AF Gruppen ASA

Hello, and a warm welcome to the presentation for the third quarter of AF Group 2023. Today's theme is safety, and will be presented by Tomé. After the presentation, we will have questions and answers for those who have met physically. The main points in this quarter were that the revenue was at 6.9 billion. The result before the tax ended at 103 million, which gives a result margin of 1.5%. The amount of electricity for operations was at just under 500 million, and we had an order entry in the third quarter at just over 4 billion. The annual reserve per 39 is on the right bottom line at 42 billion, and the net interest rate is on the right bottom line at 1.4 billion. We start with safety first in AF, and our most important KPI in safety work is the H1 value. It says something about the number of incidents that lead to injury and serious personal injuries without injury. We also include sub-entrepreneurs and suppliers, and share that for millions of hours. In this quarter, we had no events, that is to say that the H1 value was zero. And that is our goal in AF. And we can, if we consider the size, say that it is probably one of the best quarters in terms of safety in AF over time. Now this will be the theme of the presentation, so we will come back to That is independent of the results in this quarter. But further, we can see that the sick leave is happy below 4% in this quarter, and has a direction down towards the target of about 3%. Going back to the numbers, we have had a decline in revenue to 6.9 billion, and we have a result before the tax, which is down from 263 to 103 million. The main drivers behind this are still challenges in the Swedish business, and a decline in project estimates in one offshore project. This gives a result margin down from 3.5 to 1.5 percent. Now the demand in the AF group for profitability is 5 percent every quarter, so we are not satisfied with this performance. If we continue to look at the return on invested capital, which is another important KPI for us, we have a result before tax, 12 months rolling. If we put back interest rates, it is exactly the billion, while the average invested capital increases from 4.5 to 5.1 billion, and that gives a return on invested capital of 19.6%. The target in the AF Group is 20% of the investment capital. In terms of the cash flow, the cash flow for this quarter was 494 million, and the hit for this year was 697 million. The liquid funds we are talking about are 526 million kroner, and that figure is found to be higher in this picture. In addition, the interest rate applies to rental obligations on machines and house rental obligations, and the sum gives a net interest rate of 1.4 billion kroner. We have increased the withdrawal facilities by 500 million in this quarter, and the available liquidity is on the right edge at 2.8 billion, and we mean that we are in a solid financial position. The total balance is at about 15 billion, and the equity is on the right edge at 3 billion, which gives an equity share of 19.8%. Vi har ansvaret for det påvirkningen som vår virksomhet har på klima og miljø. Vi måler her på 3 KPI'er, og det er kildesorteringsgraden først, som fortsett i samme trend som i tidligere kvartal. Ripped and sorted metal for recycling over 32,000 tons this year and recycling over 186,000 tons of mass in our environmental parks. Collected, the last two give a savings of about 48,000 CO2 equivalents this year. Let's move on and look at the status of our business. There have been major variations in this quarter, but we start the tradition, I believe, with facilities, and we can start by showing this beautiful picture from a large project in facilities that you can see has started well, and that is the construction of a new airport in Mo-Irana. The plant has high activity, with a turnover of 1.7 billion kroner. It has a turnover of 129 million kroner, which gives a turnover margin of 7.7%. The AF plant is a great source of volume, with a strong turnover growth and very good results in the third quarter. There are good contributions from several projects, and we have several large projects in production, and generally high activity and good operation. We have often talked about Målsværmaskinen in these presentations, with very good results. It is happy that it continues, and it is also very happy that Stenset and RS deliver very good results in this quarter. Consolvo delivers some under-expectations, and Eikon has low activity and weak results in the third quarter. The order entry was at the right bottom of 1.1 billion, and the order reserve is up from the bottom of 12 to the top of 19 billion. If we look at construction, the revenue is right below 2.3 billion. We have a operating profit of 93 million, which gives a operating margin of 4.1%, which is up 0.3% from last year. It is Strøm Gunnarsen, Vestfold and Åsane Byggmesterforetning that deliver very good results this quarter, and Bygg Fornyelse, Bygg Østfold and Haga Berg deliver good results. Our foundation business, Fas, has a weak result this quarter, while the other units in the business area deliver now below expectations. I am happy that Lab Entrepeneur in Bergen has been able to expand Lagunens Storsenter with a contract value of about 365 million. The order time for construction was on the edge of 1.1 billion, and the order reserves are now down to 9.3 billion. Let's move on and look at the concrete mast. We can start with the project you see in the picture, where we have built a pool and facilities for the rescue team at Noatun. It was a nice project with good operation. Now the total is about 1 billion, but the operating profit is 19 million, which gives a weak margin of 1.8%, down from 3% last year. It is Røsand, Askerå, Bærum and Østfold that deliver good results in this quarter, and Trøndelag and Buskerud-Vestfold that deliver below expectations, while Betongmast, Oslo, Romerike, Boligbygg and Inlandet have weak results in this quarter. And Røsand has also got an agreement to build a new kindergarten in Kristiansund for about 200 million. The order on the concrete mast was about 1 billion, and the order reserve is just below 4.9 billion. If we go to property, the property market is well-known in various media, and sales are responsible for us. We have had sales contracts for a total of five homes in this quarter, where our share is two. In addition, we have six housing projects with 920 units under production, and the sales rate in these projects is 77%. If we go over to Sweden, the trend continues from the previous quarters. We have 1.5 billion in turnover, but practically no results. The situation here is divided. AF Prefab and AF Ørnesand Byggreturer deliver very good results, while Kanonaden OMB deliver good results, and AF Bygg Syd also deliver something under expectation in this quarter. But in the rest of the entrepreneurial business, and we are talking about the companies that have been transferred from concrete mast, we still have challenges, and they have weak results in this quarter. Several approaches have been carried out, both organisational and structural, in several of these companies. The order volume for Sweden is 500 million, and the order reserve is 5.1 billion, down from 8 billion. When we continue to look at the business area of energy and the environment, the growth continues. The turnover increased from 260 to 