Year-end report January 1 December 31, 2017

Transcription

1 Year-end report January 1 December 31, 2017 Håkan Broman Acting CEO Mattias Lundgren CFO

2 My priorities Focus on profitability and safety Control of parts not performing Reverse the cost trend

3 Cost reduction program Annual overhead saving SEK 200 M Support functions mainly Moving support function closer to business operations Full effect 2018

4 Focus on safety Lost Time Injury Frequency* *Work related accidents with one day or more absence from ordinary duties per one million worked hours (rolling 12 months)

5 Tomas Carlsson New CEO Kenneth Nilsson New Head of Business Area NCC Infrastructure

6 Q Orders received Net sales Order backlog Profit after financial items SEK 16.3 BN (16.3) SEK 16.3 BN (16.5) SEK 51.8 BN (47.9) SEK -19 M (630) Skärgårdsstad, Åkersberga

7 January - December 2017 Orders received Net sales Order backlog Profit after financial items SEK 57.0 BN (56.5) SEK 54.6 BN (52.9) SEK 51.8 BN (47.9) SEK 1,150 M (1,341) Pedagogen, Örebro

8 Earnings per share and dividend 2017 SEK % of profit after tax Dividend policy: at least 40% Earnings per share Proposed dividend Design Alfa, Mandelkubben, Örebro

9 Dividend divided into two payments Proposed record dates 4 SEK, April 13, SEK, November 5, 2018 Piloten Folkboende, Örebro

10 Group financial objectives Campus Albano,Stockholm

11 Operating margin 5% 4% Target 4% 3% 2% 2.7% 2.3% 1% 0%

12 Revenue development SEK M 60,000 50,000 40, % (average annual growth 1.4%) Objective: 5% average annual revenue growth (not prioritized at the moment) 30,000 20,000 10,

13 Equity/asset ratio and return on shareholders equity Return on shareholders' equity* Equity/asset ratio 23% 22% 18% 20% Target 20% Revaluation effect pensions SEK 195 M *Return on equity is calculated based on NCC s earnings excluding Bonava

14 Net indebtness excl. pension liability net cash position Times Restriction <2.5 times net indebtedness* / EBITDA * Excl. pension liability

15 Nordic construction market outlook Estimates Nordic contruction growth rate 3 % 2018 New build growth rate in 2018: 3 % Civil engineering growth rate around 5 % strong growth rate in Norway and Sweden Refurbishment growth rate: 2 % Strong growth rate in stone and asphalt 2018: 5 to 6 % Stable market for commercial property

16 Project example Major hospital project in Oulu, Finland Hospital project two new buildings and the first phase of a new main hospital Customer: Joint Municipal Authority of the Health Care District of Northern Ostrobothnia Order value: SEK 705 m

17 Project example The West Link project Contract Korsvägen The West Link tunnel, from Landala, via Korsvägen, Örgryte/Jakobsdal NCC, in consortium out with the German company Wayss & Freytag Ingeniurbau AG Customer: Swedish Transport Administration Order value: SEK 3.8 billion with an approximate stake of 50 percent Picture: Swedish Transport Administration

18 Project example Wind farm in Piteå Extensive infrastructure work for wind farm in Piteå Customer: Markbygden ETT wind farm Order value: SEK 800 million

19 Project starts in Q4 Project Type Location Lettable area, sqm Letting ratio Flintholm Company House II Office Copenhagen, Denmark 9, % Zleep Hotel Hotel Århus, Denmark 3, % Skejby CH Alpha Office Århus, Denmark 6,300 31% Önskebrunnen 4 Logistics Upplands Bro, Sweden 11,500 42% Skejby Company House

20 Tunnels road 44 Uddevalla

21 Video

22 Mattias Lundgren CFO Hylliebadet, Malmö

23 Income statement SEK M Oct.-Dec Oct.-Dec Jan.-Dec Jan.-Dec Net sales 16,318 16,519 54,608 52,934 Gross profit 902 1,487 4,148 4,450 Selling and administrative expenses ,933-2,912 Cost ratio 5.6% 5.0% 5.4% 5.5% Other Operating profit ,242 1,453 Financial items Profit after financial items ,150 1,341 Tax Profit for the period ,009 1,116 Vallensbaek, Copenhagen

24 Cash flow SEK BN 5 Cash flow before financing Q Q2 Q3 Q4 Q R12 Q2 Q3 Q4 Q1 Q2 Q3 Q SEK M From operating activities From property projects From housing projects Other working capital Oct.-Dec Oct.-Dec Jan.-Dec , ,371 1, Investing activities Cash flow before financing 1,244 2,521 1,361

25 Operating profit/loss per business area SEK M Oct.-Dec Oct.-Dec Jan.-Dec NCC Building NCC Infrastructure SEK -137 M NCC HQ and NCC Industry International 577 proj. Oct.-Dec Oct.-Dec NCC Property Development Internal 601gains Other and eliminations Other -314 Group adjustment Operating profit ,242 Other and eliminations

26 NCC Building Tingsrätten, Lund

27 NCC Building Net sales, SEK M 9,000 7,500 6,000 4,500 3,000 Operating margin 6% 5% 4% 3% 2% SEK M Oct.-Dec Oct.-Dec Jan.-Dec Jan.-Dec Net sales 7,561 7,411 24,727 25,681 Operating profit Operating margin, % ,500 1% 0 Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q %

