Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q4 2022 Earnings Presentation
33 slides from Af Gruppen Asa Class A's earnings presentation, Feb 10, 2023
Slide 1: AF Gruppen ASA Q4 2022
AF Gruppen ASA Q4 2022 10 February 2023 E4 Forbifart, Stockholm. Photo: Hans Fredrik Asbjørnsen
Slide 2: Highlights
4th quarter 2022 Highlights AF Gruppen with growth and good results in 4th quarter 2022 ▪ Revenue: NOK 8,568 (8,112) million in Q4 and NOK 31,205 (27,868) million year-to-date ▪ Earnings before tax: NOK 502 (635) million in Q4 and NOK 1,400 (1,580) million year-to-date ▪ Profit margin: 5.9% (7.8%) i
Slide 3: Health and safety
4th quarter 2022 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% 4.6% 4.7% 8.3 8.6 8.0 4.0% 1.5 1.1 1.1 6.0 3.0% 1.0 0.9 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2019 2020 2021 2022 Q4 22 2019 2020 2021 2022 Q4 22 2019 2020 202
Slide 4: Revenues and earnings
4th quarter 2022 Revenues and earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 8,568 700 8.0% 7.8% 8,112 635 8,000 600 7.0% 7,000 502 6.0% 5.9% 500 6,000 5.0% 5,000 400 4.0% 4,000 300 3.0% 3,000 200 2,000 2.0% 100 1.0% 1,000 0 0 0.0% Q4 21 Q1 22 Q2 22 Q3 22 Q4
Slide 5: Return on invested capital
4th quarter 2022 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 4,491 4,561 60% 1,617 50% 1,442 4,000 1,500 40% 36% 3,000 32% 1,000 30% 2,000 20% Target 500 1,000 10% 0 0 0% 2018 2019 2020
Slide 6: Cash flow statement
4th quarter 2022 Cash flow statement Q4 Q4 Cash flow from operations NOK million 2022 2021 2022 2021 EBIT 502 639 1,409 1,609 NOK million Depreciation, amortisation and impairment 128 139 528 567 1,600 1,415 1,460 Change in net working capital -575 -316 -43 -340 1,400 Taxes paid -82 -92 -299 -283 1,
Slide 7: Net interest-bearing debt and liquidity
4th quarter 2022 Net interest-bearing debt and liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million -329 400 1,500 300 29 1,000 200 680 765 100 500 29 0 0 -100 -500 -200 -300 -1,000 -400 -329 -1,500 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22
Slide 8: Balance sheet
4th quarter 2022 Balance sheet Equity share NOK million 31.12.22 31.12.21 Long term debt Non-current assets 7,630 7,490 Equity Current assets, ex. cash 6,062 4,937 Cash and cash equivalents 765 680 Equity-share*: 24.2 % Total assets 14,457 13,108 (27.3 %) Equity 3,494 3,572 Long term debt 1,250 1,34
Slide 9: Environment
4th quarter 2022 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 278,172 (295,519) tonnes in 2022 recycling Recycling rate 80% (78%) in 2022 % Tonnes Tonnes 100 96% 95% 60,000 55,796 54,540 600,000 90% 90% 89% 86% 80 50,000 500,000 40,00
Slide 10: Business Areas
Business Areas 4th quarter 2022 10 Norwegian Press House. Photo: Hannah Kirkestuen
Slide 11: Civil Engineering: Solid order backlog and very strong results
Civil Engineering Solid order backlog and very strong results NOK million Q4 22 Q4 21 2022 2022 Revenues 1,678 1,522 5,919 6 002 EBIT 170 221 445 515 EBT 168 220 440 510 EBIT % 10.1% 14.5% 7,5% 8,6% EBT % 10.0% 14.5% 7,4% 8,5% ▪ Civil Engineering reports revenue growth compared to 4th quarter last y
Slide 12: Construction: Varying results and weaker profitability
Construction Varying results and weaker profitability NOK million Q4 22 Q4 21 2022 2022 Revenues 3,061 2,839 11,090 8 865 EBIT 122 154 322 447 EBT 119 154 318 450 EBIT % 4.0% 5.4% 2,9% 5,0% EBT % 3.9% 5.4% 2,9% 5,1% ▪ High activity and large variation in profitability and performance between the bus
Slide 13: Betonmast: Overall good profitability
Betonmast Overall good profitability NOK million Q4 22 Q4 21 2022 2022 Revenues 1,376 1,506 5,145 5,196 EBIT 78 54 166 132 EBT 83 48 174 111 EBIT % 5.6% 3.6% 3,2% 2.5% EBT % 6.0% 3.2% 3,4% 2.1% ▪ Betonmast reports overall good results in the quarter ▪ Betonmast Oslo, Romerike, Buskerud-Vestfold, Trø
Slide 14: Property: Low sales in the quarter
Property Low sales in the quarter NOK million Q4 22 Q4 21 2022 2022 Revenues 12 15 30 35 EBIT 21 32 75 75 EBT 23 33 82 76 Invested capital 654 703 654 703 ▪ Low residential sales in the quarter. Sales contracts signed for a total of 9 (135) residential units in the quarter, whereof AF’s share was 3
Slide 15: Sweden: Demanding quarter with weak results
Sweden Demanding quarter with weak results NOK million Q4 22 Q4 21 2022 2022 Revenues 2,142 1,894 7,445 6 300 EBIT 44 140 130 302 EBT 44 138 127 295 EBIT % 2.1% 7.4% 1,7% 4,8% EBT % 2.1% 7.3% 1,7% 4,7% ▪ Sweden reports weak results with fluctuating profitability levels between business units ▪ Very
Slide 16: Energy and Environment: Very good profitability
Energy and Environment Very good profitability NOK million Q4 22 Q4 21 2022 2022 Revenues 310 312 1 062 1 152 EBIT 33 52 84 109 EBT 32 53 82 107 EBIT % 10.5% 16.7% 7,9% 9,4% EBT % 10.3% 17.1% 7,7% 9,3% ▪ Energy and environment reports very good results in the quarter ▪ AF Decom reports very good res
Slide 17: Offshore: Very good profitability and revenue growth
