Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Q3 2019 Earnings Presentation
15 slides from Merko Ehitus As's earnings presentation, Nov 7, 2019
Slide 1: 9 months and Q3 2019 interim report
AS MERKO EHITUS 9 months and Q3 2019 interim report 7 November 2019 Quay no. 42 of Noblessner Quarter in Tallinn
Slide 2: Agenda
Agenda 1. Key Highlights 4. Stock Exchange Overview 2. Business Review 5. Market Outlook 3. Financial Position 6. Strategic Directions 2 School building at Medeinos str 14, Vilnius
Slide 3: Merko Group Key Highlights
Merko Group Key Highlights ❑ Q3 2019 revenue EUR 73m and 9M 2019 EUR 228m, down 24% compared to 9M 2018. Decline was expected: markets are cooling off, secured order book decreased -36% y-o-y (EUR 152m). ❑ More than half of revenue (53%) in 9 months earned outside Estonia. ❑ 2019 Q3 profit before ta
Slide 4: Merko Group Key Financial Highlights
Merko Group Key Financial Highlights EUR million 9M 2019 9M 2018 Variance* Q3 2019 Q3 2018 Variance* Revenue 227.6 298.8 -23.8% 73.4 115.1 -36.2% EBITDA 11.7 14.3 -18.1% 2.9 6.2 -52.4% EBITDA margin (%) 5.2 4.8 4.0 5.4 Operating profit 9.9 12.9 -23.0% 2.3 5.7 -59.2% Operating profit margin (%) 4.4 4
Slide 5: Business Review: Construction Service
BUSINESS REVIEW: Construction Service EUR million 9M 2019 9M 2018 Variance Q3 2019 Q3 2018 Variance Revenue 227.6 298.8 -23.8% 73.4 115.1 -36.2% Construction service 204.0 250.5 -18.6% 61.9 93.1 -33.5% Real estate development 23.6 48.3 -51.1% 11.5 22.0 -47.9% QUARTERLY CONSTRUCTION SERVICE REVENUE B
Slide 6: Business Review: Secured Order Book
BUSINESS REVIEW: Secured Order Book SECURED ORDER BOOK in million euros 388 396 400 344 279 288 292 300 256 270 304 247 243 247 239 229 190 217 200 172 152 100 42 0 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Secured
Slide 7: Business Review: Real Estate Development
BUSINESS REVIEW: Real Estate Development Group’s central business line ❑ 206 apartments, incl. 36 in joint venture, APARTMENTS SOLD AND APARTMENT REVENUE pcs / in million euros sold in 9M 2019 (9M 2018: 255, incl. 47 in 17,0 joint venture) ❑ Revenue from sale of own developed 10,9 apartments EUR 20m
Slide 8: Financial Position
Financial Position m EUR m EUR Balance of cash and cash equivalents 31.12.2018 40.0 Balance of cash and cash equivalents 31.12.2017 39.2 Operating activities CF -45.5 Operating activities CF +6.7 Investing activities CF -1.6 Investing activities CF +0.3 Financing activities CF +20.4 Financing activi
Slide 9: Stock Exchange Overview
Stock Exchange Overview P/B RATIO 1,31 times 10 1500 1,28 1,28 volume of transactions, thousand EUR 1,26 8 1200 Market Cap as at 30.09.2019: EUR 163m (30.09.2018: EUR 174m) share price in EUR 6 -6.3% during 12M 900 1,21 4 600 31.12.2015 31.12.2016 31.12.2017 31.12.2018 30.09.2019 2 300 P/E RATIO 0 0
Slide 10: Construction Market
Construction Market BALTIC STATES CONSTRUCTION MARKETS (WITH OWN FORCES) 9 MONTHS' CHANGE IN CONSTRUCTION PRICE INDEX ROLLING 12 MONTHS percentages in million euros 3 500 4,4 3 206 4,4 3 000 4 2 876 2 500 2 2,0 2 000 1 975 1 500 0 1 000 500 -2 2015 2016 2017 2018 2019 9M 2015 9M 2016 9M 2017 9M 2018
Slide 11: Housing Market
NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE Housing Market INDEX (4 QUARTER ROLLING AVERAGE) (2013=100) 160 150 140 130 120 110 100 90 2014 2015 2016 2017 2018 2019 Estonia new Estonia all Latvia new Latvia all Source: Eurostat Lithuania new Lithuania all ❑ In Estonia, the volume of pe
Slide 12: Strategic Directions
Strategic Directions Focus on apartment development and construction activity profitability Focus on current home markets Lahekalda apartment development in Tallinn Construction for clients: Development of residential real estate: ❑ Finalization of large objects and managing risks ❑ Selling the best
Slide 13: AS Merko Ehitus Group in Brief
AS Merko Ehitus Group in Brief AS Merko Ehitus is a construction and real estate development group operating in Estonia, Latvia, Lithuania and Norway BUSINESS SEGMENTS ESTONIA LATVIA LITHUANIA NORWAY • General construction • General construction • General construction • General construction • Civil
Slide 14: Contacts
Contacts Andres Trink Priit Roosimägi Chief Executive Officer Head of Group Finance Unit andres.trink@merko.ee priit.roosimagi@merko.ee AS Merko Ehitus Delta Plaza, 7th floor Pärnu road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 14
Slide 15: 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