Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — FY2018 Earnings Presentation
16 slides from Merko Ehitus As's earnings presentation, Feb 14, 2019
Slide 1: AS Merko Ehitus 12 months and Q4 2018 interim report
AS MERKO EHITUS 12 months and Q4 2018 interim report 14 February 2019 T1 Mall of Tallinn
Slide 2: Agenda
Agenda 1. Key Highlights 5. Stock Exchange Overview 2. Business Review 6. Market Outlook 3. Financial Position 7. Strategic Directions 4. Dividend Proposal 2 Pärnu mnt 22 office building in Tallinn
Slide 3: Merko Group Key Highlights
Merko Group Key Highlights Merko Ehitus 2018 sales revenue above EUR 400 million ❑ Q4 2018 revenue EUR 119m and in 12M EUR 418m, up 32% compared to 12M 2017 ❑ More than half of revenue (52%) in 12 months earned outside Estonia; greatest growth in Latvia, supported by large contracts in progress ❑ Ne
Slide 4: Merko Group Key Financial Highlights
Merko Group Key Financial Highlights EUR million 12M 2018 12M 2017 Variance* Q4 2018 Q4 2017 Variance* Revenue 418.0 317.6 +31.6% 119.2 102.8 +16.0% EBITDA 21.9 22.2 -1.5% 7.6 11.2 -32.6% EBITDA margin (%) 5.2 7.0 6.3 10.9 Operating profit 19.9 19.5 +1.7% 7.0 10.7 -35.2% Operating profit margin (%)
Slide 5: Business Review: Construction Service
BUSINESS REVIEW: Construction Service GROUP 12 MONTHS' REVENUE BY SEGMENTS GROUP QUARTERLY REVENUE BY SEGMENTS in million euros in million euros 182,2 164,9 135,2 108,4 50,1 46,5 42,8 70,9 74,0 35,7 22,6 24,3 Estonian Other home markets Real estate development Estonian Other home markets Real estate
Slide 6: Business Review: Secured Order Book
BUSINESS REVIEW: Secured Order Book SECURED ORDER BOOK in million euros 388 396 400 344 362 279 288 292 300 256 270 247 243 247 239 224 217 229 192 194 246 166 179 167 200 100 90 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Slide 7: Business Review: Real Estate Development
BUSINESS REVIEW: Real Estate Development Group’s central business line APARTMENTS SOLD AND APARTMENT REVENUE ❑ 482 apartments, incl. 131 in joint venture, pcs / in million euros sold in 12M 2018 (12M 2017: 392, incl. 17 in 17,0 joint venture) 13,3 ❑ Revenue from sale of own developed 12,0 227 apartm
Slide 8: Financial Position
Financial Position CHANGE IN CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS in million euros in million euros (0,3) 34,1 (33,0) (0,1) (1,3) 1,0 6,1 0,0 0,0 39,2 39,2 40,0 33,5 (0,0) 0,0 0,0 ((0,0)) 31.12.2017 Operating Investing Financing 31.12.2018 31.12.2016 Operating Investing Fina
Slide 9: Dividend Proposal
Dividend Proposal DIVIDEND PER SHARE in euros The Management Board proposes to pay a total amount of EUR 17.7m as dividends 1,00 1,00 (EUR 1.0 per share) in 2019 Based on Management Board proposal: 0,51 0,41 0,41 ➢ 2018 dividend rate 92% ➢ 2018 dividend yield 10.9% (using share price of 9.20 euros a
Slide 10: Stock Exchange Overview
Stock Exchange Overview P/B RATIO 1,31 Market Cap as at 31.12.2018: EUR 163m 1,26 1,28 times 1,21 15 (31.12.2017: EUR 156m) 600 1,03 +4.4% during 12M 12 volume of transactions, thousand EUR 9,20 9 share price in EUR 8,81 300 6 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.12.2018 3 P/E RATIO times
Slide 11: Construction Market
Construction Market BALTIC STATES CONSTRUCTION MARKETS (WITH OWN FORCES) 12 MONTHS CHANGE IN CONSTRUCTION PRICE INDEX ROLLING 12 MONTHS percentages in million euros 3 500 6 4,4 3 000 2 932 4 2 707 2 500 2,9 2 000 2 1,7 1 857 1 500 0 1 000 -2 500 12M 2014 12M 2015 12M 2016 12M 2017 12M 2018 2014 2015
Slide 12: Housing Market
NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE Housing Market INDEX (4 QUARTER ROLLING AVERAGE) (2013=100) 155 145 135 125 115 105 95 2014 2015 2016 2017 2018 Estonia new Estonia all Latvia new Latvia all Lithuania new Lithuania all Source: Eurostat ❑ In Estonia, the number of permits for
Slide 13: Strategic Directions
Strategic Directions Construction for clients: Development of residential real estate: ❑ Managing risks of large objects ❑ Selling the best apartments of their price ❑ Preferred partner for private customers range: to cover different segments. who value reliability and quality Product development, b
Slide 14: 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 15: 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 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