Ncc Ab Class A · OMXSTO:NCC_A
Ncc Ab Class A — Q4 2020 Earnings Presentation
37 slides from Ncc Ab Class A's earnings presentation, Jan 28, 2021
Slide 1: Q4 2020
Q4 2020 1 2021-01-28 NCC AB
Slide 2: Tomas Carlsson, CEO
Tomas Carlsson CEO 2 2021-01-28 NCC AB
Slide 3: Following our designated path
Following our designated path Measures to boost The contracting business performance in Industry is improving quarter after taken – will deliver result quarter from 2021 Five new property development projects Strong cashflow from started in 2020 and strong operating activities letting in Q4 3 2021-0
Slide 4: Earnings Q4 and 2020
Earnings Q4 and 2020 EBIT margin SEK M EBIT margin 2.2% 2.5% 1 200 1.4% 1200 1 360 1 296 3.7% 800 800 2.5% 670 400 400 379 256 0 0 -400 -400 -1.3% -764 -800 -800 Q4 2018 Q4 2019 Q4 2020 Jan-Dec 2018 Jan-Dec 2019 Jan-Dec 2020 4 2021-01-28 NCC AB
Slide 5: Earnings Q4
Earnings Q4 Improved earnings. Positive impact of SEK 40 M from divestment of Optiplan in Finland No large projects recognized in profit this year compared to last year 55 MSEK in cost for program to boost profitability. 30 MSEK for closing rebar plant Negative phasing effect from later closing of d
Slide 6: Earnings 2020
Earnings 2020 Stronger in contracting and property development Contracting Higher earnings in Infrastructure, Building Sweden and Building Nordics 112 152 17 Strong year Road Services for Property Building Building Development Infra- Sweden Nordics structure Costs for program to boost profitability.
Slide 7: Orders received
Orders received Normal levels in the quarter SEK M 20 000 15 000 10 000 5 000 17 750 15 501 16 070 12 769 13 708 15 458 12 730 13 984 9 026 0 Q4 2018 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 7 2021-01-28 NCC AB
Slide 8: Residential orders received
Residential orders received SEK M 5 000 4 000 3 000 2 000 1 000 4 561 1 059 2 239 1 249 1 215 1 045 2 022 1 263 1 256 1 524 1 384 3 174 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 Orders Received Residential NCC Average 8 2021-01-28 NCC AB
Slide 9: Order backlog
Order backlog More early involvement SEK M 70 000 60 000 50 000 40 000 30 000 20 000 63 027 56 837 61 370 61 658 57 800 62 333 59 486 54 821 50 945 10 000 0 Q4 2018 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 9 2021-01-28 NCC AB
Slide 10: Net Sales
Net Sales Lower level – part PD phasing, part Infrastructure and Building Sweden SEK M 20 000 15 000 10 000 5 000 17 832 14 610 13 951 18 239 14 431 12 820 14 905 11 434 11 766 0 Q4 2018 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 10 2021-01-28 NCC AB
Slide 11: Order backlog vs net sales
Order backlog vs net sales Strong in Building Sweden and Building Nordics 20 000 15 000 10 000 5 000 15 754 13 375 17 084 17 670 14 856 12 134 0 Infrastructure Building Sweden Building Nordics Order backlog Net sales 2020 11 2021-01-28 NCC AB
Slide 12: Financial objectives 2020
Financial objectives 2020 Operating Net debt Return Dividend policy margin on equity < 2.5 ≥ 40% ≥ 4.0% x EBITDA ≥ 20% of profit after tax Proposed 2.5% -0.03*x 37% 2020 5.00 SEK per (2.2%) (-0.03x) (32%) share 43% of profit after tax *Net cash at year-end 12 2021-01-28 NCC AB
Slide 13: Financial objectives from 2021
Financial objectives from 2021 Earnings per Net debt Dividend policy share 16.00 < 2.5 ≥ 40% x EBITDA of profit after tax SEK 2023 11.68* -0.03*x 2020 SEK (-0.03x) *0.90 SEK one-time effect *Net cash at year-end from low tax rate in 2020 13 2021-01-28 NCC AB
