Slide 1: AF Gruppen ASA Q2 2023
AF Gruppen ASA Q2 2023 25 August 2023 AF Energi. Photo: Hans Fredrik Asbjørnsen
Slide 2: Overview
2nd quarter 2023 Overview High activity level with a result below expectation in the 2nd quarter ▪ Revenue of NOK 7,853 (8,292) million in Q2 and NOK 15,246 (15,101) million year-to-date ▪ Earnings before tax of NOK 292 (426) million in Q2 and NOK 305 (635) million year-to-date ▪ Profit margin of 3.
Slide 3: Health and Safety
2nd quarter 2023 Health and Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 2.0 10.0 5.0% 4.6% 8.6 8.2 4.2% 3.9% 8.0 4.0% 1.5 6.9 1.1 1.1 6.0 3.0% 1.0 0.7 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2020 2021 2022 YTD Q2 23 2020 2021 2022 YTD Q2 23 2020 2021 2022
Slide 4: Revenues and earnings
2nd quarter 2023 Revenues and earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 550 6.0% 8,292 7,853 500 5.1% 8,000 450 426 5.0% 7,000 400 6,000 350 4.0% 3.7% 5,000 300 292 3.0% 4,000 250 200 3,000 2.0% 150 2,000 100 1.0% 1,000 50 0 0 0.0% Q2 22 Q3 22 Q4 22 Q1
Slide 5: Return on Capital Employed
2nd quarter 2023 Return on Capital Employed Earnings before tax and interest Average capital employed Return on capital employed expense * NOK million NOK million 4,912 2,000 5,000 4,561 40% 31.6% 1,442 4,000 30% 1,500 1,146 23.3% 3,000 1,000 20% Target 2,000 500 10% 1,000 0 0 0% 2019 2020 2021 2022
Slide 6: Cash flow statement
2nd quarter 2023 Cash flow statement Q2 Q2 YTD YTD Cash flow from operations NOK million 2023 2022 2023 2022 EBIT 303 421 318 636 NOK million Depreciation, amortisation and impairment 135 136 266 266 1,600 1,460 Change in net working capital -114 189 -178 610 1,400 Taxes paid -71 -60 -152 -175 1,200
Slide 7: Net interest-bearing debt and liquidity
2nd quarter 2023 Net interest-bearing debt and liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million 145 500 1,500 145 -1 582 1,000 0 494 500 -500 0 -500 -1 000 -1,000 -1,500 -1 500 -1 582 -2,000 -2 000 -2,500 Q2 22 Q3 22 Q4 22 Q
Slide 8: Balance Sheet
2nd quarter 2023 Balance Sheet Equity share NOK million 30.06.23 30.06.22 31.12.22 Long term debt Equity Non-current assets 8,119 7,494 7,630 Current assets, ex. cash 6,260 5,505 6,062 Cash and cash equivalents 494 1,086 765 Equity-share*: 19.5 % Total assets 14,872 14,085 14,457 (22.2 %) Equity 2,8
Slide 9: Environment
2nd quarter 2023 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 172,168 (143,907) tonnes YTD in 2023 recycling Recycling rate 78% (81%) YTD in 2023 % Tonnes Tonnes 100 95 96% 60,000 54,540 600,000 88 86% 87 88% 80 50,000 500,000 40,000
Slide 10: Business Areas
Business Areas 2nd quarter 2023 10 Nesjødammen. Photo: Ronny Danielsen
Slide 11: Civil Engineering: Good Result and Record High Order Backlog
Civil Engineering Good Result and Record High Order Backlog NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 1,505 1,537 2,956 2 778 EBIT 104 99 181 183 EBT 107 96 185 179 EBIT % 6.9% 6.5% 6.1% 6.6% EBT % 7.1% 6.3% 6.3% 6.4% ▪ Civil Engineering had high activity and reports a good result in Q2 ▪ Målselv
Slide 12: Construction: Improved Result and Good Order Intake
Construction Improved Result and Good Order Intake NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 2,674 2,916 5,264 5 397 EBIT 112 82 162 100 EBT 105 83 151 100 EBIT % 4.2% 2.8% 3,1% 1,8% EBT % 3.9% 2.9% 2,9% 1,9% ▪ Construction maintained a high activity level and delivers an improved result in Q2 ▪
Slide 13: Betonmast: Improved Profitability
Betonmast Improved Profitability NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 1,117 1,273 2,323 2,517 EBIT 33 29 67 52 EBT 37 30 77 50 EBIT % 3.0% 2.3% 2,9% 2.0% EBT % 3.4% 2.3% 3,3% 2.0% ▪ Betonmast reports improved profitability in Q2, with varying unit performances ▪ Betonmast Trøndelag, Romerike
Slide 14: Property: Low Sales in the Quarter
Property Low Sales in the Quarter NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 6 5 16 11 EBIT -3 57 -5 59 EBT -1 59 0 62 Capital employed 756 532 756 532 ▪ Property delivers a weak result in the quarter. The result of the second quarter last year was influenced by the sale of the hotel and commercia
Slide 15: Sweden: Large Variation in Business Units' Performances
Sweden Large Variation in the Business Units’ Performances NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 2,150 1,958 4,077 3 544 EBIT 27 75 -135 121 EBT 26 74 -138 118 EBIT % 1.3% 3.8% -3,3% 3,4% EBT % 1.2% 3.8% -3,4% 3,3% ▪ Sweden has a positive result, but with a large variation in the business uni
