Q2 2018 AF Gruppen ASA 2 nd quarter 2018 Highlights Good result - - PowerPoint PPT Presentation

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Q2 2018 AF Gruppen ASA 2 nd quarter 2018 Highlights Good result - - PowerPoint PPT Presentation

Sep 20, 2022 183 likes •506 views

August 24 th 2018 Q2 2018 AF Gruppen ASA 2 nd quarter 2018 Highlights Good result and 40 % growth Revenues: NOK 4,692 million (3,347) in Q2 vs. NOK 8,575 million (6,009) year-to-date. EBT: NOK 256 million (250) in Q2 vs. NOK 450 million

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SLIDE 1

Q2 2018

AF Gruppen ASA

August 24th 2018

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SLIDE 2

2nd quarter 2018

Highlights

  • Revenues: NOK 4,692 million (3,347) in Q2 vs. NOK 8,575 million (6,009) year-to-date.
  • EBT: NOK 256 million (250) in Q2 vs. NOK 450 million (393) year-to-date.
  • EBT margin: 5.5 % (7.5 %) in Q2 vs. 5.3 % (6.5 %) year-to-date.
  • Strong order backlog: NOK 19,866 million (18,928)
  • Solid financial position: Net interest bearing receivables of NOK 609 million (698)

Good result and 40 % growth

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SLIDE 3

2nd quarter 2018

Safety

Lost-time injury frequency (LTIF) Total recordable injury frequency (TRIF) Reported unwanted incident frequency (RUIF)

Number lost-time injuries per million hours

  • worked. Measuring of LTIF also includes

injuries by subcontractor employees. Number of lost-time injuries, injuries involving substitute work and medical treatment injuries per million hours worked. Measuring of TRIF also includes injuries by subcontractor employees. Number of reported unwanted incidents per man-year.

1,1 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD

10,4 2 4 6 8 10 12 14 16 18 20

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD

3,8 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD

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SLIDE 4

Revenues

4 692

500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4

2nd quarter 2018

NOK million Civil eng. 1 481 Environment 178 Building 2 258 Property 49 Energy 69 Sweden 629 Offshore 184

  • Q2 revenues by business area:

47 % 4 % 31 % 4 % 13 %

1 % 1 %

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SLIDE 5

Earnings before tax

256

50 100 150 200 250 300 350 400 450 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4

2nd quarter 2018

NOK million

  • A good 2nd quarter
  • EBT Q2: NOK 256 million (250)
  • EBT YTD: NOK 450 million (393)
  • EBT % Q2: 5.5 % (7.5 %)
  • EBT % YTD: 5.3 % (6.5 %)
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SLIDE 6

Return on capital employed

12 month rolling average

2nd quarter 2018

*AF’s target is to achieve a return on capital employed above 20 %. 47,4 % 0% 10% 20% 30% 40% 50% 60% 2014 2015 2016 2017 YTD 2018

*

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SLIDE 7

Cash flow statement

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017

EBIT 256 251 441 396 Depreciations, amortization and impairment 42 41 86 81 Change in net working capital

  • 220

2

  • 272

290 Other adjustments / taxes paid

  • 45
  • 92
  • 95
  • 147

Cash flow from operations 33 203 159 619 Net investments 20

  • 105
  • 225
  • 247

Cash flow from capital activities

  • 504
  • 502
  • 594
  • 322

Interest paid and change in interest bearing debt

  • 59

11

  • 70
  • 5

Net decrease (increase) in cash and cash equivalents

  • 510
  • 394
  • 729

45 Net cash and cash equivalents at beginning of period 879 907 1,098 469 Change in cash and cash equivalents without cash effect

  • 1
  • 1
  • 2

Net cash and cash equivalents end of period 368 512 368 512

2nd quarter 2018

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SLIDE 8

Net interest bearing receivables

2nd quarter 2018

Net interest bearing receivables as of 30 June is NOK 609 million (698). 609

  • 200

200 400 600 800 1 000 1 200 1 400 NOK million

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SLIDE 9

Balance sheet

2nd quarter 2018

NOK million

30.06.18 30.06.17 31.12.17

Non-current assets 4,153 4,104 4,045 Current assets, ex. Cash 3,044 2,418 2,581 Cash and cash equivalents 368 512 1,098 Total assets 7,565 7,034 7,724 Equity 1,803 2,034 2,078 Long term debt 610 574 643 Short term debt 5,151 4,426 5,003 Total equity and debt 7,565 7,034 7,724

