Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q1 2021 Earnings Presentation
38 slides from Af Gruppen Asa Class A's earnings presentation, May 11, 2021
Slide 1: Q1 2021 AF Gruppen ASA
11 May 2021 Q1 2021 AF Gruppen ASA
Slide 2: Highlights
1st quarter 2021 Highlights AF Gruppen with good and improved profitability in the first quarter ▪ Revenue: NOK 6,209 million (6,607) in Q1 ▪ Earnings before tax: NOK 245 million (206) in Q1 ▪ Profit margin: 4.0% (3.1%) in Q1 ▪ Cash flow from operations: NOK 205 million (499) in Q1 ▪ Order backlog:
Slide 3: Safety and health
1st quarter 2021 Safety and health Lost-time injury Total recordable injury Reported unwanted Sick leave frequency (LTIF) frequency (TRIF) incident frequency (RUIF) 2,0 12 5 6% 5,2 % 1,5 10 5% 4 1,5 8 3,2 7,0 4% 3 1,0 6 3% 2 4 2% 0,5 1 2 1% 0,0 0 0 0% 2018 2019 2020 YTD '21 2018 2019 2020 YTD 2018 2
Slide 4: Revenues and earnings – quarterly
1st quarter 2021 Revenues and earnings – quarterly Revenues Earnings before tax Profit margin NOK million NOK million Margin 8 000 700 9% 7 000 6 607 8% 6 209 600 6 000 7% 500 6% 5 000 400 5% 4 000 4,0 % 300 4% 3 000 245 3,1 % 206 3% 200 2 000 2% 1 000 100 1% 0 0 0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1
Slide 5: Return on capital employed
1st quarter 2021 Return on capital employed Rolling average last four quarters Capital employed Earnings before tax Return on capital employed (interest expense added) MNOK MNOK 5 000 2 000 60% 4 412 1 533 50% 4 000 1 500 40% 34,8 % 3 000 1 000 30% 2 000 20% Target 500 1 000 10% 0 0 0% 2017 2018 201
Slide 6: Cash flow statement
1st quarter 2021 Cash flow statement NOK million Q1 2021 Q1 2020 2020 EBIT 264 213 1 480 Depreciations, amortization and impairment 136 132 573 Change in net working capital -115 211 -233 Other adjustments / taxes paid -80 -57 -631 Cash flow from operations 205 499 1 189 Net investments -38 -97 112
Slide 7: Net interest-bearing receivables and liquidity
1st quarter 2021 Net interest-bearing receivables and liquidity Net interest-bearing receivables Net available liquidity MNOK MNOK 400 1 200 381 300 305 345 800 368 369 289 200 893 400 764 708 563 561 630 100 0 52 46 -589 -583 -556 -532 -577 -569 0 -400 -100 -800 -426 -433 -422 -401 -386 -383 -200 -
Slide 8: Balance sheet
1st quarter 2021 Balance sheet NOK million 31.03.2021 31.03.2020 31. 12.2020 Non-current assets 7,689 7,877 7,760 Long term debt 1 402 Equity Current assets, ex. 3 553 4,613 4,397 4,394 cash Cash and cash 630 764 708 equivalents Equity ratio Total assets 12,932 13,037 12,862 27,5% Equity 3,553 3,045
Slide 9: Environment
1st quarter 2021 Environment Source separation rate Metal demolished and sorted Recycling environmental parks Waste sorted: 105,369 tonnes (103,336) for recycling Recycling rate 77% (88%) YTD YTD 100% 97% 87% 40 000 38 533 600 000 528 758 84% (86%) 80% 35 000 500 000 30 000 60% 400 000 Regulatory 25
Slide 10: Business areas
Ir Q1 2021 Business areas
Slide 11: Civil Engineering: Good activity and solid profitability
Civil Engineering Good activity and solid profitability Bekkelaget renseanlegg NOK million Q1 2021 Q1 2020 2020 Revenues 1,509 1,170 5,218 EBIT 96 56 314 EBT 94 59 292 EBIT % 6.4 % 4.8 % 6.0 % EBT % 6.2 % 5.0 % 5.6 % ▪ AF Anlegg delivered good results. The operational performance of the unit’s proje
Slide 12: Construction: Good order intake and solid order backlog
Construction Good order intake and solid order backlog NOK million Q1 2021 Q1 2020 2020 Revenues 1,853 2,316 8,684 EBIT 82 123 502 EBT 82 126 513 EBIT % 4.4 % 5.3 % 5.8 % EBT % 4.4 % 5.4 % 5.9 % ▪ The activity level was reduced, and profitability is somewhat weaker than expected ▪ Several units deli
