Veidekke Asa · OSL:VEI

Veidekke Asa — Q2 2021 Earnings Presentation

19 slides from Veidekke Asa's earnings presentation, Aug 19, 2021

  1. Slide 1: Presentation Q2 2021

    Presentation Q2 2021 6. mai 2021 19 August 2021 Jimmy Bengtsson, Group CEO Jørgen Wiese Porsmyr, CFO

  2. Slide 2: Occupational health and safety

    Occupational health and safety Our primary priority Number of serious injuries Sickness absence 12-month rolling, Veidekke employees, Veidekke employees hired staff and sub-contractors 14 6% 12 5% 10 4% 8 3% 6 2% 4 2 1% 0 0% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2 © Veidekke

  3. Slide 3: Highlights Q2 2021

    Highlights Q2 2021 ● Revenues on a par with 2020 ● Strong results and increased profitability ● Good order intake in the quarter ● New organisational structure in Sweden Over spring 2021, Veidekke entered into six new contracts with the Norwegian Public Roads Administration and three county municipa

  4. Slide 4: Market development: On the tail end of a pandemic

    Market development On the tail end of a pandemic Limited impact on production Growth following lifting of restrictions Price development key raw materials ● Greatly varying prices of key raw ● Vaccination signals the beginning ● Strong economic growth at home materials such as steel, concrete of the

  5. Slide 5: Key financial figures: Q2 revenues and profits

    Key financial figures Q2 revenues and profits Q2 revenues Q2 pre-tax profit NOK billion NOK million 12 500 400 300 9 200 360 391 338 254 100 6 0 9.5 9.9 9.8 8.7 -100 -296 3 -200 -300 0 -400 2018 2019 2020 2021 2018* 2019 2020 2021 5 Historical figures have been restated in connection with the spin-o

  6. Slide 6: Strong order book

    Strong order book A shift towards public buildings Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 40 40 100 % 36 32 80 % 36 28 24 60 % 32 20 16 40 % 12 28 8 20 % 4 24 0 0% Jun-19 Jun-20 Jun-21 Jun-19 Jun-20 Jun-21 Jun-19 Jun-20 Jun-21 Co

  7. Slide 7: Results: Group and segments

    Results Group and segments Jørgen Wiese Porsmyr, CFO Q2 2021

  8. Slide 8: Revenues, profits and profit margins

    Revenues, profits and profit margins Group and segments Q2 2021 Q2 2020 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 564 138 3.9 % 3 601 140 3.9 % Infrastructure Norway 2 459 136 5.5 % 2 332 105 4.5 % Sweden 3 295 113

  9. Slide 9: Veidekke Construction in Norway

    Revenues and margin Profit before tax Veidekke Construction 5 5% 3.9% 3.9% in Norway 4 3 3.5% 3.8% 3.3% 3.6 4% 3% 140 155 138 3.6 3.4 4.1 3.5 118 113 ● Revenues on a par with last year 2 2% • Revenue from operations in Eastern Norway at a 1 1% high level 0 0% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 2

  10. Slide 10: Veidekke Infrastructure in Norway

    Revenues and margins Profit before tax Veidekke Infrastructure 4 9.5% 10% 9% 5.5% 8% in Norway 4.0% 112 3 4.5% 7% 6% 5% 2 2.8 2.5 4% 3% 1 2.3 2% 80 1.5 1% 0% 71 2.0 65 ● Revenues up 5% over previous year -1% 0 -2% -3% -4% -1 • Bitumen price increase has boosted Asphalt -5% -6% -2 -9.1% -7% 25 and Ag

  11. Slide 11: Veidekke in Sweden

    Revenues and margin Profit before tax Veidekke in Sweden 4 5% 113 3.5 3.3 4% 3 3.3 2.8 98 91 2.8 3% 86 3.4% 2 3.0% ● Revenues on a par with last year 2.7% 2.8% 2% • Up in Construction 1 1% 36 1.3% • Down in Infrastructure 0 0% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Revenues (NOK

  12. Slide 12: Veidekke in Denmark

    Revenues and margin Profit before tax Veidekke in Denmark 1 11.4% 12% 11% 7.0% 10% 9% 78 7.4% 7.0% 8% 6.2% 0.7 7% 0.6 0.6 6% ● Revenues down 17% in local currency 0.7 0.5 5% 42 47 43 4% 37 • Mainly related to lower commercial buildings 3% 2% activity in the Copenhagen region 1% 0 0% Q2 20 Q3 20 Q4 2

  13. Slide 13: Financial position

    Financial position Balance sheet Amounts in NOK million 30 June 2021 30 June 2020 Fixed assets 6 292 6 442 Current assets (excluding cash, cash equivalents and financial investments) 7 670 6 957 Cash, cash equivalents and financial investments 3 206 101 Assets, discontinued operations - 9 332 Assets

  14. Slide 14: Financial position

    Financial position Key points H1 2021 Change in net interest-bearing assets NOK million ● Weak cash flow due to customarily low season in certain segments during H1 ● Received NOK 600 million in payment related to completion of a project ● Paid dividend of NOK 5.75 per share 31 Dec 20 EBITDA Change

  15. Slide 15: Closing comments

    Closing comments Jimmy Bengtsson, CEO

  16. Slide 16: Streamlined organisational structure

    Streamlined organisational structure Sharpened focus on operations 1• A more efficient organisational structure Veidekke ASA 2• Shorter distance between management and projects Norway Sweden Denmark 3• Sharpened operational focus Construction Infrastructure Construction Infrastructure Hoffmann throu

  17. Slide 17: Closing comments

    Closing comments ● Good results and increased profitability ● Strong order intake in Q2 ● Revision of organisational structure in NYTT BILDE Sweden to ensure operational focus Veidekke has been contracted to construct an educational building for AVA Eiendom. The environmentally certified building in

  18. Slide 18: Vedlegg

    VEDLEGG • • • 1

  19. Slide 19: Revenues, profits and profit margins

    Revenues, profits and profit margins Group and segments First half 2021 First half 2020 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 7 035 251 3.6 % 7 181 258 3.6 % Infrastructure Norway 3 922 3 0.1 % 4 015 -102 -2.5 % S

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