ÅF Group Q Jonas Gustavsson, CEO Stefan Johansson, CFO

Transcription

1 ÅF Group Q Jonas Gustavsson, CEO Stefan Johansson, CFO 1

2 ÅF Group Q2, 2017 Net Sales 10% SEK M EBITA* 302 SEK M 3% EBITA margin* 9.4% *excl items affecting comparability 2

3 Global trends fuel our business Globalisation Digitalisation Urbanisation and sustainability Repositioning 3

4 Business overview Market Segments Public/private client Petrocemical 3% Mining&Steel Production 2% Telecom 3% Defence 2% Pulp&Paper 4% Life Science, Food & Pharma 8% Financial Services 2% Other - Mfg primarily 6% Power 15% Automotive & Vehicle 16% Public 31% Real Estate 18% Rail & Roads 21% Private 69% Data FY 10 largest clients (Volvo Cars and AB Volvo) 4

5 Highlights Q2 New projects Industrial project for a flexible production system at LKAB New control system in production process at Stora Enso Comprehensive project renewing Borås Hospital Project management of the Police National Emergency Unit in Norway Technical installations in the construction of Denmark's highest residential building Owner s Engineering for new hydropower plant in Egypt. Owner s Engineering for new nuclear plant in Turkey Acquisitions Koncept Stockholm -a fast-growing architectural firm with commercial customers in the premium segment within hospitality, retail and office property. 70 employees and sales ~SEK 85 million Eitech automation business with a wide range of services within industrial digitalisation, automation and robotics for industrial clients throughout Sweden. 42 employees and sales ~SEK 90 million 5

6 Market development Market for industrial investments is strong in Sweden Automotive, pharma, pulp & paper and other manufacturing industries are growing Mining & steel shows signs of increasing demand, however from low levels Digitalisation entails overall increasing demand for embedded systems and IT Continued high rate of investments in the infrastructure market Energy market in Europe still weak while demand continues to grow in Southeast Asia and Africa 6

7 Continued growth Net Sales SEK M (2 942) +10 % Apr - Jun, 2017 Net sales SEK M (2 942) Total growth 9.8 % Organic growth 2.1%* Continued growth in key segments and markets Jan - Jun, 2017 Net sales SEK M (5 585) Total growth 16.3 % whereof 2.8 %* organic growth Net sales SEK M *adjusted for calendar and currency effects 7

8 Improved profitability EBITA* 302 SEK M (292) Apr - Jun, 2017 EBITA* increased to 302 SEK M (292) EBITA margins above 9 % in 3 out of 4 divisions Improved margin in International division Restructuring costs 20 SEK M Jan - Jun, 2017 EBITA* increased to 589 SEK M (520) EBITA SEK M *excl items affecting comparability 8

9 Strong Cash Flow and Balance Sheet Cash Flow from operations generated SEK M 368 (386) Jan-Jun SEK M Comments Net Debt as of Dec 31, Cash flow from operating activities Capex 51 Acquisitions and Earn Outs acquisitions Dividend 350 Buyback of shares - Other 22 Net Debt as of Jun 30, Net Debt / EBITDA 2.3 Target

10 Industry Division Decreased EBITA EBITA 118 SEK M -3% EBITA margin 9.4% New assignments from LKAB and Stora Enso Market & highlights Overall strong industrial investments Increasing demand for industrial digitalisation and automation solutions Increasing demand for turnkey projects from manufacturing, food&pharma and automotive Mining & steel shows signs of increasing demand, however from low levels Continued growth Net sales SEK M +6% Organic growth 4.2%* Acquisition of Eitech automation business in July Net sales, SEK million Apr-Jun 2017 Apr-Jun *adjusted for calendar effects Jan-Jun 2017 Jan-Jun Full year EBITA, SEK million EBITA margin, % Average number FTEs

11 Infrastructure Division Stable EBITA EBITA 125 SEK M +0% EBITA margin 10.9% New assignments from Borås Hospital and Norwegian Ministry of Justice and Public Security Market & highlights Still strong demand in the infrastructure market Investments in sustainable buildings increasing the demand for project management and architecture The ability to drive both a larger number of minor assignments as well as major and more complex assignments is a success factor Continued growth Net sales SEK M +6% Organic growth -0.5%* The division was strengthened by the acquisition of Koncept Stockholm Net sales, SEK million Apr-Jun 2017 Apr-Jun Jan-Jun 2017 Jan-Jun Full year EBITA, SEK million EBITA margin, % Average number FTEs *adjusted for calendar effects

12 International Division Increased EBITA EBITA 30 SEK M +76% EBITA margin 7.3% Acquisitions, new assignments and increased utilisation rate improve EBITA Market & highlights Energy market in Europe still weak while demand continue to grow in Southeast Asia and Africa New Owner s Engineering assignments for hydro power plant in Egypt and nuclear plant in Turkey Also new assignments within transmission and distribution Increased growth Net sales 409 SEK M +56% Organic growth 7.9% Following the acquisition of AF Toscano, infrastructure operations represent approx 30% Net sales, SEK million Apr-Jun 2017 Apr-Jun Jan-Jun 2017 Jan-Jun Full year EBITA, SEK million EBITA margin, % Average number FTEs

13 Technology Division Stable EBITA EBITA 48 SEK M +0% EBITA margin 9.7% New assignment from BAE systems, Scania, SAAB, CEVT and Verisure Framework agreement with Zenuity Market & highlights Overall increasing demand for embedded systems and digital solutions Increased demand for product development assignments Strong demand from automotive and ÅF is established as the leading development partner in Sweden in this segment Also public IT and the defense industry shows positive signs Continued growth Net sales 490 SEK M +3% Organic growth 4.6%* Net sales, SEK million Apr-Jun 2017 Apr-Jun Jan-Jun 2017 Jan-Jun Full year EBITA, SEK million EBITA margin, % Average number FTEs *adjusted for calendar effects

14 Divisions development Q2 Division Industry Infrastructure International Technology Share of net sales 38% 34% 13% 15% Growth 5.8% 6.2% 55.7% 3.0% Whereof organic growth* 4.2% -0,5% 7.9% 4.6% EBITA margin 9.4% 10.9% 7.3% 9.7% *adjusted for calendar effects 14

15 Q2 Summary Strong result and continued good growth EBITA* 302 SEK M (292) +3% NET SALES SEK M (2 942) +10% Improved earnings and continued good growth The markets for industrial and infrastructure investments are strong Energy market remains weak in Europe Several key assignments within all divisions Acquisition of Koncept Stockholm and Eitech automation business Good progress in ongoing strategy review *excl items affecting comparability 15

16 Goals 2020 Sales Sales Euro 2 billion EBIT Best in class Best in class > 10 % over a business cycle Sales Sales Euro 2 billion Net debt Net debt/ebitda over a business cycle EBIT Best in class Best in class > 10 % over a business cycle Net debt Net debt/ebitda over a business cycle 16

17 Strategy process update Good progress in current strategy review ÅF has a unique breadth of capabilities to meet the ongoing trends such as digitalisation, automation and smart cities. New strategy will include growth initiatives as well as improved operational performance/cost reductions Further restructuring costs in Q3 Capital Markets Day Nov 8 17

18 Welcome to Capital Markets Day November 8 ÅF Headquarters in Solna, Sweden 18