Slide 1: Presentation 1st quarter 2019
Presentation 1 quarter 2019 st 9 May 2019 CEO Arne Giske and CFO Terje Larsen
Slide 2: Highlights 1st quarter 2019
Highlights 1st quarter 2019 • Low season in parts of the business • Historically high order book and continued turning towards non-residential buildings • Revenue growth and stable results in Construction • Increased residential sales and profit decline in Property Development Sweden Mineralvandsfab
Slide 3: Revenue and earnings 1st quarter
Revenue and earnings 1st quarter 1st quarter: Revenue 1st quarter: Profit before tax NOK bill. NOK mill. 9 100 6 50 8.5 47 7.1 6.5 3 5.9 0 5.0 -15 -11 -21 -42 0 -50 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 3 © Veidekke
Slide 4: Profit before tax 1st quarter per business area
Profit before tax 1st quarter per business area Construction Property Development Industrial NOK mill. NOK mill. NOK. mill. 200 200 100 50 150 150 0 -50 100 100 -100 -202 158 -217 148 50 50 -150 72 57 -200 - 0 Q1 18 Building Civil Sweden Denmark Q1 19 Q1 18 Norway Sweden Q1 19 -250 Construction Engi
Slide 5: Order intake and order book Construction
Order intake and order book Construction Revenue and order intake Order book Orders in revenue next 12 months NOK bill. - “Book-to-bill ratio” 1.12 NOK bill. NOK bill. 35 35 Building Construction Civil Engineering 35 Norway Sweden Denmark 30 30 30 25 25 25 20 20 20 15 15 15 10 10 10 5 5 5 12m revenu
Slide 6: Middelthunet – very good sales start
Middelthunet – very good sales start 329 units at Stepwise sales start for Construction start 164 of 183 units sold planned for 2020, with Majorstuen, Oslo 183 units from Q1 2019 completion in 2022 6 © Veidekke
Slide 7: Residential sales and construction
Residential sales and construction No. of units sold* Units under construction* 600 1,600 3,000 1,400 500 2,500 1,200 Sales per quarter 400 2,000 1,000 12m rolling 300 800 1,500 600 200 1,000 400 100 500 200 - 0 - 12m rolling sales Sweden Norway *Veidekke’s share 7 © Veidekke
Slide 8: Business areas 1st quarter
Business areas 1st quarter 1st quarter 2019 1st quarter 2018 Amounts in NOK million Revenue Profit Margin Revenue Profit Margin Building Construction Norway 3 390 110 3.2 % 3 018 101 3.3 % Civil Engineering Norway 1 143 -25 -2.2 % 1 009 3 0.3 % Construction Sweden 2 409 33 1.4 % 1 968 28 1.4 % Const
Slide 9: Building Construction Norway
Building Construction Norway 1ST QUARTER 2019 REVENUE AND MARGIN NOK bill. • Revenue growth from 1st quarter 2018 4.0 7% 3.5 • Particularly strong performance in Eastern Norway and Mid-Norway 3.6 3.4 6% 3.0 3.4 5% 3.0 3.0 2.5 4% • Stable margin 2.0 3.7 % 3% 1.5 3.3 % 3.5 % 3.2 % • Improved results d
Slide 10: Civil Engineering Norway
Civil Engineering Norway 1ST QUARTER 2019 REVENUE AND MARGIN* NOK bill. • High activity in ongoing projects 1.5 6% 1.4 1.0 1.1 4% 1.0 1.1 • The profitability of the project portfolio is weak 0.5 0.9 2% • Several ongoing large-scale projects were written down in 2018 0.0 0% and do not generate positi
Slide 11: Construction Sweden
Construction Sweden 1ST QUARTER 2019 REVENUE AND MARGIN NOK bill. • Revenue growth from 1st quarter 2018 4 7% • Acquisition in 2018 accounts for most of the increase 6% 3 5% 3.1 • Lower activity level in residential 4% 2 2.5 2.4 • Stable result and margin from 1st quarter 2018 2.0 2.3 3% 2.5 % 2% •
Slide 12: Construction Denmark
