powerpoint presentation · business areas q1 2012 10 q1 2012 q1 2011 figures in mnok operating rev....

Q1 2012Oslo, 11 May 2012

Terje R. Venold, President and CEO

Jørgen Wiese Porsmyr, Executive Vice President and CFO

Health, Safety and the Environment

0

5

10

15

20

25

30

35

Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012

2

■ Two fatal accidents

this year

■ Higher number of

lost-time injuries

■ Slightly increased

sickness absence

■ 4 out of 5 injuries to

be eliminated by

2015

LTI rateNumber of lost-time injuries per million hours worked

Norway Sweden

Denmark Scandinavia

Q1 Highlights

3

Characteristics of Q1

■ High activity in the Group

Strong organic growth, turnover up 22%

Driven by construction operations in Norway

Clear growth in order backlog

■ Results somewhat improved compared with 2011

Margins on construction operations in Norway remain low

Industry – a quarter of expenditures, as expected

■ Housing sales

High in Norway

Signs of improvement in Sweden

4

Change in Earnings Before Tax

5

Earnings before taxMNOK

-80

-70

-60

-50

-40

-30

-20

-10

0

Q1 2011 Construction Industry Property Other Q1 2012

-69 +19-2

-7

+8-52

Order Backlog

6

■ Increased by 6% in

quarter

■ Record high in

Norway

■ Increasing level in

heavy construction

■ Stable level in

building

Order BacklogMNOK

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Q1

07

Q3

07

Q1

08

Q3

08

Q1

09

Q3

09

Q1

10

Q3

10

Q1

11

Q3

11

Q1

12

Norway Sweden Denmark

New Contracts after End of Quarter

7

■ Fabege and Veidekke A joint project worth MSEK 500

Renovation and modernisation of the Nöten building in Stockholm

■ Hamar Stadium Shopping centre, non-residential and

residential project worth MNOK 900

Letter of intent signed

Annual General Meeting, 10 May 2012

■ Dividend of NOK 2.75 per share adopted Total dividends of MNOK 367.7

To be distributed on 24 May

■ Renewal of authorisation to repurchase and issue shares

■ Two new shareholder-elected board members Per Otto Dyb (born 1955), graduate

engineer, CEO of Siemens Norway

Ann Christin Gjerdseth (born 1966), graduate engineer, Director of FMC Kongsberg Subsea

8

Dividends paid and repurchasesNOK per share

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

Ordinary dividend Extraordinary dividend Repurchase*

*NOK/outstanding shares

Business Areas

9

Business Areas Q1 2012

10

Q1 2012 Q1 2011

Figures in MNOK Operating rev. EBT Margin Operating rev. EBT Margin

Construction Norway 2,769.6 42.9 1.5% 2,056.4 40.8 2.0%

Construction Sweden 722.8 15.1 2.1% 717.5 0.9 0.1%

Construction Denmark 310.6 6.6 2.1% 282.4 3.9 1.4%

Total Construction 3,803.0 64.6 1.7% 3,056.3 45.6 1.5%

Property Norway 280.9 44.8 15.9% 226.7 39.1 17.2%

Property Sweden 108.1 -5.0 -4.6% 150.1 7.8 5.2%

Property Denmark 5.4 -1.9 - 0.3 -2.0 -

Total Property 394.4 37.9 9.6% 377.1 44.9 11.9%

Veidekke Industry 301.2 -143.5 -47.6% 311.0 -141.1 -45.4%

Other -199.8 -10.8 - -206.3 -18.5 -

Total Group 4,298.8 -51.8 -1.2% 3,538.1 -69.1 -2.0%

Construction Operations in Norway

■ High activity in quarter (34%)

Most significant growth in building (51%)

Stable in heavy construction (8%)

■ Some improvement in results, but margins

are disappointing

Profit margin 1.5%

Weak results from some projects nearing

completion

■ Continued increase in order backlog (4%)

Increase in volume of long-term

contracts in heavy construction (14%)

