Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — Investor Presentation (December 2014)
23 slides from Merko Ehitus As's investor presentation, Dec 17, 2014
Slide 1: Merko Ehitus
MERKO EHITUS Construction, Engineering & Real Estate 17 December 2014 Dunross & Co AB
Slide 2: Agenda
Agenda 1. About the Group 2. Business Activities 3. 2013 and 9M 2014 Results 4. Market Outlook and Focus 2
Slide 3: Group In Brief
Group In Brief Construction services: • General construction • Engineering construction • Road construction Own developed real estate The largest listed projects Operates in construction company in the Estonia (81% of revenue), Baltics Latvia (17%), Lithuania (2%) 31.12.2013: Net Profit 2013: 860 em
Slide 4: Value Offering
Value Offering Integrated project management and general contracting service across the full life cycle of construction projects. From idea to planning to engineering design to site works to warranty: full responsibility to deliver the project. We mainly contract subcontractors, but also use own
Slide 5: Market
merko MARKET
Slide 6: Construction Market
merko Construction Market BUILDING MARKET VOLUMES (WITH OWN FORCES) IN THE BALTICSTATES in million euros 3612 1489 981 1142 2010 mEstonia SLatvia Lithuania 5652 5076 4488 ot0 4324 1821 1898 1729 1099 1491 2011 2012 2013 9M 2014
Slide 7: Real Estate Market
fod Real Estate Market House price index (2010=100) 2006 2007 2008 2009 2010 2011 2012 2013 2014 Estonia Latvia Lithuania EU
Slide 8: Business Activities
merko BUSINESS ACTIVITIES
Slide 9: General Construction
General Construction Construction of buildings and facilities 33% of 2013 revenues (+40% y-o-y), 47% of 9M 2014 Decrease since 2009 (2009: 43% of total revenues) due to increasing share of infra projects, however this is changing yet again Markets: Tondiraba Ice Arena, 2014 9
Slide 10: Civil Engineering
Civil Engineering Infrastructure and engineering projects. Including water, environmental and electrical projects. 36% of 2013 revenues ( -17% y-o-y), 25% of 9M 2014 EU funding is key Markets: Partial renovation of switchgear of Paide 10 330kW substation, 2013
Slide 11: Road Construction
Road Construction Road construction and long-term road maintenance contracts 19% of 2013 revenues (+10% y-o-y), 13% of 9M 2014 EU funding is key Since 2010 large scale projects Market: Reconstruction of Ülemiste traffic junction, 2013 11
Slide 12: Real Estate Development
Real Estate Development Own development of residential apartments Merko has become the flagship of Baltics residential development 12% of 2013 revenues (+14% y-o-y), 15% of 9M 2014 2009-2011 downturn years Markets: Skanstes virsotnes apartment buildings, several phases 2006-2013 12
Slide 13: 2014 Largest Projects In Progress Estonia
2014 Largest Projects In Progress Estonia Own development Kentmanni apartment building Hilton Hotel (2015): €31.2 mln (2014): €28 mln Design and renovation of the infrastructure of Tondiraba Ice Arena (2014): €21.7 mln Tallinn tram line no. 4 (2015): €26 mln, consortium 13 13
Slide 14: 2014 Largest Projects In Progress Latvia
2014 Largest Projects In Progress Latvia Liepaja Concert Hall (2015): €28.3 mln Polipaks manufacturing and logistics center (2015): €17.8 mln Valmiera’s Professional School (2015): €5.9 mln Riga State Technical School (2015): €4.8 mln 14 14
Slide 15: 2014 Largest Projects In Progress Lithuania
2014 Largest Projects In Progress Lithuania Vilnius and Kaunas train terminals (2014): €3.6mln Own development: Fizikų, 108 apartments (started in 2014) Civil construction works of Nordbalt HVDC converter station in Vilnius Balsiai Secondary School – PPP (2011–2035) Klaipeda district (2015): €6.0mln
Slide 16: 2013 and 9M 2014 Results
merko 2013 AND 9M 2014 RESULTS
Slide 17: 2013 and 9M 2014: Key Highlights
2013 and 9M 2014: Key Highlights EUR millions 2013 2012 Var 9M 9M Var 2014 2013 Revenue 262.7 249.1 +5.5% 182.2 197.8 -7.9% Gross profit 22.7 17.9 +26.8% 16.3 17.4 -6.3% Gross profit margin, % 8.6 7.2 +19.4% 8.9 8.8 +1.1% EBITDA 15.1 11.4 +32.5% 10.2 11.6 -12.1% Net profit, attributable to equity ho
Slide 18: Stock Exchange overview
Stock Exchange overview No of % of total % of total Shareholders Variance shares 30.09.2014 30.06.2014 AS Riverito (management) 12 742 686 71,99% 71,99% - ING Luxembourg S.A. AIF Account 974 126 5,50% 5,50% - Skandinaviska Enskilda Banken S.A. 469 378 2,65% 2,71% -10 149 Firebird Republics Fund Ltd
Slide 19: Market Outlook and Focus
merko MARKET OUTLOOK AND FOCUS
Slide 20: Market outlook
Market outlook Construction market • A decrease in construction volumes. • Uncertainties around allocation of EU funds by sectors and projects. – Estonia, growth of EUR 2.5 billion to EUR 5.9 billion; – Latvia, contraction of EUR 0.1 billion to EUR 5.6 billion; – Lithuania, growth of EUR 1.8 billion
Slide 21: Focus going forward
Focus going forward • Key challenge to increase and also keep the 2013 level of secured order book. • Active positioning in residential real- estate. • Closely following the developments in the nearby markets and new opportunities. Aim to identify non-Baltic revenue potential at acceptable risk leve
Slide 22: 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 www.group.merko.ee 22
Slide 23: 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