Interim report Jan-Sep 2019 JONAS GUSTAVSSON, CEO JUUSO PAJUNEN, - - PowerPoint PPT Presentation
Interim report Jan-Sep 2019 JONAS GUSTAVSSON, CEO JUUSO PAJUNEN, CFO OCTOBER 29, 2019 Overall development Continued stable development in the third quarter The strategic acquisition of Pyry has created a leading engineering and
JONAS GUSTAVSSON, CEO JUUSO PAJUNEN, CFO OCTOBER 29, 2019
− Continued stable development in the third quarter − The strategic acquisition of Pöyry has created a leading engineering and design company in the Nordics − Strengthened the international platform − The integration goes according to plan
+3.7%
JULY – SEPTEMBER 2019
Net sales: SEK 4,562 million (4,398) EBITA*: SEK 345 million (335) EBITA-margin*: 7.6% (7.6)
+3.0%
— Stable performance — Overall solid demand, however weaker market in some industrial segments — Integration and cost synergies according to plan — Extended cost synergy and efficiency program into 2020
*Excl Items affecting comparability
JAN – SEPTEMBER 2019
Net sales: SEK 15,380 million (14,164) EBITA*: SEK 1,293 million (1,224) EBITA-margin*: 8.4% (8,6)
+8.6% +5.6%
+52.3%
JULY – SEPTEMBER 2019
Net sales: SEK 4,562 million (2,995) EBITA*: SEK 345 million (220) EBITA-margin*: 7.6% (7.4)
+56.8%
*Excl Items affecting comparability
JAN – SEPTEMBER 2019
Net sales: SEK 14,345 million (10,018) EBITA*: SEK 1,216 million (911) EBITA-margin*: 8.5% (9.1)
+43.2% +33.5%
— Core markets show continued solid demand in Infrastructure. — Weaker demand in automotive and manufacturing industry. Continued stable demand in other industrial segments, e.g. defense and food & pharma. — Continued strong demand in Process industries, especially in the Nordics and Latin America. — Overall stabile demand in the energy sector , especially in nuclear . Postponed investment decisions in hydro and transmission & distribution.
Byt bild
Infrastructure, 38% Industrial & Digital Solutions, 29% Process Industries, 15% Energy, 15% Management Consulting, 3%
Division, share of revenue, Jan – Sept, 2019
75% 7% 10% 4% 4%
Nordics Switzerland Other Europe Asia Other
ÅF Pöyry
Net sales by region Sep 2018 LTM1,2
21% 13% 10% 17% 6% 5% 14% 3% 2% 3% 6% Infrastructure Real Estate Automotive & Vehicle Energy and Power Manufacturing Industry Life Science, Food & Pharma Process Industry Telecom and ICT Defence Management Consulting Other
ÅF Pöyry
Net sales by segment Sep 2018 LTM1,2
— New framework agreement with Region Stockholm on strategic sustainabilty services — ÅF Lighting won a framework agreement with Uppsala municipality for lighting design and construction management — ÅF Pöyry was chosen by Rottneros to deliver new digital software to streamline production support — On behalf of Uppsala Municipality, ÅF Pöyry will project a new ice arena, expected to open in 2023 — ÅF Pöyry won a significant order in Hungary for the Paks 2 new-build project — ÅF Pöyry has won a contract for process solutions by TINE SA, Norway's largest producer, distributor and exporter of dairy products — ÅF Pöyry was chosen by Innogy to work with their corporate foresight and corporate strategy project for infrastructure markets
end of 2019
by end Q3 2019
improvements into 2020 to drive profitability, but also for meeting a more uncertain market climate
continue as well as crucial investments in ERP-
integration of business units across ÅF Pöyry
leveraging from competencies from both former ÅF and former PÖYRY – with growth plans per segment and geography.
