Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q1 2022 Earnings Presentation
34 slides from Af Gruppen Asa Class A's earnings presentation, May 12, 2022
Slide 1: AF Gruppen ASA Q1 2022
AF Gruppen ASA Q1 2022 13 May 2022
Slide 2: Highlights
1th quarter 2022 Highlights Solid growth and record high order backlog, but lower profitability in Q1 ▪ Revenue: NOK 6,809 (6,209) million in Q1 ▪ Earnings before tax: NOK 209 (245) million in Q1 ▪ Profit margin: 3.1 % (4.0 %) in Q1 ▪ Cash flow from operations: NOK 607 (205) million in Q1 ▪ Order ba
Slide 3: Safety
1th quarter 2022 Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 2.0 10.0 6.0% 5.5% 8.3 8.1 8.0 5.0% 4.6% 1.5 4.0% 1.1 6.0 1.0 0.9 3.0% 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2019 2020 2021 Q1 22 2019 2020 2021 Q1 22 2019 2020 2021 Q1 22 Number of lost-time i
Slide 4: Revenues and earnings – quarterly
1th quarter 2022 Revenues and earnings – quarterly Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 700 8.0% 8,000 600 7.0% 7,000 6,809 6,209 6.0% 500 6,000 5.0% 5,000 400 4.0% 4.0% 4,000 300 3.1% 245 3.0% 3,000 209 200 2,000 2.0% 100 1.0% 1,000 0 0 0.0% Q1 21 Q2 21 Q3
Slide 5: Return on capital employed
1th quarter 2022 Return on capital employed Earnings before tax and interest Average capital employed Return on capital employed expense * NOK million NOK million 5,000 4,491 4,471 2,000 60% 1,617 1,581 50% 4,000 1,500 40% 36% 35% 3,000 1,000 30% 2,000 20% Target 500 1,000 10% 0 0 0% 2018 2019 2020
Slide 6: Cash flow statement
1th quarter 2022 Cash flow statement Cash flow from operations NOK million Q1 2022 Q1 2021 2021 EBIT 215 264 1 609 NOK million Depreciations, amortisation and impairment 130 136 567 1,600 1,415 Change in net working capital 421 -115 -340 1,400 1,200 Other adjustments / taxes paid -159 -80 -422 1,000
Slide 7: Net interest-bearing receivables and liquidity
1th quarter 2022 Net interest-bearing receivables and liquidity Net interest-bearing receivables Components net interest-bearing receivables NOK million NOK million 400 371 1,500 371 46 300 1,000 200 630 974 100 500 46 0 0 -100 -500 -200 -300 -1,000 -400 -1,500 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2
Slide 8: Balance sheet
1th quarter 2022 Balance sheet Equity share NOK million 31.03.22 31.03.21 31.12.21 Long term debt Non-current assets 7,608 7,689 7,490 Equity Current assets, ex. cash 4,993 4,614 4,937 Cash and cash equivalents 974 630 680 Equity-share*: 26.8 % Total assets 13,574 12,932 13,108 (27.5 %) Equity 3,639
Slide 9: Environment
1th quarter 2022 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 82,661 (105,369) tonnes YTD in 2022 recycling Recycling rate 78% (77%) YTD in 2022 % Tonnes Tonnes 100 95% 60,000 55,796 600,000 89% 88% 80 50,000 500,000 40,000 400,000 34
Slide 10: Business areas
Business areas 1th quarter 2022
Slide 11: AF Gruppen is strongly affected by challenging market conditions
1th quarter 2022 AF Gruppen is strongly affected by challenging market conditions SSB’s Material cost index ▪ Geopolitical turbulences creates uncertainty and less stability short term 280 Index 2015 = 100 ▪ The war in Ukraine, new lockdowns in China and the energy crisis has 260 led to further pres
Slide 12: Civil Engineering: Solid profitability and record high order backlog
Civil Engineering Solid profitability and record high order backlog NOK million Q1 22 Q1 21 2021 Revenues 1,242 1,509 6,002 EBIT 84 96 515 EBT 83 94 510 EBIT % 6.7% 6.4% 8.6% EBT % 6.7% 6.2% 8.5% ▪ Very good results from Målselv Maskin & Transport. Good results from AF Anlegg and Eiqon. Consolvo has
Slide 13: Construction: Low profitability and considerable provisions made
Construction Low profitability and considerable provisions made NOK million Q1 22 Q1 21 2021 Revenues 2,481 1,853 8,865 EBIT 18 82 447 EBT 17 82 450 EBIT % 0.7% 4.4% 5.0% EBT % 0.7% 4.4% 5.1% ▪ Price developments for raw materials (lumber and steel) and energy affects the construction unit’s profita
Slide 14: Betonmast: Low profitability, but large variation in results
Betonmast Low profitability, but large variation in the results of the various units NOK million Q1 22 Q1 21 2021 Revenues 1,243 1,222 5,196 EBIT 23 25 132 EBT 20 16 111 EBIT % 1.8% 2.1% 2.5% EBT % 1.6% 1.3% 2.1% ▪ High raw material and energy prices also affects the units in Betonmast ▪ Betonmast R
Slide 15: Property: Sale of Karvesvingen 7, low residential sales
Property Sale of the hotel and office building Karvesvingen 7. Low residential sales in Q1 NOK million Q1 22 Q1 21 2021 Revenues 6 6 35 EBIT 2 7 75 EBT 3 7 76 Capital employed 678 897 703 ▪ Low residential sales in the quarter. Sales contracts were signed for a total of 57 (122) homes, whereof AF’s
Slide 16: Sweden: Revenue growth, but lower profitability
Sweden Revenue growth, but lower profitability NOK million Q1 22 Q1 21 2021 Revenues 1,585 1,394 6,300 EBIT 46 51 302 EBT 44 49 295 EBIT % 2.9% 3.7% 4.8% EBT % 2.8% 3.5% 4.7% ▪ High prices on raw materials and delivery challenges also affects the Swedish business area ▪ Betonmast Sweden has become p
Slide 17: Energy and Environment: Improved margin in the quarter
