SEB NORDIC SEMINAR. CFO Terje Larsen, Veidekke ASA Copenhagen, 10 January 2017

Size: px

Start display at page:

Download "SEB NORDIC SEMINAR. CFO Terje Larsen, Veidekke ASA Copenhagen, 10 January 2017"

Caitlin Willis
5 years ago
Views:

1 SEB NORDIC SEMINAR CFO Terje Larsen, Veidekke ASA Copenhagen, 10 January

2 VEIDEKKE IN BRIEF A leading Scandinavian construction and property development company Largest player in Norway with strong positions in Sweden and Denmark Norway 63% of turnover Strong revenue and earnings growth Construction order book up by more than 50 % over last 24 months Sweden 32% of turnover Attractive property development portfolio Solid financial position 15 % of the shares owned by employees/ management Denmark 5% of turnover 2

3 VEIDEKKE A GROWTH STORY Annual return to investors last 30 years: + 18% 29 Annual revenue growth last 30 years: + 10% D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D m 3 Revenue NOK bill. Share price D Dividends

4 REVENUE AND EARNINGS GROWTH REVENUE PROFIT BEFORE TAX NOK billion ,5 21,2 23,9 24,5 28,7 NOK million m per 3Q * m per 3Q16* * Excl. changes in the pension scheme in Norway in 2012 and

OUR BUSINESS SEGMENTS CONSTRUCTION PROPERTY DEVELOPMENT INDUSTRIAL Building Construction Civil Engineering Residential development Asphalt Aggregates

2 57% Asphalt Result/ margin/ return EBT NOK 770 mill. EBT NOK 455 mill. EBT NOK 152 mill. 3.2% 18.3**% 3.

5 OUR BUSINESS SEGMENTS CONSTRUCTION PROPERTY DEVELOPMENT INDUSTRIAL Building Construction Civil Engineering Residential development Asphalt Aggregates Maintenance Norway Sweden Denmark 32 % 7% Revenue* % 70 % Units under construction % Aggregates 29 % Road Maintenance 14% Revenue* % Asphalt Result/ margin/ return EBT NOK 770 mill. EBT NOK 455 mill. EBT NOK 152 mill. 3.2% 18.3**% 3.6% 5 * Revenue in NOK billion last 12m, Earnings before tax (EBT) in NOK million last 12m, excl. pension changes. Units under construction is Veidekke s share ** Return on invested capital last 12m. Last 12m is per end Sept

6 STRONG STRATEGIC LINKAGES AND MULTI-LOCAL LEVERAGE 6

7 ATTRACTIVE SCANDINAVIAN CONSTRUCTION MARKET Norway Estimated annual market growth 2016 and 2017 Residential Denmark NOK 900 mrd. Sweden +4% +6% Civil Engineering NOK 900 mrd. Public buildings Commercial buildings +4% 7

8 CONSTRUCTION REVENUE AND MARGIN* ORDER BACKLOG (NOK BILL.) 25 Revenue (NOK bill.) Margin % 5% 30 Civil Engineering Building Construction 20 4% % % 2% NOK bill % 5 1% m per 3Q16 0% 0 Q1 13 Q1 14 Q1 15 Q *Margin for 2012 and 2016 is adjusted for changes in the pension scheme

9 HIGH LEVEL OF ACTIVITY IN BUILDING CONSTRUCTION Hotel, commercial buildings and residential, Vitaminveien, Oslo Diagonale by the Oslo Opera House Bragenes Torg, Drammen Research facilities at Karolinska Institutet, Huddinge Danish Centre for Particle Therapy, Aarhus Svea Symfoni, Stockholm Pyramiden, Stockholm Horten upper secondary school Revetal lower secondary school, Vestfold Vrå school, Knivsta at Uppsala 9

10 AND IN CIVIL ENGINEERING Avalanche protection Water and sewerage installations Groundwork Tunnel Car parking in mountains Power- and industrial plants Environmental clean-up Railway Road construction 10

PROPERTY DEVELOPMENT PROFIT AND RETURN STRONG RESIDENTIAL SALES IN 2015 (NUMBER OF UNITS) 500 400 300 200 100 0 2012 2013 2014 2015 12m per 3Q16 Profit (NOK mill.

