Thank you, and welcome to to all of you for this Q3 presentation. Starting with the overall figures, turnover of 18.9 billion Danish kroner, and as you can see, roughly 37% turnover outside Denmark, corresponding to around 7 7 billion.

A first 9 months with turnover as expected and satisfactory EBIT, landing on 842, 4.5%. Absolute figures a little bit higher than last year, and percentage-wise slightly slightly lower.

Construction segment, the picture is from Articon, the Faroe Islands, where Articon is building a huge dry dock on the Faroe Islands. Construction segment turnover of roughly 8.9 billion Danish kroner, EBIT result of 384, a revenue growth of roughly 16%, where the group growth was is roughly 14%, but Construction 16%.

We do, as said earlier this year, we do see a high activity level within the construction market, especially civil engineering infrastructure projects. Fehmarn is one of them, where we have high activity.

Lynetteholm projects, we do have a project on the Funen Island also, which is is on a high activity level. Generally, generally busy and high activity level, also with district heating project in in Greater Greater Copenhagen.

We do still see increasing investments in projects related to critical infrastructure, growing focus on investment in defense and also, you could say, infrastructure in in in general. Still still a lot of investments out there, still a lot of opportunities.

As we announced, we was awarded a confidential critical infrastructure project just before the summer vacation with a value of more than 1 1 billion Danish kroner. Many opportunities out there and also within residential renovation of buildings, especially in Greater Copenhagen, we also do see high activity level and many market opportunities.

Our three major ongoing building projects, Mindet and Nicolinehus in Aarhus and Terminal 3 in Copenhagen, are all three progressing as as planned. The North Atlantic market, especially Greenland and Iceland, also high activity.

To a lesser extent, on the on the Faroe Islands. Generally, the North Atlantic market had also good good market conditions.

Then, CG Jensen and Adserballe & Knudsen, the latest acquisition within Construction, is included in the figures now with effect of early early June. The pick Ah, sorry.

The picture you can see on the on the left-hand side is is a strengthening of a breakwater in Hanstholm. A breakwater breakwater that we built back in '18 to 2020.

Now, due to bigger water depths, deeper water depths, a part of the breakwater needs to be strengthened, and that is done by stones, granite stones, and so-called Cubipods, that's the concrete concrete elements you can see in in the lower part of the picture. They are casted here on our factory in Aarsleff Bisco in in Świnoujście in in Poland.

Technical Solutions, the picture is from one of our district heating projects in Greater Copenhagen. Revenue or turnover of roughly 3 billion Danish kroner and EBIT result of 167, corresponding to 5.4%.

Growth of roughly 7% compared to the same period last year, and also do we do here see high activity level within district heating. Many of the projects are done together with the Construction segment.

Green transition, energy, and also some of our projects for the public sector, pharmaceutical sector, we do see high activity level, although that we do expect especially for the pharmaceutical sector, pharmaceutical industry, a more normalized activity level going going forward. As said also in the Construction segment, good market conditions, many tender opportunities out out there, so still, still within those three areas: green transition, energy, and and infrastructure projects.

We do see many many tenders out there. Rail, the picture is from some track works between Høje Taastrup and Roskilde close to Copenhagen.

Revenue turnover of 1.6 billion Danish kroner, growth of roughly 9% compared to the same period last year, EBIT result 54 million, 3.4%, roughly at the same level as as last year. Again, as we have said earlier on earlier conference call this year, the activity level and the earnings are mostly driven by the activities in Denmark, where we are busy with the electrification projects, the light rail project in in in Copenhagen, and also our 4 to 5 contracts in in Aarhus central railway station, there we we are busy and have high activity.

The market conditions in Denmark are still are still pretty good going forward. Actually also both in in in in Norway and Sweden, but there we are more careful, cautious about how much we take in as we have spoken about.