Energy and Environment Improved margin in the quarter NOK million Q1 22 Q1 21 2021 Revenues 237 250 1,152 EBIT 12 11 109 EBT 11 9 107 EBIT % 4.9% 4.4% 9.4% EBT % 4.5% 3.7% 9.3% ▪ Energy and Environment reported improved margin in the quarter and a higher result ▪ AF Decom reported a good first quart
Slide 18: Offshore: Revenue growth and strong profitability improvement
Offshore Revenue growth and a strong profitability improvement NOK million Q1 22 Q1 21 2021 Revenues 185 160 848 EBIT 17 8 83 EBT 16 6 78 EBIT % 9.4% 4.9% 9.8% EBT % 8.6% 3.7% 9.2% ▪ Offshore reported a strong revenue growth and very good results in the quarter ▪ AF Offshore Decom had high activity
Slide 19: Strong order backlog
1th quarter 2022 Strong order backlog NOK million Order backlog business areas 45,000 42,697 40,000 Offshore Civil 35,000 1,583 Engineering Sweden 12,425 30,000 8,531 25,000 20,000 Energy and Order Environment backlog 15,000 763 42,697 10,000 (33,818) 5,000 Betonmast 0 6,258 2018 2019 2020 2021 2022
Slide 20: The Offshore Business Area
The Offshore Business Area Q1 2022 | Theme presentation
Slide 21: Stable development in health, safety and the environment
OFFSHORE – Health, safety and the environment Stable development in health, safety and the environment Frequency of reported Recycling and LTI rate TRIF rate near misses Sick leave source separation 21
Slide 22: The Offshore Business Area
The Offshore Business Area Market segments 1Q 2022 Lost-time injury frequency rate (LTIF) Engineering Offshore EPRD down & cleaning Removal Revenue (NOK Dismantling & million) disposal Facility services Offshore Electricifation HVAC Operating Wind margin Development in revenues and EBIT % Companies
Slide 23: Offshore removal: Dunlin Alpha campaign
The Offshore Business Area Offshore removal Ar Dunlin Alpha — one of our recently completed campaigns * EPRD (engineering, preparatory work, removal and recycling) of the Dunlin Alpha platform in the UK continental shelf of the North Sea * Total weight of approximately 20,000 tonnes * Consortium wit
Slide 24: AF Environmental Base Vats – Europe's most modern recycling facility
AF Environmental Base Vats – Europe’s most modern and environmentally sound facility for recycling and disposal of advanced offshore installations ▪ ▪ ▪
Slide 25: The Offshore Business Area
The Offshore Business Area ▪ ▪ ▪ ▪ ▪ Ulstein Group/Per Eide Studio.
Slide 26: The Offshore Business Area
The Offshore Business Area Photo: TAQA Sunrise Wind BRAE Bravo Curlew FPSO Client: Aker Solutions Client: TAQA Client: Shell UK Ltd Project Fjord1 electric ferries Project Siremar (HVAC for LNG Client: Fjord1 hybrid ferry) Kongen (Oslo-Nesodden) Client: Sefine Shipyard Client: Norled
Slide 27: Socially beneficial and environmentally friendly services
The Offshore Business Area Socially beneficial and environmentally friendly services = Contributes to the circular economy - the current scarcity of Strong environmental profile raw materials makes recycling more important than ever A 98% before, combined with increasingly stringent regulations © 6S
Slide 28: Strong profitability improvement and strong order backlog
OFFSHORE – Revenues, earnings and order backlog Strong profitability improvement and strong order backlog Earnings before interest and Revenue Order backlog tax (EBIT) in NOK million 28
Slide 29: Success factors to ensure healthy profitability and growth
Why do we succeed in the Offshore business area? Success factors to ensure healthy profitability and growth over time Culture Competence Strategy Active risk Good specialist Partner orientation management expertise Growth, both Strategic project geographically and Proper organisation selection throu
Slide 30: Strong position in the North Sea, significant global growth potential
The Offshore Business Area Strong position in the North Sea, with significant growth potential globally Russia North Sea . dn irae The Caspian Sea Southeast Asia Oo and the Black Sea oO The Gulf of Mexico o The Mediterranean Sea MENA West Africa South America Oceania a The size of the boxes illustra
Slide 31: Solutions for a sustainable, green restructuring of the offshore sector
OFFSHORE – Drivers Solutions for a sustainable, green restructuring of the offshore sector Offshore vind Circular economy Safe disposal of harmful substances Electrification of the offshore Adapted to regulations and sector increased digital requirements 31
Slide 32: The offshore business area is well equipped for tomorrow's requirements
OFFSHORE – the road ahead The offshore business area is well equipped to seize opportunities and deliver for tomorrow's requirements and needs Well positioned for further profitability and growth ▪ Solid order backlog, increasing demand and potential for further expansion of the value chain Global p
Slide 33: Summary
1th quarter 2022 Summary NOK million Q1 22 Q1 21 2021 Revenues 6,809 6,209 27,868 EBIT 215 264 1,609 EBT 209 245 1,580 EBIT % 3.2% 4.2% 5.8% EBT % 3.1% 4.0% 5.7% ▪ Positive trend in the safety work ▪ Revenue growth, but lower profitability due to higher prices and delivery challenges on raw material
Slide 34: Thank you for your attention
Thank you for your attention Q2 | 26 August 2022