Q2 2021 - ncc.com

Tomas Carlsson, CEO

Susanne Lithander, CFO

Q2 2021

July 21, 2021 NCC AB

Tomas CarlssonCEO

July 21, 2021 NCC AB2


Continuing on the improvement trajectory

All contracting unitsbetter than last year

Strong letting in PD

Industry still has potential to improve

Demand continuedstrong

2020 Contracting PDIndustry 2021

4

EBIT Q2

NCC AB

Other & elim

Improved earnings. 30% up compared

to last year

July 21, 2021

Contracting

Earnings and volumes on par with last

year but room for improvement

Industry

No project recognized in profit

Property Development

Other & eliminations

Normal levels

0.0

1.2

1.4 1.4

1.8

2.0 2.0

2.2

2.42.5

2.3

2.52.6

2.9 2.9

3.2

0.5

2.02.1 2.1 2.1

2.8 2.8

3.2

0.0

1.0

2.0

3.0

Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221

Infrastructure

Building Sweden

Building Nordics

5

Contracting: Good margins

*R12 EBIT margin. BA Infrastructure without Road Services


%*


Contracting: Strong order backlog

20,8

65

18

,70

0

14

,91

9

17

,02

0

13,3

01

11

,23

7

0

5,000

10,000

15,000

20,000

25,000

Infrastructure Building Sweden Building Nordics

Order backlog Net sales R12

Q1

Q1Q1


7

EBIT Q2

NCC AB

Other & elim


to last year

July 21, 2021

Contracting



Industry




Normal levels


8

EBIT Q2

• Earnings and volumes on par with

last year

• Positive impact from efficiency

program in asphalt

• Negative impact from loss-making

asphalt unit in Finland – on FY same

level as 2020 expected, but earlier

in the year

NCC AB

Other & elim

Industry

July 21, 2021


9

EBIT Q2

NCC AB

Other & elim


to last year

July 21, 2021

Contracting



Industry




Normal levels


10

EBIT Q2


NCC AB

Other & elim

July 21, 2021



Property Development: Earnings variableProfit recognition when sold and completed – provisions for rental guarantees etc

*

-50

0

50

100

150

200

250

300

350

Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2

EBIT, SEK M


15 ongoing property development projectsOffices in strong locations

Frederiks Plads 2 (75% let)

Next (100% let)

Bettorp (100% let)

Q1 Q2 Q3 Q4

Valle View

Hatsina Office 1 (66% let)

K11 (80% let)

Omega CH (62% let)

Ongoing unsold projects(% completed / % let)

• Bromma Blocks (75/57)

• MIMO (16/31)

• We Land (15/22)

• Brick Studios (48/57)

• Kontorvaerket 1 (19/100)

• Våghuset (49/33)

• Fredriksberg D (42/98)

• Kulma21 (40/5)

Expected profit recognition for sold projects

Q1 Q2 Q3 Q4

20222021

Kineum/Gårda

(86% let)


Strong letting in the quarter24 new contracts in Q2

0

10,000

20,000

30,000

40,000

50,000

60,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2018 2019 2020 2021

Let during quarter, sqm


14

EBIT Q2

NCC AB

Other & elim


to last year

July 21, 2021

Contracting



Industry




Normal levels

15

EBIT and margin, Q2

NCC ABJuly 21, 2021

411

483 487

2.8%

3.3%

3.8%

0%0

100

200

300

400

500

Q2 2019 Q2 2020 Q2 2021


16

Jan – Jun 2021

Improved earnings in Contracting

No large project in profit recognition

NCC AB

Other & elim

July 21, 2021

Industry better than last year H1

Impact of sale-lease back from 2020


Orders received

15

,50

1

16

,07

0

12

,76

9

13,7

08

15

,45

8

12

,73

0

9,0

26

13

,98

4

14

,25

5

16

,56

8

0

5,000

10,000

15,000

20,000

Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2

Orders received Average

SEK M

1,0

45

4,5

61

2,0

22

1,2

63

1,2

56

1,5

24

1,3

84

3,1

74

1,7

78

1,0

65

0

1,000

2,000

3,000

4,000

5,000

Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Q2

Orders Received Residential Average


Residential orders received

SEK M

19

Water and sewage projects – orders receivedNCC has competitive edge throughout the water and sewage process

