Slide 1: Q2 2023
Q2 2023 Tomas Carlsson, CEO Susanne Lithander, CFO 1 Jul 18, 2023 NCC AB W ater treatment plant, Kristianstad, Sweden
Slide 2: Increase in orders received and higher profit
Increase in orders received and higher profit Good orders Infrastructure Building Sweden received and a solid increased earnings. and Building order backlog. Focus Bergnäset divested Nordics stable but on prioritized some remaining segments pays off earnings impact from Kulma21, Helsinki, Finland la
Slide 3: Good orders received
Good orders received 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 0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 3 Jul 18, 2023 NCC AB Herning, Denm ark
Slide 4: Building Nordics, Norway
Building Nordics, Norway Building Nordics, Infrastructure, Norge Denmark Stovner swimming hall Säkerhetspsykiatri, Baerum Water treatment plant, Sjaelland SEK 800 M 1SEK Mdr 600 SEKM Building Sweden Building Nordics, Danmark Building Nordics, Norway Refurbishment Avicii Arena, Renovering Herning Sec
Slide 5: Emphasis on public buildings
Emphasis on public buildings Residential Offices Public buildings SEK M SEK M SEK M 2 2 2 4,000 4,000 4,000 3,000 3,000 3,000 2,000 1 2,000 1 2,000 1 1,000 1,000 1,000 0 0 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 6: Energy & Water Treatment
Energy & Water Treatment SEK M 2,000 1,000 1,458 1,514 1,652 1,955 1,130 132 542 978 696 436 715 891 937 528 858 691 746 922 915 899 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 Orders Received Net sales Käppalaverket, Lidingö 6 Jul 18, 2023 NCC AB
Slide 7: Solid order backlog – Book-to-bill
Solid order backlog – Book-to-bill 1 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 56,096 58,816 54,525 55,763 62,510 60,960 59,047 54,995 58,910 59,359 0.6 10,000 0 0.4 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Order backlog Orders received, R12 Book to bill, excl
Slide 8: Net sales
Net sales SEK M SEK M 18,000 70,000 16,000 60,000 14,000 50,000 12,000 10,000 40,000 8,000 30,000 6,000 20,000 10,140 12,745 14,531 15,998 14,001 14,068 16,018 12,464 14,854 4,000 10,111 10,000 2,000 0 0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Net sales Net sales R12 Net sales R12 excl PD 8 Jul
Slide 9: EBIT on good level
EBIT on good level SEK M 4.0 950 3.4 3.4 3.4 3.1 3.0 3.0 750 2.6 3.0 2.5 2.5 2.5 550 2.0 350 1.0 150 487 877 605 474 510 544 152 503 0.0 -50 -144 -170 -250 -1.0 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 EBIT EBIT margin % R12 9 Jul 18, 2023 NCC AB Valle area, Oslo
Slide 10: Market outlook
Market outlook • Activity in the market in many segments • Growing demand for public buildings • Continued strong long-term market for infrastructure and industrial development • Residential and commercial market significantly slower • Property market activity very low 10 Jul 18, 2023 NCC AB Stora B
Slide 11: Focus areas for NCC
Focus areas for NCC • Diligent project selection • Using our segment strengths • Continued execution discipline • Adapting resources where needed 11 Jul 18, 2023 NCC AB New North Zeel Käppalaverket, and Hospital, Lidingö, Sweden Denm ark Water treatment plant, Kristianstad, Sweden
Slide 12: Susanne Lithander
Susanne Lithander 12 Jul 18, 2023 NCC AB
Slide 13: Solid order backlog in all contracting units
Solid order backlog in all contracting units SEK M 20,000 15,000 10,000 5,000 16,921 17,933 18,295 14,534 20,306 14,626 0 Infrastructure Building Sweden Building Nordics Order backlog Net sales R12 Kalliontie Mälarsjukhuset1,hospital, Kalliontie Espoo, 1, Espoo, Sweden 13 Jul 18, 2023 NCC AB Fi nlan
Slide 14: NCC Infrastructure
Share of net sales % NCC Infrastructure SE 75 DK 12 NO 13 Solid trajectory of improvement – focus on prioritized segments Fair orders received Energy and water treatment Earnings improving segment growing % SEK M SEK M 7,000 6% 14% 9% 140 6,000 12% 4% (12) 120 3 11% 7% 5,000 3% (14) 2% 6% (6) 100 (3
Slide 15: NCC Building Sweden
NCC Building Sweden Solid orders received – public buildings and refurbishment strong Volumes stable Public buildings and refurbishment Earnings impact from lower margins segments strong in some ongoing projects % SEK M SEK M 7,000 140 6,000 120 8% 6% 3 5,000 (25) (5) 100 18% 4,000 (31) 80 2 60 3,00
