Slide 1: Merko Ehitus Group 12 months and Q4 2015 interim report
MERKO EHITUS GROUP 12 months and Q4 2015 interim report February 2016
Slide 2: Agenda
Agenda 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 2 Liepaja Concert Hall
Slide 3: Merko group key highlights 12M 2015
Merko group key highlights 12M 2015 Revenue EUR 66m in Q4 and 2015 12m EUR 251m remain on par with 2014. Q4 profit exceeded expectations. Expected growth in revenues and strong performance in Lithuania. Giving continuing construction services revenue growth outside Estonia, approximately 38% (
Slide 4: Merko group key financial highlights
Merko group key financial highlights 12M 12M Q4 Q4 EUR millions Variance Variance 2015 2014 2015 2014 Revenue 251.0 252.3 -0.5% 66.4 70.1 -5.2% Gross profit 23.0 24.7 -7.1% 7.7 8.5 -9.1% Gross profit margin (%) 9.1 9.8 -6.6% 11.6 12.1 -4.2% EBITDA 15.5 16.4 -5.7% 5.6 6.2 -11.0% Profit before tax 11.
Slide 5: Revenues and gross profit Q4 2015
Revenues and gross profit Q4 2015 REVENUES Real estate development segment thriving as quarterly revenues are up by 28% y-o-y. Mainly related to handing over of more units. Estonian construction service segment decreases (down by 12%) as anticipated and Latvian and Lithuanian construction servic
Slide 6: Revenues and gross profit 12M 2015
Revenues and gross profit 12M 2015 REVENUES Strong performance from real estate development (revenues up by 54% y-o-y), Latvian and Lithuanian construction service segment (up by 11%) . Revenues from our first electrical engineering project in Latvia and pile works contract in Finland. Decreas
Slide 7: Real estate development - apartments
Real estate development - apartments Q4 projects launched as planned. Closely monitoring increased supply in Tallinn and Vilnius, to be prepared for longer sales periods. 403 apartments sold in 12M (12M 2014: 395 Revenue growth mainly attributable to apartments sold in a more exclusive development
Slide 8: Secured Order Book
Secured Order Book Secured order book 38% higher y-o-y. Total new contracts signed 12M 2015 EUR 247m (12M 2014: 170m) Q4 2015 new contracts EUR 95m. Additional 1 large contract for EUR 7m signed at the beginning of Q1 2016. Good rate of new contracts from Estonia. In Latvia not a comparable
Slide 9: Financial position
Financial position Group’s liquidity position impacted by increased level of investments in land EUR 12m, release of option (EUR 4m), dividend payment in Q2 2015 (EUR 7m) and share capital reduction payment in Q4 2015 (EUR 4m). The net debt amounted to EUR -9m and debt ratio at modest level of 1
Slide 10: Dividend and share capital reduction
Dividend and share capital reduction EUR 7m dividends (EUR 0.41 per share) paid in Q2 2015 and EUR 4m share capital reduction (EUR 0.23 per share) paid in Q4 2015. Including share capital reduction the 2014 pay-out ratio is 91% and yield of 9%. The Management Board proposes to pay the shareholde
Slide 11: Stock Exchange overview
Stock Exchange overview Market Cap EUR 150.1m (31.12.2014: EUR 127.4m) +18.8% y-o-y No of % of total % of total Shareholders Variance shares 31.12.2015 30.09.2015 AS Riverito (management) 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Firebird Republics Fund Ltd 395
Slide 12: Baltic construction market
Baltic construction market Source: Local national statistical offices Source: European Comission Directorate-General for Economic and Financial Affairs Marginal increase in construction prices, main impact due to labour force costs. No significant pressure on input prices expected as weak outlook
Slide 13: Housing market in Baltics
Housing market in Baltics Source: European Comission Directorate-General for Economic and Financial Affairs Source: Eurostat Demand remains for good quality and optimal price level residential premises in all Baltic capitals. Continuing positive macro development supported the residential market
Slide 14: Outlook
Outlook Long term outlook: the leading Baltic construction and development business Post 2015-2016 EU funds will support the increase in civil and public sector building orders. 2016 still challenging due to timing of EU projects’ tendering. Strengthen our position as leading apartment develop
Slide 15: Group in brief
Group in brief Estonian construction services Wide scope of (43% of revenue), Latvian and Share quoted on construction services: Lithuanian construction Nasdaq OMX services (29%), Real Estate • General construction Development (28%) Tallinn since 1997 • Engineering construction • Road construction •
Slide 16: 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. 14111314 Tallinn, Estonia Phone: +372 6501 250 group.merko.ee 16
Slide 17: 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