Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Q3 2016 Earnings Presentation
16 slides from Merko Ehitus As's earnings presentation, Nov 3, 2016
Slide 1: AS Merko Ehitus 9 months and Q3 2016 interim report
AS MERKO EHITUS 9 months and Q3 2016 interim report 3 November 2016 Kindergarten and school buildings complex in Pinki
Slide 2: Agenda
Agenda Kivimäe 32 apartment development 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 68m in Q3 on par and EUR 173m in 9m lower than in 2015. Both 9M and Q3 profitability down and operating margin decreased to 3.5% and 4.4%, respectively. Expected growth in revenues from general construction projects in Estonian construction service segmen
Slide 4: Merko group key financial highlights
Merko group key financial highlights EUR million 9M 2016 9M 2015 Variance Q3 2016 Q3 2015 Variance 2015 Revenue 173.4 184.6 -6.1% 67.8 68.4 -0.8% 251.0 EBITDA 8.4 9.9 -15.3% 3.9 4.4 -12.2% 15.5 EBITDA margin (%) 4.9 5.4 -9.9% 5.7 6.4 -11.5% 15.5 Operating profit 6.1 7.6 -20.4% 3.0 3.7 -18.5% 12.5 Op
Slide 5: Business review 9M and Q3 2016
Business review 9M and Q3 2016 Q3 2016 revenue (EUR 67.8m) on par with last year’s results (EUR 68.4m). 9M 2016 revenue (EUR 173.4m) below managements expectations mainly because revenue has been held back by slower than planned start of major construction projects in Estonia due to circumstances
Slide 6: Real estate development - apartments
Real estate development - apartments 9M projects launched as planned. Closely monitoring increased supply in Tallinn and Vilnius, to be prepared for longer sales periods. 268 apartments sold in 9M (9M 2015: 248; 12M 2015: 403) for EUR 31.7m (9M 2015: EUR 42.6m; 12M 2015: EUR 61.4m). Construction
Slide 7: Secured Order Book
Secured Order Book Secured order book at EUR 256m. 32% higher compared to same period last year. Total new contracts signed 9M 2016 EUR 140m (9M 2015: 152m). Q3 signed preliminary sales agreement to sell upon completion “ibis” hotel complex to be built on Merko’s land plot in Vilnius, Lithua
Slide 8: Financial position
Financial position Group’s liquidity position maintained, cash at EUR 20.8m. The net debt amounted to EUR 11m and debt ratio at 15% (30.09.2015: EUR 10m and 13%). Strong liquidity buffer as group is still self- funding a large proportion of its own development projects and has not used any overd
Slide 9: Dividends
Dividends EUR 9m dividends (EUR 0.51 per share) paid in Q2 2016. 2016 dividend rate at 90% and gives a yield of 6%. Dividend rate of 90% was over target (50- 70%), as construction orders are limited, prices are down and the supply for apartments is increasing – improving the profitability is c
Slide 10: Stock Exchange overview
Stock Exchange overview Market Cap EUR 146.9m (31.12.2015: EUR 150.1m) -2.1% during 9M No of % of total % of total Shareholders Variance shares 30.09.2016 30.06.2016 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 less active and has not reached the expected activity level. Increased supply
Slide 13: Future perspectives 2016+
Future perspectives 2016+ Leading regional construction company. Preferred general contractor to private clients and large projects. To distinguish with the best and most motivated specialist and construction managers, to be a reliable partner and hold a high standard of quality. We believe that
Slide 14: Merko Group in brief
Merko Group in brief Wide scope of Home markets: Estonia, Latvia and Lithuania Share quoted on construction services: Nasdaq OMX • General construction Tallinn since 1997 • Engineering construction • Road construction • Real estate projects Competitive advantages: • Broad range of The largest listed
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