Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Q2 2016 Earnings Presentation
17 slides from Merko Ehitus As's earnings presentation, Aug 4, 2016
Slide 1: AS Merko Ehitus 6 months and Q2 2016 interim report
AS MERKO EHITUS 6 months and Q2 2016 interim report 4 August 2016 BAUHAUS shopping centre
Slide 2: Agenda
Agenda 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 2 Hilton Tallinn Park Hotel
Slide 3: Merko group key highlights Q2 2016
Merko group key highlights Q2 2016 Q2 profitability improved and gross margin increased to 9.3%. Revenue EUR 59m in Q2 and EUR 106m in 6m lower than in 2015. Expected growth in revenues from general construction projects in Estonian construction service segment. Sale of non-strategic land pl
Slide 4: Merko group key financial highlights
Merko group key financial highlights EUR million 6M 2016 6M 2015 Variance Q2 2016 Q2 2015 Variance 2015 Revenue 105.6 116.2 -9.2% 58.7 70.6 -16.8% 251.0 Gross profit 8.5 8.9 -4.9% 5.4 5.4 +1.1% 23.0 Gross profit margin (%) 8.0 7.7 +4.6% 9.3 7.6 +21.5% 9.1 EBITDA 4.6 5.6 -17.9% 3.4 3.7 -8.3% 15.5 Pro
Slide 5: Revenues and gross profit Q2 2016
Revenues and gross profit Q2 2016 REVENUES Strong performance from Estonian construction service segment (revenues up by 13% y-o-y). Major Estonian projects started in 2015 gain momentum as design stages near finish and construction high season gets underway. Decrease of Latvian and Lithuanian
Slide 6: Revenues and gross profit 6M 2016
Revenues and gross profit 6M 2016 REVENUES Strong performance from Estonian construction service (revenues up by 13% y-o-y). Continuing decline of public orders (only 20% share in portfolio). Civil engineering construction volumes in a slump which has affected profitability. Decrease of Latvia
Slide 7: Real estate development - apartments
Real estate development - apartments Q2 projects launched as planned. Closely monitoring increased supply in Tallinn and Vilnius, to be prepared for longer sales periods. 159 apartments sold in 6M (6M 2015: 168; 12M 2015: 403) for EUR 17.4m (6M 2015: EUR 31.7m; 12M 2015: EUR 61.4m). Construction
Slide 8: Secured Order Book
Secured Order Book Secured order book 29% higher compared to same period last year (EUR 279m as at 30.06.2016 vs EUR 217m as at 30.06.2015). Total new contracts signed 6M 2016 EUR 109m (6M 2015: 121m; 12M 2015: 247m). Q2 2016 new contracts EUR 87m (incl. a contract with joint venture for EUR 2
Slide 9: Financial position
Financial position Group’s liquidity position maintained, cash at EUR 21.7m. The net debt amounted to EUR 13m and debt ratio at 16% (30.06.2015: EUR 11m and 16%; 31.12.2015: EUR -9m and 15%). Strong liquidity buffer as group is still self-funding a large proportion of its own development project
Slide 10: Dividend
Dividend EUR 9m dividends (EUR 0.51 per share) paid in Q2 2016. 2016 dividend rate at 90% and gives a yield of 6%. Dividend rate of 90% was over target (50-70%), as construction orders are limited, prices are down and the supply for apartments is increasing – improving the profitability is com
Slide 11: Stock Exchange overview
Stock Exchange overview Market Cap EUR 140.0m (31.12.2015: EUR 150.1m) -6.7% during 6M No of % of total % of total Shareholders Variance shares 30.06.2016 31.03.2016 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
Slide 12: Baltic's construction market
Baltic’s construction market Source: Local national statistical offices Source: European Commission Directorate-General for Economic and Financial Affairs Marginal changes in total construction prices, as labour force costs continue to increase. No significant pressure on input prices expected as
Slide 13: Housing market in Baltics
Housing market in Baltics Source: European Commission Directorate-General for Economic and Financial Affairs Source: Eurostat Demand remains for good quality and optimal price level residential premises in all Baltic capitals. Continuing positive macro development supporting the residential mark
Slide 14: Future perspectives 2016+
Future perspectives 2016+ Leading regional construction company. Preferred general contractor to private clients and large projects. To distinguish with the best and most motivated specialist and construction managers, to be a reliable partner and hold a high standard of quality. We believe that
Slide 15: Merko Group in brief
Merko Group in brief Wide scope of Home markets: Estonia, Latvia and Lithuania Share quoted on construction services: Nasdaq OMX • General construction Tallinn since 1997 • Engineering construction • Road construction • Real estate projects Competitive advantages: • Broad range of The largest listed
Slide 16: 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 road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 16
Slide 17: 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