Transcript Bild 1
The ÅF-Group
CMD 2006
Jonas Wiström, President & CEO
1
Agenda
ÅF in brief
Financials
Vision & Strategy
2
Our Mission
We make our client’s businesses…
…more profitable
3
…environmentally adapted
…and safer
The new ÅF
3 500 employees in 12 countries
ÅF
4
Infrastructure
Process
ÅF-Benima
Systems
Inspection
900 employees
1 100 employees
1 000 employees
280 employees
230 employees
ÅF in the world
Eget kontor
5
Agenda
ÅF in brief
Financials
Vision & Strategy
6
1H in brief
Almost 1 000 employees added through three major
acquisitions, equals 35% growth
Enprima, Ingemansson Technology and Benima have met or
exceeded expectations
The Benima companies are the base for the new
ÅF-Benima Division, Nordic leader in the automation-field
The Process division underperformed
Approx. 290 MSEK generated with a preferential rights issue
A lot of new projects and customers !
7
Acquisitions & Disposals
(in millions of SEK)
Company
Revenue
EBIT
Employees
Jämtteknik
52
5
65
11
Combra
50
4
57
32
Benima
500
40
510
525
Enprima
250
27
270
121
Ingemansson
125
8
130
53
25
0
Ericsson/Lysekil
Infraplan
14
3
13
5.5
FORCE/avd
12
1
15
2
-23
22
PX-Solutions*
*Disposal
8
Price
Balance sheet, H1
incl new share issue (in millions of SEK)
Assets
30/6
2006
31/12
2005
Liabilities*
30/6
2006
31/12
2005
Equity, incl Minority shareholdings
1,019
581
116
92
82
63
Intangible assets
805
132
Building and land
0
0
103
87
Long Term Liabilities
51
36
Accounts payable, incl. accruals
176
125
Accounts receivable, incl. uninvoiced 829
653
Payroll-related liabilities
365
207
Cash and bank
159
242
Advance payments from customers
98
34
Other receivables
176
70
267
118
2,123
1,220
265
129
Equipment
Financial investments
Total assets
2,123 1,220
Appropriations
Other liabilities
Total equity and liabilities
*Interest-bearing liabilities
Equity/assets ratio
9
48.0%
47.6%
Sensitivity analysis
Change
Effect on earnings
(all other factors unchange)
SEK/share (before tax)
Capacity utilisation
+/–1%
2,00
Hourly rate
+/–1%
1,70
Payroll costs
+/–1%
1,05
Factor
10
Capacity utilisation 2000-2006
76
June
74
June
June
72
June
70
June
June
68
66
11
A
O
06
J
J
A
O
05
J
J
A
O
04
J
J
A
O
03
J
J
A
O
02
J
J
A
O
J
A
01
J
J
00
64
Income statement, 1H 2006
CONSOLIDATED INCOME STATEMENT (in millions of SEK)
Net sales
Other operating income
Operating income
Personnel costs
Other costs
Depreciation
Impairment of goodwill
Share of associated companies' goodwill
Operating profit
Net financial items
Profit after net financial items
12
Jan-Jun
2006
Jan-Jun
2005
1 394,0
19,0
1 413,0
-901,3
-414,6
-25,0
0,0
2,1
74,3
-2,6
71,7
1 217,1
0,0
1 217,1
-781,0
-352,7
-22,2
-2,0
3,2
62,4
-2,5
60,0
+15%
+19%
EBIT-margin, 1H 2006
Division
13
Jan-June Jan-June Jan-Dec Jan-Dec
2006
2005
2005
2004
Infrastructure
8,8%
8,1%
7,3%
6,0%
ÅF-Benima (pro forma)
7,9%
Inspection
8,1%
9,9%
10,5%
7,6%
Systems
6,7%
1,4%
0,6%
-13,4%
Process
0,5%
5,8%
3,5%
2,0%
ÅF-Group
5,3%
5,1%
4,2%
0,6%
7,4%
Division Process - analysis
New division
International market brings new demands
Project control/project management must be
strengthened
Consistently poor results in certain units
Energy market is growing rapidly
14
Division – Process
Our offer: Consulting services throughout the entire project chain, to
the pulp & paper industry and energy industry.
