Nordecon As · OMXTSE:NCN1T
Nordecon As — Nordecon International — Q1 2009 Earnings Presentation
24 slides from Nordecon As's earnings presentation, 2009
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 AS Nordecon International AS Linnaehitus AS Nordecon Ehitus AS Aspi AS Nordecon Infra Latvia: SIA Abagars SIA Nordecon Infra Lithuania: UAB Eurocon LT UAB Nordecon Statyba 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 1 200 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 Rela
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 Acquire new companies and developing existing companies in Latvia, Lithuania and Ukraine Identifying and taking advantage of additional synergies in en
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 m
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 ap
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 1Q 2009
Nordecon International Financial Information 1Q 2009
Slide 15: Revenue and Profit
Revenue and Profit Revenue Operating profit Gross profit 49 436 50 000 7 000 45 000 6 000 6 478 37 750 40 000 35 774 Revenue (tEUR) 5 000 Profit (tEUR) 35 000 4 000 30 000 4 215 25 000 3 901 3 000 20 000 2 384 2 355 2 000 15 000 1 000 10 000 -224 0 5 000 0 -1 000 Q1 2007 Q1 2008 Q1 2009
Slide 16: Revenue by Geographic Regions
Revenue by Geographic Regions Q1 2009 Q1 2008 Q1 2007 EESTI EESTI UKRAINA EESTI UKRAINA UKRAINA LEEDU LEEDU LÄTI Q1 2009 Q1 2008 Q1 2007 EESTI 83% 82% 83% UKRAINA 3% 16% 17% LÄTI 12% 0% 0% LEEDU 2% 2% 0%
Slide 17: Key Margins
Key Margins Gross margin Operating margin Administrative expenses 15% 13.1% 11.8% 10% 7.9% 6.7% 6.2% 5% 6.3% 5.3% 5.6% -0.6% 0% Q1 2007 Q1 2008 Q1 2009 -5%
Slide 18: Order Backlog
Order Backlog Order Backlog 250 000 215 298 204 326 200 000 Order backlog tEUR 150 000 109 556 100 000 50 000 0 Q1 2007 Q1 2008 Q1 2009
Slide 19: Revenue Distribution by Segments
Revenue Distribution by Segments Buildings Civil engineering 100 90 20 80 42 45 70 % of revenue 60 50 40 80 30 58 55 20 10 0 Q1 2007 Q1 2008 Q1 2009
Slide 20: Revenue Distribution in Buildings Segment
Revenue Distribution in Buildings Segment Commercial buildings Industrial facilities Residential buildings Public buildings 100 12 15 14 90 4 80 8 8 11 70 14 16 % of revenue 60 50 40 75 30 63 59 20 10 0 Q1 2007 Q1 2008 Q1 2009
Slide 21: Revenue Distribution in Infrastructure Segment
Revenue Distribution in Infrastructure Segment Road construction Other engineering Port construction Environmental engineering 100 5 90 18 11 17 80 70 22 % of revenue 43 60 58 50 40 41 30 20 41 10 24 20 0 Q1 2007 Q1 2008 Q1 2009
Slide 22: Nordecon International Market Outlook 2009-2010
Nordecon International Market Outlook 2009-2010
Slide 23: Market Outlook 2009-2010
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
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 tim
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