interim report january 1 –september 30, 2017...q3 2017 orders received sek 12.8 bn (12.6) order...
TRANSCRIPT
![Page 1: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/1.jpg)
Peter WågströmPresident and CEO
Mattias LundgrenCFO
Interim reportJanuary 1 – September 30, 2017
2017-10-26 NCC AB1
![Page 2: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/2.jpg)
NCC Q3 2017
Just Health Center, Helsinki
• Lower net sales in NCC Building • Impairment losses in NCC Infrastructure• Good earnings in NCC Industry • High order backlog
2017-10-26 NCC AB2
![Page 3: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/3.jpg)
Q3 2017
Orders received
SEK 12.8 BN (12.6)
Order backlog
SEK 52.2 BN (47.2)
Net sales
SEK 13.1 BN (13.6)
Profit after financial itemsSEK 365 M (471)
Hotel AtSix, Stockholm
2017-10-26 NCC AB3
![Page 4: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/4.jpg)
Orders received
SEK 40.7 BN (40.2)
Order backlog
SEK 52.2 BN (47.2)
Net sales
SEK 38.3 BN (36.4)
Profit after financial itemsSEK 1,169 M (711)
Hotel AtSix, Stockholm
January - September 2017
2017-10-26 NCC AB4
![Page 5: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/5.jpg)
Nordic construction market outlook
KMH, Stockholm
2017-10-26 NCC AB5
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Nordic construction market outlookHigher growth in construction volume than GDP 2017
2.2%
2.1%
2.5%2.3%
2.0%
5.3%
7.2%
3.9%
0
20
40
60
80
100
120
140
2015 2016 2017 2018
EUR BN
Construction output growth Nordic
GDP growth Nordic
Sweden
Denmark
Finland
Norway
Source: Euroconstruct and NCC
2017-10-26 NCC AB6
![Page 7: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/7.jpg)
Nordic construction market outlookConstruction volume by segment
1.8%
9.7%
14.5%
3.4%
2.0%
6.9% 5.7% 6.9%
2.2%
0.6%2.0%
2.1%
0
20
40
60
80
100
120
140
2015 2016 2017 2018
EUR BN
Civil engineering
Refurbishment (Building)
Source: Euroconstruct and NCC
New construction (Building)
2017-10-26 NCC AB7
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0%
2%
4%
6%
8%
2015 2016 2017 2018
Nordic construction market outlookMarket outlook – asphalt and stone material
Growth asphalt
Source: Euroconstruct and NCC
Growth stone material
2017-10-26 NCC AB8
![Page 9: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/9.jpg)
Novozymes, Denmark
NCC Building
2017-10-26 NCC AB9
![Page 10: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/10.jpg)
Sweden 56% (51)
Geographical distribution Jan. - Sep. 2017NCC Building
Orders received Net sales
Finland 22% (25)
Sweden 69% (69)
Norway 5% (6)
Denmark 12% (7)
Finland 14% (18)
Norway 8% (9)
Denmark 14% (15)
2017-10-26 NCC AB10
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Product mix Jan. - Sep. 2017NCC Building
Orders received Net sales
3%
3%
4%
6%
7%
8%
10%
21%
38%
Industry / Logistics
Retail
Public Buildings
Other
Health Care
Offices
Educational
Refurbishment /Conversion
Residential
2%
3%
7%
7%
8%
7%
8%
24%
34%
Retail
Industry / Logistics
Health Care
Other
Educational
Offices
Public Buildings
Refurbishment /Conversion
Residential (39)
(23)
(7)
(9)
(6)
(4)
(3)
(4)
(9)
(7)
(2)
(1)
(35)
(11)
(17)
(14)
(6)
(3)
2017-10-26 NCC AB11
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Higher order backlogNCC Building
0
5
10
15
20
25
30
35
Orders received Order backlog
Q3 2016 Q3 2017SEK BN
0
5
10
15
20
25
30
Orders received Net sales
2016 2017 R12SEK BN
2017-10-26 NCC AB12
![Page 13: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/13.jpg)
Project exampleFalkoner Center in Copenhagen
• Rebuilding and extension of the Falkoner Center,
• Customer: ATP Ejendomme• Order value: SEK 640 m
2017-10-26 NCC AB13
![Page 14: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/14.jpg)
Project example Kapellgärdet Arena property block in Uppsala
• 152 apartments• Customer: Bonava• Order value: SEK 250 m
2017-10-26 NCC AB14
![Page 15: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/15.jpg)
Project example Police station in Stockholm’s Rinkeby district
• Redevelopment of a residential building into a police station
• Customer: Familjebostäder• Order value: SEK 520 m
2017-10-26 NCC AB15
![Page 16: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/16.jpg)
NCC Infrastructure
Harbour, Norrtälje
2017-10-26 NCC AB16
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Geographical distribution Jan. - Sep. 2017NCC Infrastructure
Orders received Net sales
Sweden 75% (68)
Finland 2% (3)
Sweden 81% (80)
