AFRY as an investment
AFRY is a stable company with historically good returns and profitable growth. Global megatrends are expected to lead to growing demand for sustainable solutions, which will create major opportunities for AFRY where we can take a leading role as an enabler.
1. Strong underlying trends
Global megatrends such as climate change, urbanisation and digitalisation are shaping demand amongst clients and are expected to lead to an increasing need for scalable and sustainable solutions, while digitalisation remains a driving force within all industries and sectors. The EU Green Deal and taxonomy will drive investments and accelerate the transition to a sustainable society. AFRY is well-positioned to take a leading role as an enabler.
2. Leader in sustainable and digital solutions
Based on the strong position that AFRY has built up within sustainability and digitalisation, we are contributing to the ongoing transition to a sustainable society. This transition is clear in many transforming segments, including Infrastructure, Food & Life Science, Clean Energy and Bioindustry. Within these, AFRY can take a clear position in the client’s value chain and the assessment is that the segments will create strong and long-term growth going forward.
3. Diversification for low cyclicality
AFRY’s broad portfolio and international presence enables us to take on larger and more complex assignments to meet our clients’ needs for advanced and sustainable solutions. A broad portfolio also generates stability across fluctuations in the economy and better spreads risk. AFRY has a strong local position in the Nordic region and selected international segments.
4. Attractive employer
Over the long term, our ability to attract and develop the best employees is crucial. Being an attractive employer ensures that we can recruit talented employees who want to join us in creating leading solutions, which in turn strengthens our client offering and competitiveness. AFRY is ranked as one of the most popular employers amongst engineers and researchers in Sweden.
5. History of stable growth and profitability
AFRY’s target is annual organic and acquired growth of 10 percent. Over the last 10 years, average sales growth amounted to 9 percent (17 percent including platform acquisitions). Based on a strong balance sheet, AFRY will also accelerate the acquisition agenda with a focus on add-on acquisitions as well as platform acquisitions. AFRY also aims to achieve an EBITA margin of at least 10 percent over a business cycle, and over the last 15 years, the average EBITA margin has been 8.5 percent.
6. Long-term value creation
Over the last five years, the share return was 96 percent, compared with 52 percent for OMX Stockholm PI. We represent long-term sustainable development that adds value for shareholders, clients, employees and society.