Q Result presentation. Oslo, 13 February 2018

Transcription

1 Q Result presentation Oslo, 13 February 2018

2 Disclaimer Forward Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking. You should not place undue reliance on these forward-looking statements for many reasons. These forward-looking statements reflect current views with respect to future events and are by their nature subject to significant risk and uncertainties because they relate to events and depend on circumstances that will occur in future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity or performance will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this presentation, either to conform them to actual results or to changes in our expectations. 2

3 Highlights Continued strong project execution Key events Increase in tender activity in Norway Strong order backlog of NOK 2,408 million, an increase of 72% Proposed dividend of NOK 1.75 per share Key figures Q4 Revenues of NOK 674 million in 2017 vs NOK 552 million in 2016 EBITDA of NOK 70 million in 2017 vs NOK 47 million in 2016 EBITDA margin of 10.4% in 2017 vs 8.6% in 2016 Key figures 2017 EBITDA margin improved to 9.7% for 2017 from 7.7% in 2016 Full year revenue growth of 20% 3

4 Financials 4

5 Q key figures profit and loss Revenue in Q of NOK 674 million (NOK 552 million) EBITDA in Q of NOK 70 million (NOK 47 million) Includes M&A cost of NOK 2.4 million EBITA in Q of NOK 55 million (NOK 41 million) Restated (Amounts in NOK million) Q Q Revenue 673,8 551, , ,0 Operating expenses 604,1 504, , ,6 EBITDA 69,7 47,4 229,2 152,4 EBITA 54,7 41,2 183,7 127,7 EBIT 46,4 34,2 149,5 99,3 EBT 45,6 31,1 143,8 89,4 EBITDA (%) 10,4 % 8,6 % 9,7 % 7,7 % EBIT in Q of NOK 46 million (NOK 34 million) *Reported numbers for the first three quarters of 2016 reflects the corrections of the purchase price allocations for the 2015 business combinations and the divestment of the Geo business Amortisation of intangible assets is estimated to NOK 17 million in 2018 (NOK 34 million in 2017) 5

6 Order book development Order book* Q Q In NOK million Order book development Q3 17 Q4 17 In NOK million , , , ** % 1 000, ,00 0 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 0,00 Q3 17 Revenue Contracts FX effect Q4 17 *Reported figures Order book Revenues FX effects Contracts not announced Announced contracts **including Fibertech 6

7 Q key figures balance sheet Intangible assets of NOK 1,048 million Cash is NOK 409 million Net debt is NOK 30 million Equity ratio is 55% (Amounts in NOK million) ASSETS Intangible assets 1 047,9 631,8 Other non-current assets 287,2 150,8 Other current assets 740,6 422,5 Cash and cash equivalents 408,5 418,4 Total assets 2 484, ,4 EQUITY AND LIABILITIES Total equity 1 357, ,2 Non-current interest-bearing liabilities 317,3 110,8 Other non-current liabilities 26,7 16,0 Interest-bearing current liabilities 121,1 82,1 Other current liabilities 661,8 400,3 Total equity and liabilities 2 484, ,4 7

8 Q key figures cash flow Cash flow from operating activities of NOK 160 million Net cash flow from investing activities is NOK -29 million Fibertech net of NOK -24 million Capex NOK -6 million Net cash flow from financing activities is NOK -35 million Repayment of debt: NOK -26 million Share buyback: NOK -12 million Restated (Amounts in NOK million) Q Q Profit/loss before tax 45,6 31,1 143,8 89,4 Net cash flow from operating activities 160,1 67,1 132,6 146,9 Net cash flow from investing activities conti. oper. -28,5-18,8-246,9-88,9 Net cash flow from financing activities -35,4 130,8 92,2 93,1 Net change in cash and cash equivalents 96,2 201,8-18,1 172,1 Cash and cash equivalents at the start of the period 308,2 213,1 418,4 258,2 Translation differences 4,1 3,5 8,2-12,0 Cash and cash equivalents at the end of the period 408,5 418,4 408,5 418,4 8

9 Long-term growth for railway activity in Sweden NTP ERTMS Inlandsbanan Metro & tram Annual average spending in new proposed NTP* SEK billion Long-term railway spending development** SEK billion 7,1 +47% 10,4 23,1 +20% 27,8 25,0 20,0 15,0 10,0 Railroad operations and maintenance 10,8 11,5 10,7 8,6 9,8 7,5 8,3 Investments 10,1 10,3 11,1 13,3 5,0 6,2 5,8 6,6 7,5 7,4 7,3 7,6 9,0 8,2 9,3 10,1 Maintenance Maintenance Investments Investments , E 2019E 2020E Continued high activity levels expected in Sweden for 2018 The new NTP is scheduled for approval in April and is a likely trigger for further growth in demand for infrastructure services The Government s estimates for railway spending indicate another step-up in activity in 2019 and 2020 Sources: *) Preliminary NTP proposal **) : Swedish national budget: Tables for Investment plan for Trafikvärket and Maintenance of the State transport infrastructure 9

