Interim report January 1 September 30, Peter Wågström President and CEO Ann-Sofie Danielsson Chief Financial Officer Triangeln, Sweden -10-24 NCC AB 1
Q3 in brief Orders received SEK 12,383 M (12,160) Order backlog SEK 54,609 M (51,065 ) Net sales SEK 14,796 M (13,129) Profit after financial items SEK 881 M (748) P303 Hageby Backe, Huddinge -10-24 NCC AB 2
January-September in brief Orders received SEK 42,910 M (42,617 ) Order backlog SEK 54,609 M (51,065) Net sales SEK 38,106 M (36,749 ) Profit after financial items SEK 1,217 M (929 ) Folkboende, Holmen, Eskilstuna -10-24 NCC AB 3
Trends in Nordic construction market Sweden Growth in residential Norway Favorable trend in infrastructure Denmark Growth in Copenhagen and Aarhus residential and other buildings Finland Challenging market Outlook 2015 Nordic market growth stronger in Sweden and Norway, challenging in Finland -10-24 NCC AB 4
Positive trend orders received NCC s Construction units SEK BN 45 Orders received, quarter Order backlog Orders received R12 40 35 30 25 20 15 10 5 0 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3-10-24 NCC AB 5
Favorable orders received in Sweden and Denmark Orders received, NCC Construction units SEK M 6,000 Q3 Q3 5,000 4,000 3,000 2,000 1,000 0 Sweden Denmark Finland Norway -10-24 NCC AB 6
Increased orders in residential Orders received, NCC Construction units SEK M 4,000 Q3 Q3 3,000 2,000 1,000 0 Civil engineering Residential Other buildings -10-24 NCC AB 7
Increased share of mid-sized projects NCC s Construction units, Q3 Project size, orders received Total SEK 8.3 BN Project size, order backlog Total SEK 36.5 BN SEK > 300 M 22% SEK > 300 M 29% SEK 100-300 M 26% SEK 100-300 M 35% SEK 50-100 M 16% SEK 50-100 M 16% SEK 25-50 M 12% SEK 25-50 M 8% SEK 10-25 M 10% SEK 10-25 M 6% SEK 5-10 M 6% SEK 5-10 M 2% SEK < 5 M 8% SEK < 5 M 4% -10-24 NCC AB 8
A selection of construction projects in Q3 Frederiks Plads, Aarhus, Denmark, 150 apartments, SEK 283 million Refurbishment of fire station to offices, Trondheim, Norway, SEK 137 million Ystad arena, Sweden, SEK 205 million Puijonlaakso, Kuopio, Finland, 153 rental apartments, SEK 120 million -10-24 NCC AB 9
Royal College of Music, Stockholm -10-24 NCC AB 10
Trends in stone material, asphalt and road service The Nordic market Stone material and asphalt Fewer infrastructure projects Slightly lower volumes in Q3 Road service Stable demand Outlook 2015 Higher demand for stone material Potential for growth in asphalt Vestfynske Motorvej, Danmark -10-24 NCC AB 11
Lower volume of stone material in Q3 Volumes of stone material sold, thousands of tons 20,108 8,218 20,621 7,712 Q3 Jan.-Sep. Jan.-Sep. Ohkola, Finland -10-24 NCC AB 12
and lower asphalt volumes Volumes of asphalt sold, thousands of tons 4,647 4,644 Q3 2,728 2,581 Jan.-Sep. Jan.-Sep. Vestfynske Motorvej, Danmark -10-24 NCC AB 13
NCC Spuma Environmentally friendly weed control gets the highest rating of SundaHus -10-24 NCC AB 14
Trends in residential markets Private customers Favorable market in Sweden, Germany and St. Petersburg Challenging market in Finland Investor markets Increased demand for investor packages in Germany and Finland Outlook 2015 Good demand especially in Sweden and Germany Weak demand in Finland Greta-Garbo-Straße, Berlin-Pankow -10-24 NCC AB 15
Higher sales to private customers No. of housing units sold 1,392 1,272 449 266 Investor packages Q3 Q3 St. Petersburg Baltic Countries Germany Finland Denmark Norway Sweden Slottsträdgården, Helsingin Malmi, Västerås Finland -10-24 NCC AB 16
and more starts to private customers No. of housing starts 1,149 449 1,150 266 Investor packages St. Petersburg Baltic Countries Germany Finland Denmark Norway Sweden Q3 Q3 Kerbelweg, Hamburg -10-24 NCC AB 17
Some of the started housing projects in Q3 Bisketti, Lauttasaari, Helsinki, Finland 44 units Tollare Torg, Nacka, Sweden 82 units Sulzbach, Frankfurt, Germany 47 units Byhuse I, Havnevigen, Copenhagen, Denmark 38 units -10-24 NCC AB 18
