Q1 2020 Presentation - NCCApr 28, 2020 · Q1 2018 Q1 2019 Q1 2020 9 Stronger underlying earnings...
29
1 Q1 2020 Presentation 2020-04-28
Transcript of Q1 2020 Presentation - NCCApr 28, 2020 · Q1 2018 Q1 2019 Q1 2020 9 Stronger underlying earnings...
1
Q1 2020 Presentation
2020-04-28
2
Tomas CarlssonCEO
2020-04-28
2020-04-283
• Good orders received• Strong cash flow with 1 bn SEK from operating activities• Earnings up from last year
• Seasonally low activity
Strong cashflow and continuedimprovements
2020-04-284
• To date no material negative impact on the group• High activity in all projects due to effective workarounds of
local challenges• Limited impact from‒ Travel restrictions cross-borders and in-country. Some initial
problems in Norway‒ Supply chain problems and delays
• Sick leave on manageable levels
NCC and the coronavirus
2020-04-285
Strong orders receivedContributions from all business areas
17,5
21
13,8
34
12,7
38
17,7
50
15,5
01
16,0
70
12,7
69
13,7
08
15,4
58
0
5,000
10,000
15,000
20,000
25,000
Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020
SEK M
6
Order backlog strongAll BAs building order backlog
58,8
51
58,7
41
56,5
87
56,8
37
61,3
70
63,0
27
61,6
58
57,8
00
62,3
33
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020
2020-04-28
7
Net Sales on par with last year
SEK M
2020-04-28
10,8
94
14,3
49
14,2
69
17,8
32
11,4
34
14,6
10
13,9
51
18,2
39
11,7
66
0
5,000
10,000
15,000
20,000
25,000
Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020
8
Earnings up in seasonally low quarterPD but also Building Nordics and Infrastructure contributing
2020-04-28
-364 -352 -69
-500
-400
-300
-200
-100
0
100
200
300
400
500
Q1 2018 Q1 2019 Q1 2020
Operating margin
-3.1%
-0.6%Q12020
SEK M
Q12019
-301 -238 -201
-400
-300
-200
-100
0
100
200
300
400
Q1 2018 Q1 2019 Q1 2020
9
Stronger underlying earnings
SEK M
16
-20
323
-400
-300
-200
-100
0
100
200
300
400
Q1 2018 Q1 2019 Q1 2020
BA Property Development
2020-04-28
SEK M
BA Infrastructure, Building Sweden,Building Nordics & Industry
10
Maintained low accident frequency level
2020-04-28
407
315
300
241
202
246
204
257
176
172
14.4
10.9 10.6
8.17.2
8.8
7.5
9.5
7.0 7.0
0
2
4
6
8
10
12
14
16
0
100
200
300
400
500
2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020
LTIF Group 1 DayR12 Q1 2020
Number of accidents LTIF 1 Day R12
2020-04-2811
• Divestment taking longer than expected• Independent legal structure in place• Turnaround activities continues• Prudent tendering
Road Services
12
Susanne LithanderCFO
2020-04-28
13
NCC InfrastructureFifth quarter with improved earnings compared to previous year
Q1 R12, Apr-Mar Jan-Dec
SEK M 2020 2019 2019/2020 2019
Orders received 4,415 4,840 16,176 16,601
Order backlog 20,775 22,460 20,775 20,389
Net sales 3,791 3,649 17,567 17,425
EBIT 39 8 243 212
EBIT margin, % 1.0 0.2 1.4 1.2
NCC Road Services
Orders received 499 849 1,267 1,617
Order backlog 2,831 4,013 2,831 2,816
Net sales 427 662 2,389 2,624
EBIT -14 -5 11 20
2020-04-28
Sweden71% (74)
Denmark8% (7)
Norway21% (19)
Net Sales
14
NCC Building SwedenEarnings stable – two large healthcare projects in orders received
Q1 R12, Apr-Mar Jan-Dec
SEK M 2020 2019 2019/2020 2019
Orders received 4,458 2,579 14,620 12,741
Order backlog 17,630 17,619 17,630 16,561
Net sales 3,384 3,669 14,567 14,851
EBIT 87 110 341 364
EBIT margin, % 2.6 3.0 2.3 2.5
2020-04-28
15
NCC Building NordicsImproved earnings and a strong order backlog
Q1 R12, Apr-Mar Jan-Dec
SEK M 2020 2019 2019/2020 2019
Orders received 3,247 4,187 15,141 16,080
Order backlog 16,916 13,132 16,916 15,807
Net sales 2,856 2,567 12,057 11,769
EBIT 50 34 247 231
EBIT margin, % 1.7 1.3 2.1 2.0
2020-04-28
Denmark33% (34)
Norway14% (16)
Finland53% (50)
Net Sales
16
