Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q4 2024 Earnings Presentation
31 slides from Af Gruppen Asa Class A's earnings presentation, Feb 14, 2025
Slide 1: AF Gruppen ASA Q4 2024
AF Gruppen ASA Q4 2024 14 February 2025 Construction City. Photo: Bård Gudim
Slide 2: Overview: Solid results and strong order intake
4th quarter 2024 Overview Solid results and strong order intake ▪ Revenue of NOK 8,595 (8,378) million in Q4 and NOK 30,638 (30,530) million for the full year ▪ Earnings before tax of NOK 589 (292) million in Q4 and NOK 1,085 (700) million for the full year ▪ Profit margin of 6.9% (3.5%) in Q4 and 3
Slide 3: Health and safety
4th 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% 4.1% 8.0 4.0% 1.5 6.9 6.2 6.0 3.0% 1.0 0.8 4.0 2.0% 0.5 0.5 0.2 2.0 1.0% 0.0 0.0 0.0% 2021 2022 2023 2024 Q4 24 2021 2022 2023 2024 Q4 24 2021 2022 202
Slide 4: Revenues and earnings
4th quarter 2024 Revenues and earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 8,595 700 7.0% 6.9% 8,378 8,000 600 589 6.0% 7,000 500 5.0% 6,000 5,000 400 4.0% 3.5% 4,000 292 300 3.0% 3,000 200 2.0% 2,000 100 1.0% 1,000 0 0 0.0% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q
Slide 5: Return on capital employed
4th 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 4,816 5,000 1,500 30% 1,197 4,000 24.8% 1,000 799 3,000 20% 15.9% Target 2,000 500 10% 1,000 0 0 0% 2020 2021 202
Slide 6: Strong cash flow statement
4th quarter 2024 Strong cash flow statement Cash flow from operations NOK million Q4 2024 Q4 2023 2024 2023 EBIT 607 302 1,149 749 Depreciation, amortisation and impairment 187 169 701 576 NOK million Change in net working capital 415 612 700 675 Taxes paid -155 -277 -298 -470 2,500 2,217 Other 27 4
Slide 7: Net interest-bearing receivables and liquidity
4th quarter 2024 Net interest-bearing receivables and liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million 99 400 1,500 200 99 1,000 -641 1,033 0 500 -200 0 -400 -500 -600 -1,000 -641 -800 -1,500 -1,000 -2,000 Q4 23 Q1 24 Q2 24
Slide 8: Balance sheet
4th quarter 2024 Balance sheet Equity share NOK million 31.12.24 31.12.23 Non-current assets 8,451 8,407 Long term debt Equity Current assets, ex. cash 5,519 5,894 Cash and cash equivalents 1,034 347 Equity-share*: 23.3 % Total assets 15,004 14,647 (21.9 %) Equity 3,489 3,203 Long term debt 1,537 1,
Slide 9: Environment
4th quarter 2024 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 234,969 (287,588) tonnes in 2023 recycling Recycling rate 77% (78%) in 2023 % Tonnes Tonnes 100 96% 95% 60,000 600,000 84% 88% 87% 86% 80 50,000 500,000 40,000 37,443 400,0
Slide 10: Business areas
Business areas 4th quarter 2024 10 Campus Kristiansund. Photo: Eirik Førde
Slide 11: Record-high annual revenue and excellent result
Civil Engineering Record-high annual revenue and excellent result NOK million Q4 24 Q4 23 2024 2023 Revenues 2,793 2,141 9,590 6,776 EBIT 249 240 655 550 EBT 269 253 723 572 EBIT % 8.9% 11.2% 6.8% 8.1% EBT % 9.6% 11.8% 7.5% 8.4% ▪ Civil Engineering increases revenues by 30% compared to the same quar
Slide 12: Good profitability and strong order intake
Construction Good profitability and strong order intake NOK million Q4 24 Q4 23 2024 2023 Revenues 2,382 2,633 8,881 10,182 EBIT 118 141 337 396 EBT 126 138 351 378 EBIT % 5.0% 5.3% 3.8% 3.9% EBT % 5.3% 5.2% 4.0% 3.7% ▪ Construction reports a good result despite reduced activity. AF Byggfornyelse, A
Slide 13: Growth and excellent profitability
Betonmast Growth and excellent profitability NOK million Q4 24 Q4 23 2024 2023 Revenues 1,322 1,171 4,367 4,553 EBIT 92 -53 120 34 EBT 104 -44 163 58 EBIT % 7.0% -4.5% 2.8% 0.7% EBT % 7.9% -3.7% 3.7% 1.3% ▪ Betonmast delivers an excellent result in Q4. Betonmast Oslo, Trøndelag, Romerike, Røsand, In
Slide 14: Low residential sales
Property Low residential sales NOK million Q4 24 Q4 23 2024 2023 Revenues 7 7 23 27 EBIT -11 -11 -39 -20 EBT -9 -7 -25 -8 Capital employed 846 818 846 818 ▪ AF Eiendom has sold its share of the residential project Bekkestua Have and LAB Eiendom has sold their share of the commercial property Banevei
Slide 15: Significantly improved profitability
Sweden Significantly improved profitability NOK million Q4 24 Q4 23 2024 2023 Revenues 1,472 1,857 5,399 7,501 EBIT 75 -16 79 -152 EBT 71 -19 65 -160 EBIT % 5.1% -0.9% 1.5% -2.0% EBT % 4.8% -1.0% 1.2% -2.1% ▪ Improved profitability despite lower activity levels ▪ Kanonaden, AF Prefab i Mälardalen, A
Slide 16: Stable activity and excellent profitability
