Interim report January 1 - June 30, 2015 Peter Wgstrm President - - PowerPoint PPT Presentation

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Interim report January 1 - June 30, 2015 Peter Wgstrm President - - PowerPoint PPT Presentation

Nov 14, 2022 399 likes •859 views

Interim report January 1 - June 30, 2015 Peter Wgstrm President and CEO Ann-Sofie Danielsson Chief Financial Officer Rotebro bridge, Stockholm 2015-07-17 NCC AB 1 Rotebro bridge, Stockholm 2015-07-17 NCC AB 2 Rotebro bridge,

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SLIDE 1

2015-07-17 NCC AB 1

Rotebro bridge, Stockholm

Interim report

January 1 - June 30, 2015

Peter Wågström

President and CEO

Ann-Sofie Danielsson

Chief Financial Officer

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SLIDE 2

2015-07-17 NCC AB 2

Rotebro bridge, Stockholm

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SLIDE 3

2015-07-17 NCC AB 3

Rotebro bridge, Stockholm

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SLIDE 4

Q2 2015 in brief

2015-07-17 NCC AB 4

Orders received SEK 15.8 BN (17.3) Order backlog SEK 58.4 BN (56.7)

Wiesenweg, Köln

Net sales SEK 14.2 BN (13.5) Profit after financial items SEK 541 M (576)

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SLIDE 5

January - June 2015 in brief

2015-07-17 NCC AB 5

Orders received SEK 29.1 BN (30.5) Net sales SEK 25.4 BN (23.3) Order backlog SEK 58.4 BN (54.8, Dec. 31 2014) Profit after financial items SEK 287 M (336)

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SLIDE 6

Trends in Nordic construction market

2015-07-17 NCC AB 6

Sweden Favorable trend in all segments Norway Favorable trend in infrastructure Denmark Growth in Copenhagen and Aarhus – residential and other buildings, energy renovation Finland Challenging market

Hercules factory, Västerås.

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SLIDE 7

2015-07-17 NCC AB 7

Increasing net sales

NCC Construction

5 10 15 20 25 30 35 40 45 50 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Orders received, quarter Order backlog Orders received R12 Net sales, R12 SEK BN

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SLIDE 8

Increased share of small/ medium projects

NCC Construction

25% 32% 14% 10% 8% 4% 7% 10% 36% 17% 14% 10% 6% 6% SEK > 300 M SEK 100-300 M SEK 50-100 M SEK 25-50 M SEK 10-25 M SEK 5-10 M SEK < 5 M Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Project size, orders received Total SEK 10.6 BN Project size, order backlog Total SEK 37.5 BN

2015-07-17 NCC AB 8

Q2 2014 Q2 2015

<5 5-10 10-25 25-50 50-100 100-300 >300 SEK M

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SLIDE 9

2015-07-17 NCC AB 9

Geographical distribution

Orders received, NCC Construction

1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Sweden Denmark Finland Norway Q2 2014 Q2 2015 SEK M

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SLIDE 10

2015-07-17 NCC AB 10

Good order intake in residential

Orders received, NCC Construction

1 000 2 000 3 000 4 000 5 000 6 000 Civil engineering Residential Other buildings Q2 2014 Q2 2015 SEK M

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SLIDE 11

2015-07-17 NCC AB 11

A selection of construction projects in Q2

Expansion of E22 outside Kalmar, Sweden SEK 260 M Refurbishment and expansion of the Harju campus in Finland SEK 270 M Residential at Islands Brygge in Copenhagen, Denmark SEK 360 M Brynsengfaret School, Oslo, Norway SEK 270 M

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SLIDE 12

Several major partnering agreements signed in Q2

2015-07-17 NCC AB 12

Södersjukhuset, Stockholm

New Children’s hospital, Gothenburg, ≈ SEK 850 M Expansion of Södersjukhuset, Stockholm, ≈ SEK 1 BN Three hospitals in Sörmland, ≈ SEK 3 BN To be registered in coming quarters

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SLIDE 13

Trends in stone material, asphalt and road service

The Nordic m arket

2015-07-17 NCC AB 13

Stone material Stable demand Asphalt Favorable demand Road service Stable demand

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SLIDE 14

Slightly lower volume of stone material

Volum es of stone m aterial sold, thousands of tons

2015-07-17 NCC AB 14

8 273 7 862 Q2 2014 Q2 2015

Ohkola quarry, Finland

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SLIDE 15

… slightly higher asphalt volumes

Volum es of asphalt sold, thousands of tons

2015-07-17 NCC AB 15

1 930 1 985 Q2 2014 Q2 2015

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SLIDE 16

Asphalt case in Norway

The Norwegian Competition Authority imposed a fine

  • f NOK 140 million on NCC for unlawful cooperation

in Trøndelag from 2005 until 2008 In 2014, the District Court in Norway reduced the fine to NOK 40 million The Court of Appeal in Norway decided to raise the fine imposed on NCC in the asphalt case from NOK 40 million to NOK 150 million NCC has earlier made a provision based on Norwegian case law NCC has until mid-September to appeal the judgment to the Supreme Court in Norway

