Q Investor Presentation Q2 2012

Transcription

1 Investor Presentation

2 Q Q Q Q Q Q Q Q Q Q Q Health, Safety and the Environment LTI rate Number of lost time accidents per million hours worked Norge Norway Danmark Denmark Sverige Sweden Skandinavia Scandinavia Increased LTI rate, but reduced number of accidents since last quarter Reduced sickness absence Safety training for all employees on our production sites HSE Week to be held throughout the Group in Q3 4 out of 5 injuries to be eliminated by

3 Q2 Highlights

4 Characteristics of Q2 High and increasing activity level in the Group Turnover up 16% Organic growth driven by building operations and housing development in Norway Profit margin for construction operations of 2.4% (2.0%) Satisfactory results for Property Development in Norway, but still weak results in Sweden Good start to production season for Industry operations Order backlog substantially increased 4

5 Change in Earnings before Tax Earnings before tax MNOK Bouwfonds 124 Veidekke Gjenvinning Q Construction Industry Property Other 5

6 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Order Backlog Order Backlog MNOK Norway Sweden Denmark Up 10% in Q2 Increasing in Norway, stable in Sweden and Denmark New contracts distributed evenly between building and heavy construction Six new road maintenance contracts for operations in Industry this year Since Q4 2011, the order backlog for Industry (asphalt and road maintenance) has been included in the figures for Norway. For it amounts to MNOK

7 An Effective Strategy Skills and resources Selective in respect of acquisitions Focusing on major contracts Involving interaction internally and externally 7

8 Potential for Efficiency Improvement Continuous improvement processes Planning and design by use of new technology The Veidekke School has more than course days per year Enhancing skills Larger number of employees Apprentices and trainees 8

9 Selected Acquisitions Three smaller acquisitions in Q2 Brinkab heavy construction, Sweden Prosjekteringspartner building, Oslo Kito Asfalt asphalt, Buskerud County In accordance with Veidekke s strategy to support organic growth opportunities and gain access to expertise 9

10 Many Major Contracts Growing share of major projects in order backlog this year Hamar Stadium (MNOK 900), Building The Nöten Quarter (MSEK 500), Building The Dovre line (MNOK 940), Transportation Highway 2 (MNOK 566), Transportation 10

11 Involving Interaction Highway 2 Construction operations awarded MNOK 566 contract Cooperation between Construction and Industry operations Contract won despite tender not being the lowest 11

12 Involving Interaction Sørenga A centrally and attractively situated site in Bjørvika in Oslo To be acquired 50/50 by Veidekke and REMA Eiendom Øst The site may be developed into approx. 200 dwellings and approx sqm of commercial premises (grocery shops and restaurants) Gross purchase price of MNOK 280 to be paid in summer 2013 Construction will probably start in

13 Business Areas

14 Business Areas Q2 Q Figures in MNOK Operating rev. EBT Margin Operating rev. EBT Margin Construction, Norway % % Construction, Sweden % % Construction, Denmark % % Total Construction % % Property, Norway % % Property, Sweden % % Property, Denmark Total Property % % Veidekke Industry % % Other Total Group % % 14

15 Construction Operations in Norway High production level, increased by 22% Building increasing the most (30%) Stable in heavy construction (5%) Improved results; gradually increasing project margins Figures in MNOK Q2 12 Q Operating revenues Operating profit (EBIT) Profit, associated companies Net financial items Profit before tax (EBT) Profit margin (%) % increase in order backlog Increase both in building (3%) and construction (15%) High volume of new orders. Two major contracts signed 15

16 Construction Operations in Norway Market Good market for building operations Increasing cost pressure, especially for sub-contractors High activity level within transportation projects, but still slow for private industry Operations Good operations and profit margin in many of the districts Reorganisation to be implemented in some of the units Good customer relations; increasing number of negotiated contracts Skills and recruitment Demanding labour market, but good access to resources Emphasis on improvement work and upgrading of skills 16

17 Construction Operations in Sweden Stable development of results Heavy construction units contributed the most Positive results in all units except for heavy construction in Skåne Stable order backlog despite the demanding market Figures in MNOK Q2 12 Q Operating revenues Operating profit (EBIT) Profit, associated companies Net financial items Profit before tax (EBT) Profit margin (%) Focusing on large-scale industry Acquired the company Brinkab AB 17

18 Construction Operations in Denmark Turnover down 10% Maintained margin in a demanding market Good project earnings Cost reductions Order backlog unchanged Will maintain strategy to focus on contracts awarded on parameters other than price Signed one major contract for the construction of a commercial building Figures in MNOK 2Q 12 2Q Operating revenues Operating profit (EBIT) Profit, associated companies Net financial items Profit before tax (EBT) Profit margin (%)

