Multiconsult Asa Unsp/Adr

to this presentation of the figures for the third quarter of 2024 for Multikonsult. My name is Grete Bergele. I'm the CEO. And with me during this presentation today, we will also have Ove Herpberg, our CFO. I would just like to remind you that almost immediately following this presentation, we will have a short break and then we'll go straight on to the Capital Market Day presentation. To start with, just to remind you, who is Multikonsult? Multikonsult is a Norwegian-based company with operations in Scandinavia and Poland. We operate in four segments. Regions Oslo, where the headquarter is, and a few offices outside Oslo. Regions Norway, which is then all the other offices not included in the Oslo segment. We have an architectural segment that comprises three link architecture companies in Norway, Sweden and Denmark, and the architectural company Arlab. International comprises our engineering company Iterio in Sweden and Multikonsult Polska in Poland. We operate in four business areas. building and properties, mobility and transportation, energy and industry, and water and environment. And our project portfolio has an even distribution of public and private clients. More than 15,000 projects that we execute every year. We have 5,500 clients and we have a footprint of a project in more than 45 countries. And during the last four years, we have delivered a steady, profitable result, benefiting both our employees, society and our investors. Going to the summary of this quarter. As the key figure shows, we continue the strong momentum from the last quarter and we deliver a robust operational performance and a great improvement from the third quarter last year. The robust operational performance is largely a result of a stronger billing ratio of 71.2% supported by high organic growth. The results are positively affected by settlement with a client, but also Taking this away, we still deliver a very strong result for the third quarter. There is a strong improvement in Regions Norway, and there is also improvement in our architectural business, and Ove will give you some more details of this. An adjustment of the put option with iLab affects our financial results positively. Going on to sales and market, sales in the quarter was almost 1.3 billion, and the company exits the quarter with an order backlog of 4.8 billion. The reduction in sales is within the normal fluctuations that we expect between quarters. And the slight reduction in order backlog was also expected as we enter peak production in some of the largest projects that we have in our portfolio. The sales in this period, again, good distribution. We had sales with the Norwegian Defence Estate Agencies. We had a property development in Denmark. And it's a proof of the transformation the Danish architects are now doing away from fully dependency on the health sector. We had a project related to a road project in Poland, and we also had a large bridge in Norway. Sorry. Following the closing of the books, we have also announced two other large sales, one for the Norwegian Defence Agency of 450 million and a water treatment plant just outside Oslo. So we are standing here with a strong portfolio of projects. We see a continuous strong pipeline and we see also Again, the increased demands that we have talked about previously related to defence facilities. Looking at people and organisations, we are now 3,893 employees and a total of 3,560 employees. multi-shares were transferred to new employees. We announced the appointment of Agathe Schettlein as our EVP sustainability, and we maintain this strong position among the top five ranked as a preferred employer among students. When it comes to excellence, This project, the Goldspanner project in Aarhus, has been awarded a diamond distinction and honored with certificates for exceptional architecture. It's one of the first buildings in Denmark to actually receive this award. We have also one of the three who were nominated among the Young Engineer of the Year in Norway. And Inge-Lise Jelsbakken, a GIS specialist, was awarded the Lighthouse Award by Geodata, showing that we have people at the forefront, promises good also for the future. And with that, I hand you over to Ove.

