Veidekke Asa · OSL:VEI
Veidekke Asa — Q2 2023 Earnings Presentation
21 slides from Veidekke Asa's earnings presentation, Aug 17, 2023
Slide 1: Q2 Second quarter 2023
Q2 Second quarter 2023 17 August 2023 Jimmy Bengtsson, Group CEO | Jørgen Wiese Porsmyr, 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 2023 2017 2018 2019 2020 2021 2022 2023 c-2 2
Slide 3: Highlights Q2 2023
Questions? Email ir@veidekke.no Highlights Q2 2023 • Revenue NOK 11.2 billion – up 13% on Q2 2022 • Pre-tax profit up 9% – profit margin remains almost flat • Order book further boosted – currently at NOK 45.0 billion • Uncertain market going forward
Slide 4: Key financial figures
Key financial figures Q2 revenues Q2 profit before tax NOK billion NOK million 12 450 400 10 350 8 300 250 6 11.2 200 391 387 9.9 9.8 9.9 360 355 4 150 100 2 50 0 0 20201 2021 2022 2023 20201 2021 2022 2023 1 Historical figures (2020) have been restated to reflect the spin-off of the property develo
Slide 5: The group maintains a strong order book
The group maintains a strong order book Commercial buildings’ share of portfolio has 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% Jun-21 Jun-2
Slide 6: Robust and broad-based order inflow in the quarter
Robust and broad-based order inflow in the quarter Activity remains high in most segments Order intake Q2 2023 NOK billion Construction segments Infrastructure segments 2.7 2.7 2.2 2.0 1.7 Commercial buildings Residential buildings 0.4 0.4 Civil engineering Public buildings Transportation 0.2 – rail
Slide 7: Q2 Results and financial status
Q2 Results and financial status Jørgen Wiese Porsmyr, CFO
Slide 8: Revenues, profits and profit margins
Revenues, profits and profit margins Group and business areas Q2 2023 Q2 2022 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 4 089 164 4.0% 3 214 128 4.0% Infrastructure Norway 2 436 109 4.5% 2 523 155 6.2% Construction Sw
Slide 9: Construction Norway
Construction Norway Revenues and profit margin Profit before tax 5 4.5% 5% 4.0% 4.0% 4.0% 3.4% 4 4% 172 164 3 3% 136 High activity 128 123 3.9 4.0 4.1 • Revenue increased 27% on Q2 2022 2 2% 3.2 3.1 • An effect from high 2022 order intake 1 1% 0 0% Profit margin on a par with a year ago Q2 22 Q3 22
Slide 10: Infrastructure Norway
Infrastructure Norway Revenues and profit margin Profit before tax – Q2 4 25% 24% 121 23% 6.2% 10.7% 7.5% 22% 21% 20% 3 4.5% 19% 18% 17% 16% 2.8 15% 14% 13% 2.4 2 12% 11% 10% 9% 8% 7% 1.4 1 6% 2.5 71 5% 2.5 Revenues down 3% on Q2 2022 4% 65 3% 2% 1% 0 0% -1% -2% -3% 64 -4% • Reduced activity in the
Slide 11: Construction Sweden
Construction Sweden Revenues and profit margin Profit before tax 3 5% 2.6 4% 1.8 49 2 2.3 2.2 2.3 3% 43 Revenue down 4% on Q2 2022 in local currency 37 2.7% 2% • High activity in the Gothenburg business 1 0.7% 1.9% 1.6% 18 • Significant decline in Stockholm and Malmö 0.5% 1% 10 residential segments
Slide 12: Infrastructure Sweden
Infrastructure Sweden Revenues and profit margin Profit before tax 11.1% 12% 10% 2 1.7 1.6 8% 1.4 1.2 1.2 8% revenue increase on Q2 2022 in local currency 6% 3.9% 4% 4.9% • Increase related to high production and expansion 1 3.7% 2% of ongoing projects 0% -0.7% Profits remained stable, with a slight
Slide 13: Denmark
Denmark Revenues and profit margin Profit before tax 1 10.7% 12% 7.7% 11% 7.0% 83 8.5% 10% 8.0% 0.8 0.8 0.8 9% 8% 0.7 62 24% revenue increase on Q2 2022 in local currency 7% 6% 53 55 5% 45 • High production in some larger projects 0.5 4% 3% 2% High profit margin 1% 0 0% • Consistently solid project
Slide 14: Financial position
Financial position Balance sheet Amounts in NOK million 30 June 2023 30 June 2022 Fixed assets 7 218 Current assets (excluding cash, cash equivalents and financial investments) 8 134 Cash, cash equivalents and financial investments 1 448 Assets 16 800 Equity 2 228 Long-term debt 2 356 Short-term deb
Slide 15: Financial position
Financial position Highlights H1 2023 Change in net interest-bearing assets NOK million Operations • Strong project liquidity in the Norwegian construction business Investments • Settlement of shares in the Gothenburg subsidiary BRA, valued at approx. NOK 640 million. Veidekke maintains 70% ownershi
Slide 16: Q2 Closing comments
Q2 Closing comments Jimmy Bengtsson, CEO
Slide 17: Good visibility in the short term
Good visibility in the short term Revenue expected to flatten out at a high level Revenue and order intake 12-month rolling, NOK billion Construction market • Uncertainty remains about future demand for residential 0.98 1 and commercial buildings • Developments in interest rates and inflation levels
Slide 18: Focus on the things we can influence
Focus on the things we can influence Diversified and distributed Flexible cost structure Selectivity and portfolio ● Handle various geographies ● Large share of costs are ● Selectivity and market and markets with unique related to project deliveries adaptation drivers ● Flexibility to adapt cost ● M
Slide 19: Summary
Summary 1 Solid growth and stable profitability • Strong revenue increase • Profit increase in NOK 2 Strong order book • Good order inflow in the quarter • Order book provides good visibility in the short term Good 3 Focus on improvements • Selectivity in line with strategy • Lift units with weak pr
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Slide 21: Revenues, profits and profit margins
Revenues, profits and profit margins First half 2023 30 June 2023 30 June 2022 Amounts in NOK million Revenue Profit before tax Profit margin Revenue Profit before tax Profit margin Construction Norway 8 066 300 3.7% 6 410 235 3.7% Infrastructure Norway 3 843 -194 -5.0% 4 237 6 0.1% Construction Swe