Slide 1: Interim report 1-6/2016 SRV Group Plc
Interim report 1-6/2016 SRV Group Plc 1
Slide 2: January-June 2016
January-June 2016 Revenue grew and Order backlog rose operating profit improved, to over particularly due to EUR 2 billion. business construction in Finland. Profit before taxes was modest - A 2016 result EUR -6.6. million fair value outlook revaluation of a 10-year interest unchanged. rate hedge co
Slide 3: SRV Group 1-6/2016
SRV Group 1-6/2016 3
Slide 4: Order backlog grew to EUR 2 billions
Order backlog grew to EUR 2 billions MEUR 1-6/ 1-6/ change Change, 1-12/ 2016 2015 MEUR % 2015 Revenue 362.4 337.4 24.9 7.4 719.1 Operating profit 4.1 3.4 0.7 22.1 24.4 Operating profit % 1.1 1.0 3.4 Return on equity, % -4.3 1.8 5.6 Return on investment, % 1.9 2.8 5.9 Equity ratio, % 36.9 36.3 42.5
Slide 5: Order backlog boosted by business construction in Finland
Order backlog boosted by business construction 1-6 / in Finland 2016 • The order backlog increased to a new record due to new agreements signed in Q2/2016 totalling over of EUR 775 Order backlog million. 2021.6 MEUR • The order backlog grew in Operations in Finland, and (1258.8) growth was highest i
Slide 6: Operating profit impacted by growth in share of own-development projects
Operating profit impacted by growth in share 1-6 / of own-development projects 2016 Revenue Revenue - was impacted particularly by growth of business construction revenue in Operations in Finland 362.4 MEUR - The number of developer-contracted housing units (337.4) recognised as income rose slightly
Slide 7: Revenue and operating profit grew, result was weakened by interest expenses
Revenue and operating profit grew, result was weakened by interest expenses SRV Group Meur Meur Revenue Operating profit 250 20 200 15 150 227 219 10 100 209 194 17,0 173 165 155 138 143 144 50 5 9,6 4,4 4,9 6,0 2,5 0,8 4,1 4,1 0 0 0,0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q1/1
Slide 8: Financing solidly secured
Financing solidly secured 1-6 / 2016 • Changes in the equity ratio and gearing resulted from an increase in interest-bearing debt. Equity ratio • Two significant financing arrangements were finalised in the 36.9 % (36.3) first quarter of 2016. Through these, the SRV Group’s aim is to strengthen its
Slide 9: Order backlog increased up 60.6%
Order backlog increased up 60.6% Largest projects: new Central Finland Central Hospital project, REDI, Ring Road I tunnel project, expansion of Tapiola centre, Aalto University’s new campus building 9
Slide 10: Operations in Finland 1-6/2016
Suomen Operations in Finland 1-6/2016 liiketoiminta 1-6/2016 Aalto University campus building and Metro Centre, Espoo VERTAS ARCHITECTS 10
Slide 11: Order backlog remains at record level
Order backlog remains at record level Operations in Finland Meur Meur Revenue Operating profit 350 20 300 250 15 213 200 197 200 176 52 157 147 57 10 150 124 131 137 93 131 18,3 77 43 52 32 25 100 55 48 5 10,2 145 144 7,6 50 82 99 114 95 106 120 107 6,6 7,0 6,2 4,9 69 3,3 0 2,4 2,2 0 Q1/14 Q2/14 Q3/
Slide 12: Business construction recognised in revenue
1-6 / Business construction recognised in revenue 2016 Revenue Revenue - was particularly impacted by growth in business construction revenue 331.9 MEUR - The number of developer-contracted housing units (304.0) recognised as income rose slightly in comparison to 2015, but the revenue from housing p
Slide 13: High amount of housing startups will improve future result
High amount of housing startups High amount of housing startups will improve in 2015 will be future result visible in result and revenue in 2016- 2017. In 2016 more than double the number of housing units were completed in 2015. SRV currently one of the Helsinki Metropolitan Area’s largest housing c
