Slide 1: Q4 Fourth quarter 2022
Q4 Fourth quarter 2022 8 February 2023 Jimmy Bengtsson, Group CEO | Jørgen Wiese Porsmyr, Group CFO Questions? Email ir@veidekke.no
Slide 2: Occupational health and safety
Occupational health and safety Our primary priority Number of serious injuries Sickness absence 12-month rolling, Veidekke employees, hired staff Veidekke employees and sub-contractors 6% 14 12 5% 10 4% 8 3% 6 2% 4 1% 2 0 0% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 c-2 2
Slide 3: Highlights Q4 2022
Questions? Email ir@veidekke.no Highlights Q4 2022 • by 6% from Q4 2021 • , and margin at 5.7% • down 6% from Q3 2022; and up 9% compared to Q4 2021 • of NOK 7.75/share for 2022 3
Slide 4: Key financial figures
Key financial figures Q4 revenues Q4 profit before tax NOK billion NOK million 12 700 600 10 500 8 400 6 300 622 10.8 10.0 10.3 10.2 200 391 393 4 100 2 0 -83 0 -100 1 1 2019 1 2020 1 2021 2022 2019 2020 2021 2022 1 Historical figures (2019–2020) have been restated to reflect the spin-off of the pro
Slide 5: The group's large order book maintained
The group’s large order book maintained Share of commercial buildings in the portfolio increased Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 100 % 44 48 44 40 80 % 40 36 32 60 % 36 28 24 20 40 % 32 16 12 28 20 % 8 4 24 0 0% Dec-20 Dec
Slide 6: Sustainability is at the core of Veidekke's achievements
Sustainability is at the core of Veidekke's achievements E S G ● Greenhouse gas emissions ● Work-related injuries ● Corruption and financial ● Materials and circularity ● Workers’ rights crime ● Biodiversity and habitats ● Diversity and equality 6
Slide 7: Veidekke is building the green shift
Veidekke is building the green shift Ongoing initiatives and long-term opportunities Renewable energy Resource Climate-robust and innovation efficiency infrastructure ● Recycled concrete, ● Veidekke Circular and Green ● Flood and avalanche concrete components Incubator established protection and env
Slide 8: Q4 Results
Q4 Results Group and segments Jørgen Wiese Porsmyr, Group CFO
Slide 9: Revenues, profits and profit margins
Revenues, profits and profit margins Group and business areas Q4 2022 Q4 2021 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 863 172 4.5% 3 474 139 4.0% Infrastructure Norway 2 530 189 7.5% 2 448 134 5.5% Construction Sw
Slide 10: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 5 4.5% 5% 4.0% 3.4% 4.0% 4.0% 4 4% 172 3 3% 139 Increase in activity across the operation 108 128 123 3.9 • Revenues up 11% over Q4 2021 2 2% 3.5 3.2 3.2 3.1 1 1% Profitability boosted 0 0% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2
Slide 11: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax Q4 4 10.7% 15% 14% 184 13% 12% 3 5.5% 6.2% 7.5% 11% 10% 2.8 9% 8% 2 7% 6% 5% 1 4% 2.4 1.7 2.5 2.5 3% 103 Revenues on a par with last year 2% 1% 0 0% -1% -2% -3% -1 -4% -8.7% -5% -6% 48 Profits clearly improved; strong performance -7%
Slide 12: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 5% 2.6 4% 2.5 49 2 2.3 1.8 2.1 3% 43 Revenues increased 11% in local currency 34 2.7% 30 from Q4 2021 1 2% 1.9% • Increase related to operations in Gothenburg 1.4% 1.4% 1% 18 • Significant reductions in Stockholm and Malmö 0 0.7% 0%
Slide 13: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 11.1% 12% 10% 2 1.7 8% 1.4 1.3 1.2 6% Revenues up 20% from Q4 2021 in local currency, 4.0% 1.0 3.9% 4% excl. divestment of industrial plot 4.9% 1 2% 0% Solid results -1 -0.9% -2% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22
Slide 14: Denmark/Hoffmann
Denmark/Hoffmann Revenues and profit margin Profit before tax 1 10.7% 12% 11.9% 11% 8.5% 10% 83 8.0% 9% 7.0% 0.8 8% 70 0.7 Revenue boosted by 29% from Q4 2021 7% 6% 53 45 in local currency 5% 0.6 0.4 0.5 4% 31 • Strong increase in Jutland 3% 2% 1% 0 0% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22
Slide 15: Financial position
Financial position Balance sheet Amounts in NOK million 31 December 2022 31 December 2021 Fixed assets 6 901 6 323 Current assets (excluding cash, cash equivalents and financial investments) 7 505 6 640 Cash, cash equivalents and financial investments 3 238 4 353 Assets 17 644 17 315 Equity 2 995 2
Slide 16: Financial position
Financial position Highlights 2022 Change in net interest-bearing assets NOK million Operating cash flow • Working capital increased/somewhat weaker project liquidity, particularly in the Swedish businesses • Payable tax is up from preceding year Other events • Acquisition of Constructa Entreprenør
Slide 17: Proposed dividend of NOK 7.75 per share for 2022
Proposed dividend of NOK 7.75 per share for 2022 Corresponds to 96% payout ratio Ordinary dividend NOK per share 12 140% ● Proposed dividend* NOK 7.75 (7.0) 120% 10 100% 8 ● Earnings per share** NOK 8.1 (7.1) 7.75 80% 7.00 6 5.75 60% ● Dividend ratio 96% (99%) 4 4.50 5.00 5.00 4.00 40% 3.50 3.00 2 2
Slide 18: Q4 Closing comments
Q4 Closing comments Jimmy Bengtsson, Group CEO
Slide 19: Key financial figures
Key financial figures Revenues and profits 2022 Revenues Profit before tax Profit margin NOK billion NOK million Percent 50 1800 5,0% 1500 40 4,0% 1200 30 3,0% 900 20 38.7 1 467 2,0% 36.6 38.1 37.6 1 342 3.6% 3.8% 34.0 600 1 134 3.0% 10 1,0% 300 596 1.6% 189 0.6% 0 0 0,0% 2018 2019 2020 2021 2022 20
Slide 20: Evident profit margin improvement
Evident profit margin improvement 5% profit margin target remains Norway Sweden Denmark Group Construction Infrastructure Construction Infrastructure Hoffmann Veidekke 2018 3.4% -6.0% 1.1% 3.9% 6.6% 0.6% 2020 3.6% 2.8% 2.2% 2.9% 7.5% 3.0% 2022 4.0% 5.2% 1.6% 3.1% 1 8.8% 3.8% 1 Infrastructure Sweden’
Slide 21: Well positioned in an uncertain market
Well positioned in an uncertain market Large order book of NOK 41 billion provides good visibility Geographical spread Serves various markets Flexible cost structure Other operating costs Payroll Materials Subcontractors • Demand varies • The public and private segments • Project deliverables accoun
Slide 22: Summary
Summary 1 Order book and visibility • Balanced and improved order book • Flexible and capital-light business model 2 Profitability targets stand firm • Selectivity in line with strategy • Continuous focus on improvement 3 Payment of dividends prioritised • Rock-solid balance sheet and good financial
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