Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Non-Deal Roadshow (April 2017)
22 slides from Merko Ehitus As's roadshow presentation, Apr 6, 2017
Slide 1: AS Merko Ehitus - LHV Road Show
AS MERKO EHITUS Construction, Engineering & Real Estate LHV Road Show 6 April 2017
Slide 2: Agenda
Agenda 1. Merko in brief 4. Dividends and share performance 2. Market 5. Outlook 3. Business segments 2 Noblessner residential quarter (2017-2018)
Slide 3: Key facts
Key facts Home markets: Estonia, Latvia, Wide scope of Lithuania, 2016 Norway construction services: • General construction • Engineering construction • Road construction • Real estate projects Share quated on Nasdaq The largest listed construction OMX Tallinn since 1997 Construction digitalization,
Slide 4: Merko value offering
Merko value offering Service over full life cycle of construction projects What we provide We are a project management company - we take full responsibility to deliver the Project. Subcontractors & own workforce Design & build: from idea to planning to engineering design to site works to warrant
Slide 5: Key financials
Key financials 2016 results below management expectations mainly due to lower execution rate of existing contracts 5
Slide 6: Market
Reconstruction of Leisi 110 kV substation MARKET 6
Slide 7: Market: construction services
Market: construction services 2014-2016: weak demand in infrastructure, quite healthy residential market, tough price competition in commercial and industrial buildings Source: Local statistical services 7
Slide 8: Housing market Baltics
Housing market Baltics Our focus on capital cities. Growth in Tallinn and Vilnius, still slow in Riga Source: European Commission Directorate-General for Economic and Financial Affairs / Eurostat 8
Slide 9: Business segments
T1 shopping and entertainment centre BUSINESS SEGMENTS 9
Slide 10: Estonian construction services
Estonian construction services Construction services include: • Buildings and different facilities; • Infrastructure engineering projects, including water, environmental and electrical projects; • Road construction and maintenance • Includes one-off projects in Finland • 49% of 2016 revenues • Priva
Slide 11: Other markets construction services
Other markets construction services Construction services include: • Buildings and different facilities • Infrastructure engineering projects, including water, environmental and electrical projects in Latvia • 2016 acquired a small Norwegian general construction company • 21% of 2016 revenues • Priv
Slide 12: Largest construction projects in progress
Largest construction projects in progress Continuing active tendering in all markets T1 shopping and entertainment centre (70m, 2018) Maakri business complex (30m, 2018) Ventspils music school and concert hall (26m, 2018) 12
Slide 13: Real estate development
Real estate development Development of real estate owned by group: • Core business residential apartments • Some commercial real estate development projects on own land plot • Long-term investments (PPP). • 30% of 2016 revenues 13 Tallinn Jahu 1A apartment building,
Slide 14: Apartment development & sales
Apartment development & sales Mainly technical yoy volatility in new launches Sales growth reflects capturing residential market growth in the Baltics. New plot acquisitions in Lithuania since 2013 2016 new land plot acquisitions for EUR 19m: EUR 17m in Estonia and 2m in Lithuania. 2017 in Lat
Slide 15: Largest residential projects in progress
Largest residential projects in progress 2017 target to launch 650-700 new apartments, subject to permits Noblessner Home Port, Tallinn: 220 apartments Riga, „Gailezera nami“ residential development, Rinktines Urban, Vilnius: 120 apartments (2017-2018) 96 apartments (2017-2018) (2018) 15
Slide 16: Shareholders and Dividends
SHAREHOLDERS AND DIVIDENDS 16
Slide 17: Shareholders and share price
Shareholders and share price No of % of total % of total Shareholders Variance shares 31.12.2016 31.12.2015 AS Riverito (management) 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Total 1,813 shareholders, Firebird Republics Fund Ltd 389 432 2,20% 2,24% (6 272) incr
Slide 18: Dividends
Dividends The Management Board proposes to pay EUR 7.3m as dividends (EUR 0.41 per share) giving 2016 dividend rate of 119% and yield* 4.5%. Higher than policy rate pay-out reflecting following factors: Group’s 2016 return on equity level; Group’s relatively comfortable liquidity position;
Slide 19: Outlook
Outlook Estonian construction services Focus on internal efficiency in a price-driven market, including further implementation of BIM processes Expect slower demand in new commercial buildings Develop capability to participate in infrastructure tenders Other home markets Continue search for
Slide 20: Thank you!
merko THANK YOU!
Slide 21: Contacts
Contacts Andres Trink Signe Kukin Chief Executive Officer Chief Financial Officer E-mail: andres.trink@merko.ee E-mail: signe.kukin@merko.ee AS Merko Ehitus Delta Plaza, 7th floor Pärnu road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 21
Slide 22: 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