Slide 16: NCC Building Nordics
Share of net sales % NCC Building Nordics DK 48 NO 16 FI 36 Growing, some earnings impact from last year mainly in Finland and Norway Growing volumes and orders Public buildings dominates Lower margins in some ongoing received projects, mainly Norway and Finland SEK M SEK M % 7,000 140 2% 7% (12) (3
Slide 17: NCC Industry: Stone and asphalt volumes
NCC Industry: Stone and asphalt volumes Asphalt volumes on par, stone volumes following residential market 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
Slide 18: NCC Industry
Share of net sales % NCC Industry * SE 53 DK 25 NO 19 FI 3 Good progress and good start to the year Net sales up Earnings and margin on the right track SEK M SEK M 4,000 300 12 250 10 3,000 Operating 5,378 200 8 capital employed, 150 6 2,000 SEK M 100 4 ROCE, % 2.0 1,000 50 2 280 240 281 2,713 2,908
Slide 19: NCC Property Development
NCC Property Development No profit recognition of sold projects this quarter EBIT, SEK M 350 323 In bild på Kineum 300 273 277 268 256 250 200 179 183 150 100 68 54 47 50 40 29 19 1 0 -50 -20 -11 -25 -37 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Våghuset, 19
Slide 20: NCC Property Development
NCC Property Development Operating 8,787 7 ongoing projects, 4 completed projects capital employed, SEK M Expected time of profit recognition for sold projects ROCE, % 8.4 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
Slide 21: NCC Property Development letting contracts signed during Q2
NCC Property Development 7 letting contracts signed during Q2 SQM 300,000 70% 250,000 60% 50% 200,000 Remaining unlet area, sqm 40% 150,000 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
Slide 22: Earnings
Earnings R12, Jul-Jun Jan- Q2 Jan - Jun Dec SEK M 2023 2022 2023 2022 2022/2023 2022 Earnings in segments (all BAs) 552 575 692 489 1 721 1,518 NCC HQ and subsidiaries -87 -71 -158 -132 -157 -131 Internal gains -18 -16 5 -29 -10 -44 Other group adjustments 56 -14 116 -25 156 15 Other & Eliminations
Slide 23: Cash flow
Cash flow Seasonally negative R12, Jan- Q2 Jan-Jun Jul-Jun Dec SEK M 2022/ SEK M 2023 2022 2023 2022 2023 2022 2,000 1,500 From operating 1,389 activities 598 598 938 596 2,339 1,997 1,000 1,037 From property 500 687 692 projects -603 -672 -857 -984 -1,391 -1,518 586 19 0 -360 Other working capital
Slide 24: Corporate net debt Jun 30, 2023
Corporate net debt Jun 30, 2023 500 Net debt* / EBITDA 0 ** Target < 2.5x -500 Jun 30, 2023 1.4x -1,000 -1,984 *Corporate net debt excluding pension liabilities and leasing liabilities -1,500 -3,377 -2,000 -2,500 -3,000 -3,500 -4,000 2022 Q2 2023 Q2 24 Jul 18, 2023 NCC AB
Slide 25: Tomas Carlsson
Tomas Carlsson 25 Jul 18, 2023 NCC AB
Slide 26: Health & Safety target
Health & Safety target Lost Time Injury Frequency LTIF1* and LTIF4** for NCC employees 300 9.5 10.0 9.0 9.0 250 7.7 8.0 7.0 6.9 6.7 7.0 TARGET LTIF4 200 150 5.8 6.0 5.0 2.00 4.1 3.6 3.7 4.1 4.2 2026 4.0 100 3.0 2.0 50 1.0 257 156 176 103 159 86 148 78 159 84 182 85 0 0.0 2018 2019 2020 2021 2022 Q2
Slide 27: Climate and Energy targets
Climate and Energy targets Data for Jan-Jun presented in Q3 Scope 1 and 2, ton CO₂e per SEK M net sales -60% -52% December 2022 27 Jul 18, 2023 NCC AB Pålsjö Ängar, Helsingborg, Sweden
Slide 28: Financial targets
Financial targets Net debt Dividend policy Earnings per share 16.00 < 2.5 60% x EBITDA of profit after tax SEK 2023 R12, Q2 2023 Q2 2023 R12 55% of profit after tax 14.02 1.4x 6.00 SEK SEK 28 Jul 18, 2023 NCC AB
Slide 29: Targets going forward
Targets going forward • EPS target of 16 SEK remains – but for 2023 contingent on property market • Capital Markets Day planned for late autumn 2023 29 Jul 18, 2023 NCC AB Norrsken, Östersund, Sweden
Slide 30: Summary
Summary • Good orders received – clear demand in many segments • Good earnings in general – positive development • Stable financial position • Property market – timing for normalization of market uncertain 30 Jul 18, 2023 NCC AB Centralen, Västl änken, Gothenburg, Sweden
Slide 31: Slide 31
Slide 32: 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