Offshore Very good profitability and revenue growth NOK million Q4 22 Q4 21 2022 2022 Revenues 368 225 1 238 848 EBIT 59 40 164 83 EBT 58 37 160 78 EBIT % 16.0% 17.6% 13,2% 9,8% EBT % 15.9% 16.6% 12,9% 9,2% ▪ Offshore delivers strong revenue growth and very good quarterly results ▪ AF Offshore Decom
Slide 18: Strong Order Backlog
4th quarter 2022 Strong Order Backlog NOK million Order backlog business areas 45,000 39,765 40,000 Offshore 35,000 Civil 1,694 Engineering Sweden 30,000 15,368 7,638 25,000 Energy and Order 20,000 Environment backlog 15,000 640 39,765 10,000 (38,646) Betonmast 5,000 4,415 0 2018 2019 2020 2021 2022
Slide 19: Business Area Civil Engineering
Business Area Civil Engineering Q4 2022 | Theme presentation
Slide 20: Countrywide construction business
Civil Engineering Countrywide construction business Revenues (2022) Results (2022) Safety – HSE (2022) 445 Operating profit NOK million NOK 5,919 million 1.7 LTI rate 7.5 Operating margin % 20
Slide 21: Updates since last
Civil Engineering Updates since last New strategy The family has grown High job satisfaction – Professional expertise and robust project organisations Our largest project of all time We reduce greenhouse gas We’re gaining speed emissions
Slide 22: The market's external drivers form a good basis for further profitable growth
Civil Engineering – Strategy 2024 The market’s external drivers form a good basis for further profitable growth Investments in power, industry and infrastructure Strategic focus areas ▪ Metropolitan strategy and mobile capacity ▪ Major projects Major public projects ▪ Strategically important skills
Slide 23: AF's largest project of all time
Civil Engineering AF’s largest project of all time ▪ Project value NOK 8,750 million ▪ Social mission Strengthen secure delivery for clean drinking water for all of Oslo ▪ Partnership with Italian Ghella – combining professional expertise from leading contracting environments ▪ Execution Large secti
Slide 24: We save the environment from unnecessary greenhouse gas emissions
Civil Engineering – Climate and environment We save the environment from unnecessary greenhouse gas emissions E6 , Lågendeltaet ▪ Early involvement ▪ Find solutions with high utility ▪ Recycling and reuse ▪ Local solutions ▪ Optimised constructions and alignment E39 , Rossevannet
Slide 25: Civil Engineering – Development in order backlog
Civil Engineering – Development in order backlog NOK 15 BILLION 10 BILLION 5 BILLION 2020 2021 2022
Slide 26: High job satisfaction, professional competence and robust project organisations
Civil Engineering High job satisfaction Professional competence and robust project organisations ▪ We will attract, develop and retain the industry's best management and technical expertise ▪ Strong culture and high satisfaction ▪ Targeted competence development ▪ Robust organisation and good mana
Slide 27: We are not only attracted to large projects
Civil Engineering We are not only attracted to large projects New hospital in Drammen Østensjøbanen metro line Nesjødammen Client: South-Eastern Norway Regional Client: Sporveien Client: Statkraft Health Authority Statpipe New Landfall Construction City (Eiqon) Melkøya Client: Equinor Client: OBOS C
Slide 28: Diversified project portfolio
Civil Engineering Diversified project portfolio Industrial area, Kvanndal (MMT) Basement i G.quarter. A-block (Stenseth New airport in Mo i Rana Client: Nordkraft Prosjekt & RS) Client: Avinor Client: Hent/Statsbygg Water treatment plant, Huseby E39 Kristiansand – Mandal (Fjerby) E4 Förbifart Stockh
Slide 29: To succeed in the market, we must master several disciplines
Civil Engineering To succeed in the market, we must master several disciplines Changes in regulatory New competition processes Geopolitical uncertainty requirements and priorities and forms of contracts Larger projects Innovation and closer Environmental collaboration expertise
Slide 30: Our curiosity going forward
Civil Engineering Our curiosity going forward Climate and Social benefit: Infrastructure Offshore wind, environment, safe roads, clean energy, industry innovation, and water, power supply digital solutions We seek risks that we can influence
Slide 31: The road ahead
Civil Engineering The road ahead Well positioned for further organic and structural growth ▪ Targeted focus on complex projects, new segments and selected geographical areas Building an ever-stronger team ▪ Competent managers and the industry’s best skilled management ▪ We develop our own managers a
Slide 32: Summary
4th quarter 2022 Summary NOK million Q4 22 Q4 21 2022 2022 Revenues 8,568 8,112 31,205 27 868 EBIT 502 639 1,409 1 609 EBT 502 635 1,400 1 580 EBIT % 5.9% 7.9% 4,5% 5,8% EBT % 5.9% 7.8% 4,5% 5,7% ▪ Revenue growth and good profitability ▪ Strong financial position ▪ Solid order backlog: NOK 39,765 (3
Slide 33: Thank you for your attention
Thank you for your attention Q1 | 12 May 2023 Stadsgården, Halmstad. Photo: Marie Ullnert