Slide 14: Health & Safety: Absence and accident frequency
Health & Safety: Absence and accident frequency LTIF 1 day* and number of accidents going down *LTIF 1 day - Lost Time Injury Frequency - work related accidents with one day or more absence from ordinary duties per one million worked hours. 14 2021-01-28 NCC AB
Slide 15: Health & Safety: Absence and accident frequency
Health & Safety: Absence and accident frequency LTIF more than 4 days* going down Target 3.0 2022 *LTIF more than 4 days - Lost Time Injury Frequency - work related accidents with over four days of absence from ordinary duties per one million worked hours. 15 2021-01-28 NCC AB
Slide 16: Market: No clear impact from corona
Market: No clear impact from corona • Ongoing projects not impacted by corona pandemic to date – adapting to changing regulation well • Strong underlying demand. Potential long-term negative impact from economic downturn due to corona pandemic still hard to assess • Signs of slower decision processe
Slide 17: Susanne Lithander, CFO
Susanne Lithander CFO 17 2021-01-28 NCC AB
Slide 18: Balanced business areas
Balanced business areas Net sales per country Total net sales per BA Property Norway Development 5% 12% (15) (5) Industry Infrastructure Finland 22% (19) 29% (34) 13% (13) 15% (14) 60% (58) Sweden 21% (19) 23% (23) Denmark Building Nordics Building Sweden 18 2021-01-28 NCC AB
Slide 19: NCC Infrastructure
NCC Infrastructure Stronger margins. Orders received: More early involvement and some impact from lower hit-rate on tenders in some regions Net Sales Q4 Jan-Dec SEK M 2020 2019 2020 2019 17% (19) Orders received 2,476 3,868 12,828 16,601 7% (6) Order backlog 15,754 20,389 15,754 20,389 Net sales 4,8
Slide 20: Divestment Road Services
Divestment Road Services • RS Sweden and Finland – closed in Q4 with negative effect • RS Denmark – closing still in process, with expected positive effect • Road Services reported as part of Other & Eliminations from Q4 ‒ Q4: Earnings SEK -34 M (14), including negative effect ‒ 2020: Earnings SEK -
Slide 21: NCC Building Sweden
NCC Building Sweden Strong order backlog and earnings growing Q4 Jan-Dec SEK M 2020 2019 2020 2019 Orders received 3,860 4,107 14,484 12,741 Order backlog 17,670 16,561 17,670 16,561 Net sales 3,792 4,264 13,375 14,851 EBIT 126 103 381 364 EBIT margin, % 3.3 2.4 2.9 2.5 Power substation building in
Slide 22: Residential orders received in Sweden
Residential orders received in Sweden On normal levels – approx. 70% rentals in 2020 SEK M 1 600 1 400 1 200 1 000 800 600 400 1 432 1 237 1 066 1 231 200 320 552 765 971 813 435 993 211 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 Orders Received Residential Average 22 2021-01-28 NCC AB
Slide 23: NCC Building Nordics
NCC Building Nordics Strong margin in Q4, strong order backlog Q4 Jan-Dec Net Sales SEK M 2020 2019 2020 2019 Orders received 5,203 3,001 11,877 16,080 48% (52) Order backlog 14,856 15,807 14,856 15,807 14% Net sales 3,342 3,485 12,134 11,769 (15) Finland EBIT 181 99 343 231 38% Norway (33) EBIT mar
Slide 24: Residential orders received in Building Nordics
Residential orders received in Building Nordics A strong quarter in Denmark and Finland SEK M 3 600 3 000 2 400 1 800 1 200 600 1 038 3 590 2 181 739 807 663 280 785 450 822 458 153 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 Orders Received Residential Average 24 2021-01-28 NCC AB
Slide 25: NCC Industry: Stone and asphalt volumes
