Slide 1: Q3 2023
Q3 2023 Tomas Carlsson | CEO Susanne Lithander | CFO 1 Oct 31, 2023 NCC AB Pawing work in Björkliden, Sweden
Slide 2: Strong earnings
Strong earnings Steady net sales and orders received within normal range Infrastructure shows Industry has a good Building Sweden and steady improvement quarter, back on Nordics still impacted in the business normal levels by lower margins in ongoing projects Pawing work in Björkliden, Sweden Add te
Slide 3: Orders received on normal levels
Orders received on normal levels Some seasonal variation – Infrastructure lower than previous year SEK M 20,000 15,000 10,000 5,000 14,255 16,568 16,059 16,635 12,763 12,280 16,288 14,691 11,607 8,905 9,681 0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 3 Oct 31, 2023 NCC AB
Slide 4: No large Infrastructure project this quarter
No large Infrastructure project this quarter Large projects incl Käppalaverket 5,000 4,466 4,000 2,933 3,000 2,655 2,510 2,461 2,290 2,367 2,321 2,000 1,780 1,000 0 Q3 2021 Q3 2022 Q3 2023 Infrastructure Building Sweden Building Nordics 4 Oct 31, 2023 NCC AB
Slide 5: Solid order backlog
Solid order backlog Book to bill SEK M 70,000 1.4 60,000 1.2 50,000 1.0 40,000 30,000 0.8 20,000 0.6 62,333 59,486 54,821 50,945 56,096 58,816 54,525 55,763 62,510 60,960 59,047 54,995 58,910 59,359 54,594 10,000 0 0.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 Order backlog Bo
Slide 6: Public buildings
Public buildings Orders received Building Sweden and Building Nordics Residential Offices Public buildings SEK M SEK M SEK M 2.0 2.0 2.0 4,000 4,000 4,000 3,000 1.5 3,000 1.5 3,000 1.5 2,000 1.0 2,000 1.0 2,000 1.0 1,000 0.5 1,000 0.5 1,000 0.5 0 0.0 0 0.0 0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 7: Net sales
Net sales SEK M SEK M 60,000 16,000 50,000 40,000 12,000 30,000 8,000 20,000 4,000 10,140 12,745 14,531 15,998 14,001 14,068 16,018 12,464 14,854 14,022 10,111 10,000 0 0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Net sales Net sales R12 Net sales R12 excl PD 7 Oct 31, 2023 NCC AB Net sales in
Slide 8: Strong earnings in the business
Strong earnings in the business Without capital gain from divestment of Bergnäset and with no Property Development sale in the earnings SEK M 1,000 4.0 3.4 3.4 3.4 800 3.1 3.2 3.0 3.0 3.0 2.5 2.5 2.6 2.5 600 400 2.0 200 1.0 487 877 605 474 510 544 152 503 614 0 -144 -170 -200 0.0 Q1 2021 Q2 Q3 Q4 Q1
Slide 9: Strong earnings
Strong earnings Including SEK 175 M in one-off from divestment of subsidiary SEK M 1,000 4.0 3.4 3.4 3.4 3.5 800 3.1 3.0 3.0 3.0 2.5 2.5 2.6 2.5 600 400 2.0 200 1.0 487 877 605 474 510 544 152 503 789 0 -144 -170 -200 0.0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 EBIT EBIT margin % R12 9 Oct 3
Slide 10: Industry back on normal levels, no PD sales in the quarter
Industry back on normal levels, no PD sales in the quarter Q3 EBIT Industry back on normal levels, no PD sales in the 10 Oct 31, 2023 NCC AB quarter Kungsörnen, , Helsingborg, Sweden
Slide 11: Industry back on track – Infrastructure improves
Industry back on track – Infrastructure improves Property Development on par with previous year Jan-Sep 11 Oct 31, 2023 NCC AB
Slide 12: Market outlook
Market outlook • Large parts of the construction market remains strong with many new projects in early phases • Local variations • Commercial and residential markets weak • Municipalities and regions somewhat more muted 12 Oct 31, 2023 NCC AB Granåsen, Trodheim,Norway
