Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q3 2023 Earnings Presentation
28 slides from Af Gruppen Asa Class A's earnings presentation, Nov 10, 2023
Slide 1: AF Gruppen ASA Q3 2023
AF Gruppen ASA Q3 2023 10 November 2023 Instructions on use of protective equipment. Photo: Consolvo
Slide 2: Overview
3rd quarter 2023 Overview Lower activity level with a weak result in the 3rd quarter ▪ Revenue of NOK 6,907 (7,537) million in Q3 and NOK 22,152 (22,638) million year-to-date ▪ Earnings before tax of NOK 103 (263) million in Q3 and NOK 408 (898) million year-to-date ▪ Profit margin of 1.5% (3.5%) in
Slide 3: Health and Safety
3rd quarter 2023 Health and Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 2.0 12.0 5.0% 4.6% 4.1% 3.9% 10.0 4.0% 1.5 8.6 8.3 8.4 8.0 1.1 3.0% 1.0 0.8 6.0 2.0% 4.0 0.5 2.0 1.0% 0.0 0.0 0.0 0.0% 2020 2021 2022 YTD Q3 23 2020 2021 2022 YTD Q3 23 2020 2021
Slide 4: Revenues and earnings
3rd quarter 2023 Revenues and earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 700 6.0% 8,000 7,537 600 6,907 5.0% 7,000 500 6,000 4.0% 3.5% 5,000 400 3.0% 4,000 300 263 3,000 2.0% 200 1.5% 2,000 103 100 1.0% 1,000 0 0 0.0% Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22
Slide 5: Return on Capital Employed
3rd quarter 2023 Return on Capital Employed Earnings before tax and interest Average capital employed Return on capital employed expense * NOK million NOK million 2,000 6,000 40% 5,122 5,000 4,561 31.6% 1,500 1,442 30% 4,000 1,003 19.6% 1,000 3,000 20% Target 2,000 500 10% 1,000 0 0 0% 2019 2020 202
Slide 6: Cash flow statement
3rd quarter 2023 Cash flow statement Q3 Q3 YTD YTD Cash flow from operations NOK million 2023 2022 2023 2022 EBIT 128 271 447 907 NOK million Depreciation, amortisation and impairment 142 133 408 399 1,600 1,460 1 498 Change in net working capital 240 -77 62 532 1,400 Taxes paid -41 -42 -193 -217 1,
Slide 7: Net interest-bearing debt and liquidity
3rd quarter 2023 Net interest-bearing debt and liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million 254 500 254 1,500 -1 381 1,000 0 526 500 -500 0 -500 -1 000 -1,000 -1,500 -1 500 -1 381 -2,000 -2 000 -2,500 Q3 22 Q4 22 Q1 23 Q
Slide 8: Balance Sheet
3rd quarter 2023 Balance Sheet Equity share NOK million 30.09.23 30.09.22 31.12.22 Long term debt Equity Non-current assets 8,242 7,705 7,630 Current assets, ex. cash 6,241 5,955 6,062 Cash and cash equivalents 526 1,036 765 Equity-share*: 19.8 % Total assets 15,009 14,695 14,457 (22.4 %) Equity 2,9
Slide 9: Environment
3rd quarter 2023 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 218,291 (213,963) tonnes YTD in 2023 recycling Recycling rate 78% (81%) YTD in 2023 % Tonnes Tonnes 100 95 96% 60,000 54,540 600,000 88 84% 89 87% 80 50,000 500,000 40,000
Slide 10: Business Areas
Business Areas 3rd quarter 2023 10 New airport in Mo i Rana. Photo: Hedda Hiller
Slide 11: Civil Engineering: High Activity and Very Good Profitability
Civil Engineering High Activity and Very Good Profitability NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 1,680 1,462 4,636 4 241 EBIT 129 92 310 275 EBT 135 93 320 272 EBIT % 7.7% 6.3% 6.7% 6.5% EBT % 8.0% 6.4% 6.9% 6.4% ▪ Civil Engineering reports high activity and a very good result in Q3
Slide 12: Construction: Several Business Units With Good Results
Construction Several Business Units With Good Results NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 2,285 2,631 7,549 8 029 EBIT 93 100 256 199 EBT 89 99 240 199 EBIT % 4.1% 3.8% 3,4% 2,5% EBT % 3.9% 3.8% 3,2% 2,5% ▪ Construction has decreased revenues this quarter and profitability in line w
Slide 13: Betonmast: Lower Activity and Weak Profitability
Betonmast Lower Activity and Weak Profitability NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 1,059 1,252 3,382 3,768 EBIT 19 37 86 89 EBT 25 41 102 91 EBIT % 1.8% 3.0% 2,6% 2.4% EBT % 2.3% 3.3% 3,0% 2.4% ▪ Betonmast has decreased revenues compared to the same quarter last year and a weak res
