Year-end report January 1 December 31, 2015 Peter Wgstrm - - PowerPoint PPT Presentation

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Year-end report January 1 December 31, 2015 Peter Wgstrm - - PowerPoint PPT Presentation

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Year-end report January 1 December 31, 2015 Peter Wgstrm President and CEO NCC Ann-Sofie Danielsson Sknegatan, Gothenburg 1 2016-01-28 NCC AB Q4 2015 in brief Orders received Order backlog SEK 20.4 BN (18.5) SEK 56.6 BN (54.8)

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SLIDE 1

2016-01-28 NCC AB 1

Year-end report January 1 – December 31, 2015

Peter Wågström

President and CEO NCC

Ann-Sofie Danielsson

Skånegatan, Gothenburg

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SLIDE 2

2016-01-28 NCC AB 2

Q4 2015 in brief

Orders received SEK 20.4 BN (18.5) Order backlog SEK 56.6 BN (54.8)

Linköping, Universitetssjukhus

Net sales SEK 22.4 BN (18.8) Profit after financial items SEK 1,562 M (1,017)

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SLIDE 3

2016-01-28 NCC AB 3

2015 in brief

Orders received SEK 62.5 BN (61.4) Net sales SEK 62.5 BN (56.9) Order backlog SEK 56.6 BN (54.8) Profit after financial items SEK 2,656 M (2,234)

Refurbishment, Postgården, Copenhagen

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SLIDE 4

20% Return on shareholders’ equity after tax 26%

2016-01-28 NCC AB 4

Financial objectives

1.5 times equity Indebtedness – net debt restriction 0.5 times Outcome 2015

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SLIDE 5

2016-01-28 NCC AB 5

  • Distribute NCC Housing in accordance

with the rules of Lex ASEA

  • Cash dividend of SEK 3.00 per share

for 2015, record date November 7

Dividend proposal

Friedenstrasse, Leonberg

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SLIDE 6

2016-01-28 NCC AB 6

Sweden

  • Strong market in general in all segments

Norway

  • Strong market in infrastructure

Denmark

  • Growth in Copenhagen and Aarhus – residential

and other buildings, energy renovation Finland

  • Challenging market

Trends in Nordic construction market

Cirkus, Skandiascenen, Stockholm

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SLIDE 7

2016-01-28 NCC AB 7

Order backlog increased in Q4

NCC Construction

5 10 15 20 25 30 35 40 45 50 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Orders received, quarter Order backlog Orders received R12 Net sales, R12 SEK BN

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SLIDE 8

2016-01-28 NCC AB 8

Stable mix in the portfolio

NCC Construction

34% 25% 13% 10% 9% 4% 5% 34% 22% 16% 9% 8% 6% 5% SEK > 300 M SEK 100-300 M SEK 50-100 M SEK 25-50 M SEK 10-25 M SEK 5-10 M SEK < 5 M Q4 2015 Q4 2014 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Project size, orders received Total SEK 12.9 BN Project size, order backlog Total SEK 36.3 BN <5 5-10 10-25 25-50 50-100 100-300 >300 SEK M

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SLIDE 9

2016-01-28 NCC AB 9

Geographical distribution

Orders received, NCC Construction

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Sweden Denmark Finland Norway

Q4 2014 Q4 2015

SEK M

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SLIDE 10

2016-01-28 NCC AB 10

Good order intake in other buildings

Orders received, NCC Construction

1,000 2,000 3,000 4,000 5,000 6,000 7,000 Civil engineering Residential Other buildings

Q4 2014 Q4 2015

SEK M

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SLIDE 11

2016-01-28 NCC AB 11

A selection of construction projects in Q4

Refurbishment of 493 town houses in Albertslund, Denmark SEK 610 M Development and upgrading of Alcoa quay, Mosjøen, Norway SEK 200 M School, research, and hospital building in Turku University, Finland SEK 560 M Children’s hospital, Göteborg SEK 1 BN

