AF Gruppen ASA

Hello, and a warm welcome to the presentation of the third quarter in the AF Group. It's nice that so many choose to follow us digitally, and it's also nice that so many have met here today. We appreciate that. The theme today is Sweden and our Swedish business, which will be presented to Bård Fryndlund. After the presentation, both Bård, Sverre and I will be available for questions. In this quarter, the turnover has been 6 billion 358 million. We had a result before the tax on 344 million, and that gave a result margin of 5.4 percent in the third quarter. The cash flow from the drives was 380 million in this quarter and over 1.1 billion so far this year. We have a record high order reserve of over 40 billion kroner per third quarter. And we have net revenue of 26 million kroner. We have a solid financial position. Styret has an exchange rate for the second half of the year of 4 kroner, which is up 50 euros per share from last year. And together with the first half of the year we had 6.5 kroner, so we are at 10.5 kroner this year. It is the safety and health of those who work for us that is most important in the AF group. Our top three target parameters are the three you see here. The H1 value is the number of accidents and serious personal injuries without accidents per million worked hours. And for the H2 value, we add the number of injuries with medical treatment and the number of injuries that have led to alternative work. And for these parameters, we include our sub-entrepreneurs because everyone in AF is worth as much and everyone should come home safe and sound. If we look at the value of H1 this quarter, we have had four events that have given us a H1 value of 0.8, which means that we have had a H1 value of 1.1 this year. Our goal is 0, so we are not satisfied, but we register the positive trend from earlier. The H2 value is at 8.7 in this quarter, and the hit to 8 so far this year. The disease rate in this quarter was at 4.2 percent, where COVID accounts for about 4 percent, and the hit to this year at 4.6 percent, where COVID accounts for about 8 percent. We are still satisfied with a 4.2% sick leave rate. We expect a sick leave rate of about 3%, and we think that a low sick leave rate indicates good management, a good working environment, and satisfaction, which again gives productivity and efficiency. If we go back to the turnover and the results in this quarter, the turnover is almost the same. The results before the tax were 368 million last year, while this year it is 344 million, which gives a turnover margin of 5.4%, which is down 0.4% from last year. The average invested capital was 4.5 billion per third quarter, and we had a result before the tax. We put back the interest rates, four quarters rolling at 1.6 billion, and that gives a tax on invested capital of 36%, which is well over our target of 20%. The cash flow in this quarter was at 380 million and so far over 1.1 billion. We have an outstanding balance on liquid funds at 593 million. The 593 can be found to the right in this figure, and if we subtract from net orders and IFRS-elements such as rental obligations on machines and house rental obligations, we have net interest rates of 26 million, against 341 million in orders in response to last year. We have a draw facility of 3 billion, and the available liquidity in the AF is about 3.5 billion, and we mean that we have a solid financial position. The balance is not very significant. About 1.5 billion in equity at the beginning of the year. It is now at 3.378 billion, even with the investments we have paid for. Sum and equity is at just over 13 billion. There is an equity share of 25.7%, and XIFS is at over 27%. Klima- og miljøutfordringene som omgjøres, er AF-gruppen en del av, og har et ansvar for vår del. We measure, among other things, the parameters that are here, and by the end of the year, the AF Group has source sorted over 240,000 tonnes, with a source sorting rate on our construction and rehabilitation business at 90 and 91 per cent. And for our waste management business, we have had a sorting rate of over 97 per cent. For a hard ton of metal that we rip and sort for recycling, we track the environment for about 1 ton of CO2. This year, we have ripped and sorted for recycling right to the bottom of 40,000 tons. Our environmental parks have a yield of over 264,000 tonnes, and that part has saved the environment with a little over 20,000 tonnes of CO2. Let's move on and take a look at how things are going in our different business areas. We start with facilities that have had turnover growth and a solid improvement in results this quarter. The turnover ended at 1.4 billion, with a operating profit of 98 million, which gives us a operating margin of 7%, which is our goal for AF as a whole. We can mention especially Målsær Maskin & Transport, which has delivered very good results. We have a picture from our project in Stockholm, Lovø, where we are involved in developing new infrastructure and access to Stockholm, which is one of our largest projects in AFC. And among other things, AF Anlegg and Consolvo have delivered revenue growth and a stable profitability in this quarter. We also see that the profitability in Eikon is strengthened in this