Six-month report January - June 2009 Olle Ehrln President and CEO - - PowerPoint PPT Presentation

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Six-month report January - June 2009 Olle Ehrln President and CEO - - PowerPoint PPT Presentation

Sep 08, 2023 553 likes •893 views

Six-month report January - June 2009 Olle Ehrln President and CEO Ann-Sofie Danielsson Chief Financial Officer First six months in brief Results and market Orders received and order backlog Housing sales and construction starts Earnings

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Six-month report January - June 2009

Olle Ehrlén

President and CEO

Ann-Sofie Danielsson

Chief Financial Officer

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NCC AB 2009-08-19 2 Hamnhuset,Göteborg

First six months in brief Results and market Orders received and order backlog Housing sales and construction starts Earnings and comments per business area Financial position Summary

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NCC AB 2009-08-19 3

First six months in brief

  • Orders received down 32 percent
  • Profit after financial items

SEK 377 M (1,000)

  • Improved cash flow compared with

the year-earlier period

  • Operations and costs adapted to

market conditions

Kungsbron, Stockholm

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SLIDE 4

NCC AB 2009-08-19 4

  • 400
  • 200

200 400 600 800 1 000 1 200 Q1 Q2 Q3 Q4

Earnings per quarter

2005 2006 2007 SEK M Earnings after financial items 2008

Agro etanol, Norrköping

2009

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SLIDE 5

NCC AB 2009-08-19 5 5

Operating profit/loss per business area

SEK M Apr-Jun 2009 Apr-Jun 2008 Jan-Jun 2009 Jan-Jun 2008 NCC Construction Sweden 212 279 434 477 NCC Construction Denmark 24 26 32 53 NCC Construction Finland 34 88 106 166 NCC Construction Norway 27 53 72 67 NCC Housing 3 109

  • 172

149 NCC Property Development 134 122 168 303 NCC Roads 367 305

  • 45

16 Other and eliminations 57

  • 14

29

  • 93

Operating profit 858 968 623 1,138 Net financial items

  • 129
  • 86
  • 247
  • 138

Profit after financial items 729 883 377 1,000

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SLIDE 6

NCC AB 2009-08-19 6

Gloomy market outlook 2009 and 2010

Construction market

  • Lower demand for housing, office

buildings and other buildings

  • Fewer inquiries from private

customers

  • Public sector projects not as

severely affected Housing market

  • Weak market and lower prices
  • Market stabilized during the

second quarter

  • Increased interest in construction
  • f rental apartments

Civil-engineering market

  • Increased share

for infrastructure

  • Reduced demand for

development work Commercial properties

  • Rising vacancies and falling rent

levels in rental market

  • Property market characterized by

uncertainty with few completed transactions

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NCC AB 2009-08-19 7 7

Declining volumes

10 20 30 40 50 60 70

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

SEK BN

2004 2005

Orders received Order backlog

2006 2007 2008 2009

Orders received rolling 12 months

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SLIDE 8

NCC AB 2009-08-19 8

10 20 30 40 50 60 70

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

8

Declining volumes

SEK BN

2004 2005

Orders received Order backlog Orders received rolling 12 months

2006 2007 2008 2009

Sales rolling 12 months

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NCC AB 2009-08-19 9

Adaptations June 08-June 09

  • Streamlining and reorganizations
  • Approx. 2,900 employees laid off
  • Expenses adapted to volume decline
  • Lower purchasing costs
  • Reduced tied-up capital
  • Improved cash flow reduced

net indebtedness

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SLIDE 10

NCC AB 2009-08-19 10 10

Continued weak demand in second quarter

Orders received, SEK M Apr-Jun 2009 Apr-Jun 2008 Jan-Jun 2009 Jan-Jun 2008 NCC Construction Sweden 5,107 7,337 8,874 13,936 NCC Construction Denmark 800 765 1,355 1,878 NCC Construction Finland 1,344 2,175 2,143 3,210 NCC Construction Norway 1,077 1,600 1,723 2,235 NCC Housing 519 2,082 1,236 3,653 NCC Roads 3,404 4,003 5,305 5,828 Other and eliminations

  • 320
  • 554
  • 538
  • 1,339

Orders received 11,931 17,408 20,097 29,401 Proprietary orders Housing development Property development 422 40 2,031 733 778 197 3,279 1,097

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NCC AB 2009-08-19 11

Sales of housing units and housing starts

200 400 600 800 1 000 1 200 1 400 1 600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Number

Housing units sold Housing starts

2004 2005 2007 2006 2008 2009

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NCC AB 2009-08-19 12

Housing starts

Started during the period Number of housing units Apr-Jun 2009 Apr-Jun 2008 Jan-Jun 2009 Jan-Jun 2008 Sweden 127 186 127 246 Denmark 16 22 Finland 38 304 38 500 Baltic countries

