Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — Investor Presentation (February 2008)
10 slides from Merko Ehitus As's investor presentation, Feb 19, 2008
Slide 1: Baltic States construction market and Merko Ehitus
merko Baltic States construction market and Merko Ehitus Tonu Toomik Chairman of the Board February 19 2008
Slide 2: Construction market outlook 2008
• Competition is getting fierce, margins will decrease in general construction sector. • Civil engineering market is more stable. Several environmental projects are coming to market, also road projects and crossings. The future of ports is disputable. • Inflation in Estonia will most likely exceed c
Slide 3: Construction activities in Estonia, Latvia and Lithuania
3 600 Construction activities in Estonia 3 154 3 175 3 039 3 100 Construction activities in Latvia 2 703 Construction activities in Lithuania 2 600 2 451 2 335 2 100 1 965 2 014 1 600 1 310 1 100 600 100 2000 2001 2002 2003 2004 2005 2006 2007 9m
Slide 4: Construction activities per capita, 2007 9m
4500 4086 4000 3775 3500 3000 2500 2000 1493 1500 1350 1102 1000 816 828 670 644 539 502 500 0 2001 2002 2003 2004 2005 2006 2007 9m Estonia Latvia Lithuania Finland
Slide 5: Growth of construction activities and GDP growth
240 226 220 196 200 181 180 168 163 160 145 140 131 122 111 123 120 117 114 100 2000 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Growth of construction activities in Estonia, market prices 19% 18% 13% 18% 28% 30% GDP growth in Estonia, market prices 13% 12% 10% 10% 18% 18% Growth of
Slide 6: Construction activities as share of GDP
18% Estonia Latvia Lithuania Finland 16,0% 16% 15,3% 14% 13,2% 12,8% 12% 11,6% 10,9% 10% 9,6% 8% 6% 4% 2% 0% 2001 2002 2003 2004 2005 2006 2007 9m
Slide 7: Contractor liquidity and residential sector outlook
• Main contractors with low liquidity, who is now oriented to narrow operating area, will face difficulties. • Residential construction sector will decrease significantly in Estonia and Latvia. Growth will continue in Lithuania still for about a year. • Market shares of the companies are small and c
Slide 8: Residential construction indicators by country
8 Estonia Latvia Lithuania Finland Sweden Denmark Norway 7 6,5 6,4 6,4 6,1 6 5,2 5,0 5 4 3,8 3,3 2,9 3 2,6 2,6 2,1 2 1,71,7 1 0 2001 2002 2003 2004 2005 2006
Slide 9: Living space per inhabitant and housing demand
• There is 30% less living space per 48 inhabitant in Estonia compared to 50 38 40 Finland and 40% less compared 29 30 26 to Sweden. Living space 24 20 increased in Estonia 0,5m² per 10 inhabitant in 2006. If such a 0 residential construction pace 2006 continues we will reach the same Es tonia Latv
Slide 10: Merko Ehitus sales and market share
million EUR 2005 2006 2007 Construction activities in Estonia 2 240 2 953 3 500* Merko Ehitus sales in Estonia 156 179 217 Merko Ehitus market share in Estonia 7,0% 6,1% 6,2% Construction activities in Baltic States 5 900 8 000 11 000* Merko Ehitus sales in Baltic States 207 282 353 Merko Ehitus mar