q2 2020 - ncc.com · • earnings improved in all business areas except industry • net sales on...
TRANSCRIPT
![Page 1: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/1.jpg)
1
Q2 2020
2020-07-17
Horisonten, Aalborg
NCC AB
![Page 2: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/2.jpg)
2
Tomas CarlssonCEO
2020-07-17 NCC AB
![Page 3: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/3.jpg)
2020-07-17 NCC AB3
• Earnings improved in all business areas except Industry
• Net sales on par with last year
• Orders received on normal levels – strong in Sweden‒ 3.4 bn order in Denmark 2019 in comparison
• Orders received in first half significantly higher than net sales• Order backlog remains strong
• Cash flow from operations strong compared to last year
Improved profitability – Q2 and H1
![Page 4: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/4.jpg)
2020-07-17 NCC AB4
• Ongoing projects not impacted by coronacrisis to date• Longterm effects from economic downturn still hard to
assess – no material negative effects to date• Property market outlook has some uncertainty – letting
resumed in June but long term effects to be monitored
Market update
![Page 5: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/5.jpg)
2020-07-175
• Road Services Denmark divested to Arkil• Road Services Sweden and Finland divested to Mutares• Expected to close in Q3‒ Combined: No earnings effect and marginally positive effect
on cashflow• Road Services Norway will remain and be reported as
part of BA Infrastructure‒ Divestment opportunities still considered
Divestment Road Services
NCC AB
![Page 6: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/6.jpg)
2020-07-176
Orders received3.4 bn residential orders in Denmark in Q2/19
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
12,7
30
0
5,000
10,000
15,000
20,000
Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2
SEK M
NCC AB
![Page 7: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/7.jpg)
2020-07-17 NCC AB7
Residential orders received - NCC1,
059
2,23
9
1,24
9
1,21
5
1,04
5
4,56
1
2,02
2
1,26
3
1,25
6
1,52
4
0
1,000
2,000
3,000
4,000
5,000
Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2
Orders received residential NCC average
SEK M
![Page 8: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/8.jpg)
8
Order backlogRemains strong in all business areas
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
59,4
86
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 Q2
2020-07-17
SEK M
NCC AB
![Page 9: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/9.jpg)
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
14,4
31
0
5,000
10,000
15,000
20,000
Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2
9
Net SalesOn par with previous years
SEK M
2020-07-17 NCC AB
![Page 10: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/10.jpg)
10
Operating profitEarnings and margin improving
2020-07-17
452 411 4830
100
200
300
400
500
Q2 2018 Q2 2019 Q2 2020
SEK M
Operating margin
Q2 2019 2.8%
Q2 2020 3.3%
NCC AB
![Page 11: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/11.jpg)
11
Strong focus on reducing serious accidents
407
315300
241
202
246
204
257
176 172185
14.4
10.9 10.6
8.1
7.2
8.8
7.5
9.5
7.0 7.07.5
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 Q2 2020
Number of accidents LTIF 1 Day
LTIF Group 1 DayR12 Q1/Q2 2020
2020-07-17 NCC AB
![Page 12: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/12.jpg)
12
Susanne LithanderCFO
2020-07-17 NCC AB
![Page 13: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/13.jpg)
74% (75)
7% (6)
19% (19)
Jan-Jun 2020
Net Sales
Norway
Denmark
Sweden
13
NCC InfrastructureConsistent improvement – normal variation in orders received
Q2 Jan-JunR12
Jul-Jun Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 3,015 3,428 7,431 8,267 15,764 16,601
Order backlog 19,219 21,770 19,219 21,770 19,219 20,389
Net sales 4,512 4,192 8,302 7,841 17,886 17,425
EBIT 92 81 131 89 254 212
EBIT margin, % 2.0 1.9 1.6 1.1 1.4 1.2
NCC Road Services
Orders received 619 268 1,117 1,117 1,618 1,617
Order backlog 2,884 3,679 2,884 3,679 2,884 2,816
Net sales 531 635 958 1,297 2,285 2,624
EBIT 4 6 -10 1 9 20
2020-07-17 NCC AB
![Page 14: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/14.jpg)
14
NCC Building SwedenImproved earnings and strong orders received
Q2 Jan-JunR12
Jul-Jun Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 3,729 2,368 8,187 4,947 15,981 12,741
Order backlog 17,898 16,261 17,898 16,261 17,898 16,561
Net sales 3,464 3,726 6,849 7,394 14,306 14,851
EBIT 90 76 177 185 356 364
EBIT margin, % 2.6 2.0 2.6 2.5 2.5 2.5
2020-07-17 NCC AB
Rudsberget, Karlstad
![Page 15: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/15.jpg)
2020-07-17 NCC AB15
NCC Building SwedenResidential orders received above average – >70% rentals in 2020
Orders received residential
320
1,43
2
211
552
765
971
1,23
7
813
435
1,06
6
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2
Average
![Page 16: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/16.jpg)
16
NCC Building NordicsImproved earnings – Q2/19 had 3.4 bn SEK residential orders in Denmark
Q2 Jan-JunR12
Jul-Jun Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 2,179 6,210 5,426 10,396 11,110 16,080