Margretelund treatment plant,

in phase 1

Käppalatreatment plant,

in phase 1

Kungsängsverket, treatment plant

270 MSEK

Gardermoen treatment plant,

240 MSEK

>25 projectswith earlyinvolvementduring the last five years


61

,37

0

63

,02

7

61

,65

8

57

,80

0

62

,33

3

59

,48

6

54

,82

1

50

,94

5

56

,09

6

58

,81

6

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2


Order backlog

SEK M

11,4

34

14

,61

0

13

,95

1

18

,23

9

11,7

66

14

,43

1

12

,82

0

14

,90

5

10,1

40

12

,74

5

0

5,000

10,000

15,000

20,000

Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2

21

Net SalesLower orders received last year and no PD project recognized

SEK M


• Generally good demand in all markets

• High activity – demonstrated also by strong letting

• Concrete supply – severe impact if Cementa factory in Sweden would close

‒ Assessing the situation together with suppliers and the industry

July 21, 202122

Market

NCC AB

Susanne LithanderCFO


NCC AB24

NCC InfrastructureStrong orders received and earnings up

Q2 Jan-Jun

R12

Jul-Jun Jan-Dec

SEK M 2021 2020 2021 2020 2020/2021 2020

Orders received 6,769 3,253 12,202 8,028 18,254 14,080

Order backlog 20,865 19,760 16,200

Net sales 4,118 4,763 7,604 8,856 17,020 18,271

EBIT 115 105 154 145 366 357

EBIT margin, % 2.8 2.2 2.0 1.6 2.2 2.0

79%(72)

10%

11%

Sweden Sweden

Denmark

Norway

July 21, 2021

Karen Blixen Plads, Copenhagen, Denmark

(13)

(13)

(13)

(15)

25

NCC Building SwedenOn a strong trajectory

Q2 Jan-Jun

R12

Jul-Jun Jan-Dec

SEK M 2021 2020 2020 2020 2020/2021 2020

Orders received 4,203 3,729 7,869 8,187 14,166 14,484

Order backlog 18,700 17,898 17,670

Net sales 3,697 3,464 6,775 6,849 13,301 13,375

EBIT 129 90 219 177 423 381

EBIT margin, % 3.5 2.6 3.2 2.6 3.2 2.9

NCC AB

K11, Stockholm, Sweden

July 21, 2021

32

0

1,4

32

211

55

2

76

5

97

1

1,2

37

81

3

43

5

1,0

66

1,2

31

99

3

1,2

46

62

6

0

200

400

600

800

1,000

1,200

1,400

1,600

Q12018

Q2 Q3 Q4 Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Q2

Orders Received Residential Building Sweden Average


NCC Building Sweden44% rentals in 2021

SEK M

NCC AB27

Drammen Tingshus, Norway

NCC Building NordicsImproving across markets

Q2 Jan-Jun

R12

Jul-Jun Jan-Dec

SEK M2021 2020 2021 2020 2020/2021 2020

Orders received 2,906 2,179 4,999 5,426 11,449 11,877

Order backlog 14,919 15,178 14,856

Net sales 2,680 3,142 5,100 5,997 11,237 12,134

EBIT 88 62 127 112 358 343

EBIT margin, % 3.3 2.0 2.5 1.9 3.2 2.8

July 21, 2021

43% (34)

13%

44%

Denmark

Norway

Finland

(14)

(52)


NCC Industry: Stone and asphalt volumesVolumes on par with previous years

5,2

16

7,9

99

7,8

80

7,2

44

6,0

78

7,9

08

6,9

38

7,5

84

5,8

96

8,0

92

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Q2

Stone material sold, thousands of tons

166

1,9

04

2,5

18

1,5

12

176

1,9

35

2,5

03

1,6

04

133

1,9

28

0

500

1,000

1,500

2,000

2,500

3,000

Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Q2

Asphalt sold, thousands of tons

NCC AB29

Vestkapp, Norway

NCC IndustryPositive earnings effect from new organization– negative from Asphalt Finland

Q2 Jan-Jun

R12

Jul-Jun Jan-Dec

SEK M 2021 2020 2021 2020 2020/2021 2020

Orders received 2,984 3,315 5,868 6,235 10,238 10,605

Net sales 3,107 3,139 3,929 4,065 10,732 10,869

EBIT 243 244 -55 -119 450 386

Operating margin % 7.8 7.8 -1.4 -2.9 4.2 3.5

ROCE % 8.5 7.8

July 21, 2021

56% (56)20%

17%

7%

Sweden

Denmark

Norway

Finland

(20)

(14)

(10)

30

NCC Property DevelopmentNo project recognized in profit, investing in future projects

Q2 Jan-Jun

R12

Jul-Jun Jan-Dec

SEK M 2021 2020 2021 2020 2020/2021 2020

Net sales 40 679 1,175 2,255 1,657 2,737

EBIT -25 68 22 391 65 434

Capital employed 6,401 5,337 6,401 6,433

EBIT margin % -62.6 10.1 1.9 17.3 3.9 15.9

ROCE % 1.1 8.0

NCC AB

OOPS, EspooOOPS, Esbo, Finland

July 21, 2021


One new project started in Q2- project ”MIMO” in Sweden. One minor residual project sold with no earnings effect

