Capital Market Day May 27, 2010
Olle Ehrlén President and CEO
NCC AB 2010-05-27 1 Creating future environments for working, living and communication
• Sales of SEK 56* billion in 2009 • 18,000 employees • Domestic markets in the Nordic region, Germany, the Baltic countries and St. Petersburg • Thousands of projects, both large and small
*Values recalculated according to IFRIC 15
NCC AB 2010-05-27 2 Fragmented construction market in the Nordic region Market share in terms of sales in 2009
NCC, 6% Skanska, 6% YIT, 4% Nordic Peab, 4% construction Veidekke, 2% market Lemminkäinen, 2% MT Højgaard, 2% SEK 883 billion JM, 1% Others, 72% AF Gruppen, 1%
Source: Euroconstruct
NCC AB 2010-05-27 3 NCC’s operations
Operating sectors Aggregate, Development asphalt, Housing Construction and civil engineering of commercial paving and development properties road service
Business areas
NCC NCC NCC NCC NCC NCC NCC Construction Construction Construction Construction Property Roads Housing Sweden Denmark Finland Norway Development
Sales share*: 37% 6% 10% 7% 17% 18% 5%
*Values recalculated according to IFRIC 15
NCC AB 2010-05-27 4 Markets
Housing units Buildings Civil engineering Property development Aggregate, asphalt, paving and road service
NCC AB 2010-05-275 Review Q12009
NCC AB 2010-05-27 6 NCC – current status Q1 2009
Orders received Net indebtednessQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Orders received 0 SEK M 2006 2007 2008 2009 SEK billion Orders received rolling 12 months Order backlog -1 000 70 -2 000 60
50 -3 000 40 -4 000 30 -5 000 20 -6 000 10 -7 000 0 -8 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2005 2006 2007 2008 2009 -9 000
Unsold housing units Housing units in production 3 536 housing units
900 800 47% Share unsold 700 600 500 400 300 53% Share sold 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 31 mar 2009 2004 2005 2006 2007 2008 2009
NCC AB 2010-05-277 Today, the situation is different
NCC AB 2010-05-27 8 Balanced risk Risk profile of ongoing projects
Number 4 500 Unsold 4 000 Sold 3 500
3 000 Worked-up 2 500 2 000 1 500 1 000 500 0 Dec Mar Jun Sep Dec Mar 2008 2009 2010
NCC AB 2010-05-27 9 Healthy cash flow and low net indebtedness
Net indebtedness, SEK M Debt/equity ratio, multiple
9,000 1.6 8,000 1.4 7,000 1.2 6,000 1.0 5,000 0.8 4,000 0.6 3,000 2,000 0.4 1,000 0.2 0 0.0 31 dec 31 mar 30 jun 30 sep 31 dec 31 mar 30 jun 30 sep 31 dec 31 mar 2007 2008 2009* 2010
*Values for 2009 recalculated according to IFRIC 15
NCC AB 2010-05-27 10 Orders received and order backlog
SEK billion Orders received Orders received Sales Order backlog rolling 12 months rolling 12 months 70
60
50
40
30
20
10
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009* 2010
*Values for 2009 recalculated according to IFRIC 15
NCC AB 2010-05-2711 Increase in number of housing starts
Incl. housing sold to Number Housing units sold investors 1 600 Housing starts 1 400 1 200 1 000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010
NCC AB 2010-05-27 12 Construction market in the Nordic region 2010
Housing units
Buildings
Civil engineering
Total
NCC AB 2010-05-27 13 Management focus 2010
• Maintain high margins – Costs – Attractive offerings • Profitability before volume • Strong financial position facilitates project starts
NCC AB 2010-05- 14 Satr teg y
NCC AB 2010-05-27 15 NCC’s operating sectors
Commercial properties
Aggregate, Aggregate, Paving and road asphalt asphalt, paving service
Construction and civil engineering Housing units
Development Production Aftermarket
NCC AB 2010-05-27 16 Triangeln in Malmö Exemple of co-operation
NCC is to develop a mall, offices, housing units in central Malmö
NCC AB 2010-05-27 17 Long-term strategy
Customers Expenses
Sustainable development
Expertise
NCC AB 2010-05-27 18 Clients
NCC Partnering Function contracts
Sustainable development Green tenders
NCC AB 2010-05-27 19 Expenses
Purchasing Platforms
Project engineering Virtual construction
NCC AB 2010-05-27 20 Expertise
Business focus NCC Infra
Sales focus Best company to work for
“I am proud to work for NCC”
NCC AB 2010-05-27 21 NCC and sustainable development
NCC AB 2010-05-27 22 Sustainable development
Financial • Sustainable profits
Environmental • Create healthy developed environments • Reduce climate impact • Reduce use of hazardous substances • Contribute to recycling
Social • Work environment • Responsibility
Abyen, Vejle, Denmark Abyen, Vejle, Danmark
NCC AB 2010-05-27 23 WHAT WE DO IS WHAT COUNTS
NCC AB 2010-05-27 24 VerksamhetsområdenBusiness areas
KROSS, ASFALT, NCCBYGG OCH NCC ROADS BOENDE-NCC HOUSING UTVECKLINGNCC PROPERTY AV BELÄGGNING CONSTRUCTIONANLÄGGNING KOMMERSIELLA OCH VÄGSERVICE UTVECKLING DEVELOPMENT FASTIGHETER
60% 17% 18% 5%
NCC AB 2010-05-27 25 Business areas
NCC NCC ROADS NCC HOUSING NCC PROPERTY CONSTRUCTION DEVELOPMENT
NCC Construction Sweden NCC Construction Denmark NCC Construction Finland NCC Construction Norway
NCC AB 2010-05-27 26 Markets Construction and civil engineering
Housing Buildings Civil engineering
NCC AB 2010-05-27 27 Product mix Worked-up sales construction and civil engineering, 2009
Housing units 18%
Civil engineering, 35% Buildings 47%
NCC AB 2010-05-27 28 Product mix Construction and civil engineering incl. NCC Roads, 2009
Housing units 14%
Civil engineering 50% Buildings 36%
NCC AB 2010-05-27 29 NCC AB 2010-05-27 30