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SLIDE 12

2016-01-28 NCC AB 12

Passive house – Kiruna

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SLIDE 13

2016-01-28 NCC AB 13

Passive house – Kiruna

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SLIDE 14

2016-01-28 NCC AB 14

Stone material

  • Favorable demand

‒ Growing construction market ‒ Strong in Stockholm and Gothenburg

Asphalt

  • Favorable demand

‒ Weather

Road service

  • Stable demand

‒ Intense competition

Trends in stone material, asphalt and road service

Rydbokrossen

The Nordic market

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SLIDE 15

2016-01-28 NCC AB 15

Slightly lower volume

  • f stone material

Q4 7,650 Q4 7,285 2014 2015

Ohkola quarry, Finland

28,272 27,506

Volumes of stone material sold, thousands of tons

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SLIDE 16

2016-01-28 NCC AB 16

Stable asphalt volumes

Q4 1,572 Q4 1,585 2014 2015 6,216 6,139

Volumes of asphalt sold, thousands of tons

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SLIDE 17

2016-01-28 NCC AB 17

Private customers

  • Favorable market in general

‒ Prices in Sweden are flattening ‒ Strong German market ‒ Finland – challenging but good demand for small appartments

Investor markets

  • Strong demand for investor packages

in Germany, Sweden and Finland

Trends in residential markets

Folkboende, Munkedal

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SLIDE 18

2016-01-28 NCC AB 18

Q4 2014 Q4 2015

Denmark Norway

2,299 2,253

Investor packages

  • St. Petersburg

Baltic Countries Germany Finland Sweden

Gartenstrasse, Berlin

Higher sales to investors

  • No. of housing units sold
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SLIDE 19

2016-01-28 NCC AB 19

8,778 units in production

Design Quattro, Ytterby

Number of housing units For private customers For investors Total

  • Dec. 31,

2015

  • Dec. 31,

2014

  • Dec. 31,

2015

  • Dec. 31,

2014

  • Dec. 31,

2015

  • Dec. 31,

2014 Ongoing production

6,432 5,952 2,346 1,735 8,778 7,687

Sales rate, %

60 58 94 100 69 67

Sales including bookings, %

66 70 94 100 73 77

Completion rate, %

46 45 69 65 52 50

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SLIDE 20

2016-01-28 NCC AB 20

Main starts in three countries

Q4 2014 Q4 2015

2,849 2,040

Design Duo, Tyra, Örebro

Investor packages

  • St. Petersburg

Baltic Countries Germany Finland Denmark Norway Sweden

  • No. of housing starts
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SLIDE 21

2016-01-28 NCC AB 21

Some of the started housing projects in Q4

Kotisiilo, Järvänpää, Finland 49 units Sebastianstrasse, Köln-Niehl, Germany 34 units Lapsu, Riga, Latvia 46 units Gröndal Strand, Stockholm, Sweden 93 units

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SLIDE 22

2016-01-28 NCC AB 22

Strong ending of 2016

Estimated completion

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 2017 Later Investor packages Sweden Norway Denmark Finland Germany Baltic countries

  • St. Petersburg

Portion sold

  • No. of housing units

273 sold and completed housing units, to be recognized

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SLIDE 23

2016-01-28 NCC AB 23

Higher number of units

Estimated units to complete 2016

Q4 2014

  • Est. completion 2015

Q4 2015

  • Est. completion 2016

4,704 4,261

Treseburger-Strasse, Berlin

Investor packages

  • St. Petersburg

Baltic Countries Germany Finland Denmark Norway Sweden

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SLIDE 24

2016-01-28 NCC AB 24

Housing portfolio

Housing for private customers, ongoing production

  • Dec. 31, 2015 (Dec. 31, 2014)

