Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — Non-Deal Roadshow (October 2014)
24 slides from Merko Ehitus As's roadshow presentation, Oct 16, 2014
Slide 1: Merko Ehitus – East Capital Investor Tour
MERKO EHITUS Construction, Engineering & Real Estate 16 October 2014 East Capital Investor Tour
Slide 2: Agenda
Agenda 1. About the Group 2. Business Activities 3. 2013 and 6M 2014 Results 4. Market Outlook and Focus 2
Slide 3: Group In Brief
Group In Brief Construction services: • General construction • Engineering construction • Road construction Own developed real estate The largest listed projects Operates in construction company in the Estonia (81% of revenue), Baltics Latvia (17%), Lithuania (2%) 31.12.2013: Net Profit 2013: 860 em
Slide 4: Value Offering
Value Offering Integrated project management and general contracting service across the full life cycle of construction projects. From idea to planning to engineering design to site works to warranty: full responsibility to deliver the project. We mainly contract subcontractors, but also use own
Slide 5: Market
merko MARKET
Slide 6: Construction Market
fod Construction Market BUILDING MARKET VOLUMES (WITH OWN FORCES) AND GROWTH IN THE BALTIC STATES in million euros 5652 5076 4488 210 1821 3612 1898 1489 2426 1099 961 981 1491 1142 2010 20n 2012 2013 2014 1HY mEstonia = Latvia Lithuania
Slide 7: Real Estate Market
fod Real Estate Market House price index (2010=100) 2006 2007 2008 2009 2010 2011 2012 2013 2014 Estonia Latvia Lithuania EU
Slide 8: Business Activities
merko BUSINESS ACTIVITIES
Slide 9: General Construction
General Construction Construction of buildings and facilities 33% of 2013 revenues (+40% y-o-y), 50% of HY 2014 Decrease since 2009 (2009: 43% of total revenues) due to increasing share of infra projects, however this is changing yet again Markets: Tondiraba Ice Arena, 2014 9
Slide 10: Civil Engineering
Civil Engineering Infrastructure and engineering projects. Including water, environmental and electrical projects. 36% of 2013 revenues ( -17% y-o-y), 21% of HY 2014 EU funding is key Markets: Design and construction of pipes in Leppneeme village, 2013 10
Slide 11: Road Construction
Road Construction Road construction and long-term road maintenance contracts 19% of 2013 revenues (+10% y-o-y), 10% of HY 2014 EU funding is key Since 2010 large scale projects Market: Reconstruction of Ülemiste traffic junction, 2013 11
Slide 12: Real Estate Development
Real Estate Development Own development of residential apartments Merko has become the flagship of Baltics residential development 12% of 2013 revenues (+14% y-o-y), 18% of HY 2014 2009-2011 downturn years Markets: Skanstes virsotnes apartment buildings, several phases 2006-2013 12
Slide 13: 2014 Largest Projects In Progress – Estonia
2014 Largest Projects In Progress Estonia Own development Kentmanni apartment building Hilton Hotel (2015): €31.2 mln (2014): €28 mln Design and renovation of the infrastructure of Tondiraba Ice Arena (2014): €21.7 mln Tallinn tram line no. 4 (2015): €26 mln, consortium 13 13
Slide 14: 2014 Largest Projects In Progress – Latvia
2014 Largest Projects In Progress Latvia Liepaja Concert Hall (2015): €28.3 mln Polipaks manufacturing and logistics center (2015): €17.8 mln Valmiera’s Professional School (2015): €5.9 mln Riga State Technical School (2015): €4.8 mln 14 14
Slide 15: 2014 Largest Projects In Progress – Lithuania
2014 Largest Projects In Progress Lithuania Vilnius and Kaunas train terminals (2014): €3.6mln Own development: Fizikų, 108 apartments (started in 2014) Civil construction works of Nordbalt HVDC converter station in Vilnius Balsiai Secondary School – PPP (2011–2035) Klaipeda district (2015): €6.0mln
Slide 16: 2013 and 6M 2014 Results
merko 2013 AND 6M 2014 RESULTS
Slide 17: 2013 and 6M 2014: Key Highlights
2013 and 6M 2014: Key Highlights EUR millions 2013 2012 Var 6M 6M Var 2014 2013 Revenue 262.7 249.1 +5.5% 113.7 113.7 0.0 Gross profit 22.7 17.9 +26.8% 10.1 9.8 +3.1% Gross profit margin, % 8.6 7.2 +19.4% 8.9 8.6 +3.5% EBITDA 15.1 11.4 +32.5% 10.1 9.8 +3.1% Net profit, attributable to equity holders
Slide 18: Stock Exchange overview
Stock Exchange overview No of % of total % of total Shareholders Variance shares 30.09.2014 30.06.2014 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. 469 378 2,65% 2,71% -10 149 Firebird Republics Fund Ltd
Slide 19: Market Outlook and Focus
merko MARKET OUTLOOK AND FOCUS
Slide 20: Market outlook
Market outlook Construction market • A decrease of 10-15% in construction volumes is expected in the Baltic States, primarily in Estonia, during 2014 and 2015. • Continuing decrease of public sector procurements due to the switchover to the new EU funding period and uncertainties around allocation o
Slide 21: Focus going forward
Focus going forward • Key challenge to increase and also keep the 2013 level of secured order book. • Active positioning in residential real- estate. • Closely following the developments in the nearby markets and new opportunities. Aim to identify non-Baltic revenue potential at acceptable risk leve
Slide 22: Site visit: Kentmanni VI
Site visit: Kentmanni VI Exclusive apartment building in the heart of Tallinn offering great views to the old town, city centre and Gulf of Tallinn 14 storeys, 92 apartments + commercial premises. Two sections (8- and 14-storey) of the building are interconnected through a 2-storey underground car p
Slide 23: 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 23
Slide 24: 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