Stable level in building

11

Figures in MNOK Q1 2012 Q1 2011 2011

Operating revenues 2,769.6 2,056.4 9,499.0

Operating profit (EBIT) 23.6 28.4 149.9

Profit, associated companies -0.1 -0.1 2.1

Net financial items 19.4 12.5 38.2

Profit before tax (EBT) 42.9 40.8 190.2

Profit margin (%) 1.5 2.0 2.0

Development of Markets and Margins

■ Building

High levels of activity in major cities

Acceptable margins in many districts; a few areas pulling margins down

Some cost pressure, especially from subcontractors

Many projects in bidding phase, commercial as well as housing projects

■ Heavy construction

Weak margins on ongoing projects; improved prices on new contracts

High activity in transportation projects, low activity in private industrial

projects

Demanding market for smaller projects

12

Construction Operations in Sweden

■ Improved margins

Good margins in Stockholm,

especially for heavy construction

Losses on some

Skåne/Gothenburg operations

■ 25% growth in order backlog

In both building and heavy

construction

■ Acquisition of Brinkab AB in April

Specialises in private industry

Annual turnover approximately

MNOK 150

13


Operating revenues 722.8 717.5 3,383.7


Profit, associated companies -1.3 - 1.9

Net financial items -1.1 -0.2 -2.7

Profit before tax (EBT)15.1 0.9 54.8


Construction Operations in Denmark

■ Increasing turnover in quarter

■ 24% reduction in order

backlog

■ Satisfactory margin in a

demanding market

■ Strategy to increase share of

contracts won on parameters

other than just price

14




Profit, associated companies - - 6.9




Industrial Operations

■ Off-season in asphalt operations

Higher number of contracts won in Public

Roads Administration’s bidding round (34%)

Veidekke’s tenders in the county of Trøndelag

rejected

Good backlog of orders for private customers

■ High activity in gravel and crushed stone

operations (aggregates)

■ Road maintenance operations

Result MNOK -1 (MNOK -8)

6 loss-bringing contracts soon to be completed

(MNOK 180 per year)

4 new contracts in 2012 (MNOK 120 per year

for 5 years)

15



Operating profit (EBIT) -134.9 -128.8 120.3

Profit, associated companies -3.7 -5.9 9.4

Net financial items -4.9 -6.4 85.8

Profit before tax (EBT) -143.5 -141.1 215.5

Profit margin (%) -47.6 -45.4 7.1

Capital invested 862 1,002 917

Results per Q1 2012 Asphalt

Aggre-

gates

Road

Operating revenues 47 70 205

Profit before tax (EBT) -124 -13 -1

Property Development

■ Good results in Norway

High number of pre-sales in

ongoing and new projects

Strong market in and around

major cities

■ Weak results in Sweden

Weak sales in second half of

2011 resulted in postponement of

construction starts

Increasing sales towards end of

quarter

16




Profit, associated companies 3.2 21.1 181.2

Net financial items 8.3 -1.9 -8.5


Investert kapital 2,894 2,220 2,641

Result per Q1 2012 NO SE DK

Operating revenues 281 108 5

Profit before tax (EBT) 45 -5 -2

Housing Sales – Quarterly Trend

17

Kvillebäcken, the Cyklisten housing cooperation

Housing sales, Veidekke’s shareNumber of units

*Average during quarter

0

50

100

150

200

250

2008* 2009* 2010* Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Norway Sweden

Housing Units under Production

18

■ 1,245 housing units

under production

78% sales ratio

■ 192 units started, all in

Norway

■ 51 units handed over

■ Expected production

level at year-end of

approx. 1,300 units

Units under production, Veidekke’s shareHousing units

0

500

1000

1500

2000

2500

Q4

05

Q4

06

Q4

07

Q4

08

Q4

09

Q4

10

Q4

11


Projects Started this Year

19

Konfektfabrikken ,stage 3

￭ The former production facilities of

Freia at Rodeløkka in Oslo

￭ Ownership share100%

￭ 63 housing units

￭ 2,500 m2 outdoor premises

￭ Total of 201 housing units over

4 construction stages

Marienfryd, stage 3

￭ Situated between Lille Tøyen

Hageby and the Tiedemann Park

in Oslo

￭ Ownership share100%


￭ A courtyard of 3,000 m2



Hagebyen, 1

￭ Situated at Fornebu in Bærum

￭ Ownership share 50%, along with

Fornebu Utvikling ASA




Housing Portfolio

■ Totalling 13,000 housing units

Veidekke’s share:10,500

■ In Norway:

6,500 housing units

Including 2,500 jointly-owned

projects

■ In Sweden

6,500 housing units

Approx. 70 per cent are

options

20

2,450

1,750

500

800

7501,350

950

4,200

250

Results Group (IFRIC 15)

