Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — Investor Presentation (August 2015)
21 slides from Merko Ehitus As's investor presentation, Aug 17, 2015
Slide 1: Merko Ehitus Group - Damac Group
MERKO EHITUS GROUP Construction, Engineering & Real Estate Damac Group 17 August 2015
Slide 2: Agenda
Agenda 1. Group in brief 2. Business activities 3. Market outlook 4. Shareholders and dividends 2 300 MW Estonia Power Plant of Eesti Energia
Slide 3: Group in brief
Group in brief Estonian construction services Wide scope of (56% of revenue), Latvian and Share quoted on construction services: Lithuanian construction Nasdaq OMX services (26%), Real Estate • General construction Development (18%) Tallinn since 1997 • Engineering construction • Road construction •
Slide 4: Value Offering
Value Offering Integrated project management and general contracting service across the full life cycle of construction projects. From idea to planning to engineering design to site works to warranty: full responsibility to deliver the project. We mainly contract subcontractors, but also use own
Slide 5: Business Activities
merko BUSINESS ACTIVITIES
Slide 6: 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. • 56% of 2014 revenues • Private and public clients Reconstruction
Slide 7: Latvian and Lithuanian Construction Services
Latvian and Lithuanian Construction Services • Construction services include: • Buildings and different facilities; • Infrastructure engineering projects, including water, environmental and electrical projects; • 26% of 2014 revenues • Private and public clients Skanstes virsotnes apartment building
Slide 8: Real Estate Development
Real Estate Development • Development of real estate owned by group: • Main focus on apartments development for consumers; • Real estate projects for business; • Long-term investments (PPP). • 18% of 2014 revenues Jahu street, Tallinn launched Q2 2015, 37 apartments 8
Slide 9: 2015 Largest Projects in Progress Estonia
2015 Largest Projects in Progress Estonia Hilton Hotel (2016): €31 mln Ülemiste City office building (2016): €17 mln Design and renovation of the infrastructure of Tallinn tram line no. 4 (2015): €26 mln, consortium T1 Shopping Centre (2017): €70 mln 9
Slide 10: Largest Project in Progress Latvia and Lithuania
Largest Project in Progress Latvia and Lithuania Liepaja, Latvia Concert Hall (2015): €28 mln Residential construction in Riga, Latvia (2016): €11 mln Civil construction works of Nordbalt HVDC converter station Complex of multi-dwelling residential buildings in Klaipeda district, Lithuania (2015): €
Slide 11: Apartment developments in Progress
Apartment developments in Progress Krokuvos 73, Vilnius: 98 apartments (2016) Paepargi 49, Tallinn: floors 14, 60 apartments (2015) Skanstes Skanstes majas, Riga: 121 Majas apartments (2015) Tartu mnt 52, Tallinn : 103 apartments11 (2016)
Slide 12: Market and Market Outlook
merko MARKET AND MARKET OUTLOOK 12
Slide 13: Market Outlook: construction
Market Outlook: construction New tender volumes expected to decline in 2015 due to switchover to new EU budget period ? Source: local statistical services 13
Slide 14: Market Outlook: Housing market in Baltics
Market Outlook: Housing market in Baltics Market calming, fast growth over last 3 years is ending Source: Eurostat • Number of transactions and price per m2 have shown growth trend 2012-2014 due to low interest rates and limited supply of new flats during first after-crisis years. • Market is calmin
Slide 15: Outlook 2015-2016
Outlook 2015-2016 Orders not increasing and pricing competition tightening in Baltic construction market Focus for next year: private sector orders and apartment development + internal efficiency Private sector focus in general construction. Increased effort on design and built contracts with aim
Slide 16: Long term outlook
Long term outlook Long term outlook: the leading Baltic construction and development business Post 2015-2016 EU funds will support the increase in civil and public sector building orders. Strengthen our position as leading apartment developer in the Baltic. We develop modern and quality living e
Slide 17: Shareholders and Dividends
SHAREHOLDERS AND DIVIDENDS 17
Slide 18: Stock Exchange overview
Stock Exchange overview Market Cap EUR 148.7m (30.06.2014: EUR 127.1m) +17.0% y-o-y No of % of total % of total Shareholders Variance shares 30.06.2015 31.03.2015 AS Riverito (management) 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Firebird Republics Fund Ltd 395
Slide 19: Dividend and share capital reduction
Dividend and share capital reduction Dividend pay-out ratio according to long-term financial objectives: 50-70% of the annual profit. EUR 7.3 million dividends (EUR 0.41 per share) paid in Q2 2015. The registration of share capital reduction in the amount of EUR 4.1 million (EUR 0.23 per share
Slide 20: 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 mnt. 141, 11314 Tallinn, Estonia Phone: +372 6501 250 group.merko.ee 20
Slide 21: 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