Nrc Group Asa · OSL:NRC
Nrc Group Asa — Q3 2021 Earnings Presentation
28 slides from Nrc Group Asa's earnings presentation, Nov 8, 2021
Slide 1: 3rd quarter 2021 result presentation
Image TBU 3rd quarter 2021 result presentation CEO Henning Olsen and CFO Dag Fladby 9 November 2021
Slide 2: Disclaimer
Disclaimer • This draft presentation (hereinafter referred to as the “Presentation”) has been prepared exclusively for information purposes and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments. • This Presentation includes and is based on, among o
Slide 3: Highlights Q3
Image TBU Highlights Q3 Revenue Order intake NOK 1.7 billion NOK 2.7 billion (NOK 2.0 billion Q3 2020) (NOK 1.2 billion Q3 2020) EBITA* Operating cash flow NOK 102 million NOK 238 million (NOK 88 million Q3 2020) (NOK 129 million Q3 2020) EBITA* margin 6.0 % (4.5% Q3 2020) * Before other income and
Slide 4: Highlights Q3 – Major wins
Highlights Q3 – Major wins FIN: Crown Bridges SWE + NOR: Trønder-Meråker- banen (Rail Construction) (Electrification) * NOK 1,085 million NOK 760 million * Range EUR 100-110 million 4
Slide 5: Health & safety
Health & safety 7.1 19.9 3.7% 0 LTI-1* LTI-2** SICKNESS ABSENCE SERIOUS INJURIES Q3 2020: 5.2 Q3 2020: 12.2 Q3 2020: 5.0% Q3 2020: 0 • Keep employees safe and minimize impact on operations Covid-19 • Entry restrictions have been lifted gradually in the Nordics *LTI-1: Injuries resulting in absence a
Slide 6: Profit & loss
Profit & loss (Amounts in NOK million) Q3 2021 Q3 2020 YTD 2021 YTD 2020 FY 2020 • Revenues down 13% from Q320 Revenue 1 698 1 956 4 356 4 871 6 449 • Adjusted for currency effects ~ -11% Operating expenses 1 548 1 816 4 117 4 650 6 185 EBITDA* 150 140 239 221 264 • EBITA* improvement of NOK 14 mill
Slide 7: Balance sheet
Balance sheet (Amounts in NOK million) 30.09.2021 30.09.2020 31.12.2020 ASSETS • Cash: NOK 565 million Intangible assets 2 900 3 028 3 010 Right-of-use assets 499 572 588 Total other non-current assets 206 316 255 • Interest-bearing debt reduced by NOK 71 million to Cash and cash equivalents 565 606
Slide 8: Cash flow
Cash flow Cash flow from operation* per quarter (Amounts in NOK million) Q3 2021 Q3 2020 YTD 2021 YTD 2020 FY 2020 (NOK million) 238 Profit/loss before tax 71 47 -19 -58 -94 Net cash flow from operating activities 238 129 209 217 316 200 Net cash flow from investing activities -17 -110 29 -148 -150
Slide 9: Strong order intake Q3 2021
Strong order intake Q3 2021 Order book* Order intake (NOK million) (NOK million) 7 526 7 647 2 683 6 835 • Order book NOK 7,647 million 6 693 6 475 2 166 634 5 961 • Order intake of NOK 2,683 million 921 8060 7152 7391 7566 7237 1 393 • YTD order intake NOK 5,709 million (+45% 6495 6326 1 319 6058 1
Slide 10: Solid financial position as per 30 September
Solid financial position as per 30 September Net interest-bearing debt Bank and bond maturities (NOK million) (NOK million) • Cash position of NOK 565 million • Undrawn Revolver Credit Facility of NOK 200 million 600 • Net interest-bearing debt of NOK 985 million 148 148 148 37 2021 2022 2023 2024 B
Slide 11: Operational review
Operational review MI
Slide 12: NRC Group Finland – Strong profitability
NRC Group Finland – Strong profitability Order backlog (NOK million) Q3 2021 Q3 2020 (NOK million) Revenue 793 831 EBITA* 87 84 3 384 EBITA* margin 10.9% 10.0% 2 986 Order intake 1,409 730 2 875 Coming 2 499 years • Organic growth** -1% • Lower activity and profitability in Materials • Strong profit
Slide 13: NRC Group Finland – Solid tender pipeline
NRC Group Finland – Solid tender pipeline NOK 3.9 billion tender pipeline1 NOK million value, # of tenders, next 9 months • Increased with NOK 1.1 Bn from Q221 pipeline, mainly from rail construction projects Tender pipeline • NOK 1.2 Bn increase from same period last year mainly related 3 500 3 200
Slide 14: NRC Group Norway – Improved profitability
NRC Group Norway – Improved profitability Order backlog (NOK million) Q3 2021 Q3 2020 (NOK million) Revenue 495 541 2 232 EBITA* 20 16 EBITA* margin 4.1% 3.0% 1 704 Order intake 697 312 Coming years 1 740 Current year 1 274 492 430 • Organic growth -8% • Improved profitability in all divisions Q3 20
