Merko Ehitus As · OMXTSE:MRK1T
Merko Ehitus As — AS Merko Ehitus — Shareholder Meeting (May 2019)
20 slides from Merko Ehitus As's shareholder meeting presentation, May 8, 2019
Slide 1: AS Merko Ehitus Annual General Meeting of Shareholders
AS MERKO EHITUS Annual General Meeting of Shareholders Tallink City Hotel, Tallinn 8 May 2019
Slide 2: Agenda
Agenda 1. Approval of the annual report of the year 2018 and overview of the economic results and outlook 2. Decision on distribution of profits Uus-Veerenni residential development area, Tallinn (2019)
Slide 3: 1. Approval of the annual report of 2018 and overview of economic results and outlook
Rinktines Urban 1st stage residential development in Vilnius 1. Approval of the annual report of the year 2018 and overview of the economic results and outlook
Slide 4: Group's Markets and Business Areas 2018
Group’s Markets and Business Areas 2018 Regional general contracting and real estate developing company Norway • Renovation works, building construction Estonia • Buildings, facilities, electrical and road construction, concrete works • Real estate development • Among Top 2 in construction companies
Slide 5: Continued growth in 2018 revenue. Largest increase in Latvia
Continued growth in 2018 revenue. Largest increase in Latvia 48% of revenue from Estonia and 52% from other markets DISTRIBUTION OF GROUP REVENUE BY GEOGRAPHICAL LOCATION 418 in million euros 318 252 251 252 191 203 171 178 158 157 69 65 80 45 35 47 13 28 25 12 11 4 2014 2015 2016 2017 2018 Estonia
Slide 6: 2018 profitability of main operations retained...
2018 profitability of main operations retained... ...but also retained high risk in building for clients NET PROFIT in million euros ❑ Net profit grew at the same pace as revenue. 2018 19,3 In 2017 net profit was supported by one-time sales transactions, in 2018 by lower corporate 2017 14,7 income t
Slide 7: 2018 revenue and profit in annual context
2018 revenue and profit in annual context Largest revenue in history, largest net profit in 11 years GROUP REVENUE AND NET PROFIT in million euros (different scales) 418 400 352 40 318 34,8 297 249 263 252 251 252 300 30 203 219 19,1 172 19,3 200 14,7 20 12,4 10,4 10,0 100 7,4 7,6 6,1 10 1,2 0 0 200
Slide 8: EUR 246m of new construction contracts
EUR 246m of new construction contracts Secured order book EUR 229m 2018 LARGEST SIGNED CONTRACTS SECURED ORDER BOOK in million euros in million euros 344 Lidl logistics centre in Riga 43 Construction contract 270 335 247 246 5 year maintenance and repair 26 179 247 202 229 works of Tallinn’s roads a
Slide 9: Examples of projects completed in 2018
Examples of projects completed in 2018 T1 shopping centre in Tallinn “Öpiku maja” second office building in Tallinn Hotel and office complex in Vilnius Multifunctional building in Riga
Slide 10: In 2019, group companies have many large objects ongoing and in final stages
In 2019, group companies have many large objects ongoing and in final stages Akropole centre in Riga (2019) Quadrum office building in Vilnius (2019) Pärnu road 186 commercial building in Tallinn (2020) Alfa shopping centre expansion in Riga (2019) Z-Towers multifunctional centre in Riga (2019)
Slide 11: In 2018 more than 1000 new apartments launched
In 2018 more than 1000 new apartments launched Apartment development – group’s central business line NUMBER OF APARTMENTS SOLD AND LAUNCHED APARTMENTS LAUNCHED BY GEOGRAPHICAL LOCATION pcs pcs 1032 1 032 550 574 574 496 496 98 369 52 344 120 369 192 344 66 96 86 493 482 395 403 392 424 303 258 280 2
Slide 12: Examples of residential development projects in construction
Examples of residential development projects in construction Rand urban villas, Tallinn: 31 apts (2019) Basteja Life, Vilnius: 77 apts (2019) Rinktines Urban 2nd stage, Vilnius: 187 apts (2020) Uus-Veerenni residential area 1st stage, Tallinn: 137 apts (2019) Tähepargi 1st & 2nd stage, Tartu: 45 apt
Slide 13: Construction market developments
Construction market developments Less orders, but market activity remains reasonable. Countries differ in development. Sub-contractor resource problem to decrease, strong main contractor competition remains. ❑ Economic growth forecast ca 3% CONSTRUCTION MARKET VOLUMES (WITH OWN FORCES) IN THE BALTIC
Slide 14: How do we see the residential real estate market?
How do we see the residential real estate market? Towards stabilization ❑ Developments and expectations largely the same as last year ❑ Overall sentiment of residential market NEW AND ALL (dotted line) DWELLINGS HOUSE PRICE INDEX remains good, bank financing for (2013=100) apartment purchase remains
Slide 15: Merko Ehitus Strategic Directions
Merko Ehitus Strategic Directions Focus on apartment development and construction activity profitability ❑ Focus on current home markets Construction for client: ❑ Finalization of large objects and managing risks ❑ Preferred partner for private customers who value reliability and quality ❑ Selective
Slide 16: Thank you!
merko Thank you!
Slide 17: 2. Decision on distribution of profits
Extension to Tallinn air traffic control complex 2. Decision on distribution of profits
Slide 18: Proposal for distribution of profits
Proposal for distribution of profits The Supervisory Board proposes to: I. approve the net profit for the financial year 2018 as EUR 19,342,762; II. pay the shareholders the total amount of EUR 17,700,000 as dividends from net profit brought forward, which totals to EUR 1.00 per share; ❑ shareholder
Slide 19: 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
Slide 20: merko
merko