Consti Oyj · OMXHEX:CONSTI
Consti Oyj — Q1 2024 Earnings Presentation
27 slides from Consti Oyj's earnings presentation, Apr 25, 2024
Slide 1: Consti Plc Interim Report 1 January – 31 March 2024
CONSTI PLC INTERIM REPORT 1 JANUARY – 31 MARCH 2024 CEO Esa Korkeela CFO Joni Sorsanen
Slide 2: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 1 25 April 2024 Consti Plc / Interim Report 1-3/2024
Slide 3: Highlights of the first quarter of 2024
Highlights of the first quarter of 2024 Solid performance in a challenging market EUR EUR EUR -3.4m -0.4m +0.5m y-o-y y-o-y y-o-y NET SALES: EBIT: FREE CASH FLOW: EUR 65.5m EUR 0.2m EUR -0.5m EUR EUR No. -4.4m -9.4m +11 y-o-y y-o-y y-o-y NET DEBT: ORD. BACKLOG: PERSONNEL: EUR 1.3m EUR 244.4m 1 031 2
Slide 4: Quarterly performance overview
Quarterly performance overview Net sales decreased by 4.9% y-o-y. Selective and disciplined tendering activities, together with intensified competition and weaker demand, impacted Q1 order intake and order backlog QUARTERLY NET SALES (EUR m) QUARTERLY ORDER INTAKE (EUR m) QUARTERLY ORDER BACKLOG (EU
Slide 5: Quarterly net sales development
Quarterly net sales development Q1 net sales amounted to EUR 65.5m (68.9m) in seasonally low first quarter Quarterly net sales development Q1/2022 – Q1/2024 (EUR m) Comments ■ Q1/2024 net sales EUR 65.5m (68.9m) 115 – Year-on-year change -4.9% 93,3 89,9 – Consti’s business volumes are typically lowe
Slide 6: Quarterly EBIT development
Quarterly EBIT development Q1 profitability was impacted by the lower net sales level than in the comparison period and changes in the relative net sales shares of business areas y-o-y Quarterly EBIT development Q1/2022 – Q1/2024 (EUR m) Comments 8 8% ■ Q1/2024 EBIT amounted to EUR 0.2 (0.7) million
Slide 7: Quarterly order intake development
Quarterly order intake development Q1/2024 order intake EUR 36.3 million (58.6m) Quarterly order intake development Q1/2022 – Q1/2024 (EUR m) Comments ■ Q1/2024 order intake EUR 36.3m (58.6m) 109,1 106,5 100 – Year-on-year change -38.0% 98,7 – Selective and disciplined tendering activities, 91,6 Qua
Slide 8: Quarterly order backlog development
Quarterly order backlog development Q1/2024 order backlog at EUR 244.4 million Quarterly order backlog development Q1/2022 – Q1/2024 (EUR m) Comments 350 ■ Q1/2024 order backlog at EUR 244.4m (253.8m) – Year-on-year change -3.7% 300 – In absolute and relative terms, a larger share of 297,9 March 202
Slide 9: Number of personnel and other HR KPIs
Number of personnel and other HR KPIs Positive trend in personnel turnover, absence rate as well as in accident rate. Consti employed 1,031 (1,008) professionals at quarter-end Average number of personnel Permanent personnel turnover ratio Accident rate / LTIFR Average absence rate (%) 2019 – Q1/202
Slide 10: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 9 25 April 2024 Consti Plc / Interim Report 1-3/2024
Slide 11: Quarterly free cash flow development
Quarterly free cash flow development Q1 2024 free cash flow EUR -0.5 million, improvement of EUR 0.5m year-on-year Quarterly free cash flow1) and EBITDA Q1/2022 – Q1/2024 (EUR m) Comments 25 ■ Q1/2024 free cash flow EUR -0.5m (-1.0m) – EBITDA amounted to EUR 1.3m (1.5m) Free cash flow and EBITDA (EU
Slide 12: Quarterly net working capital development
Quarterly net working capital development Net working capital at EUR -15.9 million at the end of Q1/2024 Quarterly net working capital1) Q1/2022 – Q1/2024 (EUR m) Comments Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 ■ Net working capital EUR -15.9m (-16.0m) at the end of Q1/2024 0 Net work
Slide 13: Quarterly balance sheet structure
Quarterly balance sheet structure Strong financial position at the quarter-end Quarterly net debt development (EUR m) Quarterly equity ratio and gearing development Comments Q1/2022 – Q1/2024 Q1/2022 – Q1/2024 30 100% ■ Q1/2024 net debt at EUR 1.3m (5.7m), of which EUR 4.8m (4.2m) attributable to 25
Slide 14: Maturity distribution of interest-bearing debt
Maturity distribution of interest-bearing debt (31 March 2024) Gross interest-bearing debt (excl. IFRS 16) EUR 15.1m at quarter-end, decrease of EUR 3.4m y-o-y Maturity profile of interest-bearing debt1) as per 31 Mar 2024 (EUR m) Comments 30 ■ Consti’s gross interest-bearing debt at EUR 15.1 millio
