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Q3 2020
Flora school, Skellefteå
2
Tomas CarlssonCEO
2020-11-063
Orders receivedA low quarter in the contracting BAs with different underlying drivers
12
73
8
17
75
0
15 5
01
16
07
0
12
76
9
13
70
8
15
45
8
12 7
30
9 0
26
0
5 000
10 000
15 000
20 000
Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3
SEK M
2020-11-064
Orders receivedxx
4 4
66
3 6
87
2 6
83
2 9
22
2 4
38
1 2
47
12
73
3
8 6
34
13
07
9
10
35
3
10
62
5
6 6
74
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
Infrastructure Building Sweden Building Nordics
Q3 2019 Q3 2020 Jan-Sep 2019 Jan-Sep 2020
Built exceptionalbacklog in 2019 –country variationQuarterly
variation - strong in Q1 and Q2
Prudent tendering especially in Norwayand more early involvement than usual
2020-11-065
Order backlog vs net salesAbove net sales in all contracting BAs
22 0
02
16
71
7
16
69
7
18
14
1
17 6
02
13
67
1
0
5 000
10 000
15 000
20 000
25 000
Infrastructure Building Sweden Building Nordics
Order backlog Sep 2019 Order backlog Sep 2020 Net sales R12, Sep 2020
17,629
13,848
12,277
6
Order backlog
56
58
7
56
83
7
61 3
70
63
02
7
61
65
8
57
80
0
62
33
3
59
48
6
54
82
1
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3
2020-11-06
SEK M
• Ylva Lagesson appointed as Head of business area Industry
• Susanne Lithander will take on the role as Head of the group function Development & Operations Services (DOS) in addition to being CFO and Head of Finance
• Jyri Salonen, former head of business area Industry will leave NCC
7
New roles for members of the Executive Team
2020-11-06
8
• Division Asphalt: New and leaner organization
‒ Strong potential in Sweden, Norway and Denmark
‒ Expected to reduce annual cost base with approx. SEK 50 M from 2021
‒ Restructuring cost of approx. SEK 65 M expected in Q4/Q1
• Strategic review of exit options for Asphalt Finland
‒ Smaller, no strategic fit and loss-making
‒ Turnaround since 2018 has not delivered expected results
• Division Hercules
‒ Move to BA Infrastructure – better strategic fit with the contracting business
BA Industry: Action plan to unlock more potential
2020-11-06
9
• Harri Savolainen, Head of Purchasing, will leave NCC for another opportunity
Other changes
2020-11-06
14
26
9
17 8
32
11
43
4
14
61
0
13
95
1
18
23
9
11
76
6
14
43
1
12
82
0
0
5 000
10 000
15 000
20 000
Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3
10
Net SalesBuilding Sweden lower than last year and no property sale in PD this quarter
SEK M
2020-11-06
11
Operating profit on par in the quarter
-1 108
568 567
-1 200
-1 000
-800
-600
-400
-200
0
200
400
600
800
1 000
Q3 2018 Q3 2019 Q3 2020
SEK M
Operating margin
Q3 2020 4.4%
Q3 2019 4.1%
R12, Sep 2020 2.9%
-1 020
626
981
-1200
-1000
-800
-600
-400
-200
0
200
400
600
800
1000
Jan-Sep 2018 Jan-Sep 2019 Jan-Sep 2020
2020-11-06
NCC AB12
Health & Safety
407
315300
241
202
246
204
257
176 172185
175
14.4
10.910.6
8.1
7.2
8.8
7.5
9.5
7.0 7.07.5
7.2
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, R12 Q2 2020, R12 Q3 2020, R12
Number of accidents LTIF 1 Day
LTIF Group 1 Day
2020-11-06
13
Health & Safety
144125
156
103 100 106 97
5.14.6
5.8
4.1 4.0 4.3 4.0
0
2
4
6
8
10
12
14
16
0
100
200
300
400
500
2016 2017 2018 2019 Q1 2020, R12 Q2 2020, R12 Q3 2020, R12
LTIF Group 4 Days
Number of accidents LTIF 4 Days
2020-11-06
14
10th Awareness Day, 2 September 2020
Hospital Nordsjælland, Denmark Venjar Eidsvoll, Norge
2020-11-06
• Strong underlying demand but potential longterm negative impact from economicdownturn due to corona pandemic still hard to assess