380 million in this quarter, with a turnover of about 20 million, which gives a turnover margin of 5.6%. It is AF Energy that both delivers turnover growth and manages to get the results, and has good turnover in its projects. AFD.com manages to increase the activity level and deliver a good result in this quarter. The order volume is at 300 million, and the order reserve is up from under 700 to 1.4 billion. If we look at offshore, it has been a demanding quarter with a negative result. Income was in the upper half at 200 million, but the operating result ended at almost minus 120 million. The main reason behind this is the downgrading in one project in Offshore Dekom, where we in the offshore campaign have not performed, neither in terms of performance, nor have we had the weather with us, which has meant that we have to go out and buy more vehicles and subsystems in a market that has had a price development that is not profitable. The rest of the projects in offshore RECOM will proceed as before. When we have the last unit in this business area, Aeron, the activity level will increase and the profitability will be more than expected. The annual income is 125 million, and the annual reserve is 1.4 billion. If we look at the total order reserve, it is at the right bottom at 42 billion. Instructions with a little over 19 billion. We have buildings at a little over 9 billion. And then we have Sweden at the top at 5 billion. And the right bottom at 5 billion, which are the largest business areas when it comes to the order reserve. In summary, we have a stable and good order reserve, given the times we are in. Today's theme is security, as mentioned earlier. Safety as a priority has always been with us at AF, and AF's business idea is clear. We are going to create values and opportunities through project operations, but with a compromise-based approach to safety and ethics. This shows a clear direction and the commitment of all companies and all employees at AF. At us, we say that we take safety first, No one will be harmed by working in the AF, and those who work for us, whether they are employees, sub-entrepreneurs or suppliers, will have the same wonderful and fresh home every day. And that is why we have a goal of zero serious personal injuries and zero work-related damage. And the drivers behind our security work are several. From the obvious requirements from authorities and builders, to social responsibility, it is to run a valuable business where people will come home with good health. At the same time, it is for us a cultural driver. A good security work is to give us competitiveness and attractiveness, and at the very least, it is a choice of values, which for both leaders and employees at AF is to mark our identity. With a clear idea and strong driving forces, the development in security performance has shown itself over 10 times positive. Here on this slide, it is visualized with HN values in yellow, which are defined earlier today, and we have put it up against the development in the RUH report, and some selected examples of the development work that has been done. We believe that our business model is the foundation in our security work, with responsible lines, Belief in central tools, which I will get to in the next slide, and competence building, and at least the survival of our systems, give good results over time. In our systematic HMS work, there are especially three tools that mean a lot to us. There is learning by systematically examining and integrating competence from our own events. All events have a cause, and therefore can be avoided. Then there is preparedness, which means that we have an organization and a capacity to handle unexpected situations. And then we have risk management, which is an important source of good performance, and which, with the focus of the last year, I would say has been an important contribution to zero in this quarter. We have long traditions with risk management in AF, both in terms of business, but also in security work. I have, in an earlier quarter, gone through the administrative approach, but now it is time to take a helicopter look at the safety part. We wish to have control over all risks that can result in accidents or health problems. This is divided into four overarching levels, and this work starts before the projects are physically started. and continue continuously until the work is completed and the project is completed. The analysts will identify events or activities with high risk. Then we will control the risk by introducing measures and barriers. To put it simply, the core of our risk management is that we early identify conditions with high risk, and that we introduce at least two independent barriers, including both organizational and physical barriers, which makes the risk manageable. The basic philosophy of risk management has been followed for a long time. But we are constantly taking new steps, both in survival and in developing and using new tools. Our self-developed software Klara is a good example of this. The solution is based on our well-known methodology within risk analysis, but we have also, through digitization and data power, made it possible to use our learning. from previous events, at the same time as we link it up to the future plan. This means that our line and those in operation can still follow up, together with both sub-entrepreneurs and partners, they can still follow up that barriers are being established in time. And we are real optimists for the future when it comes to what new skills and new technology can bring us even further into the future. Zero is our most important goal, and everyone should come home safe and sound on the first day. And security work means a lot to us, and it is always set high, and it is therefore incredibly happy that we have zero in this quarter. And it shows that it is possible, and it is also inspired to further develop, so that this level of security is normal, and serious events are considered abnormal. But on the way, we must be really humble, And remember that safety work is fresh goods. We must perform for one day. I have pointed out many factors here, but I will end with the most important one. Good systems, good structure, good tools. It becomes quite worthless if we do not have safety management, leaders with accountability, thoroughness and perseverance that makes the most of one day for everyone to come home safe and sound. And now I would like to move on to the summary. As I said, we have a quarter with a revenue of 6.9 billion, and with a result before tax of 103 million, which gives a result margin of 1.5%. This is a weak result, which we are not satisfied with. We have had an order entry of 4 billion, and a stable order reserve at the bottom at 42 billion, and we agree that we have a strong financial position. Finally, I am happy that we had a quarter without incidents. Finally, I would like to say that where we succeed, and what is important, is still We are going to choose the right projects. We are going to be organized robustly. We are going to run good risk management. We are going to be good at operations. We are going to be careful about the money. We are going to be careful about our people. And with that, I thank you for those of you who have followed us digitally. And then we will move on to questions and answers here. Thank you for being here.