We have been through a so-called turn around, both in in in Norway and Sweden over the last years, and we want to be sure that that we do not take too much orders in that we cannot that we cannot organize properly. The the yeah, the picture you can see is is from a relatively huge contract that we have recently been awarded the central station in Copenhagen to be renovated.

A con- a contract that has been awarded to to both railway and and, you could say, Kirkebjerg. Still relatively good market conditions, especially in Denmark and also Norway and and Sweden.

Then to Ground Engineering, the only segment out of five that is not performing as planned. Four out four out of five segments are actually performing as planned or better.

Ground Engineering, as we have told about, spoken about, earlier this year where we had had most uncertainty, is is still expecting difficult market conditions in in more countries. The the utilization of our our our factories, precast pile factories is still on a on a relatively low level.

Poland, Sweden, and and UK is is performing on a on a satisfactory level, and we are having a turnover, revenue of of 3 billion Danish kroner, growth of roughly 16% compared to the same period last year, segment results 40 million, 1.3%, not on a satisfactory level, but as you can see, better than than last year. As I said, a growth of of roughly 16%.

The demand for for especially the the precast piles is still still on a low level in in in more countries, meaning, as I said before, low capacity utilization, especially in the factories. The market conditions out there are are pretty good.

There's a huge pipeline of of interesting projects, more projects that that are interesting for both the Construction segment and and Ground Engineering. We are still a bit cautious as we have said on earlier conference call.

We have seen postponement of projects, also cancellation of some projects, and so we are a bit cautious whether those projects lying in front of us in the pipeline also will will realize postponements. The but the pipeline the pipeline is good.

It's It's It's a good ground engineering projects out there. Then, Salzgitter Kai, huge quay renovation project in in Hamburg that we have worked on together with HOCHTIEF for the last 1 to 2 years has now been awarded and and going into Phase 2 where we are starting the the execution on on on on the projects.

The picture is from Aarhus, geotechnical investigations on the future Marselis, Marselis tunnel that will be send out in tender within, well, I expect the one next to 1 to 2 years and a 1.8 km tunnel that will have the effect of improving the traffic to to Aarhus Harbour, especially for for the trucks. Yeah.

Pipe Technologies, starting with the picture, is from training of some of our new Canadian colleagues in in in Aarhus, colleagues from the company LiquiForce that we acquired earlier year this year, and where we have had several people in in Denmark to to start training of of our of our equipment. Revenue roughly 2.3 billion Danish kroner, EBIT result of 197, 8.6%, on a still on a on a high on high level, both activities and also the earnings, a growth of roughly 19%, and in the opposite to to Ground Engineering that that that has difficult market conditions in more countries, Pipe Technologies are seeing, realizing, expecting good market conditions in in basically all the countries that we are that we are active in, strong activity level in in all significant markets.

As I said earlier this year, we acquired a part of LiquiForce, Canadian company, and the works of getting people trained and getting getting equipment to Canada is is is progressing according to to our plans. The picture is from Copenhagen, a housing building in in in Copenhagen built back in the early '30s where we are renovating all the interior pipes in the in the building.

Order backlog, order intake, starting with order backlog, all-time high on 28.1 billion Danish kroner. As you can see on on the graphs, strong in in almost all segments, and the order intake is close to 21 billion Danish kroner for the first 9 months.

If we look at Q3 alone, more than 8 billion in in order intake. Strong order intake and strong order backlog and basically also in in most of the of the five segments.

Then, to guidance for for for this year, unchanged compared to what we have communicated earlier. Revenue growth 12% to 15%, and an EBIT margin between 5% and 5.3%.

That was a run-through of the of the figures, and then we can go over to questions and answers.

Thank you very much, and hello, Jesper and Mogens, and thank you for taking my questions. I have a few.

If we start with the implied Q4 results here on the on the guidance, of course, relatively wide margin range for the Ground Engineering segment, and I would suspect with only 1 month left of Q4 here, I would assume that you have pretty good visibility. Can you maybe just put some words on what would need to happen for you to end in either side of the margin range here for Ground Engineering?

