52
1 INVESTOR PRESENTATION Veidekke ASA March 2017

2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

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Page 1: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

1

INVESTOR

PRESENTATION

Veidekke ASA

March 2017

Page 2: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

CONTENTS

2

+ Company overview 3

+ Business areas 17

+ Construction 18

+ Property development 24

+ Industrial 32

+ Goals and priorities 37

+ Appendix - Group financials 44

Page 3: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

VEIDEKKE IN BRIEF

3

Norway63% of turnover

Sweden 32% of turnover

Denmark 5% of turnover

A leading Scandinavian construction and property

development company

• Largest player in Norway with strong positions in

Sweden and Denmark

Strong revenue and earnings growth

Construction order book up by more than 50 %

over last 24 months

Attractive property development portfolio

80 years without loss

15 % of the shares owned by employees/

management

Page 4: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

4

0.4

30

16

VEIDEKKE – A GROWTH STORY Annual return

to investors

last 30 years:

+ 18%

Annual revenue

growth

last 30 years:

+ 10%

D D D D D D D D D D D D D D DD D D D D D D D D D D D D D D

Revenue

NOK bill.

Share price D Dividends

1936

D

Page 5: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

NORWAY DENMARKSWEDEN

Leading and

national

Leading in

selected

segments

Strong

positions in the

largest markets

Page 6: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

61%

32%

7%

57%28%

14%

33%

67%

OUR BUSINESS AREAS

6

Revenue*

24.6

EBT*

623Revenue*

4.2

* Revenue in NOK billion 2016, Earnings before tax (EBT) in NOK million 2016, excl. pension changes. EBT Property Dev is tax-adjusted for Norway.

** Return on invested capital last 12m. Last 12m is per end Dec. 2016.

Sweden

Denmark

Norway

PROPERTY DEVELOPMENT CONSTRUCTION INDUSTRIAL

21.4**%Result/

return

Asphalt Aggregates MaintenanceResidential developmentBuilding Construction Civil Engineering

AsphaltMaintenance

Aggregates

EBT NOK 723 mill. EBT NOK 117 mill.

Page 7: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

MULTI LOCAL STRENGTH AND SYNERGIES

7

Civil Engineering

Property Development

Industrial

Building Construction

Page 8: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

OUR ACTIVITY - NORWAY

8

Public buildingsPublic infrastructure

Residential development and construction

Commercial buildings

100 %

Veidekke’s activity level 2016

Asphalt and road maintenancePrivate infrastructure

Page 9: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

OUR ACTIVITY - SWEDEN

9

Public buildingsCommercial buildingsResidential development and construction

Veidekke’s activity level 2016

100 %

Public infrastructure

Private

infrastructure

Page 10: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

OUR ACTIVITY - DENMARK

10

Public buildingsCommercial buildings

Veidekke’s activity level 2016

100 %

Page 11: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

567776

967 1 043

1 352113

108

0

200

400

600

800

1 000

1 200

1 400

1 600

2012* 2013 2014 2015 2016**

NO

K m

ill.

REVENUE AND EARNINGS

REVENUE PROFIT BEFORE TAX

11

20.5 21.223.9 24.5

30.1

0

5

10

15

20

25

30

2012 2013 2014 2015 2016

NO

K b

ill.

*Positive one-off effect from changes to the pension scheme in Norway

of NOK 113 mill.

**Positive one-off effect from changes to the disability pension scheme in

Norway of NOK 108 mill.

Page 12: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

PROFIT BEFORE TAX PER BUSINESS AREA

CONSTRUCTION PROPERTY DEVELOPMENT INDUSTRIAL

12

403 446549

644723

94

81

0

200

400

600

800

2012* 2013 2014 2015 2016**

NO

K m

ill.

*Positive one-off effect from changes to the pension scheme in Norway of NOK 94 mill. and NOK 18 mill.

**Positive one-off effect from changes to the disability pension scheme in Norway of NOK 81 mill., NOK 19 mill. and NOK 4 mill.

173221

280 306

563

4

0

200

400

600

800

2012* 2013 2014 2015 2016**

NO

K m

ill.

158210 190

117

19

0

200

400

600

800

2012* 2013 2014 2015 2016**

NO

K m

ill.

Page 13: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

SOLID FINANCIAL POSITION

Capital spending 2016

• Acquisitions NOK 0.2 bill.

• Equipment (PPE) NOK 0.7 bill.