21

Income Statement

Figures in MNOK (IFRIC 15) Q1 2012 Q1 2011 2011

Operating revenues 4,035.7 3,440.7 17,727.3

Operating revenues -4,090.3 -3,454.9 -16,999.7

Depreciation -70.7 -83.8 -327.3

Operating profit (EBIT) -125.3 -98.0 400.3

Profit, associated companies 1.5 8.3 229.2


Earnings before tax (EBT) -98.1 -87.7 747.7

Tax 22.1 17.5 -102.9

Profit for the quarter -76.0 -70.2 644.8

Of which, non-controlling interests -1.2 -0.1 7.1

Profit for the quarter (net) -74.8 -70.1 637.7

Earnings per share (NOK) -0.6 -0.5 4.8

Earnings before tax (EBT), segment -51.8 -69.1 751.3

22

Balance Sheet – AssetsPer date

Figures in MNOK (IFRIC 15) 31 March 2012 31 December 2011 31 March 2011

Goodwill and other intangible assets 576.6 580.5 665.5

Buildings/land 67.4 67.4 53.1

Machinery/equipment 446.2 488.0 489.9

Investments in associated companies 1,135.1 1,136.8 1,217.6

Deferred tax asset 654.8 515.1 586.2

Financial assets 338.7 280.1 279.9

Total fixed assets 3,218.8 3,067.9 3,292.2

Non-residential and residential projects (sites

included)3,463.7 3,261.8 2,070.7

Inventories 287.1 264.2 267.3

Accounts receivable 2,706.6 3,055.3 2,568.9

Cash and cash equivalents 177.2 276.0 173.5

Total current assets 6,634.6 6,857.3 5,080.7

Total assets 9,853.4 9,925.2 8,372.9

23

Balance Sheet – Equity and Liabilities

Per date

Figures in MNOK (IFRIC 15) 31 March 2012 31 December 2011 31 March 2011

Equity 2,200.9 2,294.4 1,987.9

Pension commitments and deferred tax 378.4 386.9 264.6

Debt to credit institutions 1,376.0 801.4 916.9

Creditors 3,362.5 3,536.8 3,087.6

Other liabilities 2,535.6 2,905.7 2,115.9

Total liabilities 7,652.5 7,630.8 6,685.0

Total equity and liabilities 9,853.4 9,925.2 8,372.9

Net interest-bearing position -946.2 -274.4 -508.2

Equity ratio (%) 22.3 23.1 23.7

24

Statement of Cash Flow

25

Q1 2012 Q1 2011

Figures in MNOK (IFRIC 15) Construction Property Industry Dividend Group Group

Earnings before tax 7.5 37.9 -143.5 - -98.1 -87.7

Depreciation 37.1 0.9 32.7 - 70.7 83.8

Other working capital etc. -251.0 -44.9 54.8 - -241.1 -200.3

Cash flow, operating activities -206.4 -6.1 -56.0 - -268.5 -204.2

Purchase/sale of tangible non-current assets -33.4 37.9 -35.1 - -30.6 -80.5

Other investing activities -39.6 -12.8 3.9 - -48.5 -56.8

Cash flow, investing activities -73.0 25.1 -31.2 - -79.1 -137.3

Dividend paid - - - - - -

Other -30.4 -292.5 -1.3 - -324.2 -5.2

Cash flow, financing -30.4 -292.5 -1.3 - -324.2 -5.2

Change interest-bearing debt -309.8 -273.5 -88.5 - -671.8 -346.7

Capital invested at 31 March 2012 -178 2.894 862 3.577 2.905

The Road Ahead

26

Today’s Veidekke

■ Scandinavian player

■ BNOK 350 total market

■ 5-6% market share

■ 6,100 employees

■ BNOK 18 in turnover

27

Building and heavy construction 30%

Non-residential 35%

15% Asphalt, Road maintenance, Aggregates

20% Housing

28

We Have a Solid

Foundation

￭ Strong values

￭ Profitability before growth

￭ Highly skilled

￭ Broad involvement

￭ Healthy economy

29

We Have a

Clear Strategy

+ Accident free

+ Competent

+ Inclusive

+ Market opportunities

= Good and profitable

growth

10-15 per cent

Annual Growth

Profit margin

towards

7 per cent31

Market growth

Higher market share

Selective acquisitions

Good operations

Increased collaboration

Good customer solutions

Security First

Goal =

accident-free

operations

Next Generation HSE

■ Risk knowledge

■ Risk assessment

■ Sense of responsibility

■ Increased competence

■ Training and education

■ Goal to eliminate4 of 5 injuries by 2015

33

0

5

10

15

20

25

30

1990 1993 1996 1999 2002 2005 2008 2011

LTI rate

Competent

Technical expertise

Motivation

Enthusiasm

Long Experience – High Competence

■ More than 75 years experience

■ 6,100 employees continuously

developing

■ 3,600 skilled workers

■ 2,500 officials

■ Human resources development

programmes

■ Continuous improvement processes

■ Strong commitment to company

35

Growth Requires

More Employees

Increased recruitment rate

Good apprentice programme

Expanded trainee programme

