Slide 1: Year-end report Jan-Dec 2023
Year-end report Jan-Dec 2023 JONAS GUSTAVSSON, PRESIDENT & CEO BO SANDSTRÖM, CFO FEBRUARY 2, 2024
Slide 2: Summary Q4
Summary Q4 GOOD GROWTH IN THE QUARTER 7,135 — Continued good growth of 8.0% and 5.9% adj. organic Net sales, SEK million — General good demand, with strong energy sector, variations in industrial segments and weak real estate – in line with Q3 — Solid order stock of SEK 19 billion 8.0 Total growth,
Slide 3: Market update
Market update INDUSTRIAL SECTOR — Mixed market with strong demand in several segments — Delayed investment decision processes in pulp & paper — Postponements and cancellations in some segments, e.g. telecom and IT ENERGY SECTOR — Strong demand driven by energy transition INFRASTRUCTURE SECTOR — Cont
Slide 4: Divisional overview
Divisional overview Strengthen position and profitability in infrastructure Scale globally in Grow Nordic decarbonisation, industrial and digital energy and portfolio, expand biobased materials internationally in niches Process Energy Management Infrastructure Industrial Industries Consulting & Digi
Slide 5: Sustainable kraft paper production in Bäckhammar, Sweden
Sustainable kraft paper Concert hall and Development of production in urban development power grids for Bäckhammar, Sweden project in Prague Statnett in Norway
Slide 6: 2023 highlights
2023 highlights Net sales Total growth — Strong demand for our services 27 BSEK 15% — Sharp slowdown in real estate segment — Several actions to strengthen the margin; expanding the improvement programme in Infrastructure and EBITA EBITA margin restructuring AFRY X 2.0 BSEK 7.5% — Strong global posi
Slide 7: AFRY ranked among top largest companies
AFRY ranked among top 10 largest companies I N D U S T R I A L P R O C E SS E S ENERGY #1 Pulp & Paper #2 Co-generation #2 Food & Beverages #3 Operations & Maintenance #4 Chemicals #7 Hydro #4 Steel #8 Transmission & Distribution #7 Mining 1) ENR Global source book top 225 International Design firms
Slide 8: Net sales development
Net sales development Q4 2023 NET SALES, SEK MILLION SEK 7,135 million 7 500 28 000 Net sales 7 000 26 000 6 500 24 000 6 000 22 000 8.0% 5.9% 5 500 20 000 Total growth Adjusted organic growth 5 000 18 000 4 500 16 000 — Strong organic growth remain also in the last 4 000 14 000 quarter 3 500 12 000
Slide 9: EBITA development
EBITA development Q4 2023 EBITA, SEK MILLION SEK 596 million 8.4% 700 2 300 EBITA EBITA margin 650 2 100 600 1 900 550 1 700 500 1 500 — EBITA increased 3% compared to last year 450 1 300 — Adjusted for calendar effects, margin well in line 400 1 100 with last year 350 900 — Restructuring costs (IAC
Slide 10: Restructuring cost
Restructuring cost RESTRUCTURING COSTS, SEK MILLION 55 8 — Lower restructuring costs for 47 Infrastructure lay-offs than anticipated — Continued efforts to optimise lease premises, this quarter fully related to Infrastructure — Finalisation of restructuring of AFRY X Infrastructure - AFRY X restruct
Slide 11: Development by division
Development by division ADJUSTED ORGANIC GROWTH, % EBITA MARGIN, % 20.4 13.0 11.9 11.5 11.5 11.2 10.2 15.2 8.4 8.5 7.8 10.4 9.9 10.6 6.3 9.4 8.9 8.0 7.6 -0.5 Infrastructure Industrial & Process Energy Management Infrastructure Industrial & Process Energy Management Digital Solutions Industries Consu
Slide 12: Cash flow and financial position
Cash flow and financial position OPERATING CASH FLOW, SEK MILLION NET DEBT (EXCL IFRS16), SEK MILLION LIQUID ASSETS & CREDIT LINES, SEK MILLION 4,144 4,218 4,138 4,223 958 5,708 5,611 3,833 4,941 4,868 4,646 504 401 278 54 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 20
Slide 13: Financial targets
Financial targets 10% 10% 2.5x TOTA L G R O W T H 1 E B I TA M A R G I N 2 N E T D E BT / E B I T D A 3, E O Y 2.5 2.4 17 8.6 8.5 2.0 15 1.7 8.0 7.5 6 -4 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 — Well above target, however — Margin effected negatively in — Strong cash flow finish
Slide 14: Focus for 2024
Focus for 2024 1 2 3 Improve profitability with Continue to build on our Improve efficiency and full focus on Infrastructure strong position in the flexibility in a mixed improvement programme industry and energy market sectors
Slide 15: Making Future
Making Future