Invested capital

• Property Development NOK 3.1 bill.

Solid long-term financing

• Undrawn bank facility NOK 3.6 bill.

NET INTEREST-BEARING POSITION AT YEAR-END (NOK MILL.)

-1 506

-396

274

-606

0

2012 2013 2014 2015 2016

13

Page 14: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

DIVIDEND DEVELOPMENT

DIVIDEND

2.502.75

2.50

3.00

3.50

4.00

4.50

2010 2011 2012 2013 2014 2015 2016*

NO

K p

er

share

14

* Proposal for 2016

2016:

Earnings per share: NOK 6.6 (5.7)

Proposed dividend: NOK 4.5 (4.0)

Dividend pay-out ratio: 68 % (70 %)

Earnings per sharethe segment accounts: NOK 9.3 (6.5)

Page 15: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

-

3

6

9

12

15

18

2008 2009 2010 2011 2012 2013 2014 2015 2016

MARKET VALUE AND SHAREHOLDERS

SHAREHOLDERS PER 31 DECEMBER 2016

15

MARKET CAPITALISATION PERIOD-END, NOK BILLION

OBOS BBL* 17.8%

The Government Pension Fund Norway 12.5%

IF Skadeförsäkring 6.9%

Handelsbanken aksjefond 3.4%

Danske Invest 2.1%

Must Invest 2.1%

MP Pensjon PK 2.0%

Swedbank Robur 1.5%

DnB Norge 1.4%

Taiga Invest 1.3%

Employees 14.9%

Foreign holdings 26.7%

*Norway’s largest cooperative building association

15

Page 16: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

OCCUPATIONAL HEALTH AND SAFETY

SERIOUS INJURIES* # LTI RATE* SICKNESS ABSENCE*

16

0%

1%

2%

3%

4%

5%

6%

# Veidekke employees, hired staff and sub-contractors *12-month rolling (LTI = Number of lost-time injuries per million hours worked for Veidekke employees)

0

2

4

6

8

10

0

10

20

30

40

Page 17: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

BUSINESS AREAS

Page 18: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

BUILDING CONSTRUCTION

18

Danish Centre for Particle Therapy, Aarhus Pyramiden, Stockholm

Vrå school, Knivsta at Uppsala

Bragenes Torg, Drammen

Svea Symfoni, Stockholm

Revetal lower secondary school, Vestfold Horten upper secondary school, Vestfold

Research facilities at Karolinska Institutet, Huddinge

Hotel, commercial buildings and residential, Vitaminveien, Oslo Diagonale by the Oslo Opera House

Page 19: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

CIVIL ENGINEERING

19

Water and sewerage installations

Power- and industrial plants Environmental clean-up

Groundwork Tunnel

Avalanche protection

Road constructionRailway

Car parking in mountains

Page 20: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

CONSTRUCTION

OMSETNING OG MARGIN*

20

0%

1%

2%

3%

4%

5%

0

5

10

15

20

25

30

2012 2013 2014 2015 2016

NO

K b

ill.

Rev. Civil Eng. Rev. Building Constr. Margin (%)

70 %

30 %

*Adjusted for positive one-off effects from changes in the pension scheme in 2012 and 2016

REVENUE AND MARGIN* CONSTRUCTION ORDER BACKLOG BY BUSINESS AREA

0

5

10

15

20

25

30

Q4 13 Q4 14 Q4 15 Q4 16

NO

K b

ill.

Building Construction

Civil Engineering

Page 21: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

CONSTRUCTION NORWAY

REVENUE (NOK MILL.) EBT* (NOK MILL.) AND MARGIN ORDER BACKLOG (NOK MILL.)

21

0

4 000

8 000

12 000

16 000

2013 2014 2015 2016

Building Construction Civil Engineering

0%

1%

2%

3%

4%

5%

0

100

200

300

400

500

600

2013 2014 2015 2016

EBT Margin

0

4 000

8 000

12 000

16 000

2013 2014 2015 2016

Building Construction Civil Engineering

*Adjusted for positive one-off effects from changes in the pension scheme in 2016

Page 22: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

CONSTRUCTION SWEDEN

REVENUE* (NOK MILL.) EBT (NOK MILL.) AND MARGIN ORDER BACKLOG (NOK MILL.)

