Slide 1: Q1 2014 Investor presentation
Q1 2014 Investor presentation Thursday, 8 May 2014
Slide 2: Contents
Contents ■ Highlights Chief Executive Officer Arne Giske ■ Profit and loss, segments and Group Vice President Terje Larsen, CFO ■ Areas of focus Chief Executive Officer Arne Giske Lista wind power plant 2
Slide 3: Picking up the pace moving into 2014
Picking up the pace moving into 2014 Maria Strøm Nakstad
Slide 4: Positive trend continues in Q1
Positive trend continues in Q1 ■ Strong growth in sales ■ Considerable improvement in profits ■ Good backlog of orders 4
Slide 5: Key figures
Key figures Q1 sales Q1 earnings before tax NOK billion MNOK 6,0 100 5,2 4,5 4,3 4,0 * 3,5 4 3,0 0 3,1 -14 -52 -63 -69 1,5 0,0 -100 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 5
Slide 6: Strong in all segments
Strong in all segments EBT: Construction EBT: Property EBT: Industry Q1 MNOK Q1 MNOK Q1 MNOK 160 90 0 80 140 -20 70 120 60 -40 100 50 -60 -127 40 45 -141 -144 -141 77 -140 80 -80 139 30 60 20 45 -100 38 40 87 10 -120 65 0 20 46 46 -11 -140 -10 0 -20 -160 2009 2010 2011 2012 2013 2010 2011 2012 2013
Slide 7: Change in earnings before tax
Change in earnings before tax Earnings before tax MNOK 20 44 -1 --6 10 4 0 -10 -20 -13 -30 10 -40 -50 18 -60 -63 14 -70 Q1 2013 Norway Sweden Denmark Norway Sweden Industry Other Q1. 2014 Construction Property 7
Slide 8: Good order backlog
Good order backlog Order backlog Order coverage next 12 months MNOK MNOK 20 Industry Denmark 20 Norway Sweden Denmark Industry Sweden Norway 18 16 16 14 12 12 10 8 8 6 4 4 2 0 0 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 At Q1 2014 At Q1 2013 8
Slide 9: Lower sales in Property
Lower sales in Property Sales during the quarter Under production at end quarter Number of units Number of units 300 2000 Gross figures Sweden Norway Gross figures Sweden Norway 1800 250 1600 1400 200 1200 150 1000 800 100 600 400 50 200 0 0 2008** 2009** 2010** 2011** Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
Slide 10: General Meeting held on 7 May 2014
General Meeting held on 7 May 2014 ■ Dividend of NOK 3.00 per share Ordinary dividen Extraordinary dividend Repurchase adopted 5,0 Total dividends of MNOK 401 4,5 To be paid out on 23 May 4,0 ■ Authorisation for the buy-back of 3,5 shares and share issue continued 3,0 2,5 ■ No changes in the com
Slide 11: Health, Safety and the Environment
Health, Safety and the Environment Lost time injury rate (LTI) Number of lost time injuries per million hours worked Accumulated* At Q1 14 At Q4 13 At Q1 13 Norway 5.5 4.2 6.1 Sweden 12.5 11.7 12.1 Denmark 2.8 1.5 4.9 Scandinavia 6.3 5.2 6.9 Absence due to illness Per cent Accumulated* At Q1 14 At Q
Slide 12: Robust start to 2014
Robust start to 2014 Good quality order backlog Strong financial position
Slide 13: Business areas
Vänerbanen and E45, Gothenburg Business areas
Slide 14: Business Areas Q1
Business Areas Q1 Q1 2014 Q1 2013 Figures in MNOK Operating rev. EBT Margin Operating rev. EBT Margin Construction Norway 2 806.0 63.8 2.3% 2 572.6 50.3 2.0% Construction Sweden 1 093.1 5.9 0.5% 735.0 -11.6 -1.6% Construction Denmark 419.4 17.0 4.0% 282.8 7.3 2.6% Total Construction 4 318.4 86.7 2.0
Slide 15: Construction Operations in Norway
Construction Operations in Norway ■ High level of activity Figures in MNOK Q1 2014 Q1 2013 2013 Sales up 9% Operating income 2 806.0 2 572.6 12 131.7 Construction with fastest growth 18% Operating profit (EBIT) 47.0 42.0 333.8 ■ Higher profit margin, 2.3% Net financial items 16.8 8.3 26.0 Impr
Slide 16: Construction operations in Sweden
Construction operations in Sweden ■ Rapid growth in sales 40% Q1 2014 Q1 2013 2013 Arcona traded for MNOK 250 Figures in MNOK during the quarter Operating income 1 093.1 735.0 3 499.4 Good production in Construction Operating profit (EBIT) 5.9 -12.6 12.8 ■ Negative performance trend Net financia
Slide 17: Construction operations in Denmark
Construction operations in Denmark ■ Increased operating income by Q1 2014 Q1 2013 2013 Figures in MNOK 49% Operating income 419.4 282.8 1 336.5 High production in the largest Operating profit (EBIT) 14.7 6.0 65.7 projects Net financial items 2.3 1.3 8.6 ■ Strong profitability Earnings before tax