Norway 12% (12)
Denmark 5% (4)
Finland 2% (4) Norway 18% (23)
Denmark 5% (6)
2017-10-26 NCC AB17
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3%
5%
12%
13%
14%
24%
29%
Railways
Other
Energy & WaterTreatment
Industry
Operation andmaintenance
Roads
Groundworks
Product mix Jan. - Sep. 2017NCC Infrastructure
5%
9%
10%
15%
16%
17%
28%
Other
Railways
Operation andmaintenance
Energy & WaterTreatment
Roads
Industry
Groundworks
Orders received Net sales
(29)
(21)
(21)
(8)
(12)
(3)
(25)
(7)
(30)
(14)
(18)
(4)
(2) (6)
2017-10-26 NCC AB18
![Page 19: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/19.jpg)
Higher orders receivedNCC Infrastructure
02468
101214161820
Orders received Order backlog
Q3 2016 Q3 2017SEK BN
0
5
10
15
20
Orders received Net sales
2016 2017 R12SEK BN
2017-10-26 NCC AB19
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Project exampleRailway in consortium with Spain’s OHL
• New section of railway between Lund and Arlöv in Skåne, Sweden
• Customer: Swedish Transport Administration
• Order value: SEK 1 billion
Picture: Swedish Transport Administration
2017-10-26 NCC AB20
![Page 21: Interim report January 1 –September 30, 2017...Q3 2017 Orders received SEK 12.8 BN (12.6) Order backlog SEK 52.2 BN (47.2) Net sales SEK 13.1 BN (13.6) Profit after financial items](https://reader034.vdocuments.net/reader034/viewer/2022050302/5f6b24d7b2e5a372e01273df/html5/thumbnails/21.jpg)
Eysturoy tunnel and Sandoy tunnel, Faroe Islands
2017-10-26 NCC AB21
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• Two road tunnels in the Faroe Islands• Order value:
˗ First tunnel SEK 1.5 billion˗ Second tunnel SEK 1.2 billion
• Order for the first tunnel registered in NCC Infrastructure, fourth quarter 2016
2017-10-26 NCC AB22
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NCC Industry
2017-10-26 NCC AB23
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Increased stone volumes in Q3
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Stone material sold, thousands of tons
0
500
1,000
1,500
2,000
2,500
3,000
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Asphalt sold, thousands of tons
2017-10-26 NCC AB24
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Net sales Jan. - Sep. 2017NCC Industry
Product mix Geographical distribution
Stone material 23% (23)
Foundation 12% (9)
Asphalt and paving 65% (68)
Sweden 56% (55)
Norway 14% (14)
Denmark 18% (20)
Finland 12% (11)
2017-10-26 NCC AB25
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Torsplan, Stockholm
NCC Property Development
2017-10-26 NCC AB26
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Property market outlook – officesCBD
Source: Newsec, NCC
0% 2% 4% 6% 8% 10%
Oslo
Copenhagen
Helsinki
Stockholm Yield 2017 (F)
Vacancy rate 2017 (F)
Torsplan 2, Stockholm
2017-10-26 NCC AB27
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Property portfolioLeasable space, sqm, in ongoing or completed projects not recognized in profit
0
50,000
100,000
150,000
200,000
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Sweden
Norway
Denmark
Finland
No. of projects16
1514
14
18 17 18 19
16
1918
2017-10-26 NCC AB28
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1,800 sqm leased in the quarter Leased floor space, sqm*
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Remaining unlet area
Let during quarter
Previously let area
Let during quarter(% of available unletarea)
2017-10-26 NCC AB29
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Property portfolio
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Letting ratio
Completion ratio
2017-10-26 NCC AB30
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Mattias LundgrenCFO
Dome of Visions, Stockholm
2017-10-26 NCC AB31
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Income statement
SEK MJul.-Sep.
2017Jul.-Sep.
2016Oct.16-Sep. 17
Jan.-Dec. 2016
Net sales 13,102 13,572 54,809 52,934
Gross profit 935 1,026 4,734 4,450
Selling and administrative expenses -550 -542 -2,840 -2,912
Cost ratio 4.2% 4.0% 5.2% 5.5%
Other 5 19 7 -85
Operating profit 390 503 1,901 1,453
Financial items -25 -32 -101 -112
Profit after financial items 365 471 1,799 1,341
Tax -62 -84 -293 -225
Profit for the period 303 387 1,507 1,116Myllytie 4b, Helsinki
2017-10-26 NCC AB32
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Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3-3
-2
-1
0
1
2
3
4
5Cash flow before financing
Cash flow
SEK MJul.-Sep.