11 PROPERTY DEVELOPMENT PROFIT AND RETURN STRONG RESIDENTIAL SALES IN 2015 (NUMBER OF UNITS) m per 3Q16 Profit (NOK mill.) Return (%) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% % m Veidekke's share Joint venture *2012 and 2016 is adjusted for changes in the pension scheme 11

12 1 800 RESIDENTIAL UNITS SOLD LAST YEAR Brf Greenroof, Gothenburg Gartnerløkka, Oslo Branddörren, Högdalen Kvartal 33, Lillestrøm Sørengstranda, Oslo Lomma Läge, Skåne Brf Äppelblom, Gothenburg Landskrona Strandbyn Konsul Lorcks Hage, Trondheim Östra Sala Backe, Uppsala Kjøita Secret Garden, Kristiansand 12

13 200 INCREASED RESIDENTIAL PRODUCTION AND A SOLID LAND BANK NO. OF UNITS UNDER CONSTRUCTION Veidekke s share Joint venture

14 INDUSTRIAL REVENUE AND MARGIN* REVENUE DISTRIBUTION LAST 12M % 6% 4% 2% Road Maintenance 29% 13% NOK 4.2 billion 58% Asphalt m per 3Q16 Revenue (NOK bill.) Margin % 0% Aggregates *Adjusted for changes in the pension scheme in 2012 and

15 STRONG POSITIONS IN INDUSTRIAL Tromsø AL TA Ålesund Trondheim 30 asphalt plants 28 quarries and plants are covering the most important markets 24 road maintenance contracts Veidekke is well positioned for the many planned road projects Bodø Bergen Oslo Stavanger Large projects 1 Smaller projects Asphalt plants Quarries and plants Kristiansand Road maintenance contracts 1) Projects with expected volume of > tonnes asphalt (Sources: Veidekke, The Norwegian Public Roads Administration (SVV)) 15

16 OUR LEGACY Veidekke's roots go back to 1863 in Denmark (H. Hoffmann & Sønner) Veidekke A/S was founded in Here: Asphalting in the 1930 s 16

17 TECHNOLOGY DEVELOPMENT Asphalting at Oslo Fornebu airport, 1973 Asphalting at Oslo Gardermoen airport,

18 DIGITALISATION IS CHANGING THE CONSTRUCTION INDUSTRY 18

DIGITALISATION IN VEIDEKKE VDC VIRTUAL DESIGN & CONSTRUCTION PROJECT EXECUTION Customer needs Design and planning Construction BIM is used in all project phases We approach BIM through collaborative

19 DIGITALISATION IN VEIDEKKE VDC VIRTUAL DESIGN & CONSTRUCTION PROJECT EXECUTION Customer needs Design and planning Construction BIM is used in all project phases We approach BIM through collaborative planning Lean construction based methodology Building twice virtual and physical, offer large process and product improvements Cooperation with both Stanford University and Berkeley and we have probably just started 19

20 DIGITALISATION - A PROJECT EXAMPLE Operations and maintenance Early phase PORTALEN Conceptual design Production Project offering Logistics Analysis and calculation Prefabrication Detailed projecting 20

21 SOLID RETURN TO SHAREHOLDERS AND AMBITIOUS GOALS DIVIDEND AND SHARE REPURCHASE FINANCIAL GOALS NOK per share 2,6 4,0 2,5 2,5 2,5 2,8 2,5 3,0 3,5 4,0 BUSINESS AREA LONG TERM GOAL AVG Last 12m* Construction Margin (EBT) 5.0 % 2.9 % 3.3 % 3.2 % Industrial Margin (EBT) 6.5 % 3.8 % 4.7 % 3.6 % Property Development Return on invested capital 15.0 % 9.5 % 13.1 % 18.3 % Ordinary dividend Share repurchase 21 * Margins on earnings before tax (EBT) lion last 12m is excl. effects from pension changes

22 SUMMING UP Strong positions in the growing Scandinavian construction markets Growth in revenue and earnings Strong construction order backlog and attractive property development portfolio Attractive dividend policy and ambitious goals 22

DNB Markets SME Conference Baard Schumann, CEO Haavard Rønning, CFO March 19, 2013

DNB Markets SME Conference Baard Schumann, CEO Haavard Rønning, CFO March 19, 2013 DNB Markets SME Conference 2013 Baard Schumann, CEO Haavard Rønning, CFO March 19, 2013 Selvaag Bolig is a residential developer that provides targeted housing concepts to suit aspirations of different