Slide 13: Betonmast: Weak profitability but stable order backlog
Betonmast Weak profitability but stable order backlog NOK million Q1 2021 Q1 2020 2020 Revenues 1,656 1,823 7,862 EBIT 37 44 261 EBT 27 46 252 EBIT % 2.2 % 2.4 % 3.3 % EBT % 1.7 % 2.5 % 3.2 % ▪ Betonmast delivered weak profitability in the quarter ▪ Considerable variation in the results to the Norwe
Slide 14: Property: Good sales
Property Good sales NOK million Q1 2021 Q1 2020 2020 Revenues 6 6 33 EBIT 7 4 135 EBT 7 3 132 Capital employed 897 906 844 ▪ From the beginning of the year, Property has been divided into two operating units, AF Eiendom and LAB Eiendom, to ensure increased local roots ▪ Good sales in the quarter, es
Slide 15: Energy and Environment: Stable activity level and good profitability
Energy and Environment Stable activity level and good profitability NOK million Q1 2021 Q1 2020 2020 Revenues 250 224 962 EBIT 11 2 54 EBT 9 6 52 EBIT % 4.4 % 0.8 % 5.6 % EBT % 3.7 % 2.8 % 5.5 % ▪ AF Decom increased its level of activity and continues to deliver good profitability for both demolitio
Slide 16: Sweden: Stable activity and profitability
Sweden Stable activity and profitability NOK million Q1 2021 Q1 2020 2020 Revenues 959 1 035 4 138 EBIT 39 42 219 EBT 38 41 212 EBIT % 4.1 % 4.0 % 5.3 % EBT % 3.9 % 3.9 % 5.1 % ▪ Sweden maintained stable profitability ▪ Kanonaden delivered strong revenue growth and stable good results ▪ HMB delivere
Slide 17: Offshore: Increased activity and improved results
Offshore Increased activity and improved results NOK million Q1 2021 Q1 2020 2020 Revenues 160 128 672 EBIT 8 -52 -25 EBT 6 -55 -40 EBIT % 4.9 % -40.9 % -3.7 % EBT % 3.7 % -43.3 % -5.9 % ▪ AF Offshore Decom had a significantly higher level of activity and improved profitability compared to same quar
Slide 18: Order backlog: Strong order backlog
Order backlog Strong order backlog MNOK 40 000 Other Offshore 438 33 818 1 460 35 000 Civil Sweden Engineering 3 966 7 140 30 000 Energy and 25 000 Environment 701 20 000 15 000 33 818 (32 492) 10 000 Betonmast 8 073 5 000 0 Construction 2017 2018 2019 2020 2021 12 041 Q1 Q2 Q3 Q4
Slide 19: Environment
May 11th 2021 Environment
Slide 20: Four strategic initiatives for profitable growth
AF Gruppen will increase competitiveness and promote profitable growth through four strategic initiatives Environment Company PROFITABLE GROWTH Customers and suppliers Innovation
Slide 21: Climate and environment
Climate and environment We will reduce our footprint and lead the way in creating socially beneficial business opportunities NEW SOCIALLY BENEFICIAL BUSINESS OPPORTUNITIES REDUCE OUR FOOTPRINT RESOURCE EFFICIENCY AND CIRCULARITY GOOD CLIMATE AND ENVIRONMENTAL MANAGEMENT
Slide 22: New socially beneficial business opportunities
New socially beneficial business opportunities Our vision: Clearing up the past, building for the future
Slide 23: Clearing up the past, building for the future
CLEARING UP THE PAST, BUILDING FOR THE FUTURE At AF Miljøbase Vats we have: ▪ Prepared steel for recycling the equivalent of 27 Eiffel Towers ▪ Contributed towards saving 283,500 tonnes of CO2, the equivalent of 40% of the annual emissions of all construction machinery in Norway
Slide 24: Clearing up the past, building for the future
CLEARING UP THE PAST, BUILDING FOR THE FUTURE Our recycling centres operate rather like bottle deposits for natural resources. ▪ Green innovation in practice ▪ We have the expertise and services required for helping our customers to adopt a circular economy ▪ The recycling rate for the year was 86%