19 Industry Operations High turnover 30% increase, adjusted for recycling operations in 2011 Increased asphalt production (25%) High activity in Road Maintenance and Gravel Improved results in all units Increased earnings in Asphalt, and margin on same level as last year Strengthened market position for asphalt operations Purchase of the company Kito Asfalt in Buskerud County Figures in MNOK Q2 12 Q Operating revenues Operating profit (EBIT) Profit, associated companies Net financial items Profit before tax (EBT) Profit margin (%) Capital invested * Q2 2011: result Veidekke Gjenvinning 124 MNOK Asphalt Gravel Maintenance Operating revenues Profit before tax (EBT)

20 Property Development Norway High activity level leading to good project margins Cost variance on single project affected earnings by MNOK 15 Sweden Still weak results Low sales figures in previous quarters leading to low activity Considerable increase in capital invested Site acquisitions Increased working capital in ongoing projects Figures in MNOK Q2 12 Q Operating revenues Operating profit (EBIT) Profit, associated companies Net financial items Profit before tax (EBT) Capital invested Resultat NO SE DK Operating revenues Profit before tax (EBT)

21 2008* 2009* 2010* Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Housing Sales Quarterly Trend Housing sales, Veidekke s share Number of units Norway Sweden Norway Strong market in and around the major cities The stage is set for stepping up the pace of sales and construction starts in Oslo Sweden Market is still hesitant Interest is good, but getting credit and sales of current dwellings are limiting factors *Average during quarter 21

22 Q4 05 Q4 06 Q4 07 Q4 08 Q4 09 Q4 10 Q4 11 Housing Units under Production Units under production, Veidekke s share Housing units Norway Sweden Denmark housing units under production 82% sales ratio 313 units started, all in Norway 96 units handed over Expected production level at year-end of approximately

23 Housing Portfolio 200 A total of housing units Veidekke s share In Norway: units Veidekke s share In Sweden units Veidekke s share Approx. 70 per cent are options

24 Consolidated Financial Statements (IFRIC 15)

25 Income Statement Figures in MNOK (IFRIC 15) Q Operating revenues Operating revenues Depreciation Operating profit (EBIT) Profit, associated companies Net financial items Earnings before tax (EBT) Tax Profit for the quarter Of which, non-controlling interests Profit for the quarter (net) Earnings per share (NOK) Operating revenues, segment Earnings before tax (EBT), segment

26 Balance Sheet Assets Figures in MNOK (IFRIC 15) 30 June December June 2011 Goodwill and other intangible assets Deferred tax assets Buildings/land Machinery/equipment Investments in associated companies Financial assets Total fixed assets Non-residential and residential projects (sites included) Inventories Accounts receivable Cash and cash equivalents Total current assets Total assets

27 Balance Sheet Equity and Liabilities Figures in MNOK (IFRIC 15) 30 June December June 2011 Equity Pension commitments and deferred tax Debt to credit institutions Creditors Other liabilities Total liabilities Total equity and liabilities Net interest-bearing position Equity ratio (%)

28 Statement of Cash Flow At 30 June 2012 At 30 June 2011 Figures in MNOK (IFRIC 15) Construction Property Industry Dividend Group Group Earnings before tax Depreciation Other working capital etc Cash flow, operating activities Purchase/sale of tangible non-current assets Other investing activities Cash flow, investing activities Dividend paid Other Cash flow, financing Change interest-bearing debt Capital invested at 30 June

29 The Road Ahead

30 Housing Market Norway: Sound market Good household economy Price sensitive and selective Sweden: Hesitant market Slower presales Banks are reluctant Good interest at showings Large migration to major cities intensifies the need for new dwellings 30

31 Building and Construction Markets in Scandinavia Volatile international economy may affect our markets Norway: Still good growth and high activity level Sweden: Market is levelling off Building and Construction Market Fixed prices (NOK billion) Denmark: Still a weak market E 2015E 31

32 Market Prospects 2013 Norway still a good market Growth of roughly 4% Housing maintained by good household economy Good progress in heavy construction segment Sweden market levelling off Growth of roughly 1-2% Number of housing starts has increased Continued high activity in heavy construction segment Veidekke s Economic Activity Report will be presented on 17 September

33 The Past Few Years SOUND FINANCIAL POSITION STABILISED MARKETS CLEAR STRATEGY IN THE RUN-UP TO

34 The Strategy Yields Results Higher turnover and order backlog Good operations and improved margins Strengthened our market positions We have a competent and committed organisation 34

35 Financial Calendar 2012 Economic Activity Report 17 September at 12 noon Presentation of Results Q3: 8 November at 8 a.m. 35

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