Year-end report January 1 December 31, 2015

Transcription

1 Year-end report January 1 December 31, Peter Wågström President and CEO NCC Ann-Sofie Danielsson Skånegatan, Gothenburg 1

2 Q4 in brief Orders received SEK 20.4 BN (18.5) Order backlog SEK 56.6 BN (54.8) Net sales SEK 22.4 BN (18.8) Profit after financial items SEK 1,562 M (1,017) Linköping, Universitetssjukhus 2

3 in brief Orders received SEK 62.5 BN (61.4) Order backlog SEK 56.6 BN (54.8) Net sales SEK 62.5 BN (56.9) Profit after financial items SEK 2,656 M (2,234) Refurbishment, Postgården, Copenhagen 3

4 Financial objectives Outcome Return on shareholders equity after tax 20% 26% Indebtedness net debt restriction 1.5 times equity 0.5 times 4

5 Dividend proposal Distribute NCC Housing in accordance with the rules of Lex ASEA Cash dividend of SEK 3.00 per share for, record date November 7 Friedenstrasse, Leonberg 5

6 Trends in Nordic construction market Sweden Strong market in general in all segments Norway Strong market in infrastructure Denmark Growth in Copenhagen and Aarhus residential and other buildings, energy renovation Finland Challenging market Cirkus, Skandiascenen, Stockholm 6

7 Order backlog increased in Q4 NCC Construction SEK BN Q Orders received, quarter Order backlog Orders received R12 Net sales, R12 Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 7

8 Stable mix in the portfolio NCC Construction Project size, orders received Total SEK 12.9 BN SEK < 5 M SEK 5-10 M SEK M SEK M SEK M SEK M SEK > 300 M 5% 5% 6% 4% 8% 9% 9% 10% 16% 13% 22% 25% Q4 Q % 34% Project size, order backlog Total SEK 36.3 BN 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 SEK M < >300 8

9 Geographical distribution Orders received, NCC Construction SEK M 8,000 Q Q4 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Sweden Denmark Finland Norway 9

10 Good order intake in other buildings Orders received, NCC Construction SEK M 7,000 Q Q4 6,000 5,000 4,000 3,000 2,000 1,000 0 Civil engineering Residential Other buildings 10

11 A selection of construction projects in Q4 Refurbishment of 493 town houses in Albertslund, Denmark SEK 610 M Children s hospital, Göteborg SEK 1 BN School, research, and hospital building in Turku University, Finland SEK 560 M Development and upgrading of Alcoa quay, Mosjøen, Norway SEK 200 M 11

12 Passive house Kiruna 12

13 Passive house Kiruna 13

14 Trends in stone material, asphalt and road service The Nordic market Stone material Favorable demand Growing construction market Strong in Stockholm and Gothenburg Asphalt Favorable demand Weather Road service Stable demand Intense competition Rydbokrossen 14

15 Slightly lower volume of stone material Volumes of stone material sold, thousands of tons 28,272 27,506 Q4 7,650 Q4 7, Ohkola quarry, Finland 15

16 Stable asphalt volumes Volumes of asphalt sold, thousands of tons 6,216 6,139 Q4 1,572 Q4 1,

17 Trends in residential markets Private customers Favorable market in general Prices in Sweden are flattening Strong German market Finland challenging but good demand for small appartments Investor markets Strong demand for investor packages in Germany, Sweden and Finland Folkboende, Munkedal 17

18 Higher sales to investors No. of housing units sold 2,253 2,299 Investor packages St. Petersburg Baltic Countries Germany Finland Denmark Norway Sweden Q Q4 Gartenstrasse, Berlin 18

19 8,778 units in production Number of housing units For private customers For investors Total Dec. 31, Dec. 31, 2014 Dec. 31, Dec. 31, 2014 Dec. 31, Dec. 31, 2014 Ongoing production 6,432 5,952 2,346 1,735 8,778 7,687 Sales rate, % Sales including bookings, % Completion rate, % Design Quattro, Ytterby 19

20 Main starts in three countries No. of housing starts 2,849 2,040 Investor packages St. Petersburg Baltic Countries Germany Finland Denmark Norway Sweden Q Q4 Design Duo, Tyra, Örebro 20

