SRV Yhtiot Oyj · OMXHEX:SRV1V
SRV Yhtiot Oyj — SRV Group — Q3 2009 Earnings Presentation
33 slides from SRV Yhtiot Oyj's earnings presentation, Nov 11, 2009
Slide 1: SRV – Constructively different
SRV – Constructively different Interim Report January – September 2009 Hannu Linnoinen 11 November 2009 Acting CEO 1
Slide 2: January – September 2009 in brief
January – September 2009 in brief • Revenue EUR 264.9 million (EUR 415.5 million January-September 2008) • Operating profit EUR 7.2 million (EUR 32.2 million) • Profit before taxes EUR 3.5 million (EUR 26.3 million) • Order backlog EUR 464.8 million (EUR 455.2 million) • New agreements EUR 275.8 mil
Slide 3: Business Premises
Business Premises Change 1-9 1-9 1-12/ 7-9 7-9 1-9 09 vs 2009 2008 1-9 08 2008 2009 2008 Revenue, MEUR 141.1 271.2 -130.1 349.1 40.2 74.3 Operating profit, MEUR 13.7 21.8 -8.1 27.8 3.1 3.7 Operating profit, % 9.7% 8.0% 8.0% 7.7% 4.9% Order backlog, MEUR 252.0 228.8 +23.2 265.7 • Revenue decreased by
Slide 4: Housing
Housing Change 1-9 1-9 1-12/ 7-9 7-9 1-9 09 vs 2009 2008 1-9 08 2008 2009 2008 Revenue, MEUR 104.2 94.5 +9.7 127.9 37.9 31.4 Operating profit, MEUR 2.9 1.9 +1.0 0.7 1.0 0.5 Operating profit, % 2.7% 2.0% 0.6% 2.7% 1.7% Order backlog, MEUR 186.5 186.3 +0.2 154.0 Housing sales, units 121 128 -7 141 43
Slide 5: Recovery of housing market in Helsinki metropolitan area
Recovery of housing market in Helsinki metropolitan area • Number of start-ups is increasing • Demand for small units has shifted to bigger units • Prices have levelled-off Source: Etuovi.com 1.11.2009, executed housing sales , apartment blocks, Espoo, Helsinki, Vantaa 5
Slide 6: Housing
Housing Residential production 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/ in Finland (units) 2009 2009 2009 2008 2008 2008 2008 Start-ups 0 0 4 0 49 53 8 Sold 43 51 27 13 32 63 33 Completed 1) 37 93 58 0 31 104 125 Completed and unsold 1) 161 185 156 133 140 128 105 Under construction 1 80 118 211 265 251
Slide 7: International
International Change 1-9 1-9 1-12/ 7-9 7-9 1-9 09 vs 2009 2008 1-9 08 2008 2009 2008 Revenue, MEUR 19.6 49.8 -30.3 60.1 6.2 21.0 Operating profit, MEUR -5.9 11.9 -17.9 9.2 -1.5 10.8 Operating profit, % -30.3% 24.0% 15.4% -24.1% 51.5% Order backlog 26.3 40.2 -13.9 35.6 • Decrease in revenue and opera
Slide 8: Russian real estate fund project
Russian real estate fund project • Joint venture of SRV, VTB Capital (an investment company of VTB, the second largest bank in Russia) and Deutsche Bank. Agreement was signed on 4 June 2009 • The fund will invest mainly in construction of office, retail and hotel projects as well as top end resident
Slide 9: SRV Group
SRV Group Change 1-9 1-9 1-12/ 7-9 7-9 1-9 09 vs 2009 2008 1-9 08 2008 2009 2008 Revenue, MEUR 264.9 415.5 -150.7 537.0 84.3 126.7 Operating profit, MEUR 7.2 32.2 -25.0 32.9 1.8 14.1 Operating profit, % 2.7% 7.7% 6.1% 2.1% 11.1% Financial income and exp., MEUR -3.7 -5.9 +2.2 -9.2 -1.2 -2.9 Profit be
Slide 10: Order backlog
Order backlog SRW 521 Oo International @ Housing EUR million 3/08 6/08 9/08 12/08 3/09 6/09 9/09 Le c Le 10 c ee
Slide 11: Competitive edge: SRV Approach
Competitive edge Project development Project management implementation SRV Approach 11
Slide 12: Project Development
Versatile business portfolio Business • Retail Premises • Offices and hotels Project Development • Logistics centres Housing • City apartments • Terraced houses • Retail Inter- national • Offices and hotels • Logistics centres 12
