Interim report Jan-Sep 2019 & Q3 · 2019-10-28 · 13 2019-10-28 NCC AB NCC Building Nordics...

2019-10-28 NCC AB1

Tomas CarlssonCEO

Susanne LithanderCFO

Interim reportJan-Sep 2019 & Q3

Valle Wood, oslo

2019-10-28 NCC AB2

Tomas CarlssonCEO

• Earnings improved – up 24% if compared with 2018 adjusted for revaluations• Market conditions generally favorable• Orders received on par with previous years• Order backlog on a high level• Net sales on a steady level• Cash flow improved compared to last year

2019-10-28 NCC AB3

Q3: Improved earnings from a stable base

2019-10-28 NCC AB4

Orders received on par with previous yearsBuilding Sweden up – Road Services down

12,738 12,738 12,769

40,55444,093 44,340

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Q3 2017 Q3 2018 Q3 2019 Jan-Sep2017

Jan-Sep2018

Jan-Sep2019

SEK M

5

Residential orders received on normal levels

Peak driven mainly by severalprojects in Sweden Peak driven mainly by three

large projects in Denmark

2019-10-28 NCC AB

0

1,000

2,000

3,000

4,000

5,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2017 2018 2019

MSEK

Orders received residential

2019-10-28 NCC AB6

Order backlog on a high level

40

45

50

55

60

65

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3

SEK Bn

2019-10-28 NCC AB7

Net sales on a solid level

13,075 14,269 13,951

38,168 39,513 39,995

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q3 2017 Q3 2018 Q3 2019 Jan-Sep2017

Jan-Sep2018

Jan-Sep2019

SEK M

2019-10-28 NCC AB8

Operating profit improvedComparisons with last year impacted by revaluations

364

-1,108

568

-1,200-1,000

-800-600-400-200

0200400600800

1,0001,200

Q3 2017 Q3 2018 Q3 2019

SEK M

Operating margin

4.1%Q3

-1.3%2018

1.5%R12

1,118

-1,020

626

Jan-Sep 2017 Jan-Sep 2018 Jan-Sep 2019

2019-10-28 NCC AB9

Earnings adjusted for revaluations

-1,108

1,565 457

Q3 2018 Revaluations Q3 2018 excl.revaluation

Q3 2019

24%568

2019-10-28 NCC AB10

Susanne LithanderCFO

2019-10-28 NCC AB11

NCC InfrastructureOn the right track with improved result

SEK MJul-Sep

2019Jul-Sep

2018

R12Oct 2018

-Sep 2019Jan-Dec

2018

Orders received 4,466 4,454 18,528 21,271

Order backlog 22,002 20,646 22,002 21,037

Net sales 4,213 3,891 17,186 16,936

EBIT 46 -672 -5 -743EBIT adj for revaluation of SEKM -727 including Road Service 55

EBIT margin, % 1.1 -17.3 0.0 -4.4

NCC Road ServicesOrders received 388 969Order backlog 3,481 4,277Net sales 592 624 2,749 2,855EBIT 4 -211* -6 -251

*Result for BA Infrastructure including Road Services impacted by SEK -727 M in revaluations

2019-10-28 NCC AB12

NCC Building SwedenStrong orders received – results lower than last year – units still in turnaround

SEK MJul-Sep

2019Jul-Sep

2018

R12Oct 2018

–Sep 2019Jan-Dec

2018

Orders received 3,687 2,394 14,527 15,075

Order backlog 16,717 17,435 16,717 18,709

Net sales 3,192 3,380 15,201 15,701

EBIT* 75 86 370 453

EBIT margin, % 2.4 2.6 2.4 2.9

*Building Nordics, including Sweden, was impacted by a total of SEK 295 M in revaluations in Q3 2018

2019-10-28 NCC AB13

NCC Building NordicsStrong order backlog and positive result in all three divisions

SEK MJul-Sep

2019Jul-Sep

2018

R12Oct 2018

– Sep 2019Jan-Dec

2018

Orders received 2,683 2,488 16,556 11,229

Order backlog 16,694 11,110 16,694 11,313

Net sales 2,914 2,720 11,446 10,753

EBIT* 53 -193 54 -227

EBIT margin, % 1.8 -7.1 0.5 -2.1

*Building Nordics, including Sweden, was impacted by a total of SEK 295 M in revaluations in Q3 2018

2019-10-28 NCC AB14

NCC IndustryDelivering on par with previous years

SEK MJul-Sep

2019Jul-Sep

2018

R12Oct 2018

– Sep 2019Jan-Dec

2018

Net sales 4,311 4,301 13,172 12,968

EBIT 387 283 478 350

EBIT adjusted for revaluation 398

EBIT margin, % 9.0 6.6 3.6 2.7

RoCE, % 8.4 7.1

2019-10-28 NCC AB15

NCC Industry: Stone and asphalt volumesSteady volumes for both asphalt and stone materials

