Q1 2020 Presentation - NCCApr 28, 2020  · 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

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