Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — FY2014 Earnings Presentation
16 slides from Merko Ehitus As's earnings presentation, February 2015
Slide 1: Merko Ehitus Group 12 months and IV quarter 2014
MERKO EHITUS GROUP 12 months and IV quarter 2014 February 2015
Slide 2: Agenda
Agenda 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 5. Group in brief 2
Slide 3: Key highlights
Key highlights EUR millions 12M 12M Var Q4 Q4 Var 2014 2013 2014 2013 Revenue 252.3 262.7 -4.0% 70.1 64.9 +8.0% Gross profit 24.7 22.7 +8.8% 8.5 5.4 +58.1% Gross profit margin (%) 9.8 8.6 +13.3% 12.1 8.3 +46.4% EBITDA 16.4 15.1 +8.9% 6.2 3.5 +79.5% Profit before tax 13.3 11.1 +19.4% 5.3 2.4 +116.9%
Slide 4: Revenues Q4 and 12M 2014
Revenues Q4 and 12M 2014 Q4 2014 REVENUES Increase in real estate development and road construction segments revenues (up by 66.6% and 22.5% y-o-y, respectively). Decrease of revenues in civil engineering segment (down by 10.7%) and general construction segment (down by 7.4%). 12M 2014 REVENUES
Slide 5: Gross profit Q4 and 12M 2014
Gross profit Q4 and 12M 2014 Q4 2014 GROSS PROFIT Gross profit margin 12.1%, despite declining construction revenues. Main contribution from real estate development segment (44.4% of total), where 40% of 2014 apartment sales were finalised in Q4 and; General construction segment (32.2%), where
Slide 6: Real estate development – apartments
Real estate development – apartments 326 apartments on active sale (31.12.2013: 300). Construction of 369 apartments launched during 12M 2014, including 60 in Q4 (12M 2013: 409). During 12 months new land plots for development in amount of EUR 4.4m acquired in Lithuania and Estonia (12M 2013:
Slide 7: Secured order book
Secured order book Secured order book 16.2% lower compared to last year. 12M 2014 new contracts signed EUR 170.4m vs EUR 254.3m in 12M 2013. Q3 2013 includes very large contracts signed in Estonia and Latvia: Hilton EUR 31m, Liepaja EUR 28m, Polipaks EUR 18m. Continuing decrease in the volume
Slide 8: Financial position
Financial position Group’s strong liquidity position maintained, cash at EUR 51.6m. The net debt amounted to EUR -13.9m and debt ratio at 15.1% (31.12.2013: EUR -11.2m and 14.8%). Group will start drawing more loans to support own developments in 2015. Current assets are at 2.3x current liabil
Slide 9: Dividend and share capital reduction proposals
Dividend and share capital reduction proposals Dividend pay-out ratio according to long-term financial objectives: 50-70% of the annual profit. The Management Board proposes to pay the shareholders the total amount of EUR 7.3 million as dividends (EUR 0.41 per share) in 2015. The Management Bo
Slide 10: Stock Exchange overview
Stock Exchange overview No of % of total % of total Shareholders Variance shares 31.12.2014 30.09.2014 AS Riverito (management) 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Skandinaviska Enskilda Banken S.A. 416 263 2,35% 2,65% -53 115 Firebird Republics Fund Ltd
Slide 11: Market outlook: construction
Market outlook: construction We are forecasting a continuing decline in the volume of Baltic construction contracts for general contractors. Continuing decrease of public sector procurements due to the switchover to the new EU funding period and uncertainties around allocation of funds by sectors
Slide 12: Market outlook: real estate
Market outlook: real estate Number of transactions and price per m2 have shown growth trend up during 2014 due to low interest rates and limited supply of new flats during the last few years. Market is calming down. Increased apartment offering is likely to cause price stabilisation and the prol
Slide 13: Focus going forward
Focus going forward Good cooperation with private sector customers. Still low level of public orders, pickup starting 2016. Active positioning in residential real- estate and Lithuanian construction market. Electrical construction important segment. Closely following the developments in the
Slide 14: Group in brief
Group in brief Construction services: Operates in Estonia (68% of revenue), • General construction Latvia (27%), Lithuania (5%) • Engineering construction • Road construction Own developed real estate projects The largest listed construction company in the Baltics 31.12.2014: Net Profit 2014: Share
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 mnt. 141, 11314 Tallinn, Estonia Phone: +372 6501 250 www.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