Ncc Ab Class A · OMXSTO:NCC_A
Ncc Ab Class A — Investor Day (November 2014)
38 slides from Ncc Ab Class A's investor day presentation, Nov 25, 2014
Slide 1: NCC Housing moving to the next level
NCC Housing moving to the next level Joachim Hallengren Business Area Manager NCC Housing Glienicke Sonnengarten, Germany 2014-11-25 NCC AB 1
Slide 2: NCC Housing
NCC Housing Net Operating Capital employed Average number sales profit of employees 14% 22% 49% 6% Share of NCC 2013 in total 2014-11-25 NCC AB 2
Slide 3: Operating environment and market update
Operating environment and market update 2014-11-25 NCC AB 3
Slide 4: Solid performance in 8 countries with strong market position
Solid performance in 8 countries with strong market position • Large residential operations – 7,950 units in production • Balanced and diversified portfolio • Private customers and investors • # 1 residential developer in Germany for 2nd consecutive year • Successful application of building systems
Slide 5: Building rights trends
Building rights trends 35,000 32,900 Of which building rights not in the balance sheet Q4 Q3 2012 2014 2014-11-25 NCC AB 5
Slide 6: Portfolio of development rights
Portfolio of development rights Ongoing and completed housing Number 16,000 35% 34% 12,000 8,000 16% 4,000 8% 6% 2% 0 Not General Detailed Building Ongoing Completed planned plan plan permit permit production 2014-11-25 NCC AB 6
Slide 7: Operations in 8 countries with solid market position
Operations in 8 countries with solid market position 2014-11-25 NCC AB 7
Slide 8: NCC Housing's markets: Germany
NCC Housing’s markets Q3 2014 Germany Development rights 4,200 (13%) of which, options 2,600 Total units in production 1,630 Where of to private customers 1,090 (17%) Units for sale 425 (14%) Figure in parentheses pertains to the proportion of NCC Housing total 2014-11-25 NCC AB 8
Slide 9: Operations in 8 countries with solid market position
Operations in 8 countries with solid market position 2014-11-25 NCC AB 9
Slide 10: NCC Housing's markets: Sweden
NCC Housing’s markets Q3 2014 Sweden Development rights 10,300 (31%) of which, options 2,600 Total units in production 1,746 Where of private customers 1,458 (23%) Units for sale 681 (23%) Figure in parentheses pertains to the proportion of NCC Housing total 2014-11-25 NCC AB 10
Slide 11: Operations in 8 countries with solid market position
Operations in 8 countries with solid market position 2014-11-25 NCC AB 11
Slide 12: NCC Housing's markets: Finland
NCC Housing’s markets Q3 2014 Finland Development rights 8,800 (27%) of which, options 5,200 Total units in production 1,451 Where of private customers 828 (13%) Units for sale 507 (17%) Figure in parentheses pertains to the proportion of NCC Housing total 2014-11-25 NCC AB 12
Slide 13: Operations in 8 countries with solid market position
Operations in 8 countries with solid market position 2014-11-25 NCC AB 13
Slide 14: NCC Housing's markets: St. Petersburg
NCC Housing’s markets Q3 2014 St. Petersburg Development rights 5,000 (15%) Total units in production 2,436 Where of private customers 2,362 (37%) Units for sale 1,031 (34%) Figure in parentheses pertains to the proportion of NCC Housing total 2014-11-25 NCC AB 14
Slide 15: Operations in 8 countries with solid market position
Operations in 8 countries with solid market position 2014-11-25 NCC AB 15
Slide 16: NCC Housing's markets: Norway
NCC Housing’s markets Q3 2014 Norway (private customers) Development rights 1,900 (6%) of which, options 500 Total units in production 88 (1%) Units for sale 81 (3%) Figure in parentheses pertains to the proportion of NCC Housing total 2014-11-25 NCC AB 16
Slide 17: Operations in 8 countries with solid market position
Operations in 8 countries with solid market position 2014-11-25 NCC AB 17
Slide 18: NCC Housing's markets: Denmark
NCC Housing’s markets Q1 2013 Denmark (private customers) Development rights 700 (2%) Total units in production 354 (6%) Units for sale 119 (4%) Figure in parentheses pertains to the proportion of NCC Housing total 2014-11-25 NCC AB 18
Slide 19: Operations in 8 countries with solid market position
Operations in 8 countries with solid market position 2014-11-25 NCC AB 19
Slide 20: NCC Housing's markets: Baltics