22

0

2 000

4 000

6 000

8 000

2013 2014 2015 2016

Building Construction Civil Engineering

0%

1%

2%

3%

4%

5%

0

25

50

75

100

125

2013 2014 2015 2016

EBT Margin

0

2 000

4 000

6 000

8 000

2013 2014 2015 2016

Building Construction Civil Engineering

Page 23: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

CONSTRUCTION DENMARK

REVENUE* (NOK MILL.) EBT (NOK MILL.) AND MARGIN ORDER BACKLOG (NOK MILL.)

23

0

500

1 000

1 500

2 000

2 500

2013 2014 2015 2016

Building Construction

0%

2%

4%

6%

8%

0

25

50

75

100

125

2013 2014 2015 2016

EBT Margin

0

500

1 000

1 500

2 000

2 500

2013 2014 2015 2016

Building Construction

Page 24: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

PROPERTY DEVELOPMENT

24

Landskrona Strandbyn

Gartnerløkka, OsloBrf Greenroof, Gothenburg Kvartal 33, Lillestrøm Branddörren, Högdalen

Östra Sala Backe, Uppsala

Sørengstranda, Oslo

Kjøita Secret Garden, KristiansandKonsul Lorcks Hage, TrondheimBrf Äppelblom, Gothenburg

Lomma Läge, Skåne

Page 25: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

PROPERTY DEVELOPMENT

PROFIT AND RETURN STRONG RESIDENTIAL SALES IN 2015 (NUMBER OF UNITS)

25

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

2012 2013 2014 2015 2016

Profit (NOK mill.) Return (%)

0

500

1 000

1 500

2 000

2012 2013 2014 2015 2016

Veidekke's share Joint venture

*2012 and 2016 is adjusted for changes in the pension scheme

+85%

Page 26: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

PROPERTY DEVELOPMENT SWEDEN

NO. OF UNITS SOLD NO. OF UNITS UNDER CONSTRUCTION PROFIT AND RETURN

26

74%

89%

98%

94%

-

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2016 -

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2016

Joint ventureVeidekke’s share Sales ratio, units under construction

0%

10%

20%

30%

40%

50%

-

100

200

300

400

500

Profit Return (%)

NOK mill.

Page 27: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

PROPERTY DEVELOPMENT NORWAY

NO. OF UNITS SOLD NO. OF UNITS UNDER CONSTRUCTION PROFIT AND RETURN

27

71%68%

71%

86%

-

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2016 -

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2016

0%

5%

10%

15%

20%

25%

-

50

100

150

200

250

2013 2014 2015 2016

Profit Return (%)

NOK mill.

Joint ventureVeidekke’s share Sales ratio, units under construction

Page 28: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

Housing development in major regions

STRONG MARKET POSITIONS IN PROPERTY

DEVELOPMENT

28

Land bank of 16 750 units

Page 29: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

RESIDENTIAL SALE STARTS

29

470

690

1 100

-

950

-

200

400

600

800

1 000

1 200

2014 2015 2016 2017

No.

of re

sid

en

tia

l un

its, V

eid

ekke

’ssh

are

470 760 1 250 1 050No. of units

incl. JV share

160

530

270

-

550

-

200

400

600

800

1 000

1 200

2014 2015 2016 2017

320 1 000 470 650

Page 30: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

RESIDENTIAL PROJECTS IN THE STOCKHOLM AREA

30

112

60

84

210

37

140

80

107

46

12 51

58

155

100290

35

170450

80

390

900

550

65

450

250

120

75

5 200Total 2017-2019:

70

40

Page 31: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

RESIDENTIAL PROJECTS IN THE OSLO AREA

31

110

450

360

130

270

310

150

2 350Total 2017-2019:

360

230

Page 32: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

INDUSTRIAL

32

Road Maintenance

Market share >15 %

59%

13%

28%

NOK

4.2

billion

Asphalt

Aggregates

Road

Maintenance

REVENUE 2016

Aggregates producer

Market share >10 %

Asphalt contractor

Market share >35 %

Page 33: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

GOOD LOCAL PRESENCE

33

Asphalt plants and Quarries &

plants are covering the most

important markets

24 Road maintenance contracts

Veidekke is well positioned for the

many planned road projects

Road maintenance contracts

Stavanger

OsloBergen

Trondheim

Kristiansand

AL

TA

Tromsø

Bodø

Ålesund

Smaller projects

Large projects1 Asphalt plants

Quarries & plants

1) Projects with expected volume of >100 000 tonnes asphalt (Sources: Veidekke, The Norwegian Public Roads Administration (SVV))

Page 34: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

INDUSTRIAL

REVENUE AND MARGIN*

34

0%

1%

2%

3%

4%

5%

6%

0

1

2

3

4

5

2012 2013 2014 2015 2016

Revenue (NOK bill.) Margin %

*Adjusted for changes in the pension scheme in 2012 and 2016

QUARTERLY REVENUE, INDUSTRIAL (NOK MILL.)

