Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q1 2023 Earnings Presentation
20 slides from Af Gruppen Asa Class A's earnings presentation, May 12, 2023
Slide 1: AF Gruppen ASA Q1 2023
AF Gruppen ASA Q1 2023 12 May 2023 Statpipe New Landfall. Photo: Hans Fredrik Asbjørnsen
Slide 2: Overview
1st quarter 2023 Overview Challenging 1st quarter 2023 for AF Gruppen ▪ Revenue: NOK 7,393 (6,809) million in Q1 ▪ Earnings before tax: NOK 13 (209) million in Q1 ▪ Profit margin: 0.2% (3.1%) in Q1 ▪ Cash flow from operations: NOK -24 (607) million in Q1 ▪ Order backlog: NOK 41,668 (42,697) million
Slide 3: Health and safety
1st quarter 2023 Health and safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 2.0 10.0 9.2 5.0% 4.6% 8.6 4.4% 1.4 8.0 4.0% 1.5 1.1 6.0 3.0% 1.0 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2020 2021 2022 Q1 23 2020 2021 2022 Q1 23 2020 2021 2022 Q1 23 Number of lost-
Slide 4: Revenues and earnings
1st quarter 2023 Revenues and earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 550 6.0% 8,000 500 7,393 450 5.0% 7,000 6,809 400 6,000 350 4.0% 5,000 300 3.1% 3.0% 4,000 250 209 200 3,000 2.0% 150 2,000 100 1.0% 1,000 50 13 0.2% 0 0 0.0% Q1 22 Q2 22 Q3 22 Q4 2
Slide 5: Return on invested capital
1st quarter 2023 Return on invested capital Earnings before tax and interest Average invested capital* Return on invested capital expense* NOK million NOK million 2,000 5,000 4,561 4,680 40% 32% 1,442 4,000 1,500 30% 27% 1,256 3,000 1,000 20% Target 2,000 500 10% 1,000 0 0 0% 2019 2020 2021 2022 YTD
Slide 6: Cash flow statement
1st quarter 2023 Cash flow statement Cash flow from operations NOK million Q1 2023 Q1 2022 2022 EBIT 15 215 1,409 NOK million Depreciation, amortisation and impairment 131 130 528 1,460 Change in net working capital -63 421 -43 1,500 Taxes paid -81 -115 -299 Other -27 -44 -135 1,000 Cash flow from o
Slide 7: Net interest-bearing debt and liquidity
1st quarter 2023 Net interest-bearing debt and liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million 400 371 1,500 371 -570 200 1,000 974 677 500 0 0 -200 -500 -400 -1,000 -1,500 -600 -570 -2,000 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1
Slide 8: Balance sheet
1st quarter 2023 Balance sheet Equity share NOK million 31.03.23 31.03.22 31.12.22 Long term debt Non-current assets 7 859 7 608 7 630 Equity Current assets, ex. cash 6 643 4 993 6 062 Cash and cash equivalents 677 974 765 Equity-share*: 22.8% Total assets 15 180 13 574 14 457 (26.8%) Equity 3 458 3
Slide 9: Environment
1st quarter 2023 Environment Source separation rate Metal demolished and sorted for Recycling environmental sites Waste sorted: 125,160 (82,661) tonnes YTD in 2023 recycling Recycling rate 78% (78%) YTD in 2023 % Tonn Tonn 100 97% 60 000 600 000 89% 54 540 86% 80 50 000 500 000 40 000 400 000 60 1 3
Slide 10: Business Areas
Business Areas 1st quarter 2023 10 Vestby Kulturkvartal. Photo: Bård Gudim
Slide 11: Civil Engineering: Good Result and Record High Order Backlog
