Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q2 2022 Earnings Presentation
28 slides from Af Gruppen Asa Class A's earnings presentation, Aug 25, 2022
Slide 1: AF Gruppen ASA Q2 2022
AF Gruppen ASA Q2 2022 26 August 2022 Inspection of the new Drammen hospital. Photo: Colin Eick
Slide 2: 2nd quarter 2022 Highlights
2nd quarter 2022 Highlights AF Gruppen with significant turnover growth and good profitability ▪ Revenue: NOK 8,292 (7,189) million in Q2 and NOK 15,101 (13,398) million year-to-date ▪ Earnings before tax: NOK 426 (356) million in Q2 and NOK 635 (602) million year-to-date ▪ Profit margin: 5.1% (5.0%
Slide 3: Health and Safety
2nd quarter 2022 Health and Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 2.0 10.0 9.3 5.0% 4.6% 4.8% 1.7 8.3 8.7 4.1% 8.0 4.0% 1.5 1.3 1.1 6.0 3.0% 1.0 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2019 2020 2021 YTD Q2 22 2019 2020 2021 YTD Q2 22 2019 2020 2021
Slide 4: Revenues and Earnings – Quarterly
2nd quarter 2022 Revenues and Earnings – Quarterly Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 700 8.0% 8,292 8,000 600 7.0% 7,189 7,000 6.0% 500 5.1% 6,000 426 5.0% 5.0% 5,000 400 356 4.0% 4,000 300 3.0% 3,000 200 2,000 2.0% 100 1.0% 1,000 0 0 0.0% Q2 21 Q3 21 Q4
Slide 5: Return on Capital Employed
2nd quarter 2022 Return on Capital Employed Earnings before tax and interest Average capital employed Return on capital employed expense * NOK million NOK million 2,000 5,000 4,491 4,505 60% 1,617 1,649 50% 4,000 1,500 40% 36% 37% 3,000 1,000 30% 2,000 20% Target 500 1,000 10% 0 0 0% 2018 2019 2020
Slide 6: Cash Flow Statement
2nd quarter 2022 Cash Flow Statement Q2 Q2 YTD YTD Cash flow from operations NOK million 2022 2021 2022 2021 EBIT 421 363 636 626 NOK million Depreciations, amortisation and impairment 136 140 266 276 1,600 1,415 Change in net working capital 189 159 610 44 1,400 1,200 Other adjustments / taxes paid
Slide 7: Net Interest-bearing Receivables and Liquidity
2nd quarter 2022 Net Interest-bearing Receivables and Liquidity Net interest-bearing receivables Components net interest-bearing receivables NOK million NOK million 145 400 1,500 -333 300 1,000 205 200 145 1,086 100 500 0 0 -100 -500 -200 -300 -1,000 -400 -333 -1,500 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2
Slide 8: Balance Sheet
2nd quarter 2022 Balance Sheet Equity share NOK million 30.06.22 30.06.21 31.12.21 Long term debt Non-current assets 7,494 7,786 7,490 Equity Current assets, ex. cash 5,505 4,556 4,937 Cash and cash equivalents 1,086 205 680 Equity-share*: 22.2 % Total assets 14,085 12,547 13,108 (24.8 %) Equity 3,1
Slide 9: Environment
2nd quarter 2022 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 143,907 (176,211) tonnes YTD in 2022 recycling Recycling rate 81% (78%) YTD in 2022 % Tonnes Tonnes 100 97 95% 60,000 55,796 600,000 89 88% 88 87% 80 50,000 500,000 41,431
Slide 10: Business Areas
Business Areas 2nd quarter 2022 Road improvement at Senja, Målselv Maskin & Transport. Photo: David Gonzalez
Slide 11: Civil Engineering: Solid Order Backlog and Strong Results
Civil Engineering Solid Order Backlog and Strong Results NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 1,537 1,568 2,778 3 077 EBIT 99 100 183 197 EBT 96 99 179 193 EBIT % 6.5% 6.4% 6,6% 6,4% EBT % 6.3% 6.3% 6,4% 6,3% ▪ Very good results from AF Anlegg, Målselv Maskin & Transport and Consolvo. Eiqon
Slide 12: Construction: High Activity, but Lower Profitability
Construction High Activity, but Lower Profitability NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 2,916 2,165 5,397 4 019 EBIT 82 132 100 214 EBT 83 134 100 216 EBIT % 2.8% 6.1% 1,8% 5,3% EBT % 2.9% 6.2% 1,9% 5,4% ▪ Price developments for raw materials and wood products still affects the construction
Slide 13: Betonmast: Several Business Units with Good Results
Betonmast Several Business Units with Good Results NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 1,273 1,266 2,517 2,488 EBIT 29 16 52 41 EBT 30 14 50 30 EBIT % 2.3% 1.2% 2,0% 1.6% EBT % 2.3% 1.1% 2,0% 1.2% ▪ Betonmast Romerike, Røsand, Trøndelag and Østfold reported good results ▪ Betonmast Boligbyg