21 Some of the started housing projects in Q4 Kotisiilo, Järvänpää, Finland 49 units Gröndal Strand, Stockholm, Sweden 93 units Lapsu, Riga, Latvia 46 units Sebastianstrasse, Köln-Niehl, Germany 34 units 21

22 Strong ending of 2016 Estimated completion No. of housing units 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, Q Q2 Q3 Q4 Q Q Later Investor packages Sweden Norway Denmark Finland Germany Baltic countries St. Petersburg Portion sold 273 sold and completed housing units, to be recognized 22

23 Higher number of units Estimated units to complete ,704 4,261 Investor packages St. Petersburg Baltic Countries Germany Finland Denmark Norway Sweden Q Est. completion Q4 Est. completion 2016 Treseburger-Strasse, Berlin 23

24 Housing portfolio Housing for private customers, ongoing production Dec. 31, (Dec. 31, 2014) Number of housing units Estimated value Sweden 34% (29) Sweden 48% (41) Finland 11% (8) Finland 8% (7) St. Petersburg 22% (36) St. Petersburg 5% (11) Baltic Countries 4% (2) Baltic Countries 1% (1) Germany 22% (17) Germany 26% (20) Denmark 5% (4) Denmark 8% (12) Norway 2% (4) Norway 4% (8) 24

25 Trends in Nordic property market Investor market High interest in the Nordic market Finland Cautious investors Rental market Strong demand in Sweden Stable in Denmark Increased vacancies in Norway Weak demand in Finland Portland Towers, Copenhagen 25

26 Office projects sold in Q4 Torsplan 2, office property in Hagastaden, Stockholm Company transaction at a value of approx. SEK 1.6 BN Total leasable floor space approx. 23,000 sqm. Positive impact on earnings in the first quarter of 2017 Office property in Hyllie in Malmö, Sweden Underlying property value approx. SEK 320 M Total leasable space 7,300 sqm. Positive impact on earnings in the second quarter of 2016 Torsplan 2, Stockholm 26

27 Project starts in Q4 Project Type Location Lettable area, sqm Letting ratio Tornby 2 Retail Linköping, Sweden 9,500 48% Önskebrunnen Logistics Upplands-Bro, Sweden 13,800 0% Zenit 2 Office Aarhus, Denmark 3,600 0% Önskebrunnen, Upplands-Bro 27

28 Good lease in the quarter 16,300 sqm Leased floor space, sqm 300, ,000 Leasable area beginning of quarter Leased in quarter Previous leased area 200, , ,000 50, Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 28

29 Property portfolio Leasable space, sqm, in ongoing or completed projects not recognized in profit 300, , , , No. of projects 100,000 Sweden 50,000 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Norway Denmark Finland 29

30 Ann-Sofie Danielsson Folkboende, Munkedal 30

31 Q4 in brief Best Q4 ever Best EBIT ever Very strong cash flow Operating profit, SEK M 1,140 1,332 1,547 1,101 1, Q Q Q Q4 Q4 Folkboende Vapelhöjden 31

32 Income statement SEK M Oct.-Dec. Oct.-Dec Jan.-Dec. Jan.-Dec Net sales 22,412 18,760 62,495 56,867 Gross profit 2,759 1,999 6,486 5,691 Selling and administrative expenses -1, ,405-3,117 Cost ratio Other 4.6% % % % 31 Operating profit 1,650 1,101 3,039 2,604 Financial items Profit after financial items 1,562 1,017 2,656 2,234 Tax Tax rate 20.5% 13.8% 20.2% 17.7% Profit for the period 1, ,120 1,838 32

33 Operating profit/loss per business area SEK M Oct.-Dec. Oct.-Dec Jan.-Dec. Jan.-Dec NCC Construction Sweden NCC Construction Denmark NCC Construction Finland NCC Construction Norway NCC Roads NCC Housing , NCC Property Development Other and eliminations Operating profit 1,650 1,101 3,039 2,604 33

34 Operating profit/loss per business area SEK M Oct.-Dec. Oct.-Dec Jan.-Dec. Jan.-Dec NCC Construction Sweden NCC Construction Denmark Oct-Dec. Oct.-Dec NCC Construction Finland NCC HQ and International NCC Construction Norway Projects NCC Roads Competition 349 infrigment fee NCC Housing Internal 1,368 gains NCC Property Development Group adjustments Other and eliminations Total Operating profit 1,650 1,101 3,039 2,604 34