0

200

400

600

800

1 000

1 200

1 400

1 600

Q1 Q2 Q3 Q42013 2014 2015 2016

Page 35: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

SOLID PERFORMANCE IN ASPHALT AND AGGREGATES

PROFIT BEFORE TAX* (NOK MILL.) MARGIN DEVELOPMENT*

35

-200

-100

0

100

200

300

2012 2013 2014 2015 2016

Road Maintenance Aggregates Asphalt

-10%

-5%

0%

5%

10%

15%

2012 2013 2014 2015 2016

Total Asphalt Road Maintenance Aggregates

*Adjusted for positive one-off effects from changes in the pension scheme in 2012 and 2016

Page 36: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

LEADING POSITION WITHIN THE ROAD SEGMENT

36

• Good operations and continuous improvements

• Develop positions

• Large infrastructure projects

• Environmental benefits through energy efficiency

• Good operations and continuous improvements

• Develop positions through organic growth and

acquisitions

• Turnaround

• The right contract and project execution

• Large infrastructure projects

Aggregates

Road Maintenance

Asphalt

Page 37: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

GOALS AND AMBITIONS

Page 38: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

A STRONG SCANDINAVIAN MARKET

38

900billion

0

50

100

150

200

250

300

350

400

450

2000 2002 2004 2006 2008 2010 2012 2014 2016e 2018p

Bill

. 2017-N

OK

Norway Sweden Denmark

INVESTMENTS IN THE CONSTRUCTION SECTOR

Sources: Veidekke, SCB, DST and SSB.

Percentages are average annual growth prognosis for 2017 and 2018

+2 %

p.a.

+2 %

p.a.

+5 %

p.a.

Page 39: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

www.trafifverket.se

IMPORTANT TRENDS

39

Larger projects Increased competition

Complex projects Environmental focus

Page 40: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

OUR LONG-TERM GOALS

40

5%

CONSTRUCTION INDUSTRIALPROPERTY DEVELOPMENT

15%

MARGIN MARGIN

6,5%

RETURN ON INVESTED

CAPITAL

SERIOUS INJURIES

0

Margin is based on Profit before tax

OCCUPATIONAL

HEALTH AND SAFETY

Page 41: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

AMBITIONS FOR FURTHER GROWTH

Exploit strong

positions and good

markets

Selective

acquisitions

Focus on

profitability

41

2030

40

2012 2016 2020

Page 42: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

OUR FOCUS

CONSTRUCTION

Selective prioritisation of new

projects

Targeted measures in

businesses with low

profitability

PROPERTY DEVELOPMENT

Take advantage of the good

markets

Further develop the land bank

INDUSTRIAL

Turnaround in Road

Maintenance

Further develop the positions

in Asphalt and Aggregates

42

Asphalt Aggregates MaintenanceBuilding Construction Civil Engineering

Page 43: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

OUR INVESTMENT PROPOSITION

Strong positions in the Scandinavian

construction markets

Revenue and profitability growth

Strong order backlog in construction

Attractive property development portfolio

Solid financial position

Dividend proposal of NOK 4.5 for 2016

43

Page 44: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

APPENDIX - GROUP FINANCIALS

Sjödalsterrassen, Brandstegen, Huddinge

Page 45: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

BUSINESS AREAS

Amounts in NOK million2016* 2015

Revenues Profit Margin Revenues Profit Margin

Construction Norway 15 096 596 4.0% 12 031 493 4.1%

Construction Sweden 7 819 102 1.3% 6 156 56 0.9%

Construction Denmark 1 713 105 6.2% 1 608 96 6.0%

Total Construction 24 629 804 3.3% 19 795 644 3.3%

Property Development Norway 338 149 413 146

Property Development Sweden 2 864 418 1 712 159

Total Property Development 3 202 567 2 126 306

Industrial 4 162 136 3.3% 4 033 190 4.7%

Other -1 856 -47 -1 444 -97

Total Group 30 137 1 460 4.8% 24 509 1 043 4.3%

45

* Positive one-off effect from changes to the disability pension scheme in Norway of NOK 108 mill. attributed to Construction with NOK 81 mill., NOK 19 mill. to

Industrial, NOK 4 mill. to Property Development and NOK 4 mill. to Other.

