Af Gruppen Asa Class A · OSL:AFG

Af Gruppen Asa Class A — Q3 2022 Earnings Presentation

29 slides from Af Gruppen Asa Class A's earnings presentation, Nov 11, 2022

  1. Slide 1: AF Gruppen ASA Q3 2022

    AF Gruppen ASA Q3 2022 11 November 2022 Removal of offshore platform. Photo: Weldcam

  2. Slide 2: Highlights

    3rd quarter 2022 Highlights AF Gruppen with Strong Growth, Varying Profitability and a solid Order Backlog  Revenue: NOK 7,537 (6,358) million in Q3 and NOK 22,638 (19,756) million year-to-date  Earnings before tax: NOK 263 (344) million in Q3 and NOK 898 (945) million year-to-date  Profit margin

  3. Slide 3: Health and Safety

    3rd quarter 2022 Health and Safety Total Recordable Injury Frequency Lost-time Injury Frequency (LTIF) Sick Leave (TRIF) 2.0 10.0 5.0% 4.6% 4.5% 8.3 8.4 8.0 4.0% 8.0 4.0% 1.5 1.2 1.1 6.0 3.0% 1.0 0.9 4.0 2.0% 0.5 2.0 1.0% 0.0 0.0 0.0% 2019 2020 2021 YTD Q3 22 2019 2020 2021 YTD Q3 22 2019 2020 2021

  4. Slide 4: Revenues and Earnings

    3rd quarter 2022 Revenues and Earnings Revenues Earnings Before Tax Profit Margin NOK million NOK million Margin 9,000 700 8.0% 8,000 7,537 7.0% 600 7,000 6,358 6.0% 500 5.4% 6,000 5.0% 5,000 400 344 4.0% 3.5% 4,000 300 263 3.0% 3,000 200 2,000 2.0% 100 1.0% 1,000 0 0 0.0% Q3 21 Q4 21 Q1 22 Q2 22 Q3

  5. Slide 5: Return on Capital Employed

    3rd quarter 2022 Return on Capital Employed Earnings Before Tax and Interest Average Capital Employed Return on Capital Employed Expense * NOK million NOK million 2,000 5,000 4,491 4,479 60% 1,617 1,558 50% 4,000 1,500 40% 36% 35% 3,000 1,000 30% 2,000 20% Target 500 1,000 10% 0 0 0% 2018 2019 2020

  6. Slide 6: Cash Flow Statement

    3rd quarter 2022 Cash Flow Statement Q3 Q3 YTD YTD Cash Flow from Operations NOK million 2022 2021 2022 2021 EBIT 271 344 907 970 NOK million Depreciations, amortisation and impairment 133 151 399 428 1,600 1,498 1,415 Change in net working capital -77 -68 532 -24 1,400 1,200 1,114 Other adjustments

  7. Slide 7: Net Interest-bearing Receivables and Liquidity

    3rd quarter 2022 Net Interest-bearing Receivables and Liquidity Net Interest-bearing Receivables Components Net Interest-bearing Receivables NOK million NOK million 254 400 1,500 -26 593 300 1,000 254 1,036 500 200 0 100 -500 0 -1,000 -26 -100 -1,500 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q

  8. Slide 8: Balance Sheet

    3rd quarter 2022 Balance Sheet Equity Share NOK million 30.09.22 30.09.21 31.12.21 Long term debt Non-current assets 7,705 7,646 7,490 Equity Current assets, ex. cash 5,955 4,898 4,937 Cash and cash equivalents 1,036 593 680 Equity-share*: 22.4 % Total assets 14,695 13,137 13,108 (25.7 %) Equity 3,2

  9. Slide 9: Environment

    3rd quarter 2022 Environment Source Separation Rate Metal Demolished and Sorted for Recycling Environmental Centre Waste sorted: 213,745 (240,243) tonnes YTD in 2022 Recycling Recycling rate 81% (77%) YTD in 2022 % Tonnes Tonnes 100 97 95% 60,000 55,796 600,000 90 88% 91 89% 50,133 80 50,000 500,000

  10. Slide 10: Business Areas

    Business Areas 3rd quarter 2022 10 E4 Förbifart Stockholm. Photo: AF Gruppen

  11. Slide 11: Civil Engineering: Solid Order Backlog and Strong Results

    Civil Engineering Solid Order Backlog and Strong Results NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 1,462 1,403 4,241 4,480 EBIT 92 98 275 294 EBT 93 97 272 290 EBIT % 6.3% 7.0% 6.5% 6.6% EBT % 6.4% 6.9% 6.4% 6.5%  Målselv Maskin & Transport and Consolvo continue to report very good resul

  12. Slide 12: Construction: Varying Results and Weaker Profitability

    Construction Varying Results and Weaker Profitability NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 2,631 2,007 8,029 6,026 EBIT 100 80 199 293 EBT 99 80 199 296 EBIT % 3.8% 4.0% 2.5% 4.9% EBT % 3.8% 4.0% 2.5% 4.9%  High activity and large variation in profitability. AF Bygg Oslo, Strøm Gund

  13. Slide 13: Betonmast: Weak Profitability

    Betonmast Weak Profitability NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 1,252 1,203 3,768 3,691 EBIT 37 37 89 78 EBT 41 33 91 63 EBIT % 3.0% 3.1% 2.4% 2.1% EBT % 3.3% 2.7% 2.4% 1.7%  Large variation in the business unit’s results contributes to weak profitability  Betonmast Romerike repo

