Slide 1: Q2 2024
Q2 2024 Tomas Carlsson, CEO Susanne Lithander, CFO July 16, 2024 1 16 July 2024 © NCC | Q2 2024 Langelinie Quay, Copenhagen, Denm ark
Slide 2: A good second quarter
A good second quarter • Earnings up compared to last year • Strong comeback for Industry – volumes and earnings • Orders received on good level – order backlog healthy • Market outlook strong • No property transactions – no real change in market activity 2 16 July 2024 © NCC | Q2 2024
Slide 3: Good orders received
Good orders received Book-to-bill of 1.0. Disciplined approach to tenders SEK M Book-to-bill,R12 18,000 1.5 16,000 14,000 12,000 1.0 1.0 10,000 8,000 6,000 0.5 4,000 16,635 12,763 11,607 12,280 16,288 14,691 16,159 13,353 14,664 9,681 2,000 0 0.0 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Haakonsv
Slide 4: A healthy order backlog
A healthy order backlog SEK M 60,000 50,000 40,000 30,000 20,000 10,000 62,510 60,960 59,047 54,995 58,910 59,359 54,594 53,422 56,270 54,956 0 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Pumpstation, Kristianstad, 4 16 July 2024 © NCC | Q2 2024 Sweden
Slide 5: Train depot in Hagalund, Sweden, SEK 920 M
Train depot in Hagalund, Swimming hall in Vanda, Sweden, SEK 920 M Finland, SEK 460 M Refurbishment projects in Denmark, SEK 850 M
Slide 6: Net sales up in the quarter and on same level YTD
Ngt stenmaterial Net sales up in the quarter and on same level YTD SEK M 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 10,111 14,001 14,068 16,018 12,464 14,854 14,022 15,592 11,561 15,448 2,000 0 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 6 16 July 2024 © NCC | Q2 2024
Slide 7: EBIT up 24% in the quarter
EBIT up 24% in the quarter SEK M 1,000 800 600 400 200 474 510 544 152 503 789 358 623 0 -170 -100 -200 -400 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 7 16 July 2024 © NCC | Q2 2024
Slide 8: Industry main driver of Q2 improvement
Industry main driver of Q2 improvemet EBIT, Q2 Industry: EBIT 30% SEK M better than 2023 PD: No divestment but some small one-offs 8 16 July 2024 © NCC | Q2 2024
Slide 9: Contracting and Industry improves Jan-Jun
Contracting and Industry improves Jan-Jun EBIT, Q2 EBIT, Jan-June SEK M Smaller PD project in SEK M profit vs last year 9 16 July 2024 © NCC | Q2 2024
Slide 10: Financial targets
Financial targets Earnings per share Net debt Dividend policy ≥16.00 < 2.5 60% SEK x EBITDA of profit after tax Q2 2024, R12 Q2 2024, R12 2023 14.26 1.48 8.00 SEK x EBITDA SEK 2023 16.11 SEK 50% of profit after tax 10 16 July 2024 © NCC | Q2 2024
Slide 11: Health & Safety targets
Health & Safety targets LTIF4 ≤2.00 2026 Q2 2024 4.0 11 16 July 2024 © NCC | Q2 2024
Slide 12: The market outlook is generally good
The market outlook is generally good • Still divided but with many strong segments • Property transaction market remains slow with no positive impact yet from interest rate outlook 12 16 July 2024 © NCC | Q2 2024 T anum, Rescue station. Sweden
Slide 13: Susanne Lithander
Susanne Lithander 13 16 July 2024 © NCC | Q2 2024
Slide 14: NCC's Contracting units
NCC’s Some Building Nordics milestone Contracting units Business update Q2 • NCC Infrastructure • NCC Building Nordics • NCC Building Sweden • NCC Green Industry Transformation 14 16 July 2024 © NCC | Q2 2024 Hillerød Hospital, Denm ark
Slide 15: Strong orders received in Infrastructure in Q2
Strong orders received in Infrastructure in Q2 Healthy order backlog in all contracting units SEK M SEK M 5,000 20,000 4,500 4,000 15,000 3,500 3,000 2,500 10,000 2,000 1,500 5,000 1,000 500 3,522 4,638 4,731 3,824 3,543 2,620 17,263 17,561 17,951 14,168 14,954 14,303 0 0 Infrastructure Building Nor
Slide 16: Portfolio driven by public investments and careful segment selection
Portfolio driven by public investments and careful segment selection Orders received Jan-Jun Infrastructure Building Nordics Building Sweden Offices Offices Foundation Residential Residential Other Other Roads Other Industrial Refurbishment Groundworks Railways Public Refurbishment buildings Public
Slide 17: Showing stability over time
Showing stability over time Earnings stable in Infrastructure and Building Sweden, improved in Building Nordics SEK M Infrastructure % SEK M Building Nordics % SEK M Building Sweden % 6,000 4 6,000 4 6,000 4 5,000 5,000 5,000 3 3 3 4,000 4,000 4,000 3,000 2 3,000 2 3,000 2 2,000 2,000 2,000 1 1 1 1,
Slide 18: Margins in the contracting units
Margins in the contracting units EBIT margin, R12 % 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024 Infrastructure Building Nordics Building Sweden Internal target Excl divestment profit from Bergnäset in 2023 Centralen, Gothenburg, 18 16 July 2024 © NCC | Q2 2024 Sweden