Same trend as previous years Estimated completion No. of housing units 2,000 72 sold housing units, not recognized in Q3 profit 1,800 1,600 1,400 1,200 1,000 800 600 400 200 Investor packages Sweden Norway Denmark Finland Germany Baltic countries St. Petersburg Portion sold 0 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Later -10-24 NCC AB 19
More housing units to complete 2015 Estimated completions 4,323 3,414 Investor packages St. Petersburg Baltic Countries Germany Finland Denmark Norway Sweden Q3 Est. completion Q3 Est. completion 2015 P303, Hageby Backs, Huddinge -10-24 NCC AB 20
More housing units in ongoing production Number of housing units For private customers For investors Total Sep. 30, Dec. 31, Sep. 30, Dec. 31, Sep. 30, Dec. 31, Ongoing production 6,425 4,831 1,525 1,552 7,950 6,383 Sales rate, % 58 47 100 98 66 59 Completion rate, % 53 49 63 38 55 46 Nya Kortedala, Göteborg -10-24 NCC AB 21
Housing portfolio Housing for private customers, ongoing production September 30, Number of housing units Estimated value Sweden 23% Sweden 33% Finland 13% Finland 11% St. Petersburg 37% St. Petersburg 14% Baltic Countries 4% Baltic Countries 1% Germany 17% Germany 24% Denmark 5% Denmark 13% Norway 1% Norway 4% -10-24 NCC AB 22
Trends in Nordic property market Investor market Increasing interest in the Nordic market Finland Cautious investors Rental market Good demand in Sweden Stable in Copenhagen and Oslo Weaker demand in Finland Outlook 2015 Stable interest for Nordic properties Hylliie, Malmö -10-24 NCC AB 23
Project sales Q3 Project Type Price SEK M Recognized in profit Vallensbæk Company House III, Vallensbæk Office 195 Q3 2015 Vallensbæk Company House III -10-24 NCC AB 24
Project starts Q3 Hyllie, Malmö 7,300 m 2 office space Leasing rate 40% Torsplan 2, Stockholm 22,400 m 2 total space 19,200 m 2 office space 3,200 m 2 retail space Leasing rate 0% Torsplan 2, Stockholm -10-24 NCC AB 25
Acceptable leasing rate compared to leasable space Leased floor space, m 2 15,000 8,600 Q3 Q3 Lielathikeskus, Tammerfors -10-24 NCC AB 26
Sweden a larger part of the portfolio Leasable space, m 2, in ongoing or completed projects not recognized in profit 300,000 250,000 24 25 200,000 150,000 22 17 14 16 17 No. of projects Sweden 100,000 50,000 0 Q1 Q2 Q3 Q4 Q1-10-24 NCC AB 27 Q2 Q3 Norway Denmark Finland
Ann-Sofie Danielsson Chief Financial Officer Allermöhe,Hamburg -10-24 NCC AB 28
Q3 in brief Orders received on a good level Improved earnings Lower cash flow Operating profit, SEK M 850 612 814 823 989 Q3 2010 Q3 2011 Q3 2012 Q3 Q3 Slottsträdgården, Västerås -10-24 NCC AB 29
Return on equity % 35 30 25 20 Target 15 10 5 0 2003 Neg. 2004 2005 2006 2007 2008 2009 2010 2011 2012 R12-10-24 NCC AB 30
Income statement SEK M Jul.-Sep. Jul.-Sep. Oct. 13- Sep. 14 Jan.-Dec. Net sales 14,796 13,129 59,181 57,823 Gross profit 1,637 1,481 6,091 5,796 Selling and administrative expenses -653-670 -3,046-3,130 Cost ratio Other 4.4% 4 5.1% 13 5.1% 6 5.4% 14 Operating profit 989 823 3,050 2,679 Financial items -108-75 -362-279 Profit after financial items 881 748 2,689 2,400 Tax on profit for the period -184-134 -498-411 Tax rate 20.9% 17.9% 18.5% 17.1% Profit for the period 696 614 2,191 1,989-10-24 NCC AB 31
Operating profit per business area SEK M Jul.-Sep. Jul.-Sep. Oct. 13- Sep. 14 Jan.-Dec. NCC Construction Sweden 182 192 620 637 NCC Construction Denmark 67 55 249 208 NCC Construction Finland 39 38 152 127 NCC Construction Norway 75 28 180 3 NCC Roads 407 538 379 406 NCC Housing 237 15 921 605 NCC Property Development 36 8 601 713 Other and eliminations -54-51 -52-21 Operating profit 989 823 3,050 2,679-10-24 NCC AB 32
NCC Construction units SEK M Orders received Net sales 14,000 12,000 10,000 8,000 6,000 4,000 2,000 600 500 400 300 200 100 0 Q1 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SEK M Operating profit Operating margin % 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012-10-24 NCC AB 33 Q2 Q3 6 5 4 3 2 1 Higher net sales Operating margin improved Good margins in Denmark and Norway
