Af Gruppen Asa Class A · OSL:AFG
Af Gruppen Asa Class A — Q4 2023 Earnings Presentation
31 slides from Af Gruppen Asa Class A's earnings presentation, Feb 15, 2024
Slide 1: AF Gruppen ASA Q4 2023
AF Gruppen ASA Q4 2023 15 February 2024 Maskinavdelingen. Photo: AF Gruppen
Slide 2: Overview
4th quarter 2023 Overview High activity level with a weak result in the 4th quarter ▪ Revenue of NOK 8,378 (8,568) million in Q4 and NOK 30,530 (31,205) million for the full year ▪ Earnings before tax of NOK 292 (502) million in Q4 and NOK 700 (1 400) million for the full year ▪ Profit margin of 3.5
Slide 3: Health and Safety
4th quarter 2023 Health and Safety Total recordable injury frequency Lost-time injury frequency (LTIF) Sick leave (TRIF) 2.0 12.0 5.0% 4.6% 4.1% 4.2% 10.0 4.0% 1.5 8.6 7.9 8.0 6.8 1.1 3.0% 1.0 0.9 6.0 0.8 2.0% 4.0 0.5 2.0 1.0% 0.0 0.0 0.0% 2020 2021 2022 2023 Q4 23 2020 2021 2022 2023 Q4 23 2020 202
Slide 4: Revenues and earnings
4th quarter 2023 Revenues and earnings Revenues Earnings before tax Profit margin NOK million NOK million Margin 9,000 8,568 700 6.0% 5.9% 8,378 8,000 600 5.0% 7,000 502 500 6,000 4.0% 3.5% 5,000 400 3.0% 4,000 292 300 3,000 2.0% 200 2,000 100 1.0% 1,000 0 0 0.0% Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q4 22
Slide 5: Return on Capital Employed
4th quarter 2023 Return on Capital Employed Earnings before tax and interest Average capital employed Return on capital employed expense * NOK million NOK million 2,000 6,000 40% 5,032 5,000 4,561 31.6% 1,500 1,442 30% 4,000 1,000 799 3,000 20% 15.9% Target 2,000 500 10% 1,000 0 0 0% 2019 2020 2021
Slide 6: Cash flow statement
4th quarter 2023 Cash flow statement Cash flow from operations NOK million Q4 2023 Q4 2022 2023 2022 EBIT 302 502 749 1 409 Depreciation, amortisation and impairment 169 128 576 528 NOK million Change in net working capital 612 -575 675 -43 1,600 1,552 Taxes paid -277 -82 -470 -299 1,460 Other 49 -1
Slide 7: Net interest-bearing debt and liquidity
4th quarter 2023 Net interest-bearing debt and liquidity Net interest-bearing receivables (debt) Components net interest-bearing receivables (debt) NOK million NOK million 500 1,500 -329 1,000 -641 0 500 347 -500 -329 0 -641 -500 -1 000 -1,000 -1,500 -1 500 -2,000 -2 000 -2,500 Q4 22 Q1 23 Q2 23 Q3
Slide 8: Balance Sheet
4th quarter 2023 Balance Sheet Equity share NOK million 31.12.23 31.12.22 Long term debt Non-current assets 8,407 7,630 Equity Current assets, ex. cash 5,894 6,062 Cash and cash equivalents 347 765 Equity-share*: 21.9 % Total assets 14,647 14,457 (24.2 %) Equity 3,203 3,494 Long term debt 1,338 1,25
Slide 9: Environment
4th quarter 2023 Environment Source separation rate Metal demolished and sorted for Recycling environmental parks Waste sorted: 287,588 (278,173) tonnes in 2023 recycling Recycling rate 78% (80%) in 2023 % Tonnes Tonnes 100 95 % 96 % 60,000 54,540 600,000 86 % 84 % 89 % 87 % 80 50,000 500,000 40,000
Slide 10: Business Areas
Business Areas 4th quarter 2023 10 Construction City. Photo: AF Gruppen
Slide 11: Civil Engineering: Revenue Growth and a Very Good Result
Civil Engineering Revenue Growth and a Very Good Result NOK million Q4 23 Q4 22 2023 2022 Revenues 2,141 1,678 6,776 5 919 EBIT 240 170 550 445 EBT 253 168 572 440 EBIT % 11.2% 10.1% 8.1% 7.5% EBT % 11.8% 10.0% 8.4% 7.4% ▪ Civil Engineering increases revenues by 28% compared to the same quarter last
Slide 12: Construction: Increased Profitability and Good Result
Construction Increased Profitablity and Good Result NOK million Q4 23 Q4 22 2023 2022 Revenues 2,633 3,061 10,182 11 090 EBIT 141 122 396 322 EBT 138 119 378 318 EBIT % 5.3% 4.0% 3,9% 2,9% EBT % 5.2% 3.9% 3,7% 2,9% ▪ Construction reports a good result with increased profitability compared to the sam
Slide 13: Betonmast: Negative Result and Varying Performance
Betonmast Negative Result and Varying Performance NOK million Q4 23 Q4 22 2023 2022 Revenues 1,171 1,376 4,553 5,145 EBIT -53 78 34 166 EBT -44 83 58 174 EBIT % -4.5% 5.6% 0,7% 3.2% EBT % -3.7% 6.0% 1,3% 3.4% ▪ Betonmast has a negative result in Q4. The negative result is mainly due to significant w
Slide 14: Property: Agreement to buy Ullevålsveien 114
Property Agreement to buy Ullevålsveien 114 in the Quarter NOK million Q4 23 Q4 22 2023 2022 Revenues 7 12 27 30 EBIT -11 21 -20 75 EBT -7 23 -8 82 Capital employed 818 654 818 654 ▪ Property has a negative result in the 4th quarter. There has been a write-down of NOK 20 million in the development p
Slide 15: Sweden: Negative Result and a Wide Range in Performance
Sweden Negative Result and a Wide Range in Performance NOK million Q4 23 Q4 22 2023 2022 Revenues 1,857 2,142 7,501 7 445 EBIT -16 44 -152 130 EBT -19 44 -160 127 EBIT % -0.9% 2.1% -2,0% 1,7% EBT % -1.0% 2.1% -2,1% 1,7% ▪ Sweden has a negative result in Q4. There are large variations in the units’ p
