Interim report January 1 September 30, 2017

Transcription

1 Interim report January 1 September 30, 2017 Peter Wågström President and CEO Mattias Lundgren CFO 1

2 NCC Q Lower net sales in NCC Building Impairment losses in NCC Infrastructure Good earnings in NCC Industry High order backlog Just Health Center, Helsinki 2

3 Q Orders received Net sales Order backlog Profit after financial items SEK 12.8 BN (12.6) SEK 13.1 BN (13.6) SEK 52.2 BN (47.2) SEK 365 M (471) Hotel AtSix, Stockholm 3

4 January - September 2017 Orders received Net sales Order backlog Profit after financial items SEK 40.7 BN (40.2) SEK 38.3 BN (36.4) SEK 52.2 BN (47.2) SEK 1,169 M (711) Hotel AtSix, Stockholm 4

5 Nordic construction market outlook KMH, Stockholm 5

6 Nordic construction market outlook Higher growth in construction volume than GDP 2017 EUR BN % 120 Norway % 2.0% 5.3% 2.1% Finland Denmark Sweden 2.5% 3.9% 2.3% Construction output growth Nordic GDP growth Nordic 0 Source: Euroconstruct and NCC

7 Nordic construction market outlook Construction volume by segment EUR BN % % % 5.7% 6.9% Civil engineering % 2.2% 2.0% 2.0% 0.6% 2.1% 1.8% Source: Euroconstruct and NCC New construction (Building) Refurbishment (Building) 7

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

9 NCC Building Novozymes, Denmark 9

10 Geographical distribution Jan. - Sep NCC Building Orders received Net sales Finland 14% (18) Norway 5% (6) Finland 22% (25) Denmark 12% (7) Sweden 69% (69) Norway 8% (9) Sweden 56% (51) Denmark 14% (15) 10

11 Product mix Jan. - Sep NCC Building Orders received Net sales Residential 34% (35) Residential 38% (39) Refurbishment / Conversion Public Buildings 8% (4) 24% (17) Refurbishment / Conversion Educational 10% (7) 21% (23) Offices 7% (11) Offices 8% (9) Educational 8% (9) Health Care 7% (6) Other 7% (7) Other 6% (6) Health Care 7% (14) Public Buildings 4% (4) Industry / Logistics 3% (2) Retail 3% (3) Retail 2% (1) Industry / Logistics 3% (3) 11

12 Higher order backlog NCC Building SEK BN 35 Q3 Q SEK BN R Orders received Order backlog 0 Orders received Net sales 12

13 Project example Falkoner Center in Copenhagen Rebuilding and extension of the Falkoner Center, Customer: ATP Ejendomme Order value: SEK 640 m 13

14 Project example Kapellgärdet Arena property block in Uppsala 152 apartments Customer: Bonava Order value: SEK 250 m 14

15 Project example Police station in Stockholm s Rinkeby district Redevelopment of a residential building into a police station Customer: Familjebostäder Order value: SEK 520 m 15

16 NCC Infrastructure Harbour, Norrtälje 16

17 Geographical distribution Jan. - Sep NCC Infrastructure Orders received Net sales Denmark 5% (4) Norway 12% (12) Finland 2% (4) Norway 18% (23) Denmark 5% (6) Finland 2% (3) Sweden 75% (68) Sweden 81% (80) 17

18 Product mix Jan. - Sep NCC Infrastructure Orders received Net sales Groundworks 28% (25) Groundworks 29% (29) Industry 17% (7) Roads 24% (21) Roads Energy & Water Treatment Operation and maintenance 16% (30) 15% (14) 10% (18) Operation and maintenance Industry Energy & Water Treatment 14% (21) 13% (8) 12% (12) Railways 9% (4) Other 5% (3) Other 5% (2) Railways 3% (6) 18

19 Higher orders received NCC Infrastructure SEK BN Q3 Q Orders received Order backlog SEK BN R Orders received Net sales 19

20 Project example Railway in consortium with Spain s OHL New section of railway between Lund and Arlöv in Skåne, Sweden Customer: Swedish Transport Administration Order value: SEK 1 billion Picture: Swedish Transport Administration 20

21 Eysturoy tunnel and Sandoy tunnel, Faroe Islands 21

22 Two road tunnels in the Faroe Islands Order value: First tunnel SEK 1.5 billion Second tunnel SEK 1.2 billion Order for the first tunnel registered in NCC Infrastructure, fourth quarter 22

23 NCC Industry 23

24 Increased stone volumes in Q3 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 Q1 Q2 Q3 Q4 Q Q2 Q3 0 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 24

25 Net sales Jan. - Sep NCC Industry Product mix Geographical distribution Foundation 12% (9) Finland 12% (11) Asphalt and paving 65% (68) Norway 14% (14) Stone material 23% (23) Denmark 18% (20) Sweden 56% (55) 25