As we have said earlier, and I think that's still the case, out of the five segments, Ground Engineering, you could say, is is a segment where where we through the year has have indicated the biggest uncertainty. I think we can still say that that's still the case.

We are we are more certain about the other the other four the other four segments. That's that's why we maintain a pretty, I think you've said, wide range in in EBIT.

You can say, Anders, we need to have a good utilization rate in our factories and and that can still be That's two things that can come in, and that can be postponed depending on on on on except timing of of the projects, and then there are some projects we are executing where depends on how well we do it. That can either bring us to the lower end or the higher end.

Yeah.

We have some some larger projects that that we are ongoing. It's basically the product execution and utilization at factories that will have have an effect on whether it's the bottom or the upper.

Within

some good Upper is more difficult than lower, let's say like that.

Yeah. We could say it like that.

Yeah.

Okay. Yes, that is also what I would expect.

Perfect. If I may move on to a question on on on M&A, maybe if you can put some words on on the integration process of the recent acquisition of CG Jensen and Adserballe & Knudsen.

Are they operating as expected? Maybe some some more words on that.

The implementation the implementation plan that that we have that we have set out together with CG Jensen and Adserballe & Knudsen are progressing as as as planned. I think it's it's not it's not very different from from what we from what we see in in Aarsleff that that there are there are many market opportunities out there in some areas more than in other areas, and that's the same than that CG Jensen and Adserballe & Knudsen is is is seeing.

Especially, as as we spoke about earlier this on this call that renovation of of of buildings, transformation of buildings, there we do see a lot of opportunities out there, good market conditions, maybe better than in in other areas. Both CG Jensen and Adserballe & Knudsen, and also Hansen & Knudsen, are active in that market.

That's that's very positive.

We can say, on the other hand, they have an exposure to construction of new buildings, and that's where we have a weak market, still see a weak market.

They have

exposure to some good market segments and also exposure to some less, would you say, weaker activity. It's

It's not very different to what we expect what what we see in Aarsleff.

No.

Okay. You you mentioned specifically in the report that your working capital is going up due to the acquisition here.

Where should we expect that to end for the full year? Is this a new run rate for for the group with with CG Jensen implemented?

You can say we see there's not a permanent situation. They have I think that's quite public known that they have some projects where they have some disputes with a client that are at the moment driving the working capital quite significant up.

When those, yeah, disagreement has been solved, then they will we expect CG Jensen as as a specific to come down to to the group level. We also have signed some significant contracts here in June, July, where there is some significant, very significant down payment.

Of course, that will drive down working capital quite considerable in the fourth quarter. Up here due to CG Jensen, that that will not be solved within the next month or two.

That's probably would take longer, that's our expectation. The working capital will go down in fourth quarter due to to this large contracts where we we have some nice down payments.

Okay. Understood.

Thank you, Mogens. A question on on Technical Solutions.

You you mentioned that that market opportunities here are generally returning to a more normalized level. Looking at the order intake of recent quarters in Technical Solutions, as you see it right now, would it not be reasonable to expect that you next year will post negative revenue growth year-over-year in Technical Solutions, or are there some significant orders here that you would be able to recuperate in the coming quarters to to also drive growth for next year?

What I what I tried to say was that that within the pharmaceutical industry, we we do expect a more normalized normalized level than we have seen in the in in the last 4 to 5 years, especially for one of the players in the pharmaceutical industry. There are there are opportunities out there.

As we also can see in the other segments that that that it the order intake differs from quarter to quarter. It it's correct that that that in the third quarter, the order intake has not been too high in in Technical Solutions, and and whether that will whether that will continue, we we we we we I don't think you can say that for sure now.

Of course, we have two large hospital projects, and we will they are getting closer and closer to being finalized, we will have less revenue on those two specific contracts next year than this year. Also, as Jesper said, the pharmaceutical sector is we have some some large ongoing projects that are getting closer as well to be finalized.