28 Geographical distribution Jan. - Dec NCC Building Orders received Net sales Finland 17% (19) Finland 21% (25) Norway 7% (7) Denmark 13% (13) Sweden 63% (61) Norway 8% (9) Denmark 14% (14) Sweden 57% (52)

29 Product mix Jan. - Dec NCC Building Orders received Net sales Residential 34% (37) Residential 36% (38) Refurbishment / Conversion Offices 9% (12) 21% (16) Refurbishment / Conversion Educational 10% (8) 21% (23) Public Buildings 8% (3) Offices 9% (9) Educational 8% (9) Health Care 8% (6) Health Care 8% (10) Other 6% (7) Other 7% (9) Public Buildings 4% (4) Industry / Logistics 3% (2) Retail 3% (3) Retail 2% (2) Industry / Logistics 3% (2)

30 Lower orders received NCC Building SEK BN 35 Q Q SEK BN Orders received Order backlog 0 Orders received Net sales

31 NCC Infrastructure Norvik, Nynäshamn

32 NCC Infrastructure Net sales, SEK M Operating margin 8,000 7,000 6,000 5, % 3.5% 3.0% 2.5% SEK M Oct.-Dec Oct.-Dec Jan.-Dec Jan.-Dec Net sales 6,137 5,405 18,552 17,007 4,000 3,000 2,000 1, % 1.5% 1.0% 0.5% 0.0% Operating profit Operating margin, % , % -2, % -3, % -4,000 Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q %

33 Geographical distribution Jan. - Dec NCC Infrastructure Orders received Net sales Denmark 6% (4) Norway 11% (21) Finland 2% (3) Norway 17% (22) Denmark 5% (6) Finland 2% (3) Sweden 76% (69) Sweden 81% (72)

34 Product mix Jan. - Dec NCC Infrastructure Orders received Net sales Roads 26% (34) Groundworks 28% (28) Groundworks 24% (26) Roads 24% (22) Energy & Water Treatment Industry Operation and maintenance 18% 13% (7) 8% (13) (12) Industry Energy & Water Treatment Operation and maintenance 14% (8) 14% (12) 13% (17) Railways 6% (4) Other 4% (6) Other 5% (4) Railways 3% (7)

35 Higher orders received NCC Infrastructure SEK BN Q Q Orders received Order backlog SEK BN Orders received Net sales

36 NCC Industry

37 NCC Industry Net sales, SEK M RoCE, R12 4,500 4,000 18% 16% SEK M Oct.-Dec Oct.-Dec Jan.-Dec Jan.-Dec ,500 3,000 2,500 2,000 1,500 1, % 12% 10% 8% 6% 4% 2% Net sales 3,839 3,240 12,393 10,760 Operating profit Operating margin, % RoCE, % Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q %

38 Increased volumes in Q4 Stone material sold, thousands of tons 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Asphalt sold, thousands of tons 3,000 2,500 2,000 1,500 1, Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4

39 Net sales Jan. - Dec NCC Industry Product mix Geographical distribution Foundation 12% (9) Finland 11% (10) Stone material 22% (22) Asphalt and paving 66% (69) Norway 14% (14) Denmark 17% (19) Sweden 58% (57)

40 NCC Property Development Vallensbaek, Copenhagen

41 NCC Property Development Net sales, SEK M RoCE, R12 2,200 2,000 1,800 1,600 22% 20% 18% 16% SEK M Oct.-Dec Oct.-Dec Jan.-Dec Jan.-Dec Net sales 42 1,492 2,567 2,823 1,400 1,200 14% 12% Operating profit , % 8% Operating margin, % Neg % 4% RoCE, % % 0 Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q %

42 Property portfolio Leasable space, sqm, in ongoing or completed projects not recognized in profit 200, , No. of projects 16 Sweden 100,000 Norway 50,000 Denmark Finland 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4

43 29,200 sqm leased in the quarter Leased floor space, sqm 200, , , , , ,000 80,000 60,000 40,000 20,000 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% Remaining unlet area Let during quarter Previously let area Let during quarter (% of available unlet area) 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 0%

44 Property portfolio 100% 90% 80% 70% 60% Letting ratio 50% 40% Completion ratio 30% 20% 10% 0% Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4

45 Changes in financial reporting January 1, 2018 due to IFRS 15

46 Building and Infrastructure s contracting operations IAS 11: IFRS 15 Claimed amount and additional work according to internal contract management and financial forecasting routines Probability: more likely than not Change in basis for profit recognition Change in probability needed Enforcable rights according to contractual agreement and/or applicable law Probability: highly likely Income from claims and additional work will be recognised later

47 Effects on financial reporting 2018 Shareholders equity will on Jan. 1, 2018 decrease by SEK 346 M Pro forma 2017 will be published ahead of Q1 2018

48 Gustavslund, Stockholm

49 Summary Q4 Higher net sales but lower earnings in NCC Building Negative result in NCC Infrastructure Improved result in NCC Industry Four property project starts High order backlog and good market

50

51 Contact information and calendar IR Manager Johan Bergman Tel: +46 (0) Chief Financial Officer Mattias Lundgren Tel: +46 (0) Financial Calendar Apr Annual General Meeting 25 Apr Interim report Jan. Mar. 18 Jul Interim report Jan. Jun. 25 Oct Interim report Jan. Sep. Jan Year-end report 2018