Thank you, Greta, and good morning. We have a closer look at the third quarter numbers year-to-date, and as normal, starting with the quarter. The net operating revenue in the quarter ends at 1,148,000,000. That is an increase of 17.5% from last year. In this, the organic growth was 15.9%. And on top of that, we have the M&A activity giving an extra sales increase by 2.3%. And to sum up for you, that is HELM at the end of Q4 last year. We had VRSUS in Q1 this year. And then from the third quarter, side partner and Petter J. Rasmussen. And the calendar effect is negative in this quarter by 0.6% or 6.1 million. And you might wonder why. There is one more working day compared to last year, but we have two more working days in July and one less in August. And this is causing this negative effect due to the different values between the months. The main drivers behind the growth are a higher number of employees, 176 or 72 full-time equivalents. This is seen in the graph underneath as increased capacity. We also have increased billing rates, that is part of the revenue effect, and the improved billing ratio. The billing ratio for the quarter is 71.2%, an improvement of 3.4 percentage points from last year. EBITDA amounted to 102.9 million. That is an increase of 252.3%. or 73.7 million from last year. The margin is 9%, also increased by 6 percentage points. And then we have some adjustments. EBITDA adjusted for the one-time settlement of 31.2 million. It's 71.7 million, and also then with a margin of 6.4%. And the underlying EBITDA also shown in the quarterly report in the Alternative Performance Measure is 77.8 million with a margin of 6.9. As Greta mentioned, the order intake 1,277,000,000 and the order backlog solid 4,838,000,000. And then the reported profit. It's 80.2 million. That is an increase of 70.6 million from last year. And in this, as a subsequent measurement, the ALA put option obligation had improved over net financials by 10.6 million. Then we move on to year-to-date figures. And net operating revenue year-to-date is 3,940,000,000, an increase of 14.5% from last year. Organic growth 12.2% and the M&A activity 3.1% with acquisition presented on the previous page. The calendar effect, again, negative by 0.8%, or 27.2 million. We have the same number of working days, but there's a difference in the values between the months. Main drivers behind the growth, also year to date, the same as we have on the quarter. Higher number of employees, we have increased billing rates and we also have the increased billing ratio. 72.9% year to date. EBITDA 425.4 million, that is an increase of 41%, and the margin of 10.8%, also an increase by 2 percentage points. And also here to date, these adjustments, giving the EBITDA adjusted on 394, and the underlying EBITDA is 421.3 million, or 10.7%, as you will find in the tonality performance measure. Order intake year-to-date, 4,655,000,000, and the reported profit year-to-date, 323,7 million, increase of 120 million from last year, and the subsequent measurement of ALA put option is in the net financial with 36 million year-to-date. So something has to push it hard. OK. sometimes it's not wise to be gentle okay um then the financial highlights quarter by quarter um top left you will see net operating revenues and the third quarter numbers is in orange and net operating revenue increased by 17.5 and also with the trend on the rolling 12 months still i have an upward trend So this in combination with the billing ratio that you find on top right, increased by 3.5 percentage points, and also the increase in number of employees by 4.7%, in combination with the other revenue effect, give us then the margin you see down left with 9%. Then we look closer on the different segments. And in these numbers is the quarter compared to the same quarter last year. And we start to the left with regions of slope. And in this segment, you will find consistently good underlying performance. The net operating revenue in the quarter was 448 million. That is an increase of 20.6% from last year. The one-time settlement with the client is reported in this segment, and that is affecting the net operating revenue by 31.2 million. But the increase was also driven by increased number of employees. that is 34 full-time equivalents, the increase in billing ratio with 2.9 percentage points, and as well as higher billing rates. You will find a negative calendar effect of 2.9 million in this segment. Operating expenses, 375.1 million, increase of 9.9%, and the increase is mainly driven by employee benefit expenses, and due to net recruitment, ordinary sale adjustment, and the acquisition of site partner that is part of this segment. And then leaves the EBITDA on 66.4 million, and the corresponding margin of 14.8%. Then we move one step to the right to Regions Norway. And as we had the last quarter, it's still a significant improvement in the results. The net operating revenue increased to 64.3 million, and that is an increase of 16.5%. And the EBITDA was 37.4%. increase of 25.5 from last year. And these improvements are driven by a solid growth in the capacity, 63 full-time equivalents, improved billing ratio by 4 percentage points, and also improved billing rates. The calendar effect negative in this segment by 2.5 million. Okay, then we