Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q3 2021 Earnings Presentation
32 slides from Af Gruppen Asa Class A's earnings presentation, Nov 12, 2021
Slide 1: AF Gruppen ASA Q3 2021
AF Gruppen ASA Q3 2021 12 November 2021
Slide 2: Highlights
3rd quarter 2021 Highlights AF Gruppen with solid profitability, record high order backlog and increased dividend ▪ Revenue: NOK 6,358 (6,366) million in Q3 and NOK 19,756 (19,540) million year-to-date ▪ Earnings before tax: NOK 344 (368) million in Q3 and NOK 945 (833) million year-to-date ▪ Profit
Slide 3: Safety
3rd quarter 2021 Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 10.0 2.0 1.8 10.0 5.0% 4.6% 4.6% 8.7 4.2% 8.0 8.0 4.0% 1.5 1.1 6.0 3.0% 1.0 0.8 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2018 2019 2020 HiÅ 3. kv. 2018 2019 2020 HiÅ 3. kv. 2018 2019 2020 HiÅ 3. k
Slide 4: Revenues and earnings – quarterly
3rd quarter 2021 Revenues and earnings – quarterly Revenues Earnings before tax Profit margin NOK million NOK million Margin 8,000 700 9.0% 7,000 600 8.0% 6,366 6,358 6,000 7.0% 500 5.8% 6.0% 5.4% 5,000 400 368 5.0% 344 4,000 300 4.0% 3,000 3.0% 200 2,000 2.0% 1,000 100 1.0% 0 0 0.0% Q3 20 Q4 20 Q1
Slide 5: Return on capital employed
3rd quarter 2021 Return on capital employed Average capital employed Earnings before tax and interest Return on capital employed (rolling average) expense (four quarters rolling) NOK million NOK million 5,000 2,000 60% 4,313 4,503 1,619 50% 4,000 1,502 1,500 40% 35% 36% 3,000 1,000 30% 2,000 20% 500
Slide 6: Cash flow statement
3rd quarter 2021 Cash flow statement Q3 Q3 YTD YTD Cash flow from operations NOK million 2021 2020 2021 2020 EBIT 344 371 970 847 NOK million Depreciations, amortisation and impairment 151 135 428 404 2,000 Change in net working capital -68 139 -24 238 1,500 1,274 Other adjustments / taxes paid -48
Slide 7: Net interest-bearing debt and liquidity
3rd quarter 2021 Net interest-bearing debt and liquidity Net interest-bearing debt Components net interest-bearing debt NOK million NOK million 400 1,500 341 341 300 1,000 200 893 500 593 100 0 0 -100 -26 -500 -200 -300 -1,000 -26 -400 -1,500 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3
Slide 8: Balance sheet
3rd quarter 2021 Balance sheet NOK million 30.09.21 30.09.20 31.12.20 Equity share Non-current assets 7,646 7,859 7,760 Long term debt 1,369 Equity Current assets, ex. cash 4,898 4,676 4,394 3,378 Cash and cash equivalents 593 893 708 Total assets 13,137 13,429 12,862 Equity-share*: 25.7 % (23.8 %)
Slide 9: Environment
3rd quarter 2021 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 240,243 (221,589) tonnes year-to-date recycling Recycling rate 77%% (86%) year-to-date % Tonnes Tonnes 97% 39,975 100 90% 91% 40,000 600,000 80 500,000 30,000 394,323 400,0
Slide 10: Business areas
Business areas 3rd quarter 2021 Photo: Max Emanuelson
Slide 11: Civil Engineering: Revenue growth and improved profitability
Civil Engineering Revenue growth and improved profitability NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 1,403 1,302 4,480 3,659 EBIT 98 83 294 173 EBT 97 80 290 169 EBIT % 7.0 % 6.4 % 6.6 % 4.7 % EBT % 6.9 % 6.1 % 6.5 % 4.6 % ▪ Solid revenue growth and improved profitability. The activity level inc
Slide 12: Construction: Weaker profitability, but strong order intake in the quarter
Construction Weaker profitability, but strong order intake in the quarter NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 2,007 1,987 6,026 6,437 EBIT 80 115 293 349 EBT 80 117 296 357 EBIT % 4.0 % 5.8 % 4.9 % 5.4 % EBT % 4.0 % 5.9 % 4.9 % 5.5 % ▪ Haga & Berg, Strøm Gundersen, AF Bygg Oslo and AF Bygg
Slide 13: Betonmast: Continued weak profitability
Betonmast Continued weak profitability NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 1,626 1,926 5,079 5,746 EBIT 44 68 103 172 EBT 40 65 87 166 EBIT % 2.7 % 3.5 % 2.0 % 3.0 % EBT % 2.5 % 3.4 % 1.7 % 2.9 % ▪ Weak profitability, however large variation in the results of the various units ▪ Stable and
Slide 14: Property: Good sales in new projects in the quarter
Property Good sales in new projects in the quarter NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 6 6 20 18 EBIT 27 27 43 41 EBT 27 26 43 38 Capital employed 836 976 836 976 ▪ Good sales in the quarter, particularly in AF Eiendom’s project Bekkestua Have. In total 158 (193) units were sold in the quar
Slide 15: Energy and Environment: Increased activity and improved profitability
Energy and Environment Increased activity and improved profitability NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 266 224 839 667 EBIT 24 15 57 32 EBT 23 14 54 32 EBIT % 8.9 % 6.5 % 6.8 % 4.7 % EBT % 8.8 % 6.3 % 6.4 % 4.8 % ▪ Energy and Environment delivered revenue growth and improved profitability
Slide 16: Sweden: Revenue growth and stable results. Record high order backlog
