Interim report January September, 2016

Transcription

1 Interim report January September, 2016 Peter Wågström President and CEO Mattias Lundgren CFO NCC Drysand factory Køge, Denmark 1

2 NCC Q Impairment losses in Norway Close to zero result for Building and Infrastructure Healthy orders received Strong performance from Industry Lower earnings from Property Development NCC Drysand factory Køge, Denmark 2

3 Q Orders received Net sales Order backlog Profit after financial items SEK 12.6 BN (10.1) SEK 13.6 BN (13.3) SEK 47.2 BN (41.5) SEK 471 M (715) 3

4 January - September 2016 Orders received Net sales Order backlog Profit after financial items SEK 40.2 BN (35.8) SEK 36.4 BN (36.8) SEK 47.2 BN (41.5) SEK 711 M (1,001) 4

5 Nordic construction market outlook 5

6 Nordic construction market Higher growth in construction volume than GDP 2016 EUR BN % Norway Source: Euroconstruct and NCC Finland 2.2% Denmark 2.0% 2.1% 2.0% 1.3% Sweden GDP growth Nordic Construction output growth 6

7 Nordic construction market Construction volume by segment EUR BN % Civil engineering Refurbishment New construction 2.9% 2.1% 1.8% 4.9% 1.2% 4.7% 1.3% -1.3% 0 Source: Euroconstruct and NCC

8 Nordic construction market Market outlook asphalt and stone material 10% 8% 6% 4% Growth asphalt Growth stone material 2% 0% -2% -4% Source: Euroconstruct and NCC

9 NCC Industry NCC Recycling, Borås 9

10 Slightly higher volumes in Q3 year-on-year 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 0 Q Q2 Q3 Q4 Q Q2 Q3 10

11 Net sales January - September 2016 NCC Industry Product mix Geographical distribution Foundation 9% Stone material 23% Asphalt and paving Finland 11% Norway 14% Russia 1% 54% Sweden 68% Denmark 20% 11

12 NCC Infrastructure Tunnel E134, Gvammen-Århus,Telemark, Norway 12

13 Higher orders received NCC Infrastructure SEK BN Q Q Orders received Order backlog SEK BN 2015 Q3 2016, R Orders received Net sales 13

14 Product mix Jan.- Sep NCC Infrastructure Orders received Net sales Groundworks 36% Groundworks 41% Roads 27% Other 18% Other Operation and maintenance 15% 14% Operation and maintenance Roads 15% 14% Railways 3% Tunnels 5% Tunnels 3% Railways 5% Bridges 2% Bridges 2% 14

15 Geographical distribution Jan.- Sep NCC Infrastructure Orders received Net sales Norway 4% Finland 3% Finland Denmark 12% 4% Norway 23% 80% Sweden Denmark 6% 68% Sweden 15

16 Project example NCC Infrastructure Earth and groundworks in Norvik, Stockholm Initial preparations for the construction of Stockholm Norvik Port Customer: Ports of Stockholm Order value: SEK 500 million 16

17 NCC Building Beckomberga, Stockholm 17

18 Higher order backlog NCC Building SEK BN 30 Q Q SEK BN Q3 2016, R Orders received Order backlog 0 Orders received Net sales 18

19 Product mix Jan.- Sep NCC Building Orders received Net sales Residential 34% Residential 40% Refurbishment 16% Refurbishment 22% Hospitals 14% Other 12% Offices 12% Offices 9% Schools 11% Schools 7% Other 10% Hospitals 6% Industry 2% Retail 3% Retail 1% Industry 1% 19

20 Geographical distribution Jan.-Sep NCC Building Orders received Net sales Finland 18% Norway 6% 7% Denmark 69% Sweden Finland 25% Norway 9% 51% Sweden 15% Denmark 20

21 Project example NCC Building New school and sports hall in Trelleborg, Sweden Customer: the Municipality of Trelleborg Order value: SEK 309 million 21

22 NCC Property Development Aitio BP, Helsinki 22

23 Property market outlook offices CBD Stockholm Yield 2016 Vacancy rate 2016 Helsinki Copenhagen Oslo Source: Newsec, NCC 0% 2% 4% 6% 8% 10% 12% Iso Omena, Espoo 23

24 Project profit recognized in Q3 Project Type Location Purchase price, SEK M Lettable area, sqm. Letting ratio Matinkylä Retail Espoo, Finland ,700 90% Iso Omena Shoppinf Center, Espoo 24

25 Net sales Jan.-Sep NCC Property Development Product mix Geographical distribution Other/rental income 16% 30% Sweden Office 28% 56% Retail Finland 57% 7% 6% Denmark Norway 25

26 Project starts in Q3 Project Type Location Lettable area, sqm Letting ratio Frederiks Plads 1 Office Århus, Denmark 5,000 0% Suurpelto 1 Retail Espoo, Finland 4,500 90% Frederiks Plads, Århus 26

