Q1 2020 Presentation 1 2020-04-28 Tomas Carlsson CEO 2 - - PowerPoint PPT Presentation

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Q1 2020 Presentation

2020-04-28

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Tomas Carlsson

CEO

2020-04-28

2020-04-28 3

• Good orders received
• Strong cash flow with 1 bn SEK from operating activities
• Earnings up from last year
• Seasonally low activity

Strong cashflow and continued improvements

2020-04-28 4

• To date no material negative impact on the group
• High activity in all projects due to effective workarounds of

local challenges

• Limited impact from

‒ Travel restrictions cross-borders and in-country. Some initial problems in Norway ‒ Supply chain problems and delays

• Sick leave on manageable levels

NCC and the coronavirus

2020-04-28 5

Strong orders received

Contributions from all business areas

17,521 13,834 12,738 17,750 15,501 16,070 12,769 13,708 15,458

5,000 10,000 15,000 20,000 25,000 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 SEK M

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Order backlog strong

All BAs building order backlog

58,851 58,741 56,587 56,837 61,370 63,027 61,658 57,800 62,333 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020

2020-04-28

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Net Sales on par with last year

SEK M

2020-04-28

10,894 14,349 14,269 17,832 11,434 14,610 13,951 18,239 11,766

5,000 10,000 15,000 20,000 25,000 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020

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Earnings up in seasonally low quarter

PD but also Building Nordics and Infrastructure contributing

2020-04-28

• 364
• 352
• 69
• 500
• 400
• 300
• 200
• 100

100 200 300 400 500 Q1 2018 Q1 2019 Q1 2020

Operating margin

• 3.1%
• 0.6%

Q1 2020

SEK M

Q1 2019

• 301
• 238
• 201
• 400
• 300
• 200
• 100

100 200 300 400 Q1 2018 Q1 2019 Q1 2020

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Stronger underlying earnings

SEK M 16

• 20

323

• 400
• 300
• 200
• 100

100 200 300 400 Q1 2018 Q1 2019 Q1 2020

BA Property Development

2020-04-28

SEK M

BA Infrastructure, Building Sweden, Building Nordics & Industry

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Maintained low accident frequency level

2020-04-28

407 315 300 241 202 246 204 257 176 172 14.4 10.9 10.6 8.1 7.2 8.8 7.5 9.5 7.0 7.0 2 4 6 8 10 12 14 16

100 200 300 400 500 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020

LTIF Group 1 Day R12 Q1 2020

Number of accidents LTIF 1 Day

R12

2020-04-28 11

• Divestment taking longer than expected
• Independent legal structure in place
• Turnaround activities continues
• Prudent tendering

Road Services

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Susanne Lithander

CFO

2020-04-28

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NCC Infrastructure

Fifth quarter with improved earnings compared to previous year

Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 Orders received 4,415 4,840 16,176 16,601 Order backlog 20,775 22,460 20,775 20,389 Net sales 3,791 3,649 17,567 17,425 EBIT 39 8 243 212 EBIT margin, % 1.0 0.2 1.4 1.2 NCC Road Services Orders received 499 849 1,267 1,617 Order backlog 2,831 4,013 2,831 2,816 Net sales 427 662 2,389 2,624 EBIT

• 14
• 5

11 20

2020-04-28

Sweden 71% (74) Denmark 8% (7) Norway 21% (19)

Net Sales

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NCC Building Sweden

Earnings stable – two large healthcare projects in orders received

Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 Orders received 4,458 2,579 14,620 12,741 Order backlog 17,630 17,619 17,630 16,561 Net sales 3,384 3,669 14,567 14,851 EBIT 87 110 341 364 EBIT margin, % 2.6 3.0 2.3 2.5

2020-04-28

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NCC Building Nordics

Improved earnings and a strong order backlog

Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 Orders received 3,247 4,187 15,141 16,080 Order backlog 16,916 13,132 16,916 15,807 Net sales 2,856 2,567 12,057 11,769 EBIT 50 34 247 231 EBIT margin, % 1.7 1.3 2.1 2.0

2020-04-28

Denmark 33% (34) Norway 14% (16) Finland 53% (50)