We need new projects to come in. Whether we will succeed will be We will see.

Of course, there are opportunities as we mentioned within especially defense that could

could pick up, could pick up here.

Yeah.

Okay. Thank you very much.

That was all for me.

Thank you. A couple of questions from my side as well.

Just on the acquisitions, I note you write that you have not finalized the purchase price allocations yet. Any idea of when that will be done?

Obviously, since you are guiding on EBIT, could that potentially impact your guidance? I know it's a technicality, but but still.

No, Christian. It will be finalized here in the fourth quarter.

Basically, our auditors has not signed off yet, so that's why we are saying it's still ongoing. We have included what what we think is the right thing in our our third quarter report.

Before the auditor has signed off, this is a significant investment. We just need to put that out there.

Of course, there's also we are integrating them now. If something pops up, of course, that could also affect it.

As we we I I don't expect anything to a material to change, and so it will I would be surprised if if there is an effect to the EBIT and our guidance.

Makes sense. Great.

Then, then just on on on on Ground Engineering again. Obviously, downgraded the the margins twice.

Still, I sense some some optimism in in the outlook when when you describe Ground Engineering. Maybe help us understand what what needs to happen for for the performance in that segment to to turn around?

I think the pipeline we have, I I don't think Jesper and I have ever seen a pipeline like that. When we discuss with ground engineering management, we are saying, "You need to choose because you cannot follow all those leads."

The pipeline is there. It's so it's a question about when will it materialize, and and then there's an issue as we said how how if there's not any precast concrete piles in them, of course, that's a that's an issue.

But The opportunities that it it's, as Mogens saying, the pipeline is really huge. As we have never seen Yeah, repetition from from what Mogens said.

We have never seen for the for the last many, many years such a pipeline of of interesting infrastructure projects where there's a lot of ground engineering works in. It's a question of when when will there be signed, and when when when will execution start?

You can say, Christian, in Denmark and in Poland, we are very good at getting our precast piles included in infrastructure projects. In Sweden, we're working on that, and there's a huge project, Västlänken, that that sooner or later execution will start.

We hear that it's getting more and more delayed. Everybody expects quite a large number of precast piles piles in that project, and that will help our Swedish entity with the factories.

Germany is more the the onshore wind wind farms that that is drawing a large precast concrete piles, and that that's an increasing market. We can see that.

We are also trying to push more our our concrete piles into to infrastructure bridges and, but that's not Germany is conservative. In UK, we're quite successful in fully pushing our piles for all the data centers.

That's really helping the UK business at the moment. We we still wait for this that that that it really kicks off.

It's a ketchup effect that we're missing. Yeah.

Basically, fourth quarter looks good here, and but we have seen that before. We have a good fourth quarter, and then suddenly first quarter is is weak again.

We would like to see more than one quarter before we we would say now we are we are we are past this this weak market in in some of the countries.

Understood. That makes sense.

Then, just the last one from from my side. Obviously, the the implied guidance on margin for Q4 points to a fairly strong margin.

Maybe if you can just elaborate on on your comfort on why the last quarter should be so so strong.

We we we there you'll say that that's when we compile the figures, that that's that what's the prognoses is is is saying. We we have we have a number of contracts that are that are coming coming to an end, and and some of them are going better than expected.

That's that's a part of that's a part of the of the explanation that that there'll be a there'll be a an improvement of of of of the results of of of more than one more than one project.

Yeah. Especially it's it's in the Construction segment,

but

there are also some in the Rail and some in that we are where Tingvej's part and there's also some some Ground Engineering part. It's fairly As

have been taken in EBIT-wise carefully and and and and, yeah, they are all all progressing and going better than planned.

Understood. Excellent.

That was all for me. Thank you.

Hi Jesper and Mogens. Thank you for for taking my questions.

I have a few. Maybe starting on on on the Construction segment.

I know there's a quite steep step-up in profitability here from from from last quarter. I know this is a also a strong seasonal quarter.