More special competence

Selective acquisitions

36

http://www.flickr.com/photos/veidekke_se/5568299172/

Participative

Partnership

Across regions and

business areas

With customers and

suppliers

Increased

Partnership with

Customers and

Suppliers

+ Better solutions

+ Higher quality

+ More certain progress

+ Improved capacity utilisation

= Better deals for all parties

Building/Construction

is a Business in

Growth

Demographics

Urbanisation

Infrastructure

Environment & energy

B/C Markets in Scandinavia

■ 4% growth in 2012

■ 2-3% growth in

2013-2015

■ Norway: Slower

growth from a high

level

■ Sweden: Steady, high

activity

■ Denmark: Improving

from a low level 60

80

100

120

140

160

180

2001 2003 2005 2007 2009 2011 2013E 2015E

B/C MarketFixed prices (BNOK)

40

Market Outlook – Norway

+ Good growth in 2012 and 2013

+ Strong growth in housing

+ Strong growth in transportation

+ In the longer term: good growth

potential in Norway's economy

41

BNOK Market Growth 2012

Housing 41 5.0%

Private non-residential 27 2.5%

Public non-residential 24 6.0%

Heavy construction 40 7.0%

Accessible market 132 5.0%

72 per cent

Market Outlook - Sweden

+ Moderate growth this year, increasing

in 2013

+ Housing and private non-residential

down in 2012, positive in 2013

+ Booming activity in transportation,

especially in Stockholm

42

BSEK Market Growth 2012

Housing 40 -6.0%

Private non-residential 31 -2.5%




20per cent

Market Outlook – Denmark

+ Market at a low level, especially for

private sector

+ Focus on public non-residential

+ Heavy construction aided by large

transportation projects

43

BDKK Market Growth 2012

Housing 14 -2.0%

Private non-residential 12 -1.0%




8per cent

Growth Targets

■ We will continue to

deliver an annual

growth rate of

10-15% in the run-up

to 2015

■ Main drivers will be

Property and

Construction in

Norway and Sweden

44

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013E 2015E

Turnover development 1995-2015EMNOK

10-15%

Solid Land Bank – Strong Market

45

■ Strong housing market

expected

Population growth

Urbanisation

Good economy

■ Land bank of 13,000 units

■ Allows Veidekke to have

2,000-2,500 units under

production

2,450

1,750

500

800

7501,350

950

4,200

250

Towards 2,000-2,500 Units per Year in 2015

46

Housing units under production, Veidekke’s shareAnnual rate

■ Important profitability

driver for Veidekke

■ Cooperation with

construction units

Project development

Risk assessment

Utilisation of capacity

and competence

0

500

1 000

1 500

2 000

2 500

3 000

2005 2006 2007 2008 2009 2010 2011


2 500

2 000

Construction – Good Growth Opportunities

■ Significant organic growth opportunities

Large projects in and around large cities

Further development of market positions

Increased project development and

cooperation with Property

■ Selective acquisitions

Market positions and new competence

■ Profitability leader in Denmark – ”The

solutions-oriented partner”

47

Industry – Growth and Further Development

Market share

Asphalt (Norway)

■ Strong market position in Norway – internal improvement focus

■ Selective expansion possibilities

■ Goal-directed ventures in Sweden which bolster heavy construction

operations

30per cent

48

Market share

Operation and Maintenance

(Norway)

Market share

Aggregates (Norway)

10per cent

15per cent

Earnings Targets

49

Targets 2011Last 5

yearsParameter

Construction 5% 2.1% 4.0% Profit margin

Property 15% 12.2% 8.6% Return on invested capital

Industry 6,5% 7.1% 3.4%Profit margin

Group 7% 4.2% 4.3%Profit margin

We Shall Create …

Value for our shareholders

Profitable projects for our customers

Through our engaged and enthusiastic employees

We Continue to Build on the

Veidekke-House

51

Value-creating partnership

CU

ST

OM

ER

S

EM

PL

OY

EE

S

MA

NA

GE

ME

NT

SU

PP

LIE

RS

Professional – Honest – Enthusiastic – Ground breaking

powerpoint presentation · business areas q1 2012 10 q1 2012 q1 2011 figures in mnok operating rev....

Documents