quarter. And the order reserve is at 7.6 billion. Our construction business has delivered weaker profitability than we are used to in this quarter. The turnover was just over 2 billion, with a operating profit of 80 million, which gives a operating margin of 4%, down from 115 million and 5.8% last year. There are big variations in this part of the sequence, and to highlight units that have done well in this quarter, Haga Berg, Strøm Gunnarsen, Bygg Oslo, and the ones we have in Østfold, have delivered stable and well. On the other hand, we have deductions in the project portfolio for Nybygg, which drags down the profitability. In the future, the projects in Nybygg's portfolio will be transferred to Bygg Oslo. Other units that have delivered poor results this quarter are Lab, HTB and AF Handverk. We can now add that everyone in this room is probably familiar with the price development of raw materials around us, but it has affected AF, perhaps especially Bygg, Betongmast and our Swedish business in this quarter. The oil reserves in Bygg are now at 14.5 billion. Betongmast continues to deliver weak profitability. We had a turnover in this quarter of 1.6 billion, and with a operating result of 44 million, it gives a operating margin of 2.7%, which is down from 3.5% last year. There is variation here, and Betongmast Romerike, Oslo and Østfold deliver good results, while Betongmast Boligbygd and Telemark have low project contributions and continue to deliver weak results. Betongmast's business in Sweden also delivers profitability below what we expected in this quarter. The order reserve for Betongmast is 11.2 billion. Our property business has had good sales in the new projects in the quarter and has had a result before tax of 27 million, and we have invested 836 million in this business in the third quarter. Bekkestuget Hage, which you see a picture of here, is an example of the good sales that have been. And in total, we have sold 158 homes in this quarter, where our share is 77. We have also sold and carried out sales to Construction City in this quarter. We have six housing projects with 636 units in production, and the sales rate in our projects is 80%. Our development portfolio at Boli is over 1900 units, and the development portfolio at Næring is over 42,000 BTA. The decline is largely due to Construction City. Moving on to business areas, energy and environment, we have had high activity and significant improvement in this quarter. Income was 266 million, and with a operating profit of 24, the operating margin ended at 8.9% in the quarter. AF Dekom has had increased accuracy and continues to deliver very good results, both within its drilling business, as you can see an example here from Høgegavern Windpark, which we are involved in drilling, and through recycling at our environmental parks. And this company, AF Dekom, has, through the tons they have sorted and recycled, both in metal and mass, so far this year, saved over 28,000 tons of CO2. AF Energi, which is another business in this business area, had reduced activity in the quarter and a profitability below expectations. It is also exciting to see that the order reserve in this area continues to grow. Our Swedish business has had good growth and continues to deliver stable results. Income was 958 million, with a operating profit of 51 million, which gives a operating margin of 5.3%. Here is the cannonade and AF Førnestand building retours, which continue to deliver extremely good results in this quarter. We have HMB and AF Bygg Syd, which have a profitability that is below what we expected. And then we have AF Prefab Mælardalen, which pulled down the results as a result of the fact that we have low production at our factory. More on Sweden, Bård will come back to, so we move on and look at our offshore business. In the picture you can see that there is high activity on our reception plant in VATS, where we receive and recover oil installations. There we have had increased activity, and this can be seen in the revenues, where we are at 207 million. We have had a operating result of 18 million, and this gives a operating margin of 8.9%. Even though we have devalued Fairfield Dicom in this quarter, and we have had declines linked to this, which has been negatively affected in this quarter. This mining business has been able to track the environment for more than 32,000 tons of CO2 this year. Aeron Molière has managed to maintain the results in this quarter, and we can see that the order reserve is rising at 1.6 billion. If we look at our annual reserve, we see that it is historically high at over 40 billion. It is divided into buildings at over 14.5 billion, concrete mass at 11.2 billion and facilities at 7.6 billion, which are the three largest. We think that the order reserve is solid and good, and we also note that there are now many large projects in both our facilities and construction business, which means that this order reserve stretches for several years than we may have historically seen in Aarhus. And we are very pleased with that. Now we have come over to the theme part of today, which is Sweden and our Swedish business. You will meet Bård Fryndlund, who is the CEO for both Sweden and Betongmast in AF. Bård, please.

