Merko Ehitus As · OMXTSE:MRK1T

Merko Ehitus As — AS Merko Ehitus — Q2 2017 Earnings Presentation

15 slides from Merko Ehitus As's earnings presentation, Aug 10, 2017

  1. Slide 1: AS Merko Ehitus 6 months and Q2 2017 interim report

    AS MERKO EHITUS 6 months and Q2 2017 interim report 10 August 2017 Juuliku road junction and road section construction

  2. Slide 2: Agenda

    Agenda T1 shopping and entertainment centre 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 71m in Q2 and EUR 129m in 6M up approx. 22% compared to 6M 2016.  Strong apartment sales in 6M 2017.  Revenue increased on all group’s home markets.  Profitability from construction services remains under pressure. Shortage of workforce and stability of su

  4. Slide 4: Merko group key financial highlights

    Merko group key financial highlights EUR million 6M 2017 6M 2016 Variance Q2 2017 Q2 2016 Variance Revenue 128.8 105.6 +22.0% 70.7 58.7 +20.3% EBITDA 6.0 4.6 +32.4% 4.1 3.4 +22.5% EBITDA margin (%) 4.7 4.3 5.9 5.8 Operating profit 4.7 3.1 +53.1% 3.5 2.6 +33.4% Operating profit margin (%) 3.7 2.9 4.9

  5. Slide 5: Business review 6M and Q2 2017

    Business review 6M and Q2 2017  The sales growth in all business segments increased total revenue level, but profitability from construction sector remains under pressure.  The construction services revenue has been in line with managements expectations as several large- scale projects that lagged

  6. Slide 6: Real estate development - apartments

    Real estate development - apartments Tallinn and Vilnius markets stabilizing, demand remains strong with some longer sales periods. Riga still slow, expectations for growth remain.  Apartment sales as per expectations.  239 (incl. 1 in joint venture) apartments sold for EUR 26.9m in 6M (6M 2016: 1

  7. Slide 7: Secured order book

    Secured order book  Secured order book strong at EUR 388m (30.06.2016: EUR 279m). A very good level of new contracts in Latvia.  Total new contracts signed 6M 2017 EUR 217m (6M 2016: EUR 109m; 12M 2016: EUR 202m), incl. EUR 100m Multifunctional Centre Akropole contract in Latvia.  The constructio

  8. Slide 8: Financial position

    Financial position  Liquidity position maintained strong, cash at EUR 26m (30.06.2016: EUR 22m).  Net debt amounted to EUR 19m and debt ratio at 18% (30.06.2016: EUR 13m and 16%). Group is self-funding a large proportion of its own development projects construction activities and has not used any

  9. Slide 9: Stock Exchange overview

    Stock Exchange overview Market Cap EUR 162.8m (31.12.2016: EUR 160.2m) +1.7% during 6M Number of % of total % of total Shareholders Variance shares 30.06.2017 31.03.2017 AS Riverito 12 742 686 71.99% 71.99% - ING Luxembourg S.A. AIF Account 974 126 5.50% 5.50% - Firebird Republics Fund Ltd 363 094 2

  10. Slide 10: Baltic's construction market

    Baltic’s construction market Source: Local national statistical offices Source: Local national statistical offices  Estonia: development of new commercial buildings is stabilising. Public procurements for buildings at a moderate pace. Larger construction projects in the industrial and logistics sec

  11. Slide 11: Housing market in Baltics

    Housing market in Baltics Source: Eurostat Source: European Commission Directorate-General for Economic and Financial Affairs  In 2017 apartment market continued to stabilise in Tallinn and Vilnius and the trend is expected to continue. Riga’s apartment market still less active, but with gradual in

  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  Continue search for growth outside Estonia  In Latvia active participation in both private a

  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

AS Merko Ehitus — Q2 2017 Earnings Presentation on 6ix