Consti Oyj · OMXHEX:CONSTI
Consti Oyj — H1 2022 Earnings Presentation
27 slides from Consti Oyj's earnings presentation, Jul 22, 2022
Slide 1: Consti Plc Half-Year Financial Report 1 January – 30 June 2022
CONSTI PLC HALF-YEAR FINANCIAL REPORT 1 JANUARY – 30 JUNE 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 22 July 2022 Consti Plc / H1 Financial Report 2022
Slide 3: Highlights of the H1/2022 and Q2/2022
Highlights of the H1/2022 and Q2/2022 Solid performance continued, order backlog at a good level NET SALES: ADJUSTED EBIT: FREE CASH FLOW: EUR 132.9m EUR EUR 3.3m EUR EUR 1.7m EUR H1 2022 +2.2m H1 2022 0.0m H1 2022 +3.9m EUR +2.8m Q2/2022 EUR -0.1m Q2/2022 EUR +6.0m Q2/2022 EUR 73.1m EUR 2.9m EUR 2.
Slide 4: Quarterly performance overview
Quarterly performance overview Net sales, order intake and order backlog grew year-on-year QUARTERLY NET SALES (EUR m) QUARTERLY ORDER INTAKE (EUR m) QUARTERLY ORDER BACKLOG (EUR m) FY’20 ORD. FY’21 ORD. FY’20 NET SALES: FY’21 NET SALES: INTAKE: INTAKE: EUR 274.6m EUR 288.8m EUR 214.3m EUR 275.1m 98
Slide 5: Quarterly net sales development
Quarterly net sales development Q2 net sales amounted to EUR 73.1m, growing 3.1% year-on-year Quarterly net sales development Q1/2020 – Q2/2022 (EUR m) Comments 115 ■ Q2/2022 net sales EUR 73.1m (70.9m) – Year-on-year growth 3.1% 95 – Housing Companies net sales EUR 25.4m (21.7m) ➔ net Quarterly Net
Slide 6: Quarterly Adjusted EBIT and EBIT development
*Adjusted EBIT = EBIT before items affecting comparability (IAC) Quarterly Adjusted EBIT and EBIT development ▪ IAC during the reporting period and comparison periods = Financial impact of arbitral award received in Q2 profitability in line with expectations June 2021 as well as legal cost related t
Slide 7: Quarterly order intake development
Quarterly order intake development Q2/2022 order intake EUR 98.7 million, growth of 0.3% year-on-year Quarterly order intake development Q1/2020 – Q2/2022 (EUR m) Comments ■ Q2/2022 order intake EUR 98.7m (98.5m) 100 – Year-on-year growth +0.3% 98,7 – EUR 44.8 million of Q2 order intake generated by
Slide 8: Quarterly order backlog development
Quarterly order backlog development Q2/2022 order backlog at EUR 240.8 million, growth of 1.9% y-o-y Quarterly order backlog development Q1/2020 – Q2/2022 (EUR m) Comments 300 ■ Q2/2022 order backlog at EUR 240.8m (236.2m) – Year-on-year growth 1.9% 250 – Order backlog up by 10.1% compared to the en
Slide 9: Quarterly development in number of personnel
Quarterly development in number of personnel Total number of personnel 997 at the end of Q2/2022, somewhat below last year’s level Quarterly development in number of personnel Q1/2020 – Q2/2022 Comments 1200 ■ Number of personnel at the end of Q2/2022 997 (1,003), decrease of 6 998 990 977 977 971 9
Slide 10: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 9 22 July 2022 Consti Plc / H1 Financial Report 2022
Slide 11: Quarterly free cash flow development
Quarterly free cash flow development Q2/2022 free cash flow improved clearly year-on-year and was EUR 2.6 million Quarterly free cash flow1) and EBITDA Q1/2020 – Q2/2022 (EUR m) Comments 25 ■ Q2/2022 free cash flow EUR 2.6m (-1.4m) – EBITDA amounted to EUR 3.7m (0.3m) Free cash flow and EBITDA (EUR
Slide 12: Quarterly net working capital development
Quarterly net working capital development Net working capital at EUR -10.0 million at the end of Q2/2022 Quarterly net working capital1) Q1/2020 – Q2/2022 (EUR m) Comments Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 ■ Net working capital EUR -10.0m (-10.0m) at the end 0 of Q2/2022 Ne
Slide 13: Quarterly balance sheet structure