Objectives: To rapidly improve profitability. Become a market leader in
our sectors.
Strategy: Increase local presence internationally such as Russia, the
Czech republic and South Africa
1H-2006
1H-2005
547
600
1,123
3
35
40
Operating margin, %
0,5
5,8
3.5
Share of Group sales, %
34
47
47
Sales, MSEK
Operating profit, MSEK
15
2005
Division Process - actions
New management and organisation
Focus on Energy / Pulp & Paper
New routines for major projects
Review of loss-making businesses
Relative growth in new markets – focus on Russia.
Integrate Enprima
Sales focus
16
Division – Infrastructure
Our offer: Consulting services, methods and solutions, ensuring
optimum function in the socio-economic and industrial infrastructure
Objectives: Become a leading player in the Nordic market in all our
business areas
Strategy: Offer outsourcing possibilities, enter into closer alliances and
partnerships with clients
Business areas: Installations, Roads & Railways, Telecommunications
and Electrical Power Systems
1H-2006
1H-2005
489
413
777.7
Operating profit, MSEK
43
34
56.7
Operating margin, %
8,8
8,1
7.3
Share of Group sales, %
31
34
33
Sales, MSEK
17
2005
Division – System
Our offer: Product development, business support and shared
processes systems and IT services
Objectives: Improve profitability, become # 1 or 2 in segments in
which the division operates in Sweden
Strategy: Taking on large assignments in growing from today’s
275 employees to in the longer term 1,000
Business areas: Embedded Systems, Mechanical Engineering,
IT-Solutions
Sales, MSEK
Operating profit, MSEK
Operating margin, %
Share of Group sales, %
18
1H-2006
1H-2005
2005
138
147
265
9
2
1.5
6,7
1,4
0.6
9
10
11
Division – Inspection
Our offer: Inspection, testing, CE-marking, certification and training
services
Objectives: Remain a strong player in the Nordic market for technical
inspections
Strategy: Be a strong player and the main driving force in the Nordic
market. International expansion through collaborations with other
accredited inspection firms
Sales, MSEK
Operating profit, MSEK
Operating margin, %
Share of Group sales, %
19
1H-2006
1H-2005
2005
105
102
207
9
10
22
8,1
9,9
10.5
7
9
9
Division – ÅF-Benima
Our offer: Consulting services for automation and industrial IT.
Objectives: Further strengthening its leading position in the
Nordic countries and also in the Baltic Region
Strategy: Enter into closer alliances and partnerships with
clients
1H-2006
1H-2005
473
-
-
Operating profit, MSEK
39
-
-
Operating margin, %
8,3
-
-
Share of Group sales, %
19
-
-
Sales, MSEK
20
2005
Agenda
ÅF in brief
Financials
Vision & Strategy
21
Our Vision
Profitability target of SEK
100,000/employee and year
Being the spearhead in the technical
consulting industry by introducing
methods giving the concept “value
added” a new dimension to our clients
Become # 1 or 2 in each market in
our fields of expertise
Grow sales to MSEK 5,000 by 2010
22
Profitability Jan - Jun 2006
23
Infrastructure
SEK 95,000 per employee p.a.
