Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q2 2021 Earnings Presentation
31 slides from Af Gruppen Asa Class A's earnings presentation, Aug 26, 2021
Slide 1: AF Gruppen ASA Q2 2021
iT He AFGruppenASA FF Q2 2021 27 August 2021
Slide 2: Highlights
24 quarter 2021 Highlights AF Gruppen with solid growth, improved profitability and record high order backlog in Q2 2021 = Revenue: NOK 7,189 (6,568) million in Q2 and NOK 13,398 (13,175) million year-to-date = Earnings before tax: NOK 356 (258) million in Q2 and NOK 602 (465) million year-to-date =
Slide 3: Health and safety: injuries and sick leave
▪ ▪ ▪ ▪ Number of lost-time injuries and Number of lost-time injuries, injuries Number of reported unwanted Sick-leave increased due to Covid-19. severe personnel injuries not involving substitute work and incidents per man-year Covid-19 related absence estimated to resulting in lost-time per millio
Slide 4: Revenues and earnings - quarterly
24 quarter 2021 Revenues and earnings - quarterly NOK million NOK million Margin 8,000 7,189 700 10.0% 6,568. 600 8.0% 6,000 500 4000 400 356 6.0% 5.0% , 300 258 40% 2:3% 200 2,000 100 aisi5 0 0 0.0% Q220 Q320 Q420 Q121 Q221 Q220 Q320 Q420 Q121 Q221 Q220 Q320 Q420 Q121 Q221
Slide 5: Rolling average last four quarters
▪ ▪ ▪ * Rolling average last four quarters * Rolling average last four quarters
Slide 6: Cash flow statement
24 quarter 2021 Cash flow statement Q2 Q2 YTD YTD NOK million 2021 2020 2021 2020 EBIT 363 263 626 476 Depreciations, amortisation and impairment 140 137 276 270 Change in net working capital 159-112 44 99 Other adjustments / taxes paid -133 -87. -213—_-144 Cash flow from operations 529 202 734 701
Slide 7: Net interest-bearing debt and liquidity
24 quarter 2021 Net interest-bearing debt and liquidity MNOK MNOK 400 1,500 300 1,000 re BEaa 100 500 205 ° 0 100 49 “500 -200 “1,000 es = 300 (49) (33% -400 333 “1,500 *=* oa Q220 Q320 420. Q121 Q221 Q220 Q320 Q420 Q121 Q221 Net receivables (interest-bearing) WW Cash and cash equivalents 1 Lease li
Slide 8: Balance sheet and covenants
*Equity ratio excluding the effect of IFRS 16 would be 26.5% at 30.06.21 All the company’s covenants exclude the effect of IFRS 16
Slide 9: Waste sorted and recycling rate
▪ ▪ ▪ Waste sorted: 176,211 (159,530) tonnes Recycling rate 78% (87%) YTD 1 Regulatory requirement of 60% 23,077 tonnes = 23,077 tonnes CO -equivalents 141,597 tonnes = 10,927 tonnes CO -equivalents
Slide 10: Slide 10
Slide 11: Civil Engineering
Civil Engineering Solid revenue growth and improved profitability NOK million Q221 Q2 20 1H 21 1H 20 Revenues 1,568 1,188 3,077 2,358 EBIT 100 34 197 90 EBT 99 31 193 89 EBIT % 64% 2.8% 64% 3.8% EBT % 6.3% 2.6% 6.3% 3.8% * Solid revenue growth and improved profitability, overall solid operations in
Slide 12: Construction
Construction Strengthened profitability and good order intake in the quarter NOK million Q221 Q2 20 1H 21 1H 20 Revenues 2,165 2,134 4,019 4,450 EBIT 132 111 214 234 EBT 134 114 216 240 EBIT % 6.1% 5.2% 5.3% 5.3% EBT % 6.2% 5.3% 54% 54% = Several units delivered very good results in the quarter, inc
Slide 13: Betonmast
Betonmast Weak profitability ce. | NOK million Q221 Q2 20 1H 21 1H 20 , Revenues 1,797 1,997 3,453 3,820 EBIT 21 60 58 104 EBT 19 55 47 101 EBIT % 1.2% 3.0% 1.7% 27% EBT % 1.1% 2.8% 14% 2.6% Weak profitability, however large variation in the results of the various units Stable and good results from
Slide 14: Property
Property Good sales in the quarter NOK million Q221 Q2 20 1H 21 1H 20 Revenues 8 6 15 12 EBIT 9 10 16 14 EBT 9 9 16 12 Capital employed 922 903 922 903 = Good sales in the quarter. In total 148 (70) units were sold in the quarter, whereof AFs share was 70 (25) = Five projects with a total of 589 uni
Slide 15: Energy and Environment
Energy and Environment Increased activity and good profitability NOK million Q221 Q2 20 1H 21 1H 20 Revenues 323 219 573 443 EBIT 22 15 33 17 EBT 21 11 31 18 EBIT % 6.8% 6.9% 5.8% 3.8% EBT % 6.6% 5.2% 5.3% 40% = Energy and Environment delivered strong growth and continued good profitability = AF Dec
Slide 16: Sweden
Sweden Record high order backlog NOK million Q221 Q2 20 1H 21 1H 20 Revenues 1,099 1,064 2,058 2,099 EBIT 47 41 86 83 EBT 46 39 84 80 EBIT % 43% 3.8% 42% 3.9% EBT % 42% 3.7% 41% 3.8% Sweden delivered stable revenues and improved profitability in the quarter Kanonaden and AF Harndésand Byggreturer co
