Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Q1 2019 Earnings Presentation
16 slides from Merko Ehitus As's earnings presentation, May 9, 2019
Slide 1: AS Merko Ehitus 3 months 2019 interim report
AS MERKO EHITUS 3 months 2019 interim report 9 May 2019 Z-Towers multifunctional centre in Riga
Slide 2: Agenda
Agenda 1. Key Highlights 5. Stock Exchange Overview 2. Business Review 6. Market Outlook 3. Financial Position 7. Strategic Directions 4. Dividends 2 Quadrum office building in Vilnius
Slide 3: Merko Group Key Highlights
Merko Group Key Highlights Merko Ehitus Q1 profit grew to EUR 2.8 million ❑ 3M 2019 revenue EUR 77m, -4% compared to 3M 2018 ❑ More than half of revenue (61%) in 3 months earned outside Estonia ❑ Net profit of 2019 3M at EUR 2.8m ❑ Secured order book at EUR 190m ❑ In Q1 2019 63 apartments sold ❑ The
Slide 4: Merko Group Key Financial Highlights
Merko Group Key Financial Highlights EUR million 3M 2019 3M 2018 Variance* 12M 2018 Revenue 76.8 80.3 -4.3% 418.0 EBITDA 3.5 1.8 +97.1% 21.9 EBITDA margin (%) 4.5 2.2 5.2 Operating profit 2.9 1.3 +126.9% 19.9 Operating profit margin (%) 3.8 1.6 4.8 Profit before tax 3.0 1.3 +138.0% 19.8 Net profit,
Slide 5: Business Review: Construction Service
BUSINESS REVIEW: Construction Service EUR million 3M 2019 3M 2018 Variance 12M 2018 Revenue 76.8 80.3 -4.3% 418.0 Construction service 70.3 71.3 -1.4% 347.1 Real estate development 6.5 9.0 -28.1% 70.9 ❑ The decline in the group’s revenue was due to the decreasing trend in construction orders on the
Slide 6: Business Review: Secured Order Book
BUSINESS REVIEW: Secured Order Book SECURED ORDER BOOK in million euros 388 396 400 344 358 279 288 292 300 256 270 247 243 247 239 217 229 257 194 190 200 167 100 32 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1
Slide 7: Business Review: Real Estate Development
BUSINESS REVIEW: Real Estate Development Group’s central business line APARTMENTS SOLD AND APARTMENT REVENUE pcs / in million euros ❑ 63 apartments, incl. 29 in joint venture, 17,0 sold in 3M 2019 (3M 2018: 51, incl. 25 in joint venture) 12,0 ❑ Revenue from sale of own developed apartments EUR 4.6m
Slide 8: Financial Position
Financial Position CHANGE IN CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS in million euros in million euros ( 3,7) ( 0,8) ( 2,6) (3,0) 0,1 0,1 (8,7) 40,0 39,2 0,0 0,0 0,0 ( 0,0) 33,0 0,0 (0,0) 0,0 27,6 31.12.2018 Operating Investing Financing Currency 31.03.2019 31.12.2017 Operating
Slide 9: Dividends
Dividends DIVIDEND PER SHARE The annual general meeting of in euros shareholders on 8 May 2019 approved the proposal to pay the shareholders a 1,00 1,00 total amount of EUR 17.7m as dividends (EUR 1.0 per share) in 2019 0,51 ➢ 2018 dividend rate 92% 0,41 0,41 ➢ 2018 dividend yield 10.9% (using share
Slide 10: Stock Exchange Overview
Stock Exchange Overview Market Cap as at 31.03.2019: EUR 177m (31.03.2018: EUR 204m) P/B RATIO times -13.0% during 12M 1800 1,39 10 1500 1,31 volume of transactions, thousand EUR 1,28 8 1,26 1200 share price in EUR 1,21 6 900 4 600 31.12.2015 31.12.2016 31.12.2017 31.12.2018 31.03.2019 2 300 P/E RAT
Slide 11: Construction Market
Construction Market BALTIC STATES CONSTRUCTION MARKETS (WITH OWN FORCES) ANNUAL CHANGE IN CONSTRUCTION ROLLING 12 MONTHS PRICE INDEX IN FIRST QUARTER in million euros percentages 5,0 3 500 3 000 4,1 3 000 4 2 826 2 500 2 2,0 2 000 1 969 1 500 0 1 000 500 -2 2014 2015 2016 2017 2018 Q1 2015 Q1 2016 Q
Slide 12: Housing Market
NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE INDEX (4 QUARTER ROLLING AVERAGE) (2013=100) Housing Market 160 150 140 130 120 110 100 90 2014 2015 2016 2017 2018 Estonia new Estonia all Latvia new Latvia all Lithuania new Lithuania all Source: Eurostat ❑ In Estonia, the number of permits
Slide 13: Strategic Directions
Strategic Directions Focus on apartment development and construction activity profitability Focus on current home markets Construction for clients: Development of residential real estate: ❑ Finalization of large objects and managing risks ❑ Selling the best apartments of their price ❑ Preferred part
Slide 14: AS Merko Ehitus Group in Brief
AS Merko Ehitus Group in Brief AS Merko Ehitus is a construction and real estate development group operating in Estonia, Latvia, Lithuania and Norway BUSINESS SEGMENTS ESTONIA LATVIA LITHUANIA NORWAY • General construction • General construction • General construction • General construction • Civil
Slide 15: Contacts
Contacts Andres Trink Priit Roosimägi Chief Executive Officer Head of Group Finance Unit andres.trink@merko.ee priit.roosimagi@merko.ee AS Merko Ehitus Delta Plaza, 7th floor Pärnu road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 15
Slide 16: 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