ÅF GROUP Q3 2016...Q3 2016 Jonas Wiström, CEO Stefan Johansson, CFO 1. ÅF offices ÅF assignments...
Transcript of ÅF GROUP Q3 2016...Q3 2016 Jonas Wiström, CEO Stefan Johansson, CFO 1. ÅF offices ÅF assignments...
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ÅF GROUPQ3 2016Jonas Wiström, CEOStefan Johansson, CFO
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ÅF offices ÅF assignments 2015
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ÅF is currently active in more
than 100 countries
Net Sales R12 10,650 MSEK
100
10,650MSEK
No. of employees 8,600
8,600
ÅF has assignments around the world
Business overviewMarket Segments Subsidiary Origin
10 largest clients AB Volvo, Astra Zeneca, Uniper (EON), Ericsson, Oslo Lufthavn, Scania, Swedish Defence Materiel Administration (FMV), Swedish Transport Administration, Vattenfall, Volvo Cars
Note: Numbers above are Jan-Dec 2015
Energy: hydropower, nuclear power, renewable energy, thermal power, transmission and distribution.
Industry: automotive, defenceand security, manufacturing, food processing, pulp and paper, steel and mining, oil and gas, pharmaceuticals, telecommunications.
Infrastructure: real estate, road and rail.
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Power
Automotive &
Vehicle
Rail & RoadsReal Estate
Life Science,
Food & Pharma
Pulp&
Paper
Defence
Telecom
Mining&Steel Production
Petrocemical
Other – Manufacturing
primarily
Private Public
Sweden; 77%
Norway; 9%
Switzerland 5%
Finland&Baltic4%
Denmark; 3%
Spain; 1%
Czech; 1%
Other; 1%
19%
46%
35%
MISSION
ÅF is an engineering and consulting company for the energy, industrial and infrastructure markets.
Our pool of experience, with a unique range of
technologies, creates solutions that are
profitable, innovative and sustainable.
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OUR CORE VALUES
• Great people with drive• Teamwork• Indisputable Independence
VISION
The best partner for the best clients.
Our motto:
Innovation by experience!
Our strategy
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Market position
To become # 1 or # 2 in each market we act
Growth
13% average annual growth
• 6.5% organically
• 6.5% through acquisitions
Profitability
”Best in class”, 10% over a business cycle
Market overview
Long term trends
• Globalisation
• Digitalisation
• Urbanisation and Sustainability
• Repositioning
Current Market view
• Overall healthy demand for ÅF’s services.
• Strong demand from the automotive-, pharma- and pulp industries.
• Demand from the steel-, mining- and the oil & gas industries is weak.
• Strong demand for ÅF’s digitalisation and embedded systems services.
• Infrastructure market (rail & road and buildings) in Sweden and Norway remains strong.
• The politically unstable situation in Brazil continues. The state owned Nuclear operator
(ETN) has made a temporary suspension of a major nuclear power station project.
• The energy market in Europe, Latin America and Middle East is weak. Stronger demand
in South East Asia and Africa.
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Growth byacquisitions2016
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Company Country Net sales MSEK (estimate)
ÅF Reinertsen (inkl Tegn 3) Norway 300
ÅF Reinertsen Deal Sverige Sweden 150
Solid Norway 100
Sjöland & Thyselius Sweden 80
Ingenjörsprojekt Sverige Sweden 60
Erstad & Lekven Oslo Norway 60
Sandellsandberg arkitekter Sweden 50
Alteco Sweden 50
Optiman Prosjektledelse Norway 40
Traffic Team (51%) Denmark 20
+900MSEK estimated net sales
ÅF continues to grow and increases profitability further
Operating profit, the strongest ever Q3
• Operating profit, excl items affecting comparability
increased to 162 MSEK (143).
• Continued positive development within the Industry
Division delivering profitable growth.
• Continued strong growth combined with a strong
margin performance within the Infrastructure
Division.
• Continued growth and significant profit improvements
within the Technology Division.
• The International Division reports a weak result
mainly due to the temporary suspension of the
nuclear project, Angra 3, in Brazil.
Growth
• Total growth 9.4 % whereof organic growth 2.1 %.
• Yearly Net sales of acquired companies is 900 MSEK.
Net sales MSEK
Operating profit MSEK
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• Cash Flow from operations generated MSEK 417 (253) YTD.
MSEK Comments
Net Debt as of Dec 31, 2015 1 486
Cash flow from operating activities - 417
Capex 69
Acquisitions and Earn Outs 636 Mainly Reinertsen
Dividend 292 SEK 3.75 (3.50) per share
Buyback of shares -
Other - 59
Net Debt as of Sept 30, 2016 2 006
Net Debt / EBITDA, as of Sept 30, 2016 1.9 Target 1.5 - 2.0
Strong Cash Flow and balance sheet
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Industry Division
The Industry Division is the Nordic region’s leading engineering consultant in product-, process- and production development.
