interim report - ncc · interim report january-march, 2015 peter wågström president and ceo...
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2015-04-29 NCC AB 1Rådhuset, Kristianstad
Interim reportJanuary-March, 2015
Peter WågströmPresident and CEOAnn-Sofie Danielsson Chief Financial Officer
Q1 2015 in brief
2015-04-29 NCC AB 2
Orders receivedSEK 13.4 BN (13.2)
Order backlogSEK 56.1 BN (50.8)
Skandionkliniken, Uppsala
Net salesSEK 11.2 BN (9.8)
Profit after financial itemsSEK -254 M (-239)
Trends in Nordic construction market
2015-04-29 NCC AB 3
SwedenGrowth in all segments
NorwayFavorable trend in infrastructure
DenmarkGrowth in Copenhagen and Aarhus – residential and other buildings, energy renovation
FinlandChallenging market
Outlook 2015Nordic market growth – stronger in Sweden and Norway, challenging in Finland
Bertta, Finland
2015-04-29 NCC AB 4
Orders receivedNCC’s Construction units
0
5
10
15
20
25
30
35
40
45
50
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Orders received, quarter Order backlog Orders received R12 Net sales, R12SEK BN
Increased share of large projectsNCC’s Construction units
10%
30%
18%
12%
11%
8%
11%
29%
19%
16%
8%
11%
6%
11%
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
Q12014
Q2 Q3 Q4 Q12015
0%10%20%30%40%50%60%70%80%90%
100%
Project size, orders receivedTotal SEK 8.3 BN
Project size, order backlogTotal SEK 37.3 BN
2015-04-29 NCC AB 5
Q1 2014Q1 2015
<5 5-10 10-25 25-50
50-100
100-300
>300
SEK M
2015-04-29 NCC AB 6
Favorable orders received in Sweden and DenmarkOrders received, NCC’s Construction units
0
1,000
2,000
3,000
4,000
5,000
6,000
Sweden Denmark Finland Norway
Q1 2014 Q1 2015SEK M
2015-04-29 NCC AB 7
Increased orders in civil engineering and residential Orders received, NCC’s Construction units
0
1,000
2,000
3,000
4,000
Civil engineering Residential Other buildings
Q1 2014 Q1 2015SEK M
2015-04-29 NCC AB 8
A selection of construction projects in Q1Tingstad Junction, Gothenburg, Sweden, SEK 633 M
Office building, Abels Hus, Trondheim, Norway,SEK 295 million
Aurora school, Espoo Finland,SEK 125 M
Energy renovation of Hørgården, a nursing home outside Copenhagen, Denmark, SEK 385 million
2015-04-29 NCC AB 9
Hålogaland Bridge
2015-04-29 NCC AB 10
Hålogaland Bridge
Trends in stone material, asphalt and road serviceThe Nordic market
2015-04-29 NCC AB 11
Stone materialFavorable demand
AsphaltStable demand
Road serviceStable demand
Outlook 2015Higher demand for stone materialPotential for growth in asphalt
Rydbokrossen, Stockholm
Higher volume of stone materialVolumes of stone material sold, thousands of tons
2015-04-29 NCC AB 12
Jan.-Mar.2014
Jan.-Mar.2015
4,6374,985
…slightly lower asphaltvolumesVolumes of asphalt sold, thousands of tons
2015-04-29 NCC AB 13
Vestfynske Motorvej, Danmark
Jan.-Mar.2014
Jan.-Mar.2015
133
118
Trends in residential markets
2015-04-29 NCC AB 14
Private customersFavorable market in Sweden and GermanyStable demand in St. PetersburgChallenging market in Finland
Investor marketsStrong demand for investor packages in Germany, Sweden and Finland
Outlook 2015Good demand – especially in Sweden and GermanyWeak demand in Finland
Dickensweg, Berlin, Germany
138127
Q12014
Q12015
DenmarkNorway
Higher salesNo. of housing units sold
2015-04-29 NCC AB 15
1,1421,053 Investor packages
St. PetersburgBaltic Countries
Germany
Finland
Sweden
Krøyers Plads, Copenhagen
Ongoing production on a high level, good sales rate
2015-04-29 NCC AB 16
Rungwisch, Hamburg, Germany