2015-07-17 NCC AB 16

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SLIDE 17

Trends in residential markets

2015-07-17 NCC AB 17

Private customers Favorable market in Sweden and Germany Stable demand in St. Petersburg Challenging market in Finland Local variation in Norway Good demand in Copenhagen Investor markets Strong demand for investor packages in Germany, Sweden and Finland

Provinzialstrasse, Ahrstrasse, Niederkassel, Germany

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SLIDE 18

294 195 Q2 2014 Q2 2015 Denmark Norway

Higher sales to private customers

  • No. of housing units sold

2015-07-17 NCC AB 18

1,472 1,469 Investor packages

  • St. Petersburg

Baltic Countries Germany Finland Sweden

Metropolitan, Uppsala

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SLIDE 19

High sales rate

2015-07-17 NCC AB 19

Hattingen, Gartenkamp, Germany

Number of housing units For private customers For investors Total

  • Jun. 31,

2015

  • Jun. 31,

2014

  • Jun. 31,

2015

  • Jun. 31,

2014

  • Jun. 31,

2015

  • Jun. 31,

2014 Ongoing production 6,538 6,014 1,901 1,600 8,439 7,614 Sales rate, % 70 54 93 100 75 64 Sales including bookings, % 78 62 93 100 81 70 Completion rate, % 53 50 72 50 57 50

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SLIDE 20

294 326 Q2 2014 Q2 2015 1,403 1,568

Main starts in Sweden

  • No. of housing starts

2015-07-17 NCC AB 20

Årstaliden, Stockholm

Investor packages

  • St. Petersburg

Baltic Countries Germany Finland Denmark Norway Sweden

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SLIDE 21

2015-07-17 NCC AB 21

Some of the started housing projects in Q2

Grand Central, Södertälje, Sweden 42 units Brahenportti, Turku, Finland, 38 units Götelstraße, Berlin, Germany 18 units Strandtorvet, Copenhagen, Denmark 25 units

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SLIDE 22

2015-07-17 NCC AB 22

More units to be completed 2015: 3,539 (2,602)

Estim ated com pletion

200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 Q3 2015 Q4 Q1 2016 Q2 Q3 2016 Q4 2016 Later Investor packages Sweden Norway Denmark Finland Germany Baltic countries

  • St. Petersburg

Portion sold

  • No. of housing units

106 sold and completed housing units, to be recognized

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SLIDE 23

2015-07-17 NCC AB 23

Housing portfolio

Housing for private custom ers, ongoing production June 30, 2015 (Dec. 31 2014)

47% (41) 6% (7) 11% (11) 1% (1) 19% (20) 11% (12) 5% (8) Sweden Finland

  • St. Petersburg

Baltic Countries Germany Denmark Norway

Number of housing units Estimated value

32% (29) 7% (8) 36% (36) 2% (2) 16% (17) 5% (4) 2% (4) Sweden Finland

  • St. Petersburg

Baltic Countries Germany Denmark Norway

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SLIDE 24

Trends in Nordic property market

2015-07-17 NCC AB 24

Investor market High interest in the Nordic market Finland

  • Cautious investors

Rental market Strong demand in Sweden Stable in Denmark Weakening in Norway Weak demand in Finland

Frederiks Plads, Aarhus, Denmark

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SLIDE 25

2015-07-17 NCC AB 25

Lielathikeskus Retail Cente, Tampere

50 000 100 000 150 000 200 000 250 000 300 000 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2 Leasable area beginning of quarter Leased in quarter Previous leased area

Good lease in the quarter – 23,900 sqm

Leased floor space, sqm

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SLIDE 26

2015-07-17 NCC AB 26

Sweden – a large part of the portfolio

Leasable space, sqm , in ongoing or com pleted projects not recognized in profit

50 000 100 000 150 000 200 000 250 000 300 000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Sweden Norway Denmark Finland 14

  • No. of projects

22 25 17 24 16 17 17 16 15

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SLIDE 27

2015-07-17 NCC AB 27

NCC takes the next step in the development

  • f Mölndal’s new city center
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SLIDE 28

2015-07-17 NCC AB 28

Ann-Sofie Danielsson

Chief Financial Officer

Hürth-Stotzheim, Köln, Gemany

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SLIDE 29

545 512 526 677 649 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2

Q2 2015 in brief

2015-07-17 NCC AB 29

Order backlog on a high level Increasing net sales

Operating profit, SEK M

Rådhuset, Kristianstad

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SLIDE 30

2015-07-17 NCC AB 30

Income statement

SEK M Apr.-Jun. 2015 Apr.-Jun. 2014

  • Jul. 14-
  • Jun. 15

Jan.-Dec. 2014 Net sales 14,152 13,479 58,916 56,867 Gross profit 1,493 1,460 5,776 5,691 Selling and administrative expenses

  • 845
  • 787
  • 3,228
  • 3,117

Cost ratio Other 6.0% 2 5.8% 4 5.5% 30 5.5% 31 Operating profit/loss 649 677 2,578 2,604 Financial items