However, as I recall, you you've previously hinted that you see, some some some some tailwind from project timings here in in the in the H2. To what extent has, project timings helped the quarter here and and and to what extent should we expect similar in in in Q4 and beyond?

There are some effect of project timing. We have started to to be more positive on the final result on some of our projects, and that's that's increasing in our Q4.

We are getting closer to finalization of these projects here in Q4,

so as we always do,

we start slowly to write up the the margin when we get close to to to finalization.

Okay. Will you finalize these big projects in Q4?

Will there also be some spillover into Q1 next year?

There are some spillover.

Yeah. Some spillover into next year.

Not a lot. Not a lot.

No.

Okay. Mainly Q4.

Okay. That's that's clear.

Then, circling back to similar to as my colleague, circling back to to to the Ground Engineering segment. Not performing as planned and and and it feels like has been a recurring topic for some while.

You say pipeline is good, order intake also looks solid, and and and, revenue recognition is also, yeah, solid here in the quarter. When should we expect you guys to come back to anything close to sort of the historical profitability in the the Ground Engineering segment?

You have this medium-term target, I recall, is it 6.5%. Is that not next year, but the year after?

Or what should How should we think of of of of of you or your ability to achieve that target given what you're looking into now?

The good thing with Ground Engineering is it can suddenly it can very quickly come back if we get more activity on precast pile factories. As we see it right now, we we we, as we said, the pipeline is good.

We clearly expect improvement next year. However, I think it would probably be too early to reach the 6.5%.

It's not impossible if if suddenly the market comes with a lot of precast piles. As we see it right now, it will probably more be 2 to 3 years out before we start hitting where we should be.

Next year seems to be much better than this year.

There are positive signs. Denmark looks good.

Germany, it looks like improving. UK looks okay, so Poland looks okay.

Sweden, there are also positive signs, although that we can always a bit more mixed, let's say like that, but but partially positive signs also in Norway. If all that starts to materialize, then then we clearly expect a better result next year, and then let's see in 2 years' time or 3 years' time.

The good thing is it can come very quickly due to the the good margin on when we have full activity on the pile factories.

It's

It's

one of the segments, both both Pipe Technologies and and Ground Engineering, is is, you could say, the two out of five segments where we normally have short visibility. That's why we say that it can quickly shift.

Then, Sebastian, we've not really talked much about it, but but but to be fair, also to Ground Engineering, the diesel the price on diesel is not helping us. In in in Ground Engineering, we have really large machines that consumes a lot of

of of Basically, it affects the whole group.

Whole group and especially in Ground Engineering and and in Pipe Technologies. Basically, we are absorbing that in in the figures we are guiding.

Okay. Okay.

No, that's on on that note, what maybe could you talk around what you're what you're currently seeing in in terms of of of, the impact on profitability from from from higher diesel prices? Previously, as I recall, it was mainly in the the pipe tech, but as you say also a bit in in Ground Engineering.

Maybe if you could talk, broadly around what kind of effects you're seeing and how we should expect, that to pan out in the coming quarters?

The good thing in Pipe Tech is a good market, and that gives us more power to raise our prices. As you said, it's really mainly in Denmark we have frame contract.

There are a few some in Sweden and Norway, but it's really in Denmark. Here we will get it through the indexation.

That will take some time. In some of our main markets in Germany, it's short-term contracts.

Within 3 months, we can we can increase our prices. Of course, we have done that already, and that will start, of course, help the results late this quarter maybe, and next is that next quarter.

Ground Engineering is a bit the same as short-term contracts, so of course, maybe we have not been in Q3. I looking in hindsight, we have probably been affected because it's short-term contracts, some of them.

Of course, we can we can use a new diesel oil price in in in our pricing. Then, in in the Construction segment, it it's in index it's in indexation.

It takes at sometimes before it's go through in indexation. We also have some risk allocation in those that can can absorb some of it.