Slide 13: SRV’s blueprints
SRV’s blueprints Logistics Offices and retail Others Kerca, Kerava Septem City, St Petersburg Heureka, Vantaa Karisto, Lahti Eurograd, St Petersburg King’s Gate, Porvoo Mytischi, Moscow Keilaniemi Towers, Espoo Port of Oulu Shopping centre, Vaasa WTC Airport, Hki-Vantaa Helsinki City Spa 13
Slide 14: Outlook for 2009 reiterated
Outlook for 2009 reiterated • The international financial crisis has complicated the financing of property investments and weakened the economic outlook. Start-up decisions and housing sales, in particular, face uncertainties. • The trend in revenue, operating profit and earnings in 2009 will be aff
Slide 15: SRV Financial Report January – September 2009 Appendices
SRV Financial Report January – September 2009 Appendices 15
Slide 16: Group key figures
Group key figures Group key figures IFRS IFRS IFRS IFRS IFRS 1-9/ 1-9/ change, change, 7-9/ 7-9/ 1-12/ (EUR million) 2009 2008 MEUR % 2009 2008 2008 Revenue 264.9 415.5 -150.7 -36.3 84.3 126.7 537.0 Operating profit 7.2 32.2 -25.0 -77.7 1.8 14.1 32.9 Financial income and expenses, total -3.7 -5.9 2.
Slide 17: Key figures (1)
Key figures (1) IFRS IFRS IFRS IFRS IFRS 1-9/ 1-9/ 7-9/ 7-9/ 1-12/ 2009 2008 2009 2008 2008 Revenue EUR million 264.9 415.5 84.3 126.7 537.0 Operating profit EUR million 7.2 32.2 1.8 14.1 32.9 Operating profit, % of revenue % 2.7 7.7 2.1 11.1 6.1 Profit before taxes EUR million 3.5 26.3 0.6 11.2 23.
Slide 18: Key figures (2)
Key figures (2) IFRS IFRS IFRS IFRS IFRS 1-9/ 1-9/ 7-9/ 7-9/ 1-12/ 2009 2008 2009 2008 2008 Earnings per share, share issue adjusted EUR 0.04 0.49 0.01 0.21 0.43 Equity per share, share issue adjusted EUR 4.46 4.61 - - 4.54 Dividend per share, share issue adjusted EUR - - - - 0.12 Dividend payout ra
Slide 19: Consolidated income statement
Consolidated income statement Consolidated income IFRS IFRS IFRS IFRS IFRS statement 1-9/ 1-9/ change, change, 7-9/ 7-9/ 1-12/ (EUR million) 2009 2008 MEUR % 2009 2008 2008 Revenue 264.9 415.5 -150.7 -36.3 84.3 126.7 537.0 Other operating income 1.6 1.0 0.6 64.9 0.5 0.4 1.4 Change in inventories of
Slide 20: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income IFRS IFRS IFRS IFRS IFRS Statement of comprehensive income 1-9/ 1-9/ 7-9/ 7-9/ 1-12/ (milj. eur) 2009 2008 2009 2008 2008 Net profit for the period 1.4 18.0 0.1 7.6 15.3 Items recognised directly in equity: Exchange differences on translating foreign op
Slide 21: Consolidated balance sheet: Assets
Consolidated balance sheet: Assets Consolidated balance sheet IFRS IFRS change, IFRS (EUR million) 30.9.09 30.9.08 % 31.12.08 ASSETS Non-current assets Property, plant and equipment 16.9 25.9 -35.0 19.0 Goodwill 1.7 1.7 0.0 1.7 Other intangible assets 0.4 0.6 -28.6 0.5 Other financial assets 4.3 4.4
Slide 22: Consolidated balance sheet: Equity and liabilities
Consolidated balance sheet: Equity and liabilities Consolidated balance sheet IFRS IFRS change, IFRS (EUR million) 30.9.09 30.9.08 % 31.12.08 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent company Share capital 3.1 3.1 0.0 3.1 Invested free equity fund 87.3 87.3 0.0 87.3
Slide 23: Changes in Group equity 1-9/2009
Changes in Group equity 1-9/2009 Equity attributable to the equity holders of the parent company Invested Trans- Share Fair Retai- IFRS Share free lation Minority Total premium value ned Total (EUR million) capital equity differ- interest equity reserve reserve earnings fund ences Equity on 1.1.2009