  • 108
  • 102
  • 394
  • 370

Profit after financial items 541 576 2,185 2,234 Tax

  • 105
  • 125
  • 378
  • 396

Tax rate 19.4% 21.7% 17.3% 17.7% Profit for the period 436 451 1,806 1,838

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SLIDE 31

SEK M Apr.-Jun. 2015 Apr.-Jun. 2014

  • Jul. 14-
  • Jun. 15

Jan.-Dec. 2014 NCC Construction Sweden 168 146 595 640 NCC Construction Denmark 76 65 305 281 NCC Construction Finland 35 37 96 111 NCC Construction Norway 11 24 158 146 NCC Roads 259 255 453 459 NCC Housing 110 159 924 949 NCC Property Development 53 40 159 169 Other and eliminations

  • 63
  • 49
  • 214
  • 151

Operating profit/loss 649 677 2,578 2,604

2015-07-17 NCC AB 31

Operating profit/ loss per business area

Jan.-Jun. 2015 Jan.-Jun. 2014 NCC HQ and International Projects

  • 56
  • 54

Internal gains

  • 16
  • 13

Group adjustments 10 19 Total

  • 63
  • 49
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SLIDE 32

1 2 3 4 5 100 200 300 400 500 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2

2015-07-17 NCC AB 32

NCC Construction

SEK M % Operating profit Operating margin SEK M Orders received Net sales

  • Higher net sales

10,184 MSEK (9,369)

  • Higher operating profit

290 MSEK (272)

  • Operating margin
  • n the same level

2.8% (2.9%)

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SLIDE 33

600 1 200 1 800 2 400 3 000 3 600 4 200 4 800 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2

NCC Roads

2015-07-17 NCC AB 33

  • 60
  • 40
  • 20

20 40 60

  • 600
  • 400
  • 200

200 400 600 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 SEK M Operating profit/loss Operating margin SEK M Net sales %

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SLIDE 34

1 000 2 000 3 000 4 000 5 000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Net sales

NCC Housing

2015-07-17 NCC AB 34

3 6 9 12 15 18 100 200 300 400 500 600 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2

Lindeallen Hilleröd, Denmark

SEK M SEK M Operating profit Operating margin %

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SLIDE 35

2015-07-17 NCC AB 35

Number of housing units Apr.-Jun. 2015 Apr.-Jun. 2014 Sweden 151 222 Denmark 16 125 Finland 184 74 Baltic countries 58 45

  • St. Petersburg

83 121 Norway 47 36 Germany 182 134 Total, private customers 721 757 Investor packages 131 40 Total 852 797

Zwengenberger, Strasse, Haan, Germany

Fewer units profit recognized in Sweden and Denmark

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SLIDE 36

NCC Property Development

2015-07-17 NCC AB 36

100 200 300 400 500 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 500 1 000 1 500 2 000 2 500 3 000 3 500 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2

Hyllie, Malmö

Net sales SEK M SEK M Operating profit/loss

Hyllie, Malmö

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SLIDE 37

Balance sheet

SEK BN

2015-07-17 NCC AB 37

10,7 10,6 8,1 7,8 14,5 14,2 5,1 5,3 1,9 1,8

  • Jun. 30

2014

  • Jun. 30

2015 Goodwill Property projects Housing projects Accounts receivable and receivable from property sales Other assets 40.3 39.7

Rådhuset, Kristianstad

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SLIDE 38

Cash flow

SEK M Apr.-Jun. 2015 Apr.-Jun. 2014

  • Jul. 14-
  • Jun. 15

Jan.-Dec. 2014 From operating activities 471 215 2,733 2,273 From property projects

  • 229
  • 167
  • 236

145 From housing projects

  • 574
  • 339
  • 429
  • 761

Other working capital

  • 492
  • 756
  • 565
  • 313

Investing activities

  • 255
  • 219
  • 780
  • 771

Cash flow before financing

  • 1,079
  • 1,267

723 574

2015-07-17 NCC AB 38

Mimer, Stockholm

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SLIDE 39

2015-07-17 NCC AB 39

Net indebtedness

Net indebtedness excl. tenant housing and housing associations, SEK M 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8 2,0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Net indebtedness, incl. tenant housing and housing associations, SEK M Debt/equity ratio, times

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SLIDE 40

2015-07-17 NCC AB 40

Net indebtedness

Net indebtedness excl. tenant housing and housing associations, SEK M 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8 2,0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Net indebtedness, incl. tenant housing and housing associations, SEK M Debt/equity ratio, times Pension liability, IAS 19

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SLIDE 41

2015-07-17 NCC AB 41

Kongens Gate, Narvik, Norway Hyllie, Malmö

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SLIDE 42

Summary Q2 2015

2015-07-17 NCC AB 42

Increasing net sales Lower result Orders received on a good level Order backlog on high level Good foundation for the second half

  • f 2015

Mölndal Galleria Bertta, Finland

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SLIDE 43
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SLIDE 44

2015-07-17 NCC AB 44

Contact information

IR Manager Johan Bergman Tel: +46 (0)8-585 523 53, +46 (0)70-354 80 35 johan.bergman@ncc.se Chief Financial Officer Ann-Sofie Danielsson Tel: +46 (0)8-585 517 17, +46 (0)70-674 07 20 ann-sofie.danielsson@ncc.se