Merko Ehitus As · OMXTSE:MRK1T

Merko Ehitus As — AS Merko Ehitus — Q1 2018 Earnings Presentation

16 slides from Merko Ehitus As's earnings presentation, May 10, 2018

  1. Slide 1: AS Merko Ehitus 3 months 2018 interim report

    AS MERKO EHITUS 3 months 2018 interim report 10 May 2018 Noblessner Home Port in Estonia

  2. Slide 2: Agenda

    Agenda 1. Key Highlights 5. Stock Exchange Overview 2. Business Review 6. Market Outlook 3. Financial Position 7. Strategic Directions 4. Dividends 2

  3. Slide 3: Merko Group Key Highlights

    Merko Group Key Highlights  Revenue EUR 80m in 3M, up 38% compared to 3M 2017.  Revenue greatest growth came in Latvia, supported by large contracts in progress.  The trends of pressure on the growth of input prices and the limited availability of construction resources continued.  Secured order

  4. Slide 4: Merko Group Key Financial Highlights

    Merko Group Key Financial Highlights EUR million 3M 2018 3M 2017 Variance 12M 2017 Revenue 80.3 58.1 +38.1% 317.6 EBITDA 1.8 1.9 -7.5% 22.2 EBITDA margin (%) 2.2 3.3 7.0 Operating profit 1.3 1.3 +1.9% 19.5 Operating profit margin (%) 1.6 2.2 6.2 Profit before tax 1.3 1.1 +14.2% 18.8 Net profit, attr

  5. Slide 5: Business Review: Construction service

    BUSINESS REVIEW: Construction service GROUP REVENUE BY SEGMENTS 2018: EUR 80.3m GROUP OPERATING PROFIT BY SEGMENTS in million euros 2017: EUR 58.1m in million euros 2,7 43,5 27,8 1,3 26,7 20,2 0,3 0,1 11,2 9,0 - 0,5 - 0,6 Estonian Other home markets Real estate development Estonian Other home market

  6. Slide 6: Business Review: Secured Order Book

    BUSINESS REVIEW: Secured Order Book SECURED ORDER BOOK in million euros 450 388 396 400 344 350 288 292 279 270 300 247 243 256 299 224 217 294 250 192 194 166 179 167 200 150 100 50 22 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

  7. Slide 7: Business Review: Real Estate Development

    BUSINESS REVIEW: Real Estate Development APARTMENTS SOLD AND APARTMENT REVENUE pcs / in million euros Group’s central business line 16,3  51 apartments (incl. 25 in joint venture) sold 141 13,3 for EUR 4.3m in 3M (3M 2017: 141, incl. 1 in 10,5 joint venture, for EUR 16.3m). In addition, there are 3

  8. Slide 8: Financial Position

    Financial Position CHANGE IN CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS in million euros in million euros (0,1) 0,1 (3,0) 5,6 (5,2) (8,7) 0,0 0,0 (0,0) 39,2 (0,0) 0,0 33,5 33,8 27,6 31.12.2017 Operating Investing Financing 31.03.2018 31.12.2016 Operating Investing Financing 31.03.

  9. Slide 9: Dividends approved at AGM

    Dividends approved at AGM DIVIDEND RATE DIVIDEND PER SHARE percentages in euros 119 120 1,00 90 70 58 0,51 0,41 0,41 0,41 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 The AGM of shareholders approved to pay DIVIDEND YIELD * percentages the shareholders a total amount of EUR 17.7m 11,4 as divide

  10. Slide 10: Stock Exchange Overview

    Stock Exchange Overview P/B RATIO times 1,62 1,31 1,26 1,21 1,03 Market Cap EUR 204m (31.03.2017: EUR 159m) +28.3% during 12M 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.03.2018 P/E RATIO times 26,17 Number of % of total % of total 15,01 Shareholders Variance shares 31.03.2018 31.12.2017 13,78 AS

  11. Slide 11: Construction Market

    Construction Market 3 MONTHS CHANGE IN CONSTRUCTION PRICE INDEX BALTIC STATES CONSTRUTION MARKETS (WITH OWN FORCES) ROLLING 12 MONTHS percentages in million euros 3,6 4 3 000 2,9 2 500 2 564 2 305 2 1,8 2 000 1 500 1 534 0 1 000 -2 500 3M 2014 3M 2015 3M 2016 3M 2017 3M 2018 31.12.2012 31.12.2013 31

  12. Slide 12: Housing Market

    Housing Market CONSUMER CONFIDENCE INDICATOR NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE INDEX difference between percentages of pos. and neg. responses (4 QUARTER ROLLING AVERAGE) (2013=100) 4 160 150 0 0,1 140 130 -4 120 -5,9 110 -8 100 - 9,6 90 -12 80 2013 2014 2015 2016 2017 -16 Es

  13. Slide 13: 2018 Strategic Directions

    2018 Strategic Directions Construction for client:  Managing risks of large objects  Preferred partner for private customers who value reliability and quality  Clearer focus on construction tenders, efficiency of bidding resources  Internal efficiency and cost savings, incl. with the help of tec

  14. Slide 14: 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

  15. Slide 15: 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 15

  16. Slide 16: 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

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