Slide 18: Property development in Norway
Property development in Norway ■ Lower sales and profits Q1 2014 Q1 2013 2013 Reduced production and sales, Operating income 210.8 290.1 1 069.8 especially in eastern Norway Operating profit (EBIT) 32.6 41.6 160.0 More projects in collaboration Net financial items 0.5 4.8 10.0 with others Earnin
Slide 19: Property development in Sweden
Property development in Sweden ■ Rapid growth in operating income Q1 2014 Q1 2013 2013 Housing production on the rise Operating income 539.3 115.5 712.8 Project starts Operating profit (EBIT) 47.4 1.8 54.5 ■ Substantial improvement in profits Net financial items -3.5 -3.2 -4.0 Higher contribut
Slide 20: Capital tied up in Property
Capital tied up in Property Capital in Property NOK billion ■ Invested capital: NOK 3.0 bill. Norway: NOK 1.9 bill. Housing units under production Land for development 5,0 Invested capital Sweden: NOK 1.1 bill. 4,5 ■ Total assets: NOK 3.9 bill. 4,0 Housing units under construction 3,5 NOK 1.5
Slide 21: Industry operations
Industry operations ■ Seasonally low activity Q1 2014 Q1 2013 2013 Increased sales linked to Operating income 403.4 287.5 3 475.9 Operations and Maintenance Operating profit (EBIT) -134.4 -135.3 178.0 Performance on a par with Net financial items -6.5 -5.2 -19.8 preceding year Earnings before ta
Slide 22: Consolidated Financial Statement (IFRIC 15)
Raggovidda Wind Farm Consolidated Financial Statement (IFRIC 15)
Slide 23: Income statement
Income statement Q1 2014 Q1 2013 2013 Operating revenues 5 306.2 4 234.2 21 780.9 Operating expenses -5 218.6 -4 247.5 -20 833.3 Profit, associated companies 21.5 2.3 65.2 Depreciation -81.3 -73.2 -321.1 Operating profit (EBIT) 27.9 -84.2 691.7 Net financial items 11.7 8.4 26.6 Earnings before tax (
Slide 24: Balance sheet – Assets
Balance sheet – Assets Figures in MNOK (IFRIC 15) 31 March 2014 31 March 2013 2013 Goodwill and intangible assets 863.3 687.2 879.7 Deferred tax asset 55.5 62.4 55.5 Buildings/land 494.2 512.3 499.5 Machinery, etc. 1 239.4 1 210.4 1 229.6 Investments in associated companies 951.2 748.1 908.3 Financi
Slide 25: Balance Sheet - Equity and liabilities
Balance Sheet - Equity and liabilities Figures in MNOK (IFRIC 15) 31 March 2014 31 March 2013 2013 Equity 2 470.0 2 150.0 2 466.4 Pension liability and deferred tax 558.9 461.3 557.6 Bonds 750.0 - 750.0 Liabilities to credit institutions etc. 344.2 1 198.1 53.4 Other non-current liabilities 40.4 28.
Slide 26: Statement of cash flows
Statement of cash flows Q1 2014 Q1 2013 Construction Property Industry Dividend Group Group Amounts in MNOK (IFRIC 15) /Other Earnings before tax 103.6 76.9 -140.9 - 39.6 -75.8 Depreciation and write-downs 46.0 1.6 33.8 - 81.3 73.2 Other working capital, etc. 1.1 172.1 -60.2 - 113.0 208.2 Cash flow,
Slide 27: Focus on the tasks at hand
NEW PICTURE Motorway 73 between Stockholm and Nynäshamn Focus on the tasks at hand
Slide 28: Veidekke's main responsibilities
Veidekke's main responsibilities SECURE ASSIGNMENTS PERFORM ASSIGNMENTS ■ In keeping with Veidekke's expertise and ■ Participative collaboration capacity STRATEGY ■ Good production ■ Appropriate margin and risk profile ■ Injury-free Veidekke ■ Ensuring that HSE is taken into account ■ Orders receive
Slide 29: The B/C markets in Scandinavia
The B/C markets in Scandinavia Investments in B/C ■ Norway: Continued positive outlook NOK billion* 2011 prices. Growth in % for 2014-2015 300 B/C investments flattening out +0.8%** 250 ■ Sweden: Economic trends picking up B/C investments on the rise +4.9 %** 200 ■ Denmark: Gradual improvement 1
Slide 30: The Winery Hotel in Stockholm
The Winery Hotel in Stockholm ■ Turnkey project for building JANUARY 2014 a new concept hotel for Fabege ■ Contract value of SEK 200 million APRIL 2014 ■ Cooperation between Building Stockholm and Arcona AUTUMN 2016 30
Slide 31: OSL Gardermoen
OSL Gardermoen ■ Three new assignments for MARCH 2014 Oslo Lufthavn AS (OSL) worth a total of roughly NOK 700 million ■ 120-metre extension of the bridge outside the main APRIL 2014 terminal at OSL ■ Building and construction works in connection with extension of taxi runway Tango and construction o
