Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — FY2019 Earnings Presentation
16 slides from Merko Ehitus As's earnings presentation, Feb 13, 2020
Slide 1: 12 months and Q4 2019 interim report
AS MERKO EHITUS 12 months and Q4 2019 interim report 13 February 2020 RAND urban villas, Suur-Patarei, 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 Hundipea port in Estonia
Slide 3: Merko Group Key Highlights
Merko Group Key Highlights ❑ Q4 2019 revenue EUR 99m and 12M 2019 EUR 327m, down 22% compared to 12M 2018 Decline as expected: 2018 extraordinarily high comparison base, markets are cooling off, secured order book (EUR 141m) decreased -38% y-o-y ❑ In 12M 2019, 48% of revenue earned outside Estonia ❑
Slide 4: Merko Group Key Financial Highlights
Merko Group Key Financial Highlights EUR million 12M 2019 12M 2018 Variance* Q4 2019 Q4 2018 Variance* Revenue 326.8 418.0 -21.8% 99.2 119.2 -16.8% EBITDA 21.9 21.9 +0.3% 10.2 7.6 +35.2% EBITDA margin (%) 6.7 5.2 10.3 6.3 Operating profit 19.2 19.9 -3.2% 9.3 7.0 +33.6% Operating profit margin (%) 5.
Slide 5: Business Review: Construction Service
BUSINESS REVIEW: Construction Service EUR million Q4 12M 2019 12M 2018 Variance Q4 2018 Variance 2019 Revenue 326.8 418.0 -21.8% 99.2 119.2 -16.8% Construction service 256.7 347.1 -26.0% 52.7 96.6 -45.4% Real estate development 70.1 70.9 -1.2% 46.5 22.6 +104.9% ❑ The decline in group's revenue was e
Slide 6: Business Review: Secured Order Book
BUSINESS REVIEW: Secured Order Book SECURED ORDER BOOK in million euros 388 396 400 344 279 288 292 300 256 270 247 243 247 239 229 257 190 200 172 152 141 170 100 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 Q4
Slide 7: Business Review: Real Estate Development
BUSINESS REVIEW: Real Estate Development Group’s central business line APARTMENTS SOLD AND APARTMENT REVENUE ❑ In 12M 2019, sold 482 apartments, incl. 47 in joint pcs / in million euros venture, and 24 commercial areas, (12M 2018: 43,6 also 482, incl. 131 in joint venture, and 15 commercial areas) 2
Slide 8: Financial Position
Financial Position CHANGE IN CASH AND CASH EQUIVALENTS in million euros CHANGE IN CASH AND CASH EQUIVALENTS in million euros 0,0 (0,0) 33,8 (33,0) ( 12,4) (0,0) ( 2,4) ( 0,5) 0,0 39,2 40,0 40,0 0,0 24,7 0,0 0,0 31.12.2017 Operating Investing Financing 31.12.2018 31.12.2018 Operating Investing Financ
Slide 9: Dividend Proposal
Dividend Proposal DIVIDEND PER SHARE The Management Board proposes to pay in euros a total amount of EUR 10.62m as dividends (EUR 0.6 per share) in 2020 1,00 1,00 Based on Management Board proposal: 0,60 0,51 ➢ 2019 dividend rate 65% 0,41 ➢ 2019 dividend yield 6.4% (using share price of 9.38 euros a
Slide 10: Stock Exchange Overview
Stock Exchange Overview P/B RATIO times 1,32 1,31 10 1,28 1500 1,26 volume of transactions, thousand EUR 8 1200 Market Cap as at 31.12.2019: EUR 166m 1,21 (31.12.2018: EUR 163m) share price in EUR +2.0% during 12M 6 900 4 600 31.12.2015 31.12.2016 31.12.2017 31.12.2018 31.12.2019 2 300 P/E RATIO tim
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 4,3 3 299 4,1 3 000 2 867 4 2 500 2 1,9 2 000 2 023 1 500 0 1 000 500 -2 2015 2016 2017 2018 2019 12M 2015 12M 2016 12M 2017 12M
Slide 12: Housing Market
NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE Housing Market INDEX (4 QUARTER ROLLING AVERAGE) (2013=100) 170 160 150 140 130 120 110 100 90 2014 2015 2016 2017 2018 2019 Estonia new Estonia all Latvia new Latvia all Source: Eurostat Lithuania new Lithuania all ❑ In Estonia, the relative
Slide 13: 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: ❑ Preferred partner for private customers who value ❑ Selling the bes
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