Energy and Environment Stable activity and excellent profitability NOK million Q4 24 Q4 23 2024 2023 Revenues 401 423 1,510 1,417 EBIT 30 39 93 90 EBT 29 40 90 96 EBIT % 7.4% 9.2% 6.2% 6.3% EBT % 7.1% 9.5% 5.9% 6.8% ▪ Energy and Environment maintains activity levels compared to the same quarter last
Slide 17: Reduced activity and weak result
Offshore Reduced activity and weak result NOK million Q4 24 Q4 23 2024 2023 Revenues 258 288 1,081 1,082 EBIT 5 -40 -201 -124 EBT -9 -42 -236 -139 EBIT % 2.0% -14.0% -18.6% -11.5% EBT % -3.6% -14.4% -21.8% -12.9% ▪ Offshore has reduced activity levels by 10% compared to the same quarter last year an
Slide 18: Solid order intake of NOK 12,505 million this quarter
4th quarter 2024 Solid order intake of NOK 12,505 million this quarter Development in order backlog Order backlog business breas NOK million Offshore Civil 45,000 1,753 Engineering 40,351 40,000 Sweden 16,433 4,856 35,000 Energy and 30,000 Environment 1,194 Order 25,000 backlog 20,000 40,351 15,000
Slide 19: Civil Engineering – large projects
Civil Engineering – large projects Q4 2024 | Theme presentation Illustration: E6 Roterud–Storhove
Slide 20: Countrywide civil engineering business
Civil Engineering – large projects Countrywide civil engineering business Revenue (2024) Earnings before taxes Safety – HSE (2024) (2024) 723 EBT NOK million 9,590 NOK million 0.4 LTI1-rate 7.5 EBT margin % Revenue (NOK million) EBT (NOK million) LTI1-rate 9,590 2.0 6,776 723 6,002 5,919 1.7 1.6 572
Slide 21: Areas of business within Civil Engineering
Civil Engineering – large projects Areas of business within Civil Engineering Segments ▪ Roads and infrastructure ▪ Water and sewerage ▪ Groundwork ▪ Railways ▪ Energy, oil and gas ▪ New constructions and rehab. Geography ▪ Norway, Sweden and Germany
Slide 22: Civil Engineering – development in order backlog
Civil Engineering – large projects Civil Engineering – development in order backlog NOK million 25,000 25000 After 20000 20,000 end of Q4 18 140 18,140 16,433 16 433 15000 15,000 15 368 15,368 10,000 10000 6 878 6,878 5,000 5000 0 2021 2022 2023 2024 22
Slide 23: E6 Roterud–Storhove
Civil Engineering – large projects E6 Roterud–Storhove ▪ Detailed design and construction of a new 23 km four-lane highway in Gjøvik and Lillehammer ▪ The project comprises: ▪ 4.2 km dual-lane tunnel, Vingnestunnelen ▪ 9 km reuse of existing road infrastructure ▪ 540 m ILM bridge over the Lågen delt
Slide 24: Large projects are part of our DNA
Civil Engineering – large projects Large projects are part of our DNA OSLO DAM DOKKFLØY LUFTHAVN MELKØYA T-FORBINDELSEN NYHAMNA E18 New embankment New main airport Development of the Subsea tunnel in Expansion of TVEDESTRAND dam Gardermoen Snøhvit fields Haugesund Ormen Lange –ARENDAL 1985 1990 1995
Slide 25: Ongoing major projects in Civil Engineering
Civil Engineering – large projects Ongoing major projects in Civil Engineering E6 Clean Water Tunnel E6 Storhove–Øyer New airport Mo i Rana Cable tunnel Sogn–Ulven Lovö, E4 Förbifart Stockholm Water treatment plant Huseby
Slide 26: The basic principles of our project activities
Civil Engineering – large projects The basic principles of our project activities Project selection Customer Calculation Project relations organisation Planning Procurement Financial Contract expertise management management
Slide 27: Main areas of expertise within civil engineering
Civil Engineering – large projects Main areas of expertise within civil engineering Tunnel Groundwork Concrete work Concrete rehab.
Slide 28: What characterises the market – what drivers do we see?
Civil Engineering – large projects What characterises the market – what drivers do we see? Geopolitical uncertainty Environmental expertise Increased investments – large public – increased customer in defense facilities and investments in demands for climate and related infrastructure. infrastructur
Slide 29: The path ahead
Civil Engineering – large projects The path ahead Robust portfolio and financial position ▪ Solid order backlog across a wide range of segments Continuously building a stronger team ▪ Competent leaders and the industry’s best professional management ▪ Increasingly developing leaders and subject matt
Slide 30: Summary
4th quarter 2024 Summary NOK million Q4 24 Q4 23 2024 2023 Revenues 8,595 8,378 30,638 30,530 EBIT 607 302 1,149 749 EBT 589 292 1,085 700 EBIT % 7.1% 3.6% 3.8% 2.5% EBT % 6.9% 3.5% 3.5% 2.3% ▪ High activity and solid result ▪ Strong financial position ▪ Order intake: NOK 12,505 (8,504) million ▪ Or
Slide 31: Thank you for your attention
Thank you for your attention Presentation of Q1 15 May 2025 Museum of the Viking Age. Photo: Statsbygg