Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q3 2020 Earnings Presentation
27 slides from Nrc Group Asa's earnings presentation, Nov 10, 2020
Slide 1: Q3 2020 Result presentation NRC Group
Q3 2020 Result presentation NRC Group CEO – Henning Olsen and CFO – Dag Fladby
Slide 2: Disclaimer
Disclaimer • This draft presentation (hereinafter referred to as the “Presentation”) has been prepared exclusively for information purposes and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments. • This Presentation includes and is based on, among o
Slide 3: Highlights Q3 2020
Highlights Q3 2020 Revenue EBITA* Order backlog NOK million NOK million NOK million • NOK 1.96 billion Revenue • 6% growth due to currency effects 6 852 6 835 1 956 1 850 EBITA* • NOK 88 million • Strong profitability in Finland • Order intake of NOK 1.2 billion Orders • Order backlog of NOK 6.8 bil
Slide 4: Operations and business during Covid-19
Operations and business during Covid-19 Nytt • Keep employees safe and minimize impact on operations bilde Main priorities • Compliant with public restrictions and recommendations • Monitor potential effects on the industry and NRC Group’s business • Limited impact on project execution to date • Mai
Slide 5: Health and safety first
Health and safety first *LTI-1: Injuries resulting in absence at least one full day per million man-hours (incl subcontractors) **LTI-2: lost time injuries in total per million man-hours, also including injuries that require medical treatment and alternative work (incl subcontractors) Figures YTD pe
Slide 6: Q3 key figures – profit & loss
Q3 key figures – profit & loss • Revenue in Q3 20 of NOK 1,956 million (Amounts in NOK million) Q3 2020 Q3 2019 YTD 2020 YTD 2019 FY 2019 Revenue 1 956 1 850 4 871 4 531 6 193 • EBITA* in Q3 20 of NOK 88 million Operating expenses 1 816 1 697 4 650 4 277 5 927 • Strong margins in Finland EBITDA* 140
Slide 7: Q3 2020 key figures – balance sheet
Q3 2020 key figures – balance sheet (Amounts in NOK million) ASSETS 30.09.2020 30.09.2019 31.12.2019 • Continued weak NOK vs EUR and SEK affecting the balance sheet Intangible assets 3 028 2 757 2 799 Right-of-use assets 572 576 522 Total other non-current assets 316 288 301 • Goodwill and other int
Slide 8: Q3 2020 key figures – cash flow
Q3 2020 key figures – cash flow Q3 Q3 YTD YTD FY • Solid cash flow from operating activities of NOK 129 million. (Amounts in NOK million) 2020 2019 2020 2019 2019 YTD improvement vs YTD 2019 of NOK 302 million Profit/loss before tax 47 63 -58 -63 -178 • Net cash from investments of NOK -110 million
Slide 9: Robust financial position as per 30 September
Robust financial position as per 30 September Interest-bearing debt Bank and bond maturities NOK million NOK million • Cash position of NOK 606 million • NIBD of NOK 1,223 million 600 • Undrawn Revolver Credit Facility of NOK 200 million 162 162 162 152 40 2020 2021 2022 2023 2024 Bank loan Bond *Le
Slide 10: Operational review
ff i Operational review
Slide 11: Improvement programs – activities implemented according to plan
Improvement programs – activities implemented according to plan Sweden Rail Norway Finland • New Country Manager and project directors • New management team and proven resources in place • Strengthen project management skills • Strengthen project management skills • Strengthen project management ski
Slide 12: Execution of cost reduction in Norway and Sweden is going according to plan
Execution of cost reduction in Norway and Sweden is going according to plan Sweden Rail in Norway Finland • Personnel, consultants and locations • Reduction of personnel and locations • Adjustment of overhead level after sale of Design and expected lower revenue in Maintenance • Improve resource uti
Slide 13: NRC Finland – Strong profitability
NRC Finland – Strong profitability 8% Organic Revenue EBITA* Order backlog • Growth mainly driven by light rail projects growth NOK million NOK million NOK million and execution 831 • Strong results in light rail projects 3 108 2 986 EBITA* • High season, improved utilization rate 820 720 712 Coming
Slide 14: NRC Finland – Confirmed continued high level of investment in 2021
