Interim report January 1 September 30, 2018

Transcription

1 Interim report January 1 September 30, 2018 Tomas Carlsson CEO Mattias Lundgren CFO 1

2 Capital Markets Meeting October 16 Business review completed Q3 result impacted by revaluations of SEK 1,565 M Preliminary Q3 result Net sales SEK 14,269 M (13,075) EBIT SEK -1,108 M (364) Action plan initiated 2

3 Need for change but healthy core Healthy core in NCC Uneven performance throughout the group Market conditions generally good Challenging areas in NCC identified Risk reduced across the portfolio Low impact on cash flow 3

4 Insights Estimations of claim outcomes and warranty provisions Revaluation of property assets Risk profile in tendering processes Project management and cost control More prudent approach to claims and warranties Decision to exit segments and markets A lower risk profile and more structured process for estimates and decisions Managing identified back-log. Structural initiatives to improve project management and cost control going forward 4

5 Summary: Plan to improve profitability 1 Organisation and team Effective organization strong team 2 Exit or divest non-performing business Road services, some businesses in Industry, property and land, rightsizing office locations 3 Turn-around Civil Norway, Building Nordics, single departments in other Business Areas 4 Improved processes and training Work towards a common operational model. Structured processes for follow-up of tenders and project. Training. 5

6 Q Orders received Net sales Order backlog EBIT SEK 12.7 BN (12.7) SEK 14.3 BN (13.1) SEK 56.6 BN (52.2) SEK -1,108 M (364) 6

7 Jan-Sep 2018 Orders received Net sales Order backlog EBIT SEK 44.1 BN (40.6) SEK 39.5 BN (38.2) SEK 56.6 BN (52.2) SEK -1,020 M (1,118) 7

8 NCC Infrastructure 8

9 Higher order backlog NCC Infrastructure SEK BN 30 Q Q SEK BN Q3 2018, R Orders received Order backlog 0 Orders received Net sales 9

10 Geographical distribution Jan Sep 2018 NCC Infrastructure Orders received Net sales Norway 19% (12) Finland 3% (2) Norway 16% (18) Finland 2% (2) Denmark 5% (5) Denmark 6% (5) Sweden 73% (81) Sweden 76% (75) 10

11 Product mix Jan - Sep 2018 NCC Infrastructure Orders received Net sales Railways 35% (9) Groundworks 27% (29) Groundworks 17% (28) Roads 21% (24) Operation and maintenance 14% (10) Energy & Water Treatment 20% (12) Industry 12% (17) Industry 15% (13) Energy & Water Treatment 11% (15) Operation and maintenance 11% (14) Roads 9% (16) Other 4% (5) Other 2% (5) Railways 2% (3) 11

12 Project example Venjar Eidsvoll railway north of Oslo, Norway 4 kilometers of new track running parallel with the existing track, a 380- meter concrete tunnel and a number of bridges and viaducts Customer: Bane NOR Order value: SEK 1.7 billion 12

13 Project example Expansion of the Follo Line, Norway Concreting works on the Loenga- Ekebergåsen line Customer: Bane NOR Order value: SEK 275 million 13

14 NCC Building 14

15 Healthy order backlog NCC Building SEK BN 35 Q Q SEK BN Q3 2018, R Orders received Order backlog 0 Orders received Net sales 15

16 Geographical distribution Jan - Sep 2018 NCC Building Orders received Net sales Finland 28% (14) Finland 17% (22) Norway 7% (8) Norway 6% (5) Sweden 54% (69) Denmark 16% (13) Sweden 60% (57) Denmark 12% (12) 16

17 Product mix Jan - Sep 2018 NCC Building Orders received Net sales Refurbishment / Conversion Residential 27% (25) 26% (34) Residential Refurbishment / Conversion 23% (21) 31% (38) Public Buildings 11% (8) Offices 11% (8) Educational 8% (8) Health Care 9% (7) Industry / Logistics 8% (3) Educational 8% (10) Other 8% (6) Public Buildings 6% (4) Health Care 7% (7) Other 6% (6) Offices 4% (7) Industry / Logistics 4% (3) Retail 1% (2) Retail 2% (3) 17

18 Project example Attractive apartments in Hellerup, Denmark 50 apartments in an attractive location in Hellerup Customer: Danica Pension Order value: SEK 520 million 18

19 Project example School in Norrköping, Sweden Classrooms, kitchen, outdoor facilities and sports hall Customer: Norrevo Fastigheter Order value: SEK 165 million 19

20 NCC Industry 20

21 Lower volumes in Q3 Stone material sold, thousands of tons 10,000 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 Q Q2 Q3 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 21

22 Solid base, strongest parts Sweden and Asphalt Net sales Jan-Sep 2018 Product mix Geographical Foundation 11% (12) Stone material 22% (23) Norway 17% (14) Finland 9% (12) Sweden 55% (56) Asphalt and paving 67% (65) Denmark 19% (18) 22