26 NCC Property Development Torsplan, Stockholm 26

27 Property market outlook offices CBD Stockholm Yield 2017 (F) Vacancy rate 2017 (F) Helsinki Copenhagen Oslo Source: Newsec, NCC 0% 2% 4% 6% 8% 10% Torsplan 2, Stockholm 27

28 Property portfolio Leasable space, sqm, in ongoing or completed projects not recognized in profit 200, , No. of projects 100, Sweden 50,000 Norway Denmark Finland 0 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 28

29 1,800 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 Q1 Q2 Q3 Q4 Q Q2 Q3 0% 29

30 Property portfolio 100% 90% 80% 70% 60% 50% 40% Letting ratio Completion ratio 30% 20% 10% 0% Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 30

31 Mattias Lundgren CFO Dome of Visions, Stockholm 31

32 Income statement SEK M Jul.-Sep Jul.-Sep. Oct.16- Sep. 17 Jan.-Dec. Net sales 13,102 13,572 54,809 52,934 Gross profit 935 1,026 4,734 4,450 Selling and administrative expenses ,840-2,912 Cost ratio 4.2% 4.0% 5.2% 5.5% Other Operating profit ,901 1,453 Financial items Profit after financial items ,799 1,341 Tax Profit for the period ,507 1,116 Myllytie 4b, Helsinki 32

33 Cash flow SEK BN 5 Cash flow before financing Q Q2 Q3 Q4 Q1 R12 Q2 Q3 Q4 Q Q2 Q3 SEK M From operating activities From property projects From housing projects Other working capital Jul.-Sep Jul.-Sep. Jan.-Dec , Investing activities ,181 Cash flow before financing

34 Operating profit/loss per business area SEK M Jul.-Sep Jul.-Sep. Jan.-Dec. NCC Building NCC Infrastructure SEK M 162 NCC HQ and NCC Industry International 533 proj. Jul.-Sep Jul.-Sep NCC Property Development Internal 327gains Other and eliminations Other -57 Group adjustment Operating profit excl. Bonava (Housing) ,453 Other and eliminations Car park Skruven, Stockholm 34

35 NCC Building Net sales, SEK M 7,500 6,000 Operating margin 5% 4% SEK M Jul.-Sep Jul.-Sep. Oct. 16- Sep. 17 Jan.-Dec. Net sales 5,346 6,033 24,576 25,681 4,500 3% Operating profit ,000 2% Operating margin, % ,500 1% 0 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 0% 35

36 NCC Infrastructure Net sales, SEK M Operating margin 8,000 7,000 6,000 5, % 3.5% 3.0% 2.5% SEK M Jul.-Sep Jul.-Sep. Oct. 16- Sep. 17 Jan.-Dec. Net sales 4,472 3,986 17,820 17,007 4,000 3, % 1.5% Operating profit ,000 1, % 0.5% Operating margin, % % -1, % -2, % -3,000 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Q3-1.5% 36

37 NCC Industry Net sales, SEK M RoCE, R12 4,000 3,500 16% 14% SEK M Jul.-Sep Jul.-Sep. Oct.16- Sep. 17 Jan.-Dec. 3,000 12% Net sales 4,051 3,594 11,795 10,760 2,500 2,000 1,500 10% 8% 6% Operating profit Operating margin, % , % 2% RoCE, % Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 0% 37

38 NCC Property Development Net sales, SEK M RoCE, R12 2,200 2,000 1,800 1,600 22% 20% 18% 16% SEK M Jul.-Sep Jul.-Sep. Oct. 16- Sep. 17 Jan.-Dec. Net sales ,017 2,823 1,400 1,200 14% 12% Operating profit , % 8% Operating margin, % % 4% RoCE, % % 0 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 0% 38

39 Group financial objectives Käppalaverket, Stockholm 39

40 Operating margin 5% 4% Target 4% 3% 2% 2.7% 3.5% 1% 0% Q3 2017, R12 40

41 Revenue development SEK M 60,000 50,000 40, % (average annual growth 1.8%) Objective: 5% average annual revenue growth 30,000 20,000 10, Q3 2017, R12 41

42 Equity/asset ratio and return on shareholders equity 30% Return on shareholders' equity* Equity/asset ratio 25% 20% Target 20% 15% 10% 5% 0% Q3 2017, R12 Revaluation effect pensions SEK -7 M *Return on equity is calculated based on NCC s earnings excluding Bonava 42

43 Net indebtness Times Restriction <2.5 times net indebtedness* / EBITDA * Excl. pension liability Q3 2017, R12 43

44 Gustavslund, Stockholm 44

45 Summary Lower net sales and result in Q3 NCC Building and NCC Infrastructure focus on delivering on the order backlog NCC Industry on track NCC Property Development focus on project starts High order backlog and favorable market outlook 45

46 46

47 Contact information and calendar IR Manager Johan Bergman Tel: +46 (0) Chief Financial Officer Mattias Lundgren Tel: +46 (0) Financial Calendar Jan Year-end report Apr Annual General Meeting 25 Apr Interim report Jan. Mar. 18 Jul Interim report Jan. Jun. 25 Oct Interim report Jan. Sep. 47