AF Gruppen ASA

Hello, and a warm welcome to the presentation of the first quarter of the AF Group 2024. Today's theme is our energy business, and will be presented to the board of directors, Eirik Vrold. After the presentation, there will be a reason for questions and answers for those who have met up here at Helsefyr today. The main points in this quarter are that we have had result improvement and a stable order reserve. If we look at the turnover first, we have a turnover of 7.1 billion. We have a result before tax of 186 million. The result margin was of 2.6%. We have a cash flow to run at 128 million, and we have an order reserve per 31 March with a net profit of 40 billion kroner, and a net profit of 974 million kroner. Styret has proposed an exchange rate in the first half of 2024 of 3,50 kroner per share. To take care of the safety and health of those who work for us, both our own and our sub-entrepreneurs and suppliers, is the most important thing we do in our business. In this quarter, we have had four incidents that have led to emergency or serious personal injury without emergency. When we share this with those million hours have been executed, this gives a HN value of 0.8. If we look at the injuries that have led to medical treatment or have led to alternative work, we get the H2 value, and it is at 7 in this quarter, which is both well above our goal at 5, but at the same time it is in a positive direction. Sjukhefraværet har endt på 4,5% i dette kvartalet, som er tilsvarende sommernivå som første kvartal i fjol, men opp fra året samlet i fjol. If we go back and look at the figures, the revenue has been closer to the summer level. The results before the tax have gone up to 186 million, which gives a result margin of 2.6%. This is improvement in results, but it is still a level that you who have been with us for a long time know that we are not satisfied with. Another important parameter for us is the cost of invested capital. Here we take the result before the tax and interest rates are put back. The last four quarters are rolling. It is at 977 million per first quarter. And then we have a fairly unchanged average investment capital of about 5 billion, and that gives a return on investment capital of 19.5%. And the target for the A-group is 20%. If we look at the cash flow, we have had a cash flow from drift at 128 million, and we have liquid funds coming in at 348 million. The number is 348. It's in the upper right corner of this picture. And when we have interest rates on one side of the line, and then we have leasing obligations on machines and house leasing obligations and interest rates in return, we get a net interest rate of 974 million. And the main change from the first quarter of last year lies in increased debt on machines. Our draw facility of 3.5 billion means that we have available liquidity of 3.3 billion, and we mean that we are in a solid financial position. If we look at the balance, it is the same as before, and that gives an equity share of 21.9%. The equity share, the exclusive effect of IFRS 6, is 23.2%. As mentioned earlier, Styret has promised an exchange rate of 3.50 kroner per share in the first half year. We are responsible for the footprint and environmental pollution that our company is affecting the environment with. We measure three parameters here. The first is the source sorting rate. We have sorted over 44,000 tonnes in the first quarter, and the source sorting rate is relatively stable at 88, 86 and 92 percent, which is well above the authority requirements at 70 percent. Further, we have ripped and sorted metal for recycling, and in this quarter, right to the bottom, or right to the top, at 5,900 tons. And we have recycled a lot in our environmental parks, at right to the bottom, at 64,000 tons. And that has given a total savings of about 11,000 tons of CO2 equivalents this year. We move on and look at how it works in our different business areas. We started Tradisjon Tru with facilities, where we had a growth of over 40% compared to last year, and the turnover ended at an overhead of 2 billion, with a operating profit of 116 million, and a profit before tax of 131 million, which gives a operating margin of 5.7 and 6.4%, which is up from last year. We can see on the picture to the right, one of the projects that is contributing positively in this quarter. It is from the bypass in Stockholm, where we are building nearly 20 km of tunnels and roads under Stockholm to bind south to north, and is a good example of the projects that AF Anlegg is part of, and in this quarter, where they have record high turnover and deliver good results. And as mentioned, we have several large projects in operation. If we continue to look at Målsvall Maskin & Transport and Stensted RS, they also deliver good results in this quarter. And then we have VSP, which delivers below expectations. Eikon has both low activity and delivers a weak result in this quarter. The order volume is at about 1.5 billion, while the order reserve is down by just under a billion, but still at a very solid 16.6 billion. If we look at construction, the revenue has gone down to 2.2 billion. We have a operating profit of 64 million, which gives a operating margin of 2.9%, which is up 0.9% from last year. Bygg Østfold is delivering very good results this quarter. In addition, Bygg Fornyelse, Haga Berg, Strøm Gunnarsen, Strøm Gunnarsen Vestfold, OBF and HTB are delivering good results. Bygg Oslo has a result far below expectations, while Lab Entrepeneur is below expectations, and AF Håndverk & Fas is delivering poorly this quarter. It is also nice to note that we have sold seven contracts in this quarter at a total value of a