NCC Housing’s markets Q3 2014 Baltics (private customers) Development rights 2,000 (6%) Total units in production 245 (3%) Units for sale 181 (6%) Figure in parentheses pertains to the proportion of NCC Housing total 2014-11-25 NCC AB 20
Slide 21: Market development
Market development Private customers Best market conditions in Sweden, Germany and S:t Petersburg Challenging market in Finland Investor market Healthy demand for package deals in Germany, Sweden and Finland Outlook 2015 Strong demand – particularly private customers in Sweden and Germany Weak deman
Slide 22: NCC Housing in St. Petersburg, Russia
NCC Housing in St. Petersburg, Russia 2014-11-25 NCC AB 22
Slide 23: New production private customers in St.Petersburg
New production private customers in St.Petersburg Units 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 2007 2008 2009 2010 2011 2012 2013 2014F 2014-11-25 NCC AB 23
Slide 24: Market trends and drivers
Market trends and drivers St. Petersburg third largest city in Europe Russian GDP to reach max 0.5% in 2015 – forecast St. Petersburg GDP 2% in 2014 Migration and continued population growth Strong consumer confidence in real estate Living space per capita: 24.0 sq.m. Mortgage market unchanged Conti
Slide 25: Financing source St. Petersburg
Financing source Core St. Petersburg 25% Customer confidence in 75% investment in real estate Positive cash flow early in Bank finance development projects Own financing Affordable 40% 60% Registration system: time consuming process a challenge 2014-11-25 NCC AB 25
Slide 26: Film
Film 2014-11-25 NCC AB 26
Slide 27: Actions and achievements 2013-2014
Actions and achievements 2013-2014 2014-11-25 NCC AB 27
Slide 28: Focus areas Housing Inc.
Focus areas Housing Inc. Customer Financial performance People & Organization Awareness Sustainability Housing Inc. Implementation Becoming the leading residential developer in Northern Europe start Q2 2014 2014-11-25 NCC AB 28
Slide 29: Actions taken
Actions taken Focus on sales and customers Focus on marketing in particular digital presence Focus on capital allocated in land bank Focus on margins and ROCE Focus on building systems, reduced lead times and construction costs Focus on getting our people on board the change journey 2014-11-25 NCC A
Slide 30: Started and sold units for private customers
Started and sold units for private customers Units 5 000 4 500 Started units R12 4 000 Sold units R12 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013 2014 2014-11-25 NCC AB 30
Slide 31: Total risk profile
Total risk profile Unsold in Prod, prop & pack 9 000 Sold in Prod., prop & pack 8 000 Completion Ratio, prop & pack 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Dec Dec Dec Dec Dec Jun Jun Jun Jun Jun Jun Mar Mar Mar Mar Mar Mar Sep Sep Sep Sep Sep Sep 2009 2010 2011 2012 2013 2014 2014-11-25 NCC AB
Slide 32: More housing units to complete 2015
More housing units to complete 2015 Estimated completions 4,323 Investor packages 3,414 St. Petersburg Baltic Countries Germany Finland Denmark Norway Sweden Q3 2013 Q3 2014 Est. completion 2014 Est. completion 2015 P303, Hageby Backs, Huddinge 2014-11-25 NCC AB 32
Slide 33: Housing portfolio
Housing portfolio Housing for private customers, ongoing production September 30, 2014 Number of housing units Estimated value Sweden 23% Sweden 33% Finland 13% Finland 11% St. Petersburg 37% St. Petersburg 14% Baltic Countries 4% Baltic Countries 1% Germany 17% Germany 24% Denmark 5% Denmark 13% No
Slide 34: Summary
Summary 2014-11-25 NCC AB 34
Slide 35: Increased demand for investor packages
Increased demand for investor packages Investor market Balanced and diverse portfolio – investor lowering risk Healthy demand for package deals in Germany, Sweden and Finland Sweden’s investor business growing – uncaptured potential Building systems a key advantage 2014-11-25 NCC AB 35
Slide 36: 2013 sales outperformed
2013 sales outperformed 3 857 19% 3 235 Jan-24 Nov Jan-24 Nov 2013 2014 2014-11-25 NCC AB 36
Slide 37: Summary
Summary Long term need for new apartments in all markets Capital efficiency improving Continued focus on building solid foundation for future in 2015 Focus on efficiency and increased profitability Long-term trends and drivers Market development and presence 2014-11-25 NCC AB 37
Slide 38: NCC AB
2014-11-25 NCC AB 38