Slide 25: Clearing up the past, building for the future
CLEARING UP THE PAST, BUILDING FOR THE FUTURE By mapping and implementing energy-efficient and renewable solutions, AF has: • Delivered energy efficient solutions to more than 2 million m2 of building stock in public buildings • Contributed to producing 300 GWh annually. This corresponds to the cons
Slide 26: Technology - also a catalyst for climate benefits
Technology - also a catalyst for climate benefits ▪ Investments in early-stage start-ups ▪ Software that streamlines traditional working methods ▪ More efficient ways to solve tasks ▪ Positive effect for climate and environment
Slide 27: Reduce our footprint
Reduce our footprint In order to achieve our long-term climate and environmental ambitions, we will increase our knowledge about our greenhouse gas emissions and waste production
Slide 28: Carbon footprint: halve relative emissions by 2030
STRATEGIC INITIATIVES In order to achieve our long-term climate and environmental ambitions, we will increase our knowledge about our greenhouse gas emissions CARBON FOOTPRINT In line with the Paris Agreement, AF Gruppen will reduce its relative greenhouse gas emissions by 50% by 2030 100 ▪ Halve re
Slide 29: Early involvement and logistics planning can produce great benefits
EARLY INVOLVEMENT AND LOGISTICS PLANNING CAN PRODUCE GREAT BENEFITS Statistics Norway's statistics on mass withdrawals in Norway ▪ 2.6 million tonnes of lightly contaminated mass ▪ 10 million tonnes of pure mass and blasted rock ▪ Reduction will lead to major environmental benefits
Slide 30: Resource efficiency and circularity
Resource efficiency and circularity Limited access to resources and development trends in society requires the development of new and sustainable solutions.
Slide 31: Circular economy: halve non-recycled waste by 2030
STRATEGIC INITIATIVES In order to achieve our long-term climate and environmental ambitions, we will increase our knowledge about our waste production CIRCULAR ECONOMY AF Gruppen will halve the amount of waste materials that are not recycled or reused by 2030, and will also contribute towards a grow
Slide 32: Good climate and environmental management
Good climate and environmental management If we are to achieve the goals we have set, we are dependent on having good climate and environmental management throughout the organisation, all the way down from senior management to our projects.
Slide 33: Good climate and environmental management
GOOD CLIMATE AND ENVIRONMENTAL MANAGEMENT
Slide 34: Awareness of exploiting our role as a builder and contractor
AWARENESS OF EXPLOITING OUR ROLE AS A BUILDER AND CONTRACTOR • • • •
Slide 35: Our strategy is taking external drivers into account
CLIMATE AND ENVIRONMENT Our strategy is taking external drivers into account Circularity and reuse EU Taxonomy Climate neutrality CEEQUAL Environmental New cooperation Sustainable innovation Increased national focus certifications
Slide 36: Climate accounts and measurements 2020
Environment Climate accounts and measurements 2020
Slide 37: Summary
1st quarter 2021 Summary NOK million Q1 2021 Q1 2020 2020 Revenues 6,209 6,607 27,025 EBIT 264 213 1 480 EBT 245 206 1 447 EBIT % 4.2 % 3.2 % 5.5 % EBT % 4.0 % 3.1 % 5.4 % ▪ Good profit margin ▪ Strong financial position ▪ High order intake ▪ Order backlog: NOK 33,818 million (32,492 million) Photo:
Slide 38: Thank you for your attention
Thank you for your attention Q2 2021 August 27th 2021