Slide 1: AS Merko Ehitus 3 months 2017 interim report
AS MERKO EHITUS 3 months 2017 interim report 11 May 2017 Paepargi development area in Tallinn
Slide 2: Agenda
Agenda ELKE Auto Narva car center 1. Key highlights 2. Business review 3. Financial position 4. Market outlook 2
Slide 3: Merko group key highlights
Merko group key highlights Revenue EUR 58m in 3M up approx. 25% compared to 2016, in line with management expectations. Strong apartment sales in Q1. As expected growth in revenues from general construction projects in Estonian construction service segment. Profitability's from the construct
Slide 4: Merko group key financial highlights
Merko group key financial highlights EUR million 3M 2017 3M 2016 Variance 12M 2016 Revenue 58.1 46.8 +24.2% 252.0 EBITDA 1.9 1.2 +60.8% 11.2 EBITDA margin (%) 3.3 2.5 +29.5% 4.4 Operating profit 1.3 0.5 +159.6% 7.7 Operating profit margin (%) 2.2 1.0 +109.0% 3.1 Profit before tax 1.1 0.3 +261.7% 7.3
Slide 5: Business review 3M 2017
Business review 3M 2017 The growth in general construction and apartment sales allowed us to increase revenue from last year's level, but profitability from construction sector remains under pressure. The construction services revenue has been in line with managements expectations as several lar
Slide 6: Real estate development - apartments
Real estate development - apartments Demand stabilising in Tallinn and Vilnius, demand still slower in Riga. 141 (incl. 11 in joint venture) apartments sold in 3M (3M 2016: 101) for EUR 16.3m (3M 2016: EUR 11.4m). Construction of 408 apartments launched during 3M 2017 (3M 2016: 90) and invested
Slide 7: Secured Order Book
Secured Order Book Secured order book at EUR 288m (31.03.2016: EUR 243m). Level of new contracts in Latvia and Lithuania perceivably better than a year ago. Total new contracts signed 3M 2017 EUR 59m (3M 2016: EUR 22m; 12M 2016: EUR 202m), incl. a contract with Kodusadam OÜ, a joint venture, for
Slide 8: Financial position
Financial position Liquidity position maintained strong, cash at EUR 34m (31.03.2016: EUR 34m). Net debt amounted to EUR 7m and debt ratio at 18% (31.03.2016: EUR -8m and 13%). Group is self-funding a large proportion of its own development projects construction activities and has not used any o
Slide 9: Dividends approved at AGM in April
Dividends approved at AGM in April The AGM of shareholders approved to pay the shareholders the total amount of EUR 7.3m as dividends (EUR 0.41 per share) in 2017. 2016 dividend rate of 119% and yield* 4.5%. Dividend payment will be made on 26 May 2017. To pay in excess of the financial targ
Slide 10: Stock Exchange overview
Stock Exchange overview Market Cap EUR 158.6m (31.12.2016: EUR 160.3m) -1.0% during 3M No of % of total % of total Shareholders Variance shares 31.03.2017 31.12.2016 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's construction market
Baltic’s construction market Source: Local national statistical offices Source: Local national statistical offices Volumes of construction orders has continued to be at a low, for both infrastructure and in public procurements. We expect large road contruction and infrastructure procurements in Es
Slide 12: Housing market in Baltics
Housing market in Baltics Source: European Commission Directorate-General for Economic and Financial Affairs Source: Eurostat In 2016 apartment market continued to stabilise in Tallinn and Vilnius and the trend is expected to continue. Riga’s apartment market still less active, but with gradual in
Slide 13: Future perspectives for 2017+
Future perspectives for 2017+ Estonian construction service Internal efficiency Road and other infrastructure tenders Close cooperation with private customers Other home markets construction service Continue search for growth outside Estonia In Latvia active participation in both private a
Slide 14: Merko Group in brief
Merko Group in brief Wide scope of Home markets: Estonia, Latvia, Lithuania and Share quoted on construction services: Norway Nasdaq OMX • General construction Tallinn since 1997 • Engineering construction • Road construction • Real estate projects Competitive advantages: • Broad range of The larges
Slide 15: Contacts
Contacts Andres Trink Signe Kukin Chief Executive Officer Chief Financial Officer andres.trink@merko.ee 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