little over 2.3 billion, and that the order volume has been at over 3.3 billion in the quarter, and that the order reserve has increased by about 14%, and is now at about 10.6 billion. If we look at the concrete mast, the turnover is down to 1 billion, and we have a operating profit of minus 20 million. It is Oslo, Boligbygg and Trøndelag that have weak results, and I have to mark this quarter in that way, while Betongen, Strøsand and Østfold deliver good results in the quarter, and Buskerud, Vestfold and Inlander have results that go below expectations. If we look at the order volume, it is a little over 300 million, while the order reserve is slightly higher, with about 7%, to 5.5 billion. If we look at ownership, even with 19 sold apartments in the quarter, and we have 103 apartments delivered in this quarter, we still mean that it is a locked housing sale, which also affects the results in this quarter. Greit å få med sig, og gledelig at vi har fått gjennomført kjøpet og tomta på Ullevålsveien 114 i det her kvartalet, og som vi også har forventninger til i nær fremtid. If we move on to Sweden, we still have a quarter with a strong decline. We are at 1.3 billion, and we have a result of about zero in this quarter. Prefat Mellardalen delivers very good results, and Kanonaden delivers a good result in this quarter, while Bygg Syd and Hørnesand, Bygg Retourer, have a low-expected result. HNB delivers weak in this quarter. The order entry is on the right edge at 900 million, and we have an order reserve that is down to about 4.6 billion. If we look further at energy and the environment, the growth continues in this business area. The quarter ends at 338 million in turnover, with a turnover of 17 million. This gives a turnover margin of 5.1%, up from 3.7% last year. AFE Energi has both a high level of activity and improvement compared to last year, with high activity and good operations. This is the part of today's topic that Eirik will get more into later. AFDKOM also has revenue growth compared to last year, and has a result somewhat below expectations in the quarter. If we look at the year-round, the trend is the same as last year, while the year-round reserve is up to 1.2 billion. If we look at offshore, growth continues. We have a turnover of just below 300 million. We have a turnover of 14 million, which gives a turnover margin of 4.7%. Aeron has a high level of activity and delivers good profitability in this quarter, while Offshore Decom has carried out several offshore campaigns in the quarter. The unit has a weak result in the first quarter, but there is still high room for improvement on the project that was affected last year, which is the reason for that. If we look at the order volume, it is at 183 million, while the order reserve is at 1.3 billion. If we look at the total oil reserves, it is 40.2 billion at the beginning of this quarter. It is divided by facilities by 16.6 billion, buildings by 10.6 billion, concrete masts by 5.5 billion and Sweden by 4.6 billion, which are the largest contributions to that. Even though there are different statuses in the different business areas, we have gathered, given the times we are in, that this is a solid and stable order reserve for us. And now we have come over to today's theme part, and then I would like to welcome Eirik Vrold to the stage.

Thanks for having me. My name is Erik Broll. I am a corporate director and head of the business area Energy and Environment. As Amund mentioned, I will give a brief overview of what we do within the energy part of the business area. In short, it provides the business area, energy and environment, energy-efficient solutions for construction and industry, and is a leading actor in environmental nutrition, mining and recycling. The business area had a growth of a little over 30% last year, and the turnover growth has continued into this quarter, with an increased activity of 18% compared to the same quarter last year. The order reserves remain robust at the top of 1.2 billion. I will use the next few minutes to tell you a little about the energy part of this business area. AF's energy industry works extensively to reduce energy consumption through alternative and renewable solutions for new and existing buildings. AF Energi develops, builds and runs power plants and cooling plants throughout Norway. We are also a partner in several power plants. AFE Energi has long experience, both as an advisor and as an entrepreneur, and this means that we can guarantee that the advice we give, gives results. We thus give a guarantee of results on our advice and execution. Our ambition is to create competitive power by delivering innovative and sought-after solutions in a special, efficient and industrialized manner. This is to keep the quality up, but not least to keep the costs down. I will come back to this in a moment. We have a broad project portfolio with many different customer groups. Møller Regnedom makes a bigger commitment to energy efficiency, and has set itself as a goal that at least half of your property will be sustainable in the future. We help Møller open these goals, including by installing solar cells and heat pumps in Møller Bils many locations. In 2022, we delivered technical work on the expansion of the eastern pier to and from Nonschengen on Gardermoen. Earlier, we also delivered heat and cooling facilities to the new terminal on Bergen, Lufthansa and Flesland. At Vestlia, at Gjeilo, we recently contributed to a cut of 30% of energy consumption and achieved energy market B for the hotel. The energy savings here have been more than two gigawatt hours a year. That's a lot. Residents of Billingstad get daily, environmentally