the Åf group jonas wiström, president & ceo jonas Ågrup, cfo viktor svensson, ir per...
TRANSCRIPT
The ÅF Group
Jonas Wiström, President & CEOJonas Ågrup, CFO
Viktor Svensson, IRPer Magnusson, Engineering
September 2008
ÅF today
Vision and strategy going forward
The ÅF share
Agenda
3
ÅF today
ÅF
Energy750 employees
Engineering1 400 employees
Infrastructure1 550 employees
Inspection425 employees
4 100 employees in 19 countries
Development, FY 2004-2008
4
Rolling 12-months
Rolling 12-months
Rolling 12-months
Operating income Operating profit Operating marginMSEK MSEK %
5
Financial summary
Q2 2008
Net sales SEK 1 173 (968), +21%
Organic growth 11%
Operating profit SEK 135 (85), +59%
EPS SEK 5.53 (3.53), +56%
Q1-Q2 2008
Net sales SEK 2 238 (1 900), +18%
Organic growth 10%
Operating profit SEK 251 (159), +58%
EPS SEK 10.22 (6.54), +56%
EBIT-margin per division
Jan-June Jan-June Jan-June Jan-dec Jan-dec
2008 2008*) 2007 2007 2006
1. Engineering 13,6% 12,9% 9,5% 9,6% 8,4%
2. Infrastructure 12,5% 11,4% 11,6% 10,0% 8,2%
3. Inspection 12,5% 11,6% 11,6% 15,5% 9,9%
4. System 11,7% 10,7% 7,5% 8,6% 5,7%
5. Process 9,5% 9,0% 6,2% 7,0% -1,2%
*) excluding Alecta fee discount
Balance sheet Jan-Jun 2008 (in millions of SEK)
Equity/assets ratio 46.7% 48.9%
Assets30/6 2007 Liabilities*
Intangible assets 1 145 863 Equity, incl Minority shareholdings 1 421 1 174
Building and land 109 0
Equipment 116 102 Accounts payable, incl. accruals 276 239
Payroll-related liabilities 411 358
Accounts receivable, incl. uninvoiced 1 190 927 Advance payments from customers 143 73
Cash and bank 310 322 Interest-bearing liabilities 424 346
Other receivables 147 169 Other liabilities 255 191
Total assets 3 041 2 418 Total equity and liabilities 3 041 2 418
30/62008
30/62008
30/6 2007
Long Term Liabilities 113 36
24 34Financial investments
31/12 2007
1 084
101
110
1 061
310
104
2 796
26
1 339
242
333
141
398
233
2.796
30/6 2007
110
Agenda
ÅF today
Vision and strategy going forward
The ÅF share
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Financial objectives
The ÅF Group’s financial objectives as stated by the Board of Directors in August 2007
ÅF is to be the most profitable among the closest comparable companies in the industry and achieve an operating margin (EBIT) of at least 10 percent over a business cycle.
ÅF is to be a net debtor. Net debt shall not exceed 40 percent of equity.
The earlier formulation for the Group's growth target, which specifies that ÅF is to attain sales of at least SEK 5 billion by 2010, remains unchanged.
A possible downturn
Make sure that you monitor: Order backlog, utilization rate, prospect list and sales calls all the way out in the entire organisation.
Trust your numbers, they do not lie.
Act before your competitors.
To become the leading technical consulting company in Europe
How to get there!
Strategy and Structure
Operational excellence
Business culture
ONE ÅF
We must be able to act as one company!
and
We must be a decentralized network!
ÅF a global network!
One brand
One global system
Common Core Values
We have the industry’sbiggest bank of experience
Shared business support system
Internal skills development
Challenging assignments
Competence developmentthrough:
“To start from a clean sheet of paper isfine if you have nothing worth preserving”
Ferdinand Porsche
Growth
15% average annual growth:
50% organic
50% M&A
Organic growth
To obtain an unfair proportion of the best people through aggressive recruiting of experienced engineers as well as young professionals
Employeer branding
Mentorship and trainee*
*Trainee program Nuclear to be announced
The world’s largest annual series of athletics meetings, Golden League, is changing its name to
ÅF Golden League.
TVs-broadcasting in 113 countries100 million viewers per season
The organising cities of the ÅF Golden League are in order; Berlin (1/6), Oslo (6/6), Rome (11/7), Paris (18/7),
Zürich (29/8) and Brussels (5/9).
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ÅF a top choice among professional engineering graduates
Career Index 2007/2008The “Career Index” survey asked 5,400 of Sweden’s actively employed engineering graduates which company they would most like to work for.
2222
ÅF in a Global World4 100 employees, 90 offices, 19 countries
Own offices / Subsidiaries / Branch Offices
Global growth requires domestic leadership!
-To be-To be No1 or No2 on the markets we act means invest in the countries No1 or No2 on the markets we act means invest in the countries were we are present rather than to invest in new countrieswere we are present rather than to invest in new countries
How to get there!
Strategy and Structure
Operational excellence
Business culture
25
Change Effect on earnings
Factor (all other factors unchanged)
SEK/share (before tax)
Capacity utilisation +/–1% 2.34
Hourly rate +/–1% 1.76
Payroll costs +/–1% 1.26
Sensitivity analysis
How to get there!
Strategy and Structure
Operational excellence
Business culture
Businessmanship
More complex world
Customers buy functions
Businessmanship is getting increasingly important!
Businessmanship
”Stay out of trouble, choose ÅF”
Summary
One ÅF – one structure, system and culture
Strong markets and high utilisation rate
Focus on less-cyclical business and profitable growth
Strong brand
Huge assets of experience and expertise
Long and strong customer relationships
Q&A – session
Agenda
ÅF today
Vision and strategy going forward
The ÅF share
The ÅF share
ÅF share
0
50
100
150
200
250
2003 2004 2005 2006 2007 2008
ÅF OMX all share
Interest in the share
2
4
6
8
10
12
14
16
18
Cybercom HIQ Semcon ÅF Sweco Pöyry
Q1'07 Q2'07 Q3'07 Q4'08 Q1'08 Q2'08
Daily value (SEKm)
The largest shareholders2008-08-31
Shareholder Capital Votes
ÅFORSK 15,81% 36,72%
Swedbank Robur 6,65% 4,66%
Nordea 6,05% 4,24%
Handelsbanken 4,40% 3,09%
JP Morgan 4,31% 3,03%
Deutsche Bank 3,88% 2,72%
ÅFOND 3,84% 6,73%
Number of shares2008-08-31
A-shares : 804 438
B-shares : 16 222 075
Total : 17 026 513
Number of shareholders : 5 100
Swedish shareholders : 57,4% Capital, 70,0% Votes
Foreign shareholders : 42,6% Capital, 30,0% Votes
Fikapaus!