Interim report. January 1 June 30, Peter Wågström President and CEO Ann-Sofie Danielsson Chief Financial Officer

Transcription

1 Interim report January 1 June 3, Peter Wågström President and CEO Ann-Sofie Danielsson Chief Financial Officer Isbjerget Housing Project, Aarhus August 16, 1

2 Q2 in brief Orders received: SEK 17,798 M (15,453) Net sales: SEK 13,535 M (13,733) Order backlog: SEK 52,79 M (49,116) Operating profit: SEK 526 M (512) Cash flow before financing: negative SEK 1,42 M (neg. 2,179) August 16, Jarlahuset, Stockholm, Sweden 2

3 First six months in brief Orders received: SEK 29,474 M (27,176) Net sales: SEK 23,62 M (24,392) Operating profit: SEK 39 M (373) Cash flow before financing: negative SEK 2,351 M (neg. 3,421) Auditorium at the Karolinska Institute, Stockholm, Sweden August 16, 3

4 NCC Construction Norway Background Impairment losses for a number of projects in the other Buildings segment in the Oslo area totaled SEK 15 M The single largest impairment pertained to a project that was part of the acquisition of the company OKK Changes Ongoing review of the organization New senior executives Ensured compliance with systems and processes August 16, 4

5 Intensified seasonal pattern... Profit/loss after financial items SEK M 1,4 1,2 1, Q Q2 August 16, 5

6 but stable earnings trend Rolling 12 months SEK M 2,5 2, 1,5 1, 5 Q Q2 August 16, 6

7 NCC s Construction units Market Q2 Market weaker than ; improvement at the end of the quarter Improvement during the latter half of the year; full-year in line with Strong construction market in Norway Other markets weaker, particularly in Finland August 16, 7

8 Strong level of orders received for construction operations Total SEK 12.5 billion (1.8) SEK M 7, 6, 5, 4, 3, 2, 1, Q2 Q2 Sweden Denmark Finland Norway August 16, 8

9 Sharp increase in housing segment Orders received by NCC Construction units SEK M 6, Q2 Q2 5, 4, 3, 2, 1, Civil engineering Housing Other buildings August 16, 9

10 Increased portion of major projects in orders received NCC s Construction units 34% 18% 5% 5% 11% 13% 14% SEK <5 M SEK 5-1 M SEK 1-25 M SEK 25-5 M SEK 5-1 M SEK 1-3 M SEK >3 M Total: SEK 12.5 billion August 16, 1

11 Major orders in construction operations Q2 Housing units and parking garage at Port of Copenhagen: SEK 379 M Concreting works for new suspension bridge on E6 expressway in Narvik: SEK 739 M Shopping center with for public transport hub in Matinkylä, Espoo, Helsinki: SEK 1,17 M Maintenance plant at SL s new subway depot in Norsborg, Stockholm: SEK 1,21 M August 16, Parking garage, Copenhagen 11

12 Train depot for Greater Stockholm Public Transport Company Limited (SL) Joint project Order valued at SEK 1 billion Construction start in June, completion during autumn 216 Subway workshop depot, underground washing facility, tracks, electricity, signal system and telecommunications at both ground and underground levels August 16, Hästen 22, Stockholm 12

13 NCC Roads Market Q2 Late start to the market due to the long winter Increased volume late in the quarter Market outlook Asphalt on par with Aggregates slightly lower than August 16, 13

14 Aggregates lower volume... Volumes of aggregates sold, thousands of tons 8,385 7,819 Q2 Q2 August 16, 14

15 and asphalt Volumes of asphalt sold, thousands of tons 2,1 1,842 Q2 Q2 August 16, 15

16 NCC Housing Market Q2 Best market conditions in Norway and St. Petersburg, Russia Continued positive trend in Germany Slow recovery in Denmark and Baltic countries Some degree of caution in Sweden and Finland; purchase decisions made closer to completion Demand is expected to be stable, with essentially unchanged price levels August 16, Öbacka Strand, Umeå 16

17 Strong housing sales... No. of housing units sold Sweden Denmark Finland Baltic countries St. Petersburg, Russia Norway Germany Total, private customers Investor market Total Apr. Jun , Jan. Jun ,692 1, ,91 1,595 August 16, 17 17