Order backlog 15,178 16,738 15,178 16,738 15,178 15,807
Net sales 3,142 2,803 5,997 5,370 12,396 11,769
EBIT 62 46 112 80 263 231
EBIT margin, % 2.0 1.6 1.9 1.5 2.1 2.0
2020-07-17
34%(32)
14%(16)
52%(52)
Jan-Jun 2020
Net Sales
Finland
Norway
Denmark
NCC AB
![Page 17: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/17.jpg)
2020-07-1717
NCC Industry: Stone and asphalt volumesVolumes on par with last year
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
8
7,90
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
Q2
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 1,93
5
0
500
1,000
1,500
2,000
2,500
3,000
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Q2
Asphalt sold, thousands of tons
NCC AB
![Page 18: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/18.jpg)
18
NCC IndustryChange in bitumen price impacts net sales and earnings
Q2 Jan-JunR12
Jul-Jun Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 3,677 3,991 7,089 7,362 12,579 12,852
Order backlog 5,119 5,487 5,119 5,487 5,119 2,967
Net sales 3,554 3,721 4,868 4,985 12,854 12,971
EBIT 258 322 -105 -63 470 511
Operating margin % 7.2 8.6 -2.2 -1.3 3.7 3.9
ROCE % 10.3 9.0
2020-07-17
58%(56)
20%(20)
14%(17)
8% (7)
Jan-Jun 2020
Net Sales
Finland
Norway
Denmark
Sweden
NCC AB
![Page 19: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/19.jpg)
2020-07-1719
NCC Property DevelopmentTwo projects in Finland recognized in profit
Q2 Jan-JunR12
Jul-Jun Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Net sales 679 321 2,255 732 4,580 3,056
EBIT 68 40 391 21 683 313
Capital employed 5,337 5,534 5,337 5,534 5,337 4,935
EBIT margin % 10.1 12.5 17.3 2.9 14.9 10.2
ROCE % 12.9 6.2
NCC AB
OOPS, Espoo
![Page 20: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/20.jpg)
2020-07-17 NCC AB20
0
50,000
100,000
150,000
200,000
250,000
300,000
Q12018
Q22018
Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Q2
FinlandNorwayDenmarkSweden
151415
2121
One new project started in Q2Project ”Bettorp” in Sweden
Lettable space, sqm
17
19
17
18
18
![Page 21: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/21.jpg)
2020-07-17 NCC AB21
Letting on normal levelsLetting resumed towards the end of the quarter
0%
10%
20%
30%
40%
50%
0
50,000
100,000
150,000
200,000
250,000
300,000
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Q2
Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter(% of available unlet area)
![Page 22: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/22.jpg)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Q2
2020-07-17 NCC AB22
Letting and completion statusLetting higher than completion ratio in the property portfolio
Letting ratio
Completion ratio
![Page 23: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/23.jpg)
23
EarningsQ2 Jan-Jun
R12Jul-Jun Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Earnings in segments (all BAs) 574 571 696 313 2,034 1,651
NCC HQ and other group adjustments -47 -94 -92 -140 -156 -204
Internal gains -18 -44 -17 -55 14 -24
Other Group Adjustments -26 -22 -173 -59 -240 -126
Other & Eliminations total -91 -160 -282 -254 -382 -355
EBIT 483 411 414 59 1,652 1,296
Financial items -20 -32 -41 -50 -104 -112
EBT 463 380 373 9 1,547 1,184
Tax -28 -58 -22 -1 -329 -309
Profit for the period 435 322 351 8 1,218 875
2020-07-17 NCC AB
![Page 24: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/24.jpg)
Strong cashflow
Q2 Jan-JunR12
Jul-Jun Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
From operatingactivities 753 595 787 379 3,181 2,774
From propertyprojects -259 -591 37 -800 -329 -1,165
Other workingcapital -982 -892 -309 -414 710 605
Investingactivities -116 -221 -101 -415 -388 -701
Cash flowbeforefinancing
-605 -1,109 413 -1,249 3,174 1,512
SEK Bn
24
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Q2-3
-2
-1
0
1
2
3
4
2020-07-17
R12Cash flow before financing
NCC AB
![Page 25: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/25.jpg)
-2,369-3,048
-1,894
-2,226
-2,089
73
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
2019 Q2 2020 Q2
Corporate net debtLeasing liabilities (incl IFRS 16)Pension liability
25
Net debt per June 30 – corporate net cash
*Corporate net debt excluding pension liabilities andleasing liabilities according to IFRS16 Leasing**Corporate net debt/EBITDA is -0.03
2020-07-17
**
Net debt* / EBITDA
R12 N/A**
NCC AB
![Page 26: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/26.jpg)
26
Tomas CarlssonCEO
2020-07-17 NCC AB
![Page 27: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/27.jpg)
2020-07-1727
• Earnings improved in all business areas except Industry
• Net sales on par with last year
• Orders received on normal levels – strong in Sweden‒ 3.4 bn order in Denmark 2019 in comparison
• Orders received in first half significantly higher than net sales• Order backlog remains strong
• Cash flow from operations strong compared to last year
Comment Q2
NCC AB
![Page 28: Q2 2020 - ncc.com · • Earnings improved in all business areas except Industry • Net sales on par with last year • Orders received on normal levels – strong in Sweden](https://reader034.vdocuments.us/reader034/viewer/2022050402/5f80542d1940a626ea2550a5/html5/thumbnails/28.jpg)
28 2020-07-17 NCC AB