NCC Roads SEK M 4,800 4,200 3,600 3,000 2,400 1,800 1,200 600 0 600 400 200 0-200 -400 Q1 2012 Net sales Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SEK M Operating profit/loss Operating margin -600-60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 Ohkola, Finland -10-24 NCC AB 34 Q2 Q3 % 60 40 20 0-20 -40
NCC Housing SEK M 5,000 Net sales 4,000 3,000 2,000 1,000 0 Q1 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 SEK M Operating profit Operating margin % 600 500 400 300 200 100 0 Q1 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-10-24 NCC AB 35 Q2 Q3 18 15 12 9 6 3 0 Kauniaisten Konsuli, Kauniainen
Housing units recognized for profit Number of housing units Jul-Sep. Jul.-Sep. Sweden 135 144 Denmark 41 34 Finland 114 128 Baltic countries 5 45 St. Petersburg 46 44 Norway 30 22 Germany 176 93 Total, private customers 547 510 Investor packages 507 0 Total 1,054 510 P303, Plutonen, Örebro -10-24 NCC AB 36
NCC Property Development SEK M 3,500 3,000 2,500 2,000 1,500 1,000 500 500 450 400 350 300 250 200 150 100 50-50 0 0 SEK M Q1 2012 Q1 2012 Net sales Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Operating profit/loss Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-10-24 NCC AB 37 Q2 Q2 Q3 Q3 Hyllie, Malmö
Balance sheet SEK BN 40.8 41.1 1.8 1.9 6.8 5.5 Sep. 30 Sep. 30 Development properties 2.2 2.1 Ongoing property projects 3.4 2.8 Completed property projects 1.2 0.7 Total 6.8 5.5 13.6 14.8 Goodwill Property projects 8.1 8.4 10.5 10.5 Housing projects Accounts receivable and receivable from property sales Other assets Sep. 30 Sep. 30-10-24 NCC AB 38
Balance sheet SEK BN 40.8 41.1 1.8 1.9 6.8 5.5 Sep. 30 Sep. 30 Development properties 5.2 5.5 Development costs 1.4 1.4 Ongoing housing projects 6.4 6.7 Completed housing units 0.7 1.2 Total 13.6 14.8 13.6 14.8 Goodwill Property projects 8.1 8.4 10.5 10.5 Housing projects Accounts receivable and receivable from property sales Other assets Sep. 30 Sep. 30-10-24 NCC AB 39
Completed housing not profit recognized No. of housing units Sep. 30 Sep. 30 Sweden 121 61 Denmark 18 27 Finland 118 89 Baltic countries 18 28 St. Petersburg 69 12 Norway 35 18 Germany 46 28 Total, private customers 425* 263 *Of the completed 72 (19) were sold and 69 (62) are show houses Nya Triangeln, Malmö -10-24 NCC AB 40
Dividend two payments SEK M April 10 647 October 31 (record date October 28) 647 Total 1,294 Kerbelweg Eigentumswohnung, Hamburg -10-24 NCC AB 41
Lower cash flow SEK M Jul.-Sep. Jul.-Sep. Jan.-Sep. Jan.-Sep. Jan.-Dec. From operating activities 963 830 846 690 2,321 From property projects -335-492 -336-1,324 280 From housing projects -498-775 -1,821-2,045-845 Other working capital -578 394-947 687 775 Investing activities -180-185 -596-587 -870 Cash flow before financing -627-227 -2,854-2,579 1,661 Tyresö Aquarena -10-24 NCC AB 42
Net indebtedness Net indebtedness, tenant housing and housing associations, SEK M Net indebtedness excl. tenant housing and housing associations, SEK M 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Debt/equity ratio, times 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0 Q1 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0.0-10-24 NCC AB 43
Net indebtedness SEK M Jul.-Sep. Jul.-Sep. Jan. Sep. Jan.-Sep. Net indebtedness opening balance -8,760-9,722-5,656-6,467 Cash flow -627-227 -2,854-2,579 Sale/acquisition of treasury shares 0 0 0-28 Change in pension liablilities -435 56-666 239 Dividend 0 0-647 -1,080 Other changes -1 0 0 21 Net indebtedness closing balance -9,823-9,893-9,823-9,893 Jernbane Porsgrunn, Norway -10-24 NCC AB 44
Sydvästlänken, Markaryd -10-24 NCC AB 45
Summary Q3 Improved earnings in Housing Orders received on a good level Strong order backlog Lower earnings in Roads Overall a positive quarter -10-24 NCC AB 46
Capital Markets Day November 25 in Stockholm Focus on residential, Construction Sweden and Denmark Followed by a debate on housing policy Register before November 18 on ncc.se/investor relations -10-24 NCC AB 47
Contact information IR Manager Johan Bergman Tel: +46 (0)8-585 523 53, +46 (0)70-354 80 35 johan.bergman@ncc.se Chief Financial Officer Ann-Sofie Danielsson Tel: +46 (0)8-585 517 17, +46 (0)70-674 07 20 ann-sofie.danielsson@ncc.se -10-24 NCC AB 49