Sweden Revenue growth and stable results. Record high order backlog NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 958 870 3,016 2,969 EBIT 51 48 137 130 EBT 50 46 133 126 EBIT % 5.3 % 5.5 % 4.6 % 4.4 % EBT % 5.2 % 5.3 % 4.4 % 4.2 % ▪ Sweden delivered revenue growth and stable results in the quarter ▪
Slide 17: Offshore: Improved profitability and increased activity
Offshore Improved profitability and increased activity NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 207 208 623 510 EBIT 18 11 43 -39 EBT 19 10 41 -50 EBIT % 8.9 % 5.5 % 7.0 % -7.7 % EBT % 9.0 % 5.0 % 6.5 % -9.7 % ▪ AF Offshore Decom had high in activity and good profitability following solid operat
Slide 18: Strong order backlog
3rd quarter 2021 Strong order backlog NOK million Order backlog business areas 45,000 40,391 40,000 Offshore 35,000 Sweden 1,600 4,831 Civil 30,000 Energy and Engineering Environment 7,617 25,000 574 20,000 Order backlog 15,000 40,391 10,000 (31,269) 5,000 Betonmast Construction 0 2017 2018 2019 202
Slide 19: Business area Sweden
Business area Sweden Q3 2021 | Theme presentation Photo: Jonas Malmström
Slide 20: Our business in Sweden
Sweden Our business in Sweden Betonmast Göteborg Lovö-prosjektet Betonmast Mälardalen Betonmast Stockholm Betonmast Malmö Betonmast Anläggning
Slide 21: AF Gruppens' growth in Sweden
Sweden AF Gruppens’ growth in Sweden Revenue MNOK 8 000 AF Anlegg - Lovö 6 000 Betonmast 4 000 HMB 2 000 Kanonaden 0 2016 2017 2018 2019 2020 2021
Slide 22: Business Area Sweden
Business Area Sweden Business Area Sweden Services YTD 2021 Lost-time injury frequency (LTIF) Civil engineering Construction Rehabilitation 3 016 Revenues (MNOK) Property Demolition Prefab 4,6 % Operating margin Development revenues and EBIT% Business units ▪ Kanonaden ▪ AF Prefab Mälardalen ▪ AF By
Slide 23: Broad project portfolio with diversified customer group
Business Area Sweden Broad project portfolio with diversified customer group Kanonaden Kanonaden Wind power Logistics Customer: OX2 Customer: COOP AF Härnösand AF Bygg Syd Byggreturer Sjölunda Maja Beskowskolan avloppsreningsverk Customer: Umeå Customer: VA Syd kommun 23
Slide 24: Broad project portfolio with diversified customer group
Business Area Sweden Broad project portfolio with diversified customer group HMB AF Projektutveckling / Aspelin Ramm Fastigheter Mälarparkssskolan i Västerås Celsiusgatan Customer: Västerås stad Buyer Donniergymnasiet: Skandia Fastigheter HMB AF Prefab Mälardalen Åsikten Södra Customer: Riksbyggen 2
Slide 25: Strategy: We use same approach in Sweden as in Norway
Business Area Sweden Strategy: We use same apporach in Sweden as in Norway Value-based corporate culture Decentralised decision- making authority Execution-capability OUR MISSION AF Gruppen shall create values and opportunities through project activites with an uncompromising attitude towards safety
Slide 26: Stable development in the Swedish construction and civil engineering market
Business Area Sweden Stable development in the Swedish construction and civil engineering market Investments in construction and civil engineering in Sweden per segment 2017-2021P (SEK billion fixed 2020-prices) 350 The Swedish construction market is estimated at SEK 563 billion in 2021 300 Overall
Slide 27: We have experienced good development for our business in Sweden
Business Area Sweden – development in AF Gruppens’ geographies and segments We have experienced good development for our business in Sweden Investments in buildings and facilities by geography and segment 2020 and annual growth 2019-2021P Our perception of the market: SEK billion Civil Housing Indus
Slide 28: The situation around Cementa creates uncertainty
Business Area Sweden The situation around Cementa creates uncertainty Cementa produces 75% of the cement used in Sweden. The company's permit to mine limestone in Slite on Gotland expired on 31 October 2021. The company itself announces that they expect to maintain cement production throughout Q1 20
Slide 29: Solid order backlog – increased over the last quarters
Business Area Sweden Solid order backlog – increased over the last quarters Development order backlog Order backlog per Q3 2021 by business unit (NOK million) 4 831 3 825 Kanonaden HMB AF Bygg Syd AF Prefab i Mälardalen Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 AF Härnösand Byggreturer
Slide 30: Well positioned for the future
Business Area Sweden Well positioned for the future Focus on ▪ Manage a solid order backlog with a wide range of projects and segments ▪ Strategic project selection ▪ Active risk management Seek profitable growth ▪ AF has many skilled employees within a large market ▪ Strengthen the position in sele
Slide 31: Summary
3rd quarter 2021 Summary NOK million Q3 21 Q3 20 2H 21 2H 20 Revenues 6,358 6,366 19,756 19,540 EBIT 344 371 970 847 EBT 344 368 945 833 EBIT % 5.4 % 5.8 % 4.9 % 4.3 % EBT % 5.4 % 5.8 % 4.8 % 4.3 % ▪ Stable revenue and solid profit margin ▪ Strong financial position ▪ Good cash flow from operations
Slide 32: Thank you for your attention
Thank you for your attention Q4 | 11 February 2022