Slide 1: Q3 2024
Q3 2024 Tomas Carlsson, CEO Susanne Lithander, CFO October 25, 2024 © NCC | Q3 2024 Dylta Quarry, Örebro, Sweden
Slide 2: Orders received and order backlog, SEK M
2024 Q3 11,607 Q3 12,280 Q4 16,288 Q1 2023 14,691 Q2 Orders received, SEK M 9,681 Q3 16,159 Q4 13,353 Q1 2024 14,664 Q2 13,264 Q3 59,047 Q3 54,995 Q4 58,910 Q1 2023 59,359 Q2 Order backlog, SEK M 54,594 Q3 53,422 Q4 56,270 Q1 2024 54,956 Q2 53,498 Q3
Slide 3: Net sales and operating profit, SEK M
Q3 2024 Net sales, SEK M Operating profit, SEK M 152 -100 665 510 544 503 789 358 623 14,277 14,068 16,018 12,464 14,854 14,022 15,592 15,448 11,561 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2023 2024
Slide 4: Tomas Carlsson
Tomas Carlsson © NCC | Q3 2024
Slide 5: A stable third quarter
A stable third quarter Earnings increased Increased orders Continued positive compared to last year received – stable market outlook (adjusted for capital gains 2023) order backlog Book-to-bill 1.0 Eidsvoll, Stange, Norway Continued Earnings up for Property market still improvements for Building Nor
Slide 6: Good orders received
Good orders received Book-to-bill of 1.0. Disciplined approach to tenders SEK M Book-to-bill,R12 18,000 1.50 16,000 14,000 12,000 1.0 1.00 10,000 8,000 6,000 0.50 4,000 16,635 12,763 11,607 12,280 16,288 14,691 16,159 13,353 14,664 13,264 9,681 2,000 0 0.00 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024
Slide 7: A stable order backlog
A stable order backlog SEK M 60,000 50,000 40,000 30,000 20,000 10,000 62,510 60,960 59,047 54,995 58,910 59,359 54,594 53,422 56,270 54,956 53,498 0 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Pumpstation, Malmi Church,Kristianstad, Helsinki, Finland 7 25 October 2024 © NCC | Q3 2024 Sweden
Slide 8: Production facility in Örnsköldsvik, Sweden, SEK 560 M
Production facility in Hospital project in Örnsköldsvik, Sweden, Västerås, Sweden, SEK 560 M SEK 2.5 billion Refurbishment projects in Denmark, SEK 685 M
Slide 9: Net sales on same level in quarter and YTD
Ngt stenmaterial Net sales on same level in quarter and YTD SEK M 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 10,111 14,001 14,068 16,018 12,464 14,854 14,022 15,592 11,561 15,448 14,277 2,000 0 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 9 25 October 2024 © NCC | Q3 2024
Slide 10: EBIT up 8% in the quarter
EBIT up 8% in the quarter Excluding capital gains from divestment in 2023 SEK M 1,000 800 175 600 400 200 474 510 544 152 503 614 358 623 665 0 -170 -100 -200 -400 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 10 25 October 2024 © NCC | Q3 2024
Slide 11: Positive trajectory continues
EBIT (excluding capital gains from divestment) ’ positive trajectory continues EBIT, Q3 SEK M Industry: EBIT 20% better than 2023 PD: No divestment but higher rental income 11 25 October 2024 © NCC | Q3 2024
Slide 12: Financial targets
Financial targets Earnings per share Net debt Dividend policy ≥16.00 < 2.5 ≈ 60% SEK x EBITDA of profit after tax Q3 2024, R12 Q3 2024, R12 2023 12.72 1.79 8.00 SEK x EBITDA SEK 2023 16.11 SEK 50% of profit after tax 12 25 October 2024 © NCC | Q3 2024
Slide 13: Environment & climate targets
Environment & climate targets New CO2-target next year Scope 1 & 2 Scope 3 -60% -50% 2030 2030 30 June, 2024 30 June, 2024 Ready-made concrete -22% -65% Rebar steel -52% Asphalt -24% 1.8 ton CO₂e per SEK M net sales kg CO₂e per bought volumes 13 25 October 2024 © NCC | Q3 2024
Slide 14: Health & Safety targets
Health & Safety targets LTIF4 ≤2.00 2026 Q3 2024 3.8 14 25 October 2024 © NCC | Q3 2024
Slide 15: Continued positive market outlook
Continued positive market outlook • Underlying demand still strong in infrastructure, industry and public market segments • Property market still slow but positive signs from lower interest rates 15 25 October 2024 © NCC | Q3 2024 Stovner Tanum,Bad, Oslo,station. Rescue NorwaySweden
Slide 16: Susanne Lithander
Susanne Lithander © NCC | Q3 2024
Slide 17: Business update Q3: Contracting units
CC’ Some Building Nordics milestone Contracting units Business update Q3 • NCC Infrastructure • NCC Building Nordics • NCC Building Sweden • NCC Green Industry Transformation 17 25 October 2024 © NCC | Q3 2024 The National Hillerød Museum, Hospital, Helsinki, Finland Denmark
Slide 18: Strong orders received in Q3
Strong orders received in Q3 Particularly Infrastructure and Building Sweden Orders received Order backlog and Net sales SEK M SEK M 5,000 20,000 4,500 4,000 15,000 3,500 3,000 2,500 10,000 2,000 1,500 5,000 1,000 500 2,655 4,725 2,461 2,075 2,510 4,579 17,639 17,696 16,637 13,803 16,574 14,292 0 0
Slide 19: Stable net sales and earnings