Slide 15: Reported ROI and Consti ROCE
Reported ROI1) and Consti ROCE2) Return on capital continues to be on a good level Reported ROI1) and Consti ROCE2) Q4/2020 – Q1/2024 (%) Comments ■ In financial years 2020-2023, Consti’s return on 35,3 % 40% 33,0 % capital employed has exceeded 20% 31,6 % 30,0 % 35% 29,3 % 27,8 % ■ Q1 2024 Consti R
Slide 16: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 15 25 April 2024 Consti Plc / Interim Report 1-3/2024
Slide 17: Economic sentiment and construction confidence in Finland below long-term average
Economic sentiment and construction confidence in Finland clearly below their long-term average levels Economic Sentiment and Construction Confidence / Finland (2007 – 3/2024) Comments 150 ■ Negative development in the Economic Economic Sentiment Indicator Sentiment Indicator (ESI) since 2022 140 ES
Slide 18: Renovation growth halted in 2023, new building declined by 20%
Renovation growth halted in 2023, while new building declined by 20% y-o-y, renovation market projected to remain relatively stable in 2024 Finnish new building and renovation market development 2008 – 2026 (Euroconstruct) Comments EUR b Renovation volume (real) New building volume (real) ■ The Conf
Slide 19: Demand outlook for construction weakened by high costs and interest rates
The demand outlook for construction weakened by persistently high construction costs, rapidly increased interest rates and tighter availability of financing Persistently high Rapidly increased interest construction costs rates 120 5 +18% Substantial tightening of 118 +4% banks’ credit standards 4 11
Slide 20: Ageing building stock, urbanisation and sustainability to create demand
Ageing building stock, urbanisation and the growing significance of sustainability to create demand going forward Urbanisation and changes in the Sustainability and energy Growing complexity in construction Ageing building stock use of buildings efficiency and tightening legislation Different types
Slide 21: Outlook and guidance for 2024
Outlook and guidance for 2024 ■ In 2024, Finland's construction volume is estimated to decrease by approximately 5 percent from the previous year. Renovation is predicted to decline by approximately 1 % in 2024 while new residential construction is expected to decrease by as much as 22 % ■ Consti an
Slide 22: Summary
Summary 1. Net sales decreased in line with expectations in seasonally low first quarter Operationally, the first quarter of the year proceeded as expected, with projects progressing predominantly 2. according to plan Selective and disciplined tendering activities, together with intensified competit
Slide 23: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 22 25 April 2024 Consti Plc / Interim Report 1-3/2024
Slide 24: Consti's strategic focus areas
To realise its vision and goals, Consti has defined the following strategic focus areas: •1 Growth in construction Profitable development of current business, expansion in the construction value chain, capitalising on attractive opportunities in new construction, strengthening special expertise •2
Slide 25: Consti's solutions to improve energy efficiency of buildings
Consti’s solutions to improve energy efficiency of buildings and to help customers to achieve their climate goals Consti OPTIMI VODAVOL Energy solutions for housing companies Building technology system Facade solution ENERGY SOLUTION OF THE YEAR 2022 • Reduces total energy consumption by up to 50% •
Slide 26: Consti as an investment - Key investment highlights
Consti as an investment - Key investment highlights ■ Steadily improving profitability ■ Aging building stock driving need-based renovation ■ Solid platform for future growth ■ Climate change and energy efficiency requirements ■ Asset-light business model with negative working Financial ■ Urbanisati
Slide 27: Interim Report 1-3/2024 Consti Plc
INTERIM REPORT 1-3/2024 CONSTI PLC Q1 CONSTI PLC VALIMOTIE 16 FI-00380, HELSINKI BUSINESS ID 2203605-05 WWW.CONSTI.FI 26 26 April 2019 Consti Group Plc / Interim Report 1-3/2019