Consti Oyj · OMXHEX:CONSTI
Consti Oyj — FY2022 Earnings Presentation
30 slides from Consti Oyj's earnings presentation, Feb 3, 2023
Slide 1: Consti Plc Financial Statements 1 January – 31 December 2022
CONSTI PLC FINANCIAL STATEMENTS 1 JANUARY – 31 DECEMBER 2022 CEO Esa Korkeela CFO Joni Sorsanen
Slide 2: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 1 3 February 2023 Consti Plc / Financial statements 1-12/2022
Slide 3: Highlights of FY 2022 and Q4/2022
Highlights of FY 2022 and Q4/2022 Net sales grew and profitability improved NET SALES: ADJUSTED EBIT: FREE CASH FLOW: EUR 305.2m EUR EUR 11.4m EUR EUR 18.0m EUR FY 2022 +10.7m FY 2022 +1.8m FY 2022 +4.3m EUR +16.4m Q4/2022 EUR +1.9m Q4/2022 EUR +12.5m Q4/2022 EUR 93.3m EUR 4.8m EUR 10.4m EUR EUR No.
Slide 4: Consti Group's net sales overview 2018-22
Consti Group’s net sales overview 2018-22 Strongest growth in Housing Companies business area, capital region outgrew other geographical areas in 2022. Service business grew by 10.4% year-on-year Net sales by business area Net sales by geography Net sales by customer group Net sales by project / ser
Slide 5: Quarterly performance overview
Quarterly performance overview Net sales, order intake and order backlog continued to grow year-on-year QUARTERLY NET SALES (EUR m) QUARTERLY ORDER INTAKE (EUR m) QUARTERLY ORDER BACKLOG (EUR m) FY’20NET FY’21 NET FY’22 NET FY’20 ORD. FY’21 ORD. FY’22 ORD. SALES: SALES: SALES: INTAKE: INTAKE: INTAKE
Slide 6: Quarterly net sales development
Quarterly net sales development Q4/2022 net sales amounted to EUR 93.3m, growing 12.9% year-on-year Quarterly net sales development Q1/2020 – Q4/2022 (EUR m) Comments ■ Q4/2022 net sales EUR 93.3m (82.6m) 115 – Year-on-year growth 12.9% 93,3 – Housing Companies net sales EUR 32.4m (27.3m) 95 – Corpo
Slide 7: Quarterly Adjusted EBIT and EBIT development
*Adjusted EBIT = EBIT before items affecting comparability (IAC) Quarterly Adjusted EBIT and EBIT development ▪ IAC during the comparison periods 2020 and 2021 = Financial impact of arbitral award received in June 2021 Full-year EBIT improved and amounted to EUR 11.4m as well as legal cost related t
Slide 8: Quarterly order intake development
Quarterly order intake development Q4/2022 order intake EUR 109.1 million (66.9m), up by 63.1 percent y-o-y Quarterly order intake development Q1/2020 – Q4/2022 (EUR m) Comments ■ Q4/2022 order intake EUR 109.1m (66.9m) 109,1 100 – Year-on-year growth 63.1% 98,7 98,5 – Examples of new orders receive
Slide 9: Quarterly order backlog development
Quarterly order backlog development Q4/2022 order backlog at EUR 246.7 million (218.6m), up by 12.8% y-o-y Quarterly order backlog development Q1/2020 – Q4/2022 (EUR m) Comments 300 ■ Q4/2022 order backlog at EUR 246.7m (218.6m) – Order backlog at year-end 12.8% higher compared 250 to previous year-
Slide 10: Quarterly development in number of personnel
Quarterly development in number of personnel Total number of personnel at the end of Q4/2022 increased by 14 year-on-year Quarterly development in number of personnel Q1/2020 – Q4/2022 Comments 1200 ■ Number of personnel at the end of Q4/2022 975 998 994 990 983 (961), increase of 14 977 977 971 969
Slide 11: Implementation of Group Strategy progressed according to plan in 2022
Implementation of Group Strategy progressed according to plan in 2022 Focus Areas Objectives Achievements in FY2022 • Strong growth in Housing Companies business area • Growth in current • Controlled and profitable growth in attractive • Positioned strengthened in renovation of row houses Utilising
Slide 12: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 11 3 February 2023 Consti Plc / Financial statements 1-12/2022
Slide 13: Quarterly free cash flow development
Quarterly free cash flow development FY 2022 free cash flow improved clearly and was EUR 18.0 million Quarterly free cash flow1) and EBITDA Q1/2020 – Q4/2022 (EUR m) Comments 25 ■ Q4/2022 free cash flow EUR 10.4m (6.1m) Cash conversion Q1 ’20 – Q4 ’22: 117% – EBITDA amounted to EUR 5.7m (4.0m) Free
Slide 14: Quarterly net working capital development
Quarterly net working capital development Net working capital at EUR -17.5 million at the end of Q4/2022 Quarterly net working capital1) Q1/2020 – Q4/2022 (EUR m) Comments Q3/22 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q4/22 ■ Net working capital EUR -17.5m (-12.3m) at the end of
Slide 15: Quarterly balance sheet structure
Quarterly balance sheet structure Q4 financial position strengthened compared to previous quarter & previous year Quarterly net debt, equity ratio and gearing Q1/2020 – Q4/2022 Comments 35 ■ Financial position as per 31 December 2022 105% 30 strengthened compared to previous quarter & 90% previous y