35 NCC Construction SEK M Orders received Net sales 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net sales SEK 12,023 M (11,637) Higher operating profit SEK 469 M (433) Operating margin 3.9% (3.7%) SEK M Operating profit Operating margin % Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 35

36 NCC Roads SEK M 4,800 4,200 3,600 3,000 2,400 1,800 1, Q Q2 Q3 Q4 Q Q3 Q4 Q Net sales Q2 Q3 Q4 Q1 SEK M Operating profit/loss Operating margin Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 % Quarter 4 Operation result 126 (186) MSEK Closing plants and cost for reorganization -81 MSEK 36

37 NCC Housing SEK M 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q Net sales Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 SEK M Operating profit Operating margin % 1, Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 Oberer-Schuetzenrain, Leonberg 37

38 Higher number of profit recognized units Number of housing units Oct.-Dec. Oct.-Dec Sweden Denmark Finland Baltic countries St. Petersburg Norway 9 10 Germany Total, private customers 2,187 1,728 Investor packages Total 3,174 2,436 Kv Trevnaden, Malmö 38

39 NCC Property Development SEK M Net sales 3,500 3,000 2,500 2,000 1,500 Profit recognized units Q4 Ullevi Park 4, Gothenburg, Sweden (office) 1, SEK M Q Q2 Q3 Q4 Q Operating profit/loss Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hälsobrunnen, Upplands- Bro, Sweden (logistics) Alberga D, Espoo, Finland (office) Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 39

40 Balance sheet SEK BN Goodwill Property projects Housing projects Accounts receivable and receivable from property sales Other assets Dec Dec. 31 Weidenpesch, Köln 40

41 Strong cash flow SEK M Oct.-Dec. Oct.-Dec Jan.-Dec. Jan.-Dec From operating activities 2,204 1,427 3,436 2,273 From property projects From housing projects 1,887 1, Other working capital Investing activities Cash flow before financing 4,405 3,428 3, Mimer, Stockholm 41

42 Net indebtedness Net indebtedness, incl. tenant housing and housing associations, SEK M Net indebtedness excl. tenant housing and housing associations, SEK M 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Pension liability, IAS 19, SEK M Debt/equity ratio, times Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q

43 Spin-off Housing Shareholders decision on dividend at Annual general meeting April 12,

44 NCC without Housing SEK M 53,116 Net sales 1,678 EBIT 2,044 Cash flow 1,368 1,287 13,069 NCC Housing NCC Housing NCC Housing 44

45 Capital structure NCC Q4 SEK BN Total assets Capital employed 45

46 Capital structure NCC If spin off Q4 SEK BN 24.1 Equity/assets ratio 21% Net debt Equity Total assets Operating capital employed 46

47 Capital structure Housing If spin off Q4 SEK BN 15.3 Equity/assets ratio 31% Net debt 4.2, where of loans in Finnish housing companies and Swedish tenant owner associations, 3.1 Equity Total assets Operating capital employed 47

48 Financial objectives NCC Housing Return on Capital Employed 10-15% Equity/assets ratio >30% NCC Housing s dividend policy is to distribute yearly at least 40% of after-tax profit to the shareholders 48

49 Joachim Hallengren President NCC Housing 49

50 Strong sales and EBIT development continues Net sales, SEK M 14,000 12,000 10,000 8,000 6,000 4,000 2,000 EBIT, SEK M 1,400 1,200 1, EBIT margin % 9.7 % 6.7% 9.3% 10.5% 0 50

51 Strategy New Housing Focus on affordable housing in the Nordics, Germany, St. Petersburg and Baltic Countries Efficient capital allocation and grow our German operations Cost efficiency Increase level of industralization and standardization Increasing differentiation through customer focus Bahrfeldtstrasse, Berlin 51

52 Strengths and competitive advantages Strong market positions through deep local knowledge Housing operates in markets with long-term, favorable trends Geographic diversification enables efficient use of capital Diversified offer reduces risk Stable growth with healthy profitability Attractive portfolio of development rights and projects Good customer insight Musterwohnung, Langen 52

53 53 VDC,Denmark

54 Summary Best result ever Strong development for NCC Housing Construction business in the right direction Mixed result from industrial business Improved result in Property Development Strong cash flow Good foundation for 2016 Kiruna 54

55 55

56 Contact information IR Manager Johan Bergman Tel: +46 (0) , +46 (0)