Slide 1: AS Merko Ehitus 6 months and Q2 2018 interim report
AS MERKO EHITUS 6 months and Q2 2018 interim report 09 August 2018 Maakri Kvartal in Estonia
Slide 2: Agenda
Agenda 1. Key Highlights 4. Stock Exchange Overview 2. Business Review 5. Market Outlook 3. Financial Position 6. Strategic Directions 2
Slide 3: Merko Group Key Highlights
Merko Group Key Highlights Q2 2018 revenue EUR 103m and in 6M EUR 184m, up 43% compared to 6M 2017 More than half of revenue (52.6%) in 6 months earned outside Estonia; greatest growth in Latvia, supported by large contracts in progress. Shortage of sub-contractors, growth of construction inpu
Slide 4: Merko Group Key Financial Highlights
Merko Group Key Financial Highlights EUR million 6M 2018 6M 2017 Variance* Q2 2018 Q2 2017 Variance* Revenue 183.7 128.8 +42.6% 103.3 70.1 +46.2% EBITDA 8.2 6.0 +35.1% 6.4 4.1 +54.7% EBITDA margin (%) 4.4 4.7 6.2 5.9 Operating profit 7.2 4.7 +53.2% 5.9 3.5 +71.7% Operating profit margin (%) 3.9 3.7
Slide 5: Business Review: Construction service
BUSINESS REVIEW: Construction service GROUP 6 MONTHS' REVENUE BY SEGMENTS GROUP QUARTERLY REVENUE BY SEGMENTS in million euros in million euros 88,0 69,4 60,9 41,6 44,5 36,7 34,1 31,2 26,2 20,1 17,2 16,5 Estonian Other home markets Real estate development Estonian Other home markets Real estate deve
Slide 6: Business Review: Secured Order Book
BUSINESS REVIEW: Secured Order Book SECURED ORDER BOOK in million euros 388 396 400 344 288 292 326 279 270 300 247 243 256 247 224 217 192 179 194 200 166 167 186 100 45 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Slide 7: Business Review: Real Estate Development
BUSINESS REVIEW: Real Estate Development APARTMENTS SOLD AND APARTMENT REVENUE Group’s central business line pcs / in million euros 168 apartments (incl. 34 in joint venture) 13,3 sold for EUR 16m in 6M (6M 2017: 239, incl. 12,0 1 in joint venture, for EUR 27m). 10,5 117 98 In addition, there were
Slide 8: Financial Position
Financial Position CHANGE IN CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS in million euros in million euros 0,3 9,5 (21,9) 0,1 0,2 (0,0) (8,0) 0,1 0,1 39,2 33,5 (0,0) 0,0 0,0 27,2 (0,0) (0,0) 25,9 31.12.2017 Operating Investing Financing Currency 30.06.2018 31.12.2016 Operating Inve
Slide 9: Stock Exchange Overview
Stock Exchange Overview 15 600 P/B RATIO Market Cap EUR 174m times 1,38 1,31 1,26 (30.06.2017: EUR 163m) 1,21 12 +6.5% during 12M volume of transactions, thousand EUR 1,03 9 share price in EUR 300 6 3 31.12.2014 31.12.2015 31.12.2016 31.12.2017 30.06.2018 P/E RATIO 0 0 times 12/17 01/18 02/18 03/18
Slide 10: Construction Market
Construction Market BALTIC STATES CONSTRUCTION MARKETS (WITH OWN FORCES) 6 MONTHS CHANGE IN CONSTRUCTION PRICE INDEX ROLLING 12 MONTHS percentages in million euros 3 000 6 2 647 3,9 2 500 2 431 4 2,9 2 000 2 1,9 1 617 1 500 0 1 000 500 -2 2014 2015 2016 2017 2018 6M 2014 6M 2015 6M 2016 6M 2017 6M 2
Slide 11: Housing Market
Housing Market NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE INDEX (4 QUARTER ROLLING AVERAGE) (2013=100) 160 150 140 130 120 110 100 90 80 2014 2015 2016 2017 2018 Estonia new Estonia all Latvia new Latvia all Lithuania new Lithuania all Source: Eurostat The supply of new apartments i
Slide 12: 2018 Strategic Directions
2018 Strategic Directions Construction for client: Managing risks of large objects Preferred partner for private customers who value reliability and quality Clearer focus on construction tenders, efficiency of bidding resources Internal efficiency and cost savings, incl. with the help of tec
Slide 13: AS Merko Ehitus Group in Brief
AS Merko Ehitus Group in Brief AS Merko Ehitus is a construction and real estate development group operating in Estonia, Latvia, Lithuania and Norway BUSINESS SEGMENTS ESTONIA LATVIA LITHUANIA NORWAY • General construction • General construction • General construction • General construction • Civil
Slide 14: Contacts
Contacts Andres Trink Priit Roosimägi Chief Executive Officer Head of Group Finance Unit andres.trink@merko.ee priit.roosimagi@merko.ee AS Merko Ehitus Delta Plaza, 7th floor Pärnu road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 14
Slide 15: Disclaimer
Disclaimer ➢ This presentation has been prepared by AS Merko Ehitus (the Company) solely for your use and benefit for information purposes only. By accessing, downloading, reading or otherwise making available to yourself any content of the presentation, in whole or in part, you hereby agree to be b