Norconsult Asa · OSL:NORCO

Norconsult Asa — Q2 2023 Earnings Presentation

30 slides from Norconsult Asa's earnings presentation, Sep 14, 2023

  1. Slide 1: Continued solid performance

    Electrification of Trønder and Meråker Railway, Norway DTU –(Matthias Herzog) Campus Risø, Denmark Continued solid performance Second quarter and first half 2023. CEO Egil Hogna and CFO Dag Fladby September 14, 2023

  2. Slide 2: Disclaimer

    Disclaimer Not for general release, publication or distribution, directly or indirectly in Australia, Canada, Japan, the United States or to US persons or in any other jurisdiction where such distribution would constitute a violation of the relevant laws or regulations of such jurisdiction. This rep

  3. Slide 3: Contents

    Photo: Herman Dreyer Contents  Highlights  Markets and projects  Financial presentation  Outlook  Appendix 13/09/2023 Quartely presentation - Second quarter

  4. Slide 4: Continued solid performance

    Continued solid performance Financial highlights second quarter vs last year Net revenue  13% growth to NOK 2,097m (1,849)  11% organic growth adjusted for calendar effect  Calendar effect of NOK -37m due to one less working day this year Adj. EBITA  Adj. EBITA of NOK 112m (124)  Adj. EBITA mar

  5. Slide 5: Number one in attracting, developing and retaining the best people

    Number one in attracting, developing and retaining the best people Organisational highlights  6,000 Employees (5,600 end of year 2022) 275 new employees in the quarter: 25% up from Q2 2022  Universum Student survey 2023 Nr. 1 in Norway among engineering consulting companies  Summer Student Day 14

  6. Slide 6: Acquisition of Ingeniørværket in Denmark

    Acquisition of Ingeniørværket in Denmark  26 consulting engineers  Revenue in 2022 of DKK 20m  Offices in Esbjerg and Horsens  Our seventh acquisition in Denmark since 2017  Specialist in consultancy services within buildings and property  Included in Norconsult as from July 1 From left: Thoma

  7. Slide 7: Markets and projects

    Markets and projects Norconsult «fo

  8. Slide 8: Market overview: Overall good demand

    Market overview: Overall good demand Overall good demand and strong numbers in Energy & Industry and Infrastructure Energy & Industry  Continued strong demand in renewable energy, electrical transmission, and electrification projects across geographies  The strong industry market we have observed

  9. Slide 9: 132kV transmission line Bardufoss – Finnfjordbotn

    132kV transmission line Bardufoss –Finnfjordbotn, Norway (Norconsult) 132kV transmission line Bardufoss – Finnfjordbotn A 13.3 km power line with composite towers and steel cable termination towers. Conductors: 3 x FeAl 239 Curlew and 1 x Project name: 132kV transmission line OPGW. Additionally, a f

  10. Slide 10: E102 – E18 highway Fornebu intersection to Strand

    E102 – E18 highway Fornebu intersection to Strand, Norway (Statens Vegvesen/ViaNova) E102 – E18 highway Fornebu intersection to Strand Skanska with Norconsult responsible for engineering has won a contract for the design and construction of the new E18 Project name: E18 highway Fornebu between Forne

  11. Slide 11: University in Oslo (UiO) - Life Science Building

    Life Science Building, Norway (Visualization by Statsbygg) University in Oslo (UiO) - Life Science Building The Ministry of Education and Research has commissioned Statsbygg to construct Norway's largest university building. The Project name: University in Oslo (UiO) Life Science Building will encom

  12. Slide 12: Vision System, Östrand Pulp Mill

    Östrand Pulp Mill, Sweden (Torbjörn Bergkvist, SCA) Vision System, Östrand Pulp Mill During the COVID-19 pandemic, an innovative pilot project was initiated in collaboration with SCA, leveraging Project name: Vision System, cutting-edge machine vision technology. The primary objective of this projec

  13. Slide 13: Financial presentation

    Kongens gate 87- former police station, Norway (Matthias Herzog) Finalist Norconsult Awards 2023: Sustainability Financial presentation CFO Dag Fladby

  14. Slide 14: Q2 2023: Continued revenue growth and slightly improved profitability adjusted for calendar effects

    Q2 2023: Continued revenue growth and slightly improved profitability adjusted for calendar effects NOKm Q2 2023 Q2 2022 Change  Net revenue increased with 13% y-o-y. Organic revenue Net revenue* 2 097 1 849 248 growth of 11%** Adj. EBITA 112 124 -12  Calendar effect of NOK -37m due to one less wo

  15. Slide 15: H1 2023: Solid revenue growth and slightly improved profitability

    H1 2023: Solid revenue growth and slightly improved profitability NOKm H1 2023 H1 2022 Change  Net revenue increased with 15% to NOK 4 456m y-o-y. Net revenue* 4 456 3 861 595 Organic revenue growth of 11%** Adj. EBITA 493 424 69  No significant calendar effects for H1 Adj. EBITA margin % 11.1 % 1