Page 46: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

CHANGES IN PROFIT BEFORE TAX

PROFIT BEFORE TAX*

46

0

200

400

600

800

1 000

1 200

1 400

1 600

2015 Norway Sweden Denmark Norway Sweden Industrial Other 2016

NO

K m

ill.

Construction Property development

1 043 2246 9

-1

259

-73

50

1 352

* One-off effect from changes to the disability pension scheme in Norway in light red

1 460

Page 47: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

INCOME STATEMENTFull year

Amounts in NOK million 2016 2015

Revenue 28 613 24 225

Operating expenses -27 284 -23 039

Share of net income from associates and JVs 190 130

Depreciation/impairment -466 -372

Operating profit 1 053 944

Net financial income 38 6

Profit before tax 1 092 950

Income tax expense -170 -167

Profit after tax 922 782

Of which non-controlling interests 35 18

Profit after tax (net) 887 765

Earnings per share (NOK) 6.6 5.7

Profit before tax, segment 1 460 1 043

47

Page 48: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

BALANCE SHEET – ASSETSAmounts in NOK million 31.12.2016 31.12.2015

Goodwill and other intangible assets 1 385 1 255

Deferred tax assets 65 65

Land and buildings 560 556

Plant and machinery 1 954 1 689

Investments in associates and joint ventures 1 363 1 134

Financial assets 649 852

Total non-current assets 5 975 5 550

Non-residential and residential projects 4 877 3 355

Inventories 455 310

Trade and other receivables 5 494 5 171

Cash and cash equivalents 644 402

Total current assets 11 470 9 238

Total assets 17 445 14 788

48

Page 49: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

BALANCE SHEET – EQUITY AND LIABILITIESAmount in NOK million 31.12.2016 31.12.2015

Equity 3 465 3 218

Pensions and deferred tax liabilities 877 940

Bonds 750 750

Amounts due to credit institutions 212 517

Other non-current liabilities 136 103

Total non-current liabilities 1 975 2 310

Debt to credit institutions 44 43

Trade payables and warranty provisions 5 097 4 626

Public duties and taxes payable 784 759

Other current liabilities 6 080 3 832

Total current liabilities 12 005 9 260

Total equity and liabilities 17 455 14 788

Net interest-bearing debt 0 606

49

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STATEMENT OF CASH FLOWS2016 2015

Amounts in NOK million Construction Property

developmentIndustrial Other1) Group Group

Profit before tax 804 567 136 -415 1 092 950

Depreciation/impairment 295 1 167 3 466 372

Other working capital 153 -273 62 380 322 -551

Cash flow from operating activities 1 252 295 365 -32 1 880 771

Acquisition/disposal of PPE -383 -12 -252 -13 -659 -463

Other investing activities -126 20 8 -244 -341 -600

Cash flow from investing activities -509 9 -244 -256 -1 000 -1 063

Dividend paid - - - -535 -535 -468

Other financial items -65 14 -22 334 261 -120

Cash flow from financing activities -65 14 -22 -200 -274 -588

Change in net interest-bearing debt 678 318 99 -489 606 -879

Invested capital at 31.122) 3 115 1 133 4 326 4 472

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*1) Includes IFRS adjustments and Group eliminations 2) Invested capital is calculated only for the capital-intensive business segments

Property Development and Industrial

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FINANCIAL GOALS AND RESULTS

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BUSINESS AREA LONG TERM GOAL AVG 2012-15 2016

Construction Margin (EBT) 5.0% 2.9% 2.9%

Norway 3.3% 3.4%

Sweden 1.0% 1.3%

Denmark 5.4% 6.2%

Industrial Margin (EBT) 6.5% 3.7% 2.8%

Property developmentReturn on

invested capital15.0% 10.4% 21.4%

Norway 11.9% 12.1%

Sweden 9.4% 45.1%

*2012 and 2016 are adjusted for changes in the pension scheme

Page 52: 2 kvartal 2014 - CisionCONTENTS 2 + Company overview 3 + Business areas 17 + Construction 18 + Property development 24 + Industrial 32 + Goals and priorities 37 + Appendix - Group

INVESTOR RELATIONS

Jørgen Michelet

Senior Vice President Finance

T: +47 917 43 856

[email protected]