Thank you for that, Amund. Now I will take you across the border to Sweden. First, I'd like to give you a picture of our total business in Sweden. On the map, you can see the lines in yellow. These are the lines that we have in place with one or more of our businesses. In the white box at the top, you can see HMB, Kanaden, Byggreture, Bygg Syd, Prosjektutvikling and Prefab Meledalen. These are the six companies that we report under the business area Sverige. In addition, Betongmast has five companies in Sweden. This is reported under the business area Betongmast. AF Anlegg has the Lovø project in connection with Forbifarten, which is reported under the business area Anlegg. This curve shows our growth from 2016 to 2021, which shows a growth of about 800 million to the expected plus or minus 7 billion in 2021. This growth is well driven by the purchase of Canada, then HMB and Betongmast, and then the construction of the Lowe project. 60% of the growth is structural, and 40% of this growth is organic. Then I will dive into what we call the business area of Sweden. I would like to start with the graph that shows our H1 value. It is a mirror image of the security work that is done in the business area of Sweden. As you can see, after having had Bad numbers in 2019, so it is especially pleasant to see that we have a very positive development there, and are working very hard to reach the goal of zero adverse events and zero serious incidents. The company consists of 841 employees. Per 39, we reported 3 billion in turnover, with a operating margin of 4.6%. I can also highlight, as stated in the report, and as we noted in the report in March, that we have sold parts of the sales tax. The property will be demolished in the fourth quarter, with a value of over 50 million kroner. I will show you some of the projects that are being carried out. The top two are from Kanonaden. The first project is a wind power project, Kars Kruv Wind Power Park. Konaden has several projects of this type, typically because they make both entrance paths, paths internally inside the wind power park, and also the foundation that these windmills will stand on, and also the concrete constructions that they are anchored in. On the right, you can see a larger logistics project in Eskilstuna for KUP, which has also been a very important cement for the conglomerate. To the left is a water and sewage project in Sjølunda, which is carried out from Bygd Syd. And then we have building tours, here with an example from a demolition project. They do many parts of the demolition projects here at the Beskov schools up in Umeå. In the next year, HNB will do both a food and business project as a total entrepreneur. Here you can see the school in Vesterås, and down to the left, Åsikten Sødra in Uppsala. I mentioned that we have sold parts of the Selshusgatan to Skandia Fastigheter. This is a project that AF Project Utvikling is doing together with Asbjørn Ram Fastigheter. We also have AF Prefa Melerdalen, which produces Prefa products in concrete. I have shown them a wall element. This business is run on the same framework conditions as our Norwegian business. This means that it is the same value base that is at the bottom. It is a decentralized decision-making authority. There is a large degree of membership. And it is an active use of our risk control tools. And then with the assumption that it is a compromise-free attitude to security and ethics. If you look at the market, this is a picture of the history. If you look at the graph, the market has been quite flat in Sweden in the last five years, with an annual growth of 1%. We have still managed to achieve a good growth by focusing on multiple customers and going into the segments we were talking about, such as the construction of logistics centers and wind farms. In total, we have experienced A large market in Sweden in 2021 at 563 billion. If we look at the different regions we are present in, we also experience good demand for our services, especially within the housing sector. The industry is a little more variable, but there is also very good demand for facilities. In total, we experience the market as very good and is positive in relation to the future of the market. In the short picture, we see that the swings that have been on raw material prices have meant that there are some initiatives that can be slightly reduced, but we expect that to stabilize. We have another insecurity moment in Sweden, and that is the situation around cement. Cement is the largest producer of cement in Sweden, providing 75 percent. The permission they had to work on Gotland has expired, and they are now working to ask the authorities to extend it. The parliament has made a resolution, so that the government has been given a mandate to give it to the government. That has not happened. The consequences, if it does not happen, are very big. Just to build the investment sector, it concerns 280,000 jobs and an investment deficit of 20 billion per month. We also know that They also deliver a lot of cement to the mines in the north of Sweden to extract iron ore. The consequence for Sweden will be several tens of billions per month. So it's a bit difficult to imagine that this rice field is going to burst into full bloom, but PTS is still there. We do what we can to minimize our risk, both in relation to prefab solutions and how we get alternative concrete supplies. But of course, if it were to go too far, it would be impossible to eliminate the risk. It is a solid oil reserve per 39, and it is one billion higher than it was at the time of supply last year. First and foremost, it is the cannonade that has increased its oil reserve, in addition to HMB. In the future, we will focus on managing the annual reserve that we have, which we experience as both good and well-divided in different segments. We will be strategic and selective in terms of choosing new projects within the annual reserve, and then have a great focus on risk management, both in relation to safety work and creating profitability and good economy in the projects. After a while, we have had many talented employees in the Swedish market, together with the fact that it is a large market, so we feel well-arranged in terms of strengthening the positions we already have, while at the same time we are quite curious about identifying both new market and business opportunities. That's what I was going to say about Sweden, so I'll put the word back to Deamund.

Thank you, Bård. If we sum up the third quarter, we have had a stable turnover and a profitability of over 5%, but well below our goal. We have a strong financial position and a good cash flow from DRIFTA, and we have a record high order reserve of over 40 billion. We also remember that we have VT in an exchange rate for the second half of the year, at 4 kroner per share. That was what we were going to say in this round. If Sverre and Bård come up,