Slide 15: NRC Group Norway - Solid tender pipeline
NRC Group Norway - Solid tender pipeline NOK 7.4 billion tender pipeline1 NOK million value, # of tenders, next 9 months 6 000 4 850 • Decrease of NOK 0.9 Bn in tender pipeline vs Q221 Strong pipeline #3 and an increase of NOK 1.2 Bn vs last year 5 000 • The new government will stop privatisation of
Slide 16: NRC Group Sweden – Improved order intake
NRC Group Sweden – Improved order intake Order backlog (NOK million) Q3 2021 Q3 2020 (NOK million) Revenue 411 583 EBITA* 0 -7 2 144 EBITA* margin 0% -1.2% 2 031 Order intake 576 152 1 668 1 845 Coming years Current year 363 • Organic growth** -28% 299 • Improved EBITA despite low revenues Q3 2021 Q
Slide 17: NRC Group Sweden – Continued high tender activity expected
NRC Group Sweden – Continued high tender activity expected NOK 8.7 billion tender pipeline1 NOK million value, # of tenders, next 9 months 6 000 5 350 • Decrease with NOK 0.3 Bn from Q221 pipeline, mainly from Rail construction projects 5 000 #23 • NOK 1.5 Bn higher than last year at same time, main
Slide 18: Operational improvements
Operational improvements MI
Slide 19: Status presented at Capital Market Update 2020
Status presented at Capital Market Update 2020 19
Slide 20: Measures presented at Capital Market Update 2020
Measures presented at Capital Market Update 2020 Win the right projects at the right price A fact-based analytical approach throughout the tender process by • Selecting projects based on competitive edge and commercial potential • Professionalising calculation process • Group-wide process for commer
Slide 21: Measures contribute to increased margin on new projects
Measures contribute to increased margin on new projects Status presented at Capital Market Update Projects won in 2020 and YTD 20212 Project margin1 on projects won before 2020 Project margin1 on project portfolio: Rail and Civil in Project portfolio: Rail and Civil in Sweden, and Rail in Norway Swe
Slide 22: Summary
Summary • Improved profitability Financials • Strong order intake • Solid cash flow • Continued focus on core processes in tendering and project Operations execution continues in order to restore profitability Outlook • 2021 EBITA*margin expected to be 1.75-2.5% • Confirmed strong outlook for invest
Slide 23: Appendix
Appendix MI
Slide 24: Improved order book and book-to-bill
Improved order book and book-to-bill Order book execution by country Book-to-bill ratio NOK million Period order intake/revenue 1,8 Book to bill Book to bill LTM/ LTM Revenue 3 500 3 241 3 043 1,6 3 000 1,4 1 248 2 500 1,2 1 627 0,9 2 000 1,0 0,8 0,8 1 500 1 364 1 025 0,6 509 644 1 000 0,4 363 500 9
Slide 25: Segments – Key figures quarterly development
Segments – Key figures quarterly development Reported** Reported** Reported Reported*** Reported Reported Reported Reported Reported Reported Reported Norway operations (NOK million) FY 2017 FY 2018 FY 2019 FY 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 20
Slide 26: Finland – Proposed higher level of investment in 2022
Finland – Proposed higher level of investment in 2022 Rail investments and maintenance spending1 EUR million, 2019-24 1045 • Proposed investments and spending at EURO 1.04 Bn 982 Budget proposal 889 914 916 • Investments and renewals at high levels 479 370 370 420 444 591 217 290 328 266 211 208 119
Slide 27: Sweden – Proposed budget 2022 in line with expectations
Sweden – Proposed budget 2022 in line with expectations Rail investments and maintenance spending1 SEK billion, 2019-24 • SEK 30.7 bn for 2021, +2% higher than estimated Budget proposal in the NTP 33,9 30,4 30,7 29,1 • SEK 16.7 bn mainly targeted to existing larger 27,9 28,2 Rail investments project
Slide 28: Norway - Proposed budget 2022 for operation and investments in line with 2021
Norway - Proposed budget 2022 for operation and investments is in line with 2021 and NTP Rail investments and maintenance spending1 NOK billion, 2019-24 • NOK 26.7 bn for 2022, at same level as 2021 and NTP for Budget proposal 2022 29,5 28,4 26,5 26,5 26,7 26,6 • Increase of NOK +3.0 bn from 2021 ma