Merko Ehitus As · OMXTSE:MRK1T

Merko Ehitus As — AS Merko Ehitus — Q3 2017 Earnings Presentation

15 slides from Merko Ehitus As's earnings presentation, Nov 9, 2017

  1. Slide 1: AS Merko Ehitus 9 months and Q3 2017 interim report

    AS MERKO EHITUS 9 months and Q3 2017 interim report 09 November 2017 The airport tram line in Tallinn

  2. Slide 2: Agenda

    Agenda The deffence force base complex in Tapa 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 2

  3. Slide 3: Merko group key highlights

    Merko group key highlights  Revenue EUR 86m in Q3 and EUR 215m in 9M up approx. 24% compared to 9M 2016.  Revenue increased on all group’s home markets, supported by large contracts in progress.  Profitability from construction services remains under pressure. Shortage of workforce and stability

  4. Slide 4: Merko group key financial highlights

    Merko group key financial highlights EUR million 9M 2017 9M 2016 Variance Q3 2017 Q3 2016 Variance Revenue 214.8 173.4 +23.9% 86.0 67.8 +26.8% EBITDA 11.0 8.4 +30.7% 5.0 3.9 +28.6% EBITDA margin (%) 5.1 4.9 5.8 5.7 Operating profit 8.8 6.1 +44.9% 4.1 3.0 +36.5% Operating profit margin (%) 4.1 3.5 4.

  5. Slide 5: Business review 9M and Q3 2017

    Business review 9M and Q3 2017 GROUP QUARTERLY REVENUE BY SEGMENTS 2017: EUR 86.0m GROUP REVENUE BY SEGMENTS 2017: EUR 214.8m in million euros 2016: EUR 67.8m in million euros 2016: EUR 173.4m 38,7 99,6 35,1 34,3 88,2 65,5 49,7 16,6 45,0 16,1 40,2 13,0 Estonian Other home markets Real estate develop

  6. Slide 6: Real estate development - apartments

    Real estate development - apartments APARTMENT REVENUE AND APARTMENTS SOLD The rate of growth seen in Tallinn and Vilnius is in million euros / pcs settling down. Increased supply has led to longer 225 sales periods. Riga still slow, expectations for growth remain. 141  Apartment sales as per expec

  7. Slide 7: Secured order book

    Secured order book SECURED ORDER BOOK in million euros 450 388 396 400 350 366 279 288 300 256 270 247 243 250 217 179 194 200 167 206 150 100 87 50 0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Secured order book New contracts signed, rolling 12M

  8. Slide 8: Financial position

    Financial position CHANGE IN CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS in million euros in million euros ( 11,1) ( 10,2) 0,0 ( 8,0) 0,8 ( 5,5) 39,9 33,5 18,6 20,8 31.12.2016 Operating Investing Financing 30.09.2017 31.12.2015 Operating Investing Financing 30.09.2016 activities CF

  9. Slide 9: Stock Exchange overview

    Stock Exchange overview 12 1200 P/B RATIO times 1,40 1,31 9 900 volume of transactions, thousand EUR 1,21 1,07 1,03 share price in EUR 6 Market Cap EUR 170m 600 (31.12.2016: EUR 160m) +7.4% during 9M 3 300 31.12.2013 31.12.2014 31.12.2015 31.12.2016 30.09.2017 0 0 12/16 01/17 02/17 03/17 04/17 05/17

  10. Slide 10: Baltic's construction market

    Baltic’s construction market BALTIC STATES CONSTRUCTION MARKETS (WITH OWN FORCES) 9 MONTHS CHANGE IN CONSTRUCTION PRICE INDEX ROLLING 12 MONTHS percentages in million euros 2 500 6 2 365 2 000 2 036 4 3,0 1,5 1 500 2 1 357 1,3 1 000 0 500 -2 30.06.2016 30.09.2016 31.12.2016 31.03.2017 30.06.2017 9M

  11. Slide 11: Housing market in Baltics

    Housing market in Baltics NEW AND ALL (dotted line) DWELLINGS QUARTERLY HOUSE PRICE CONSUMER CONFIDENCE INDICATOR INDEX (2015=100) difference between percentages of pos. and neg. responses 0 - 0,8 115 -4 105 - 7,7 -8 -8,8 95 -12 85 -16 75 -20 65 -24 2013 2014 2015 2016 2017 30.09.2016 31.12.2016 31.

  12. Slide 12: Future perspectives for 2017+

    Future perspectives for 2017+ Estonian construction service  Internal efficiency  Road and other infrastructure tenders  Close cooperation with private customers Other home markets construction service  In Latvia active participation in both private and public sector tenders in buildings segment

  13. Slide 13: Merko Group in brief

    Merko Group in brief Wide scope of Home markets: Estonia, Latvia, Lithuania and Share quoted on construction services: Norway Nasdaq OMX • General construction Tallinn since 1997 • Engineering construction • Road construction • Real estate projects Competitive advantages: • Broad range of The larges

  14. Slide 14: Contacts

    Contacts Andres Trink Signe Kukin Chief Executive Officer Chief Financial Officer andres.trink@merko.ee signe.kukin@merko.ee AS Merko Ehitus Delta Plaza, 7th floor Pärnu road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 14

  15. Slide 15: 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

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