Slides
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Q1 2025 Linda Pålsson, President & CEO Bo Sandström, CFO 24 April 2025
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Q1 highlights Net sales 6,749 SEK million (6,891) EBITA excl. IAC 490 SEK million (590) EBITA margin 7.3 % (8.6) Results underline need for structural measures — Total growth of -2.1% and -0.9% adj. organic — Sales decline in Industrial & Digital Solutions and Process Industries partly offset by strong growth in Energy — Order backlog sequential growth adj. for currency of +4% — Profitability pressured by slow ramp-up and challenging market in some segments — Negative calendar effects of -37 MSEK on EBITA level — Increased macro uncertainty from global tariffs — Announcing new Group structure and changes in the Executive Team
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Market update INDUSTRIAL SECTOR — Mixed market with uncertainty in some segments — Growing demand in defence while stable in automotive, food and life science — Demand in pulp & paper and for IT consultants remains low ENERGY SECTOR — Continued strong demand across segments and regions — Transmission and distribution of electricity are key investment areas INFRASTRUCTURE SECTOR — Stable demand for transport and industrial infrastructure — Real estate segment remains weak
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Division overview Infrastructure — Growth driven by higher average fees and attendance rates in the quarter — Margin improvement despite challenging real estate market 1.7% 8.6% Adj. organic growth EBITA margin Industrial & Digital Solutions — Challenging market in parts of portfolio with remaining uncertainty — Slow ramp-up and effects from Agency Work Act -3.1% 7.0% Adj. organic growth EBITA margin Process Industries — Sales and EBITA impacted by low demand in pulp & paper — Signs of increased market activity while ongoing capacity adjustments where needed -5.1% 7.8% Adj. organic growth EBITA margin Energy — Strong growth across segments driven by energy transition — Solid project performance and stable increase in margins 11.7% 9.9% Adj. organic growth EBITA margin Management Consulting — Solid energy demand offset by weaker bio-based industries — Growing interest in sustainability consulting -2.6% 9.9% Adj. organic growth EBITA margin Q1 2025
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New client projects Q1 2025 Automated factory for forest plant production in Sweden AFRY has signed an agreement with SweTree Technologies to develop a factory for automated and large -scale forest plant production. The project aims to produce resilient forest plants, strengthening the bioeconomy and reducing carbon emissions. Offshore wind farm in Estonia AFRY will deliver front -end engineering services for the Liivi Bay offshore wind farm in Estonia. Offshore wind energy is a key component of the country’s strategy to expand its renewable energy portfolio and strengthen energy independence. Tram-Treno tunnel in Switzerland AFRY has won a contract for the design of the Tram -Treno tunnel in Lugano, Switzerland The tunnel is a key element in the redesign and expansion of the region’s public transport network.
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Financial Summary
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AFRY Q1 2025 Financial overview Net Sales, quarterly and R12, SEK million EBITA excl. IAC, quarterly and R12, SEK million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 24,798 6,916 26,954 6,891 27,018 6,749 689 590 490 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 2,103 1,933 2,012
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Structural 0 FX 6,891 6,832 6,749-37 Calendar -46 Adj. OrgPrice/Volume -59 Q1 2025Q1 2024 -0.9% -2.1% Net Sales, SEK million Net sales AFRY Q1 2025 Comments — Higher average fees partly compensated for lower volumes — Negative calendar effect of 4 hours, corresponding to SEK -46 million on net sales (-0.7%) — Negative FX effect due to SEK appreciation in the quarter (-0.5%)
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Comments — Negative growth also in Q1 given lower number of FTEs. Decline driven by Industrial & Digital Solutions and Process Industries, due to partly challenging market — Energy continues to improve growth quarter by quarter Group adjusted organic growth, YoY, % Growth development AFRY Q1 2025 Adjusted organic growth by division, % Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 0.5 2.2 0.1 -0.2 -0.9 Infrastructure Industrial & Digital Solutions Process Industries Energy Management Consulting Q4 2024 Q1 2025 2.6 -3.1 Q4 2024 Q1 2025 -9.6 -5.1 Q4 2024 Q1 2025 6.7 11.7 Q4 2024 Q1 2025 -9.6 -2.6 Q4 2024 Q1 2025 3.2 1.7