Number of housing units Estimated value

34% (29) 11% (8) 22% (36) 4% (2) 22% (17) 5% (4) 2% (4) Sweden Finland

  • St. Petersburg

Baltic Countries Germany Denmark Norway 48% (41) 8% (7) 5% (11) 1% (1) 26% (20) 8% (12) 4% (8) Sweden Finland

  • St. Petersburg

Baltic Countries Germany Denmark Norway

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SLIDE 25

2016-01-28 NCC AB 25

Investor market

  • High interest in the Nordic market
  • Finland

‒ Cautious investors

Rental market

  • Strong demand in Sweden
  • Stable in Denmark
  • Increased vacancies in Norway
  • Weak demand in Finland

Trends in Nordic property market

Portland Towers, Copenhagen

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SLIDE 26

2016-01-28 NCC AB 26

Torsplan 2, office property in Hagastaden, Stockholm

  • Company transaction at a value of approx. SEK 1.6 BN
  • Total leasable floor space approx. 23,000 sqm.
  • Positive impact on earnings in the first quarter of 2017

Office property in Hyllie in Malmö, Sweden

  • Underlying property value approx. SEK 320 M
  • Total leasable space 7,300 sqm.
  • Positive impact on earnings in the second quarter of 2016

Office projects sold in Q4

Torsplan 2, Stockholm

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SLIDE 27

2016-01-28 NCC AB 27

Project starts in Q4

Project Type Location Lettable area, sqm Letting ratio Tornby 2 Retail Linköping, Sweden 9,500 48% Önskebrunnen Logistics Upplands-Bro, Sweden 13,800 0% Zenit 2 Office Aarhus, Denmark 3,600 0%

Önskebrunnen, Upplands-Bro

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SLIDE 28

2016-01-28 NCC AB 28

Good lease in the quarter – 16,300 sqm

Leased floor space, sqm

50,000 100,000 150,000 200,000 250,000 300,000 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 Leasable area beginning of quarter Leased in quarter Previous leased area

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SLIDE 29

2016-01-28 NCC AB 29

Property portfolio

Leasable space, sqm, in ongoing or completed projects not recognized in profit

50,000 100,000 150,000 200,000 250,000 300,000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Sweden Norway Denmark Finland

14

  • No. of projects

22 25 17 24 16 17 17 16 15 14 14

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SLIDE 30

2016-01-28 NCC AB 30

Ann-Sofie Danielsson

Folkboende, Munkedal

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SLIDE 31

2016-01-28 NCC AB 31

Q4 2015 in brief

1,140 1,332 1,547 1,101 1,650 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 Operating profit, SEK M

Folkboende Vapelhöjden

  • Best Q4 ever
  • Best EBIT ever
  • Very strong cash flow
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SLIDE 32

2016-01-28 NCC AB 32

Income statement

SEK M Oct.-Dec. 2015 Oct.-Dec. 2014 Jan.-Dec. 2015 Jan.-Dec. 2014 Net sales 22,412 18,760 62,495 56,867 Gross profit 2,759 1,999 6,486 5,691 Selling and administrative expenses

  • 1,052
  • 923
  • 3,405
  • 3,117

Cost ratio Other 4.6%

  • 57

4.9% 24 5.4%

  • 42

5.5% 31 Operating profit 1,650 1,101 3,039 2,604 Financial items

  • 89
  • 84
  • 383
  • 370

Profit after financial items 1,562 1,017 2,656 2,234 Tax

  • 320
  • 140
  • 536
  • 396

Tax rate 20.5% 13.8% 20.2% 17.7% Profit for the period 1,241 878 2,120 1,838

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SLIDE 33

SEK M Oct.-Dec. 2015 Oct.-Dec. 2014 Jan.-Dec. 2015 Jan.-Dec. 2014 NCC Construction Sweden 279 263 743 640 NCC Construction Denmark 104 99 321 281 NCC Construction Finland 62 28 159 111 NCC Construction Norway 24 44