Slide 16: Energy and Environment: Good Revenue Growth and Good Result
Energy and Environment Good Revenue Growth and Good Result NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 326 255 613 492 EBIT 19 18 30 30 EBT 21 19 33 29 EBIT % 5.9% 7.2% 4,9% 6,1% EBT % 6.3% 7.4% 5,4% 6,0% ▪ Energy and Environment reports a good result, in line with the result in the same quarter la
Slide 17: Offshore: Revenue Growth and Good Profitability
Offshore Revenue Growth and Good Profitability NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 342 305 586 489 EBIT 17 36 35 53 EBT 12 40 28 55 EBIT % 5.0% 11.9% 5,9% 10,9% EBT % 3.6% 13.0% 4,8% 11,3% ▪ Offshore reports a good result for the quarter ▪ AF Offshore Decom reports good profitability and hi
Slide 18: Record High Order Backlog
2nd quarter 2023 Record High Order Backlog Order Backlog Business Areas NOK million Offshore 44,693 Civil 45,000 1,446 Engineering 40,000 Sweden 20,030 6,212 35,000 Energy and 30,000 Environment 1,484 Order 25,000 backlog 20,000 44,693 15,000 Betonmast 4,898 (42,003) 10,000 5,000 0 Construction 2020
Slide 19: Innovation
Q2 2023 | Temapresentasjon Innovation Q2 2023 | Theme presentation
Slide 20: Strategy 2024: Profitable Growth
Strategy 2024 Climate and Environment Disciplines and management PROFITABLE GROWTH Customers and suppliers Innovation
Slide 21: Improvement of existing business creates services and solutions for new profitable business
Improvement of existing business creates sevices and solutions that gives new profitable business Improve / Create new and transform profitable existing business business
Slide 22: Improve with digitalisation
Improve with digitalisation We seek improvement opportunities that gives increased competitiveness ▪ More efficient processes ▪ Higher productivity ▪ Better utilisation of resources - people and materials
Slide 23: Better decision support with higher utilisation of our data and AI
Better decision support, end products and project execution with higher utilisation of our data and AI Generative design RPA Digitalization of MoM (optimalisation of solutions and simulations) (robotic process automation) (availiability of analog information) Scanning Image recognition Sensorics (fo
Slide 24: Generative design
Generative design Optimalisation of solutions and simulations Photo: Tor Erik Schrøder / NTB
Slide 25: RPA
RPA Robotic process automation AI-Illustration: Midjourney
Slide 26: Digitalisation of MoM
Digitalisation of MoM Availiablity of analog information Photo: Bård Gudim / Betonmast
Slide 27: Scanning
Scanning Follow-up and quality improvement Photo: Bård Gudim / Betonmast
Slide 28: Image recognition
Image recognition Uncover risk and HSE deviation Photo: Kicki Nilsson / AF Gruppen
Slide 29: Sensorics
Sensorics Process optimisation and quality control Photo: Lars Barth-Heyerdahl / AF Gruppen
Slide 30: Actively seek new skills
Activly seek new skills Attract new knowledge and seek collaboration with other professional environments ▪ Better decision support ▪ Better overview and documentation ▪ Participation in research collaboration – EU and Construction City Cluster Illustration: Use of AI to optimize the operation of ma
Slide 31: Curiosity is a premise for innovation
Curiosity is a premise for innovation We develop our own And we seek collaboration with, or invest in, companies that have already developed new technology, solutions when they have or need industrial partners to scale up and further develop their good solutions for the industry potential to drive t
Slide 32: How to succeed with innovation going forward?
How to succeed with innovation going forward? Improve/transform Attract new Create new Return on existing business expertise that adds profitable investments in early value to our stage companies business deliveries
Slide 33: Slide 33
Slide 34: Summary
2nd quarter 2023 Summary NOK million Q2 23 Q2 22 1H 23 1H 22 Revenues 7,853 8,292 15,246 15 101 EBIT 303 421 318 636 EBT 292 426 305 635 EBIT % 3.9% 5.1% 2,1% 4,2% EBT % 3.7% 5.1% 2,0% 4,2% ▪ High acitivity ▪ Result below expectation ▪ Strong financial position ▪ Solid order intake: NOK 10,877 (7,59
Slide 35: Thank you for your attention
Thank you for your attention Q3 | 10 November 2023 Amerikalinjen. Foto: Hanna Kirkestuen