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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 [email protected]
Head of CommunicationMaria GrimbergTel: +46 (0) 70-896 12 [email protected]
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
