Slide 1: Q1 2023
Q1 2023 Tomas Carlsson, CEO Susanne Lithander, CFO 1 Apr 26, 2023 NCC AB Papirøn, Denmark
Slide 2: Good orders received in all business areas
Good orders received in all business areas Good orders Infrastructure Building Sweden received and a solid continues to improve and Nordics order backlog quarter after quarter somewhat lower margins in the order backlog Oceana, Gothenburg, Sweden Good cashflow Industry had a good Property start to t
Slide 3: Good orders received
Good orders received SEK M 20 000 2,0 15 000 1,5 10 000 1,0 5 000 0,5 14 255 12 280 16 568 16 059 16 635 12 763 16 288 11 607 8 905 0 0,0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Orders received Book to bill,Q 3 Apr 26, 2023 NCC AB Orders received
Slide 4: A shift towards public buildings
A shift towards public buildings Residential Offices Public buildings SEK M SEK M SEK M 2 2 2 4 000 4 000 4 000 3 000 3 000 3 000 2 000 1 2 000 1 2 000 1 1 000 1 000 1 000 0 0 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 5: Building Sweden portfolio adjustment
Building Sweden portfolio adjustment Residential Public buildings SEK M SEK M 3 000 2,0 3 000 2,0 1,5 1,5 2 000 2 000 1,0 1,0 1 000 1 000 0,5 0,5 0 0,0 0 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2020 2021 2022 2023 Orders Received Resident
Slide 6: Solid order backlog – Book-to-bill ~1
Solid order backlog – Book-to-bill ~1 Book to bill SEK M 70 000 1,4 60 000 1,2 50 000 1,0 40 000 30 000 0,8 20 000 62 510 62 333 59 486 54 821 50 945 56 096 58 816 54 525 55 763 60 960 59 047 54 995 58 910 0,6 10 000 0 0,4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 Order backlog Orde
Slide 7: Net sales
Net sales SEK M SEK M 70 000 60 000 15 000 50 000 40 000 10 000 30 000 20 000 5 000 10 140 12 745 14 531 15 998 14 001 14 068 16 018 12 464 10 111 10 000 0 0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Net sales Net sales R12 Net sales R12 excl PD 7 Apr 26, 2023 NCC AB Net sales in Q1
Slide 8: EBIT: Seasonally low but positive impact from PD
EBIT: Seasonally low but positive impact from PD SEK M EBIT EBIT margin % R12 SEK M 4 950 750 3 550 2 350 1 152 150 0 -50 -69 -144 -170 -250 -1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 8 Apr 26, 2023 NCC AB
Slide 9: Market outlook
Market outlook • Continued strong market for infrastructure and industrial development • Growing demand for public buildings • Residential and commercial market significantly slower Käppala water treatment plant, 9 Apr 26, 2023 NCC AB Lidingö, New Sweden North Zeeland Käppalaverket, Hospital, Liding
Slide 10: Focus areas for NCC
Focus areas for NCC • Diligent project selection • Using our segment strengths • Continued execution discipline • Adapting resources where needed 10 Apr 26, 2023 NCC AB Arna Quarry, Onsala Södra Norway rymdrum, Sandby, Sweden Sweden Lumit, art high school, Kuopio, Finlnad
Slide 11: Susanne Lithander
Susanne Lithander 11 Apr 26, 2023 NCC AB
Slide 12: Solid order backlog in all contracting units
Solid order backlog in all contracting units SEK M 20 000 15 000 10 000 5 000 17 845 17 690 18 480 14 570 18 545 14 216 0 Infrastructure Building Sweden Building Nordics Order backlog Net sales R12 Kalliontie Prison 1, 1, Kalliontie Espoo, Espoo, 12 Apr 26, 2023 NCC AB Finland Kristianstada, Finland
Slide 13: NCC Infrastructure
Share of net sales % NCC Infrastructure SE 73 DK 13 NO 14 Solid and continued improvement Positive book-to-bill Orders received: Energy and Earnings improving SEK M water treatment growing SEK M % 6 000 6% 14% 9% 100 12% 5 000 90 15% 8% 80 3 3% (8) (15) 8% 4 000 (15) 70 6% 2% 60 (11) 3 000 (3) 2 50
Slide 14: NCC Building Sweden
NCC Building Sweden Good orders received, shift in portfolio, margin impact from inflation and write -downs Orders received & Net Sales Orders received: Public buildings Earnings SEK M strong SEK M % 6 000 100 5 000 90 7% 6% (23) (3) 80 3 4 000 16% 70 (43) 60 3 000 2 50 2 000 50% 21% 40 (6) (25) 30
Slide 15: NCC Building Nordics
Share of net sales % NCC Building Nordics DK 47 NO 17 FI 36 Strong orders received, lower margins in the backlog from last year Orders received & Net Sales Two large orders – one hotel, Earnings one hospital SEK M SEK M % 6 000 0% 3% 2% (42) 100 (12) (10) 5 000 90 80 3 4 000 70 60 3 000 48% 2 (3) 50
Slide 16: NCC Industry: Stone and asphalt volumes
NCC Industry: Stone and asphalt volumes Stone materials somewhat lower volumes but higher revenue Stone material sold, thousands of tons Asphalt sold, thousands of tons (excl Asphalt Finland) 9 000 2 000 8 000 1 800 7 000 1 600 1 400 6 000 1 200 5 000 1 000 4 000 800 3 000 600 2 000 400 199 188 133
