Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — Investor Presentation (June 2014)
20 slides from Merko Ehitus As's investor presentation, Jun 5, 2014
Slide 1: Merko Ehitus
MERKO EHITUS Construction, Engineering & Real Estate 05 June 2014
Slide 2: Agenda
Agenda 1. About the Group 2. Market Overview 3. Business Activities 4. 2013 Results 5. Market Outlook and 2014 Focus 1. About the Group 3. 2013 and 3M 2014 Results 2. Business Activities 4. Market Outlook and 2014 Focus 2
Slide 3: Group In Brief
Group In Brief Construction services: Operates in Estonia (81% of revenue), • General construction Latvia (17%), Lithuania (2%) • Engineering construction • Road construction Own developed real estate projects The largest listed construction company in the Baltics 31.12.2013: Net Profit 2013: Share
Slide 4: Value Offering
Value Offering Integrated project management and general contracting service across the full life cycle of construction projects. From idea to planning to engineering design to site works to warranty: full responsibility to deliver the project. We mainly contract subcontractors, but also use own
Slide 5: Business Activities
merko BUSINESS ACTIVITIES
Slide 6: General Construction
General Construction Construction of buildings and facilities 33% of 2013 revenues (+40% y-o-y) Decrease since 2009 (2009: 43% of total revenues) due to increasing share of infra projects in recent years Markets: Tornimäe residential building, 2007 6
Slide 7: Civil Engineering
Civil Engineering Infrastructure and engineering projects. Including water, environmental and electrical projects. 36% of 2013 revenues ( -17% y-o-y) EU funding is key Markets: Puurmani traffic knot, 2008 7
Slide 8: Road Construction
Road Construction Road construction and long-term road maintenance contracts 19% of 2013 revenues (+10% y-o-y) EU funding key Since 2010 large scale projects Market: Reconstruction of Ülemiste traffic junction, 2013 8
Slide 9: Real Estate Development
Real Estate Development Own development of residential apartments Merko has become the flagship of Baltics residential development 12% of 2013 revenues (+14% y-o-y) 2009-2011 downturn years Markets: Tartu mnt apartment buildings, 2012 9
Slide 10: 2014 Largest Projects In Progress Estonia
2014 Largest Projects In Progress Estonia Own development Kentmanni apartment building Hilton Hotel (2015) - €31.2 mln (2014) - €28 mln Design and renovation of the infrastructure of Tondiraba Ice Arena (2015) – 21.7 mln Tallinn tram line no. 4 (2015) - €26 mln, consortium 10 10
Slide 11: 2014 Largest Projects In Progress Latvia
2014 Largest Projects In Progress Latvia Polipaks manufacturing and logistics center Liepaja Concert Hall (2015) - €28.3 mln (2015) - €17.8 mln Jurmala apartment buildings (2015) - €13.7 mln Riga State Technical School (2015) - €4.8 mln 11 11
Slide 12: 2014 Largest Projects In Progress Lithuania
2014 Largest Projects In Progress Lithuania Own development Mokslininku II stage, 54 apartments (2014) Vilnius and Kaunas train terminals (2014) - €3.6mln Civil construction works of Nordbalt HVDC converter station in Klaipeda district (2015) - €6.0mln Vilnius Balsiai Secondary School – PPP (2011
Slide 13: 2013 and 3M 2014 Results
merko 2013 AND 3M 2014 RESULTS
Slide 14: 2013 and 3M 2014: Key Highlights
2013 and 3M 2014: Key Highlights EUR millions 2013 2012 Variance 3M 3M Variance 2014 2013 Revenue 262.7 249.1 +5.5% 48.9 47.9 +2.1% Gross profit 22.7 17.9 +26.8% 3.9 4.2 -7.1% Gross profit margin, % 8.6 7.2 +20.3% 8.1 8.8 -9.0% EBITDA 15.1 11.4 +32.4% 1.9 2.9 -35.6% Net profit, attributable to equit
Slide 15: Stock Exchange overview
Stock Exchange overview No of % of total % of total Shareholders Variance shares 31.03.2014 31.12.2013 AS Riverito 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Skandinaviska Enskilda Banken S.A. 481 379 2,72% 2,72% - Skandinaviska Enskilda Banken AB, Swedish clien
Slide 16: Market Outlook and 2014 Focus
MARKET OUTLOOK AND 2014 FOCUS 16
Slide 17: Market outlook and 2014 focus
Market outlook and 2014 focus Construction market A decrease of 10-15% in construction volumes is expected in the Baltic States, primarily in Estonia, during 2014. Continuing decrease of public sector procurements due to the end of EU funding period 2007-2013 and uncertainties around distributio
Slide 18: Thank you!
merko Thank you! 18
Slide 19: 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 mnt. 141, 11314 Tallinn, Estonia Phone: +372 6501 250 www.merko.ee 19
Slide 20: 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