  • 64
  • 33

Norway 15 30 Germany 82 324 126 445 Total 262 766 321 1,180

Brandholmen, Nyköping Brandholmen, Nyköping

Rental apartments sold to investors Apr-Jun 2009 Sollentuna, Sweden 142

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NCC AB 2009-08-19 13

100 200 300 400 500 600 700 800 900

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Number

Completed housing for sale

2004 2005 2007 2006 2008 2009

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SLIDE 14

NCC AB 2009-08-19 14

Reduced risk in ongoing housing projects

June 30, 2008 June 30, 2009

Portion sold Portion unsold 5,891 units 2,982 units 49% 51% 68% 32%

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NCC AB 2009-08-19 15

Proprietary housing projects

Sold during the period Completed but unsold at end of period Number of housing units Apr-Jun 2009 Apr-Jun 2008 June 30, 2009 March 31, 2009 Sweden 519 282 71 109 Denmark 41 6 136 177 Finland 324 288 198 308 Baltic countries 48 20 161 127 Norway 21 5 1 10 Germany 156 363 53 49 Total 1,109 964 620 780

Eriksberg, Göteborg

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NCC AB 2009-08-19 16

NCC Construction Sweden

200 400 600 800 1000 2 4 6 8 10

SEK M % Earnings Operating margin

SEK M Apr-Jun Jan-Jun 2009 2008 2009 2008 Orders received 5,107 7,337 8,874 13,936 Net sales 5,806 6,330 10,888 11,558 Operating profit 212 279 434 477 Operating margin 3.7% 4.4% 4.0% 4.1%

E4 Enånger - Hudiksvall

Q1 2009 2008 2007 Jan-Dec Q1 Q2 Q3 Q4 Q2

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NCC AB 2009-08-19 17

NCC Construction Denmark

  • 30
  • 20
  • 10

10 20 30 40 50

  • 3
  • 2
  • 1

1 2 3 4 5

SEK M % Earnings Operating margin

SEK M Apr-Jun Jan-Jun 2009 2008 2009 2008 Orders received 800 765 1,355 1,878 Net sales 828 1,068 1,694 1,937 Operating profit 24 26 32 53 Operating margin 2.8% 2.4% 1.9% 2.8%

2008 2007 Jan-Dec Q1 Q2 Q3 Q4 Q1 2009

Vallensbaek Company House, Danmark

Q2

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SLIDE 18

NCC AB 2009-08-19 18

NCC Construction Finland

40 80 120 160 200 240 280 1 2 3 4 5 6 7

SEK M % Earnings Operating margin

SEK M Apr-Jun Jan-Jun 2009 2008 2009 2008 Orders received 1,344 2,175 2,143 3,210 Net sales 1,541 1,864 3,087 3,594 Operating profit 34 88 106 166 Operating margin 2.2% 4.7% 3.4% 4.6%

2008 2007 Jan-Dec Q1 Q2 Q3 Q4 Q1 2009

Hyvinkaa, Finland

Q2

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NCC AB 2009-08-19 19

NCC Construction Norway

20 40 60 80 100 120 2 4 6 8 10 12

SEK M % Earnings Operating margin

SEK M Apr-Jun Jan-Jun 2009 2008 2009 2008 Order received 1,077 1,600 1,723 2,235 Net sales 985 1,937 2,184 3,541 Operating profit 27 53 72 67 Operating margin 2.7% 2.7% 3.3% 1.9%

2008 2007 Jan-Dec Q1 Q2 Q3 Q4 Q1 2009

Lysaker Torg, Norge

Q2

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NCC AB 2009-08-19 20

NCC Housing

  • 1200
  • 800
  • 400

400 800 1200

  • 30
  • 20
  • 10

10 20 30

Gäddeholm, Västerås

SEK M % Earnings Operating margin

SEK M Apr-Jun Jan-Jun 2009 2008 2009 2008 Orders received 519 2,082 1,236 3,653 Net sales 2,530 2,763 4,381 4,724 Operating profit/loss 3 109

  • 172

149 Operating margin 0.1% 4.0%

  • 3.9%

3.1%

2008 2007 Jan-Dec Q1 Q2 Q3 Q4 Q1 2009 Q2

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NCC AB 2009-08-19 21

NCC Property Development

SEK M Apr-Jun Jan-Jun 2009 2008 2009 2008 Net sales 898 331 1,428 772 Operating profit 134 122 168 303

K2, Malmö

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NCC AB 2009-08-19 22

NCC Roads

  • 500
  • 250

250 500

  • 50
  • 25

25 50

Riksväg 40, Jönköping

SEK M % Earnings Operating margin

SEK M Apr-Jun Jan-Jun 2009 2008 2009 2008 Net sales 2,939 3,270 4,087 4,513 Operating profit/loss 367 305

  • 45

16 Operating margin 12.5% 9.3%

  • 1.1%

0.4%

2006 2008 2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009

  • Excl. NCC Roads Poland

Q2

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SLIDE 23

Ann-Sofie Danielsson

Chief Financial Officer

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SLIDE 24

NCC AB 2009-08-19 24

NCC Group

SEK M Apr-Jun 2009 Apr-Jun 2008 Jan-Jun 2009 Jan-Jun 2008 Net sales 13,992 15,623 25,057 27,035 Gross income 1,678 1,772 2,228 2,760 Selling and administrative costs