Slide 16: Energy and Environment: Revenue Growth and Very Good Result
Energy and Environment Revenue Growth and a Very Good Result NOK million Q4 23 Q4 22 2023 2022 Revenues 423 310 1 417 1 062 EBIT 39 33 90 84 EBT 40 32 96 82 EBIT % 9.2% 10.5% 6,3% 7,9% EBT % 9.5% 10.3% 6,8% 7,7% ▪ Energy and Environment increased revenues by 37% compared to the same quarter last yea
Slide 17: Offshore: Negative Result and Reduced Activity Level
Offshore Negative Result and Reduced Activity Level NOK million Q4 23 Q4 22 2023 2022 Revenues 288 368 1 082 1 238 EBIT -40 59 -124 164 EBT -42 58 -139 160 EBIT % -14.0% 16.0% -11,5% 13,2% EBT % -14.4% 15.9% -12,9% 12,9% ▪ Offshore has a negative result and reduced activity in the 4th quarter ▪ AF O
Slide 18: Stable Order Backlog
4th quarter 2023 Stable Order Backlog Order Backlog Business Areas NOK million Offshore Civil 45,000 41,991 1,410 Engineering 40,000 Sweden 18,140 5,128 35,000 Energy and 30,000 Environment 1,249 Order 25,000 backlog 20,000 41,991 15,000 Betonmast (39,765) 10,000 6,203 5,000 0 2020 2021 2022 2023 Co
Slide 19: Construction Norway
Construction Norway Q4 2023 | Theme presentation Construction City. Photo: Eirik Førde
Slide 20: Strong Position in Greater Oslo and the Bergen Region
Construction Norway Strong Position in Greater Oslo and the Bergen Region Revenue (2023) Results (2023) Safety – HSE (2023) 396 EBIT 10,182 NOK million 0.7 H1-value 3.9% NOK million EBIT % (5.3 % i Q4) 20 Fredrik Avløpsrenseanlegg. Photo: AF Gruppen
Slide 21: Niche Players Covering the Entire Range of Rehabilitation Services
Construction Norway Niche Players that Covers the Entire Range of Services in Rehabilitation, Rebuilding, and Maintenance Rehabilitation • Fire protection • Rebuilding • Services and maintenance • Ventilation • Roofing and tinsmith services • Facade rehabilitation • Tile, concrete, and stone rehabil
Slide 22: Broad Project Portfolio with Diversified Customer Group
Construction Norway – Niche Broad Project Portfolio with Diversified Customer Group Commercial buildings Residential buildings Schools Nygårdsgaten, Bergen Storøykilen Os School and Sportsarena Customer: Entra Customer: OBOS Customer: Halden kommune Hospitals Health centres Rehabilitation Drammen Ho
Slide 23: Construction City – AFs Biggest Construction Project Ever
Construction Norway Construction City – AFs Biggest Construction Project Ever ▪ Project value NOK million 2,700 ▪ Social misson construction of office spaces for future ways of working ▪ Interaction with developer OBOS – The project is being carried out as a turnkey project in collaboration with AF
Slide 24: A Selection of Construction Projects with High Social Benefit
Construction Norway A Selection of Construction Projects with High Social Benefit Nora Fredrikstad sewage Tøyenbadet treatment plant Kommunegården, Sandvika Museum of the Viking Danckert Krohn cultural Age centre
Slide 25: Climate and Environment – Inspiration from Bergen
Construction Norway – Climate and environment Climate and Environment – Inspiration from Bergen ▪ Climate and environment should in general be weighted with minimum 30% in all public procurements ▪ Bergen: Goal of 65% degree of circularity construction project within 2030 Baneveien ▪ Tomorrow’s buil
Slide 26: Stable Order Backlog
Construction Norway – Development in Order Backlog Stable Order Backlog NOK million 11,000 9,000 7,000 5,000 3,000 1,000 0 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
Slide 27: The Industry Should Expect High Uncertainty
The Industry Should Expect High Uncertainty – Requires High Competence and Adaptability
Slide 28: Our Curiosity Going Forward
Construction Norway Our Curiosity Going Forward ▪ Diversified project portfolio – Ability to adjust direction based on market and demand ▪ Basic knowledge for good project execution ▪ Further develop our competencies within climate, environment and digital solutions ▪ High satisfaction professiona
Slide 29: The Road Going Forward
Construction Norway The Road Going Forward Competition will be tougher short term, but there is still demand in the market ▪ Choose the right projects ▪ Demand for reliable partners strengthens The world is still uncertain, and it will continue to be for some time ▪ Risk management and continuous im
Slide 30: Summary
4th quarter 2023 Summary NOK million Q4 23 Q4 22 2023 2022 Revenues 8,378 8,568 30,530 31 205 EBIT 302 502 749 1 409 EBT 292 502 700 1 400 EBIT % 3.6% 5.9% 2,5% 4,5% EBT % 3.5% 5.9% 2,3% 4,5% ▪ Weak result ▪ Strong financial position ▪ Order intake: NOK 8,504 (8,617) million ▪ Stable order backlog:
Slide 31: Thank you for your attention
Thank you for your attention Presentation of Q1 15 May 2024 Water treatment plant in Fredrikstad. Photo: AF Gruppen