Net Sales

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NCC Industry

Seasonally low activity – stable compared to last year

Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 Orders received 3,412 3,372 12,893 12,852 Order backlog 5,098 5,188 5,098 2,967 Net sales 1,314 1,265 13,020 12,971 EBIT

• 362
• 385

534 511 Operating margin %

• 27.6
• 30.5

4.1 3.9 ROCE % 9.3 9.0

2020-04-28

Sweden 60 (62)% Denmar k 23 (24)% Norway 13 (12)% Finland 4 (2)%

Net Sales

2020-04-28 17

NCC Industry: Stone and asphalt volumes

Both stone material and asphalt volumes up compared to previous years

5,306 9,083 7,347 7,539 5,216 7,999 7,880 7,244 6,078

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020

Stone material sold, thousands of tons

105 2,063 2,460 1,788 166 1,904 2,518 1,512 176

500 1,000 1,500 2,000 2,500 3,000

Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020

Asphalt sold, thousands of tons

2020-04-28 18

NCC Property Development

Divestment of K12 in Sweden

Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 Net sales 1,577 411 4,222 3,056 Operating profit/loss 323

• 20

655 313 Capital employed 4,624 4,746 4,624 4,935 EBIT margin % 20.5

• 4.8

15.5 10.2 ROCE % 12.7 6.2

2020-01-30 NCC AB 19

One new project started in Q1

HQ for Fiskars in Finland – project ”Next”

50,000 100,000 150,000 200,000 250,000 300,000 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Sweden Norway Denmark Finland

15 15 19 17 17 21 18 18 21

• No. of projects

Lettable space, sqm

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Letting on normal levels

Letting agreements signed also post-corona in start of Q2

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%

50,000 100,000 150,000 200,000 250,000 300,000 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020

Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter (% of available unlet area)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020

2020-04-28 21

Letting and completion status in the property portfolio

Letting ratio Completion ratio

22

Earnings

Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019

Earnings in segments (all BAs) 122

• 258

2,030 1,651

NCC HQ and other group adjustments

• 45
• 54
• 195
• 204

Internal gains 1

• 11
• 12
• 24

Other Group Adjustments

• 147
• 29
• 243
• 126

Other & Eliminations total

• 191
• 94
• 450
• 355

EBIT

• 69
• 352

1,580 1,296 Financial items

• 21
• 18
• 116
• 112

EBT

• 90
• 370

1,464 1,184 Tax 6 57

• 359
• 309

Profit for the period

• 84
• 314

1,105 875

2020-04-28

Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020

• 3
• 2
• 1

1 2 3 4

Cash flow before financing

Strong cashflow

Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 From operating activities 34

• 216

3,023 2,774 From property projects 296

• 209
• 660
• 1,165

Other working capital 673 478 800 605 Investing activities 15

• 194
• 493
• 701

Cash flow before financing 1,018

• 140

2,670 1,512 SEK Bn R12

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• 2,304
• 3,195
• 1,875
• 2,153
• 665

874

• 6,000
• 5,000
• 4,000
• 3,000
• 2,000
• 1,000

1,000 2,000 2019 Q1 2020 Q1 Corporate net debt Leasing liabilities (incl IFRS 16) Pension liability

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Net debt per March 31

N/A R12

Net debt* / EBITDA *Corporate net debt excluding pension liabilities and leasing liabilities according to IFRS16 Leasing **Corporate net debt/EBITDA is

• 0.39

2020-04-28

**

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Tomas Carlsson

CEO

2020-04-28

2020-04-28 26

• To date no material impact on group level
• Future impact difficult to assess
• Construction industry trails GDP development with some mitigation

NCC and corona

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• Good orders received
• Strong cash flow with 1 bn SEK from operating activities
• Earnings up from last year
• Seasonally low activity

Strong cashflow and continued improvements

2020-04-28 28

• Good orders received
• Strong cash flow with 1 bn SEK from operating activities
• Earnings up from last year
• Seasonally low activity
• Improvement process showing results throughout the business
• Corona impact difficult to assess

NCC: On the right track in Q1

29 2020-04-28