  • 778
  • 813
  • 1,564
  • 1,631

Cost ratio Other 5.6%

  • 42

5.2% 10 6.2%

  • 41

6.0% 9 Operating profit 858 968 623 1,138 Financial items

  • 129
  • 86
  • 247
  • 138

Profit after financial items 729 883 377 1,000 Tax on profit for the period

  • 178
  • 208
  • 87
  • 234

Tax rate 24.5% 23.5% 23.2% 23.4% Profit for the period 551 675 289 765

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NCC AB 2009-08-19 25 25

Operating profit/loss per business area

MSEK Apr-jun 2009 Apr-jun 2008 Jan-jun 2009 Jan-jun 2008 NCC Construction Sweden 212 279 434 477 NCC Construction Denmark 24 26 32 53 NCC Construction Finland 34 88 106 166 NCC Construction Norway 27 53 72 67 NCC Housing 3 109

  • 172

149 NCC Property Development 134 122 168 303 NCC Roads 367 305

  • 45

16 Other and eliminations 57

  • 14

29

  • 93

Operating profit 858 968 623 1,138 Net financial items

  • 129
  • 86
  • 247
  • 138

Profit after financial items 729 883 377 1,000

SEK M Apr-Jun 2009 2008 Internal gains and sales rate eliminations 129

  • 43

Competition-impeding fee

  • 50

Head office and other

  • 22

29 Other and eliminations 57

  • 14
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NCC AB 2009-08-19 26

SEK BN June 30, 2009 June 30, 2008

  • Dec. 31,

2008 Goodwill 1.8 1.7 1.8 Land and buildings 0.7 0.7 0.7 Other fixed assets 3.7 3.4 3.6 Receivables, sold property projects 0.7 1.5 0.8 Inventories 0.7 0.6 0.6 Property projects 3.1 3.0 3.4 Housing projects 9.9 10.2 11.4 Accounts receivables 7.8 9.5 7.8 Other current receivables 2.8 2.1 2.5 Worked-up, non-invoiced revenues 2.5 3.2 1.8 Cash and bank balances 2.4 0.8 1.8 Total assets 36.2 36.7 36.2

Balance sheet

Assets

Västerport, Stockholm

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SLIDE 27

NCC AB 2009-08-19 27

Housing projects

SEK BN June 30, 2009

  • Dec. 31,

2008 Development properties 7.3 7.3 Unsold completed housing 1.5 2.2 Ongoing housing projects with ownership rights 1.1 1.9 Total housing projects 9.9 11.4

Bergsparken, Stockholm

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NCC AB 2009-08-19 28

Cash flow

SEK M Apr-Jun 2009 Apr-Jun 2008 Jan-Jun 2009 Jan-Jun 2008 Profit after financial items 729 883 377 1,000 Adjustments for non-cash items

  • 20
  • 7

241 151 Taxes paid

  • 106
  • 153
  • 218
  • 281

Cash flow before changes in working capital 603 723 399 869 Sales of property projects 700 373 1,134 712 Investments in property projects

  • 322
  • 696
  • 743
  • 1,184

Sales of housing projects 1,427 926 2,068 1,631 Investments in housing projects

  • 665
  • 1,438
  • 749
  • 2,941

Other changes in working capital

  • 821
  • 1,653
  • 2,403
  • 1,714

Cash flow from changes in working capital 318

  • 2,487
  • 694
  • 3,495

Cash flow from operating activities 921

  • 1,764
  • 294
  • 2,626

Sales of land and buildings 6 11 19 10 Increase/decrease in investing activities

  • 181
  • 136
  • 335
  • 394

Cash flow from investing activities

  • 175
  • 125
  • 316
  • 384

Cash flow before financing 746

  • 1,888
  • 610
  • 3,010
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NCC AB 2009-08-19 29

Trend in net indebtedness

SEK M Apr-Jun 2009 Apr-Jun 2008 Jan-Jun 2009 Jan-Jun 2008 Net indebtedness,

  • pening balance
  • 4,608
  • 1,830
  • 3,207
  • 744

Cash flow before financing 746

  • 1,888
  • 610
  • 3,010

Dividend

  • 434
  • 2,277
  • 434
  • 2,277

Other changes in net indebtedness 40 20

  • 5

56 Net indebtedness, closing balance

  • 4,256
  • 5,975
  • 4,256
  • 5,975
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SLIDE 30
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SLIDE 31

NCC AB 2009-08-19 31 NCC AB 2009-05-12 31

Summary

  • Favorable earning in the

second quarter

  • Weak market conditions in

2009 and 2010

  • Adjustment of organization

and costs to lower volumes proceeding as planned

  • Strong cash flow and

healthy financial position

Hamnhuset, Göteborg

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SLIDE 32
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NCC AB 2009-08-19 33 NCC AB 2009-05-12 33

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