Number of housing units
For private customers For investors Total
Mar. 31,2015
Mar. 31, 2014
Mar. 31,2015
Mar. 31,2014
Mar. 31, 2015
Mar. 31, 2014
Ongoing production 6,171 5,589 1,734 1,618 7,905 7,207
Sales rate, % 65 51 100 100 73 62
Sales including bookings, % 76 63 100 100 82 71
Completion rate, % 51 50 72 50 56 50
111
127
Q12014
Q12015
715
1,190
Main starts in Sweden and GermanyNo. of housing starts
2015-04-29 NCC AB 17
Sjöfallet, Stockholm
Investor packagesSt. PetersburgBaltic CountriesGermanyFinlandDenmarkNorwaySweden
2015-04-29 NCC AB 18
Some of the started housing projects in Q1
Gröna Lund 3, St. Petersburg, Russia96 units
Hohde, Helsinki, Finland, 35 units
Wohnen am Campus, Berlin, Germany84 units
Metropolitan, Uppsala, Sweden69 units
2015-04-29 NCC AB 19
More units to be completed 2015: 4,187 (3,330)Estimated completion
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Q22015
Q3 Q4 Q12016
Q22016
Q32016
Later
Investor packagesSwedenNorwayDenmarkFinlandGermanyBaltic countriesSt. PetersburgPortion sold
No. of housing units
84 sold housing units, not recognized in Q1 profit
2015-04-29 NCC AB 20
Housing portfolio Housing for private customers, ongoing productionMarch 31, 2015 (Dec. 31 2014)
30% (30)
9% (8)
36% (36)
2% (2)
17% (17)
3% (4)
3% (4)
Sweden
Finland
St. Petersburg
Baltic Countries
Germany
Denmark
Norway
44% (42)
7% (7)
12% (10)
1% (1)
20% (20)
10% (12)
7% (8)
Sweden
Finland
St. Petersburg
Baltic Countries
Germany
Denmark
Norway
Number of housing units Estimated value
Trends in Nordic property market
2015-04-29 NCC AB 21
Investor marketIncreasing interest in the Nordic marketFinland • Cautious investors
Rental marketGood demand in SwedenStable in Copenhagen and OsloWeaker demand in Finland
Outlook 2015Stable interest for Nordic properties
Logistics facility, Gustavsberg
NCC sells office project in Oslo, Norway
2015-04-29 NCC AB 22
Office project Lysaker PolarisSold to Storebrand Eiendom ASUnderlying property value SEK 820 million Profit recognition Q3 2015
2015-04-29 NCC AB 23
10,900 sqm leased in the quarterLeased floor space, m2
Lielathikeskus Retail Cente, Tampere
0
50,000
100,000
150,000
200,000
250,000
300,000
2012Q1
Q2 Q3 Q4 2013Q1
Q2 Q3 Q4 2014Q1
Q2 Q3 Q4 2015Q1
Leasable area beginning of quarter
Leased in quarter
Previous leased area
2015-04-29 NCC AB 24
Sweden – a large part of the portfolioLeasable space, m2, in ongoing or completed projects not recognized in profit
0
50,000
100,000
150,000
200,000
250,000
300,000
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Sweden
NorwayDenmarkFinland
14No. of projects
22
25
17
24
1617
1716
2015-04-29 NCC AB 25
Ann-Sofie Danielsson Chief Financial Officer
Rotebro bridge, Stockholm
2,2542,017
2,519 2,679 2,604 2,604
2010 2011 2012 2013 2014 2015R12
Q1 2015 in brief
2015-04-29 NCC AB 26
Order backlog on a high levelIncreasing net salesImproved operating profit in seveal business areas
Operating profit, SEK M
Rådhuset, Kristianstad
2015-04-29 NCC AB 27
Income statement
SEK MJan.-Mar.
2015Jan.-Mar.
2014Apr. 14-Mar. 15
Jan.-Dec.2014
Net sales 11,208 9,832 58,243 56,867
Gross profit 648 594 5,745 5,691
Selling and administrative expenses -808 -755 -3,170 -3,117Cost ratioOther
7.2%0
7.7%-1
5.4%29
5.5%31
Operating profit/loss -161 -162 2,604 2,604Financial items -94 -77 -387 -370
Profit/loss after financial items -254 -239 2,218 2,234Tax on profit for the period 51 52 -398 -396Tax rate 20.1% 21.8% 17.9% 17.7%Profit/loss for the period -204 -187 1,821 1,838
SEK MJan.-Mar.