23 NCC Property Development 23

24 Profit recognized projects Project Type Location Lettable area, sqm. Alberga E Office Helsinki, Finland 5,800 Mölndal Galleria, 50% Retail Gothenburg, Sweden 13,100 Arendal 3 Logistics Gothenburg, Sweden 6,800 24

25 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 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Finland 25

26 6,400 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 0% 26

27 Property portfolio 100% 90% 80% 70% 60% 50% Letting ratio Completion ratio 40% 30% 20% 10% 0% Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 27

28 Project example Bromma Blocks in Bromma, Sweden Approx. 50,000 sqm offices, retail and hotel Approx. 20,000 sqm leased to Maxi ICA supermarket and a Biz Apartment hotel Investment of SEK 2.5 billion Completion

29 Mattias Lundgren CFO 29

30 Income statement SEK M Jul-Sep 2018 Jul-Sep 2017 Oct 17- Sep 18 Jan-Dec 2017 Net sales 14,269 13,075 55,786 54,441 Gross profit ,949 3,981 Selling and administrative expenses ,993-2,933 Cost ratio 4.6% 4.2% 5.4% 5.4% Other EBIT -1, ,063 1,075 Financial items EBT -1, , Tax Profit for the period

31 EBIT per business area SEK M Jul-Sep 2018 Jul-Sep 2017 Jan-Dec 2017 NCC Infrastructure SEK M NCC Building Jul-Sep 2018 Jul-Sep 2017 NCC HQ etc NCC Industry NCC Property Development Internal gains Other and eliminations Other Group -314 adjustment EBIT -1, Other and 1,242 eliminations

32 NCC Infrastructure SEK M 458 SEK M Jul-Sep 2018 Jul-Sep 2017 Oct 17- Sep 18 Jan-Dec 2017 Net sales 4,515 4,472 19,914 18,490 EBIT Of which revaluation EBIT margin, % Claims/warranties Write downs Restructuring costs Revaluation of property Other revaluations 32

33 NCC Building SEK M SEK M Jul-Sep 2018 Jul-Sep 2017 Oct 17- Sep 18 Jan-Dec 2017 Net sales 6,101 5,319 26,214 24,622 EBIT Of which revaluation EBIT margin, % Claims/warranties Write downs Restructuring costs Revaluation of property Other revaluations 33

34 NCC Industry SEK M SEK M Jul-Sep 2018 Jul-Sep 2017 Oct 17- Sep 18 Jan-Dec 2017 Net sales 4,301 4,051 12,931 12,393 EBIT Of which revaluation Claims/warranties Write downs Restructuring costs 0 0 Revaluation of property 68 Other revaluations EBIT margin, % RoCE, %

35 NCC Property Development SEK M SEK M Jul-Sep 2018 Jul-Sep 2017 Oct 17- Sep 18 Jan-Dec 2017 Net sales , EBIT Of which revaluation EBIT margin, % neg neg neg Claims/warranties Write downs Restructuring costs Revaluation of property Other revaluations RoCE, % neg

36 Cash flow SEK BN 5 Cash flow before financing R12 SEK M From operating activities From property projects Other working capital Jul-Sep 2018 Jul-Sep 2017 Jan-Dec , Investing activities Cash flow before financing ,361-3 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 36

37 Group financial objectives 37

38 Reduced number of objectives Operating Margin 4.0% Net Indebtedness < 2.5 x EBITDA Return on Equity 20% Dividend policy 40% of profit after tax 38

39 EBIT margin 4% Target 4% 3% 2% 1% 0% All comparative figures for 2017 according to IFRS15-1% -2% -3% 2017 Q3 2018, R12 39

40 Net indebtness* / EBITDA Times Restriction <2.5 times net indebtedness* / EBITDA Q3 2018, R12 * Excl. pension liability 40

41 Return on shareholders equity 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% 2017 Q3 2018, R12 Target 20% 41

42 Tomas Carlsson CEO 42

43 Strong positive drivers in the market Large infrastructure projects in Norway and Sweden Still a generally strong demand in building Demographies drives demand for schools, hospitals and elderly care around our cities Growing cities and population growth Nordic economies stable with reasonable growth projections 43

44 New baseline Build on our strong and healthy core Focus on projects, customers and geographies where NCC can deliver value Lower risk profile in the projects not less ambitious in our business Clear main objectives: Restore profitability and better consistency 44

45 45

46 Contact information and calendar IR Manager Johan Bergman Tel: +46 (0) Chief Financial Officer Mattias Lundgren Tel: +46 (0) Financial Calendar 2019 January 30 Year end report 2018 April 9, 2019 Annual General Meeting April 29, 2019 Interim report Jan-Mar July 19, 2019 Interim report Jan-Jun October 28, 2019 Interim report Jan-Sep 46