10 Continued market growth in Sweden NTP ERTMS Inlandsbanan Metro & tram 10

11 Long-term growth and improved visibility in Norway NTP ERTMS Metro & tram 2018 proposed railway spending Long-term railway spending development NOK billion per year 16.7% NOK billion per year 35,0 Operations, maintenance and renewal (partly non-adressable) Investments 13.7% 30,0 14,4 25,0 11,0 20,0 18,4 8,2 8, approved budget NTP Operations, maintenance and renewal Investments Includes funding for operations of Bane NOR and planning *) 15,0 10,0 5,0 0,0 9,8 9,1 3,8 4,4 5,1 6,5 3,1 2,3 2,4 1,4 3,3 3,4 3,7 4,7 5,4 5,7 5,6 5,5 6,7 7,4 10,7 9,0 10,9 11,0 14,4 7,1 8,2 8,9 10,4 NOK 430 million additional funding to railway operations and maintenance in final 2018 budget vs. proposed budget Norwegian Government supportive of increased investments in environmentally friendly transport systems Improved visibility on future spending as Bane Nor signed first four-year funding agreement with the Government 11 *)Sources: The Norwegian national budget, national accounts and the most recent NTP

12 Increased tender activity - Norway Selected investment projects included in first six years of NTP schedule NTP ERTMS Metro & tram NOK million ERTMS contract award planned H Source: Bane NOR, Contractor-day presentation 23 October 2017

13 Several tramline contracts coming up for award in Oslo NTP ERTMS Metro & tram Key tramway development projects A selection of upcoming tram tender processes Project Holtet ~2 years 2. Thv. Meyers Gate ~2 years 3. Storgata ~2 years 4. Grefsenveien ~3 years 5. Majorstua ~2 years Planning Estimated contract award Estimated construction 13 Source: Oslo Sporveier

14 Delivering on market consolidation strategy in

15 Record contract for Oslo tram confirms strategic positioning Major award for rebuilding Holtet base NOK 402 million turnkey contract including a full scope of specialist rail services including track, electro and groundwork Structure for reception and operation of new Oslo trams Base for 43 of 87 trams to be delivered by 2021 The biggest-ever award for NRC Group in Norway Tender with significant emphasis on execution capacity, environment and quality in addition to price The first major turnkey contract awarded by Sporveien Confirming shift towards bigger contracts involving several specialist disciplines In line with NRC Group s strategic positioning Source: Sporveien 15

16 Summary & outlook Solid results in 2017 Strong balance sheet and proposed dividend of NOK 1.75 per share Strong market outlook Overall improved project pipeline visibility Continue to build orderbook Continued focus on project execution Continued focus on consolidation and M&As 16

17 Appendix 17

18 20 largest shareholders Per 12 February 2018 INVESTOR NO OF SHARES % OF SHARES ACC TYPE COUNTRY DATUM ,05 NOR KGL PROSJEKT ,58 NOR ARCTIC FUNDS ,75 IRL DNB NOR MARKETS ,06 NOR SWEDBANK ,89 NOM SWE DANSKE BANK ,88 NOM SWE CHARLOTTE HOLDING ,14 NOR NORRON SICAV TARGE ,86 LUX NORDEA BANK ,75 NOM SWE LGA HOLDING ,68 NOR SOGN INVEST ,62 NOR VERDIPAPIRFONDET ALFRED BERG ,31 NOR FIRST GENERATOR ,91 NOR MIDDELBORG INVEST ,83 NOR JPMORGAN CHASE ,66 NOM SWE E.K HOLDING ,61 NOR SEB ,49 NOM SWE SEB ,28 NOM LUX HSBC TRINKAUS & BURK ,23 NOM DEU VERDIPAPIRFONDET ALFRED BERG ,23 NOR TOTAL NUMBER OWNED BY TOP ,81 TOTAL NUMBER OF SHARES

19 NOK mill. NOK mill. Seasonal fluctuations reported figures Revenues Q Q In NOK million EBITDA Q Q In NOK million ,0% ,0% 12,0% 10,0% 8,0% Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 6,0% 4,0% 2,0% 0,0% 19

20 Segments key figures quarterly development Restated Restated Restated Restated Restated Reported Reported Reported Reported Norway operations (NOK million) Full year 2015 Q Q Q Q Q Q Q Q Revenue 348,6 113,2 162,2 161,0 168,1 108,2 188,8 254,8 218,8 Operating profit/loss before depr. and amort. (EBITDA) 26,9-5,4 6,2 13,9-1,5-5,5 9,5 18,6 17,8 Operating profit/loss before amort. (EBITA) 21,3-7,8 3,4 10,6-3,7-9,9 5,1 13,0 9,7 Operating profit/loss (EBIT) 18,7-9,0 2,3 9,4-5,1-12,1 1,8 8,4 4,1 Sweden operations (NOK million) Full year 2015 Q Q Q Q Q Q Q Q Revenue 329,7 206,6 341,4 438,9 383,6 232,7 395,8 524,5 460,3 Operating profit/loss before depr. and amort. (EBITDA) 44,3 10,8 34,0 72,6 56,1 19,3 42,0 95,5 62,0 Operating profit/loss before amort. (EBITA) 42,1 9,2 31,7 66,6 52,2 15,0 37,2 88,6 55,0 Operating profit/loss (EBIT) 35,3 3,1 25,8 60,6 46,5 9,1 32,0 83,8 52,3 Parent, holding companies and eliminations (NOK million) Full year 2015 Q Q Q Q Q Q Q Q Revenue 0,0 0,0 0,0 0,0 0,0 0,0-3,0-2,8-5,3 Operating profit/loss before depr. and amort. (EBITDA) -39,3-4,5-17,3-5,3-7,3-7,8-8,6-3,6-10,0 Operating profit/loss before amort. (EBITA) -39,5-4,5-17,3-5,3-7,3-7,8-8,6-3,6-10,0 Operating profit/loss (EBIT) -39,5-4,5-17,4-5,3-7,2-7,8-8,6-3,6-10,0 20