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SLIDE 10

Equity ratio

2nd quarter 2018

Equity 1 803 Short term debt 5 151 Long term debt 610

Total assets 7,565

23,8 % 0% 10% 20% 30% 40% 2014 2015 2016 2017 YTD 2017 YTD 2018

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SLIDE 11

85% 84% 95%

0% 20% 40% 60% 80% 100% Building Rehabilitation Demolition

YTD 2017 YTD 2018

Health and environment

Sick leave Source separation rate

Regulatory requirement

2nd quarter 2018

A total of 126,966 (161,887) tonnes of waste has been sorted in 2018

3,2 % 3,4 % 0% 2% 4% 6% 2014 2015 2016 2017 YTD 2017 YTD 2018

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SLIDE 12

Business areas

2nd quarter 2018

Lillo Gård, Oslo

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SLIDE 13

Civil Engineering

Very high activity level

  • AF Anlegg has an organic growth in Q2 of 79 %. Many new

projects and few project completions leads to lower results and reduced margin.

  • Målselv Maskin & Transport delivers good Q2 results.
  • AF Anlegg entered into agreements with Statkraft Energi,

Statkraft and Sporveien in Q2. Total contract value is estimated at NOK 480 million excl. VAT.

  • Order backlog: NOK 5,206 million (5,230)

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenues 1,481 827 2,727 1,495 EBIT 49 52 107 102 EBT 53 55 120 104 EBIT % 3.3 % 6.3 % 3.9 % 6.8 % EBT % 3.6 % 6.6 % 4.4 % 7.0 %

Vamma hydro power plant

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SLIDE 14

Environment

High activity level and good profitability

  • High activity level for AF Decom in Q2. The unit has good
  • perational performance and delivers good Q2 results.
  • High activity level at Rimol Miljøpark and Jølsen Miljøpark in Q2.

Both facilities deliver good results.

  • The new environmental facility at Nes near Oslo is completed.

The facility has received its first masses for cleaning.

  • Order backlog: NOK 209 million (350)

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenues 178 126 309 226 EBIT 12 9 20 12 EBT 12 9 19 12 EBIT % 6.8 % 7.6 % 6.4 % 5.3 % EBT % 6.7 % 7.4 % 6.2 % 5.2 %

Demolition of Ruseløkka school

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SLIDE 15

Building

High activity level and good results

  • AF Bygg Oslo, MTH and EIQON all deliver good Q2 results.
  • AF Bygg Østfold, AF Byggfornyelse, LAB and Strøm Gundersen all have

a higher activity level in Q2 and deliver satisfactory results.

  • AF Nybygg has an increasing activity level and the unit delivered

positive Q2 results.

  • Building has entered into 11 sizable agreements in Q2 at a total contract

value of NOK 2,312 million.

  • Order backlog: NOK 11,070 (10,271)

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenues 2,258 1,762 4,066 3,245 EBIT 139 109 230 189 EBT 145 112 242 195 EBIT % 6.2 % 6.2 % 5.6 % 5.8 % EBT % 6.4 % 6.3 % 5.9 % 6.0 %

Mills city block, Oslo

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SLIDE 16

Property

Good results in a more positive residential market

  • 117 (55) apartments were sold in Q2. AF’s share is 38 (21).
  • Six residential projects with 973 apartments in the production

phase (AF’s share 377). 72 % of the apartments in production are sold as per June 30th.

  • Land and development rights in progress: 1,972 (2,580)

residential units. AF’s share is 816 (1,096)

  • AF has 73,751 (92,084) m2 gross area of urban premises under
  • development. AF’s share is 36,198 (45,273).

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenues 49 6 53 12 EBIT 43 18 61 41 EBT 40 15 55 34 EBIT % 89.0 % 273.3 % 115.3 % 354.1 % EBT % 83.1 % 228.4 % 103.9 % 297.6 %

Thurmannskogen, Lørenskog

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SLIDE 17

Energy

Good activity level, weak results

  • High activity level for AF Energi & Miljøteknikk in Q2, but the unit

delivers weak results.

  • The results are affected by challenging completions of some

EPC-contracts and the shutdown of the unit’s Bergen office.

  • Order backlog: NOK 275 million (345)

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenues 69 59 124 110 EBIT

  • 2

6

  • 2

10 EBT

  • 3

6

  • 4

10 EBIT %

  • 2.8 %

10.3 %

  • 1.5 %

9.3 % EBT %

  • 4.3 %

10.4 %

  • 3.6 %

9.3 %

Thurmannskogen, Lørenskog Solar panels, Kringsjå

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SLIDE 18

Sweden

Profitable growth

  • Kanonaden Entreprenad delivers satisfactory results also in Q2.

Pålplintar has a low activity level.

