Slide 1: Q2 report Jan-Jun 2023
Q2 report Jan-Jun 2023 JONAS GUSTAVSSON, PRESIDENT & CEO BO SANDSTRÖM, CFO JULY 18, 2023
Slide 2: Q2 - Strong organic growth in a mixed market
Q2 - Strong organic growth in a mixed market 6,869 Net sales, SEK million — Continued strong demand in our industry and energy segments, while clear slowdown in the real estate segment 15.0 Total growth, % — Strong adjusted organic growth — Order stock at a continued high level — Result impacted by
Slide 3: Jan-Jun 2023
Jan-Jun 2023 13,784 18.4 13.2 Net sales, SEK million Total growth, % Adj. organic growth, % 1,110 8.0 EBITA, SEK million EBITA margin, % Note: EBITA and EBITA margin excluding items affecting comparability
Slide 4: Market update
Market update In general, high demand driven by the green industrial transition INDUSTRIAL & ENERGY SEGMENTS — Strong underlying demand in most industrial and energy segments such as mining & metal, energy transformation and electrification — Increased uncertainty in pulp & paper CAPEX investments I
Slide 5: Development by division
Development by division Infrastructure Process Industries AFRY X 9.5% adj. organic growth 20.5% adj. organic growth 1.6% adj. organic growth 4.0% EBITA margin 11.5% EBITA margin 0.5% EBITA margin 36% 21% 5% Industrial & Digital Solutions Energy Management Consulting 9.8% adj. organic growth 4.7% adj
Slide 6: Fortum, Stena Recycling, Swedish Transport Administration assignments
SWEDISH TRANSPORT FORTUM STENA RECYCLING ADMINISTRATION engineering assignment recycling plant for project management for for hydrogen study electric car batteries Södertörn crosslink
Slide 7: Net sales development
Net sales development Q2 2023 NET SALES, SEK MILLION SEK 6,869 million 26 000 Net sales 6 916 6 869 24 000 6 609 22 000 5 670 5 975 20 000 15.0% 10.8% 5 509 5 177 5 298 18 000 Total growth Adjusted organic growth 16 000 4 419 14 000 — Continued strong organic growth, supported by 12 000 sustained le
Slide 8: EBITA development
EBITA development Q2 2023 EBITA, SEK MILLION SEK 421 million 6.1% 689 2 300 EBITA EBITA margin 2 100 578 1 900 1 700 495 472 1 500 — EBITA decreased by 7% from last year, affected 451 by lower utilisation rate and a negative calendar 1 300 416 421 effect 384 1 100 369 — Costs for early termination o
Slide 9: Development by division
Development by division ADJUSTED ORGANIC GROWTH, % EBITA MARGIN, % 15.9 20.5 19.7 13.1 11.5 9.8 9.0 9.2 9.5 9.8 9.4 9.8 10.0 7.6 7.3 6.3 6.7 4.7 4.0 2.7 2.4 1.6 1.9 0.5 Infrastructure Industrial & Process Energy AFRY X Management Infrastructure Industrial & Process Energy AFRY X Management Digital I
Slide 10: Cash flow and financial position
Cash flow and financial position OPERATING CASH FLOW, SEK MILLION NET DEBT (EXCL IFRS16), SEK MILLION LIQUID ASSETS & CREDIT LINES, SEK MILLION 4,218 504 5,708 4,144 4,138 4,792 4,979 4,941 401 4,646 3,841 290 3,668 88 54 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 202
Slide 11: Working capital development
Working capital development NET WORKING CAPITAL OVER NET SALES R12, % 14% — Pöyry acquisition in 2019 reset the 12% 12,1% normalised level due to different cash flow 10% mechanics in larger scale projects 8,4% — Negative growth contracts NWC ratio, while 8% significant growth expands NWC ratio 5,2%
Slide 12: Financial targets
Financial targets 10% 10% 2.5x TOTA L G R O W T H 1 E B I TA M A R G I N 2 N E T D E BT / E B I T D A , E O Y 2.6x 2.5x 19 2.0x 17 8.6 8.5 1.7x 8.0 8.1 6 -4 2020 2021 2022 Q2 2023 2020 2021 2022 Q2 2023 2020 2021 2022 Q2 2023 R12 R12 — Sustained R12 level in Q2, — Moderate improvement on — Increased
Slide 13: Focus going forward
Focus going forward − Leverage on our strong position and high demand in the industry and energy segments − Mitigate effects from slowdown in the real estate segment, and improve utilisation − Strengthen profitability and position in Infrastructure in the long-term continues
Slide 14: Slide 14