NCC Industry: Stone and asphalt volumes Volumes on par with previous years Stone material sold, thousands of tons Asphalt sold, thousands of tons 10 000 3 000 9 000 8 000 2 500 7 000 2 000 6 000 5 000 1 500 1 935 1 904 4 000 1 000 3 000 2 000 500 1 788 2 518 1 512 2 503 1 604 7 539 5 216 7 999 7 880
Slide 26: NCC Industry
NCC Industry Cost for measures to boost profitability SEK 85 M in the quarter Expected to generate 60 MSEK in cost reduction from 2021 Q4 Jan-Dec Net Sales SEK M 2020 2019 2020 2019 9% (9) Orders received 2,762 3,040 12,251 12,852 16% (17) Order backlog 2,595 2,967 2,595 2,967 20% (19) Net sales 3,5
Slide 27: NCC Property Development
NCC Property Development Two projects, Arendal 4 and Björkö school recognized in profit Q4 Jan-Dec SEK M 2020 2019 2020 2019 Net sales 464 1,989 2,737 3,056 EBIT 54 273 434 313 Capital employed 6,433 4,935 6,433 4,935 EBIT margin % 11.6 13.7 15.9 10.2 ROCE % 8.0 6.2 Masthuggskajen 27 2021-01-28 NCC
Slide 28: Two new projects started in Q4
Two new projects started in Q4 Project ”We Land” in Finland and project “Kontorværket 1” in Denmark Lettable space, sqm 300 000 25 21 21 250 000 19 18 18 20 17 17 200 000 15 15 15 15 14 15 Finland 150 000 Norway 10 Denmark 100 000 Sweden 5 Number of ongoing and 50 000 completed projects 0 0 Q1 Q2 Q3
Slide 29: Strong letting in Q4
Strong letting in Q4 22 new contracts in Q4 – almost half of all contracts during the year 300 000 50% 250 000 40% 200 000 30% 150 000 20% 100 000 10% 50 000 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during
Slide 30: Letting and completion status
Letting and completion status Letting higher than completion ratio in the property development 100% 90% 80% 70% 60% 50% Total letting ratio 40% Total 30% completion 20% ratio 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 30 2021-01-28 NCC AB
Slide 31: Earnings
Earnings Tax effect from property sales and timing effect from last year Q4 Jan-Dec SEK M 2020 2019 2020 2019 Earnings in segments (all BAs) 573 740 1,902 1,631 NCC HQ and subsidiaries -93 -55 -168 -204 Internal gains -12 15 -64 -24 Other group adjustments -55 -44 -235 -126 Road Services -34 14 -75
Slide 32: Strong cashflow from operating activities
Strong cashflow from operating activities SEK Bn 4 Q4 Jan-Dec SEK M 2020 2019 2020 2019 3 From operating activities 1,077 1,448 2,656 2,774 2 From property projects -704 349 -1,262 -1,165 1 Other working capital 604 1,933 174 605 0 Investing activities -222 -155 -463 -701 -1 Cash flow before financi
Slide 33: Net debt per Dec 31, 2020
Net debt per Dec 31, 2020 Net debt* / EBITDA 1 500 Target < 2.5x ** 500 83 Dec 31, 2020 -0.03x 64 -500 -1 500 -2 840 -2 832 -2 500 -3 500 -1 732 -2 055 -4 500 -5 500 -6 500 Corporate net debt -7 500 Leasing liabilities (incl IFRS 16) Pension liability -8 500 2019 Q4 2020 Q4 *Corporate net debt exclu
Slide 34: Tomas Carlsson, CEO
Tomas Carlsson CEO 34 2021-01-28 NCC AB
Slide 35: AGM March 30, 2021
AGM March 30, 2021 • Proposed dividend 5,00 SEK 2.50 SEK April 1, 2021 • Preparing various scenarios for the AGM • Information and material will be published no later than 4 weeks before the meeting 2.50 SEK November 9, 2021 35 2021-01-28 NCC AB
Slide 36: Summary: Following our designated path
Summary: Following our designated path Measures to boost The contracting business performance in Industry is improving quarter after taken – will deliver result quarter from 2021 Five new property development projects Strong cashflow from started in 2020 and strong operating activities letting in Q4
Slide 37: NCC AB
37 2021-01-28 NCC AB