Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q4 2021 Earnings Presentation
31 slides from Af Gruppen Asa Class A's earnings presentation, Feb 10, 2022
Slide 1: AF Gruppen ASA Q4 2021
AF Gruppen ASA Q4 2021 11 February 2022
Slide 2: Highlights
4th quarter 2021 Highlights AF Gruppen with good profitability and solid order backlog ▪ Revenue: NOK 8,112 (7,485) million in Q4 and NOK 27,868 (27,025) million for the full year ▪ Earnings before tax: NOK 635 (614) million in Q4 and NOK 1 580 (1 447) million for the full year ▪ Profit margin: 7.8
Slide 3: Safety
4th quarter 2021 Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 10.0 4.9% 2.0 1.8 10.0 9.1 5.0% 4.6% 4.6% 8.3 8.0 4.0% 1.5 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% 2018 2019 2020 2021 4. kv. 2018 2019 2020 2021 4. kv. 2018 2019 2020 2021 4
Slide 4: Revenues and earnings – quarterly
4th quarter 2021 Revenues and earnings – quarterly Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 700 9.0% 8,112 635 8.2% 614 7.8% 8,000 7,485 600 8.0% 7,000 7.0% 500 6,000 6.0% 5,000 400 5.0% 4,000 300 4.0% 3,000 3.0% 200 2,000 2.0% 100 1,000 1.0% 0 0 0.0% Q4 20 Q1
Slide 5: Return on capital employed
4th quarter 2021 Return on capital employed Earnings before tax and interest Average capital employed Return on capital employed expense NOK million NOK million 5,000 2,000 60% 4,313 4,491 1,626 50% 4,000 1,502 1,500 40% 35% 36% 3,000 1,000 30% 2,000 20% 500 1,000 10% 0 0 0% 2017 2018 2019 2020 2021
Slide 6: Cash flow statement
4th quarter 2021 Cash flow statement Q4 Q4 Cash flow from operations NOK million 2021 2020 2021 2020 EBIT 639 633 1 609 1 480 NOK million Depreciations, amortisation and impairment 139 169 567 573 1,600 1,415 Change in net working capital -316 -472 -340 -233 1,400 Other adjustments / taxes paid -162
Slide 7: Net interest-bearing receivables and liquidity
4th quarter 2021 Net interest-bearing receivables and liquidity Net interest-bearing receivables Components net interest-bearing receivables NOK million NOK million 400 1,500 90 300 29 1,000 200 708 90 500 680 100 29 0 0 -100 -500 -200 -300 -1,000 -400 -1,500 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 20 Q1 2
Slide 8: Balance sheet
4th quarter 2021 Balance sheet NOK million 31.12.21 31.12.20 Equity share Non-current assets 7,490 7,760 Long term debt 1,343 Equity Current assets, ex. cash 4,937 4,394 3,572 Cash and cash equivalents 680 708 Total assets 13,108 12,862 Equity-share*: 27.3 % (27.2 %) Equity 3,572 3,494 Long term deb
Slide 9: Environment
4th quarter 2021 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 295,519 (402,535) tonnes in 2021 recycling Recycling rate 79% (86%) in 2021 % Tonnes Tonnes 100 96% 60,000 55,796 600,000 90% 90% 528,758 80 50,000 500,000 40,000 38,533 40
Slide 10: Business areas
Business areas 4th quarter 2021
Slide 11: Civil Engineering: Strong profitability improvement
Civil Engineering Strong profitability improvement NOK million Q4 21 Q4 20 2021 2021 Revenues 1,522 1,558 6,002 5,218 EBIT 221 141 515 314 EBT 220 123 510 292 EBIT % 14.5% 9.0% 8.6% 6.0% EBT % 14.5% 7.9% 8.5% 5.6% ▪ Strong profitability improvement both in the quarter and for the full year. Solid op
Slide 12: Construction: Somewhat weaker profitability in the quarter
Construction Somewhat weaker profitability in the quarter NOK million Q4 21 Q4 20 2021 2021 Revenues 2,839 2,247 8,865 8,684 EBIT 154 154 447 502 EBT 154 157 450 513 EBIT % 5.4% 6.8% 5.0% 5.8% EBT % 5.4% 7.0% 5.1% 5.9% ▪ Haga & Berg, AF Bygg Oslo and Strøm Gundersen reported excellent results in the
Slide 13: Betonmast: Weak profitability, large variation between units
Betonmast Weak profitability, but large variation in the results of the various units NOK million Q4 21 Q4 20 2021 2021 Revenues 2,090 2,116 7,170 7,862 EBIT 68 88 171 261 EBT 62 86 149 252 EBIT % 3.3% 4.2% 2.4% 3.3% EBT % 3.0% 4.0% 2.1% 3.2% ▪ The overall profitability is still weak, however there
Slide 14: Property: Good sales in the quarter
Property Good sales in the quarter, seven projects in production NOK million Q4 21 Q4 20 2021 2021 Revenues 15 15 35 33 EBIT 32 95 75 135 EBT 33 93 76 132 Capital employed 703 844 703 844 ▪ Good sales in the quarter, particularly in AF Eiendom’s project Bekkestua Have and Rolvsrud Idrettspark ▪ In t