Slide 14: Property: Low Sales
Property Low Sales NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 4 7 20 18 EBIT -4 -5 -9 54 EBT 0 -3 0 59 Capital employed 792 548 792 548 ▪ An uncertain market sentiment and increased interest rates affect sales negatively and contribute to low sales in the quarter. Sales contracts for 5 (89
Slide 15: Sweden: Varying Performances and Weak Result
Sweden Varying Performances and Weak Result NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 1,567 1,759 5,644 5 303 EBIT 0 -35 -135 86 EBT -4 -36 -141 82 EBIT % 0.0% -2.0% -2,4% 1,6% EBT % -0.2% -2.0% -2,5% 1,6% ▪ Sweden has a negative result. There are large variations in the units’ performanc
Slide 16: Energy and Environment: Solid Revenue Growth and a Good Result
Energy and Environment Solid Revenue Growth and a Good Result NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 381 261 994 753 EBIT 21 21 51 51 EBT 22 21 56 50 EBIT % 5.6% 8.2% 5,1% 6,8% EBT % 5.9% 7.9% 5,6% 6,7% ▪ Energy and Environment increased the activity level by 46% compared to the same q
Slide 17: Offshore: Challenging Quarter with Negative Result
Offshore Challenging Quarter with Negative Result NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 208 380 795 870 EBIT -119 51 -84 105 EBT -126 46 -98 102 EBIT % -56.9% 13.4% -10,6% 12,0% EBT % -60.2% 12.2% -12,3% 11,7% ▪ Offshore has low activity and a weak result in the 3rd quarter ▪ AF Offsh
Slide 18: Stable Order Backlog
3rd quarter 2023 Stable Order Backlog Order Backlog Business Areas NOK million Offshore 1,362 Civil 45,000 41,864 Sweden Engineering 40,000 5,156 19,441 35,000 Energy and 30,000 Environment 1,403 Order 25,000 backlog 20,000 41,864 15,000 Betonmast 4,887 (39,716) 10,000 5,000 0 Construction 2020 2021
Slide 19: Safety
Q2 2023 | Temapresentasjon Safety Q3 2023 | Theme presentation AF Energi. Photo: Colin Eick
Slide 20: Business Idea
Business Idea To create value and opportunities through projects with an uncrompomising attitude to safety and ethics AF Anlegg, Statpipe New Landfall. Photo: Hans Fredrik Asbjørnsen
Slide 21: The Drivers for Safety in AF
The Drivers for Safety in AF Customer and regulatory Value creation Competitiveness Choice of Identity Attractiveness Societal values development requirements
Slide 22: History of Safety
History of Safety LTIF value RUI Introduces 40 hour EHS Synergi course Established Introduces barrier Clara management Requirements for 2nd line emergency paltform ladders Measuring response established of RUI frequency Requirements Internal for safety occupational goggles and health care gloves Ste
Slide 23: Learning, Risk Management, Emergency Response
Våre viktigste virkemidler LEARNING RISK MANAGEMENT EMERGENCY RESPONSE
Slide 24: Risk Management in AF
Risk Management in AF Level 1 Level 2 Risk management before Risk management actual start of the project during the project Risk management in Risk management right before specific activities (SJA) and during the activity Level 3 Level 4
Slide 25: Risk Management in AF
Risk Management in AF High risk Critical operations Critical operations High risk
Slide 26: Better risk management with systemised use of data and digital tools
Better risk management with systemised use of data and digital tools. Photo: AF Gruppen
Slide 27: Summary
3rd quarter 2023 Summary NOK million Q3 23 Q3 22 YTD 3Q 23 YTD 3Q 22 Revenues 6,907 7,537 22,152 22 638 EBIT 128 271 447 907 EBT 103 263 408 898 EBIT % 1.9% 3.6% 2,0% 4,0% EBT % 1.5% 3.5% 1,8% 4,0% ▪ LTIF = 0 ▪ Weak result ▪ Strong financial position ▪ Order intake: NOK 4,078 (5,249) million ▪ Stabl
Slide 28: Thank you for your attention
Thank you for your attention Q4 | 15 February 2024 Indekshuset in Oslo. Photo: AF Gruppen