Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — Q3 2015 Earnings Presentation
17 slides from Merko Ehitus As's earnings presentation, November 2015
Slide 1: Merko Ehitus Group 9 months and Q3 2015 interim report
MERKO EHITUS GROUP 9 months and Q3 2015 interim report November 2015
Slide 2: Agenda
Agenda 1. Key highlights 2. Business review 3. Financial position 4. Market outlook Skanste residential development area in Riga 2
Slide 3: Merko group key highlights 9M 2015
Merko group key highlights 9M 2015 Q3 results at comparable level to prior year. Reflect the market developments. Continuing construction services revenue growth outside Estonia, approximately 32% (9M 2014: 26%) of total revenues. Secured order book up 16% y-o-y. Low level new contracts in Lat
Slide 4: Merko group key financial highlights
Merko group key financial highlights 9M 9M Q3 Q3 EUR millions Variance Variance 2014 2015 2014 2015 2014 Revenue 184.6 182.2 +1.3% 68.4 68.5 -0.3% 252.3 Gross profit 15.3 16.3 -6.1% 6.3 6.2 +2.4% 24.7 Gross profit margin (%) 8.3 8.9 -7.3% 9.3 9.0 +2.7% 9.8 EBITDA 9.9 10.2 -2.5% 4.4 4.1 +7.8% 16.4 Pr
Slide 5: Revenues and gross profit 9M 2015
Revenues and gross profit 9M 2015 REVENUES Strong performance from real estate development (revenues up by 72.7% y-o-y), Latvian and Lithuanian construction service segment (up by 25.7%) . Revenues from our first electrical engineering project in Latvia and pile works contract in Finland. Decr
Slide 6: Revenues and gross profit Q3 2015
Revenues and gross profit Q3 2015 REVENUES Real estate development segment thriving as quarterly revenues are up by 127.4% y-o-y. Mainly related to sales of apartments in more exclusive developments and handing over more units. Latvian and Lithuanian construction service segment revenues increas
Slide 7: Real estate development - apartments
Real estate development - apartments Q3 projects launched as planned. Closely monitoring increased supply in Tallinn and Vilnius, to be prepared for longer sales periods. 248 apartments sold in 9M (9M 2014: 235 Revenue growth mainly attributable to apartments sold in a more exclusive development p
Slide 8: Secured Order Book
Secured Order Book Secured order book 16% higher. Q3 2015 new contracts EUR 31m. Additional 3 large contracts for EUR 28m signed at the beginning of Q4. Majority new contracts from Estonia, not pleased with the level secured in Latvia. 9M 2015 private sector orders account for the majority p
Slide 9: Financial position
Financial position Group’s liquidity position impacted by increased level of investments in land EUR 11.7m, release of option and dividend payment in Q2 2015. The net debt amounted to EUR 10.0m and debt ratio at modest level of 13.2% (31.12.2014: EUR -13.9m and 15.1%). Strong liquidity buffer as
Slide 10: Dividend and share capital reduction
Dividend and share capital reduction Dividend pay-out ratio according to long-term financial objectives: 50-70% of the annual profit. EUR 7.3 million dividends (EUR 0.41 per share) paid in Q2 2015. The registration of share capital reduction in the amount of EUR 4.1 million (EUR 0.23 per share
Slide 11: Stock Exchange overview
Stock Exchange overview Market Cap EUR 137.0m (30.09.2014: EUR 126.6m) +8.3% y-o-y No of % of total % of total Shareholders Variance shares 30.09.2015 30.06.2015 AS Riverito (management) 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Firebird Republics Fund Ltd 395
Slide 12: Baltic construction market
Baltic construction market Source: Local national statistical offices Source: European Comission Directorate-General for Economic and Financial Affairs Marginal increase in construction prices, main impact due to labour force costs. No significant pressure on input prices expected as weak outlook
Slide 13: Housing market in Baltics
Housing market in Baltics Source: European Comission Directorate-General for Economic and Financial Affairs Source: Eurostat Demand remains for good quality and optimal price level residential premises in all capital cities. Interest rates of mortgages have remained on a low level, consumers’ ac
Slide 14: Outlook
Outlook Long term outlook: the leading Baltic construction and development business Post 2015-2016 EU funds will support the increase in civil and public sector building orders. 2016 still challenging due to timing of EU projects’ tendering. Strengthen our position as leading apartment develop
Slide 15: Group in brief
Group in brief Estonian construction services Wide scope of (56% of revenue), Latvian and Share quoted on construction services: Lithuanian construction Nasdaq OMX services (26%), Real Estate • General construction Development (18%) Tallinn since 1997 • Engineering construction • Road construction •
Slide 16: 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 group.merko.ee 16
Slide 17: 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