Slide 1: Q3 2020
Q3 2020 Flora school, Skellefteå
Slide 2: Tomas Carlsson, CEO
Tomas Carlsson CEO NCC
Slide 3: Orders received
Orders received A low quarter in the contracting BAs with different underlying drivers SEK M 20 000 15 000 10 000 5 000 15 501 12 730 12 738 17 750 16 070 12 769 13 708 15 458 9 026 0 Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 2020-11-06 3
Slide 4: Orders received
Orders received xx Prudent tendering especially in Norway Built exceptional and more early involvement than usual backlog in 2019 – Quarterly country variation 14 000 variation - strong in Q1 and Q2 12 000 10 000 8 000 6 000 4 000 2 000 13 079 12 733 10 353 10 625 3 687 4 466 2 922 2 438 8 634 2 683
Slide 5: Order backlog vs net sales
Order backlog vs net sales Above net sales in all contracting BAs 25 000 20 000 17,629 15 000 13,848 12,277 10 000 5 000 22 002 17 602 18 141 16 717 16 697 13 671 0 Infrastructure Building Sweden Building Nordics Order backlog Sep 2019 Order backlog Sep 2020 Net sales R12, Sep 2020 5 2020-11-06
Slide 6: Order backlog
Order backlog SEK M 70 000 60 000 50 000 40 000 30 000 20 000 61 370 56 587 56 837 63 027 61 658 57 800 62 333 59 486 54 821 10 000 0 Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 6 2020-11-06
Slide 7: New roles for members of the Executive Team
New roles for members of the Executive Team • Ylva Lagesson appointed as Head of business area Industry • Susanne Lithander will take on the role as Head of the group function Development & Operations Services (DOS) in addition to being CFO and Head of Finance • Jyri Salonen, former head of business
Slide 8: BA Industry: Action plan to unlock more potential
BA Industry: Action plan to unlock more potential • Division Asphalt: New and leaner organization ‒ Strong potential in Sweden, Norway and Denmark ‒ Expected to reduce annual cost base with approx. SEK 50 M from 2021 ‒ Restructuring cost of approx. SEK 65 M expected in Q4/Q1 • Strategic review of ex
Slide 9: Other changes
Other changes • Harri Savolainen, Head of Purchasing, will leave NCC for another opportunity 9 2020-11-06
Slide 10: Net Sales
Net Sales Building Sweden lower than last year and no property sale in PD this quarter SEK M 20 000 15 000 10 000 5 000 17 832 14 269 14 610 13 951 18 239 14 431 12 820 11 434 11 766 0 Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 10 2020-11-06
Slide 11: Operating profit on par in the quarter
Operating margin Q3 2020 4.4% Operating profit on par in the quarter Q3 2019 4.1% R12, Sep 2020 2.9% SEK M 1 000 1000 981 800 800 600 600 626 568 567 400 400 200 200 0 0 -200 -200 -400 -400 -600 -600 -800 -800 -1 020 -1 000 -1 108 -1000 -1 200 -1200 Q3 2018 Q3 2019 Q3 2020 Jan-Sep 2018 Jan-Sep 2019
Slide 12: Health & Safety
Health & Safety LTIF Group 1 Day 500 16 14.4 14 400 407 12 10.9 10.6 9.5 10 300 315 8.8 300 8.1 7.5 7.5 8 7.2 7.0 7.0 7.2 257 241 246 200 202 204 6 176 185 172 175 4 100 2 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020, R12 Q2 2020, R12 Q3 2020, R12 Number of accidents LTIF 1 Day 12 NCC AB
Slide 13: Health & Safety
Health & Safety LTIF Group 4 Days 500 16 14 400 12 10 300 8 200 5.8 5.1 6 4.6 4.3 4.1 4.0 4.0 156 4 144 100 125 103 100 106 97 2 0 0 2016 2017 2018 2019 Q1 2020, R12 Q2 2020, R12 Q3 2020, R12 Number of accidents LTIF 4 Days 13 2020-11-06
Slide 14: 10th Awareness Day, September 2020
10th Awareness Day, 2 September 2020 Hospital Nordsjælland, Denmark Venjar Eidsvoll, Norge 14 2020-11-06
Slide 15: Market: Signs of slowdown in some segments
Market: Signs of slowdown in some segments • Strong underlying demand but potential longterm negative impact from economic downturn due to corona pandemic still hard to assess • Signs of slower decision processes mainly on the commercial property market may have impact going forward • Ongoing projec
Slide 16: In summary: Stable earnings, good cash flow and order backlog in shape
In summary: Stable earnings, good cash flow and order backlog in shape • Margins and earnings better or on par with last year ‒ In all contracting business areas and in Industry ‒ Property Development had no property sale this quarter • Strong cash flow Proposed dividend • Different drivers behind l
Slide 17: Susanne Lithander, CFO
Susanne Lithander CFO NCC
Slide 18: NCC Infrastructure
NCC Infrastructure Better project portfolio lifts margins – orders received lower R12 Oct 19- Q3 Jan-Sep Sep 20 Jan-Dec Net Sales SEK M 2020 2019 2020 2019 2019/2020 2019 18% (19) Orders received 2,922 4,466 10,353 12,733 14,221 16,601 7% (7) Order backlog 18,141 22,002 18,141 22,002 18,141 20,389 N
Slide 19: Divestment Road Services
Divestment Road Services • Road Services Sweden and Finland to Mutares – closed • Divestment of Road Services Denmark to Arkil in process • Road Services Norway ‒ Reported in the Other and eliminations segment after closing of above divestments ‒ Operationally managed by BA Infrastructure in Norway
