • 24% revenue increase over Q1 2022 2 2% 3.2 3.2 3.1 • Effect of order intake in 1H 2022 1 1% 0 0% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1
Slide 10: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q1 4 25% 24% 23% 61 51 6.2% 10.7% 7.5% 22% 21% 14 20% 3 19% 18% 17% 16% 2.8 15% 14% 2 13% 12% 11% 10% 9% 8% -110 7% 1.4 1 6% 2.5 5% 1.7 2.5 Revenues down 18% from Q1 2022 4% 3% 2% 1% 0 0% -8.7% -1% -2% -3% -4% • Reduced activity in t
Slide 11: Asphalt – status at the start of 2023 season
Asphalt – status at the start of 2023 season • Q1 deficit increased (-245 MNOK vs. -211 MNOK) • Season preparations and training activities • Overall cost inflation and financial costs • 2023 national & county roads tender rounds generated a solid foundation • Comprises 1/3 of total asphalt market •
Slide 12: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 5% 2.6 4% 49 2 2.3 1.8 2.2 2.1 3% 43 Revenues on a par with Q1 2022 2.7% 2% 30 • Increase related to operations in Gothenburg 1 0.7% 1.9% 18 • Significant drop in the Stockholm and Malmö 1.4% 0.5% 1% 10 residential segment 0 0% Q1 22
Slide 13: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 11.1% 12% 10% 2 1.7 8% 1.4 1.2 1.2 Revenue up 18% on Q1 2022 in local currency 6% 1.0 3.9% 4% 4.9% • Increase related to high production in 1 2% individual projects 0% • Low season in parts of the business -1 -0.9 -0.7% -2% Q1 22 Q2
Slide 14: Denmark
Denmark Revenues and profit margin Profit before tax 1 10.7% 12% 11% 8.5% 10% 83 8.0% 9% 0.8 0.8 7.0% 7.0% 8% 0.7 Revenue increased 62% on Q1 2022 in local currency 7% 6% 53 55 5% 45 • High production in several larger projects 0.4 0.5 4% 3% 31 2% 1% High profit margin 0 Q1 22 Q2 22 Q3 22 Q4 22 Q1 2
Slide 15: Financial position
Financial position Balance sheet Amounts in NOK million 31 March 2023 31 March 2022 Fixed assets 7 136 Current assets (excluding cash, cash equivalents and financial investments) 7 595 Cash, cash equivalents and financial investments 2 820 Assets 17 552 Equity 2 926 Long-term debt 2 400 Short-term d
Slide 16: Financial position
Financial position Highlights Q1 2023 Change in net interest-bearing assets NOK million Operating cash flow • Improved project cash flow in the Norwegian construction business Investments • BRA earnout payment of approx. NOK 640 million. Veidekke retains 70% ownership stake The settlement of the E39
Slide 17: Q1 Closing comments
Q1 Closing comments Jimmy Bengtsson, Group CEO
Slide 18: Diversified, flexible and selective
Diversified, flexible and selective NOK 43 billion order book provides solid visibility Diversified and distributed Flexible cost structure Selectivity and portfolio ● Different geographies and ● Large share related to ● Selectivity and market markets with unique drivers project deliveries adaptatio
Slide 19: Construct Sweden – clear potential for improvement
Construct Sweden – clear potential for improvement Different starting points require different actions Stockholm–Uppsala: losses on residential projects • Turnaround ongoing in a challenging market • Selectivity and rebalancing against other market segments Gothenburg: strong position • Solid positi
Slide 20: Summary
Summary 1 Stable order intake • Robust order book maintained • Lower activity in certain regions 2 Turnaround and improvements • Asphalt operation in Norway • Construction operation in Stockholm and Uppsala 3 Profitability targets maintained • Selectivity in line with strategy • Constant improvement
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