Slide 1: AS Merko Ehitus 12 months and Q4 2016 interim report
AS MERKO EHITUS 12 months and Q4 2016 interim report 9 February 2017 Tallink Tennis Centre in Tallinn
Slide 2: Agenda
Agenda Gaiļezers residential development project in Riga 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 2
Slide 3: Merko group key highlights
Merko group key highlights Revenue EUR 79m in Q4 higher and EUR 252m in 12M on par with 2015. Strong apartment sales in Q4. As expected growth in revenues from general construction projects in Estonian construction service segment. Both Q4 and 12M profitability down. Not satisfied with the p
Slide 4: Merko group key financial highlights
Merko group key financial highlights EUR million 12M 2016 12M 2015 Variance Q4 2016 Q4 2015 Variance Revenue 252.0 251.0 +0.4% 78.6 66.4 +18.3% EBITDA 11.2 15.5 -27.7% 2.8 5.6 -49.8% EBITDA margin (%) 4.4 15.5 -28.0% 3.6 5.7 -57.5% Operating profit 7.7 12.5 -38.2% 1.6 4.9 -66.2% Operating profit mar
Slide 5: Business review 12M and Q4 2016
Business review 12M and Q4 2016 The growth in residential development and private sector orders allowed us to maintain revenue on last year's level, but we are not satisfied with the profitability on the construction sector. The construction services revenue has been held back by slower than pla
Slide 6: Real estate development - apartments
Real estate development - apartments 12M projects launch not as fast as expected. Closely monitoring increased supply in Tallinn and Vilnius, to be prepared for longer sales periods. 493 (incl. 21 in joint ventures) apartments sold in 12M (12M 2015: 403) for EUR 56.6m (12M 2015: EUR 61.4m). Cons
Slide 7: Secured Order Book
Secured Order Book Secured order book at EUR 270m (31.12.2015: EUR 247m). Level of new contracts in Latvia and Lithuania perceivably better than a year ago. 9% higher compared to same period last year. Total new contracts signed 12M 2016 EUR 202m (12M 2015: 247m). Additional two large contra
Slide 8: Financial position
Financial position Despite high level investments in Q4 the liquidity position maintained strong, cash at EUR 33.5m (31.12.2015: EUR 39,9m). The net debt amounted to EUR 13m and debt ratio at 19% (31.12.2015: EUR -9m and 15%). Group is self-funding a large proportion of its own development proje
Slide 9: Dividend proposal
Dividend proposal The Management Board proposes to pay the total amount of EUR 7.3m as dividends (EUR 0.41 per share) in 2017. 2016 dividend rate of 119% and yield* 4.5%. To pay in excess of the financial target of 50-70%, is reflecting following factors: Group’s 2016 return on equity level;
Slide 10: Stock Exchange overview
Stock Exchange overview Market Cap EUR 160.2m (31.12.2015: EUR 150.1m) +6.7% during 12M No of % of total % of total Shareholders Variance shares 31.12.2016 30.09.2016 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
Slide 11: Baltic's construction market
Baltic’s construction market Source: Local national statistical offices Source: Local national statistical offices Volumes of construction orders has continued to be at a low, for both infrastructure but also commercial and public buildings. At the same time the housing construction market is set
Slide 12: Housing market in Baltics
Housing market in Baltics Source: European Commission Directorate-General for Economic and Financial Affairs Source: Eurostat Apartment market has continued to stabilise in Tallinn and Vilnius. Riga’s apartment market still less active, but with gradual increases in the activity level. Increased
Slide 13: Future perspectives for 2017+
Future perspectives for 2017+ Estonian construction services To maintain the lead position in general contracting. To seize any opportunity to boost profit by enhancing internal efficiency. Other home markets Target revenue share of 50%, by growing businesses in Latvia, Lithuania and Norway.
Slide 14: Merko Group in brief
Merko Group in brief Wide scope of Home markets: Estonia, Latvia, Lithuania and Share quoted on construction services: Norway Nasdaq OMX • General construction Tallinn since 1997 • Engineering construction • Road construction • Real estate projects Competitive advantages: • Broad range of The larges
Slide 15: 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 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