To be honest, all five segments do have machines that use diesel. It it it it affects all five segments.

Yeah. Okay.

It

is

being absorbed in the figures that we have guided.

I think the past has shown that we are able to to pass it on. Maybe not in the short term, but but in medium term, we are able to to to get it passed on to our clients.

Yeah. If if diesel prices, knock on wood, stay, roughly the same as they are now, you should, all else being equal, see some, tailwind in terms of profitability next year when we compare to to this year?

In some segments more than others,

let's

say like that.

In principle, yes.

Yes.

Okay. Yeah.

No, that's very clear. Then my just last question.

Can you just confirm if I heard correctly, Mogens, that you are to receive some some quite hefty down payments here in the fourth quarter. Fourth quarter is shaping up to be a very strong cash flow quarter.

Is that correct?

Yeah. I think it's Yeah.

That's that's correct. Everything else being equal, we will get an unusual amount of advance payments in the fourth quarter.

If we can keep the rest at the same level, it it it will

improve

improve quite significant,

yeah. That's correct.

Sounds good.

Sounds good. Thank you for taking my questions.

Thank you.

Yes. Thank you very much again.

I just have a a question on the Northern Atlantic. Maybe if you can put some words on what you're currently seeing in Greenland, Iceland and the Faroe Islands?

My say with my impression is also that the activity has been pretty strong here. What capacity are you looking into?

An update would be appreciated.

Let's start with the most positive. In Iceland, we really see strong market.

There's a lot of interesting opportunities, and we have also been winning quite a lot this year. It's a very strong market and some very, yeah, especially fish farms, land-based fish farms.

We see infrastructure projects. We hydro plants, we've won one, and there's a big one coming out.

Really sweet spot for Aarsleff, bridges. We really like the Icelandic market at the moment, and we have also seen good execution up there.

Positive on Iceland. Greenland, we secured quite a few large projects a year to 2 years ago.

There's not a lot of money at the moment in the in the municipalities or the government up there. They they would need some more funding from Denmark to if if they have to kick off some projects.

That But we see now the defense projects are coming out, and it's it's it's the Danish defense that have projects in their pipeline. It's US defense up at the Pituffik Space Base that have projects in the pipeline coming out.

It's always a question about timing. When it comes to defense, it's always difficult about the timing.

We we can see we are in a very, very strong position for these defense projects that are that are in the pipeline up in Greenland. Faroe Islands, bit more mixed picture.

Infrastructure, we don't see much at the moment. There is a huge demand for for housing and and and when those projects will kick off, that's a that's a question.

We we we see housing-related projects will will will come come out here. We also see defense projects both in Faroe Island and and in Iceland.

It's there's a harbor in Iceland. There's

radar system

in in in Faroe Island. It will, but Iceland will be the main driver here the coming years, defense in Greenland, and then housing in in Faroe Island.

All right. Thank you very much.

Very insightful. Just a follow-up on that, and maybe I remember wrong here, but would you be still be able to So it sounds like Iceland is is is a good market right now in the Northern Atlantic.

You have a strategy of sort of bringing your staff from say the Faroe Islands, they would be able to work on Iceland as well? Would you be able to transfer them over there or

Yeah. They would be, and they are very interested in that.

That's that's our backup plan. I don't see a capacity issue in Iceland at the moment.

Of course, it could change. We are also bringing in Danish capabilities, and we are using our facility down in Poland for things.

We have things that, for example, the Kirkesand, we can see Kirkebjerg is now supporting on the big hospital project we we we signed this year up there, and there's a bridge project where we bring in Danish people. So

We have more tools we can bring into play.

Yeah. Basically, Anders, we of course, we shift our people around to where we see the best market opportunities, where you get the best price and the best conditions.

I thought so. All right.

Thank you very much. That was all for me.

Thank you. Thank you for listening, and thank you for the interest in our company, and thanks for good questions.

I hope you'll have a continuous good day. Thank you for for now from Mogens and I.

Thank you.