Slide 14: Property: Completed Sale of Commercial Building in Hasle
Property Completed Sale of Commercial Building in Hasle NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 5 8 11 15 EBIT 57 9 59 16 EBT 59 9 62 16 Capital employed 532 922 532 922 ▪ Property reports a good results in the quarter, affected by completion of the sale of office building Karvesvingen 7 in Has
Slide 15: Sweden: Revenue Growth and Improved Profitability
Sweden Revenue Growth and Improved Profitability NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 1,958 1,630 3,544 3 024 EBIT 75 53 121 104 EBT 74 51 118 101 EBIT % 3.8% 3.2% 3,4% 3,4% EBT % 3.8% 3.1% 3,3% 3,3% ▪ Sweden reports revenue growth and somewhat improved profitability in the quarter ▪ Kanonad
Slide 16: Energy and Environment: Solid Results Despite Lower Activity
Energy and Environment Solid Results Despite Lower Activity NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 255 323 492 573 EBIT 18 22 30 33 EBT 19 21 29 31 EBIT % 7.2% 6.8% 6,1% 5,8% EBT % 7.4% 6.6% 6,0% 5,3% ▪ Energy and Environment reports solid results ▪ AF Decom with lower activity compared to the
Slide 17: Offshore: High Turnover and Excellent Profitability
Offshore High Turnover and Excellent Profitability NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 305 257 489 416 EBIT 36 17 53 25 EBT 40 16 55 22 EBIT % 11.9% 6.7% 10,9% 6,0% EBT % 13.0% 6.3% 11,3% 5,3% ▪ Offshore reported a high level of activity and excellent profitability ▪ AF Offshore Decom had a
Slide 18: Strong Order Backlog
2nd quarter 2022 Strong Order Backlog NOK million Order backlog business areas 45,000 42,003 40,000 Other Offshore -206 35,000 1,435 Civil Sweden Engineering 30,000 8,479 12,193 25,000 20,000 Energy and Order Environment backlog 15,000 686 42,003 10,000 (37,837) 5,000 Betonmast 0 6,245 2018 2019 202
Slide 19: Risk Management
Risk Management Q2 2022 | Theme presentation Photo: Jonas Malmström
Slide 20: Our Mission and Values
Employee ownership Execution capability Entrepreneurial spirit OUR MISSION Value-based AF Gruppen shall create values and corporate culture opportunities through project activities with an uncompromising attitude towards safety and ethics. Active risk management Decentralised decision- making author
Slide 21: Risk Management in AF
Risk Management in AF ▪ ▪ ▪ ▪ Photo: Colin Eick
Slide 22: Why Do We Perform Structured Business Risk Management?
Risk Management in AF Why do We Perform Structured Business Risk Management? = Strengthens our ability to identify and manage risk = An arena for learning and exchanging experiences = Promotes commercialism throughout the entire organisation = Important checkpoint and awareness tool — brings perspec
Slide 23: Risk Management at AF - Our Processes
Risk Management at AF - Our Processes Risk Management - An Integral Part of All Commercial Activities = Quarterly review of risk in Corporate Management Team and for Board of Directors = Continuous development of risk management methodology = Quarterly review in each business unit = Review of the st
Slide 24: Tornado diagram
Tornado diagram ▪ Engineering 36% ▪ Client and contract 23% Sub contractors and material 36% Risk Groups Project management 13% ▪ Tech sub contractors 9% Admin costs 2% Opportunities Threats ▪ Risk profil of risk adjusted self-cost ▪ ▪ Probability ▪ ▪
Slide 25: Risk Management in AF
Risk Management in AF ▪ ▪ ▪ ▪ ▪ Photo: Colin Eick
Slide 26: Photo: Hampus Lundgren
Photo: Hampus Lundgren
Slide 27: Summary
2nd quarter 2022 Summary NOK million Q2 22 Q2 21 1H 22 1H 21 Revenues 8,292 7,189 15,101 13 398 EBIT 421 363 636 626 EBT 426 356 635 602 EBIT % 5.1% 5.0% 4,2% 4,7% EBT % 5.1% 5.0% 4,2% 4,5% ▪ Revenue growth and good profitability ▪ Strong cash flow from operations ▪ Strong financial position ▪ Solid
Slide 28: Thank you for your attention
Thank you for your attention Q3 | 11 November 2022 New children and youth hospital in Bergen. Photo: Helge Skodvin