Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Shareholder Meeting (May 2018)
19 slides from Merko Ehitus As's shareholder meeting presentation, May 9, 2018
Slide 1: AS Merko Ehitus Annual General Meeting of Shareholders
AS MERKO EHITUS Annual General Meeting of Shareholders Nordic Hotel Forum, Tallinn 9 May 2018
Slide 2: Agenda
Agenda 1. Approval of the annual report of the year 2017 and overview of the economic results and outlook 2. Decision on distribution of profits 3. Appointment of auditor for financial years of 2018-2020 2 Suur-Patarei 20 (2019)
Slide 3: 1. Approval of the annual report of the year 2017 and overview of the economic results and outlook
Paepargi residential area 1. Approval of the annual report of the year 2017 and overview of the economic results and outlook 3
Slide 4: Group’s Markets and Business Areas 2017
Group’s Markets and Business Areas 2017 Regional general contracting and real estate developing company Norway • Renovation works and building Estonia construction • Buildings, facilities, electrical and road construction, concrete works • Real estate development • Among Top 3 in its business areas
Slide 5: 2017 revenue increased in all home markets
2017 revenue increased in all home markets From revenue, 60% from Estonia and 40% from other markets DISTRIBUTION OF GROUP REVENUE BY GEOGRAPHICAL LOCATION 318 in million euros 263 252 252 251 212 191 171 173 155 69 80 65 44 45 28 25 35 6 13 3 5 4 12 2013 2014 2015 2016 2017 Total Estonia Latvia Lit
Slide 6: 2017 profitability improved...
2017 profitability improved... ...but risk/benefit ratio unbalanced in building for clients NET PROFIT in million euros 2017 14,7 ❑ All markets in profit, largest share from Estonia 2016 6,1 ❑ Compared to 2016, group’s profit increased 2015 10,0 in all markets 2014 12,4 ❑ One-off sales supported inc
Slide 7: 2017 revenue and profit in 10 years’ context
2017 revenue and profit in 10 years’ context GROUP REVENUE AND NET PROFIT in million euros 352 318 34,8 297 300 249 263 252 251 252 30 203 219 19,1 172 200 20 14,7 12,4 10,4 10,0 100 7,4 7,6 6,1 10 1,2 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -100 -10 - 14,1 -200 -20 Net profit (ri
Slide 8: EUR 335m of new construction contracts
EUR 335m of new construction contracts Secured order book EUR 344m 2017 LARGEST CONTRACTS SECURED ORDER BOOK in million euros in million euros Multifunctional centre Akropole 100 344 in Riga 335 Construction contract 270 247 214 Multifunctional Z-Towers 36 179 complex completion works in Riga Constr
Slide 9: Examples of projects completed in 2017
Examples of projects completed in 2017 Telecom office building (Tallinn) Narbuto 5 office building (Vilnius) 9 Barracks of Tapa military base (Estonia) Juuliku road junction at Tallinn roundabout
Slide 10: In 2018, there are many large projects ongoing
In 2018, there are many large projects ongoing Akropole multifunctional centre in Riga (100m, 2019) “Öpiku maja” second office building (16m, 2018) 10 T1 shopping centre (70m, 2018) Extension of Alfa shopping centre (34m, 2019) Z-Towers multifunctional centre (44m, 2018)
Slide 11: Apartment development – group’s central business line
Apartment development – group’s central business line In 2017, nearly 500 new apartments launched APARTMENTS LAUNCHED BY GEOGRAPHICAL LOCATION NUMBER OF APARTMENTS SOLD AND LAUNCHED pcs pcs 574 574 496 98 496 120 409 344 369 344 96 86 493 395 403 392 424 263 258 280 12M 2013 12M 2014 12M 2015 12M 20
Slide 12: Residential development projects in construction
Residential development projects in construction Noblessner Home Port Basteja Life Rinktines Urban stage 1 Tallinn: 220 apartments (2018) Vilnius: 77 apartments (2019) Vilnius: 1120 apartments (2018) Suur-Patarei 20, Tallinn: 31 apartments (2019) Tähepargi stage 1, Tartu: 26 apartments (2019) 12
Slide 13: How do we see the construction market?
How do we see the construction market? Construction market to remain rather active. Last year’s trends to continue. Reallocation of risks in construction value chain. ❑ Economic growth forecast ca 3-4% CONSTRUCTION MARKET VOLUMES (WITH OWN FORCES) IN THE BALTIC STATES in million euros ❑ Stabilisatio
Slide 14: How do we see the residential real estate market?
How do we see the residential real estate market? Towards stabilisation NEW AND ALL (dotted line) DWELLINGS HOUSE PRICE INDEX ❑ Overall sentiment of real estate (2013=100) market is good 140 ❑ Salaries and prices of apartments grown at similar pace 120 ❑ In Tallinn and Vilnius, stabilisation of dema
Slide 15: Merko Ehitus 2018 Strategic Directions
Merko Ehitus 2018 Strategic Directions Focus on construction activity profitability and apartment development Construction for client: ❑ Managing risks of large objects ❑ Preferred partner for private customers who value reliability and quality ❑ Clearer focus on construction tenders, efficiency of
Slide 16: Thank you!
merko Thank you!
Slide 17: 2. Decision on distribution of profits
Telecom office building 2. Decision on distribution of profits 17
Slide 18: 3. Appointment of auditor for financial years of 2018-2020
Z-Towers (Riga) 3. Appointment of auditor for financial years of 2018-2020 18
Slide 19: 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