  • 41

146 NCC Roads 126 186 349 459 NCC Housing 998 493 1,368 949 NCC Property Development 201 43 423 169 Other and eliminations

  • 144
  • 55
  • 282
  • 151

Operating profit 1,650 1,101 3,039 2,604

2016-01-28 NCC AB 33

Operating profit/loss per business area

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SLIDE 34

SEK M Oct.-Dec. 2015 Oct.-Dec. 2014 Jan.-Dec. 2015 Jan.-Dec. 2014 NCC Construction Sweden 279 263 743 640 NCC Construction Denmark 104 99 321 281 NCC Construction Finland 62 28 159 111 NCC Construction Norway 24 44

  • 41

146 NCC Roads 126 186 349 459 NCC Housing 998 493 1,368 949 NCC Property Development 201 43 423 169 Other and eliminations

  • 144
  • 55
  • 282
  • 151

Operating profit 1,650 1,101 3,039 2,604

2016-01-28 NCC AB 34

Operating profit/loss per business area

Oct-Dec. 2015 Oct.-Dec. 2014 NCC HQ and International Projects

  • 133
  • 68

Competition infrigment fee

  • 82

Internal gains 56 8 Group adjustments 15 6 Total

  • 144
  • 55
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SLIDE 35

1 2 3 4 5 100 200 300 400 500 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4

2016-01-28 NCC AB 35

NCC Construction

SEK M % Operating profit Operating margin SEK M Orders received Net sales

  • Net sales SEK 12,023 M

(11,637)

  • Higher operating profit

SEK 469 M (433)

  • Operating margin

3.9% (3.7%)

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SLIDE 36

600 1,200 1,800 2,400 3,000 3,600 4,200 4,800 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4

  • 60
  • 40
  • 20

20 40 60

  • 600
  • 400
  • 200

200 400 600 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4

2016-01-28 NCC AB 36

NCC Roads

SEK M Operating profit/loss Operating margin SEK M Net sales %

Quarter 4

  • Operation result 126 (186)

MSEK

  • Closing plants and cost for

reorganization -81 MSEK

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SLIDE 37

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4

2016-01-28 NCC AB 37

NCC Housing

Net sales 3 6 9 12 15 200 400 600 800 1,000 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4

Oberer-Schuetzenrain, Leonberg

SEK M SEK M Operating profit Operating margin %

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SLIDE 38

2016-01-28 NCC AB 38

Higher number of profit recognized units

Number of housing units Oct.-Dec. 2015 Oct.-Dec. 2014 Sweden 446 147 Denmark 117 125 Finland 236 360 Baltic countries 63 103

  • St. Petersburg

864 477 Norway 9 10 Germany 452 506 Total, private customers 2,187 1,728 Investor packages 987 708 Total 3,174 2,436

Kv Trevnaden, Malmö

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SLIDE 39

2016-01-28 NCC AB 39

NCC Property Development

100 200 300 400 500 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 500 1,000 1,500 2,000 2,500 3,000 3,500 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Net sales SEK M SEK M Operating profit/loss

Profit recognized units Q4

  • Ullevi Park 4, Gothenburg,

Sweden (office)

  • Hälsobrunnen, Upplands-

Bro, Sweden (logistics)

  • Alberga D, Espoo, Finland

(office)

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SLIDE 40

2016-01-28 NCC AB 40

Balance sheet

SEK BN

11.4 13.6 7.3 7.3 13.3 12.3 5.1 4.4 1.9 1.8

  • Dec. 31

2014

  • Dec. 31

2015 Goodwill Property projects Housing projects Accounts receivable and receivable from property sales Other assets 39.0 39.4

Weidenpesch, Köln

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SLIDE 41

2016-01-28 NCC AB 41

Strong cash flow

Mimer, Stockholm

SEK M Oct.-Dec. 2015 Oct.-Dec. 2014 Jan.-Dec. 2015 Jan.-Dec. 2014 From operating activities 2,204 1,427 3,436 2,273 From property projects 483 481 671 145 From housing projects 1,887 1,060 175