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3

Stone material sold, thousands of tons

0

500

1,000

1,500

2,000

2,500

3,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3

Asphalt sold, thousands of tons

2019-10-28 NCC AB16

NCC Property DevelopmentGenerally high activity – two projects in earnings

SEK MJul-Sep

2019Jul-Sep

2018

R12Oct 2018

– Sep 2019Jan-Dec

2018

Net sales 335 397 2,428 2,157

EBIT 19 -326 184 -181

EBIT adjusted for revaluation 38

EBIT margin, % 5.6 -82.1 7.6 -8.4

Capital employed 6,107 4,383 6,107 4,314

RoCE, % 8.1 -3.9

2019-10-28 NCC AB17

Four new projects started this quarterThree office projects and one school

0

50,000

100,000

150,000

200,000

250,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3

SwedenNorwayDenmarkFinland

No. of projects

16

1918

22 21 2118

18 17

Lettable space, sqm

17

19

2019-10-28 NCC AB18

Good letting during 2019

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

0

50,000

100,000

150,000

200,000

250,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3

Remaining unlet area,sqm

Let during quarter,sqm

Previously let area,sqm

Let during quarter(% of available unletarea)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3

2019-10-28 NCC AB19

Letting and completion status in theproperty portfolio

Letting ratio

Completion ratio

SEK MJul-Sep

2019Jul-Sep

2018

NCC Infrastructure 46 -672

NCC Building Sweden 75 86

NCC Building Nordics 53 -193

NCC Industry 387 283

NCC Property Development 19 -326

Non core assets, Road Service 4 -211

Other and eliminations -15 -75

EBIT 568 -1,108

2019-10-28 NCC AB20

Other and eliminations

SEK MJul-Sep

2019Jul-Sep

2018NCC HQ andother groupadjustments

-31 -88

Internal gains 16 13

Other andeliminations -15 -75

Income statement

SEK MJul-Sep

2019Jul-Sep

2018

R12Oct 2018

- Sep 2019Jan-Dec

2018Net sales 13,951 14,269 57,827 57,346

Gross profit 1,120 -402 3,651 2,140

Selling and administrative expenses -558 -661 -2,780 -2,875

Cost ratio 4.0% 4.6% 4.8% 5.0%

Other 6 -46 11 -29

EBIT 568 -1,108 883 -764

Financial items -32 -24 -108 -85

EBT 536 -1,133 774 -849

Tax -77 179 -147 99

Profit for the period 459 -955 627 -750

2019-10-28 NCC AB21

1,7753,021

1,920

3,251

474

1,852

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Q3 2018 Q3 2019Corporate net debt Pension liability Leasing liabilities (incl IFRS 16)

2019-10-28 NCC AB22

Net debt

8,124

4,169

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3

-3

-2

-1

0

1

2

3Cash flow before financing

Cashflow improvement

SEK MJul-Sep

2019Jul-Sep

2018Oct 2018

– Sep 2019Jan-Dec

2018

From operatingactivities 32 -367 2,279 790

From propertyprojects -714 -55 -1,735 -1,166

Investingactivities -132 -152 -665 -782

Cash flowbeforefinancing

-814 -574 -121 -1,157

SEK Bn R12

2019-10-28 NCC AB23

2019-10-28 NCC AB24

Tomas CarlssonCEO

• Build on our strong and healthy core• Focus on projects, customers and geographies where NCC can deliver value• Lower risk profile in the projects – not less ambitious in our business• Clear main objectives: Restore profitability and better consistency

• Considerable revaluations – action plan launched• Sustainable change will take time

2018-10-25 NCC AB25

Our message in October 2018: A new baseline

Action plan starting to deliver results

Organisation and team1

Exit or divest non-performing business2

Turn-around plans3

Improved processes and training4

2018-10-25 NCC AB26

A clearer structure - New appointments

Divestment of Road Services in progress

Most other identified assets sold or closed

Structured turnaround work

Internal processes strengthened

NCC Project Academy launched and active

• Market conditions remains generally favorable

• Order intake on par with previous year – order backlog on a high level

• Underlying base stabilized

• Action plan is starting to deliver results

• Full effect will take time

• Turnaround work still intense in some units

• Q3 earnings improved

2019-10-28 NCC AB27

Summary

2019-10-28 NCC AB28

Contact information and calendar

Chief Financial OfficerSusanne LithanderTel: +46 (0) 73-037 08 74susanne.lithander@ncc.se

Head of CommunicationMaria GrimbergTel: +46 (0) 70-896 12 88maria.grimberg@ncc.se

Financial Calendar

January 30, 2020 Interim report Jan-Dec 2019

April 1, 2020 NCC AGM

April 28, 2020 Interim report Jan-Mar

2019-10-28 NCC AB29