27 Property portfolio Leasable space, sqm, in ongoing or completed projects not recognized in profit 200, , No. of projects Sweden 100,000 50,000 Norway Denmark 0 Q Q2 Q3 Q4 Q Q2 Q3 Finland 27

28 10,300 sqm leased in the quarter Leased floor space, sqm 200, , , , ,000 Leasable area beginning of quarter Leased in quarter Previous leased area 100,000 80,000 60,000 40,000 20, Q1 Q2 Q3 Q Q1 Q2 Q3 28

29 Mattias Lundgren CFO Hørgården nursing home, Copenhagen 29

30 Spinoff of Bonava effects on the financial statement Accounting policy IFRS 5 Bonava is recognized net on a single line under operations being discontinued in the income statement In cash flow, Bonava s profit after net financial items is recognized separately, following which Bonava as a whole is included KMH, Stockholm 30

31 Income statement SEK M Jul.-Sep Jul.-Sep Oct. 15 Sep.16 Remaining operations Net sales 13,572 13,320 52,683 Gross profit 1,026 1,265 4,453 Selling and administrative expenses ,923 Cost ratio 4.0% 4.2% 5.5% Other Operating profit ,426 Financial items Profit after financial items ,332 Tax Profit for the period ,101 Profit from discontinued operations ,622 Profit from remaining and discontinued operations ,723 Aurora school, Espoo 31

32 Cash flow SEK BN 5 Cash flow before financing R12 4 SEK M Jul.-Sep Jul.-Sep Oct.15- Sep From operating activities ,939 2 From property projects From housing projects ,252 0 Other working capital ,454-1 Investing activities ,084-2 Q Q2 Q3 Q4 Q Q2 Q3 Cash flow before financing ,004 1,874 32

33 Operating profit/loss per business area Jul.-Sep Jul.-Sep Oct. 15- Sep. 16 SEK M NCC Building 1 58 Jul.-Sep. Jul.-Sep. 504 SEK M NCC Infrastructure NCC HQ NCC Industry Internal gains -1-1 NCC Property Development Group adjustments Other and eliminations Other and 25-1 Operating profit excl. Bonava (Housing) eliminations 1,426 33

34 NCC Building Net sales, SEK M Operating margin 7,500 5% SEK M Jul.-Sep Jul.-Sep Oct. 15- Sep. 16 6,000 4% Net sales 6,033 5,527 25,624 4,500 3,000 3% 2% Operating profit Operating margin, % ,500 1% 0 Q Q2 Q3 Q4 Q Q2 Q3 0% 34

35 NCC Infrastructure Net sales, SEK M Operating margin 8,000 7, % 3.5% SEK M Jul.-Sep Jul.-Sep Oct. 15- Sep. 16 6,000 5,000 4,000 3,000 2,000 1, % 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Net sales 3,986 3,999 16,812 Operating profit Operating margin, % ,000 Q Q2 Q3 Q4 Q Q2 Q3-0.5% 35

36 NCC Industry Net sales, SEK M 4,000 3,500 3,000 2,500 2,000 1,500 1, RoCE, R12 16% 14% 12% 10% 8% 6% 4% 2% SEK M Jul.-Sep Jul.-Sep Oct. 15- Sep. 16 Net sales 3,594 3,540 10,578 Operating profit Operating margin, % RoCE, % Q Q2 Q3 Q4 Q Q2 Q3 0% 36

37 NCC Property Development Net sales, SEK M 1,600 1,400 1,200 1, RoCE, R12 16% 14% 12% 10% 8% 6% 4% 2% SEK M Jul.-Sep Jul.-Sep Oct. 15- Sep. 16 Net sales ,808 Operating profit Operating margin, % RoCE, % Q Q2 Q3 Q4 Q Q2 Q3 0% 37

38 Group financial objectives Torsplan 2, Stockholm 38

39 Operating margin 5% 4% Target 4% 3% 2% 3.1% 2.7% 1% 0% 2015 Q3 2016, R12 39

40 Revenue growth SEK M 60,000 50,000 40, % Objective: 5% average annual revenue growth 30,000 20,000 10, Q3 2016, R12 40

41 Equity/asset ratio and return on shareholders equity 25% Return on shareholders' equity* Equity/asset ratio 20% Target 20% 15% 10% Revaluation effect pensions SEK 773 M 5% 0% 2015 Q3 2016, R12 *Return on equity is calculated based on NCC s earnings excluding Bonava, but equity is adjusted only as per Q when the capital contribution from NCC to Bonava was conducted, which affects average shareholders equity. 41

42 Net indebtedness* / EBITDA Times Restriction < * Excl. pension liability 2015 Q3 2016, R12 42

43 De fem søstre, Vejle 43

44 Summary Q Lower earnings Improved orders received Higher order backlog Good market outlook Kiruna 44

45 45

46 Contact information IR Manager Johan Bergman Tel: +46 (0) Cheif Financial Officer Mattias Lundgren Tel. +46 (0)