Civil Engineering Good Result and Record High Order Backlog NOK million Q1 23 Q1 22 2022 Revenues 1,451 1,242 5,919 EBIT 77 84 445 EBT 78 83 440 EBIT % 5.3% 6.7% 7,5% EBT % 5.4% 6.7% 7,4% ▪ Civil Engineering has revenue growth compared to 1st quarter last year, and reports a good result ▪ AF Anlegg
Slide 12: Construction: Low Profitability and Varied Performance
Construction Low Profitability and Varied Performance NOK million Q1 23 Q1 22 2022 Revenues 2,591 2,481 11,090 EBIT 51 18 322 EBT 46 17 318 EBIT % 2.0% 0.7% 2,9% EBT % 1.8% 0.7% 2,9% ▪ Construction reports overall low profitability. The market is challenging and there is great variation in the resul
Slide 13: Betonmast: Improved Results, but Below Expectation
Betonmast Improved Results, but Below Expectation NOK million Q1 23 Q1 22 2022 Revenues 1,206 1,243 5,145 EBIT 34 23 166 EBT 40 20 174 EBIT % 2.8% 1.8% 3,2% EBT % 3.3% 1.6% 3,4% ▪ Varying results in the units lead to a weak result for Betonmast ▪ Betonmast Romerike, Trøndelag, Røsand and Asker og Bæ
Slide 14: Property: Low Sales in the Quarter
Property Low Sales in the Quarter NOK million Q1 23 Q1 22 2022 Revenues 10 6 30 EBIT -1 2 75 EBT 1 3 82 Invested capital 678 678 654 ▪ Low residential sales in the quarter. Sales contracts signed for a total of 20 (57) residential units in the quarter, whereof AF’s share was 9 (26) units ▪ Seven pro
Slide 15: Sweden: Challenging Quarter with a Negative Result
Sweden Challenging Quarter with a Negative Result NOK million Q1 23 Q1 22 2022 Revenues 1,927 1,585 7,445 EBIT -162 46 130 EBT -163 44 127 EBIT % -8.4% 2.9% 1,7% EBT % -8.5% 2.8% 1,7% ▪ Sweden has a negative result due to further negative adjustments of the project estimates in the former Betonmast
Slide 16: Energy and Environment: Good Growth, but Result Below Expectation
Energy and Environment Good Growth, but Result Below Expectation NOK million Q1 23 Q1 22 2022 Revenues 287 237 1 062 EBIT 11 12 84 EBT 13 11 82 EBIT % 3.7% 4.9% 7,9% EBT % 4.4% 4.5% 7,7% ▪ Energy and environment reports an overall result below expectation ▪ AF Energi has increased revenues and repor
Slide 17: Offshore: Revenue Growth and Very Good Profitability
Offshore Revenue Growth and Very Good Profitability NOK million Q1 23 Q1 22 2022 Revenues 244 185 1 238 EBIT 18 17 164 EBT 16 16 160 EBIT % 7.2% 9.4% 13,2% EBT % 6.4% 8.6% 12,9% ▪ Offshore reports revenue growth and a very good result in the quarter ▪ AF Offshore Decom reports good profitability in
Slide 18: Solid Order Backlog
1st quarter 2023 Solid Order Backlog NOK million Order backlog business areas 45,000 41,668 40,000 Offshore 35,000 1,625 Civil Sweden Engineering 30,000 17,517 7,645 25,000 Energy and Order 20,000 Environment backlog 15,000 694 41,668 10,000 (42,697) Betonmast 5,000 5,115 0 2019 2020 2021 2022 2023
Slide 19: Summary
1st quarter 2023 Summary NOK million Q1 23 Q1 22 2022 Revenues 7,393 6,809 31,205 EBIT 15 215 1,409 EBT 13 209 1,400 EBIT % 0.2% 3.2% 4,5% EBT % 0.2% 3.1% 4,5% ▪ Well positioned in a challenging market ▪ Solid revenue growth, but weak profitability ▪ Strong financial position ▪ Solid order backlog:
Slide 20: Thank you for your attention
Thank you for your attention Q2 | 25 August 2023 Lucas Ensjø. Photo: Bård Gudim