Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q4 2020 Earnings Presentation
29 slides from Nrc Group Asa's earnings presentation, Feb 17, 2021
Slide 1: Q4 2020 Result presentation NRC Group
Q4 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 Q4 2020
Highlights Q4 2020 Revenue EBITA* Order backlog NOK million NOK million NOK million Revenue • NOK 1.58 billion, -5% vs last year 7 151 6 475 • NOK -10 million EBITA* • Strong results in Finland 1 663 • Weak results in demolition- and recycling business 1 578 • Low revenue in Sweden and in Civil Norw
Slide 4: Operations and business during Covid-19
Operations and business during Covid-19 • Keep employees safe and minimize impact on operations 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 • Maintenance an
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 per 31
Slide 6: Sustainability
Sustainability • Materiality analysis 2020 • Climate risk analysis • Define baseline, set goals and ambitions • Launch Sustainability report with GRI indicators 2021 • • Preparing for reporting on EU-Taxonomy Seeking opportunities to invest more in a greener machine fleet 6
Slide 7: Q4 key figures – profit & loss
Q4 key figures – profit & loss • Revenue in Q4 20 of NOK 1,578 million (Amounts in NOK million) Q4 2020 Q4 2019 FY 2020 FY 2019 Revenue 1 578 1 663 6 449 6 193 • EBITA* in Q4 20 of NOK -10 million Operating expenses 1 534 1 650 6 185 5 927 • Strong results in Finland EBITDA* 44 13 264 267 • Lower th
Slide 8: Q4 2020 key figures – balance sheet
Q4 2020 key figures – balance sheet (Amounts in NOK million) ASSETS 31.12.2020 31.12.2019 • Goodwill and other intangible assets: NOK 3,010 million Intangible assets 3 010 2 799 Right-of-use assets 588 522 Total other non-current assets 255 301 • Cash: NOK 610 million Cash and cash equivalents 610 1
Slide 9: Q4 2020 key figures – strong cash flow from operations
Q4 2020 key figures – strong cash flow from operations • Solid cash flow from continuing operating activities of NOK 110 (Amounts in NOK million) Q4 2020 Q4 2019 FY 2020 FY 2019 million in the quarter and NOK 312 million in 2020 Profit/loss before tax -36 -115 -94 -178 Net cash flow from operating a
Slide 10: Robust financial position as per 31 December
Robust financial position as per 31 December Interest-bearing debt Bank and bond maturities NOK million NOK million • Cash position of NOK 610 million • NIBD of NOK 1,158 million 600 • Undrawn Revolver Credit Facility of NOK 200 million 152 152 152 143 2021 2022 2023 2024 Bank loan Bond *Leasing inc
Slide 11: Operational review
Operational review
Slide 12: Key measures implemented in 2020
Key measures implemented in 2020 Rail Norway Sweden Maintenance Finland 1 Strengthen management Strengthen competence and Improvement of core commercial capabilities through 2 processes management changes during second half of 2019 and in 2020. Improved project selection, risk assessment- and pricin
Slide 13: Continued focus in 2021 on core processes to improve profitability
Continued focus in 2021 on core processes to improve profitability Win the right projects at the right price A fact-based analytical approach throughout the tender process by: • Selecting projects based on competitive edge and commercial potential • Continues improvement of calculation process • Ana
Slide 14: NRC Group Finland – Strong results
NRC Group Finland – Strong results -3% Organic • Strong growth in Light rail Revenue EBITA* Order backlog growth** • Lower activity in Maintenance and Materials NOK million NOK million NOK million EBITA* • Strong results in light rail projects 820 740 2 905 720 713 2 568 Coming Order 620 1 674 1 202
Slide 15: NRC Group Finland – Solid increase in tender pipeline
NRC Group Finland – Solid increase in tender pipeline EUR 0.5 billion tender pipeline2 EUR million value, # of tenders, next 9 months • Increased with EUR 250 million from Q320 pipeline, mainly Rail Tender pipeline construction projects • EUR 270 million increase from last year 480 411 420 360 #20 •
Slide 16: NRC Group Sweden – weak results