  • High activity level and very good profitability at AF Härnösand
  • Byggreturer. The unit delivers very good Q2 results.
  • AF Projektutveckling and AF Bygg Syd delivers good quarterly

results, while AF Bygg Göteborg delivers results somewhat below expectations.

  • Order backlog: NOK 1,513 million (1,155).

MNOK Q2 2018 Q2 2017 YTD 2018 YTD 2017 Inntekter 629 425 1 137 751 EBIT 45 24 67 41 EBT 45 24 66 41 EBIT % 7.2 % 5.7 % 5.9 % 5.5 % EBT % 7.1 % 5.7 % 5.8 % 5.5 %

Sjölunda ARV

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SLIDE 19

Offshore

Challenging market conditions

  • As expected, AF Offshore Decom has a lower activity level, but

the unit still delivers positive Q2 results. New projects won in 2017 will mainly generate activity in 2019 and later.

  • No activity at Environmental Base Vats.
  • Demanding market conditions for AF AeronMollier. The unit has

a stable activity level and delivers positive Q2 results.

  • Order backlog: NOK 924 million (1,004)

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenues 184 200 366 355 EBIT 6 17 9 27 EBT 4 14 8 22 EBIT % 3.1 % 8.5 % 2.5 % 7.6 % EBT % 2.1 % 7.2 % 2.1 % 6.2 %

Janice platform, Vats Sjölunda ARV

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SLIDE 20

Solid order backlog

Order backlog

NOK million

19 866

5 000 10 000 15 000 20 000 25 000 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4

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SLIDE 21

Building 11 070 Civil Eng. 5 206 Sweden 1 513 Offshore 924 Environment 209 Energy 275 Other 669

Order backlog per business area

Order backlog

19,866

(18,928) NOK million 2 000 4 000 6 000 8 000 10 000 12 000 Q2 2017 Q2 2018

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SLIDE 22

Building

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SLIDE 23

5 491 7 772 9 840 11 070 ‐ 4 000 8 000 12 000 2015 2016 2017 Q2 2018 NOK i millioner 501 539 635 666 722 978 1025 1154 ‐ 500 1 000 1 500 2 000 2015 2016 2017 Q2 2018 Antall ansatte Funksjonærer Fagarbeidere 6 241 6 203 7 432 8 254 451 478 465 507 0,0 % 1,0 % 2,0 % 3,0 % 4,0 % 5,0 % 6,0 % 7,0 % 8,0 % 9,0 % ‐ 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 2015 2016 2017 Siste 12 mnd

NOK i millioner

Omsetning EBIT EBIT‐margin

Building

Strong organic growth and record-high order backlog

Turnover and profitability in Building Order backlog in Building

1 223 1 517 1 660 1 820

Number of employees in Building

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SLIDE 24

Building

Safety

24

Year-to-date Year-to-date Year-to-date

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SLIDE 25

Building

The refurbishment segment has grown by 18% annually since 2015

25

5 144 4 821 5 590 6 303 1 097 1 382 1 842 1 951 ‐ 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 2015 2016 2017 Siste 12 mnd NOK i millioner Nybygg ROT

Turnover within new building and refurbishment in Building

Refurbishment New building

Sjømannskolen

New building Refurbishment

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SLIDE 26

Building

Broad portfolio within construction/refurbishment...

Kulturstedet

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SLIDE 27

Building

…and within façade and concrete refurbishment

Grensen 17

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SLIDE 28

Building

Changes in the market

The market has changed, the customers are placing different demands on the contractors

  • Attentiveness to workplace crime and social

dumping

  • Requirements for skilled workers and

apprentices

  • A greater level of collaborative contracts
  • Higher expectation of quality

Briskeby fire station

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SLIDE 29

Building

Competitive power through expertise

  • Focus on niches where we provide a wide range of

services through several specialised suppliers

  • We have responded to the changes in the market by

building up a significant level of in-house production

  • Part-ownership by senior executives, small
  • rganisations where the management is close to
  • perations
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SLIDE 30

2nd quarter 2018

Summary

  • Good results
  • Strong revenue growth (+40 % Q/Q)
  • High order backlog: NOK 19,866 million (18,928)
  • Strong financial position supports ambitions of structural

growth

E18, Tvedestrand - Arendal

NOK million Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenues 4,692 3,347 8,575 6,009 EBIT 256 251 441 396 EBT 256 250 450 393 EBIT % 5.5 % 7.5 % 5.1 % 6.6 % EBT % 5.5 % 7.5 % 5.3 % 6.5 %

Bjørvika, Oslo

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SLIDE 31

Thank you for your attention!

Q3 2018: November 9th 2018