• Signs of slower decision processes mainly on the commercial property market mayhave impact going forward
• Ongoing projects not impacted by corona pandemic to date
15
Market: Signs of slowdown in some segments
2020-11-06
• Margins and earnings better or on par with last year
‒ In all contracting business areas and in Industry
‒ Property Development had no property sale this quarter
• Strong cash flow
• Different drivers behind low orders received
‒ Prudent tendering, more early involvement and quarterly variation
• Order backlog higher than net sales in all BAs
• New Head of business area Industry and a plan to boostperformance
16
In summary: Stable earnings, good cash flow and order backlog in shape
Proposed dividend
2.50 SEK per share
EGM Nov, 12
2020-11-06
17
Susanne LithanderCFO
75% (74)
7% (7)
18% (19)
Jan-Sep 2020
Net Sales
Norway
Denmark
Sweden
18
NCC InfrastructureBetter project portfolio lifts margins – orders received lower
Q3 Jan-Sep
R12
Oct 19-
Sep 20 Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 2,922 4,466 10,353 12,733 14,221 16,601
Order backlog 18,141 22,002 18,141 22,002 18,141 20,389
Net sales 3,956 4,213 12,258 12,054 17,629 17,425
EBIT 110 46 240 135 318 212
EBIT margin, % 2.8 1.1 2.0 1.1 1.8 1.2
NCC Road Services
Orders received 404 388 1,522 1,505 1,634 1,617
Order backlog 2,824 3,481 2,824 3,481 2,824 2,816
Net sales 455 592 1,413 1,889 2,148 2,624
EBIT -31 4 -41 5 -26 20
2020-11-06
• Road Services Sweden and Finland to Mutares – closed
• Divestment of Road Services Denmark to Arkil in process
• Road Services Norway
‒ Reported in the Other and eliminations segment after closing of above divestments
‒ Operationally managed by BA Infrastructure in Norway
19
Divestment Road Services
2020-11-06
20
NCC Building SwedenMargins improving and strong order backlog
Q3 Jan-Sep
R12
Oct 19-
Sep 20 Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 2,438 3,687 10,625 8,634 14,732 12,741
Order backlog 17,602 16,717 17,602 16,717 17,602 16,561
Net sales 2,735 3,192 9,583 10,587 13,848 14,851
EBIT 78 75 255 261 359 364
EBIT margin, % 2.9 2.4 2.7 2.5 2.6 2.5
School in Helsingborg
2020-11-06
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
0
200
400
600
800
1 000
1 200
1 400
1 600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020
Orders Received Residential Average
21
NCC Building SwedenResidential orders received above average – >70% rentals in 2020
SEK M
2020-11-06
22
NCC Building NordicsStable quarter with some country variations – strong order backlog
Q3 Jan-Sep
R12
Oct 19-
Sep 20 Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 1,247 2,683 6,674 13,079 9,674 16,080
Order backlog 13,671 16,694 13,671 16,694 13,671 15,807
Net sales 2,795 2,914 8,792 8,284 12,277 11,769
EBIT 50 53 162 132 261 231
EBIT margin, % 1.8 1.8 1.8 1.6 2.1 2.0
36%(31)
14%(16)
50%(53)
Jan-Sep 2020
Net Sales
Finland
Norway
Denmark
2020-11-06
23
NCC Industry: Stone and asphalt volumesAsphalt volumes on par, stone volumes somewhat lower
7 3
47
7 5
39
5 2
16
7 9
99
7 8
80
7 2
44
6 0
78
7 9
08
6 9
38
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
Q32018
Q4 Q12019
Q2 Q3 Q4 Q12020
Q2 Q3
Stone material sold, thousands of tons
2 4
60
1 7
88
166
1 9
04
2 5
18
1 5
12
176
1 9
35
2 5
03
0
500
1 000
1 500
2 000
2 500
3 000
Q32018
Q4 Q12019
Q2 Q3 Q4 Q12020
Q2 Q3
Asphalt sold, thousands of tons
2020-11-06
24
NCC IndustryDelivering on the same level as last year
Q3 Jan-Sep
R12
Oct 19-
Sep 20 Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Orders received 2,399 2,450 9,489 9,812 12,529 12,852
