Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — Q1 2015 Earnings Presentation
17 slides from Merko Ehitus As's earnings presentation, May 2015
Slide 1: Merko Ehitus Group 3 months 2015
MERKO EHITUS GROUP 3 months 2015 May 2015
Slide 2: Agenda
Agenda 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 5. Group in brief 2 300 MW Estonia Power Plant of Eesti Energia
Slide 3: Merko group key highlights 3M 2015
Merko group key highlights 3M 2015 3M results in line with expectations and reflect the developments on the Baltic construction market started in 2014. Low level of orders and pressure on margins, which will continue to have an effect in 2015 and likely in 2016. Continuing revenue growth outsi
Slide 4: Merko group key financial highlights
Merko group key financial highlights EUR millions 3M 2015 3M 2014 Variance 2014 Revenue 45.6 48.9 -6.7% 252.3 Gross profit 3.6 3.9 -9.5% 24.7 Gross profit margin (%) 7.8 8.1 -3.0% 9.8 EBITDA 1.9 1.9 +0.7% 16.4 Profit before tax 0.8 1.1 -26.5% 13.3 Net profit, attr. to equity holders of the parent 0.
Slide 5: Revenues and gross profit 3M 2015
Revenues and gross profit 3M 2015 REVENUES Strong performance from Latvian and Lithuanian construction service (revenues up by 40.7% y-o-y) and real estate development segment (up by 7.6%). Decrease of Estonian construction service segment (down by 34.7%). No comparable amount of engineering pro
Slide 6: Real estate development - apartments
Real estate development - apartments Objective to keep the adequate level of inventory to meet the market demand, new project launch depending on market conditions at the time. 7.6% increase of revenues compared to 3M 2014. Mainly attributable to apartments sold in a more exclusive development pro
Slide 7: Secured Order Book
Secured Order Book The volume of new contracts reflects the situation in the construction market Secured order book 25.4% lower compared to same period last year. 3M 2015 new contracts signed EUR 22.4m vs EUR 48.6m in 3M 2014. Q1 2014 includes very large contracts signed in Estonia for the desig
Slide 8: Financial position
Financial position Group’s liquidity position maintained, cash at EUR 40.9m (31.03.2014: EUR 51.9m; 31.12.2014: EUR 51.6m). The net debt amounted to EUR -5.8m and debt ratio at 14.6% (31.03.2014: EUR -19.8m and 13.4%; 31.12.2014: EUR -13.9m and 15.1%). Group will start drawing more loans to su
Slide 9: Dividend and share capital reduction
Dividend and share capital reduction Dividend pay-out ratio according to long-term financial objectives: 50-70% of the annual profit. The AGM of shareholders decided to pay the shareholders the total amount of EUR 7.3 million as dividends (EUR 0.41 per share) in 2015. Additionally the AGM of s
Slide 10: Stock Exchange overview
Stock Exchange overview Market Cap EUR 159.5m +16.3% y-o-y No of % of total % of total Shareholders Variance shares 31.03.2015 31.12.2014 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 395 704 2,12% 2,12% 20 000 S
Slide 11: Baltic construction market
Baltic construction market Source: local statistical services Public sector orders at a modest level with regard to external networks. Commercial real estate development is limited by the lack of developers own equity and the weakened investment confidence. Development projects are optimised.
Slide 12: Housing market in Baltics
Housing market in Baltics Market calming, fast growth over last 3 years is ending Source: Eurostat Demand remains for good quality and optimal price level residential premises. Low interest rates. Apartment markets more active in Tallinn and Vilnius compared to Riga. 12
Slide 13: Outlook 2015-2016
Outlook 2015-2016 Orders not increasing and pricing competition tightening in Baltic construction market Focus for next year: private sector orders and apartment development + internal efficiency Private sector focus in general construction. Increased effort on design and built contracts with aim
Slide 14: Long term outlook
Long term outlook Long term outlook: the leading Baltic construction and development business Post 2015-2016 EU funds will support the increase in civil and public sector building orders. Strengthen our position as leading apartment developer in the Baltic. We develop modern and quality living e
Slide 15: Group in brief
Group in brief Operates in Wide scope of Estonia (68% of revenue), Share quoted on construction services: Latvia (27%), Lithuania (5%) Nasdaq OMX • General construction Tallinn since 1997 • Engineering construction • Road construction • Real estate projects Competitive advantages: • Broad range of T
Slide 16: 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 mnt. 141, 11314 Tallinn, Estonia Phone: +372 6501 250 group.merko.ee 16
Slide 17: 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