Slide 17: Offshore
Offshore Improved profitability and increased activity NOK million Q221 Q2 20 1H 21 1H 20 Revenues 257 174 416 302 EBIT 17 2 25 -51 EBT 16 4 22 -60 EBIT % 67% 1.0% 6.0% -16.8% EBT % 6.3% -2.5% 5.3% -19.8% = Considerable increase in activity and good profitability = AF Offshore Decom with successful
Slide 18: Strong order backlog
24 quarter 2021 Strong order backlog NOK million 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2017 2018 2019 Ba Ma Ma Ma 2020 2021 Offshore Other 1,651 976 Sweden Civil Engineerin 4,442 9 9 7,224 Energy and Environment 715 Order backlog 37,837 (34,155) Betonmast 10,476 Construction 13,05
Slide 19: Business area Construction
Business area Construction Q2 2021
Slide 20: Business area: Construction
Business area: Construction Strong position in the larger Oslo area and the Bergen Region AP 20
Slide 21: New construction and rehabilitation of housing, industry and public buildings
Business area: Construction New construction and rehabilitation of housing, industry and public buildings FAT Bygg Oslo FAT i Byggfornyelse A= byag @stfold fe Pa 4 é3 KhTs ASANE BYGGMESTER : STROM STROM GUNDERSEN (Ge GUNDERSEN as VESTFOLD as
Slide 22: Niche players covering rehabilitation, rebuilding and maintenance
Business area: Construction AP Niche players that cover the entire range of services within rehabilitation, rebuilding and maintenance AF FAS ASANE BYGGMESTER HANDVERK exe BERG @@aus LXSEFioLsTas PROSJEKT SUE NTE Rehabilitation ° Fire protection * Rebuilding ° Service & maintenance * Ventilation * R
Slide 23: Construction — Projects
Construction — Projects We have a broad project portfolio with a diversified customer group Furuset Hageby Customer: Omsorgsbygg Pron | | I FF LL tt | | i | qi) a or o, deo aig il Hasle Linje Sandsli 360 Customer : Haslelinje Nzering Customer : Selvaag Bolig Construction City Vikingtidsmuseet Custom
Slide 24: Construction — Health, safety and environment
Construction — Health, safety and environment Stable development within health, safety and environment Lost-time injury frequency 1,5 13 05 05 2018 2019 2020 2021 per Q2 Total recordable injury frequency 12,0 10,6 99 79 6,0 3,0 0.0 2018 2019 2020 2021 per Q2 Reported unwanted incident frequency 60 4
Slide 25: Construction - Revenues, earnings and order backlog
Construction - Revenues, earnings and order backlog Ar Strong profitability and significant increase in order backlog Earnings before tax Order backlog 1200 8,0% 12000 15.000 1000 5,9% 12000 9000 — ° —" 6.0% 800 9000 6000 600 40% 400 6000 3.000 2,0% 200 5000 - 0 0.0% MNOK 2019 2020 Last 12 MNoK 2019
Slide 26: Why we succeed within business area Construction?
Why we succeed within business area Construction? Ar Success factors to ensure solid profitability and growth over time Active risk management Competence Broad project portfolio Strategic project selection Customer and supplier (Shem) prselakten collaboration Entrepreneurial spirit and commercial fl
Slide 27: Market data from SSB
+65% +37% ▪ +47% +5% ▪ +5% ▪ ▪ Source: SSB Date: 20.08.2021
Slide 28: Construction — Drivers
Construction — Drivers Tomorrow's buildings are greener, require more expertise and closer cooperation internally and externally Focus on climate and Growth within Increased competition ja Pp ~ environment rehabilitation on recruiting Closer cooperation Digitalisation AP 28
Slide 29: Construction - Going forward
Construction - Going forward Ar The Construction business area is well equipped to seize opportunities and deliver for tomorrow's requirements and needs Well positioned for further profitability and growth ' = Continuous focus on strategic project selection and risk management ~ = The right expertis
Slide 30: Summary
24 quarter 2021 Summary NOK million Q221 Q2 20 1H 21 1H 20 Revenues 7,189 6,568 13,398 13,175 EBIT 363 263 626 476 EBT 356 258 602 465 EBIT % 5.0% 40% 47% 3.6% EBT % 5.0% 3.9% 45% 3.5% = Solid revenue growth and improved profit margin = Strong financial position = Good cash flow from operations = Di
Slide 31: Thank you for your attention
Thank you for your attention Q3 | 12 November 2021