Slide 24: Inventories
Inventories Inventories IFRS IFRS change, IFRS (EUR million) 30.9.09 30.9.08 % 31.12.08 Raw materials and consumables 0.0 0.0 171.6 0.0 Work in progress 64.5 89.6 -28.0 100.8 Land areas and plot-owning companies 153.7 119.2 28.9 142.1 Shares in completed housing corporations and real estate companie
Slide 25: Group and Segment information by quarter
Group and Segment information by quarter SRV Group IFRS IFRS IFRS IFRS IFRS IFRS IFRS (EUR million) 7-9/09 4-6/09 1-3/09 10-12/08 7-9/08 4-6/08 1-3/08 Revenue 84.3 94.2 86.4 121.4 126.7 142.4 146.4 Operating profit 1.8 3.5 1.9 0.7 14.1 9.2 8.9 Financial income and expenses, total -1.2 -1.0 -1.5 -3.3
Slide 26: Revenue and operating profit by quarter
Revenue and operating profit by quarter Revenue IFRS IFRS IFRS IFRS IFRS IFRS IFRS (EUR million) 7-9/09 4-6/09 1-3/09 10-12/08 7-9/08 4-6/08 1-3/08 Business Premises 40.2 46.1 54.8 77.9 74.3 92.2 104.8 Housing 37.9 40.5 25.8 33.3 31.4 37.1 26.0 International 6.2 7.6 5.8 10.2 21.0 13.1 15.7 Other Ope
Slide 27: Order backlog, invested capital and residential production in Finland by quarter
Order backlog, invested capital and residential production in Finland by quarter Order backlog IFRS IFRS IFRS IFRS IFRS IFRS IFRS (EUR million) 30.9.09 30.6.09 31.3.09 31.12.08 30.9.08 30.6.08 31.3.08 Business Premises 252.0 224.3 252.8 265.7 228.8 291.1 235.2 Housing 186.5 203.3 169.6 154.0 186.3 1
Slide 28: Segments: Assets, liabilities and invested capital
Segments: Assets, liabilities and invested capital Assets IFRS IFRS change, change, IFRS (EUR million) 30.9.09 30.9.08 MEUR % 31.12.08 Business Premises 90.8 114.7 -23.9 -20.9 116.9 Housing 152.0 138.4 13.6 9.8 158.4 International 169.7 156.0 13.7 8.8 158.6 Other Operations 191.7 168.4 23.3 13.9 185
Slide 29: Segments: Inventories
Segments: Inventories Inventories IFRS IFRS change, IFRS (MEUR) 30.9.09 30.9.08 MEUR 31.12.08 Land areas and plot-owning companies 153.7 119.2 34.4 142.1 Business Premises 26.1 22.6 3.6 24.6 Housing 42.8 35.3 7.5 41.6 International 84.5 61.4 23.1 76.0 Work in progress 64.5 89.6 -25.1 100.8 Business
Slide 30: Unbuilt land areas and land acquisition commitments
Unbuilt land areas and land acquisition commitments Land reserve Business International Housing Total 30.9.2009 Operations Operations Unbuilt land areas and land acquisition commitments Building rights*, m2 193 000 269 000 859 000 1 321 000 Capital invested incl. commitments, EUR million 36 67 112 2
Slide 31: Personnel
Personnel Share of Group Personnel by business area 30.9.2009 30.9.2008 personnel, 31.9.2009, % Business Premises 278 297 37.2 Housing 225 296 30.1 International 164 212 22.0 Other Operations 80 99 10.7 Group, total 747 904 100.0 Average number of personnel, 1-9/2009 31
Slide 32: Shareholders 30 September 2009
Shareholders 30 September 2009 Number of % of shares Shareholder shares and votes Kokkila Ilpo 13 552 000 36.9 % Kolpi Investments Oy 5 178 129 14.1 % Heliövaara Eero 1 909 483 5.2 % Keskinäinen Työeläkevakuutusyhtiö Varma 1 430 000 3.9 % Valtion Eläkerahasto 700 000 1.9 % Srv Yhtiöt Oyj 758 438 2.1
Slide 33: Calculation of key figures
Calculation of key figures Net interest-bearing debt Gearing ratio, % = 100 x Total equity Profit before taxes - income taxes Return on equity, % = 100 x Total equity. average Profit before taxes + interest and other financial Return on investment, % = 100 x expenses Invested capital. average Total