Nordecon As · OMXTSE:NCN1T
Nordecon As — Nordecon International AS — FY2009 Earnings Presentation
24 slides from Nordecon As's earnings presentation, 2010
Slide 1: Investor presentation
® NORDECON Investor presentation
Slide 2: Nordecon International overview
Nordecon International overview
Slide 3: Unified Nordecon
Unified Nordecon Former name New name Estonia: AS Eesti Ehitus Nordecon International AS AS Linnaehitus Nordecon Ehitus AS AS Aspi Nordecon Infra AS Latvia: SIA Abagars Nordecon Infra SIA Lithuania: UAB Eurocon LT Nordecon Statyba UAB Ukraine: LLC Eurocon Ukraine LLC Eurocon Ukraine
Slide 4: Nordecon International in brief
Nordecon International in brief Leading general construction contractor and construction project management company in Estonia. Nordecon International is represented in all major industry segments with approximately 20% of revenue coming from other Baltic and Ukrainian markets. Over 1 100 employees,
Slide 5: Nordecon International Business Model
Nordecon International Business Model industrial commercial public buildings residential premises and buildings buildings warehouses Residential and non-residential construction SUPERSTRUCTURE INFRASTRUCTURE Civil Engineering Road projects Other infrastructure road construction hydro-technical struc
Slide 6: Group's strengths
Group’s strengths An organisation / shareholders oriented towards long-term profitable growth Organisationally separate engineering and construction businesses A flexible, horizontally integrated business model across the Group Experienced management Professional and loyal employees Relative conserv
Slide 7: Nordecon International Strategy
Nordecon International Strategy
Slide 8: Group's strategy in 2009-2010
Group’s strategy in 2009-2010 Reinforce its positions in the home market Redesign corporate structure, division of operations and activities Identifying and taking advantage of additional synergies in enhancing the efficiency of the subsidiaries’ sales, performance and purchasing operations Centrali
Slide 9: Group's strategy results by 2013
Group’s strategy results by 2013 Market leader in Estonia in both buildings construction and engineering Earn 50 per cent of the revenue for 2013 in foreign markets* Separate buildings construction and engineering subsidiaries in both Latvia and Lithuania Penetrate the Ukrainian engineering market,
Slide 10: In 2013 half of revenue from foreign markets
In 2013 half of revenue from foreign markets • To operate in Latvia and Lithuania on both construction and civil engineering markets via separate subsidiaries • In Ukraine to expand into civil engineering market • If possible, to enter Belorussia’s construction market • Half of revenue from foreign
Slide 11: Changes ensure cost-effectiveness of the Group
Changes ensure cost-effectiveness of the Group Nordecon International gradually becomes the holding corporation Nordecon International manages expansion and development on selected markets - centralization of support services - centralizing competences of management and business activities on approp
Slide 12: Group's structure by 2013
Group’s structure by 2013 Light colours indicate subgroups which currently do not yet exist but reflect the Group’s opportunities for future growth
Slide 13: Streamlining group structure in 2009
Streamlining group structure in 2009 Former structures related to AS Eesti Ehitus’ main activity will be divided into two within the year: – pan-Estonian civil engineering company AS Nordecon Infra – pan-Estonian construction company AS Nordecon Ehitus
Slide 14: Nordecon International Financial Information 12m 2009
Nordecon International Financial Information 12m 2009
Slide 15: Revenue and Profit
Revenue and Profit Revenue Operating profit Gross profit 247 205 250 000 239 798 35 000 31 954 30 000 200 000 25 000 revenue (tEUR) 154 594 20 000 Profit (tEUR) 22 875 150 000 19 651 15 000 13 324 10 000 100 000 8 711 5 000 0 50 000 -8 100 -5 000 0 -10 000 12m 2007 12m 2008 12m 2009
Slide 16: Revenue by Geographic Regions
Revenue by Geographic Regions 12m 2007 12m 2008 12m 2009 Estonia Estonia Estonia Ukraine Ukraine Ukraine Lithuania Lithuania Latvia Latvia 12m 2007 12m 2008 12m 2009 Estonia 88% 80% 86% Ukraine 12% 11% 3% Latvia 0% 6% 11% Lithuania 1% 2% 0%
Slide 17: Key Margins
Key Margins Gross margin Operating margin Administrative expenses 14% 13,3% 9,3% 9% 8,2% 5,6% 5,4% 5,2% 4% 4,6% 4,7% -1% 12m 2007 12m 2008 12m 2009 -5,2% -6%
Slide 18: Order Book
Order Book Order Book 180 000 161 482 160 000 141 932 140 000 Order Book tEUR 120 000 97 827 100 000 80 000 60 000 40 000 20 000 0 12m 2007 12m 2008 12m 2009
Slide 19: Revenue Distribution by Segments
Revenue Distribution by Segments Buildings Civil engineering 100 90 80 37 47 70 55 % of revenue 60 50 40 30 63 53 20 45 10 0 12m 2007 12m 2008 12m 2009
Slide 20: Revenue Distribution in Buildings Segment
Revenue Distribution in Buildings Segment Commercial buildings Industrial facilities Residential buildings Public buildings 100 14 18 90 19 80 11 6 14 70 10 16 % of revenue 60 9 50 40 66 30 58 59 20 10 0 12m 2007 12m 2008 12m 2009
Slide 21: Revenue Distribution in Infrastructure Segment
Revenue Distribution in Infrastructure Segment Road construction Other engineering Port construction Environmental engineering 100 6 8 13 90 12 80 24 70 33 % of revenue 31 60 25 50 13 40 30 49 45 20 41 10 0 12m 2007 12m 2008 12m 2009
Slide 22: Nordecon International Market Outlook 2009-2010
Nordecon International Market Outlook 2009-2010
Slide 23: Market Outlook 2009-2010: market consolidation
Market Outlook 2009-2010 Expected pattern of market consolidation: Big companies will get bigger Pressure on medium sized companies to change/consolidate (move up or down, liquidated) Small companies will specialize and fight for survival BIG COMPANIES MEDIUM COMPANIES SMALL COMPANIES
Slide 24: Market Outlook 2009-2010: expected changes
Market Outlook 2009-2010 Expected changes: total demand in construction market declines. Additional infrastructure projects not able to sustain market volumes. In Estonia market volumes to drop 50 per cent compared to boom times fierce competition in segments where demand is remaining hard times for
Nordecon International AS — FY2009 Earnings Presentation on 6ix