Interim report Jan Dec 2017 JONAS GUSTAVSSON, CEO AND STEFAN JOHANSSON, CFO FEBRUARY 8, 2018

Transcription

1 Interim report Jan Dec 2017 JONAS GUSTAVSSON, CEO AND STEFAN JOHANSSON, CFO FEBRUARY 8, 2018

2 Strong result with continued good growth Q Net Sales: 3,500 SEK M +12% FULL YEAR, 2017 Net Sales: 12,658 SEK M +14% EBITA: 344 SEK M +13% EBITA: SEK M* +13% EBITA-margin: 9.8% EBITA-margin: 8.8%* *excluding items affecting comparability INTERIM REPORT JAN- DEC

3 BUSINESS OVERVIEW Engineering and design company The market s most comprehensive portfolio of service offer across industries Net sales: 12.7 BSEK (2017) 10,000 employees MARKET SEGMENTS Process Industry 6% Life Science, Food&Pharma 8% Manufacturing Industry 6% Telecom and ICT 5% Other 5% Energy and Power 14% Real Estate 17% Changed competition and market environment New strategy and direction to create higher value Infrastructure 19% Defence 4% Automotive and Vehicle 16% INTERIM REPORT JAN- DEC

4 BUSINESS OVERVIEW 10 largest clients (Volvo Cars and AB Volvo) PUBLIC/PRIVATE SECTOR Public 33% Private 67% INTERIM REPORT JAN- DEC

5 Strong growth drivers for our business SMART CITIES AND INFRASTRUCTURE FUTURE MOBILITY INDUSTRIAL DIGITALIZATION CHANGING ENERGY MARKETS INTERIM REPORT JAN- DEC

6 LARGELY UNCHANGED COMPARED WITH PREVIOUS QUARTER Market development Industrial market still strong in Sweden Key segments such as automotive, food & pharma, pulp & paper are growing Continued digitalization trend drives increasing demand for embedded systems and IT through all markets Continued high rate of investments in the infrastructure market, shifting to small and medium projects The energy market in Europe is changing due to conversion to fossil-free production and increased need for energy storage and smart grids INTERIM REPORT JAN- DEC

7 HIGHLIGHTS New projects New robot cell and streamline existing production at SKF s factory in Germany New railway, Follobanen, between Oslo and Ski in Norway Digital solutions for Telia, FMV and clients in the automotive industry Kiruna Cultural Centre and framework agreement with Kiruna Municipality Preparations of Swiss National Energy Strategy 2050 Planning of new road between Lugano and Mendrisio in Switzerland INTERIM REPORT JAN- DEC

8 HIGHLIGHTS Acquisitions October: inuse - a leading design and user experience agency. inuse has 100 employees based in Sweden. Sales ~SEK 90 million October: Light Bureau - London based lighting design studio. Reinforcement of lighting offering and improved platform for international projects. 10 employees and sales ~SEK 6 million January: Gottlieb Paludan Architects - Danish architect specialized in transport infrastructure, energy and industrial plants. 90 employees and sales ~SEK 140 million January: Arcad Architects based in Switzerland and specialized in industrial and commercial buildings. 8 employees and sales ~SEK 10 million INTERIM REPORT JAN- DEC

9 Continued growth +12% Q4, 2017 Net sales: SEK M (3 138) Total growth: 11.6% Organic growth: 2.8% FULL YEAR 2017 Net sales: SEK M (11 070) Total growth: 14.3% Organic growth:3.3% INTERIM REPORT JAN- DEC

10 Increased profitability +13% Q4, 2017 EBITA increased to 344 SEK M (306) EBITA margin 9.8% (9.7%) FULL YEAR, 2017 EBITA* increased to SEK M (996) EBITA margin* 8.8% (9.0%) *excl items affecting comparability INTERIM REPORT JAN- DEC

11 Industry Division INCREASED EBITA EBITA 133 SEK M +7.5% EBITA margin 10.0% New assignments from SKF, Oatly and the automotive industry in the US MARKET & HIGHLIGHTS Overall stabile demand from industrial sector CONTINUED GROWTH Net sales SEK M +6.1% Organic growth 4.3% Increasing demand for digitalization and automation Continued demand from food&pharma, forestry and pulp&paper Increasing demand for solutions in automotive sector Overall increasing international demand for ÅF industrial solutions Oct-Dec 2017 Oct-Dec 2016 Full year 2017 Full year 2016 Net sales, SEK million EBITA, SEK million EBITA margin, % Average number FTEs