Slide 14: Share of housing development projects has increased
Housing sales successful in Share of housing development projects early part of has increased the year – 193 units sold In January-June, 83 (22) developer- contracted housing units completed, of which 84 (79) recognised in revenue Many housing units under construction, particularly in growth centres
Slide 15: International operations 1-6/2016
International operations 1-6/2016 Okhta Mall 15
Slide 16: International operations revenue and operating profit
Operating profit was negative due to temporary rent 1-6 / discounts granted to tenants and changes in the fair 2016 values of the currency exchange • Proportion of Group revenue accounted for by International Operations decreased to 8 (10)%. Most of Revenue the revenue consisted of the construction
Slide 17: Rouble exchange rate had negative impact on the result
Rouble exchange rate had negative impact on the result International operations Meur Meur Revenue Operating profit 20 3,0 2,0 15 1,0 -1,5 -0,6 1,8 -0,4 0,2 0,7 0,1 -0,3 -0,6 -1,1 10 0,0 18 18 18 18 14 16 12 13 14 12 -1,0 5 -2,0 0 -3,0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q1/14
Slide 18: Outlook
Outlook SRW
Slide 19: Outlook remains unchanged
Outlook remains unchanged • A total of 503 developer-contracted housing units are expected to be completed during 2016 • Due to the completion schedules of SRV’s developer-contracted housing production, a significant part of operating profit will be made in the second half of the year • Due to growt
Slide 20: PÄIVITETÄÄN!!!
& “ny. Increase in prosperity Asp, and service culture a and polarisation of Changes in consumer ALINIGISNOdS3aY Urbanisation 4%, society behaviour and ways Sy of working VISION 2020 SRV CREATES THE BEST am COURAGE IN DEVELOPryey Sustainability CUSTOMER EXPERIENCE in everything we do AS A CONSTRUCTO
Slide 21: Appendices
\ jl — BR Appendices 21
Slide 22: Housing demand in the Helsinki metropolitan area continues to grow
Housing demand in the Helsinki metropolitan area continues to grow Demand for housing production. number Location of housing production. urbanization scenario Population in the Helsinki Cumulated metropolitan housing deficit. area is predicted immigration and to grow about urbanization → 10-15 % by
Slide 23: Consolidated income statement
Consolidated income statement EUR million 1-6/2016 1-6/2015 1-12/2015 Revenue 362.4 337.4 719.1 Other operating income 1.5 0.4 1.8 Change in inventories of finished good and work in progress 39.5 -2.0 24.7 Use of materials and services -349.3 -291.9 -639.1 Employee benefit expenses -36.9 -34.0 -64.6
Slide 24: Balance sheet
Balance sheet EUR million 06/30/2016 % 12/31/2015 % Non-current assets 281.3 31.5 % 271.9 35.6 Inventories 379.7 42.5 % 336.6 44.1 Other current assets 179.2 20.0 % 119.2 15.6 Cash and cash equivalents 54.1 6.0 % 35.0 4.6 Total assets 894.3 100.0 % 762.6 100.0 Equity 282.5 31.6 % 277.2 36.3 Non-curr
Slide 25: Indebtedness in detail
Indebtedness in detail EUR million 06/30/2016 12/31/2015 12/31/2014 Non-current interest bearing liabilities Loans from financial institutions 15.0 29.5 26.6 Bonds 174.2 74.9 74.8 Housing corporation loans 55.5 58.9 45.6 Subtotal 244.8 163.2 147.0 Current interest bearing liabilities Loans from fina
Slide 26: Consolidated cash flow statement
Consolidated cash flow statement EUR million 1-12/2016 1-12/2015 1-12/2014 Net profit -6.0 14.0 15.4 Non-cash transaction / Financial income and expenses / 5.1 12.3 10.7 Income taxes Depreciation and impairments 1.9 3.5 2.0 Change in working capital -58.9 41.2 34.7 Interest paid and received -4.2 -1