21 21

18 1817 17

19

15 1514

15 15 15 15

0

5

10

15

20

25

0

50,000

100,000

150,000

200,000

250,000

300,000

Q12018

Q2 Q3 Q4 Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Q2

Finland

Norway

Denmark

Sweden

Number of ongoing andcompleted projects

Lettable space in ongoing projects, sqm


Strong letting in the quarter24 new contracts in Q2

0%

10%

20%

30%

40%

50%

0

50,000

100,000

150,000

200,000

250,000

300,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2018 2019 2020 2021

Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter(% of available unlet area)

Letting also in 14 projects that are already sold and

recognized in profit

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Q2

Total letting ratio

Total completion ratio


Letting and completion status

34

Earnings

Q2 Jan-Jun

R12

Jul-Jun Jan-Dec

SEK M 2021 2020 2021 2020 2020/2021 2020

Earnings in segments (all BAs) 550 570 468 706 1,664 1,902

NCC HQ and subsidiaries -29 -47 -63 -92 -139 -168

Internal gains -33 -18 -31 -17 -78 -64

Other group adjustments -20 -26 -38 -173 -100 -235

Road Services 19 3 9 -10 -56 -75

Other & Eliminations total -63 -87 -124 -291 -375 -542

EBIT 487 483 344 414 1,290 1,360

Financial items -11 -20 -20 -41 -59 -80

EBT 476 463 324 373 1,232 1,281

Tax -88 -28 -59 -22 -59 -22

Profit for the period 388 435 265 351 1,173 1,259

NCC ABJuly 21, 2021

Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Q2

-3

-2

-1

0

1

2

3

4


Cashflow

SEK Bn

R12

Cash flow before financing

Q2 Jan-Jun

R12

Jul-Jun Jan-Dec

SEK M 2021 2020 2021 2020 2020/2021 2020

From operating activities

702 773 733 828 2,641 2,736

From property projects

-812 -259 -779 37 -2,077 -1,262

Other workingcapital

-470 -1,002 217 -350 662 95

Investing activities -192 -116 -348 -101 -709 -463

Cash flow before financing

-772 -605 -177 413 517 1,106

73

-755

-3,048-2,217

-2,226-1,907

-6,000

-5,000

-4,000

-3,000

-2,000

-1,000

0

1,000

2020 Q2 2021 Q2

Leasing liabilities

Pension liability

Corporate net debt


Net debt per Jun 30, 2021

*Corporate net debt excluding pension liabilities and leasing liabilities

**Net debt* / EBITDA

Target < 2.5x

Jun 30, 2021 0.38x

Tomas CarlssonCEO


July 21, 202138

Financial targets

Earnings per share

16.00 SEK 2023

Net debt

< 2.5x EBITDA

Dividend policy

≥ 40%of profit after tax

10.89 SEK R12

0.38x(-0.03x)

Q2 2

021

NCC AB

5.9

5.04.8

4.03.7

3.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2015 2016 2017 2018 2019 2020 2030


Climate & Energy – reported in Q1 and Q3 reportsCO2e (ton)/MSEK

Climate & Energy

-60% Ton CO2e

(scope 1 and 2) per SEK M turnover

2030

Climate & Energy

-50%Ton CO2e relative to

bought volumes of the largest scope 3

contributors within NCC*

2030

*Concrete, steel, asphalt and transports

-42%December

2020

Working on

baseline

Target 2,36

NCC AB40

Health & Safety

246 204 257 176 159 131144 125 156 103 86 70

8.8

7.5

9.5

7.06.7

6.1

5.14.6

5.8

4.13.6

3.2

0

1

2

3

4

5

6

7

8

9

10

0

100

200

300

2016 2017 2018 2019 2020 R12 Q22021

2022

LT

IF

No

of

ac

cid

en

ts

No of accidents LTIF1 No of accidents LTIF4 LTIF 1 Day LTIF 4 Days

Health & Safety

LTIF4 3.0

2022

3.2Q2 2021 R12

Target 3.0

*

July 21, 2021

• Strong orders received

• All contracting units perform better than last year

• Industry has potential to improve

• Property development as planned – strong letting

• Demand continues to be strong

NCC AB41

Continuing our improvements – on the right track

July 21, 2021

42 April 28, 2021 NCC AB

Q2 2021 - ncc.com

Documents

Transcript of Q2 2021 - ncc.com