Stable net sales and earnings Improved margins in Building Nordics SEK M Infrastructure % SEK M Building Nordics % SEK M Building Sweden % 6,000 4 6,000 4 6,000 4 5,000 5,000 5,000 3 3 3 4,000 4,000 4,000 3,000 2 3,000 2 3,000 2 2,000 2,000 2,000 1 1 1 1,000 1,000 1,000 0 0 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2
Slide 20: NCC Green Industry Transformation
NCC Green Industry Transformation Business update Q3 • Ongoing discussions • Strategic collaboration agreement with LKAB – planning work ongoing 20 25 October 2024 © NCC | Q3 2024
Slide 21: NCC Industry
NCC Industry Business update Q3 • Continued strong delivery – stable orders received, net sales and earnings up • Both asphalt and stone contributed • Continued focus on diligent pricing and cost 21 25 October 2024 © NCC | Q3 2024
Slide 22: Stable volumes
Stable volumes Asphalt sold, Stone materials sold, thousands of tons thousands of tons 2,000 9,000 1,800 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 3,000 600 400 2,000 199 188 173 1,532 1,737 1,334 1,531 1,716 1,222 1,748 1,792 6,347 7,970 7,132 6,993 5,829 7,004 6,647 6,130 4,657 7,1
Slide 23: Improved earnings and ROCE
Improved earnings and ROCE SEK M % SEK M % 400 6% 6 10,000 12% 12% 11.3% 300 9,000 4 10% 200 8,000 2 100 7,000 50 8% 240 23 281 281 99 368 338 0 0 6,000 -305 -261 -313 6.9% -100 5,000 6% -2 -200 4,000 4,820 4,580 -4 4% -300 3,000 -400 -6 2,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2% 2022 2023 2024 1,000
Slide 24: NCC Property Development
NCC Property Development Portfolio update Q3 • No transactions in the quarter • 10 projects in the portfolio, all offices • Low letting in the quarter, 3 contracts 24 25 October 2024 © NCC | Q3 2024 W eWLand, Helsinki, e Land, Finland Helsinki, Finland
Slide 25: Letting ratio 72% - 80% in completed projects
Letting ratio 72% - 80% in completed projects Completion ratio all projects 83% Lettable space, sqm 300,000 100% 90% 250,000 83% 80% 72% 70% 200,000 60% 150,000 50% 40% 100,000 30% 20% 50,000 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 Previously let area, sqm Sold, no letting Let durin
Slide 26: SEK 10 bn in operating capital employed
SEK 10 bn in operating capital employed EBIT SEK M SEK M % 300 12% 12% 268 256 10,000 250 10,157 10% 8,000 9,225 200 183 8% 150 6,000 5.7% 6% 100 87 4,000 4% 50 42 37 29 30 2,000 2.1% 2% 1 0 -18 0 0% -50 -37 30/9 2023 30/9 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 Operating Capital Employ
Slide 27: 10 projects in the portfolio
10 projects in the portfolio 7 completed – one project to profit Q4, MIMO office in Gothenburg Expected time of profit recognition for sold projects 2024 2025 2026 2027 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Arendal Albatross MIMO Park Central Ongoing unsold projects Completed unsold projects • F
Slide 28: Other & eliminations
Other & eliminations R12, Q3 Oct-Sep Jan-Dec SEK M 2024 2023 2023/2024 2023 Increased costs for NCC Group common functions, subsidiaries and business area Group common functions NCC Green Industry for quarter and YTD Transformation -48 -14 -415 -315 Cost for IT development represents ≈30% and Elimin
Slide 29: Earnings
Earnings R12, Q3 Oct-Sep Jan-Dec SEK M 2024 2023 2023/2024 2023 Earnings in segments (all BAs) 676 747 1,868 1,982 Other & Eliminations -11 42 -322 -179 EBIT 665 789 1,546 1,802 Financial net -53 -18 -108 1 EBT 612 771 1,439 1,803 Tax -140 -149 -196 -230 Profit for the period 472 621 1,243 1,573 Ear
Slide 30: Lower cash flow
Lower cash flow Increased working capital due to calendar effect R12, Q3 Oct-Sep Jan-Dec SEK M SEK M 2024 2023 2023/2024 2023 1,500 OPERATING ACTIVITIES From operating activities 1,000 before changes in working capital 785 586 2,238 2,122 500 From property projects -246 -437 -733 -1,684 0 Other chan
Slide 31: Corporate net debt higher than last year
Corporate net debt higher than last year SEK M 0 -2,787 -3,891 Net debt* / EBITDA -1,000 Target < 2.5x -2,000 Sep 30, 2024, R12 1.79 -3,000 *Corporate net debt excluding pension liabilities and leasing liabilities -4,000 -5,000 -6,000 Q3 2023 Q3 2024 31 25 October 2024 © NCC | Q3 2024
Slide 32: Tomas Carlsson
Tomas Carlsson © NCC | Q3 2024
Slide 33: In summary
In summary • A stable quarter for NCC • Earnings up 8%, adjusted for capital gains from divestment • Increased orders received • Industry main driver of improvements – other business areas stable • Property transaction market remains slow but positive signs from lower interest rates • Positive marke
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Slide 35: Contact information
Contact information Tomas Carlsson, CEO tomas.carlsson@ncc.se Susanne Lithander, CFO susanne.lithander@ncc.se Tel +46 730 37 08 74 Andreas Koch, Head of Communications & IR andreas.koch@ncc.se Tel +46 705 09 77 61 ncc.com/Investor-relations For definitions and details, please see the quarterly repor
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