Order backlog 3,402 3,631 3,402 3,631 3,402 2,967
Net sales 4,101 4,311 8,969 9,296 12,643 12,971
EBIT 395 387 290 324 478 511
Operating margin % 9.6 9.0 3.2 3.5 3.8 3.9
ROCE % 8.3 9.0
55%(54)
19%(19)
16%(18)
10% (9)
Jan-Sep 2020
Net Sales
Finland
Norway
Denmark
Sweden
2020-11-06
25
NCC Property DevelopmentNo property sale this quarter
Q3 Jan-Sep
R12
Oct 19-
Sep 20 Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Net sales 18 335 2,274 1,067 4,263 3,056
EBIT -11 19 380 39 654 313
Capital employed 5,793 6,107 5,793 6,107 5,793 4,935
EBIT margin % -58.5 5.6 16.7 3.7 15.3 10.2
ROCE % 12.2 6.2
Masthuggskajen
2020-11-06
26
One new project started in Q3Project ”Fredriksberg D” in Finland – 73% let
21 21
18 1817 17
19
15 1514
15
0
5
10
15
20
25
0
50 000
100 000
150 000
200 000
250 000
300 000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020
Finland
Norway
Denmark
Sweden
Number of ongoing andcompleted projects
Lettable space, sqm
2020-11-06
27
Letting on same level as previous quartersImpacted by corona pandemic uncertainty – but still activity in the market
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
2018 2019 2020
Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter(% of available unlet area)
2020-11-06
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020
Letting ratio
28
Letting and completion statusLetting higher than completion ratio in the property development
2020-11-06
29
Earnings
Q3 Jan-Sep
R12
Oct 19-Sep 20 Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
Earnings in segments (all BAs) 592 583 1,288 896 2,043 1,651
NCC HQ and subs 17 -7 -75 -149 -130 -204
Internal gains -35 16 -52 -39 -37 -24
Other Group Adjustments -7 -24 -180 -82 -226 -126
Other & Eliminations total -25 -15 -307 -269 -393 -354
EBIT 567 568 981 626 1,651 1,296
Financial items -19 -32 -60 -81 -91 -112
EBT 548 536 922 545 1,560 1,184
Tax -61 -77 -83 -78 -313 -309
Profit for the period 488 459 839 467 1,246 875
2020-11-06
Strong cashflow
Q3 Jan-Sep
R12
Oct 19-
Sep 20 Jan-Dec
SEK M 2020 2019 2020 2019 2019/2020 2019
From operating activities
792 947 1,579 1,326 3,027 2,774
From property projects
-595 -714 -558 -1,514 -209 -1,165
Other workingcapital
-121 -914 -430 -1,328 1,503 605
Investing activities -140 -132 -241 -547 -396 -701
Cash flow before financing
-63 -814 350 -2,063 3,925 1,512
SEK Bn
30
Q32018
Q4 Q12019
Q2 Q3 Q4 Q12020
Q2 Q3
-3
-2
-1
0
1
2
3
4
R12
Cash flow before financing
2020-11-06
-3 251-2 738
-1 852-2 139
-3 021
-175
-8 500
-7 500
-6 500
-5 500
-4 500
-3 500
-2 500
-1 500
-500
500
2019 Q3 2020 Q3
Corporate net debt
Leasing liabilities (incl IFRS 16)
Pension liability
31
Net debt per Sep 30
*Corporate net debt excluding pension liabilities and leasing liabilities according to IFRS16 Leasing
**
Net debt* / EBITDA
Target < 2.5x
R12 0.08x
2020-11-06
32
Tomas CarlssonCEO
• Digital EGM – voting digital or by mail
• More information on www.ncc.com/ir
33
EGM Nov 12, 2020
Proposed dividend
2.50 SEK per share
2020-11-06
34
Welcome to
Capital Market Meeting, 18 November
For more informationwww.ncc.com/ir
2020-11-06
• Margins and earnings better or on par with last year
‒ In all contracting business areas and in Industry
‒ Property Development had no property sale this quarter
• Strong cash flow
• Different drivers behind low orders received
‒ Prudent tendering, more early involvement and quarterly variation
• Order backlog higher than net sales in all BAs
35
In summary: Stable earnings, good cash flow and order backlog in shape
2020-11-06
36 2020-11-06 NCC AB
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