Consti Oyj · OMXHEX:CONSTI
Consti Oyj — Danske Small & Mid Cap Seminar 2018
32 slides from Consti Oyj's conference presentation, May 29, 2018
Slide 1: Consti Group Plc – Danske Small & Mid Cap Seminar
CONSTI GROUP PLC DANSKE SMALL & MID CAP SEMINAR 29 MAY 2018 CEO Esa Korkeela Building renovation specialist | www.consti.fi
Slide 2: Contents
Contents Consti in brief and Group strategy Q1 2018 highlights and Group performance Market outlook and guidance Building renovation specialist | www.consti.fi
Slide 3: Overview of Consti – leading renovation and technical services provider in Finland
Overview of Consti – one of the leading renovation and technical services provider in Finland Consti in brief Net sales development 350 Net sales (EURm) Established in 2008 300 300 256 262 Comprehensive service offering 250 covering technical building services, 216 building facades, renovation 2
Slide 4: Consti Group comprises three complementary operating segments based in Finland
Consti Group comprises three complementary operating segments based in Finland Building Technical Building Services Renovation Contracting Facades (“TBS”) (“RC”) (“BF”) 28% Share of 39% net sales 37% 37% in 2017 33% 26% Pipeline renovations of Renovation of building Renovation contracting of n
Slide 5: Diverse customer mix protects against market fluctuations
Diverse customer mix protects against market fluctuations, presence in the Finnish growth centres Net sales by customer groups in 2017 Net sales by geographical area in 2017 Individual housing corporations and their property managers 10% Helsinki & Corporations 11% Uusimaa 15% Tampere & Housing 2017
Slide 6: Examples of Consti projects
Examples of Consti projects Examples of 2017 projects Oy Ässäkeskus Ab and KOy Scandic Hotel Marski, Helsinki Vallila premises, Helsinki ■ Complete renovation of the hotel ■ Oy Ässäkeskus Ab’s facility property and renewal of technical modifications and repairs to building services systems technical
Slide 7: Examples of Consti projects
Examples of Consti projects Projects ongoing or finished during 2017 Korkeavuorenkatu 21, Helsinki Espoonlahti church, Espoo ■ Modification of the use of building, ■ Extensive renovation including ia. where a building serving decades as modernisation of all facilities, office space, will be fully re
Slide 8: Project business – dispersed project base with small median project size
Consti Group’s project business – Dispersed project 84% base with a relatively small median project size Dispersed project base and a relatively small median project size Project types: payment basis / performance obligation Median project size (LHS) # of projects (RHS) Fixed Target Cost + fee 350 8
Slide 9: Service business – service, repairs and installations across business areas
16% Consti Group’s service business – Service, repairs and installations across business areas Service business net sales & share of total net sales Service business & contract types Net sales (EURm) Consti Consti Consti Share of total net sales TBS BF RC 50 35,0 % 47 Service Fixed-term service cont
Slide 10: Good development in personnel KPIs in 2017
Good development in personnel KPIs in 2017 Blue collar / White collar Permanent / Fixed term Personnel at year end (average) 2017 (2016) 2017 (2016) 4% 1 200 (9%) 1 000 1 079 800 890 935 (1 088) 42% (933) (43%) 600 (910) 58% (57%) 400 96% (91%) 200 0 2015 2016 2017 Blue collar White collar Fixed ter
Slide 11: Building renovation specialist
10 28/05/2018 Building renovation specialist | www.consti.fi
Slide 12: Strategic initiatives aim at achieving long-term goals
16% Consti’s strategic initiatives aim at achieving the Group’s long-term goals – giving also short-term benefits Strategic initiative Objectives Key projects / activities 1 • Performance management on all org. levels • Best-in-class lead time and productivity • Profitable and • Efficient and agile
Slide 13: Q1 2018 Highlights and Group Performance
Q1 2018 Highlights and Group Performance 12 28/05/2018 Building renovation specialist | www.consti.fi
Slide 14: Highlights of the first quarter of 2018
Highlights of the first quarter of 2018 Highlights of 1-3/2018 (y-o-y comparison in brackets) Net sales EUR 62.3 (57.3) million, growth 8.7% Number of EBITDA EUR 0.2 (0.8) million, EBITDA margin 0.4% (1.3 %) personnel at the end of March 2018: EBIT EUR -0.2 (0.3) million, EBIT margin -0.3% (0.
