Ncc Ab Class A · OMXSTO:NCC_A
Ncc Ab Class A — Investor Day (November 2014)
34 slides from Ncc Ab Class A's investor day presentation, Nov 25, 2014
Slide 1: NCC Construction Sweden: Heading for a stronger market position
NCC Construction Sweden Heading for a stronger market position Svante Hagman Business Area Manager NCC Construction Sweden Nov 25, 2014 NCC AB 1
Slide 2: Strong position in the Swedish market
Strong position in the Swedish market NCC Construction Sweden Sales of SEK 21.5 billion Operating profit SEK 637 M 7,500 employees Residentials, offices, industrial premises, other buildings, roads, civil-engineering structures and other infrastructure Thousands of projects, both large and small 201
Slide 3: Cutting-edge skills and local presence
Cutting-edge skills and local presence New organization from January 2014 Specialized in five segments • Land and Industrial Construction, Civil Engineering, Buildings, Residential and Partnering This will lead to: • Increased customer focus when meeting different business logics • The power of deve
Slide 4: Share of NCC in total
Share of NCC in total NCC Construction Sweden, 2013 37% of 24% of operating 41% of consolidated sales profit number of employees Nov 25, 2014 NCC AB 4
Slide 5: Well balanced product mix
Well balanced product mix NCC Construction Sweden, 2013 Other, 14% Infrastructure, 18% Shopping centers, 6% Office, Land works, 14% 13% Industrial and processing Residential plants, 16% 19% Share of net sales 2013 Nov 25, 2014 NCC AB 5
Slide 6: Top three priorities
Top three priorities Workplace safety Increase profitability Sustainability Nov 25, 2014 NCC AB 6
Slide 7: Downward trend in accident frequency
Downward trend in accident frequency NCC Construcion Sweden Number of accidents resulting in one day or more of absence from work per million worked hours 14 12 10 8 6 4 2 0 2011 2012 2013 2014 Q3 Nov 25, 2014 NCC AB 7
Slide 8: Safety at the worksite – the most important issues
Safety at the worksite – the most important issues Attitudes and Prioritized Safety culture behaviors high-risk areas Nov 25, 2014 NCC AB 8
Slide 9: Increasing profitability
Increasing profitability Nov 25, 2014 NCC AB 9
Slide 10: Operating margin – EBIT
Operating margin – EBIT NCC Construction Sweden Percent 6 5 4 3 2 1 0 2007* 2008* 2009 2010 2011 2012 2013 * Excl. NCC Housing Nov 25, 2014 NCC AB 10
Slide 11: Key principles for increased profitability
Key principles for increased profitability • Specialization • Pricing strategy • Partnering Value creation Market and Project After- Production Cost sales engineering market efficiency • NCC Project planning • Ranking/Benchmark • VDC • Structured purchasing 2014-11-25 NCC AB 11
Slide 12: Actions for increasing profitability: Short term
Actions for increasing profitability Short term Nov 25, 2014 NCC AB 12
Slide 13: Activities for improving earnings
Activities for improving earnings Short term – examples Support, analysis Imediate actions Major projects and actions for Cash flow focus for units showing 7-point program projects < SEK 50M low profitabillity Nov 25, 2014 NCC AB 13
Slide 14: Time from order to sale is longer today
Time from order to sale is longer today Nov 25, 2014 NCC AB 14
Slide 15: Orders received better than market 2014
Orders received better than market 2014 Orders received vs construction start volume in Sweden months 40 Gaining marketshare 30 20 NCC orders received +18% 10 Construction start volume +9% 0 -10 -20 Gives low volume 2014 -30 Source: Sverige Bygger AB, volume rolling 12 months 2014-11-25 NCC AB 15
Slide 16: Going forward with a stronger order backlog
Going forward with a stronger order backlog MSEK +3.3 Mdr 20 011 16 690 31 Oct 31 Oct 2013 2014 Nov 25, 2014 NCC AB 16
Slide 17: Cooperation across national borders
Cooperation across national borders Nov 25, 2014 NCC AB 17
Slide 18: Nordic cooperation between Construction units
Nordic cooperation between Construction units Purpose: Synergies between Construction units Examples of areas of cooperation Management systems and risk management VDC, Project studio IT management Large civil projects in cooperation Nov 25, 2014 NCC AB 18