18 enable more housing starts No. of housing starts Sweden Denmark Finland Baltic countries St. Petersburg, Russia Norway Germany Total, private customers Investor market Total Apr. Jun , , Jan. Jun ,936 1, ,275 1,669 August 16, 18 18

19 Fewer completed, unsold housing units No. of housing units Sweden Denmark Finland Baltic countries St. Petersburg, Russia Norway Germany Total, private customers Investor market Total Jun. 3, Dec. 31, Bockkranen, Gothenburg, Sweden August 16, 19 19

20 Well on the way to achieving target of 7, units under construction For private customers For investors Total No. of housing units Jun. 3, Dec. 31, Jun. 3, Dec. 31, Jun. 3, Dec. 31, Ongoing production 5,444 4,391 1,436 1,377 6,88 5,768 Sales rate, % Completion rate, % Glasblaeserhoefe Hamburg, Germany August 16, 2

21 A large number also scheduled for completion this year in Q4 Estimated completion No. of housing units for private customers 1,6 1,4 1,2 1, percent sales rate in projects scheduled for completion in the latter half of Sweden Norway Denmark Finland Germany Baltic countries St. Petersburg Sold portion Q3 Q4 Q1 214 Q2 Q3 Q 4 Later August 16, 21

22 Continuous market adaptation of housing portfolio Housing units in progress for private customers June 3, (March 31, ) Sweden 23% (27) Finland 15% (17) Norway 4% (6) Denmark 4% (4) St. Petersburg 33% (29) Germany 17% (15) Baltic countries 4% (2) August 16, 22

23 NCC Property Development Market Longer decision-making processes Demand for modern and green properties in prime locations Stable rents and vacancies August 16, Ullevigatan, Gothenburg, Sweden 23

24 Successful leasing Leased floor space, m 2 68,3 31,2 Jan. Jun. Jan. Jun. Lysaker Polaris, Oslo, Norway August 16, 24

25 TeliaSonera chooses NCC s office solution Conditional lease 5, m 2 modern work environment in Kristineberg, Stockholm, Sweden GreenBuilding property, will be certified in accordance with BREEAM Construction work scheduled to commence at the beginning of 214 and occupancy will take place in January 217 August 16, Kristineberg, Stockholm, Sweden 25

26 NCC sells office and retail project in Torsplan, Stockholm, Sweden Company divestment with an underlying property value of SEK 1,6 billion Leasable area: approx. 3, m 2 BREEAM certification level: Excellent Leasing rate: 84 percent Buyer: KLP Properties AB Preliminary date of occupancy: end of the fourth quarter of Positive impact on earnings on both the date of occupancy and as tenants move in August 16, Torsplan, Stockholm, Sweden 26

27 Q2 project starts Office building in Ullevi, Gothenburg, Sweden Leasable area: 2,1 m 2 Leasing rate: 86 percent Office project in Lysaker Polaris, Oslo, Norway Leasable area: 19,5 m 2 Leasing rate: 72 percent Office/Retail project in Matinkylä, Espoo, Finland Leasable area: approx. 25, m 2 NCC s share: 5 percent Leasing rate: 3 percent August 16, Skånegatan, Gothenburg, Sweden 27

28 Well-balanced portfolio 24 (22) ongoing or completed projects not recognized in profit June 3, (March 31, ) Sweden, 5 (5) projects Leasable area: 76, m 2 Norway, 3 (2) projects Leasable area: 43,4 m 2 Denmark, 8 (8) projects Leasable area: 38,1 m 2 Finland, 8 (7) projects Leasable area: 79,9 m 2 August 16, 28

29 Ann-Sofie Danielsson Chief Financial Officer Ulsmåg skole, Bergen, Norway August 16, 29

30 Q2 in brief Strong orders received high order backlog Operating profit: SEK 526 M (512) Improved cash flow from operating activities August 16, Elite Plaza Hotel, Örnsköldsvik, Sweden 3