Slide 17: NCC Industry
Share of net sales % NO FI SE 50 DK 36 NCC Industry 9 5 Good orders received and a solid start to the year Higher prices to customers * EBIT seasonally low * SEK M SEK M 4 000 Q1 2021 Q1 2022 Q1 2023 50 0 Operating 3 000 4,411 -252 -305 -261 -50 capital -100 employed, 2 000 SEK M -150 -200 ROCE, % 1
Slide 18: NCC Property Development
NCC Property Development One project and one land sale in profit, one small project in Q1 2022 EBIT, SEK M 350 323 In bild på Kineum 300 273 277 268 256 250 200 179 183 150 100 68 54 47 50 40 29 19 1 0 -20 -11 -50 -25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 Kontor
Slide 19: NCC Property Development
NCC Property Development Operating 8,046 11 ongoing projects capital employed, SEK M Expected time of profit recognition for sold projects ROCE, % 9.4 2023 2024 2027 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 // Q2 Arendal Albatross MIMO Park Central Kontorværket 1 Land sale Solna, part II Ongoing unsold projects Comp
Slide 20: NCC Property Development
NCC Property Development Completion ratio above letting ratio SQM 300 000 70% 250 000 60% 50% 200 000 Remaining unlet area, sqm 40% 150 000 Let during quarter, sqm 30% *Sold, no letting 100 000 20% Previously let area, sqm 50 000 10% Let during quarter (% of available unlet area) 0 0% Q1 Q2 Q3 Q4 Q1
Slide 21: NCC Property Development leasing contracts signed
NCC Property Development 11 leasing contracts signed SQM 70% 30 000 60% 50% 20 000 40% Let during quarter, sqm 30% 10 000 20% 10% 0 0% Let during quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (% of available unlet area) 2020 2021 2022 2023 21 Apr 26, 2023 NCC AB
Slide 22: Earnings
Earnings Q1 R12, Apr-Mar Jan-Dec SEK M 2023 2022 2022/2023 2022 Earnings in segments (all BAs) 140 -86 1 744 1,518 NCC HQ and subsidiaries (incl Road -70 -60 -141 -131 Services) Internal gains 23 -13 -8 -44 Other group adjustments 60 -11 86 15 Other & Eliminations total 12 -84 -64 -161 EBIT 152 -170
Slide 23: Cashflow
Cashflow SEK M R12, Apr - Jan- 2 000 Q1 Mar Dec 1 500 2022/ 2023 2022 2022 SEK M 2023 1 000 From operating 340 -3 2,339 1,997 activities 500 586 1 389 687 692 1 037 19 From property -254 -311 -1,461 -1,518 0 projects -1 505 -500 -772 -360 Other working 104 -65 -44 -213 capital -1 000 Investing -171
Slide 24: Corporate net debt
Corporate net debt Dec 31,2022 500 Net debt* / EBITDA ** 265 Target < 2.5x 0 Mar 31, 2023, 0.7x R12 -500 *Corporate net debt excluding pension liabilities and leasing liabilities -1 670 -1 000 -1 500 -2 000 2022 Q1 2023 Q1 24 Apr 26, 2023 NCC AB
Slide 25: Number of shares
Number of shares • In 2022 NCC repurchased shares • March 31, the AGM decided to cancel 8,674,866 own Series B shares corresponding to 80% of the shares that NCC owned • A bonus issue without the issue of new shares of SEK 69,398,928 will restore the share capital that is unchanged 25 Apr 26, 2023 N
Slide 26: Tomas Carlsson
Tomas Carlsson 26 Apr 26, 2023 NCC AB
Slide 27: Health & Safety target
Health & Safety target Lost Time Injury Frequency LTIF1* and LTIF4** for NCC personnel TARGET LTIF4 300 9,5 10,0 2.00 9,0 2026 250 7,7 8,0 7,0 7,2 6,7 6,9 7,0 200 5,8 6,0 150 5,0 Accidents - absence 1 day 4,1 4,1 or more 3,6 3,7 3,5 4,0 100 Accidents - absence more 3,0 than 4 days 2,0 50 LTIF1 1,0 2
Slide 28: Climate and Energy targets
Climate and Energy targets Scope 1 and 2, ton CO₂e per SEK M net Reduction targets for 2030 sales Ton CO₂e per SEK M net sales -60% 6,0 5,2 4,5 4,0 4,1 3,6 3,2 3,0 3,0 2,5 -52% December 2022 2,0 Target 2,08 0,0 2015 2016 2017 2018 2019 2020 2021 2022 2030 Scope 3: Measured parts Ready-made concrete
Slide 29: Financial targets
Financial targets Net debt Dividend policy Earnings per share 16.00 < 2.5 ≈ 60% x EBITDA of profit after tax SEK 2023 R12, Q1 2023 Q1 2023 55% of profit after tax 13.47 0.7x 6.00 SEK SEK 29 Apr 26, 2023 NCC AB
Slide 30: Summary
Summary • Good orders received – shift in focus • Earnings solid in low activity quarter with strong contribution from PD • Stable financial position • Definitive impact on the residential and office market • Property market – timing for a more open market uncertain 30 Apr 26, 2023 NCC AB Valle Visi
Slide 31: Slide 31
Slide 32: Contact information
Contact information Tomas Carlsson, CEO tomas.carlsson@ncc.se Susanne Lithander, CFO susanne.lithander@ncc.se Tel +46 730 37 08 74 Maria Grimberg, Head of Communication & IR maria.grimberg@ncc.se Tel +46 708 96 12 88 ncc.com/Investor-relations For definitions and details, please see the quarterly re