Norconsult Asa · OSL:NORCO
Norconsult Asa — Q2 2024 Earnings Presentation
33 slides from Norconsult Asa's earnings presentation, Aug 23, 2024
Slide 1: Solid growth and stable profitability
Photo: Bård Gudim The reopening of Hovinbekken in Oslo, Norway, was awarded Oslo City’s architecture prize for 2024. Norconsult was responsible for project management and technical disciplines. Solid growth and stable profitability Second quarter and first half year 2024. CEO Egil Hogna and CFO Dag
Slide 2: Disclaimer
Disclaimer Not for general release, publication or distribution, directly or indirectly in Australia, Canada, Japan, the United States or to US persons or in any other jurisdiction where such distribution would constitute a violation of the relevant laws or regulations of such jurisdiction. This rep
Slide 3: Contents
Contents Highlights Projects Financial presentation Outlook Appendix Photo: Pontus Johanson 23/08/2024 Quarterly presentation - Second quarter
Slide 4: Norconsult – Every day we improve everyday life
Norconsult – Every day we improve everyday life 6 300 ~140 Our business areas* Sectors Employees Q2 2024 Offices 9% 8% Norway Head Office 30% Norway Regions 8% Public 2024 Sweden 2024 Denmark Private 16% Renewable Energy 29% Technogarden & Digital * Share of net revenue Our markets Solid financial t
Slide 5: Q2 Financial highlights
Norconsult is working on two carbon capture projects at Växjö Energi’s biofueled combined heat and power plant in Växjö, Sweden. Q2 Financial highlights Growth and stable profitability Net revenue* Net revenue increased to NOK 2 399m (2 097) Significant positive calendar effects in the quarter o
Slide 6: Market in line with previous quarters
Market in line with previous quarters Buildings & Architecture Infrastructure Energy & Industry Continued weak and uncertain private Infrastructure activity in line with previous High activity and healthy demand market, given its dependency on quarters. Continued focus on rail and continues in
Slide 7: High attractiveness amongst current and future employees
High attractiveness amongst current and future employees Ranked the industry’s most attractive employer for the third Employees consecutive year by Universum Awards (May 2024) within 6 300 employees (6 000 Q2 2023) Engineering Consulting 6 136 FTE’s (5 827 Q2 2023) Employees Nordic Office of
Slide 8: Acquisition of Wermlands Infrakonsult AB
Acquisition of Wermlands Infrakonsult AB Specialises in water, sewage, land, traffic, roads and streets for both public and private customers 11 employees Revenues of NOK 19 million in the fiscal year ending April 2024 Acquisition to be closed in Q3 2024 23/08/2024 Quarterly presentation - S
Slide 9: Projects
Norconsult has delivered the technical consultancy services for Norway largest primary school in Fjellhamar. Projects Photo: Bård Gudim
Slide 10: Fortescue Energy Hemnes / Holmaneset
Illustration: Nordic Office of Architecture Fortescue Energy Hemnes / Holmaneset Fortescue Energy, supported by Norconsult, is developing two green hydrogen and green ammonia projects in Project name: Fortescue Energy Hemnes / Norway, one located at Holmaneset in Bremanger and the other at Hemnes in
Slide 11: New Airport Bodø - Entreprise E6 Terminal-building
Illustration: Norconsult New Airport Bodø - Entreprise E6 Terminal- building Norconsult, in collaboration with Hent, Archus and LPO Architects, has secured the "Entreprise E6" contract for the Project name: New Airport Bodø (NLBO) - New Airport Bodø project. The contract involves constructing the te
Slide 12: The Ibsen Library in Skien, Telemark
Illustration: MAD and Kengo Kuma Associates The Ibsen Library in Skien, Telemark Norconsult and its partners Backe Vestfold Telemark, SLA, and VIAM have won the contract to design and build the Project name: Ibsenbiblioteket new Ibsen Library in Skien, Norway. The 4 500 m² building will serve as a p
Slide 13: The modernization project for Gråkallbanen
Gråkallbanen | Photo: Matthias Herzog The modernization project for Gråkallbanen On behalf of Trøndelag county municipality, Norconsult will plan, coordinate and execute the renovation project for Project name: The modernization project for Gråkallbanen. The assignment involves choosing the design a
Slide 14: Financial presentation
Ready for review Financial presentation CFO Dag Fladby Photo: Herman Dreyer
Slide 15: Q2 2024: Solid revenue growth and stable margins
Q2 2024: Solid revenue growth and stable margins Net revenue : NOK 2 399m (2 097) Q2 2024 Q2 2023 H1 2024 H1 2023 Organic growth of 7%*** Net revenue* NOKm 2,399 2,097 4,760 4,456 Adj. EBITA** NOKm 263 112 490 493 Higher number of FTEs and increased billing rates, partly Adj. EBITA margin %*** %
Slide 16: Quarterly performance significantly influenced by number of working days
Quarterly performance significantly influenced by number of working days Net revenue* Billing ratio LTM 2,500 2,359 2,333 2,360 2,399 10,000 80% 2,110 2,097 2,000 1,849 8,000 76.2% 1,705 75.1% 74.6% 1,522 NOK million 75% 73.7% 74.0% 1,500 6,000 72.3% 72.3% 72.1% 71.4% 1,000 4,000 70% 500 2,000 0 0 6
