Veidekke Asa · OSL:VEI
Veidekke Asa — Q3 2020 Earnings Presentation
23 slides from Veidekke Asa's earnings presentation, Nov 12, 2020
Slide 1: Presentation 3rd quarter 2020
Presentation rd 3 quarter 2020 12 November 2020 Jimmy Bengtsson, CEO and Jørgen Wiese Porsmyr, CFO
Slide 2: Occupational health and safety
Occupational health and safety Our primary priority Number of serious injuries Sickness absence The Veidekke house 12-month rolling, Veidekke employees, hired staff Veidekke employees Focus on culture and sub-contractors 25 5% 20 4% 15 3% 10 2% 5 1% 0 0% Q3 15 Q3 16 Q3 17 Q3 18 Q3 19 Q3 20 Q3 15 Q3
Slide 3: Highlights 3rd quarter 2020
Highlights 3rd quarter 2020 ● Divestment of property development business completed, generating a NOK 1.1 billion book gain ● Proposed dividend of NOK 20/share from transaction and additional NOK 2,5/share for 2019 ● Revenue increase in all three countries ● Continued operations generated a good res
Slide 4: Financial key figures, continued operations
Financial key figures, continued operations Revenue and earnings 3rd quarter 3rd quarter: Revenue 3rd quarter: Pre-tax profit NOK billion NOK million 12 600 9 400 6 505 9.5 8.5 9.0 200 390 417 3 0 0 2018 2019 2020 2018 2019 2020 4 © Veidekke
Slide 5: Good order book
Good order book Shift away from private commercial buildings Revenue and order intake Order book Order book per segment Converted into revenue next 12 mos. 12-month rolling, NOK billion NOK billion Percentage NOK billion 100 % 40 40 36 36 36 32 80 % 32 32 28 28 28 24 24 24 60 % 20 20 20 16 16 16 40
Slide 6: Sustainability and climate change
Sustainability and climate change Veidekke is leading the way How the company impacts climate change How climate change impacts the company Climate accounting is required to understand Climate risk analysis is necessary to understand the impacts of our business on climate and our business developmen
Slide 7: Results
Results Segments and group Jørgen Wiese Porsmyr, CFO 3rd quarter 2020
Slide 8: Revenue, results and margin
Revenue, results and margin Group and segments 3rd quarter 2020 3rd quarter 2019 Amounts in NOK million Revenue Pre-tax profit Margin Revenue Pre-tax profit Margin Construction Norway 3 381 118 3.5 % 3 337 112 3.4 % Infrastructure Norway 2 782 263 9.5 % 2 710 260 9.6 % Sweden 2 834 86 3.0 % 2 417 35
Slide 9: Construction Norway
Construction Norway 3rd QUARTER 2020 REVENUE AND MARGIN PER QUARTER NOK billion • Stable revenue; local variations 5 3.9% 5% 3.5% • Up in Oslo and Bergen; down in Trondheim and Stavanger 4 4.2 4% 3.6 • Profit and margin slightly up from last year 3 3.6 3.4 3% 3.3 3.3% 3.4% 2 2% • Improvement in unit
Slide 10: Infrastructure Norway
Infrastructure Norway 3rd QUARTER 2020 REVENUE AND MARGIN PER QUARTER PRE-TAX PROFIT 3RD QUARTER NOK billion NOK million • Stable turnover 4 15% 240 245 9.5% 212 3 8.7% 202 • Increase in Civil engineering (33%) 2 2.7 2.8 10% 190 2.3 5% • Decline in Asphalt and Aggregates (-22%) 2.1 1 1.7 140 4.5% 0%
Slide 11: Sweden
Sweden 3rd QUARTER 2020 REVENUE AND MARGIN PER QUARTER NOK billion • 5% revenue increase in local currency 4 2.7% 3.0% 4% 2.4 • Up in Construction Skåne and Gothenburg 2 3.2 2.6 3.3 2.8 2% 1.5% • Low activity in Construction Stockholm 0 1.1% 0% • Increased profit and margin -2 -2% -4 -5.1% -4% • Imp
Slide 12: Denmark/Hoffmann
Denmark/Hoffmann 3rd QUARTER 2020 REVENUE AND MARGIN PER QUARTER NOK million • Revenue is stable in local currency 1 200 11.2% 12% • Profit and margin increase 1 000 10% 7.4% 800 6.6% 8% 6.2% • Strong quarterly result 600 678 6% 626 653 635 • Portfolio profitability is good 563 400 5.0% 4% • Order b
Slide 13: Financial position
Financial position Balance sheet Amounts in NOK million 30 Sept. 2020 30 Sept. 2019 31 Dec. 2019 Fixed assets 6 391 7 715 6 542 Current assets 13 827 15 641 6 522 Assets held for sale - - 8 920 Assets 20 218 23 357 21 985 Equity 5 706 3 838 3 949 Long-term debt 2 781 6 126 5 184 Short-term debt 11 7
Slide 14: Change in net interest-bearing position so far this year
Change in net interest-bearing position so far this year NOK million Cash flow from Investments and Settlement of debt Net interest-bearing Net interest-bearing operating activities other financial items and shares position as at 31 Dec. 2019 position as at 30 Sept. 2020 Continued operations Propert
Slide 15: Attractive dividend over time
Attractive dividend over time Proposed dividend payment of NOK 22.50 per share in Q4 Aiming for high distribution rate Dividend and distribution rate • Veidekke aims to provide shareholders with a competitive return, through a combination of dividend and return 10 140% on the share NOK 20/share 120%
Slide 16: Closing comments
Closing comments Jimmy Bengtsson, CEO
Slide 17: Veidekke as a streamlined construction business
Veidekke as a streamlined construction business Focused, with strong positions Construction Infrastructure 20% 30% 21% 13% 3% 13% Residential Commercial Public service buildings Transport Energy Asphalt and aggregates Strong positions in Scandinavia's largest regions and growth centres Percentages s
Slide 18: Veidekke as a streamlined construction business: Main priorities
Veidekke as a streamlined construction business Main priorities 1 Increase profitability ● Organisation, priorities and strategies under assessment ● The 2022 margin target of >4% is maintained 2 Selective growth in our main markets ● Commercial and residential buildings in population centres ● Well
Slide 19: New restrictions create new challenges
New restrictions create new challenges Continued uncertainty pertaining to market development ● Pandemic on the rise throughout Europe – including Scandinavia ● New, strict infection control measures stipulated ● Entry restrictions related to foreign labour can negatively affect progress in individu
Slide 20: Solid platform for boosting value creation
Veidekke as a streamlined construction business Solid platform for boosting value creation % Reinforced Improvement Profitability targets High strategy and initiatives continue maintained yield target business model 20 © Veidekke
Slide 21: VEDLEGG
VEDLEGG • • • 2
Slide 22: Business areas first nine months
Business areas first nine months First nine months 2020 First nine months 2019 Amounts in NOK million Revenue Profit Margin Revenue Profit Margin Construction Norway 10 562 377 3.6 % 10 286 352 3.4 % Infrastructure Norway 6 918 162 2.3 % 7 514 155 2.1 % Sweden 8 769 205 2.3 % 7 588 140 1.8 % Denmark
Slide 23: Order book per September 2020
Order book per 30 September 2020 Amounts in NOK million Construction Norway Infrastructure Norway Sweden Denmark Total Residential units 5 665 - 3 124 176 8 966 Private commercial buildings 3 342 - 4 185 1 946 9 472 Public service buildings 5 002 - 2 596 316 7 914 Transport - 3 580 1 056 - 4 636 Ind