NRC Finland – Confirmed continued high level of investment in 2021 Rail investments and maintenance spending1 EUR billion, CAGR 2019-24 • Estimated investments and spending at EURO 0.92 Bn Budget proposal • Investments and renewals at high levels 0,98 0,96 0,92 0,89 0,88 0,21 0,33 0,31 0,21 0,25 • C
Slide 15: NRC Finland – Increase in tender pipeline from 2021
NRC Finland – Increase in tender pipeline from 2021 EUR 0.25 billion tender pipeline2 EUR million value, # of tenders, next 9 months • Increased with NOK 1 Bn from Q220 pipeline • Mainly increase in Rail construction projects Tender pipeline • Maintenance expected to be at the same level 240 • Indic
Slide 16: NRC Sweden – High activity
NRC Sweden – High activity Revenue EBITA* Order backlog 13% Organic • Mainly due higher activity in rail construction NOK million NOK million NOK million and execution growth • High production in zero margin projects 583 2 445 600 2 144 • Write downs of zero margin projects of 500 460 Coming NOK -35
Slide 17: NRC Sweden – High investment level in line with expectations
NRC Sweden – High investment level in line with expectations • Rail investments and maintenance spending1 Total budget proposal • SEK 30.4 Bn for 2021, +7% higher than estimated in the NTP The high investment level is expected to continue also in 2022 SEK billion, CAGR 2019-24 30,4 30,0 28,4 28,5 27
Slide 18: NRC Sweden – Still strong tender pipeline in rail construction
NRC Sweden – Still strong tender pipeline in rail construction SEK7.2 SEK 10 billion billion tender pipeline12 tender pipeline (SEK million value, # of tenders, next 9 months) Rail construction (SEK million value, # of tenders, next 9 months) • Pipeline of SEK 5.3 Bn vs SEK 5.4 Bn in Q2 20 and civil
Slide 19: NRC Norway – Low activity and reduced margins
NRC Norway – Low activity and reduced margins - 21% Organic growth • Lower revenue in Civil and Rail construction Revenue EBITA* Order backlog NOK million NOK million NOK million and execution 683 1 704 • Reduced profitability in Civil due to low volume 700 EBITA* • Lower profitability than expected
Slide 20: NRC Norway - Investment growth in 2021 mainly related to on-going projects
NRC Norway - Investment growth in 2021 mainly related to on-going projects Rail investments and maintenance spending1 Total budget • NOK 26.5 bn for 2021, +20% from 2020 and NOK billion, CAGR 2019-24 proposal approximately NOK +1.7 Bn vs NTP level for 2021 29,5 28,4 26,5 26,6 10,6 • Increase of NOK
Slide 21: NRC Norway - Strong tender pipeline
NRC Norway - Strong tender pipeline NOK 6.1 billion tender pipeline2 (NOK million value, # of tenders, next 9 months) • Continued high tender activity expected • Decline in projects above 500 million in Rail Strong pipeline construction • Civil and Environment at same level as Q2 pipeline 3 500 3 15
Slide 22: Summary
y/ Summary CEO and CFO
Slide 23: Summary
Summary • EBITA* margin in Q3 at 4.5% Financials • 2020 EBITA margin expected to be in the lower end of 1.5-2.0% • Solid cashflow from operations • Continued strong outlook for investments in sustainable infrastructure confirmed by budget proposals in Norway, Sweden Outlook and Finland • Solid tende
Slide 24: Appendix
Appendix 24
Slide 25: Segments – key figures quarterly development
Segments – key figures quarterly development Reported Reported Reported Reported Reported** Reported** Reported Reported*** Reported Reported Reported Norway operations (NOK million) FY 2016 FY 2017 FY 2018 FY 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 20
Slide 26: Orderbook and order intake Q3 2020
Orderbook and order intake Q3 2020 • Order book NOK 6,835 million Order book* Order intake (NOK million) (NOK million) • Order intake of NOK 1.2 billion 572 • Announced orders NOK 341 million • Unannounced orders NOK 852 million 529 8048 314 7632 7526 6852 7151 6835 2650 5961 421 824 753 1413 852 35
Slide 27: Orderbook indicates moderate growth in 2021
Orderbook indicates moderate growth in 2021 Order book execution by country Book-to-bill ratio NOK million Period order intake/revenue 3 500 3,5 3 081 3 000 3,0 2 536 2 500 2,5 1 385 2 000 1 113 2,0 1 500 1,5 1 217 955 0,9 1 000 487 890 1,0 500 300 0,5 741 430 533 0 0,0 2020 2021 2022 + Q117 Q217 Q3