2017Jul.-Sep.
2016Jan.-Dec.
2016From operating activities 503 397 1,506
From property projects -268 345 506
From housing projects 0 0 -606
Other working capital 441 -788 -237
Investing activities -233 -59 -1,181
Cash flow before financing 443 -106 -11
SEK BN
R12
2017-10-26 NCC AB33
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SEK MJul.-Sep.
2017Jul.-Sep.
2016Jan.-Dec.
2016
NCC Building 116 1 489
NCC Infrastructure -65 3 162
NCC Industry 409 442 533
NCC Property Development -9 32 327
Other and eliminations -62 25 -57
Operating profit excl. Bonava (Housing) 390 503 1,453
Operating profit/loss per business area
Car park ”Skruven”, Stockholm
SEK MJul.-Sep.
2017Jul.-Sep.
2016NCC HQ and International proj. 12 54
Internal gains -10 -1
Other Group adjustment -64 -28
Other and eliminations -62 25
2017-10-26 NCC AB34
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0%
1%
2%
3%
4%
5%
0
1,500
3,000
4,500
6,000
7,500
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Net sales, SEK M
NCC BuildingOperating margin
SEK MJul.-Sep.
2017Jul.-Sep.
2016Oct. 16-Sep. 17
Jan.-Dec.2016
Net sales 5,346 6,033 24,576 25,681
Operating profit 116 1 584 489
Operating margin, % 2.2 0.0 2.4 1.9
2017-10-26 NCC AB35
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-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Net sales, SEK M
NCC InfrastructureOperating margin
SEK MJul.-Sep.
2017Jul.-Sep.
2016Oct. 16-Sep. 17
Jan.-Dec.2016
Net sales 4,472 3,986 17,820 17,007
Operating profit -65 3 55 162
Operating margin, % -1.5 0.1 0.3 1.0
2017-10-26 NCC AB36
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0%
2%
4%
6%
8%
10%
12%
14%
16%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3
Net sales, SEK M
NCC IndustryRoCE, R12
SEK MJul.-Sep.
2017Jul.-Sep.
2016Oct.16-Sep. 17
Jan.-Dec. 2016
Net sales 4,051 3,594 11,795 10,760
Operating profit 409 442 561 533
Operating margin, % 10.1 12.3 4.8 4.9
RoCE, % 12.7 13.5
2017-10-26 NCC AB37
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0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q30
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
Net sales, SEK M
NCC Property DevelopmentRoCE, R12
SEK MJul.-Sep.
2017Jul.-Sep.
2016Oct. 16-Sep. 17
Jan.-Dec. 2016
Net sales 168 781 4,017 2,823
Operating profit -9 32 852 327
Operating margin, % -5.1 4.1 21.2 11.6
RoCE, % 21.1 7.0
2017-10-26 NCC AB38
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Group financial objectives
Käppalaverket, Stockholm
2017-10-26 NCC AB39
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Operating margin
2.7%
3.5%
0%
1%
2%
3%
4%
5%
2016 Q3 2017, R12
Target ≥4%
2017-10-26 NCC AB40
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Revenue development
0
10,000
20,000
30,000
40,000
50,000
60,000
2015 2016 Q3 2017, R12
SEK M
3.2% (average annual growth 1.8%)
Objective: 5% average annualrevenue growth
2017-10-26 NCC AB41
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0%
5%
10%
15%
20%
25%
30%
2016 Q3 2017, R12
Return on shareholders' equity* Equity/asset ratio
Revaluation effect pensions
SEK -7 M
Equity/asset ratio and return on shareholders’ equity
Target ≥20%
*Return on equity is calculated basedon NCC’s earnings excluding Bonava
2017-10-26 NCC AB42
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Net indebtness
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2016 Q3 2017, R12
Restriction <2.5 timesnet indebtedness* / EBITDA
Times
* Excl. pension liability
2017-10-26 NCC AB43
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Gustavslund, Stockholm
2017-10-26 NCC AB44
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• Lower net sales and result in Q3• NCC Building and NCC Infrastructure
– focus on delivering on the order backlog• NCC Industry on track • NCC Property Development
– focus on project starts• High order backlog and favorable
market outlook
Summary
2017-10-26 NCC AB45
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2017-10-26 NCC AB46
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Contact information and calendar
Chief Financial OfficerMattias LundgrenTel: +46 (0)70-228 88 [email protected]
IR Manager Johan BergmanTel: +46 (0)70-354 80 [email protected]
Financial Calendar 201825 Jan. 2018 Year-end report 2017
11 Apr. 2018 Annual General Meeting
25 Apr. 2018 Interim report Jan. – Mar.
18 Jul. 2018 Interim report Jan. – Jun.
25 Oct. 2018 Interim report Jan. – Sep.
2017-10-26 NCC AB47