Slide 16: Maturity distribution of interest-bearing debt
Maturity distribution of interest-bearing debt (31 December 2022) Gross interest-bearing debt (excl. IFRS 16) decreased by EUR 6.7 million in FY2022 Maturity profile of interest-bearing debt1) as per 31 Dec 2022 (EUR m) Comments 35 ■ Consti’s gross interest-bearing debt at EUR 20.3 million (excludin
Slide 17: Reported ROI and Consti ROCE
Reported ROI1) and Consti ROCE2) Return on capital improved as a result of improved profitability and capital efficiency Reported ROI1) and Consti ROCE2) Q4/2019 – Q4/2022 (%) Comments 35% ■ In financial years 2020-2022, Consti’s return on capital employed has exceeded 20% 27,8 % 30% 25,2 % 25,0 % 2
Slide 18: Realisation of Consti's long-term financial targets in 2022
Realisation of Consti’s long-term financial targets in 2022 Growth Profitability Cash flow Capital structure Dividends The Company’s aim is to distribute as Net sales growing Cash conversion Net debt to adjusted EBIT-margin dividends at least 50 faster than the ratio exceeding 90 EBITDA ratio of les
Slide 19: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 18 3 February 2023 Consti Plc / Financial statements 1-12/2022
Slide 20: Economic sentiment and construction confidence in Finland below long-term average
Economic sentiment and construction confidence in Finland below their long-term average levels Economic Sentiment and Construction Confidence / Finland (2007 – 12/2022) Comments 150 ■ During Q4/2022, the decline in Economic Economic Sentiment Indicator Sentiment Indicator (ESI) continued but at a 14
Slide 21: Renovation to outgrow new building in 2023-25
Renovation to outgrow new building in 2023-25, both residential and non- residential renovation projected to grow going forward Finnish new building and renovation market development 2008 – 2025 Comments EUR b Renovation volume (real) New building volume (real) ■ According to Euroconstruct, the valu
Slide 22: Consti has fared relatively well in the current inflationary market environment
Consti has fared relatively well in the current inflationary market environment Building cost index rose by 5.3% y-o-y and 0.1% m-o-m in December 2022. The growth rate of costs of materials has leveled off during H2/2022 Building cost index by input heading Index figure Annual change (%) Annual chan
Slide 23: Outlook and guidance for 2023
Outlook and guidance for 2023 ■ In 2023, Finland's house construction volume is estimated to decrease by approximately 3.7 percent from the previous year. New construction is predicted to decrease by about 7.2 percent. ■ However, it is expected that renovation will continue on a growth path of aroun
Slide 24: Summary
Summary 1. Profitability improved in Q4 as well in FY 2022. Long-term work to improve profitability continued 2. Net sales, order intake and order backlog grew in FY 2022 3. The Board of Directors proposes a dividend of EUR 0.60 per share, growing 33.3% year-on-year 4. Implementation of strategy pro
Slide 25: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 24 3 February 2023 Consti Plc / Financial statements 1-12/2022
Slide 26: Consti's strategic focus areas
To realise its vision and goals, Consti has defined the following strategic focus areas: 1• Growth in current business controlled and profitable growth in attractive renovation and building technology segments 2• New businesses comprehensively answering customer needs by growing in attractive ne
Slide 27: Consti OPTIMI, a great example of valuable solutions for customers
Consti OPTIMI , a great example of Consti’s ability to generate valuable and TM relevant solutions for our customers ■ A multi-energy system that manages the building's energy economy – efficient heating and cooling with the lowest possible electricity consumption ■ The system reduces total energy c
Slide 28: Consti's Green Transition
More information on the progress of Consti’s Consti’s Green Transition sustainability work can be found in the sustainability report published in April -22 ■ Consti has announced CO2 emission reduction targets for its own operations (Scope 1–2) ■ Consti’s target is to reduce its own CO2 emissions by
Slide 29: Consti as an investment - Key investment highlights
Consti as an investment - Key investment highlights ■ Successful turnaround since 2019 ■ Aging building stock driving need-based renovation ■ Steadily improving profitability ■ Climate change and energy efficiency requirements ■ Solid platform for future growth Financial ■ Urbanisation and changes i
Slide 30: Financial Statements 1-12/2022 Consti Plc
FINANCIAL STATEMENTS 1-12/2022 CONSTI PLC FY2022 CONSTI PLC VALIMOTIE 16 FI-00380, HELSINKI BUSINESS ID 2203605-05 WWW.CONSTI.FI 29 26 April 2019 Consti Group Plc / Interim Report 1-3/2019