Q1 2020 Presentation 1 2020-04-28 Tomas Carlsson CEO 2 - PowerPoint PPT Presentation

Q1 2020 Presentation 1 2020-04-28

Tomas Carlsson CEO 2 2020-04-28

Strong cashflow and continued improvements • Good orders received • Strong cash flow with 1 bn SEK from operating activities • Earnings up from last year • Seasonally low activity 3 2020-04-28

NCC and the coronavirus • 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 4 2020-04-28

Strong orders received Contributions from all business areas SEK M 25,000 20,000 15,000 10,000 5,000 17,521 13,834 12,738 17,750 15,501 16,070 12,769 13,708 15,458 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 5 2020-04-28

Order backlog strong All BAs building order backlog 70,000 60,000 50,000 40,000 30,000 20,000 10,000 58,851 58,741 56,587 56,837 61,370 63,027 61,658 57,800 62,333 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 6 2020-04-28

Net Sales on par with last year SEK M 25,000 20,000 15,000 10,000 5,000 10,894 14,349 14,269 17,832 11,434 14,610 13,951 18,239 11,766 0 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 7 2020-04-28

Earnings up in seasonally low quarter PD but also Building Nordics and Infrastructure contributing SEK M 500 400 Operating margin 300 Q1 200 -0.6% 2020 100 0 Q1 -364 -352 -69 -3.1% -100 2019 -200 -300 -400 -500 Q1 2018 Q1 2019 Q1 2020 8 2020-04-28

Stronger underlying earnings BA Infrastructure, Building Sweden, BA Property Development Building Nordics & Industry SEK M SEK M 400 400 300 300 200 200 100 100 16 323 0 0 -301 -238 -201 -20 -100 -100 -200 -200 -300 -300 -400 -400 Q1 2018 Q1 2019 Q1 2020 Q1 2018 Q1 2019 Q1 2020 9 2020-04-28

Maintained low accident frequency level LTIF Group 1 Day R12 Q1 2020 500 16 14.4 14 400 12 10.9 10.6 9.5 10 300 8.8 8.1 7.5 7.2 8 7.0 7.0 200 6 4 100 2 407 315 300 241 202 246 204 257 176 172 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 R12 Number of accidents LTIF 1 Day 10 2020-04-28

Road Services • Divestment taking longer than expected • Independent legal structure in place • Turnaround activities continues • Prudent tendering 11 2020-04-28

Susanne Lithander CFO 12 2020-04-28

NCC Infrastructure Fifth quarter with improved earnings compared to previous year Net Sales Q1 R12, Apr-Mar Jan-Dec 2020 2019 2019/2020 2019 SEK M Orders received 4,415 4,840 16,176 16,601 Norway 21% (19) Order backlog 20,775 22,460 20,775 20,389 Net sales 3,791 3,649 17,567 17,425 Denmark 8% (7) EBIT 39 8 243 212 Sweden EBIT margin, % 1.0 0.2 1.4 1.2 71% (74) 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 13 2020-04-28

NCC Building Sweden Earnings 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 14 2020-04-28

NCC Building Nordics Improved earnings and a strong order backlog Net Sales Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 Denmark Orders received 3,247 4,187 15,141 16,080 33% (34) Finland Order backlog 16,916 13,132 16,916 15,807 53% (50) Net sales 2,856 2,567 12,057 11,769 EBIT 50 34 247 231 Norway 14% (16) EBIT margin, % 1.7 1.3 2.1 2.0 15 2020-04-28

NCC Industry Seasonally low activity – stable compared to last year Net Sales Q1 R12, Apr-Mar Jan-Dec Finland SEK M 2020 2019 2019/2020 2019 4 (2)% Norway Orders received 3,412 3,372 12,893 12,852 13 (12)% Order backlog 5,098 5,188 5,098 2,967 Net sales 1,314 1,265 13,020 12,971 Denmar EBIT -362 -385 534 511 k 23 Sweden (24)% 60 (62)% Operating margin % -27.6 -30.5 4.1 3.9 ROCE % 9.3 9.0 16 2020-04-28

NCC Industry: Stone and asphalt volumes Both stone material and asphalt volumes up compared to previous years Asphalt sold, thousands of tons Stone material sold, thousands of tons 10,000 3,000 9,000 8,000 2,500 7,000 2,000 6,000 5,000 1,500 4,000 1,000 3,000 2,000 500 105 166 176 1,000 2,063 2,460 1,788 1,904 2,518 1,512 5,306 9,083 7,347 7,539 5,216 7,999 7,880 7,244 6,078 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2018 2019 2020 17 2020-04-28

NCC Property Development Divestment 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 18 2020-04-28

One new project started in Q1 HQ for Fiskars in Finland – project ”Next” No. of projects Lettable space, sqm 300,000 19 15 250,000 17 15 17 18 200,000 21 21 18 Sweden 150,000 Norway Denmark Finland 100,000 50,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 19 2020-01-30 NCC AB

Letting on normal levels Letting agreements signed also post-corona in start of Q2 300,000 55% 50% 250,000 45% 40% 200,000 35% 30% 150,000 25% 20% 100,000 15% 10% 50,000 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter (% of available unlet area) 20 2020-04-28

Letting and completion status in the property portfolio 100% 90% 80% 70% 60% Letting ratio 50% Completion ratio 40% 30% 20% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 21 2020-04-28

Earnings Q1 R12, Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 Earnings in segments (all BAs) 122 -258 2,030 1,651 NCC 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 22 2020-04-28

Strong cashflow SEK Bn R12 R12, 4 Q1 Apr-Mar Jan-Dec SEK M 2020 2019 2019/2020 2019 3 From operating 34 -216 3,023 2,774 activities 2 From property 296 -209 -660 -1,165 projects 1 Other working 673 478 800 605 capital 0 Investing 15 -194 -493 -701 activities -1 Cash flow before 1,018 -140 2,670 1,512 financing -2 -3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2018 2019 Cash flow before financing 23 2020-04-28

Net debt per March 31 2,000 Net debt* / EBITDA 1,000 ** R12 N/A 874 0 -1,000 -2,304 -3,195 Corporate net debt -2,000 Leasing liabilities (incl IFRS 16) *Corporate net debt excluding Pension liability pension liabilities and leasing -3,000 -1,875 liabilities according to IFRS16 Leasing -4,000 **Corporate net debt/EBITDA is -2,153 -665 -0.39 -5,000 -6,000 2019 Q1 2020 Q1 24 2020-04-28

Tomas Carlsson CEO 25 2020-04-28

NCC and corona • To date no material impact on group level • Future impact difficult to assess • Construction industry trails GDP development with some mitigation 26 2020-04-28

Strong cashflow and continued improvements • Good orders received • Strong cash flow with 1 bn SEK from operating activities • Earnings up from last year • Seasonally low activity 27 2020-04-28

NCC: On the right track in Q1 • 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 28 2020-04-28

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