Slide 19: Market outlook for 2015
Market outlook for 2015 Nov 25, 2014 NCC AB 19
Slide 20: Construction investments
Construction investments Forecast from the Swedish Construction Federation SEK billion 400 Total 350 300 250 200 Residential 150 Non-residential 100 Civil engineering 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2014-11-25 NCC AB 20
Slide 21: Sweden - a consolidated market
Sweden - a consolidated market Total construction market Market share based on volume of construction cost for past 3 years until June 2014 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% PEAB Skanska NCC JM Svevia Veidekke Source: Sverige Bygger Nov 25, 2014 NCC AB 21
Slide 22: Stable demand for non-residentials construction
Stable demand for non-residentials construction High demand for hospitals Public investments (schools, swimming and sport facilities) are driving building construction Continued strong demand for new office projects Nov 25, 2014 NCC AB 22
Slide 23: Expected 100% increase in infrastructure investments
Expected 100% increase in infrastructure investments Swedish Transport Administration's assessment of its own projects SEK billion Investments Work-up rate (indicative) 50 40 30 +100% 20 10 0 2012 2013 2014 2015 2016 2017 2018 Source: Swedish Transport Administration 2014-11-25 NCC AB 23
Slide 24: Public sector drives demand 2015
Public sector drives demand 2015 Land works & civil engineering Civil engineering will continue to grow by 3-4% in 2015. The private sector is currently displaying high growth in: • Electricity, gas and thermal power stations • Waterworks and sewage works • Transport-related investments Swedish gove
Slide 25: Growth potential for residential production
Growth potential for residential production Market share based on volume of construction cost for past 3 years until June 2014 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% PEAB Skanska NCC JM Source: Sverige Bygger Nov 25, 2014 NCC 2014-11-25 AB 25
Slide 26: Continued residential growth
Continued residential growth Continued growth, but at slightly lower rate Increase in number of building permits past 12 months Started housing units 40,000 (+8%) 2015 Student housing is on the rise Continued low interest rates in 2015 Source: Swedish National Board of Housing, Building and Planning
Slide 27: Summary of trends in 2015
Summary of trends in 2015 Anticipated growth in 2015 ………………..... 3.5% Continued growth in construction of residential, but at a lower rate …………… 3.9% Construction in the Health care segment will drive the building segment ………........... 3.6% Rate of investment to increase in public-sector civil engi
Slide 28: A flexible residential portfolio
A flexible residential portfolio The base for a stronger market position Nov 25, 2014 NCC AB 28
Slide 29: How do we build attractive homes for more people?
How do we build attractive homes for more people? Cost Quality homes Sustainability efficiency Standardized processes Continuous repetition Synergies and economies of scale Nov 25, 2014 NCC AB 29
Slide 30: Residential products well received on the market
Residential products well received on the market NCC Folkboende 1,300 apartments completed or in production since 2010 NCC Design • Eight projects commenced in 2014 • 750 apartments since concept launched NCC Urban 350 apartments in Stockholm suburbs as Sundbyberg, Aspudden and Botkyrka during the y
Slide 31: FILM
FILM 2014-11-25 NCC AB 31
Slide 32: Meeting different market requirements
Meeting different market requirements Four characteristic products Urban Flex Folkboende Design Duo Design Quattro Nov 25, 2014 NCC AB 32
Slide 33: Heading for a stronger market position
Heading for a stronger market position Summary Short-term actions for increased profitability Gaining market share Strong residential products meet the market demand Value driven growth strategy Nov 25, 2014 NCC AB 33
Slide 34: Slide 34