31 Income statement SEK M Apr. Jun. Apr. Jun. Jul. Jun. Jan. Dec. Net sales 13,535 13,733 56,454 57,227 Gross profit 1,361 1,286 5,54 5,495 Selling and administrative expenses ,96-2,988 Cost ratio Other 6.2% 5.6% 5.5% 9 5.2% 12 Operating profit ,454 2,519 Financial items Profit after financial items ,179 2,277 Tax on profit for the period Tax rate 2.4% 23.7% 15.5% 16.1% Profit for the period ,841 1,91 August 16, 31

32 NCC Construction Sweden SEK M Orders received Net sales 1, 8, 6, 4, 2, Q1 Q SEK M Profit Operating margin % August 16, Q1 Q Skandion, Uppsala, Sweden 32

33 NCC Construction Denmark SEK M 2,4 Orders received Net sales 2, 1,6 1,2 8 4 Q1 Q SEK M Profit Operating margin % Q1 Q Nordhavnen, Copenhagen, Denmark August 16, 33

34 NCC Construction Finland SEK M Orders received Net sales 2,8 2,4 2, 1,6 1,2 8 4 Q SEK M Profit/loss Operating margin % 6 6 Q Q Q2-2 Mattby köpcenter, Esbo, Finland August 16, 34

35 NCC Construction Norway SEK M Orders received Net sales 3,2 2,8 2,4 2, 1,6 1, Q1 21 Q SEK M Profit/loss Operating margin % Q2 Q Ringeriksbadet, Hole, Norway August 16, 35

36 NCC Roads SEK M 4,2 3,6 3, 2,4 1,8 1,2 6 SEK M Profit/loss Operating margin % Q1 21 Q Net sales Q2 Q August 16, 36

37 NCC Housing SEK M 4,8 4,2 3,6 3, 2,4 1,8 1, Q1 21 Q Net sales SEK M Profit/loss Operating margin % Q2 Q Öland, St. Petersburg, Russia August 16, 37

38 Housing units recognized in profit No. of housing units Apr. Jun. Apr. Jun. Sweden Denmark Finland Baltic countries St. Petersburg, Russia 18 6 Norway Germany Total, private customers Investor market Total Västra Hamnen, Malmö, Sweden August 16, 38 38

39 NCC Property Development SEK M Net sales 1,5 1, 5 SEK M Q1 21 Q Operating profit/loss Q2 Q2 Tornby, Linköping, Sweden August 16, 39

40 Operating profit/loss per business area SEK M Apr. Jun. Apr. Jun. Jan. Dec. NCC Construction Sweden NCC Construction Denmark NCC Construction Finland NCC Construction Norway NCC Roads NCC Housing NCC Property Development Other and eliminations Operating profit ,519 August 16, 4

41 Balance sheet SEK BN Jun. 3, Dec. 31, Goodwill Property projects Housing projects Accounts receivable and receivables from property sales Other assets 1.3 Jun. 3, 1.7 Dec. 31, SEK BN Total assets Development properties Development costs Ongoing housing projects Completed housing units.8.8 Total housing projects Gigantium, Aalborg, Denmark August 16, 41

42 Cash flow SEK M Apr. Jun. Apr. Jun. Jul. Jun. Jan. Dec. From operating activities ,277 2,458 From property projects , From housing projects ,445-2,46 Other working capital 95-1,229 1, Investing activities Cash flow before financing -1,42-2, Damsundsbrua, Norway August 16, 42

43 Net indebtedness Net indebtedness, tenant owners associations and housing companies, SEK M Net indebtedness excl. tenant owners associations and housing companies, SEK M 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, -1, Debt/equity ratio Q1 Q August 16, 43

44 Ullevigatan, Skansen, Gothenburg, Stockholm, Sweden August 16, 44

45 Summary of Q2 Signs of improvement in the market Strong level of orders received High order backlog Earnings on par with year-earlier period Impairment losses for projects in Norway Favorable sales of housing units Healthy earnings and high leasing rates for NCC Property Development August 16, Amager Bakke, Copenhagen, Denmark 45

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47 Contact information IR Manager Johan Bergman tel. +46 () , +46 () johan.bergman@ncc.se Chief Financial Officer Ann-Sofie Danielsson tel. +46 () , +46 () ann-sofie.danielsson@ncc.se August 16, 47