Ncc Ab Class A · OMXSTO:NCC_A
Ncc Ab Class A — Q2 2020 Earnings Presentation
28 slides from Ncc Ab Class A's earnings presentation, Jul 17, 2020
Slide 1: Q2 2020
Q2 2020 Horisonten, Aalborg 1 2020-07-17 NCC AB
Slide 2: Tomas Carlsson, CEO
Tomas Carlsson CEO 2 2020-07-17 NCC AB
Slide 3: Improved profitability – Q2 and H1
Improved profitability – Q2 and H1 • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden ‒ 3.4 bn order in Denmark 2019 in comparison • Orders received in first half significantly higher than net sales • Orde
Slide 4: Market update
Market update • Ongoing projects not impacted by coronacrisis to date • Longterm effects from economic downturn still hard to assess – no material negative effects to date • Property market outlook has some uncertainty – letting resumed in June but long term effects to be monitored 4 2020-07-17 NCC
Slide 5: Divestment Road Services
Divestment Road Services • Road Services Denmark divested to Arkil • Road Services Sweden and Finland divested to Mutares • Expected to close in Q3 ‒ Combined: No earnings effect and marginally positive effect on cashflow • Road Services Norway will remain and be reported as part of BA Infrastructur
Slide 6: Orders received
Orders received 3.4 bn residential orders in Denmark in Q2/19 SEK M 20,000 15,000 10,000 5,000 17,521 13,834 12,738 17,750 15,501 16,070 12,769 13,708 15,458 12,730 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 6 2020-07-17 NCC AB
Slide 7: Residential orders received - NCC
Residential orders received - NCC SEK M 5,000 4,000 3,000 2,000 1,000 1,059 2,239 1,249 1,215 1,045 4,561 2,022 1,263 1,256 1,524 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Orders received residential NCC average 7 2020-07-17 NCC AB
Slide 8: Order backlog
Order backlog Remains strong in all business areas SEK M 70,000 60,000 50,000 40,000 30,000 20,000 58,851 58,741 56,587 56,837 61,370 63,027 61,658 57,800 62,333 59,486 10,000 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 8 2020-07-17 NCC AB
Slide 9: Net Sales
Net Sales On par with previous years SEK M 20,000 15,000 10,000 5,000 10,894 14,349 14,269 17,832 14,610 13,951 18,239 14,431 11,434 11,766 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 9 2020-07-17 NCC AB
Slide 10: Operating profit
Operating profit Earnings and margin improving SEK M 500 Operating margin 400 Q2 2019 2.8% Q2 2020 3.3% 300 200 100 452 411 483 0 Q2 2018 Q2 2019 Q2 2020 10 2020-07-17 NCC AB
Slide 11: Strong focus on reducing serious accidents
Strong focus on reducing serious accidents 500 16 14.4 LTIF Group 1 Day R12 Q1/Q2 2020 14 400 407 12 10.9 10.6 9.5 10 300 315 8.8 300 8.1 7.5 7.5 8 7.2 7.0 7.0 257 241 246 200 202 204 6 185 176 172 4 100 2 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 Q2 2020 Number of accidents LTIF 1 Da
Slide 12: Susanne Lithander, CFO
Susanne Lithander CFO 12 2020-07-17 NCC AB
Slide 13: NCC Infrastructure
NCC Infrastructure Consistent improvement – normal variation in orders received R12 Q2 Jan-Jun Jul-Jun Jan-Dec Net Sales SEK M 2020 2019 2020 2019 2019/2020 2019 19% (19) Orders received 3,015 3,428 7,431 8,267 15,764 16,601 7% (6) Order backlog 19,219 21,770 19,219 21,770 19,219 20,389 Net sales 4,
Slide 14: NCC Building Sweden
NCC Building Sweden Improved earnings and strong orders received R12 Q2 Jan-Jun Jul-Jun Jan-Dec SEK M 2020 2019 2020 2019 2019/2020 2019 Orders received 3,729 2,368 8,187 4,947 15,981 12,741 Order backlog 17,898 16,261 17,898 16,261 17,898 16,561 Net sales 3,464 3,726 6,849 7,394 14,306 14,851 EBIT
Slide 15: NCC Building Sweden