Slide 15: Quarterly performance overview
14 Q1/16 51,4 Q2/16 64,8 Q3/16 70,6 Q4/16 74,8 Q1/17 57,3 28/05/2018 Q2/17 78,8 Q3/17 77,8 Quarterly net sales (EUR m) Q4/17 86,3 Q1/18 62,3 Q1/16 51,2 Q2/16 75,6 Building renovation specialist Q3/16 30,3 | Q4/16 66,1 Q1/17 59,5 Q2/17 83,0 Quarterly performance overview www.consti.fi Q3/17 30,7 Q4/1
Slide 16: Quarterly net sales development
Quarterly net sales development First quarter net sales up by 8.7% Quarterly net sales development Q1/2016 – Q1/2018 (EUR m) Comments ■ Q1/2018 net sales EUR 62.3m (57.3 m) – Year-on-year sales growth 8.7% (EUR 95 86,3 5.0m) Quarterly net sales (EUR million) 78,8 77,8 • Organic growth 4.5% (EUR 2.6m
Slide 17: Quarterly EBIT development
Quarterly EBIT development Profitability not yet on a satisfactory level but clear improvement compared to previous quarter Quarterly EBIT development Q1/2016 – Q1/2018 (EUR m) Comments 8 8% ■ Q1/18 EBIT amounted to EUR -0.2 (0.3) million, or -0.3% (0.5 %) of net sales 5,9 % – Operating result was w
Slide 18: Actions to improve profitability on-going
Actions to improve profitability on-going Reorganisation of TBS business area was completed during Q1/2018 New TBS organisation Comments – Reorganisation of the Technical Building Services business area • New organisation in place as of 1 Jan 2018 Technical Pipeline Service • Implementation of proce
Slide 19: Actions to improve profitability on-going
Actions to improve profitability on-going In Consti’s decentralised operating model branch units have accountability. Increased focus on standardized project steering and discipline. Financial reporting responsibilities clarified Key steering responsibilities Key execution and reporting responsibili
Slide 20: Quarterly order intake development
Quarterly order intake development Strong order inflow continued, Q1 order intake up by 22.2 % y-o-y Quarterly order intake development Q1/2016 – Q1/2018 (EUR m) Comments 104,9 ■ Q1/2018 order intake EUR 72.7 million (59.5m), up by 22.2% y-o-y 16,7 95 – Order intake increased in all business 83,0 ar
Slide 21: Examples of new orders received in Q1/2018
Examples of new orders received in Q1/2018 TECHNICAL BUILDING RENOVATION BUILDING SERVICES CONTRACTING FACADES Q1/18 order intake: Q1/18 order intake: Q1/18 order intake: EUR 21.0m (+13.0% yoy) EUR 19.6m (+77.8 % yoy) EUR 35.9 m (8.3% yoy) EXAMPLES OF NEW ORDERS: EXAMPLES OF NEW ORDERS: EXAMPLES OF
Slide 22: Quarterly order backlog development
Quarterly order backlog development Backlog continued to grow, up by 17.5 % y-o-y Quarterly order backlog development Q1/2016 – Q1/2018 (EUR m) Comments ■ Q1/2018 order backlog at EUR 250.2 250,2 million (212.9m) 250 227,9 225,7 – Year-on-year growth +17.5% 212,6 212,9 – Up by 10.8% from year-end 20
Slide 23: Q1 2018 Cash flow and Financial Position
Q1 2018 Cash flow and Financial Position 22 28/05/2018 Building renovation specialist | www.consti.fi
Slide 24: Quarterly free cash flow development
Quarterly free cash flow development Free cash flow affected by increase in working capital in Q1/2018 Quarterly free cash flow and EBITDA Q1/2016 – Q1/2018 (EUR m) Comments 10 ■ Q1/2018 free cash flow amounted to EUR -7.8m (-0.5m) Average cash 8 conversion1) 80% Free cash flow and EBITDA (EUR milli
Slide 25: Quarterly net working capital development
Quarterly net working capital development Net working capital at EUR -7.8 million at the end of Q1/2018 Quarterly net working capital1) Q1/2016 – Q1/2018 (EUR m) Comments Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 ■ Net working capital EUR -7.8m (-7.0m) at 0 the end of Q1/2018 NWC tied up
Slide 26: Quarterly balance sheet structure
Quarterly balance sheet structure Financial position affected by negative free cash flow in the quarter Quarterly net debt, equity ratio and gearing Q1/2016 – Q1/2018 Comments 25 100% ■ Q1/2018 net debt at EUR 20.3m (15.0m) 90% ■ Q1/2018 equity ratio at 30.9% (37.2%) 80,5 % 20 76,1 % 80% ■ Q1/2018 g
Slide 27: Market Outlook and Guidance
Market Outlook and Guidance 26 28/05/2018 Building renovation specialist | www.consti.fi
Slide 28: Lead indicators for the Finnish economy and construction remain good
Lead indicators for the Finnish economy and construction continue to remain on a good level Economic Sentiment and Construction Confidence / Finland (2007 – 3/2018) Comments 150 Economic Sentiment Indicator ■ Economic sentiment in Finland 140 Construction Confidence Indicator has steadily improved s
Slide 29: Stable growth in renovation to continue
Stable growth in renovation to continue Finnish new building and renovation market development Comments EURb Renovation volume (real) New building volume (real) ■ The peak of the economic cycle in construction sector on-going 30 – Challenges in availability of 26,7 27,1 building technology and 26,4
Slide 30: Key structural growth drivers of renovation market
Demand-driven renovation market growth supported by a number of key structural growth drivers Ageing building stock Energy efficiency Million m2 Finnish building stock by construction year Buildings achieve age of 50 years (approx): 100 Urbanisation and concentration of ~2017 ~2025-2035 ~2045 90 88,
Slide 31: Guidance for financial year 2018
Guidance for financial year 2018 “The Company estimates that its operating result for 2018 will grow compared to 2017.” 30 28/05/2018 Building renovation specialist | www.consti.fi
Slide 32: Thank you
CONSTI GROUP PLC 29 MAY 2018 THANK YOU CONSTI GROUP PLC HOPEATIE 2 FI-00440, HELSINKI BUSINESS ID 2203605-05 31 WWW.CONSTI.FI28/05/2018 Building renovation specialist | www.consti.fi