Slide 19: NCC Green Industry Transformation
NCC Green Industry Transformation Business update Q2 • Strategic collaboration agreement with LKAB signed 19 16 July 2024 © NCC | Q2 2024
Slide 20: NCC Industry
NCC Industry Business update Q2 • Very strong quarter - orders received, net sales and earnings up • Strong start of the season • Successful implementation of change and diligent pricing 20 16 July 2024 © NCC | Q2 2024
Slide 21: Higher volumes than last year
NCC Industry Higher volumes than last year Asphalt sold, thousands of tons Stone materials sold, thousands of tons 2,000 9,000 1,800 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 3,000 600 400 2,000 199 188 173 1,532 1,737 1,334 1,531 1,716 1,222 6,347 7,970 7,132 6,993 5,829 7,004 6,647
Slide 22: Earnings up 30% and improved ROCE
NCC Industry Earnings up 30% and improved ROCE SEK M % SEK M % 400 6% 6 10,000 12% 12% 300 9,000 4 10% 200 8,000 9.7% 2 100 7,000 50 8% 240 23 281 281 99 368 0 0 6,000 5,378 -305 -261 -313 4,855 -100 5,000 6% -2 -200 4,000 -4 4% -300 3,000 -400 -6 2,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2.0% 2% 2022 202
Slide 23: NCC Property Development
NCC Property Development Portfolio update Q2 • Still a challenging market situation • 10 projects in the portfolio, all offices • No project sold or started • Four new letting contracts in MIMO 23 16 July 2024 © NCC | Q2 2024 W e Land, Helsinki, Fi nland
Slide 24: Letting ratio 72% - 82% in the completed projects
Letting ratio 72% - 82% in the completed projects Completion ratio all projects 82% Lettable space, sqm 300,000 100% 90% 250,000 82% 80% 72% 70% 200,000 60% 150,000 50% 40% 100,000 30% 20% 50,000 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 Previously let area, sqm Sold, no letting Let duri
Slide 25: Almost 10 bn SEK in operating capital employed
NCC Property Development Almost 10 bn SEK in operating capital employed Some small positive one-offs in earnings EBIT SEK M SEK M % 300 10,000 12% 12% 268 256 9,000 250 10% 8,000 200 183 7,000 8.4% 8% 6,000 150 5,000 9,926 6% 8,787 100 87 4,000 4% 3,000 50 42 29 30 2,000 1 2% 0 1,000 1.5% -18 0 0% -
Slide 26: MIMO projected in profit 2024
MIMO projected in profit 2024 An office project in Mölndal, Gothenburg Expected time of profit recognition for sold projects 2024 2025 2026 2027 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Arendal Albatross MIMO Park Central Ongoing unsold projects Completed unsold projects • Flow Hyllie, Malmö • Brom
Slide 27: Other & eliminations
Other & eliminations R12, FY Q2 Jul-Jun Jan-Dec SEK M 2024 2023 2023/2024 2023 Normally on app. same NCC Group common functions, subsidiaries and business area level first and second NCC Green Industry half of the year Transformation -122 -88 -383 -315 Cost for IT development represents ≈30% and Eli
Slide 28: Earnings
Earnings R12, 2023, Q2 Jul-Jun Jan-Dec SEK M 2024 2023 2023/2024 2023 Earnings in segments (all BAs) 715 552 1,982 Other & Eliminations -91 -49 -179 EBIT 623 503 1,670 1,802 Financial net -34 -10 -73 1 EBT 589 493 1,598 1,803 Tax -118 -86 -205 -230 Profit for the period 472 407 1,392 1,573 Earnings
Slide 29: Cashflow seasonally low but better than previous years
Cashflow seasonally low but better than previous years 2023, Jan- Q2 R12, Jul-Jun Dec SEK M SEK M 2024 2023 2023/2024 2023 1,500 OPERATING ACTIVITIES 1,000 From operating activities 669 598 2,039 2,122 500 From property projects -232 -603 -924 -1,684 0 Other changes in working -500 capital -726 -1,0
Slide 30: Corporate net debt on same level as last year
Corporate net debt on same level as last year SEK M 0 -3,377 -3,409 Net debt* / EBITDA -1,000 Target < 2.5x Jun 30, 2024, R12 1.48x -2,000 *Corporate net debt excluding pension liabilities and leasing liabilities -3,000 -4,000 Q2 2023 Q2 2024 30 16 July 2024 © NCC | Q2 2024
Slide 31: Tomas Carlsson
Tomas Carlsson 31 16 July 2024 © NCC | Q2 2024
Slide 32: In summary
In summary • A good quarter for NCC • Earnings up 24% • Good orders received • Industry has strong quarter – other business areas stable on good level • Property transaction market remains slow • Market outlook strong 32 16 July 2024 © NCC | Q2 2024 St Olavs, T rondheim, Norway
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Slide 34: Contact information
Contact information Tomas Carlsson, CEO tomas.carlsson@ncc.se Susanne Lithander, CFO susanne.lithander@ncc.se Tel +46 730 37 08 74 Maria Grimberg, Head of Communication & IR maria.grimberg@ncc.se Tel +46 708 96 12 88 ncc.com/Investor-relations For definitions and details, please see the quarterly re
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