Quarterly balance sheet structure Q2 financial position strengthened year-on-year Quarterly net debt, equity ratio and gearing Q1/2020 – Q2/2022 Comments 30 100% ■ Q2/2022 financial position strengthened year-on-year 90% 25 – Improvement in profitability and cash flow 76,3 % 80% – Dividend distribut
Slide 14: Maturity distribution of interest-bearing debt (30 June 2022)
Maturity distribution of interest-bearing debt (30 June 2022) No significant bank loan redemptions in the coming years Maturity profile of interest-bearing debt1) as per 30 June 2022 (EUR m) Comments 35 ■ Consti’s gross interest-bearing debt at EUR 26.1 million (excluding IFRS 16) at the end of Q2/2
Slide 15: Reported ROI and Consti ROCE
Reported ROI1) and Consti ROCE2) Solid return on capital employed Reported ROI1) and Consti ROCE2) Q4/2019 – Q2/2022 (%) Comments 30% ■ During the past two years, Consti’s return on capital 25,2 % 25,0 % 24,9 % 24,3 % employed has exceeded 20% 22,6 % 22,0 % 21,9 % 21,7 % 25% ■ Q2 2022 Consti ROCE to
Slide 16: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 15 22 July 2022 Consti Plc / H1 Financial Report 2022
Slide 17: Economic sentiment and construction confidence in Finland fell below long-term averages
Economic sentiment and construction confidence in Finland fell below their long-term average levels in June 2022 Economic Sentiment and Construction Confidence / Finland (2007 – 6/2022) Comments 150 ■ June 2022 was the fourth consecutive month Economic Sentiment Indicator of decline in Economic sent
Slide 18: Renovation to outgrow new building in 2022-24
Renovation to outgrow new building in 2022-24, both residential and non- residential renovation projected to grow going forward Finnish new building and renovation market development 2008 – 2024 Comments EUR b Renovation volume (real) New building volume (real) ■ The Confederation of Finnish Constru
Slide 19: Building cost index rose by 9.4% y-o-y in June 2022
Building cost index rose by 9.4% y-o-y and 1.2% m-o-m in June 2022 Particularly the costs of materials continued to rise quickly. Consti has fared relatively well in the current inflationary market environment Building cost index by input heading Index figure Annual change (%) Annual change of the B
Slide 20: Outlook and guidance for 2022
Outlook and guidance for 2022 ■ Russia's military aggression, with its ramifications, creates uncertainty in Consti’s operating environment – Due to geopolitical instability, the prices of building materials and products important to the company have continued to rise – The war has a negative impact
Slide 21: Summary
Summary 1. Q2 net sales, order intake and order backlog grew year-on-year Q2 profitability in line with expectations despite inflationary market environment, financial and liquidity positions 2. remained at a good level Order backlog at a good level, thanks to good order intake in the second quarter
Slide 22: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 21 22 July 2022 Consti Plc / H1 Financial Report 2022
Slide 23: 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 24: Consti's Net Impact Profile
Consti’s Net Impact Profile Consti creates positive societal and environmental impacts by using scarce human capital and environmental resources Consti Group’s Net Impact Profile (analysis by Upright Project) Comments ■ Consti Group’s overall impact on the environment, health, society, and knowledge
Slide 25: 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 26: 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 27: Half-Year Financial Report Consti Plc H1
HALF-YEAR FINANCIAL REPORT 1-6/2022 CONSTI PLC H1 CONSTI PLC VALIMOTIE 16 FI-00380, HELSINKI BUSINESS ID 2203605-05 WWW.CONSTI.FI 26 26 April 2019 Consti Group Plc / Interim Report 1-3/2019