Slide 13: Focus areas for NCC
Focus areas for NCC • Build on our strengths – continue to select the right projects • Adapt our organization locally where needed 13 Oct 31, 2023 NCC AB Käppalaverket, Lidingö, Sweden
Slide 14: Susanne Lithander
Susanne Lithander 14 Oct 31, 2023 NCC AB
Slide 15: Order backlog
Order backlog SEK M 20,000 15,000 10,000 5,000 14,476 15,397 17,913 18,293 18,747 14,975 0 Infrastructure Building Sweden Building Nordics Order backlog Net sales R12 Kronprinsen, Malmö, 15 Oct 31, 2023 NCC AB Sweden
Slide 16: Contracting margins
Contracting margins Infrastructure improves margin 20 quarters in a row %* 4 3 Infrastructure 2 Building Sweden Building Nordics Internal target 1 0 Q3 2019 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 *R12 EBIT margin. BA Infrastructure without Road Services and adjusted for
Slide 17: NCC Infrastructure
Share of net sales % NCC Infrastructure SE 74 DK 13 NO 13 No large orders in the quarter Energy and Water treatment largest Earnings improves segment in orders received YTD 6% SEK M 14% 200 4 5,000 9% 12% 9% 4,000 8% 7% (15) 3% 150 3 7% (4) (10) 3% (12) 3,000 (4) 100 2 28% 2,000 26% (27) 28% 40% 50
Slide 18: NCC Building Sweden
NCC Building Sweden Stable orders received and net Public buildings and refurbishment Earnings bouncing back after write- sales largest segments downs last year SEK M SEK M % 5,000 200 4 150 3 4,000 8% 7% (16) (11) 100 2 17% 3,000 (27) 50 1 100 59 2,000 45% 0 0 -56 (27) 23% (19) -50 -1 1,000 2,290 2
Slide 19: NCC Building Nordics
Share of net sales % NCC Building Nordics DK 48 NO 16 FI 36 Orders received and net sales Public buildings dominates Weaker market in Finland continues to grow SEK M SEK M % 5,000 200 4 7% (11) 8% (32) 4,000 150 3 25% 17% (4) (13) 3,000 100 2 2,000 50 1 1,000 43% 111 104 1,780 2,788 2,321 3,226 2,46
Slide 20: NCC Industry
NCC Industry Asphalt volumes stable, stone volumes slightly down Stone material sold, thousands of tons Asphalt sold, thousands of tons (excl Asphalt Finland) 9,000 2,000 8,000 1,800 7,000 1,600 1,400 6,000 1,200 5,000 1,000 4,000 800 3,000 600 2,000 400 199 188 133 5,892 1,531 8,092 7,339 7,653 6,3
Slide 21: NCC Industry
Share of net sales % NCC Industry * SE 53 DK 24 NO 21 FI 2 Returning to more normal earnings Net sales Earnings and margin SEK M SEK M 4,000 300 10 9 250 8 3,000 7 Operating 4,820 200 capital 6 employed, 150 5 2,000 SEK M 4 100 3 ROCE, % 6.9 1,000 2 50 306 281 1 2,236 3,383 2,333 3,637 2,218 3,862 5
Slide 22: NCC Property Development
NCC Property Development EBIT, SEK M 350 323 300 273 277 268 256 250 200 179 183 150 100 68 54 47 50 40 29 19 1 0 -50 -20 -11 -25 -18 -37 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 22 Oct 31, 2023 NCC AB Flow, Hyllie, Sweden
Slide 23: NCC Property Development
NCC Property Development EBIT, SEK M 600 500 478 482 434 400 312 300 201 200 100 0 2019 2020 2021 2022 Jan-Sep 2023 23 Oct 31, 2023 NCC AB Våghuset, Gothenburg, Sweden
Slide 24: NCC Property Development
NCC Property Development Operating 9,225 7 ongoing projects, 4 completed projects capital employed, SEK M Sold projects, expected time of profit recognition ROCE, % 5.7 2023 2024 2027 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 // Q2 Kontorværket 1 Arendal Albatross MIMO Park Central Land sale Solna, part II Ongoing pr
Slide 25: Current project portfolio – Sweden and Finland