Slide 15: Sweden: Revenue growth and very good results
Sweden Revenue growth and very good results NOK million Q4 21 Q4 20 2021 2021 Revenues 1,309 1,169 4,325 4,138 EBIT 125 88 262 219 EBT 124 87 257 212 EBIT % 9.6% 7.5% 6.1% 5.3% EBT % 9.5% 7.4% 6.0% 5.1% ▪ Sweden reported revenue growth and strong profitability in the quarter ▪ Kanonaden, HMB and AF
Slide 16: Energy and Environment: High activity and very good results
Energy and Environment High activity and very good results NOK million Q4 21 Q4 20 2021 2021 Revenues 312 294 1,152 962 EBIT 52 22 109 54 EBT 53 21 107 52 EBIT % 16.7% 7.5% 9.4% 5.6% EBT % 17.1% 7.0% 9.3% 5.5% ▪ Energy and Environment reported growth and very good results in the fourth quarter ▪ AF
Slide 17: Offshore: Revenue growth and strong profitability improvement
Offshore Revenue growth and a strong profitability improvement NOK million Q4 21 Q4 20 2021 2021 Revenues 225 162 848 672 EBIT 40 15 83 -25 EBT 37 10 78 -40 EBIT % 17.6% 9.1% 9.8% -3.7% EBT % 16.6% 5.9% 9.2% -5.9% ▪ Offshore reported a strong revenue growth and very good results in the quarter ▪ AF
Slide 18: Strong order backlog
4th quarter 2021 Strong order backlog NOK million Order backlog business areas 45,000 38,646 40,000 Offshore 1,515 Civil 35,000 Sweden Engineering 30,000 4,766 6,878 Energy and 25,000 Environment 20,000 714 Order backlog 15,000 38,646 10,000 (30,617) 5,000 Construction 0 Betonmast 2017 2018 2019 202
Slide 19: Profitable solutions to societal challenges
ROFITABLE ‘AL CHALLENGES.
Slide 20: Business Area Energy and Environment
Business Area Energy and Environment Services 2021 Lost-time injury frequency (LTIF) Energy Energy Energy Centrals rehab. efficiency Revenues (NOK million) Search Demolition dogs and Recycling and environ- of material explosive mental demolition clean-up EBIT % Development revenues and EBIT % Busine
Slide 21: Leading in socially beneficial business opportunities
AF Gruppen aims to be leading in creating socially beneficial business opportunities that will contribute to solving our times great environmental and societal challenges Elo (@) Environment 7 Company 13 ior @& PARTNERSHIPS: Wy 1 FOR THE GOALS: Customers and & suppliers ‘- ® Innovation
Slide 22: Energy efficient, renewable and environmentally friendly solutions
Energy efficient, renewable and ™ - environmentally friendly solutions = Made 2 millionm?more energy efficient = Energy production corresponding to 15.000 housings = New energy sources: Geothermal heating, _ seawater, sewage and solar energy _ Energy savings of 27 million kWh annually = Consumption
Slide 23: Profitable — both for business and environment
Profitable — both f environment tral Europe by 2050 e out approximately insumption
Slide 24: ▪ ▪ ▪
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Slide 25: Power poles removed and recycled
209 power poles were removed and recycled 10 km power lines were detonated in 115 simultaneous charges
Slide 26: When the are
When the are glaciers and mou appear as unaffecte
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Slide 28: Profitable societal challenges
Business Area Energy and Environment Profitable societal challenges Decom X Search dogs Securing areas exposed to avalanches Remotely controlled machines that Secure environmental clean-up Complex explosive demolition projects reduce risk and increase efficiency performed by search dogs both onshore
Slide 29: Strategy 2020-2024
Business Area Energy and Environment Strategy 2020-2024 ▪ Internal professional competence that gives AF Gruppen a competitive advantage ▪ Top three in our markets ▪ Seeking growth in new markets where we can exploit our competence within project industry ▪ Seeking increased productivity and competi
Slide 30: Summary
4th quarter 2021 Summary NOK million Q4 21 Q4 20 2021 2021 Revenues 8,112 7,485 27,868 27,025 EBIT 639 633 1,609 1,480 EBT 635 614 1,580 1,447 EBIT % 7.9% 8.5% 5.8% 5.5% EBT % 7.8% 8.2% 5.7% 5.4% ▪ Positive trend in the safety work of 2021 ▪ Revenue growth and good profitability ▪ Strong financial p
Slide 31: Thank you for your attention
Thank you for your attention Q1 | 13 May 2022