Veidekke Asa · OSL:VEI
Veidekke Asa — Q3 2021 Earnings Presentation
20 slides from Veidekke Asa's earnings presentation, Nov 11, 2021
Slide 1: Presentation Q3 2021
Presentation Q3 2021 6. mai 2021 11 November 2021 Jimmy Bengtsson, Group CEO Jørgen Wiese Porsmyr, Group CFO
Slide 2: Occupational health and safety
Occupational health and safety Our primary priority Number of serious injuries Sickness absence 12-month rolling, Veidekke employees, Veidekke employees hired staff and sub-contractors 14 6% 12 5% 10 4% 8 3% 6 2% 4 2 1% 0 0% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2 © Veidekke
Slide 3: Highlights Q3 2021
Highlights Q3 2021 ● Revenues 3% below Q3 2020 ● Strong results; profitability increased to 5.7% (5.3%) ● Good order intake in the quarter ● Implementation of new organisational structure in Sweden completed Veidekke has entered into a cooperation agreement with OBOS about the development and constr
Slide 4: Key financial figures
Key financial figures Q3 revenues and profits Q3 revenues Q3 pre-tax profit NOK billion NOK million 12 600 500 9 400 6 300 505 530 9.0 9.5 9.3 8.5 200 417 390 3 100 0 0 2018 2019 2020 2021 2018 2019 2020 2021 4 Historical figures have been restated in connection with the spin-off of the property dev
Slide 5: Strong order book
Strong order book Order boost for the Norwegian operations in Q3 Revenues and order intake Order book Order book per segment 12-month rolling, NOK billion NOK billion Percent 40 40 100 % 36 32 80 % 36 28 24 60 % 32 20 40 % 16 28 12 20 % 8 4 24 0% Sep- Sep- Sep- 0 Sep- Sep- Sep- 19 20 21 Sep-19 Sep-2
Slide 6: Norway: Major contracts signed in Q3
Norway: Major contracts signed in Q3 Hartvig Nissen Secondary School, Oslo Government quarter, Oslo Majorstuhjemmene, Oslo School renovation and extension Project planning and construction Demolition of old building stock and of dual-floor basement structure construction of new care home NOK 550 mil
Slide 7: Results
Results Group and segments Jørgen Wiese Porsmyr, CFO Q3 2021
Slide 8: Revenues, profits and profit margins
Revenues, profits and profit margins Group and segments Q3 2021 Q3 2020 Amounts in NOK million Revenues Profit before tax Profit margin Revenues Profit before tax Profit margin Construction Norway 3 005 117 3.9% 3 381 118 3.5% Infrastructure Norway 2 777 325 11.7% 2 782 263 9.5% Construction Sweden
Slide 9: Veidekke Construction Norway
Revenues and margin Profit before tax Veidekke Construction 5 5% 3.9% 3.9% Norway 4 3 3.5% 3.8% 3.3% 3.6 4% 3% 155 138 3.4 4.1 3.5 118 113 117 3.0 ● Revenues 11% below Q3 2020 2 2% • Order book decline last year affects revenues this year 1 1% ● Profits on a par with last year’s; profitability up 0
Slide 10: Veidekke Infrastructure Norway
Revenues and margin Profit before tax Veidekke Infrastructure 4 11.7% 15% 14% 13% 12% Norway 9.5% 3 11% 5.5% 10% 9% 4.0% 2.8 8% 2 2.8 2.5 7% 245 6% 5% 229 1 4% 212 2.0 1.5 3% 2% 1% 0 0% ● Revenues on a par with last year -1% -2% -3% -1 -4% -5% -9.1% -6% • Asphalt, Aggregates: Tonnage is up by 15%; -
Slide 11: Veidekke Construction Sweden
Revenues and margin Profit before tax Veidekke Construction 3 5% Sweden 2 2.2 2.2 4% 72 2.0 3.3% 1.9 3% 53 1.8 49 49 ● Revenues up 4% over Q3 2020 2.9% 2.5% 2% 1 2.2% • Revenue boost in Stockholm region 1% 0.6% 11 0 0% ● Weak result and low profitability Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1
Slide 12: Veidekke Infrastructure Sweden
Revenues and margin Profit before tax Veidekke Infrastructure 2 7% Sweden 54 6% 49 5% 41 5.0% 33 1.3 4% 1 1.0 1.1 1.1 ● Revenue up 5% over Q3 2020 3.4% 3% 3.0% 2.8% 0.8 2% • Revenue increased in Southwest Sweden 1% -14 1.3% 0 0% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 ● Improved profits and profitability Q3 2
Slide 13: Construction Denmark
Revenues and margin Profit before tax Construction Denmark 1 11.4% 12% 11% 10% 8.0% 9% 78 7.4% 7.0% 7.0% 8% 0.7 0.6 7% 0.6 0.6 6% 50 ● Revenues on a par with Q3 2020 0.5 5% 47 43 4% 37 • Activity declined in Copenhagen area, 3% 2% increased in Jutland 1% 0 0% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 2
Slide 14: Financial position
Financial position Balance sheet Amounts in NOK million 30 September 2021 30 September 2020 Fixed assets 6 272 6 383 Current assets (excluding cash, cash equivalents and financial investments) 7 427 7 686 Cash, cash equivalents and financial investments 3 879 6 142 17 579 20 211 Assets 2 706 5 706 E
Slide 15: Financial position
Financial position Key points per Q3 2021 Change in net interest-bearing assets NOK billion 1.6 ● Strong cash flow in Q3 -0.5 • Net interest-bearing position increased -0.2 -0.1 by NOK 701 million 3.1 3.2 ● Good project liquidity in Swedish -0.8 operations thus far this year ● Investments in fixed a
Slide 16: Closing comments
Closing comments Jimmy Bengtsson, Group CEO
Slide 17: Swedish reorganisation completed
Swedish reorganisation completed Operational focus and improved profitability ● Reorganisation completed – operations split into Construction Sweden and Infrastructure Sweden Veidekke ASA ● Reinforced operational focus and greater proximity to selection and implementation of projects Norway Sweden D
Slide 18: Development in the wake of Covid-19
Development in the wake of Covid-19 Uncertainty related to prices and bottlenecks Post-reopening market growth Unpredictable prices Supply challenges Civil engineering Public buildings Non-Food Agricultural Index Commercial buildings Metals Index Apartments and small houses 2011 2014 2017 2020 2023
Slide 19: Closing comments
Closing comments ● Strong profits and improved margins ● Active management of uncertainty going forward ● Good order intake and increased order book Facsimile from Veidekke’s CMU in May 2021 19 © Veidekke
Slide 20: VEDLEGG
VEDLEGG • • •