12 Infrastructure Division INCREASED EBITA EBITA 147 SEK M +16.9% EBITA margin 11.1% New assignments from Follobanen in Norway, Stockholm Vatten and Kiruna Cultural Center MARKET & HIGHLIGHTS Still strong demand in the infrastructure market Focus on smart cities and infrastructure Still high demand in rail & road, many small and medium projects Demand in the architecture and design area where ÅF operates with strong brands throughout the Nordic region is also strong. CONTINUED GROWTH Net sales SEK M +13.5% Organic growth 3.9% The division was strengthened by the acquisition of Light Bureau, Gottlieb Paludan Architects and Arcad Architects Oct-Dec 2017 Oct-Dec 2016 Full year 2017 Full year 2016 Net sales, SEK million EBITA, SEK million EBITA margin, % Average number FTEs

13 International Division MARKETS & HIGHLIGTHS The energy market in Europe is still weak due to low investments in conventional electricity production Continued investments in national transmission Increasing demand for biofueled power plants The infrastructure market in Switzerland and the Czech Republic remains stable INCREASED EBITA EBITA 41 SEK M +48.6% EBITA margin 10.4% New assignments include transmission in Pakistan, developing regional energy markets in Asia, Swiss National Energy Strategy 2050 and planning of new road between Lugano and Mendrisio in Switzerland INCREASED GROWTH Net sales 399 SEK M +32,8% Organic growth -8,2% The growth is entirely related to infrastructure operations through the acquisition of AF-Toscano Oct-Dec 2017 Oct-Dec 2016 Full year 2017 Full year 2016 Net sales, SEK million EBITA, SEK million EBITA margin, % Average number FTEs

14 Technology Division INCREASED EBITA EBITA 55 SEK M +17.2% EBITA margin 10.2% New assignment from Telia, FMV and clients within automotive and telecom MARKET & HIGHLIGHTS Strong demand for digital solutions including embedded systems, system development, user experience and service design Strong demand in defense sector Shifting business models and partnerships Increasing demand for solutions and long-term relationships. CONTINUED GROWTH Net sales 541 SEK M +5,4% Organic growth 1.9% Oct-Dec 2017 Oct-Dec 2016 Full year 2017 Full year 2016 Net sales, SEK million EBITA, SEK million EBITA margin, % Average number FTEs

15 Development divisions Q4 Division Industry Infrastructure International Technology Share of net sales 37% 37% 11% 15% Growth 6.1% 13.5% 32.8% 5.4% Whereof organic growth 4.3% 3.9% -8.2% 1.9% EBITA margin 10.0% 11.1% 10.4% 10.2% INTERIM REPORT JAN- DEC

16 Development divisions proforma Q4 Division Industry Infrastructure Energy Digital Solutions Net sales Share of net sales 33% 40% 11% 16% EBITA margin 10.1% 11.6% 7.7% 10.2% INTERIM REPORT JAN- DEC

17 Cash flow and Net debt CASH FLOW FROM OPERATIONS GENERATED SEK M 624 (622) 2017 SEK M Net Debt as of Dec 31, Comments Cash flow from operating activities -624 Capex 92 Acquisitions and Earn Outs acquisitions Dividend 350 Board of Directors proposes a dividend for 2017 of SEK 5.00 Buyback of shares 114 Other -32 Net Debt as of Dec 31, Net Debt/EBITDA 2.3 INTERIM REPORT JAN- DEC

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19 Our new direction WHO WE ARE HOW WE WIN OUR VISION Providing leading solutions for generations to come OUR VALUES WE ARE: Brave Devoted Team players ÅF - Making Future OUR MISSION We create sustainable engineering and design solutions GROWTH DRIVERS Smart infrastructure and cities Future mobility Industrial digitalization Changing energy markets OUR STRATEGY GROWTH International expansion into leading positions VALUE CREATION Business model shift to deliver higher value OPERATIONS Operational excellence PEOPLE Best in class people practices INTERIM REPORT JAN- DEC

20 The strategy INTERIM REPORT JAN- DEC

21 Four international divisions INFRASTRUCTURE INDUSTRY ENERGY DIGITAL SOLUTIONS Buildings Advanced Manufacturing Energy Scandinavia Experience Design Rail&Road Automotive R&D Energy Switzerland IT Solutions Project Management Food & Pharma Energy Czech Republic Embedded Systems Water and Environment Process Industry Energy Finland Systems Management Architecture & Design Product Development International Operations Plant Engineering Advanced Technical Service INTERIM REPORT JAN- DEC

22 REVISED Financial targets GROWTH 10 % organic growth and add on acquisitions Platform acquisitions on top EBITA MARGIN 10 % over a business cycle NET DEBT Net debt/ebitda 2.5 INTERIM REPORT JAN- DEC

23 STRONG RESULT AND CONTINUED GOOD GROWTH Q4 summary NET SALES SEK M (3 138) +12% EBITA 344 SEK M (306) +13% Continued growth and strong result, although we see potential to increase long term profitability Several key assignments within all divisions and acquisition of inuse, Light Bureau, Gottlieb Paludan Architects and Arcad Architects New strategy, revised financial targets and adapted organisation INTERIM REPORT JAN- DEC

24 Questions?

25 Thank you!

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