NCC IndustrySeasonally low activity – stable compared to last year
Q1 R12, Apr-Mar Jan-Dec
SEK M 2020 2019 2019/2020 2019
Orders received 3,412 3,372 12,893 12,852
Order backlog 5,098 5,188 5,098 2,967
Net sales 1,314 1,265 13,020 12,971
EBIT -362 -385 534 511
Operating margin % -27.6 -30.5 4.1 3.9
ROCE % 9.3 9.0
2020-04-28
Sweden60 (62)%
Denmark 23
(24)%
Norway13 (12)%
Finland4 (2)%
Net Sales
2020-04-2817
NCC Industry: Stone and asphalt volumesBoth stone material and asphalt volumes up compared to previous years
5,30
6
9,08
3
7,34
7
7,53
9
5,21
6
7,99
9
7,88
0
7,24
4
6,07
80
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Stone material sold, thousands of tons
105
2,06
3
2,46
0
1,78
8
166
1,90
4
2,51
8
1,51
2
176
0
500
1,000
1,500
2,000
2,500
3,000
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Asphalt sold, thousands of tons
2020-04-2818
NCC Property DevelopmentDivestment of K12 in Sweden
Q1 R12, Apr-Mar Jan-Dec
SEK M 2020 2019 2019/2020 2019
Net sales 1,577 411 4,222 3,056
Operating profit/loss 323 -20 655 313
Capital employed 4,624 4,746 4,624 4,935
EBIT margin % 20.5 -4.8 15.5 10.2
ROCE % 12.7 6.2
2020-01-30 NCC AB19
One new project started in Q1HQ for Fiskars in Finland – project ”Next”
0
50,000
100,000
150,000
200,000
250,000
300,000
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
SwedenNorwayDenmarkFinland
1515
19
17 17
2118
1821
No. of projectsLettable space, sqm
2020-04-2820
Letting on normal levelsLetting agreements signed also post-corona in start of Q2
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
0
50,000
100,000
150,000
200,000
250,000
300,000
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter(% of available unlet area)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
2020-04-2821
Letting and completion status in theproperty portfolio
Letting ratio
Completion ratio
22
EarningsQ1 R12, Apr-Mar Jan-Dec
SEK M 2020 2019 2019/2020 2019
Earnings in segments (all BAs) 122 -258 2,030 1,651NCC HQ and other group adjustments -45 -54 -195 -204
Internal gains 1 -11 -12 -24
Other Group Adjustments -147 -29 -243 -126
Other & Eliminations total -191 -94 -450 -355
EBIT -69 -352 1,580 1,296
Financial items -21 -18 -116 -112
EBT -90 -370 1,464 1,184
Tax 6 57 -359 -309
Profit for the period -84 -314 1,105 875
2020-04-28
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q1 2020-3
-2
-1
0
1
2
3
4
Cash flow before financing
Strong cashflow
Q1R12,
Apr-Mar Jan-Dec
SEK M 2020 2019 2019/2020 2019
From operatingactivities 34 -216 3,023 2,774
From propertyprojects 296 -209 -660 -1,165
Other workingcapital 673 478 800 605
Investingactivities 15 -194 -493 -701
Cash flowbeforefinancing
1,018 -140 2,670 1,512
SEK BnR12
23 2020-04-28
-2,304-3,195
-1,875
-2,153-665
874
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
2019 Q1 2020 Q1
Corporate net debtLeasing liabilities (incl IFRS 16)Pension liability
24
Net debt per March 31
N/AR12
Net debt* / EBITDA
*Corporate net debt excludingpension liabilities and leasingliabilities according to IFRS16Leasing**Corporate net debt/EBITDA is-0.39
2020-04-28
**
25
Tomas CarlssonCEO
2020-04-28
2020-04-2826
• To date no material impact on group level
• Future impact difficult to assess
• Construction industry trails GDP development with some mitigation
NCC and corona
2020-04-2827
• Good orders received• Strong cash flow with 1 bn SEK from operating activities• Earnings up from last year
• Seasonally low activity
Strong cashflow and continuedimprovements
2020-04-2828
• Good orders received• Strong cash flow with 1 bn SEK from operating activities• Earnings up from last year
• Seasonally low activity
• Improvement process showing results throughout the business• Corona impact difficult to assess
NCC: On the right track in Q1
29 2020-04-28