ÅF-Benima
SEK 83,000
Systems
SEK 78,000
Inspection
SEK 74,000
Process
SEK 5,000
Sales growth 2000-2010, (MSEK)
6000
ÅF’s Vision
5000
Forecast
proforma
4000
3000
Actual
f
2000
1000
0
2003
24
2004
2005
2006
2007
2008
2009
2010
Our Strategy
Structure
Systems
Culture
25
The previous ÅF
26
The new ÅF
3 500 employees in 12 countries
ÅF
27
Infrastructure
Process
ÅF-Benima
Systems
Inspection
900 employees
1 100 employees
1 000 employees
280 employees
230 employees
ÅF structure pre-2003
1 of 16
100%
ISO9000 System
ÅF structure
today
One (1)
common
business support
system for
ISO 9000 & 14000
1 of 4
25%
28
ISO14000 System
Businessmanship
Innovation by experience
International growth
29
Outlook 2007
Market continues to be strong
Improved profit margins in all divisions and
significantly improved profitability in Process
Further penetration of eastern Europe and Russia
30
ÅF in Russia
31
History: ÅF and former Fortum Engineering Oy (ÅF-Enprima)
In 2004 Enprima was (one of) the first western engineering consultant in the
market – today we have a good foothold
Today: 30 highly skilled engineers in Moscow and St. Petersburg.
Net sales 2006, € 2 500 (e).
Strategy: To be a Russian company with ’Western added value’ which
means to bring in efficient ways of working (business processes). Growth
organically and by acqusitions.
M&A: The size of a target company: approx. 100 employees.
Latest News: ÅF has acquired a contract for a new waste-to-energy plant in
Moscow. The contract value exceeds 3 M€. The project will be executed by
the Finnish and Russian staff of ÅF and is expected to run for 36 months.
Financial target: Net sales of 10 M EURO by 2008. Ebit margin 10 %.
Energy market Russia
NEXT FIVE YEARS:
123 INVESTMENT PROJECTS
23,8 GW CAPACITY
$ 36 bn. CAPEX
UES restructuring and investment program
8 000 MWe thermal
4 500 MWe hydro
“Guaranteed Investment Program”
4 000 MWe
Nuclear program
4 000 MWe
Market for IPP development ; foreign companies will enter the market
Strategic industrial investments and autoproduction investments
Old capacity refurbishment
Plus the nuclear sector plan for 25 years is 40 new blocks / $60 bn.
32
A strong brand
Market image;
The survey is based on
replies from 610 randomly
selected decision-makers
in technical consulting
buying companies with
over 50 employees.
(Source: ISI Wissing
2005/2006)
33
ÅF at the top of the industry tree
among students of technology
ÅF -- the best technical
consulting company.
4,102 students of technology at 34 Swedish
universities and colleges were interviewed
between 24 January and 13 March 2006.
34
Ranking 2006 Technology
students (engineering)
#
Percent
Sony Ericsson
Ericsson
ABB
Volvo Car Corporation
Saab Technologies
AstraZeneca
Saab Ericsson Space
Volvo Group
Scania
IKEA
Saab Automobile
McKinsey & Company
Ångpanneföreningen
Vattenfall
Pfizer
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16.68%
15.93%
15.88%
13.97%
13.65%
13.29%
12.97%
12.46%
10.82%
10.62%
10.11%
8.52%
8.11%
7.94%
7.62%
And among professional
engineers…
Swedish Career Index 2006
In the Career Index Survey 4,000
engineering graduates currently in work are
asked which company they would most like
to work for.
35
A ntal oms atta akt
140 000
90
80
70
60
50
40
30
20
10
0
120 000
100 000
80 000
60 000
40 000
20 000
0
aug-06
feb-06
Antal avslut
aug-05
feb-05
aug-04
36
feb-04
aug-03
feb-03
aug-02
feb-02
aug-01
Omsatta aktier
A ntal av s l
Genomsnittlig aktieomsättning per dag (- 5 år)
Spread i aktien (- 5 år)
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
aug-06
feb-06
aug-05
feb-05
aug-04
feb-04
aug-03
feb-03
aug-02
feb-02
aug-01
37
aug-06
feb-06
aug-05
feb-05
aug-04
feb-04
aug-03
feb-03
aug-02
feb-02
aug-01
38
100
90
80
70
60
50
40
30
20
10
0
Antal dagar med avslut (%)
Handelsdagar med avslut (- 5 år)
Antal aktier
Antal aktier per 2006-08-31
A-aktier
804 438
B-aktier
15 457 665
Totalt:
16 262 103
Antal ägare: 5 145 st
39