  16. Slide 16: Growth year on year, but considerable seasonal variations

    Growth year on year, but considerable seasonal variations Net revenue* Billing ratio +13.4% LTM 2 500 2 359 10 000 80% 2 012 2 109 2 097 2 000 1 793 1 849 8 000 76.2% 75.1% 1 523 74.3% 74.0% NOK million 75% 73.9% 73.7% 1 500 6 000 72.3% 1 000 4 000 70% 500 2 000 0 0 65% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22

  17. Slide 17: Norway Head Office and Norway Regions

    Norway Head Office 30% Norway Regions 30%  Solid organic growth and improved profitability adjusted for  Solid organic growth and improved profitability adjusted for calendar effects (NOK -13m) calendar effects (NOK -14m)  Organic growth was 13% adjusted for calendar effects  Organic growth was

  18. Slide 18: Sweden and Denmark

    Sweden 15% Denmark 7%  Solid organic growth adjusted for calendar effects (NOK -6m) at a  Solid growth in net revenue mainly driven by acquisitions. Calendar slightly lower margin effect compared to Q2 2022 was NOK -1m.  Organic growth was 13% adjusted for calendar effects  Organic growth was 2%

  19. Slide 19: Renewable Energy and Technogarden & Digital

    Renewable Energy 8% Technogarden & Digital 10%  Solid organic growth adjusted for calendar effects (NOK -3m).  Organic growth was -2%, no calendar effect Organic growth was 19%  Adj. EBITA margin decreased to 2.1% (9.5%)  Corrected for calendar effects adj. EBITA margin decreased to 8.6% (14.1%)

  20. Slide 20: Q2 2023: Solid cash from operations

    Q2 2023: Solid cash from operations Q2 2023 Q2 2022 Change  Cash flow from Operating Activities of NOK 192m Cash flow from Operating Activities 192 242 -50 (NOK 242m) Cash flow from Investing Activities -74 -26 -48  Increased working capital and other accruals: Cash flow from Financing Activities

  21. Slide 21: Strong financial position

    Strong financial position 30.06.2023 31.12.2022 Non-current assets 2 866 2 732 Cash and cash equivalents 1 233 1 343  Cash and cash equivalents NOK 1,233m Receivables 2 561 2 203 Total assets 6 660 6 278  Net interest-bearing debt*: IFRS 16, mainly rents, Lease liabilities (current and non-current

  22. Slide 22: Solid orderbook Q2: Good momentum with new contracts

    Solid orderbook Q2: Good momentum with new contracts E6 highway Storhove Øyer Upgrade of the Røldal-Suldal FEED BECCS Stockholm Exergi Haugesund public bath and school of AF with Norconsult on the team has won hydroelectric plants Detailed design of structural- and performing arts the contract to de

  23. Slide 23: Outlook

    Molde Sea Front, Norway (Norconsult) Outlook

  24. Slide 24: Summary first half 2023 and outlook

    Summary first half 2023 and outlook  Continued solid growth and slightly improved profitability  Mitigating factors in a high interest rate environment:  Large exposure to the public sector and a diversified mix of services and end-market exposures  Cost plus model and price indexation Outlook 

  25. Slide 25: Appendix

    Photo: Herman Dreyer Appendix

  26. Slide 26: Consolidated income statement

    CONSOLIDATED INCOME STATEMENT Amounts in NOK million Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022 Operating revenue 2 357 2 104 4 969 4 313 8 423 Other income 5 5 3 8 1 External project costs 266 260 517 460 931 Operating revenue and other income after external project costs 2 097 1 849 4 456 3 861 7 493

  27. Slide 27: Consolidated statement of financial position

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION Amounts in NOK million ASSETS 30.06.2023 31.12.2022 EQUITY AND LIABILITIES 30.6.2023 31.12.2022 Goodwill 1 015 943 Share capital 6 6 Deferred tax assets 5 4 Treasury shares -1 -1 Other intangible assets 81 70 Share premium 221 221 Property plant and equip

  28. Slide 28: Interim consolidated statement of cash flows

    INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS Amounts in NOK million Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022 Profit (loss) before tax 102 112 465 405 612 Taxes paid -61 -59 -139 -134 -136 Depreciation, amortisation and impairment 20 19 39 35 79 Depreciation right of use asset 94 81 185 161 325 Change

  29. Slide 29: APM - reconciliations

    APM - reconciliations Amounts in NOK million Adjusted EBITA and EBITDA Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022 Operating profit (loss) (EBIT) 102 120 478 417 626 Depreciation and impairment of tangible assets 110 96 216 189 384 Amortisation and impairment of intangible assets 5 4 9 7 20 EBITDA 217 2

  30. Slide 30: Every day we improve everyday life

    Every day we improve everyday life

Norconsult — Q2 2023 Earnings Presentation on 6ix