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Comments — Order backlog impacted by currency effects from revaluation of -850 MSEK. Adjusted for currency effects order backlog improved 4.4% sequentially — Currency adjusted, order backlog growth from last quarter driven by Energy, Process Industries and Industrial & Digital Solutions Group order backlog, SEK billion Order backlog AFRY Q1 2025 Q1 2024 Q1 2025 2.8 3.1 Q1 2024 Q1 2025 3.1 3.1 Q1 2024 Q1 2025 5.3 5.1 Q1 2024 Q1 2025 0.5 0.5 Q1 2024 Q1 2025 8.7 8.4 Order backlog by division, % Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 20.4 19.9 19.7 20.1 20.2 -0.9% Infrastructure Industrial & Digital Solutions Process Industries Energy Management Consulting
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EBITA development AFRY Q1 2025 590 553 490 Q1 2024 -37 Calendar effect Cal. Adj. Q1 2024 Q1 2025 -63 8.6% EBITA margin 8.1% 7.3% Comments — EBITA and EBITA margin impacted by slow ramp-up and ongoing capacity adjustments — Challenging market in parts of Industrial & Digital Solutions and Process Industries — Infrastructure and Energy continues consistent margin improvement trend Group EBITA excl. IAC, SEK million Q1 2024 Q1 2025 9.2 7.0 Q1 2024 Q1 2025 10.4 7.8 Q1 2024 Q1 2025 9.6 9.9 Q1 2024 Q1 2025 11.4 9.9 Q1 2024 Q1 2025 8.1 8.6 EBITA margin excl. IAC by division, % Infrastructure Industrial & Digital Solutions Process Industries Energy Management Consulting
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AFRY Q1 2025 Cash flow and financial position 108 420 162 117 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 1,304 +9 Operating cash flow, SEK million Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 5.0 5.5 5.6 4.6 4.7 +0.1 Net debt excl. IFRS16, SEK billion Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 4.6 3.8 3.7 4.2 3.9 -0.3 Available liquidity, SEK billion Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 2.6 2.6 2.6 2.1 2.3 +0.2 Net debt/EBITDA excl. IFRS16, times
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AFRY’s next chapter
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THE NEXT CHAPTER AFRY makes changes to its Group structure to accelerate profitable growth — Portfolio review and operating model evaluation is ongoing — Portfolio review reveals untapped potential related to AFRY’s portfolio and operating model — Room to take out cost and improve utilisation — AFRY announces change to Group structure and Executive Team — New structure to structurally address AFRY’s cost base and improve profitability — Updated strategy to be presented in the second half of 2025 Focus AFRY’s core business Enhance client value Fit-for-purpose operational structure
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THE NEXT CHAPTER AFRY makes changes to its Group structure to accelerate profitable growth Energy Industry Segments Transportation & PlacesGlobal Divisions Current Divisions Simplified and client-focused structure Global segment model Segments with a clear connection to the energy and industrial transition, as well as to building a more resilient society Gearing-up AFRY towards the future and accelerate profitable growth The new Group structure will come into effect on 1 July 2025 Road & Rail Public & Commercial Places Pulp & Paper Automotive & Other Industries Life Science Biorefining & Chemicals Mining & Metals Food Hydro Nuclear Thermal Renewables & Energy Storage Transmission & Distribution Management Consulting Process Industries Energy Management Consulting Infrastructure Industrial & Digital Solutions
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THE NEXT CHAPTER AFRY announces changes to its Executive Team, effective as of 24 April 2025 Linda Pålsson CEO and President Elon Hägg EVP Global Division Energy Robert Larsson EVP Global Division Transportation & Places Nicholas Oksanen EVP Global Division Industry Sara Klingenborg EVP People & Culture Susan Gustafsson EVP and General Counsel Henrik Tegnér EVP Commercial & Communications Bo Sandström EVP and CFO Daniela Spetz EVP Corporate Development & M&A