Construction Denmark 1ST QUARTER 2019 REVENUE AND MARGIN NOK bill. • Revenue growth 0.7 10% • High activity in the Copenhagen area 0.6 0.6 0.6 8% 0.5 0.6 0.5 0.5 0.4 7.0 % 7.0 % 6.9 % 6% • Stable result and margin from 1st quarter 2018 0.3 5.2 % 5.3 % 4% 0.2 • Solid overall project profitability in
Slide 13: Property Development Norway
Property Development Norway 1ST QUARTER 2019 PROFIT BEFORE TAX • A good result NOK mill. 80 • Increased sales in ongoing projects 70 71 60 • Some increase in residential production 50 • Construction started on three smaller projects with 44 residential units 40 39 30 35 • 174 units in three projects
Slide 14: Property Development Sweden
Property Development Sweden 1ST QUARTER 2019 PROFIT BEFORE TAX NOK mill. • Increased residential sales 120 • Good sales in Gothenburg and Malmö, low in the Stockholm area • No property development gains in the quarter 80 91 • Decrease in profit 40 53 • Lower production and price adjustments 45 35 •
Slide 15: Industrial
Industrial 1ST QUARTER 2019 REVENUE AND 12M MARGIN* NOK mill. • Asphalt: Low activity, with preparations for start of season 1,800 6% 1,500 1,701 5% • Aggregates: Increased profits and sound margins 1,200 1,339 1,379 4% • More activity in spoil reception, new landfill business, higher prices 900 2.2
Slide 16: Financial Statements
Financial Statements IFRS 16 © Veidekke
Slide 17: IFRS 16: New standard for leases from 2019
IFRS 16: New standard for leases from 2019 Leases must be capitalised* Effect on Balance Sheet Effect on Income Statement Pro forma effects for the balance sheet at year-end 2018 Pro forma effects for the income statement for 2018 • The lease obligation is recognised in the balance sheet at the • De
Slide 18: Income statement (IFRS)
Income statement (IFRS) 1st quarter Full year Amounts in NOK million 2019 2018 2018 Revenue 8 330 7 023 35 667 Operating expenses -8 232 -6 965 -34 656 Share of net income from associates and JVs 3 20 163 Depreciation/impairment -214 -139 -594 Operating profit -112 -61 580 Net financial income -1 -6
Slide 19: Balance sheet – Assets
Balance sheet – Assets Amounts in NOK million 31.03.2019 31.03.2018 31.12.2018 Goodwill and other intangible assets 1 924 1 569 1 957 Deferred tax assets - 55 - Land and buildings 1 346 605 646 Plant and machinery 2 815 2 306 2 694 Investments in associates and joint ventures 1 493 1 451 1 433 Finan
Slide 20: Balance sheet – Equity and liabilities
Balance sheet – Equity and liabilities Amounts in NOK million 31.03.2019 31.03.2018 31.12.2018 Equity 3 791 4 030 3 983 Pensions and deferred tax liabilities 848 903 846 Bonds 1 600 600 1 600 Amounts due to credit institutions 2 190 942 248 Other non-current liabilities 1 046 217 414 Total non-curre
Slide 21: Cash flow statement
Cash flow statement 1st quarter 2019 1st quarter 2018 Property Amounts in NOK million Construction Development Industrial Other1) Group Group Profit before tax 148 57 -202 -116 -113 -67 Depreciation/impairment 136 1 64 14 214 139 Other working capital -454 -1 329 -98 57 -1 823 -639 Cash flow from op
Slide 22: Highlights 1st quarter 2019
Highlights 1st quarter 2019 • Low season in parts of the business • Historically high order book and continued turning towards non-residential buildings • Revenue growth and stable results in Construction • Increased residential sales and profit decline in Property Development Sweden Veidekke is bui