  • 761

Other working capital

  • 18

634

  • 222
  • 313

Investing activities

  • 150
  • 175
  • 730
  • 771

Cash flow before financing 4,405 3,428 3,331 574

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SLIDE 42

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4

2016-01-28 NCC AB 42

Net indebtedness

Net indebtedness excl. tenant housing and housing associations, SEK M Net indebtedness, incl. tenant housing and housing associations, SEK M Debt/equity ratio, times Pension liability, IAS 19, SEK M

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SLIDE 43

43

Shareholders decision on dividend at Annual general meeting April 12, 2016

Spin-off Housing

2016-01-28 NCC AB

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SLIDE 44

44

NCC without Housing

2015

53,116 13,069 NCC Housing

Net sales

1,678 1,368 NCC Housing

EBIT

2,044 1,287 NCC Housing

Cash flow

SEK M

2016-01-28 NCC AB

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SLIDE 45

45

Capital structure NCC Q4 2015

39.4 19.1 Total assets Capital employed

SEK BN

2016-01-28 NCC AB

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SLIDE 46

46

Capital structure NCC

If spin off Q4 2015

24.1 5.0 0.4 Total assets Operating capital employed

Equity Net debt SEK BN

2016-01-28 NCC AB

Equity/assets ratio 21%

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SLIDE 47

47

Capital structure Housing

If spin off Q4 2015

15.3 4.7 3.1 1.1 Total assets Operating capital employed

Equity Net debt 4.2, where of loans in Finnish housing companies and Swedish tenant

  • wner associations, 3.1

SEK BN

2016-01-28 NCC AB

Equity/assets ratio 31%

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SLIDE 48

48

Financial objectives NCC Housing

Return on Capital Employed 10-15% NCC Housing’s dividend policy is to distribute yearly at least 40% of after-tax profit to the shareholders Equity/assets ratio >30%

2016-01-28 NCC AB

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SLIDE 49

2016-01-28 NCC AB 49

Joachim Hallengren

President NCC Housing

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SLIDE 50

Strong sales and EBIT development continues

200 400 600 800 1,000 1,200 1,400 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2011 2012 2013 2014 2015 EBIT margin Net sales, SEK M EBIT, SEK M 8.0% 9.7 % 6.7% 10.5% 9.3%

2016-01-28 NCC AB 50

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SLIDE 51

2016-01-28 NCC AB 51

  • Focus on affordable housing in the Nordics,

Germany, St. Petersburg and Baltic Countries

  • Efficient capital allocation and grow
  • ur German operations
  • Cost efficiency
  • Increase level of industralization

and standardization

  • Increasing differentiation through

customer focus

Strategy New Housing

Bahrfeldtstrasse, Berlin

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SLIDE 52

2016-01-28 NCC AB 52

  • Strong market positions through deep local knowledge
  • Housing operates in markets with long-term,

favorable trends

  • Geographic diversification enables efficient

use of capital

  • Diversified offer reduces risk
  • Stable growth with healthy profitability
  • Attractive portfolio of development rights

and projects

  • Good customer insight

Strengths and competitive advantages

Musterwohnung, Langen

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SLIDE 53

2016-01-28 NCC AB 53 VDC,Denmark

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SLIDE 54

2016-01-28 NCC AB 54

  • Best result ever
  • Strong development for NCC Housing
  • Construction business in the right direction
  • Mixed result from industrial business
  • Improved result in Property Development
  • Strong cash flow
  • Good foundation for 2016

Summary 2015

Kiruna

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SLIDE 55

2016-01-28 NCC AB 55

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SLIDE 56

2016-01-28 NCC AB 56

Contact information

IR Manager Johan Bergman Tel: +46 (0)8-585 523 53, +46 (0)70-354 80 35 johan.bergman@ncc.se