Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Q3 2018 Earnings Presentation
15 slides from Merko Ehitus As's earnings presentation, Nov 8, 2018
Slide 1: 9 months and Q3 2018 interim report
AS MERKO EHITUS 9 months and Q3 2018 interim report 08 November 2018 Tõrva central square in Estonia
Slide 2: Agenda
Agenda 1. Key Highlights 4. Stock Exchange Overview 2. Business Review 5. Market Outlook 3. Financial Position 6. Strategic Directions Uus-Veerenni residential development in Estonia 2
Slide 3: Merko Group Key Highlights
Merko Group Key Highlights Q3 2018 revenue EUR 115m and in 9M EUR 299m, up 39% compared to 9M 2017 More than half of revenue (52%) in 9 months earned outside Estonia; greatest growth in Latvia, supported by large contracts in progress Net profit of 2018 Q3 at EUR 5.6m and in 9M EUR 12.3m Sec
Slide 4: Merko Group Key Financial Highlights
Merko Group Key Financial Highlights EUR million 9M 2018 9M 2017 Variance* Q3 2018 Q3 2017 Variance* Revenue 298.8 214.8 +39.1% 115.1 86.0 +33.9% EBITDA 14.3 11.0 +30.3% 6.2 5.0 +24.4% EBITDA margin (%) 4.8 5.1 5.4 5.8 Operating profit 12.9 8.8 +46.6% 5.7 4.1 +39.1% Operating profit margin (%) 4.3 4
Slide 5: Business Review: Construction Service
BUSINESS REVIEW: Construction Service GROUP 9 MONTHS' REVENUE BY SEGMENTS GROUP QUARTERLY REVENUE BY SEGMENTS in million euros in million euros 132,1 118,4 99,6 65,5 49,0 44,1 49,7 38,7 48,3 34,3 22,0 13,0 Estonian Other home markets Real estate development Estonian Other home markets Real estate de
Slide 6: Business Review: Secured Order Book
BUSINESS REVIEW: Secured Order Book SECURED ORDER BOOK in million euros 388 396 400 344 288 292 345 279 270 300 247 243 256 247 224 239 217 192 179 194 200 166 167 188 100 89 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4
Slide 7: Business Review: Real Estate Development
BUSINESS REVIEW: Real Estate Development Group’s central business line 255 apartments, incl. 47 in joint venture, APARTMENTS SOLD AND APARTMENT REVENUE pcs / in million euros sold in 9M 2018 (9M 2017: 286, incl. 1 in joint venture) 13,3 Revenue from sale of own developed 12,0 apartments EUR 24m
Slide 8: Financial Position
Financial Position CHANGE IN CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS in million euros in million euros 0,3 6,7 (22,3) ( 10,2) (0,0) 0,8 ( 5,6) 39,2 0,1 0,0 33,5 23,9 18,6 0,0 0,0 0,0 0,0 31.12.2017 Operating Investing Financing 30.09.2018 31.12.2016 Operating Investing Financin
Slide 9: Stock Exchange Overview
Stock Exchange Overview P/B RATIO times 15 Market Cap EUR 174m 600 1,37 1,21 1,31 1,26 (30.09.2017: EUR 170m) 1,03 +1.9% during 12M 12 volume of transactions, thousand EUR 9 share price in EUR 300 6 31.12.2014 31.12.2015 31.12.2016 31.12.2017 30.09.2018 3 P/E RATIO times 26,17 0 0 12/17 01/18 02/18
Slide 10: Construction Market
Construction Market BALTIC STATES CONSTRUCTION MARKETS (WITH OWN FORCES) 9 MONTHS CHANGE IN CONSTRUCTION PRICE INDEX ROLLING 12 MONTHS percentages in million euros 3 000 6 2 779 4,1 2 500 2 574 4 2,8 2 000 1 774 2 1,7 1 500 0 1 000 500 -2 2014 2015 2016 2017 2018 9M 2014 9M 2015 9M 2016 9M 2017 9M 2
Slide 11: Housing Market
Housing Market NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE INDEX (4 QUARTER ROLLING AVERAGE) (2013=100) 170 160 150 140 130 120 110 100 90 80 2014 2015 2016 2017 2018 Estonia new Estonia all Latvia new Latvia all Lithuania new Lithuania all Source: Eurostat The prices have continued
Slide 12: Strategic Directions
Strategic Directions Construction for clients: Development of residential real estate: Managing risks of large objects Selling the best apartments of their price Preferred partner for private customers range: to cover different segments. who value reliability and quality Product development, b
Slide 13: AS Merko Ehitus Group in Brief
AS Merko Ehitus Group in Brief AS Merko Ehitus is a construction and real estate development group operating in Estonia, Latvia, Lithuania and Norway BUSINESS SEGMENTS ESTONIA LATVIA LITHUANIA NORWAY • General construction • General construction • General construction • General construction • Civil
Slide 14: Contacts
Contacts Andres Trink Priit Roosimägi Chief Executive Officer Head of Group Finance Unit andres.trink@merko.ee priit.roosimagi@merko.ee AS Merko Ehitus Delta Plaza, 7th floor Pärnu road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 14
Slide 15: Disclaimer
Disclaimer ➢ This presentation has been prepared by AS Merko Ehitus (the Company) solely for your use and benefit for information purposes only. By accessing, downloading, reading or otherwise making available to yourself any content of the presentation, in whole or in part, you hereby agree to be b