NCC Building Sweden Residential orders received above average – >70% rentals in 2020 1,600 1,400 1,200 1,000 800 600 400 1,432 1,237 1,066 200 320 552 765 971 813 435 211 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Orders received residential Average 15 2020-07-17 NCC AB
Slide 16: NCC Building Nordics
NCC Building Nordics Improved earnings – Q2/19 had 3.4 bn SEK residential orders in Denmark R12 Q2 Jan-Jun Jul-Jun Jan-Dec Net Sales SEK M 2020 2019 2020 2019 2019/2020 2019 52% Orders received 2,179 6,210 5,426 10,396 11,110 16,080 (52) Order backlog 15,178 16,738 15,178 16,738 15,178 15,807 14% Ne
Slide 17: NCC Industry: Stone and asphalt volumes
NCC Industry: Stone and asphalt volumes Volumes on par with last year Stone material sold, thousands of tons Asphalt sold, thousands of tons 10,000 3,000 9,000 8,000 2,500 7,000 2,000 6,000 5,000 1,500 4,000 1,000 3,000 2,000 1,935 500 2,063 2,460 1,788 1,904 2,518 1,512 5,306 9,083 7,347 7,539 5,21
Slide 18: NCC Industry
NCC Industry Change in bitumen price impacts net sales and earnings R12 Q2 Jan-Jun Jul-Jun Jan-Dec Net Sales SEK M 2020 2019 2020 2019 2019/2020 2019 8% (7) 14% Orders received 3,677 3,991 7,089 7,362 12,579 12,852 (17) 20% Order backlog 5,119 5,487 5,119 5,487 5,119 2,967 (20) Net sales 3,554 3,721
Slide 19: NCC Property Development
NCC Property Development Two projects in Finland recognized in profit R12 Q2 Jan-Jun Jul-Jun Jan-Dec SEK M 2020 2019 2020 2019 2019/2020 2019 Net sales 679 321 2,255 732 4,580 3,056 EBIT 68 40 391 21 683 313 Capital employed 5,337 5,534 5,337 5,534 5,337 4,935 EBIT margin % 10.1 12.5 17.3 2.9 14.9 1
Slide 20: One new project started in Q2
One new project started in Q2 Project ”Bettorp” in Sweden Lettable space, sqm 300,000 19 250,000 15 17 17 15 14 18 200,000 21 21 18 150,000 100,000 Finland 50,000 Norway Denmark Sweden 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2019 2020 20 2020-07-17 NCC AB
Slide 21: Letting on normal levels
Letting on normal levels Letting resumed towards the end of the quarter 300,000 50% 250,000 40% 200,000 30% 150,000 20% 100,000 50,000 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter (% of available u
Slide 22: Letting and completion status
Letting and completion status Letting higher than completion ratio in the property portfolio 100% 90% 80% 70% 60% Letting ratio 50% Completion ratio 40% 30% 20% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 22 2020-07-17 NCC AB
Slide 23: Earnings
Earnings R12 Q2 Jan-Jun Jul-Jun Jan-Dec SEK M 2020 2019 2020 2019 2019/2020 2019 Earnings in segments (all BAs) 574 571 696 313 2,034 1,651 NCC HQ and other group adjustments -47 -94 -92 -140 -156 -204 Internal gains -18 -44 -17 -55 14 -24 Other Group Adjustments -26 -22 -173 -59 -240 -126 Other & E
Slide 24: Strong cashflow
Strong cashflow SEK Bn 4 R12 Q2 Jan-Jun Jul-Jun Jan-Dec 3 SEK M 2020 2019 2020 2019 2019/2020 2019 2 From operating 753 595 787 379 3,181 2,774 activities 1 From property -259 -591 37 -800 -329 -1,165 projects 0 Other working -982 -892 -309 -414 710 605 capital -1 Investing -116 -221 -101 -415 -388
Slide 25: Net debt per June 30 – corporate net cash
Net debt per June 30 – corporate net cash 1,000 ** 73 0 -1,000 -2,369 Net debt* / EBITDA -3,048 -2,000 R12 N/A** -3,000 -1,894 -4,000 -2,226 -5,000 Corporate net debt *Corporate net debt excluding pension liabilities and leasing liabilities according to IFRS16 Leasing -2,089 Leasing liabilities (inc
Slide 26: Tomas Carlsson, CEO
Tomas Carlsson CEO 26 2020-07-17 NCC AB
Slide 27: Comment Q2
Comment Q2 • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden ‒ 3.4 bn order in Denmark 2019 in comparison • Orders received in first half significantly higher than net sales • Order backlog remains strong
Slide 28: NCC AB
28 2020-07-17 NCC AB