are ready for architecture. Net operating revenue at the same level as last year, 149.7%. Calendar effect negative in this segment by 1 million, but the currency effect is positive by 2.6% on net operating revenue and 0.3% on EBITDA. And then the three LINK companies, starting with LINK Norway. We see a weaker result compared to the same quarter last year. The market conditions differ based on the geography, but remain challenging in part of the country, especially in the Oslo market. The Oslo market is characterized by delayed project startups. Due to the market condition, the total capacity is reduced and there will be some temporary layoffs during Q4. In Link Sweden, the results improvement continues. The results are considerably better than in the same quarter last year, and this is caused both by higher activity and higher billing rates. And there is still a challenging market, but a slight improvement from Q2. And then linked Denmark, we experienced an improved performance compared to last year, and there is continued high activity and savings in other costs. Also in Denmark, still a challenging market, but a slow improvement from last quarter. Then the last architect company, Arlab, mainly exposed towards the private market in Oslo area, seeing more demanding market conditions causing reduced net operating revenues. And to compensate for the sales loss, there is unfortunately a number of temporary and permanent layoffs in the quarter. Our lobby is delivering a negative result for the quarter, but there is improvements month by month, including from the same quarter last year. As reported last quarter, we see some positive signs of improvement in the market conditions. In total in this segment, we see a reduction in the number of full-time equivalents by 52 compared to the same quarter last year, and there was 5.5 temporary layoffs at the end of Q3, and of course that's full-time equivalents. International, that's the last one to the right. Net operating revenues increased by 34.6%. And the currency effect is estimated positive by 6.5 million, giving 9.4% of this growth, and also a positive calendar effect by 0.7 million. And there is higher activity in both companies, Multiconsult Polska and Interio. And in Interio, you will also have the effect of the integration of Helm and Vea resources. EBITDA for the quarter, 4.8 million compared to 5 million in the same quarter last year, a slight decrease of 4.1%. And there is an increase in Ethereum, a small decrease in Multiconsult Polska. Currency effect positive by 0.4 on EBITDA in this segment. And also positive signals on a gradual improvement in the marketing conditions for both companies in this segment. Then our financial position. Starting the year to the left with a positive cash on 278 million. We have created a positive cash from the operation including IFRS 60 of 522 million. We have a change in working capital, negative on 260 million. This is seasonal fluctuations. And we have used 143 million for investments. Of this, 62 million on M&A activity and 84 in increased fixed assets. And in this, now the new vessel, Multicat, that is a substandard part of this number. Cash from financing minus 279, and that is dividend paid in April, 221 million, and also the purchase of owned shares by 34 million. And this is used for the employee shared ownership program later this year. So a negative cash at the end of the quarter, but going to the right, you will see that the financial position is still strong. We have a long-term debt of 457 million, and the gearing ratio is well below the financial targets of 0.84%. Then the last page from me, the free cash flow. And in this number, the free cash flow is calculated positive from operating activities minus cash flow from investment activities. And we leave out acquisitions in this. So you see that we have a positive cash flow from operation 29 in this quarter. We have used 24.5 million on investment activities, giving them a positive cash flow of 4.8. But they're rolling 12 positive on 575 million, and you will see that in the top of the graph. By that, Greta, I will hand it back to you.

Thank you. This is an overview of the revenue distributed amongst the four business areas. We've had a growth of 17% year over year in total, not very big fluctuations here. with the exception of water and environment. Water and environment is our smallest business area. So once you get a call for a large project, it gives a big effect. So basically this big effect is related to the water supply project that we're doing in Oslo and also some projects on climate adaptation that we are currently doing. So, to sum it up, our outlook. Overall market outlook remains good and stable. We see that there is a continuous good level of opportunities in the pipeline. Defence, infrastructure and sustainability projects continue to drive demand, but there is a continued uncertainty and increased competition in parts of the market. High volumes of ongoing projects, a diverse portfolio and a high order backlog gives us a solid foundation also going into the fourth quarter. And we have so far in the fourth quarter experienced good sales. So with that, we complete this session. We open up now for questions. And just a reminder that the next time we see you is in February next year.