Slide 20: NCC Building Sweden
NCC Building Sweden Margins improving and strong order backlog R12 Oct 19- Q3 Jan-Sep Sep 20 Jan-Dec SEK M 2020 2019 2020 2019 2019/2020 2019 Orders received 2,438 3,687 10,625 8,634 14,732 12,741 Order backlog 17,602 16,717 17,602 16,717 17,602 16,561 Net sales 2,735 3,192 9,583 10,587 13,848 14,85
Slide 21: NCC Building Sweden
NCC Building Sweden Residential orders received above average – >70% rentals in 2020 SEK M 1 600 1 400 1 200 1 000 800 600 400 1 432 1 237 1 066 1 231 200 435 320 552 765 971 813 211 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 Orders Received Residential Average 21 2020-11-06
Slide 22: NCC Building Nordics
NCC Building Nordics Stable quarter with some country variations – strong order backlog R12 Net Sales Oct 19- Q3 Jan-Sep Sep 20 Jan-Dec SEK M 2020 2019 2020 2019 2019/2020 2019 50% (53) Orders received 1,247 2,683 6,674 13,079 9,674 16,080 14% Order backlog 13,671 16,694 13,671 16,694 13,671 15,807
Slide 23: NCC Industry: Stone and asphalt volumes
NCC Industry: Stone and asphalt volumes Asphalt volumes on par, stone volumes somewhat lower Stone material sold, thousands of tons Asphalt sold, thousands of tons 10 000 3 000 9 000 8 000 2 500 7 000 2 000 6 000 5 000 1 500 4 000 1 000 3 000 2 000 500 176 166 2 460 1 788 1 904 2 518 1 512 1 935 2 5
Slide 24: NCC Industry
NCC Industry Delivering on the same level as last year R12 Oct 19- Net Sales Q3 Jan-Sep Sep 20 Jan-Dec 10% (9) SEK M 2020 2019 2020 2019 2019/2020 2019 16% (18) Orders received 2,399 2,450 9,489 9,812 12,529 12,852 19% (19) Order backlog 3,402 3,631 3,402 3,631 3,402 2,967 Net sales 4,101 4,311 8,96
Slide 25: NCC Property Development
NCC Property Development No property sale this quarter R12 Oct 19- Q3 Jan-Sep Sep 20 Jan-Dec SEK M 2020 2019 2020 2019 2019/2020 2019 Net sales 18 335 2,274 1,067 4,263 3,056 EBIT -11 19 380 39 654 313 Capital employed 5,793 6,107 5,793 6,107 5,793 4,935 EBIT margin % -58.5 5.6 16.7 3.7 15.3 10.2 RO
Slide 26: One new project started in Q3
One new project started in Q3 Project ”Fredriksberg D” in Finland – 73% let Lettable space, sqm 300 000 25 21 21 250 000 19 18 18 20 17 17 200 000 15 15 15 14 15 Finland 150 000 Norway 10 Denmark 100 000 Sweden 5 Number of ongoing and 50 000 completed projects 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20
Slide 27: Letting on same level as previous quarters
Letting on same level as previous quarters Impacted by corona pandemic uncertainty – but still activity in the market 300 000 50% 250 000 40% 200 000 30% 150 000 20% 100 000 10% 50 000 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 Previously let area, sqm Let during quarter, sqm Remaining unl
Slide 28: Letting and completion status
Letting and completion status Letting higher than completion ratio in the property development 100% 90% 80% 70% 60% 50% Letting ratio 40% 30% 20% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 28 2020-11-06
Slide 29: Earnings
Earnings R12 Q3 Jan-Sep Oct 19-Sep 20 Jan-Dec SEK M 2020 2019 2020 2019 2019/2020 2019 Earnings in segments (all BAs) 592 583 1,288 896 2,043 1,651 NCC HQ and subs 17 -7 -75 -149 -130 -204 Internal gains -35 16 -52 -39 -37 -24 Other Group Adjustments -7 -24 -180 -82 -226 -126 Other & Eliminations to
Slide 30: Strong cashflow
Strong cashflow SEK Bn 4 R12 Oct 19- Q3 Jan-Sep Sep 20 Jan-Dec 3 SEK M 2020 2019 2020 2019 2019/2020 2019 From operating 2 activities 792 947 1,579 1,326 3,027 2,774 From property 1 projects -595 -714 -558 -1,514 -209 -1,165 0 Other working capital -121 -914 -430 -1,328 1,503 605 -1 Investing activi
Slide 31: Net debt per Sep 30
Net debt per Sep 30 500 ** -500 Net debt* / EBITDA -1 500 -2 738 Target < 2.5x -3 251 -2 500 R12 0.08x -3 500 -2 139 -1 852 -4 500 -175 -5 500 -6 500 -3 021 Corporate net debt -7 500 Leasing liabilities (incl IFRS 16) Pension liability -8 500 2019 Q3 2020 Q3 *Corporate net debt excluding pension lia
Slide 32: Tomas Carlsson, CEO
Tomas Carlsson CEO NCC
Slide 33: EGM Nov 12, 2020
EGM Nov 12, 2020 • Digital EGM – voting digital or by mail • More information on www.ncc.com/ir Proposed dividend 2.50 SEK per share 33 2020-11-06
Slide 34: Welcome to Capital Market Meeting, November
Welcome to Capital Market Meeting, 18 November For more information www.ncc.com/ir 34 2020-11-06
Slide 35: In summary: Stable earnings, good cash flow and order backlog in shape
In summary: Stable earnings, good cash flow and order backlog in shape • Margins and earnings better or on par with last year ‒ In all contracting business areas and in Industry ‒ Property Development had no property sale this quarter • Strong cash flow • Different drivers behind low orders received
Slide 36: NCC AB
36 2020-11-06 NCC AB