Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Q1 2016 Earnings Presentation
16 slides from Merko Ehitus As's earnings presentation, May 5, 2016
Slide 1: AS Merko Ehitus Consolidated 3 months interim report
AS MERKO EHITUS Consolidated 3 months interim report 5 May 2016
Slide 2: Agenda
Agenda 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 2 Centre North Estonian Medical
Slide 3: Merko group key highlights 3M 2016
Merko group key highlights 3M 2016 Revenue EUR 47m in 3m remain on par with 2015. Q1 profit below expectations. Expected growth in revenues from general construction projects in Estonian construction service segment Sale of non-strategic land plots in Estonia and Latvia. Acquisition of a m
Slide 4: Merko group key financial highlights
Merko group key financial highlights EUR million 3M 2016 3M 2015 Variance 2015 Revenue 46.8 45.6 +2.7% 251.0 Gross profit 3.1 3.6 -14.0% 23.0 Gross profit margin (%) 6.5 7.8 -16.3% 9.1 EBITDA 1.2 1.9 -36.6% 15.5 Profit before tax 0.3 0.8 -63.7% 11.7 Net profit, attr. to equity holders of the parent
Slide 5: Revenues and gross profit 3M 2016
Revenues and gross profit 3M 2016 REVENUES Strong performance from real estate development (revenues up by 79% y-o-y) and Estonian construction service segment (up by 11%). Continuing decline of public orders (only 20% share in portfolio). Civil engineering construction volumes in a slump which
Slide 6: Real estate development - apartments
Real estate development - apartments Q1 projects launched as planned. Closely monitoring increased supply in Tallinn and Vilnius, to be prepared for longer sales periods. 101 apartments sold in 3M (3M 2015: 62; 12M 2015: 403). Construction of 90 apartments launched during 3M 2015 (3m 2015: 103;
Slide 7: Secured Order Book
Secured Order Book Secured order book 46% higher compared to same period last year. Total new contracts signed 3M 2016 EUR 22m (3M 2015: 22m; 12M 2015: 247m) Additional contract for EUR 5m signed in Latvia at the beginning of Q2 2016. Construction orders have dropped in engineering construct
Slide 8: Financial position
Financial position Group’s liquidity position maintained, cash at EUR 34.4m. The net debt amounted to EUR -8m and debt ratio at modest level of 13% (31.03.2015: EUR -6m and 15%; 31.12.2015: EUR -9m and 15%). Strong liquidity buffer as group is still self-funding a big proportion of its developme
Slide 9: Dividend
Dividend The AGM of shareholders decided to pay the shareholders the total amount of EUR 9m as dividends (EUR 0.51 per share) in 2016. 2016 dividend rate at 90% and gives a yield of 6%. Dividend payment will be made on 20 May 2016. * Using share price as at 31.12 9
Slide 10: Stock Exchange overview
Stock Exchange overview Market Cap EUR 159.3m (31.12.2015: EUR 150.1m) +6.1% during 3M No of % of total % of total Shareholders Variance shares 31.03.2016 31.12.2015 AS Riverito (management) 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Firebird Republics Fund Ltd
Slide 11: Baltic construction market
Baltic construction market Source: Local national statistical offices Source: European Commission Directorate-General for Economic and Financial Affairs Marginal increase in construction prices, main impact due to labour force costs. No significant pressure on input prices expected as weak outlook
Slide 12: Housing market in Baltics
Housing market in Baltics Source: European Commission Directorate-General for Economic and Financial Affairs Source: Eurostat Demand remains for good quality and optimal price level residential premises in all Baltic capitals. Continuing positive macro development supported the residential marke
Slide 13: Future perspectives 2016+
Future perspectives 2016+ Leading regional construction company. Preferred general contractor to private clients and large projects. To distinguish with the best and most motivated specialist and construction managers, to be a reliable partner and hold a high standard of quality We believe that
Slide 14: Merko Group in brief
Merko Group in brief Wide scope of Home markets: Estonia, Latvia and Lithuania Share quoted on construction services: Nasdaq OMX • General construction Tallinn since 1997 • Engineering construction • Road construction • Real estate projects Competitive advantages: • Broad range of The largest listed
Slide 15: 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 road 141, 11314 Tallinn, Estonia Phone: +372 650 1250 group.merko.ee 15
Slide 16: 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