Slide 17: Change of periodisation of bonus based on profit sharing
Change of periodisation of bonus based on profit sharing For illustration purposes The periodisation of the bonus based on profit sharing has been based on actual results YTD and the bonus was indirectly affected by the number of working days Starting in Q2 2024, periodisation of the bonus has b
Slide 18: Q2 2024: EBITA contributors adjusted for calendar
Q2 2024: EBITA contributors adjusted for calendar NOKm Four of six segments contributed positively to increased EBITA adjusted for calendar effects Calendar effects of NOK 144m due to four more working days in the quarter 23/08/2024 Quarterly presentation - Second quarter 18
Slide 19: Norway Head Office and Norway Regions
Norway Head Office 30% Norway Regions 29% Q2 2024 Q2 2024 Solid organic growth of 9% and stable profitability Organic growth** of 6% Calendar effect of NOK 58m Calendar effect of NOK 57m Increased average billing rates, higher billing ratio and FTE growth Increase in FTEs and higher billing
Slide 20: Sweden and Denmark
Sweden 16% Denmark 8% Q2 2024 Q2 2024 Continued strong organic growth** of 15% Growth in net revenue mainly driven by acquisitions Calendar effect of NOK 7m Calendar effect of NOK 8m Increased FTE’s and higher billing rates Organic growth** was -3% Adj. EBITA margin adjusted for calendar at
Slide 21: Renewable Energy and Digital and Technogarden
Renewable Energy 9% Digital and Technogarden 9% Q2 2024 Q2 2024 Strong revenue growth and improved profitability Total revenue increased by 7% Calendar effect of NOK 13m Increased volume in Technogarden and increased sales of licenses Organic growth of 12% in Digital Adj. EBITA margin adjusted
Slide 22: Q2 2024: Strong cash flow from operations
Q2 2024: Strong cash flow from operations Cash flow from Operating activities NOK 501m (192) NOKm Q2 2024 Q2 2023 Significantly improved working capital levels compared Cash flow from Operating Activities 501 192 to previous periods Cash flow from Investing Activities -20 -74 Positive calendar e
Slide 23: Solid financial position
Solid financial position NOKm 30.06.2024 31.12.2023 Cash and cash equivalents and other current financial Non-current assets 2,903 2,850 assets NOK 1 017m Receivables 2,757 2,550 Cash and equivalents and other current financial assets 1,017 947 NIBD / adj. EBITDA Q2 2024 excl. IFRS 16 of: -1.22x
Slide 24: Orderbook of NOK 6.4bn (6.6bn in Q1 24)
Orderbook of NOK 6.4bn (6.6bn in Q1 24) Examples of projects included in the order intake during the quarter were: Project: Institute of Marine Research Project: Ellingsrud School Project: PYROCO2 at Herøya, Project: Inspection of road cuttings in & Directorate of Fisheries, Telemark rock in the reg
Slide 25: Outlook
Outlook Stable market outlook going forward Small signs of improvement in the market for Buildings & Architecture Stable demand in Infrastructure Activity remains strong within Energy markets and a mixed development in the Industry markets 23/08/2024 Quarterly presentation - Second quarter 25
Slide 26: Every day we improve everyday life
Every day we improve everyday life
Slide 27: Appendix
Ready for review Appendix Photo: Pontus Johanson
Slide 28: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Amounts in NOK million Q2 2024 Q2 2023 H1 2024 H1 2023 FY 2023 Operating revenue 2 710 2 357 5 341 4 969 9 567 Other income 2 5 3 3 7 External project costs 312 266 585 517 1 080 Operating revenue and other income after external project costs 2 399 2 097 4 760 4 456 8 4
Slide 29: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Amounts in NOK million ASSETS 30.06.2024 31.12.2023 EQUITY AND LIABILITIES 30.06.2024 31.12.2023 Goodwill 1 052 1 003 Share capital 6 6 Deferred tax assets 4 4 Treasury shares 0 -1 Other intangible assets 103 78 Share premium 221 221 Property plant and eq
Slide 30: Interim Consolidated Statement of Cash Flows
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS Amounts in NOK million Q2 2024 Q2 2023 H1 2024 H1 2023 FY 2023 Profit before tax 176 102 315 465 674 Taxes paid -40 -61 -141 -139 -161 Depreciation, amortization and impairment 20 20 40 39 83 Depreciation right of use asset 100 94 200 185 376 Change in wo
Slide 31: APM - reconciliations
APM - reconciliations Amounts in NOK million Reconciliation of adjusted EBIT, EBITA and EBITDA Q2 2024 Q2 2023 H1 2024 H1 2023 FY 2023 Operating profit (EBIT) 171 102 316 478 673 Depreciation and impairment of tangible and ROU assets 115 110 231 216 438 Amortisation and impairment of intangible asse
Slide 32: Largest shareholders August 19, 2024
Largest shareholders August 19, 2024 Shareholder Number of shares Percentage Country Type 1 DANSKE INVEST NORSKE INSTIT. II. 6 176 420 2.1% Norway Ordinary 2 The Bank of New York Mellon SA/NV 5 276 106 1.8% Belgium Nominee 3 VERDIPAPIRFONDET HOLBERG NORGE 5 200 000 1.8% Norway Ordinary 4 VERDIPAPIRF
Slide 33: Every day we improve everyday life
Every day we improve everyday life