Slide 1: Consti Group Plc Half-Year Financial Report 1.1.2016 – 30.6.2016
CONSTI GROUP PLC HALF-YEAR FINANCIAL REPORT 1.1.2016 – 30.6.2016 CEO Marko Holopainen CFO Esa Korkeela Building renovation specialist | www.consti.fi
Slide 2: Contents
Contents Highlights and Group performance Result, cash flow and financial position Market outlook and guidance Building renovation specialist | www.consti.fi
Slide 3: Highlights of the first half of 2016 – Order backlog reached a record high
Highlights of the first half of 2016 – Order backlog reached a record high Highlights of 4-6/2016 (y-o-y comparison in brackets) Net sales EUR 64.8 (63.4) million, growth +2.3% EBIT EUR 2.6 (2.3) million, EBIT margin 4.0% (3.7%) Number of Adjusted EBIT EUR 2.6 (2.4) million, adjusted EBIT margin 4.0
Slide 4: Quarterly performance overview – Growth in net sales, order intake and order backlog continued
Quarterly performance overview – Growth in net sales, order intake and order backlog continued in Q2/2016 Quarterly net sales (EUR m) Quarterly order intake (EUR m) Quarterly order backlog (EUR m) 212,6 75,6 74,9 74,5 199,8 70,4 69,9 191,7 181,3 64,8 179,9 64,3 63,6 63,4 172,3 169,6 163,4 52,3 51,4
Slide 5: Consti quarterly net sales development – Growth continued in the second quarter
Consti quarterly net sales development – Growth continued in the second quarter Quarterly net sales development Q3/2014 – Q2/2016 (EUR m) Comments ■ Q2/2016 net sales EUR 64.8m (63.4m), 85 y-o-y sales growth +2.3% 74,9 75 – Q2/16 organic growth +1.5% 69,9 70,4 Quarterly Net sales (EUR million) 64,3
Slide 6: Consti quarterly order intake development
Consti quarterly order intake development – Order intake increased y-o-y in spite of tough comparison period Quarterly order intake development Q3/2014 – Q2/2016 (EUR m) Comments ■ Q2/2016 order intake EUR 75.6 million 85 (74.5m), up by 1.4% y-o-y 74,5 75,6 – Order intake growth was strong in 75 Tec
Slide 7: Consti quarterly order backlog development
Consti quarterly order backlog development – Backlog up by 6.4% y-o-y and +17.3% from year-end 2015 Quarterly order backlog development Q3/2014 – Q2/2016 (EUR m) Comments 250 ■ Q2/2016 order backlog on a record-high level at EUR 212.6 million (199.8m), 212,6 year-on-year growth +6.4% 199,8 200 191,7
Slide 8: Result, Cash Flow and Financial Position
Result, Cash Flow and Financial Position 7 16/08/2016 Building renovation specialist | www.consti.fi
Slide 9: Consti quarterly adjusted EBIT development
Consti quarterly adjusted EBIT1 development – Both absolute and relative profitability improved in Q2/2016 Quarterly EBIT development Q3/2014 – Q2/2016 (EUR m) Comments 10 8% ■ Q2/16 adjusted EBIT before IAC1 amounted to EUR 2.6 (2.4) million, or 9 4.0% (3.7%) of net sales 7% 6,2 % Quarterly adjuste
Slide 10: Consti quarterly cash conversion development
Consti quarterly cash conversion development – Free cash flow adversely impacted by NWC change in Q2/2016 Quarterly free cash flow and EBITDA Q3/2014 – Q2/2016 (EUR m) Comments 8 ■ Q2/2016 Free cash flow amounted to Average cash EUR 0.4m (4.9m), down by +92.8% y-o-y conversion1) 104% 7 Cash conversi
Slide 11: Consti quarterly net working capital development
Consti quarterly net working capital development – Release of NWC in H1/16 amounted to EUR 1.0 million Quarterly net working capital1) Q3/2014 – Q2/2016 (EUR m) Comments Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 ■ Net working capital EUR -8.4m (-10.5m) 0 at the end of Q2/2016 -1,2 – NWC EUR 2.