Slide 32: Industry advancing in a growing market
Industry advancing in a growing market OPERATIONS AND MAINTENANCE CONTRACTS National Transport Plan ASPHALT NOK billion per year Operations and maintenance 16 Road Investmet +50% 14 CRUSHED STONE AND GRAVEL 12 +10% 10 8 6 OPERATIONS AND MAINTENANCE 4 2 0 2013 2014-2017 Source: National Transport Pla
Slide 33: Housing market
Housing market ■ A large and long-term need for Investments in housing SEK and NOK billion (2011 values) housing in both Norway and Sweden 140 Population growth Norway Sweden Immigration 120 Urbanisation 100 ■ The fundamental premises are 80 present for Veidekke: 60 Land bank 40 Competence
Slide 34: Land bank
Land bank 200 ■ A total of 13 600 units Veidekke's share 11 000 ■ In Norway: 6 100 units Veidekke's share 3 900 ■ In Sweden 2 200 7 500 units Veidekke's share 7 100 150 70% options 350 2 100 800 4 500 300 1 900 1 100 34
Slide 35: Veidekke's main responsibilities
Veidekke's main responsibilities SECURE ASSIGNMENTS PERFORM ASSIGNMENTS ■ In keeping with Veidekke's expertise and ■ Participative collaboration capacity STRATEGY ■ Good production ■ Appropriate margin and risk profile ■ Injury-free Veidekke ■ Ensuring that HSE is taken into account ■ Orders receive
Slide 36: Improved margins
Improved margins 12-month rolling sales and profit margin in Construction Norway Percentage and MNOK 14 000 8% 12 000 7% 6% 10 000 5% 8 000 4% 6 000 3% 4 000 2% 2 000 1% 0 0% Q1 00 Q1 01 Q1 02 Q1 03 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 36
Slide 37: Microsoft's head office in Denmark
Microsoft's head office in Denmark ■ The contract is a turnkey project worth DKK 450 million ■ 18 000 m2 of office space and a parking facility covering JANUARY 2014 12 000 m2 APRIL 2014 ■ The project is a result of teamwork between all areas of expertise MARCH 2015 37
Slide 38: CC Hamar Stadium
CC Hamar Stadium ■ The project is a turnkey JUNE 2012 project with a total value of NOK 900 million ■ Shops, offices, parking facilities and more APRIL 2014 ■ The private housing part of the project is developed together with OBOS/Veidekke Property (53 units) NOVEMBER 2014 ■ The project consists of
Slide 39: Svea Fanfar
Svea Fanfar ■ Veidekke is developing and SUMMER 2011 constructing a new housing area ■ Unique location on Östermalm in Stockholm MAY 2014 ■ 360 apartements with a high standard ■ Development in several steps over the period AUGUST 2017 2013-2020 39
Slide 40: UFP Skillingsmyr
UFP 05 Skillingsmyr ■ A new line on the Vestfold JANUARY 2013 Line ■ Contract value of NOK 960 millioner ■ 5,75 km double tracks MARCH 2014 between Farriseidet – Porsgrunn ■ The project includes two tunnels and two bridges SEPTEMBER 2016 40
Slide 41: Areas of focus
Areas of focus CONSTRUCTION PROPERTY INDUSTRY Improvement in Focus on sales and Focus on operations profitability products ■ Continuing to strengthen ■ Get projects ready for sale ■ Implementation capacity the organisation and ■ Optimise the land bank and cost awareness position in weak units ■ Taki
Slide 42: Summary
Summary 2014 off to a good start Areas of focus Positive outlook ■ Improved margins in ■ Focus on units with ■ The markets are on the Norway weak profitability road to recovery in ■ Sweden is on the road ■ Selective when Sweden to recovery choosing projects ■ Housing crisis 'called ■ Denmark deliver
Slide 43: Welcome back
Q2 2014 14 August 2014 Economic Activity Report 15 September 2014 Welcome back
Slide 44: APPENDICES
APPENDICES
Slide 45: Business areas
Business areas Figures in MNOK 2013 2012 Operating rev. EBT Margin Operating rev. EBT Margin Construction Norway 12 131,7 359,9 3,0 % 11 480,2 356,7 3,1 % Construction Sweden 3 499,4 11,4 0,3 % 3 555,6 87,7 2,5 % Construction Denmark 1 336,5 74,3 5,6 % 1 275,1 52,3 4,1 % Total Construction 16 967,5
Slide 46: Housing portfolio
Housing portfolio Property In production Completed Start-up In production Completed Start-up In production Housing portfolio - Net at 31 Dec. 2012 2013 2013 at 31 Dec. 2013 2014 2014 at 31. March 2014 Production - number of homes Norway 906 -500 343 749 -231 19 537 Sweden 371 -135 485 720 -142 64 64