  14. Slide 14: Property: Low Residential Sales in the Quarter

    Property Low Residential Sales in the Quarter NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 7 6 18 20 EBIT -5 27 54 43 EBT -3 27 59 43 Capital employed 548 836 548 836  Low residential sales in the quarter. Sales contracts signed for a total of 89 (158) residential units in the quarter, wher

  15. Slide 15: Sweden: Demanding Quarter with Negative Results

    Sweden Demanding Quarter with Negative Results NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 1,759 1,383 5,303 4,407 EBIT -35 58 86 162 EBT -36 57 82 157 EBIT % -2.0% 4.2% 1.6% 3.7% EBT % -2.0% 4.1% 1.6% 3.6%  Sweden reports negative results due to adjustments to project estimates in Betonma

  16. Slide 16: Energy and Environment: Very Good Profitability

    Energy and Environment Very Good Profitability NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 261 266 753 839 EBIT 21 24 51 57 EBT 21 23 50 54 EBIT % 8.2% 8.9% 6.8% 6.8% EBT % 7.9% 8.8% 6.7% 6.4%  Energy and Environment reports very good results in the quarter  AF Decom reports a very good r

  17. Slide 17: Offshore: Excellent Profitability and Order Backlog

    Offshore Excellent Profitability and Order Backlog NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 380 207 870 623 EBIT 51 18 105 43 EBT 46 19 102 41 EBIT % 13.4% 8.9% 12.0% 7.0% EBT % 12.2% 9.0% 11.7% 6.5%  AF Offshore Decom reports excellent profitability, as a result of high production and

  18. Slide 18: Strong Order Backlog

    3rd quarter 2022 Strong Order Backlog NOK million Order Backlog Business Areas 45,000 39,716 40,000 Offshore Civil 35,000 1,927 Engineering Sweden 11,887 30,000 8,071 25,000 Order 20,000 Energy and backlog 15,000 Environment 39,716 688 10,000 (40,391) 5,000 Betonmast 0 5,370 2018 2019 2020 2021 2022

  19. Slide 19: Rehabilitation Renovation Extensions (RRE)

    Rehabilitation Renovation Extensions (RRE) RRE Market segment AF Presentation template 19

  20. Slide 20: RRE Market segment

    RRE Market segment Revenue 2022 (YTD) Development (NOK million) 4000 3,600 3000 Rehabilitation 2000 Renovation 1000 Revenue (NOK Extensions 0 million) 2019 2020 2021 2022 (YTD)

  21. Slide 21: Expertise in a wide range of services

    Expertise in a wide range of services Energy rehabilitation Fire prevention Service and maintenance (Energy conservation) Roofing and tinsmith Tile, stone and concrete Facade rehabilitation services rehabilitation Installation and rental of Carpentry work Concrete and casting work scaffolding Instal

  22. Slide 22: Clearing up the past, building for the future

    Clearing up the past, building for the future Socially beneficial Predictable Sustainable 22

  23. Slide 23: Our most sustainable buildings already exist

    Our most sustainable buildings already exist Social factors such as local identity and the preservation of cultural values are good reasons for the preservation of facades, details, use of materials. - The Directorate for Cultural Heritage Facade Rehabilitation Rehabilitation rehabilitation roof sur

  24. Slide 24: Rehabilitation has half the environmental impact of new building

    The rehabilitation of buildings has only as half the impact on the environment as building new ones - SINTEF  Production of building materials  Transport  Construction process  Consumption  Waste volumes 24

  25. Slide 25: The EU - a driver on the way to a green transition?

    The EU - a driver on the way to a green transition? EU Green Deal EU Renovation Wave Feedback The EU (and Norway) > a 40 % The renovation of buildings is a key reduction in greenhouse gas initiative in reaching climate targets.  Climate emissions should include both emissions by 2030 (target of ene

  26. Slide 26: Continuing stable forecasts for the RRE market

    Continuing stable forecasts for the RRE market Market drivers  Minor fluctuations  Increase in building stock  Change in age distribution  Need for energy efficiency  Climate requirements Market forecasts  2023: +1.0%  2024: +2.6% Source: Prognosesenteret 26

  27. Slide 27: The road ahead

    The road ahead  Continue to attract, develop and retain the industry's best management and technical expertise  Reduce our footprint and lead the way in creating socially beneficial business opportunities  Be the preferred partner  The industry’s most inquisitive contractor 27

  28. Slide 28: Summary

    3rd quarter 2022 Summary NOK million Q3 22 Q3 21 YTD 3Q 22 YTD 3Q 21 Revenues 7,537 6,358 22,638 19 756 EBIT 271 344 907 970 EBT 263 344 898 945 EBIT % 3.6% 5.4% 4,0% 4,9% EBT % 3.5% 5.4% 4,0% 4,8%  Revenue growth and varying profitability  Strong cash flow from operations  Strong financial posit

  29. Slide 29: Thank you for your attention

    Thank you for your attention Q4 | 10 February 2023 Furuset Hageby. Photo: AF Gruppen

AF Gruppen — Q3 2022 Earnings Presentation on 6ix