Slide 12: Consti quarterly balance sheet structure
Consti quarterly balance sheet structure – Balance sheet remained strong in the second quarter Quarterly net debt, equity ratio and gearing Q3/2014 – Q2/2016 Comments 60 100% ■ Q2/2016 net debt at EUR 17.8m (38.5m) 88,6 % – Net debt was impacted by dividend 50 76,1 % 80% distribution of EUR 3m in Ap
Slide 13: Maturity distribution of interest-bearing debt as at 30 June 2016
Consti’s maturity distribution of interest-bearing debt as at 30 June 2016 – Good financial flexibility going forward Maturity profile of interest-bearing debt1 (EUR m) Comments 30 ■ Consti changed its capital structure and refinanced its indebtedness in September 2015 25 – Long-term loan of EUR 20m
Slide 14: Number of shareholders gradually increasing
Number of shareholders gradually increasing, Consti personnel constitutes an important group of owners Consti’s largest shareholders (30 June 2016) Comments % of shares ■ Intera Partners divested its shares in 30 June 2016 and votes Consti Group Plc in June 1. Etera Mutual Pension Insurance Company
Slide 15: Market Outlook and Guidance
Market Outlook and Guidance 14 16/08/2016 Building renovation specialist | www.consti.fi
Slide 16: Lead indicators for Finnish construction suggest a favourable market environment
Lead indicators for the Finnish construction continue to suggest a favourable market environment going forward Economic Sentiment and Construction Confidence in Finland (2007 – 7/2016) Comments 150 ■ Economic sentiment in Finland remains Economic Sentiment Indicator still below long-term average, bu
Slide 17: Stable growth in renovation to continue, new building projected to grow strongly
Stable growth in renovation to continue going forward, new building projected to grow strongly in 2016 Finnish new building and renovation market development, 2011A – 2018O Comments EURbn Renovation volume (real) New building volume (real) ■ Euroconstruct expects stable growth in renovation to conti
Slide 18: Demand-driven renovation market growth supported by structural growth drivers
Demand-driven renovation market growth supported by a number of key structural growth drivers Ageing building stock Energy efficiency Finnish building stock by construction year Million Buildings achieve age of 50 years (approx): m2 Urbanisation and concentration of 100 ~2016 ~2025-2035 ~2045 renova
Slide 19: Tender requests developed positively in H1/16 and order intake increased
The amount of tender requests developed positively in H1/16 and order intake increased towards the period-end TECHNICAL BUILDING RENOVATION BUILDING SERVICES CONTRACTING FACADES H1/16 order intake: H1/16 order intake: H1/16 order intake: EUR 51.7m (+33.7% yoy) EUR 24.4m (-46.8% yoy) EUR 52.8m (+19.7
Slide 20: Strengthening order backlog to support organic growth going forward
Strengthening order backlog to support organic growth going forward Quarterly order backlog and R12m net sales Q4/2014 – Q2/2016 (EUR m) Comments 300 ■ Rolling 12-month net sales temporarily flattening out in Q2/2016 mainly due to R12m Net sales and order backlog (EUR million) 260 261 decrease in Bu
Slide 21: Guidance for 2016 specified after H1/2016
Guidance for 2016 specified after H1/2016 “The Company estimates that its total annual net sales for 2016 will grow approximately 5-10 percent compared to 2015.” 20 16/08/2016 Building renovation specialist | www.consti.fi
Slide 22: Consti Group's strategic themes
Consti Group’s strategic themes 1 Exploit market position and expand full offering to Finland’s growth centers ─ Grow in businesses where Consti has long experience and a strong position ─ Expand full offering to the growth centers of Finland ─ Acquisitions to support growth 2 Strengthen the offerin
Slide 23: Active screening of M&A candidates
Active screening of M&A candidates - Consti’s knock-out criteria used to shortlist potential M&A targets Demonstrated financial Consti Group’s strategy Good organisational fit Relevant M&A targets track record N=X N = X-Y N = X-Y-Z N = ~50 ■ Expansion in Finland’s ■ Established strong local ■ Minimi
Slide 24: Summary
Summary Order backlog reached a record-high Overall, the best second quarter in Consti’s history Market situation during H1/2016 in general was good Strengthening order backlog to support organic growth going forward Strategy implementation progressing 23 16/08/2016 Building renovation specialist |
Slide 25: Half-Year Financial Report 1-6/2016 Consti Group Plc
HALF-YEAR FINANCIAL REPORT 1-6/2016 CONSTI GROUP PLC H1 CONSTI GROUP PLC HOPEATIE 2 FI-00440, HELSINKI BUSINESS 24 ID 16/08/2016 2203605-05 Building renovation specialist | www.consti.fi WWW.CONSTI.FI