Current project portfolio – Sweden and Finland 7 ongoing projects – 34% let, 3 projects pre-sold 4 completed projects – 87% let sqm sqm 300,000 300,000 250,000 250,000 200,000 200,000 150,000 150,000 100,000 100,000 50,000 50,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 2021 2022 2023 2023 Prev
Slide 26: NCC Property Development
NCC Property Development SQM 300,000 80% 70% 250,000 60% 200,000 50% Remaining unlet area, sqm 150,000 40% Let during quarter, sqm 30% *Sold, no letting 100,000 20% Previously let area, sqm 50,000 10% Let during quarter (% of available unlet area) 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Total letting
Slide 27: Earnings
Earnings R12, Q3 Jan - Sep Oct-Sep Jan-Dec SEK M 2023 2022 2023 2022 2022/2023 2022 Earnings in segments (all BAs) 747 420 1,439 910 2,047 1,518 NCC HQ and subsidiaries -13 27 -171 -105 -197 -131 Internal gains 7 8 13 -20 -11 -44 Other group adjustments 47 54 163 29 149 15 Other & Eliminations total
Slide 28: Cash flow
Cash flow R12, Jan- Q3 Jan-Sep Oct-Sep Dec SEK M 2022/ SEK M 2023 2022 2023 2022 2023 2022 2,000 1,500 From operating 1,389 activities 586 711 1,523 1,307 2,213 1,997 1,000 1,037 From property 500 687 692 764 586 projects -437 -143 -1,294 -1,126 -1,686 -1,518 19 0 -360 Other working capital 415 145
Slide 29: Corporate net debt Sep 30, 2023
Corporate net debt Sep 30, 2023 0 Net debt* / EBITDA ** -500 Target < 2.5x Sep 30, 2023 1.06x -1,000 -1,867 *Corporate net debt excluding pension liabilities and leasing liabilities -1,500 -2,787 -2,000 -2,500 -3,000 2022 Q3 2023 Q3 29 Oct 31, 2023 NCC AB
Slide 30: Tomas Carlsson
Tomas Carlsson 30 Oct 31, 2023 NCC AB
Slide 31: Health & Safety target
Health & Safety target Lost Time Injury Frequency LTIF4** for NCC employees TARGET 300 10.0 LTIF4 2.0 9.0 250 8.0 200 7.0 2026 5.8 6.0 150 4.6 5.0 4.1 4.1 3,9 R12 Q3, 2023 3.6 3.7 4.0 100 3.0 2.0 3.9 50 1.0 204 125 257 156 176 103 159 86 148 78 159 84 168 81 0 0.0 2017 2018 2019 2020 2021 2022 Q3 R1
Slide 32: Climate and Energy targets
Climate and Energy targets Reduction targets for 2030 Scope 1 and 2, ton Scope 3, kg Co₂e/bought volumes CO₂e per SEK M net sales Selected categories -60% -50% Ready-made concrete Asphalt Rebar steel Transport In progress -58% -20% -29% -43% 30 June, 2023 30 June, 2023 30 June, 2023 compared to 2015
Slide 33: Financial targets
Financial targets Earnings per share Net debt Dividend policy ≥16.00 < 2.5 ≈ 60% SEK 2023 x EBITDA of profit after tax Q3 2023 R12 Q3 2023 R12 55% of profit after tax 16.21 1.06 6.00 SEK x EBITDA SEK 33 Oct 31, 2023 NCC AB
Slide 34: Capital Market Day November 9, 2023
Capital Market Day November 9, 2023 • Welcome to Scandic Continental or online • Update on the business from the management team including all BA Managers 34 Oct 31, 2023 NCC AB Capital Market Day 2020
Slide 35: Summary
Summary • Strong earnings • Industry back on normal levels • Orders received seasonally normal • Bergnäset one-off capital gain • Market divided - variations regionally and between segments 35 Oct 31, 2023 NCC AB Björkliden, Sweden
Slide 36: Slide 36
Slide 37: Contact information
Contact information Tomas Carlsson, CEO tomas.carlsson@ncc.se Susanne Lithander, CFO susanne.lithander@ncc.se Tel +46 730 37 08 74 Maria Grimberg, Head of Communication & IR maria.grimberg@ncc.se Tel +46 708 96 12 88 ncc.com/Investor-relations For definitions and details, please see the quarterly re