NRC Group Sweden – weak results -4% Organic • Low revenue due to low order intake during the Revenue EBITA* Order backlog year NOK million NOK million NOK million growth** 2 277 2 112 600 500 1 333 1 053 Coming • Low revenue reduces the profitability 396 370 years EBITA* • Project mix with low profi
Slide 17: NRC Group Sweden – Focus areas 2021
NRC Group Sweden – Focus areas 2021 Civil Rail Construction Maintenance • Organic profitable growth • Improvement processes within project • Steady performance last three years • Expand customer portfolio and execution and follow up continues • Seven contracts to be tendered in the market geographic
Slide 18: NRC Group Sweden – Strong tender pipeline
NRC Group Sweden – Strong tender pipeline SEK9.5 SEK 10 billion billion tender pipeline12 tender pipeline (SEK million value, # of tenders, next 9 months) (SEK million value, # of tenders, next 9 months) • Increased with SEK 3.0 Bn from Q320 pipeline, mainly maintenance 6 000 projects 6 000 5 300 •
Slide 19: NRC Group Norway – Low activity and weak results
NRC Group Norway – Low activity and weak results Revenue EBITA* Order backlog NOK million NOK million NOK million • Lower revenue in Civil due to low order intake 1 969 - 24% organic during the year 1 796 growth • Lower revenue in demolition- and recycling 700 business 583 600 1 020 824 • Improved p
Slide 20: NRC Group Norway – continued focus on core processes to improve profitability
NRC Group Norway – continued focus on core processes to improve profitability Rail Civil Environment • Successful implementation of improvement • Increase competitiveness and win rate by • Build stronger structure and program in 2020 continued improvement of tender more robust organizations • Contin
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 • Slightly lower tender pipeline than last year 3 800 #4 Strong pipeline • Increase in projects above NOK 300 million in Rail construction 4
Slide 22: Summary
Summary • EBITA margin in 2020 at 0.8% Financials • Solid cashflow from operations in 2020 • Focus on core processes in tendering and project execution continues in order to restore profitability in Norway and Sweden Operations • Strong project execution in Finland, measures to increase flexibility
Slide 23: Appendix
Appendix 23
Slide 24: Segments – key figures quarterly development
Segments – key figures quarterly development Reported** Reported** Reported Reported*** Reported Reported Reported Reported Norway operations (NOK million) FY 2017 FY 2018 FY 2019 FY 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total revenue 771 1 598 2 281 1 866 470 545 683
Slide 25: Orderbook and order intake Q4 2020
Orderbook and order intake Q4 2020 • Order book NOK 6,475 million Order book* Order intake (NOK million) (NOK million) • Order intake of NOK 1,392 million 572 • Announced orders NOK 754 million • Unannounced orders NOK 639 million 529 8048 314 7632 7526 6852 7151 6835 2650 6475 5961 421 639 834 765
Slide 26: 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 4 000 3,5 3 395 3 500 3,0 3 000 2,5 1 365 2 500 2,0 2 000 1 839 1,5 1 500 1 058 717 1 241 1,0 0,8 1 000 486 694 359 0,5 500 972 429 396 0 0,0 2021 2022+ 2023+ Q117 Q
Slide 27: 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 million, 2019-24 • Confirmed investments and spending at EURO 0.92 Bn Budget confirmed • Investments and renewals at high levels 976 963 920 890 879 208 326 309 211 247 • Continued high
Slide 28: NRC Sweden – High investment level in line with expectations
NRC Sweden – High investment level in line with expectations • SEK 30.4 Bn for 2021, +7% higher than estimated in the NTP Rail investments and maintenance spending1 Budget confirmed • The high investment level is expected to continue also in 2022 SEK billion, 2019-24 30,4 30,0 28,4 28,5 27,4 Rail in
Slide 29: 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 • NOK 26.5 bn for 2021, +20% from 2020 and NOK billion, 2019-24 Budget confirmed approximately NOK +1.7 Bn vs NTP level for 2021 29,5 28,4 26,5 26,6 10,6 • Increase of NOK +4.5 bn ma