friendly and energy-saving energy from our common energy center in Asker. The energy for the homes is produced by heat pumps that collect energy from the ground. The energy center covers about 90% of the energy demand, for the citizens and at the same time discharge the power grid with 1.4 megawatts. We believe that a solution like this will have even greater value in the future. As mentioned, our ambition is to create results in an industrialized way. We have seen that our industry has an infinite potential to industrialize the technical part of this building process. When we are involved in creating Norway's largest university building, state buildings have always been a listener to our thoughts and our proposals for solutions. Therefore, our entrepreneurship has had great influence, which has made it possible for a larger number of prefabricated elements than in a traditional enterprise contract. As you can see in this picture, at the beginning of March, 17-metre tall, finished-produced pipes were lifted into the air science building. This is the first time this method has been used in such a large area. The pipes come in four parts and are easily placed on top of each other in openings in the building. The shafts are equipped with pipes and insulation, and are therefore able to be connected to the building as soon as they are in place. This is positive for the quality. It ensures safer working conditions. The efficiency increases, and it gives good performance. There is also less waste and waste. And not least, they can be used for building heating and roofing already in the construction phase. We are really satisfied with the solution, and we believe it will set a new standard for similar projects in the future. After three years, we have recently delivered power plants and cooling to the new clinic and proton building on Rademot Hospitalet. The success factor in this project was that we were able to design and adjust our own prefabrication at an early stage. We had an ambition to produce 65% of the equipment before the hospital arrived, but through good collaboration and planning, we managed to increase the proportion to over 90%. The biggest advantage of this prefabrication was that we moved the work teams from the construction site to the factory. This contributes to good predictability, less disturbances and more efficient work. There will therefore be lower costs, both for us and for Health Sør-Øst. Sykehusbygd has communicated that they are excited about this result. This is good news to take with us from an important customer in the future. The need for energy in society is increasing. In addition to water power, it is important that the energy we will use in the future comes from renewable energy sources. The possibilities are great when it comes to these renewable energy sources, and the advantages are many. One of these possibilities is increased use of bioenergy. Bioenergy accounts for about 5% of the total energy consumption in Norway today, including Sokken. Bioenergy is a very current renewable energy solution for industries that are predominantly based on coal and oil. Enova prioritizes bioenergy in addition to heat pumps in its 70 units. The reason why Enova does this is that they know that the plants discharge the power grid, especially when there is no wind or sun. We at AF are very curious to learn more about this energy source. That is why we have just announced that we are offering a new competence environment in the AF group. ETIA Norway is a high-component entrepreneur that delivers heating to agriculture and industry and contributes to everything from design to installation and service. ETA is Norway's leading supplier of bioenergy, and will provide the AF with access to a new and exciting segment. Bioenergy is considered a particularly important energy carrier outside the central line. With strong expertise and good references within bioenergy, the AF Group wishes to continue building on ETA's leading position in a niche market with great potential. AFEnergi combines most energy sources in its projects. For example, recycled heat from industry, ambient heat from waste, surplus heat from data centers, heat and cooling from rivers and lakes, and basic heat with heat pumps. In addition, we install solar cells for electric energy production. With the competence of ETA, AFI also gets a good foothold for a new renewable energy source. ETA complements us very well so far. Finally, some thoughts on the future. The demand for energy and environmental related services is good. Norwegian authorities have set ambitious goals for reducing energy consumption by 2030. The goal is to reduce energy consumption in existing buildings, improve utilization, and at the same time reduce total emissions by more than 50%. The uncertainty in electricity prices and new methods for calculating electricity costs also make investments in energy-efficient measures very attractive. We wish to contribute here. Vi skal fortsatt være en utfordrer ved å levere effektive tjenester som skaper verdi for våre kunder og samarbeidspartnere. Derfor skal vi fortsette å rekruttere og utvikle kompetansen som vi mener vil skape morgendagens løsninger og ikke minst arbeidsplasser. Takk for meg.

Thank you, Erik. Let's go over to the summary. We've had a quarter where we've had improvement in results. We have a strong financial position. We have a stable order reserve of over 40 billion. As mentioned, the board has proposed an exchange rate for the first 11 years at 3.50 kroner per share. Vi ønsker med det å takke til dere som har føddes digitalt, og ønsker dere en fortsatt fin dag, og så går vi over til spørsmål og svar for dere som har møtt opp.