Veidekke Asa · OSL:VEI
Veidekke Asa — Q3 2024 Earnings Presentation
22 slides from Veidekke Asa's earnings presentation, Nov 7, 2024
Slide 1: Q3 Third quarter 2024
Q3 Third quarter 2024 7 November 2024 Jimmy Bengtsson, Group CEO | Jørgen Wiese Porsmyr, CFO Questions? Email ir@veidekke.no
Slide 2: Occupational health and safety
Occupational health and safety Our primary priority Number of serious injuries Sickness absence 12-month rolling, Veidekke employees, 12-month rolling, Veidekke employees hired staff and sub-contractors 6% 14 12 5% 10 4% 8 3% 6 2% 4 1% 2 0 0% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 20
Slide 3: Highlights Q3 2024
Questions? Email ir@veidekke.no Highlights Q3 2024 • Revenue at NOK 9.7 billion – down 7% from Q3 2023 • Profits and profit margin improved from Q3 2023 • Order book remains stable at NOK 41 billion
Slide 4: Key financial figures
Key financial figures Third quarter Revenues Profit before tax NOK billion NOK billion 601 616 10.4 530 545 9.5 9.3 9.6 9.7 505 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 4
Slide 5: Stable order book
Stable order book High quality project portfolio Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 100 % 48 42 44 38 40 80 % 36 34 32 30 60 % 28 26 24 20 40 % 22 16 18 12 20 % 8 14 4 10 0 0% Sep-22 Sep-23 Sep-24 Sep-22 Sep-23 Sep-24 Sep-22
Slide 6: Order intake at NOK 7.6 billion in Q3
Order intake at NOK 7.6 billion in Q3 Emphasis on residential and commercial buildings Order intake Q3 2024 NOK billion Norway Sweden Denmark 3.2 1.7 0.9 0.7 0.6 0.4 0 Residential Commercial Public Rock and Energy, industry, Transportation Road maintenance buildings buildings buildings foundation wo
Slide 7: Q3 Results and financial status
Q3 Results and financial status Jørgen Wiese Porsmyr, CFO
Slide 8: Revenues, profits and profit margins
Revenues, profits and profit margins Group and business areas Q3 2024 Q3 2023 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 230 129 4.0% 3 695 165 4.5% Infrastructure Norway 2 754 321 11.7% 2 798 283 10.1% Construction
Slide 9: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 5 5.5% 6% 4.5% 4.0% 5% 4.0% 4.0% 4 245 4% 3 Revenue down 13% on Q3 2023 3% 165 4.5 150 148 3.8 • Revenue dropped in most geographies; 2 3.7 3.7 129 3.2 2% a consequence of lower order intake in 2023 1 1% • Distinct revenue drop expecte
Slide 10: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q3 4 25% 24% 23% 22% 21% 20% 3 19% 18% 17% 2.8 2.8 2.8 16% 15% 221 232 2.7 14% 2 13% 12% 11% 10% 1.8 11.7% 9% 8% 183 1 10.1% 7% 6% 5% 6.5% Revenue on a par with Q3 2023 4% 4.9% 3% 2% 1% 0 0% -1% -9.6% -2% -3% -4% 119 • Civil engineer
Slide 11: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 2.2% 2.2% 3% 2.0% 2.2% 2% 2.5 2 2.0 2.1 2% 1.9 Revenue down 25% on Q3 2023 in local currency 1.6 1% • Stockholm and Gothenburg saw the greatest drop, 1 47 42 but downturn also evident in remainder of the business 0.7% 1% 41 36 18 0 0
Slide 12: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 3 5.4% 5.3% 6% 4.6% 4.4% 5% 4% 2 1.8 1.6 3% 1.5 Revenue on a par with Q3 2023 in local currency 1.3 1.2 2% • Stable revenue in all market segments 1% 1 0% -1% -1.1% Profit increased -1 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 -2% Q3 23 Q4 23 Q1
Slide 13: Denmark
Denmark Revenues and profit margin Profit before tax 1 16.3% 18% 17% 16% 0.9 15% 14% 10.8% 13% 0.8 0.7 12% 0.7 8.8% 0.7 11% Revenue up 2% on Q3 2023 in local currency 7.0% 10% 9% 8% 118 9.6% 7% 6% 5% 81 76 65 Strong results and solid profitability 4% 3% 53 2% 1% • Consistently robust project profita
Slide 14: Financial position
Financial position Balance sheet Amounts in NOK million 30 September 2024 30 September 2023 Fixed assets 7 321 7 173 Current assets (excluding cash, cash equivalents and financial investments) 7 951 9 345 Cash, cash equivalents and financial investments 2 450 1 735 Assets 17 722 18 253 Equity 2 888
Slide 15: Financial position
Financial position Highlights Q3 Net interest-bearing position • Strong cash flow in the quarter – working capital decreased NOK million in the Norwegian units Overall highlights 2024 • Net investments slightly down from last year (NOK 247 million vs. NOK 422 million), primarily in the infrastructur
Slide 16: Q3 Closing comments
Q3 Closing comments Jimmy Bengtsson, Group CEO
Slide 17: Construction: Good order intake in a challenging market
Construction: Good order intake in a challenging market Revenue and order intake Construction Norway: 12-month rolling, NOK billion • Revenue in Norway expected to level off in 2025, after a decline in 2024 15.2 15.3 Construction Sweden: • Good intake of orders for private commercial buildings; no n
Slide 18: Infrastructure: Good market activity
Infrastructure: Good market activity Revenue and order intake Infrastructure Norway: 12-month rolling, NOK billion • In tenders for larger projects, the success rate to date in 2024 6.4 6.4 has been low, despite a robust market 6.0 • New Fornebu Line contract worth approx. NOK 1.8 billion 5.1 was aw
Slide 19: From market decline in 2024 to new growth in 2026
From market decline in 2024 to new growth in 2026 Our systematic, step-by-step improvements continue Our tasks: ● The right projects at the right price ● Improved uncertainty management and implementation skills ● Turn around weakly- performing units Source: Veidekke’s autumn 2024 market update 19
Slide 20: Summary
Summary 1 Profit improvement, despite revenue drop • Reflects high quality project portfolios • Profit margin generally improved, except in Construction Norway Selectivity Execution New projects at the right On plan or better, with 2 Order book remains strong price for the relevant market uncertaint
Slide 21: 21
21
Slide 22: 2
2 2