2015Jan.-Mar.
2014Apr. 14-Mar. 15
Jan.-Dec.2014
NCC Construction Sweden 82 49 673 640NCC Construction Denmark 64 50 295 281NCC Construction Finland 7 20 98 111NCC Construction Norway 29 4 171 146NCC Roads -399 -389 449 459NCC Housing 77 53 972 949NCC Property Development 28 49 148 169Other and eliminations -48 2 -201 -151Operating profit/loss -161 -162 2,604 2,604
2015-04-29 NCC AB 28
Operating profit/loss per business area
Jan.-Mar. 2015
Jan.-Mar. 2014
NCC HQ and International Projects
-46 -45
Internal gains -11 -1
Group adjustments 10 48
Total -48 2
0
1
2
3
4
5
0
100
200
300
400
500
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
02,0004,0006,0008,000
10,00012,00014,00016,000
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
2015-04-29 NCC AB 29
NCC Construction units
SEK M %Operating profit Operating margin
SEK M Orders received Net sales
• Higher net sales
• Operating margin improved
• Good margins in Denmark
0600
1,2001,8002,4003,0003,6004,2004,800
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
NCC Roads
2015-04-29 NCC AB 30
-60
-40
-20
0
20
40
60
-600
-400
-200
0
200
400
600
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
SEK M Operating profit/loss Operating margin
SEK M Net sales
%
0
1,000
2,000
3,000
4,000
5,000
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Net sales
NCC Housing
2015-04-29 NCC AB 31
0
3
6
9
12
15
18
0
100
200
300
400
500
600
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015 Design Quattro
SEK M
SEK M Operating profit Operating margin %
2015-04-29 NCC AB 32
Number of housing units Jan.-Mar.2015
Jan.-Mar.2014
Sweden 184 192
Denmark 48 14
Finland 44 53
Baltic countries 15 40
St. Petersburg 56 258
Norway 22 12
Germany 102 60
Total, private customers 471 629
Investor packages 197 138
Total 668 767Havsparken på Limhamns Läge, Malmö
Higher average price for profit recognition
NCC Property Development
2015-04-29 NCC AB 33
0
100
200
300
400
500
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
0500
1,0001,5002,0002,5003,0003,500
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Portland Towers, Copenhagen
Net salesSEK M
SEK M Operating profit/loss
Balance sheetSEK BN
2015-04-29 NCC AB 34
11.2 10.6
5.9 6.3
13.6 13.7
5.2 5.2
1.8 1.9
Mar. 312014
Mar. 312015
Goodwill
Property projects
Housing projects
Accounts receivable andreceivable from property salesOther assets
37.7 37.7
Bertta, Finland
Cash flow
SEK MJan.-Mar.
2015Jan.-Mar.
2014Apr. 14-Mar. 15
Jan.-Dec.2014
From operating activities -128 -333 2,477 2,273From property projects -130 166 -150 145From housing projects -441 -984 -218 -761Other working capital -129 387 -829 -313Investing activities -170 -197 -744 -771Cash flow before financing -998 -960 536 574
2015-04-29 NCC AB 35Krøyers Plads, Copenhagen
2015-04-29 NCC AB 36
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
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Net indebtedness, tenant housing and housing associations, SEK M
Debt/equity ratio, times
2015-04-29 NCC AB 37Kongens Gate, Narvik, Norway
Summary Q1 2015
2015-04-29 NCC AB 38
Improved net sales and marginin Construction Improved earnings and sales in HousingStrong order backlogFavorable conditions on several markets
Urban Escape, Brunkebergstorg, Stockholm
2015-04-29 NCC AB 40
Contact information
IR Manager Johan BergmanTel: +46 (0)8-585 523 53, +46 (0)70-354 80 [email protected]
Chief Financial Officer Ann-Sofie DanielssonTel: +46 (0)8-585 517 17, +46 (0)70-674 07 [email protected]