A continued mixed market picture.
• Strong demand in the automotive-, pharma-, and pulp industries.
• Low but stabilized demand in the nuclear-, oil & gas, mining- and steel industry.
• A growing demand for assignments in which ÅF takes overall responsibility in production- and R&D projects. The fixed price portfolio now exceeds 1.6 BSEK.
Operating Profit increased to 72 MSEK
• Cost reduction programs and some redistribution of resources between sectors contributed.
Continued growth.
• Net sales increase particularly within the automotive industry with assignments from Swedish, British and Chinese clients.
• Total growth 3.6 % (organic growth 2.4 %).
• The Division was strengthened by acquisitions such as the company Ingenjörsprojekt Sverige.
Industries
• Automotive, Energy, Food, Pharma, Pulp &
Paper, Steel, Mining, Oil & Gas,
Engineering Manufacturing.
Markets
• Sweden, Norway and Denmark. Involved
in projects in more than 60 countries.
Jul-Sep2016
Jul-Sep2015
Full year2015
Net sales, MSEK 929.7 897.1 4 146.6
Operating profit, MSEK 72.0 65.7 371.0
Operating margin, % 7.7 7.3 8.9
Average number FTEs 3 085 3 216 3 204
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Infrastructure Division
The Infrastructure Division has
achieved a market-leading position in
Scandinavia during the last 5 years.
Continued strong demand especially in
Sweden and Norway.
• Public investment still on a high level for both
existing and new infrastructure projects as well as
sustainable solutions for real estate.
Operating Profit increased to 73.2 MSEK.
• Experience and competence in running large
complex projects one of the success factors.
Continued strong growth.
• Total growth 31.6 %. Organic growth 10.7 %.
Acquisition of companies with a total net
sales of more than 600 MSEK
• ÅF acquires the remaining 49% in ÅF Reinertsen.
Industries
• Rail & Roads and Real Estate.
Markets
• Sweden, Norway and Denmark.
Jul-Sep2016
Jul-Sep2015
Full year2015
Net sales, MSEK 870.0 661.2 3 146.8
Operating profit, MSEK 73.2 56.7 346.8
Operating margin, % 8.4 8.6 11.0
Average number FTEs 2 987 2 318 2 254
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International DivisionOne of the top 10 leading power
generation consultants in the world.
Weak Energy market
• The energy market in Europe, Latin America and
Middle East is weak. Stronger demand in South East
Asia and Africa.
• The politically unstable situation in Brazil is affecting
ÅF’s existing projects negatively.
Operating Profit declined to 0.3 MSEK
• Weak European market for energy projects.
• The state owned Brazilian Nuclear operator,
Electronuclear, has due to lack of financing and due
to investigations of the procurement process, made
a temporary suspension of the nuclear power station
project Angra 3, leading to loss of revenues and
restructuring costs for the local operations of the
division.
• Operating profit is also burdened by restructuring
costs, including change of management, in the
Czech infrastructure unit.
Total growth -11.3 % (organic).
• No FX impact.
Industries
Covers all industries, but mainly involved in
power generation and distribution &
transmission industries across all energy
sources.
Markets
• Responsible for ÅF’s operations outside
Scandinavia. Global responsibility for
Hydro Power.
• Home markets: Switzerland, Finland, and
the Czech Republic.
• Other markets: Involved in projects in
more than 80 countries
Jul - Sep2016
Jul- Sep2015
Full year2015
Net sales, MSEK 256.9 289.7 1 179.0
Operating profit, MSEK 0.3 18.5 82.0
Operating margin, % 0.1 6.4 7.0
Average number FTEs 826 891 893
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Technology Division
The Technology Division has a market
leading position in Sweden in
embedded technologies, systems
design and IT solutions.
The market for digital solutions remains
strong.
• Strong demand from the automotive and defence
industries.
Operating profit and operating margin
continue to increase
• Operating profit increased by 45% to 28.3 MSEK.
• Operating margin increased to 8.0 %.
• Improvements as a result of higher utilization rates
and improved prices.
Growth rates are increasing
• Total growth 6.1 %. Organic growth 4.2%.
• The division was strengthened by the acquisition of
the company Sjöland & Thyselius.
Industries/Services
• Digital solutions for all industries
Markets
• Sweden
Jul-Sep2016
Jul-Sep2015
Full year2015
Net sales, MSEK 354.4 334.0 1 600.6
Operating profit, MSEK 28.3 19.6 124.6
Operating margin, % 8.0 5.9 7.8
Average number FTEs 970 969 983
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ÅF – top Ideal Employer among young professionals*, M. Sc. Engineers
Source:The Universum Professional Survey 2016
* Professionals with an academic degree who are 40 years old or younger and have 1-8 years of working experience after completing their studies.
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THANK YOU
ÅF GROUP
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