transportation and buildings in Switzerland
Energy
COST SYNERGIES AND EFFICENCY REVENUE SYNERGIES
— Extensive work to develop a clear position within energy to increase the profitabilty in 2020 — Enhanced business model based on ”global/local model” — Sales structure efficiency — Addressing underperforming and sub-critical units — Negative impact on results estimated to MSEK 130 - 150 with approx 20% cash flow impact in Q4 2019
COMBINED, Q3 2019
REPORTED, Q3 2019
COMMENTS
REPORTED NET SALES, MSEK
1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 5 500 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 Quarter Rolling 12-months
COMBINED, Q3 2019*
REPORTED, Q3 2019*
Reported EBITA and EBITA margin, MSEK
COMMENTS
and relate to integration costs
like buildings, digital and process industries
automotive, manufacturing and infrastructure business in Denmark
150 200 250 300 350 400 450 500
Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 2 4 6 8 10 12 14 16 Quarter EBITA-margin
* Excl. items affecting comparability
SEK M Comments
Net Debt as of June 30, 2019 5,154 Cash flow from operating activities
Seasonality and build up of working capital after summer CAPEX 24 Acquisitions and Contingent Considerations 71 Acquisitions and earn-out related outflows Share buy-backs/sales 164 Other
Convertible loan Net Debt as of September 30, 2019 5,112 Net Debt/EBITDA rolling 12 months 3.5 Net debt/EBITDA when Pöyry R12m included is 2.8
Solid free cash flow
CASH FLOW FROM OPERATIONS GENERATED SEK M 185 (112) IN Q3 2019
SEK M Comments
Net Debt as of June 30, 2019 7,728 Cash flow from operating activities Whereof LFRS16 Leases
CAPEX 24 Acquisitions and Contingent Considerations 71 Share buy-backs/sales 164 Other 211 Leasing cost and convertible loan Net Debt as of September 30, 2019 7, 627 Net Debt/EBITDA rolling 12 months 4.0
CASH FLOW FROM OPERATIONS GENERATED SEK M 571 (112) IN Q3 2019
Q3 2019
– Third quarter net sales amounted to SEK 1,738 million (1,280) – EBITA amounted to SEK 118 million (113) and the EBITA margin was 6.8% (8.8) – Continued underlying need for investments in core markets – Solid development within Buildings – Weak development in Denmark and lower utilisation within some parts of Transportation at the beginning of the quarter
KEY RATIOS Jul– Sep 2019 Jul – Sep 2018 Jan – Sep 2019 Jan – Sep 2018 Full year 2018 Net sales, MSEK 1,738 1,280 5,565 4,275 5,955 EBITA, MSEK 118 113 494 452 637 EBITA margin % 6.8 8.8 8.9 10.6 10.7 Average number of employees, FTEs 5,916 4,465 5,653 4,374 4,445 Total growth, % 35.7
29.2
0.7
5.8
calendar effect, % 4.2
7.0
Q3 2019
– Third quarter net sales amounted to 1,204 MSEK (1,229) – EBITA amounted to SEK 80 million (94) and the EBITA margin was 6.6%(7.7) – Continued strong demand in Food & Pharma and Defence – Slowdown in automotive and manuf. industry
KEY RATIOS Jul – Sep 2019 Jul – Sep 2018 Jan – Sep 2019 Jan – Sep 2018 Full year 2018 Net sales, MSEK 1,204 1,229 4,265 4,154 5,782 EBITA, MSEK 80 94 355 375 525 EBITA margin % 6.6 7.7 8.3 9.0 9.1 Average number of employees, FTEs 3,738 3,782 3,801 3,710 3,748 Total growth, %
0.3
0.2
calendar effect, %
Q3 2019
– Third quarter net sales amounted to SEK 770 million (170) – EBITA amounted to 73 MSEK (16) and the EBITA margin was 9.5% (9.2) – Strong order book with solid demand and cont. investments in many regions, especially Pulp & Paper – Digitalisation and sustainability remains high on the agenda in all process industry sectors
KEY RATIOS Jul – Sep 2019 Jul – Sep 2018 Jan – Sep 2019 Jan – Sep 2018 Full year 2018 Net sales, MSEK 770 170 2,131 589 811 EBITA, MSEK 73 16 204 58 91 EBITA margin % 9.5 9.2 9.6 9.9 11.2 Average number of employees, FTEs 3,170 672 2,547 669 688 Total growth, % 352.0
340.2
0.4
11.4
calendar effect, % 14.7
9.1
Q3 2019
– Third quarter net sales amounted to SEK 761 million (363) – EBITA amounted to 51 MSEK (15) and the EBITA margin was 6.7% (4.2) – Strong development within Nuclear in Sweden – Delayed investments decisions and projects – The global energy sector continues to be in a state of
technology, politics and market conditions – Repositioning of the Division with a negative impact of 130- 150 MSEK expected in Q4 2019
KEY RATIOS Jul – Sep 2019 Jul – Sep 2018 Jan – Sep 2019 Jan – Sep 2018 Full year 2018 Net sales, MSEK 761 363 2,130 1,129 1,559 EBITA, MSEK 51 15 142 59 72 EBITA margin % 6.7 4.2 6.7 5.2 4.6 Average number of employees, FTEs 2,059 960 1,841 985 992 Total growth, % 109.3
112.0
2.8
calendar effect, %
0.3
Q3 2019
– Third quarter net sales amounted to SEK 185 million – EBITA amounted to 20 MSEK and the EBITA margin was 10.7 percent – Solid transaction volume across all sectors and requirement to meet the Paris decarbonisation targets along with the impact of digitalisation.
KEY RATIOS Jul – Sep 2019 Jul – Sep 2018 Jan – Sep 2019 Jan – Sep 2018 Full year 2018 Net sales, MSEK 185
20
10.7
employees, FTEs 389
calendar effect, %
5.4
ÅF Pöyry climbs two positions compared to last year and was ranked second in the yearly survey among young engineers provided by Universum. We were also awarded the most attractive employer in the category Technical Consultants
ENGINEERING PROFESSIONALS
SCIENTIFIC RESEARCHERS, 2019
— Solid combined growth and stable earnings — Overall solid demand, however weaker market in some industrial segments — Integration and 2019 cost synergies ahead of plan — Extended cost synergies and continued implementation of IT-investments in 2020 — Repositioning of Division Energy