Consti Oyj · OMXHEX:CONSTI
Consti Oyj — Q3 2022 Earnings Presentation
29 slides from Consti Oyj's earnings presentation, Oct 27, 2022
Slide 1: Consti Plc Interim Report 1 January – 30 September 2022
CONSTI PLC INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2022 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 27 October 2022 Consti Plc / Interim Report 1-9/2022
Slide 3: Highlights of 1-9/2022 and Q3/2022
Highlights of 1-9/2022 and Q3/2022 Solid performance continued and net sales grew NET SALES: ADJUSTED EBIT: FREE CASH FLOW: EUR 212.0m EUR EUR 6.6m EUR EUR 7.6m EUR 1-9/2022 +3.0m 1-9/2022 +0.2m 1-9/2022 +2.2m EUR +5.8m Q3/2022 EUR +0.1m Q3/2022 EUR +8.3m Q3/2022 EUR 79.0m EUR 3.3m EUR 5.8m EUR EUR
Slide 4: Quarterly performance overview
Quarterly performance overview Net sales grew +4.0% year-on-year, while order intake decreased -4.0% and order backlog -3.4% QUARTERLY NET SALES (EUR m) QUARTERLY ORDER INTAKE (EUR m) QUARTERLY ORDER BACKLOG (EUR m) FY’20 NET FY’21 NET FY’20 ORD. FY’21 ORD. SALES: SALES: INTAKE: INTAKE: EUR 274.6m E
Slide 5: Quarterly net sales development
Quarterly net sales development Q3 net sales amounted to EUR 79.0m, growing 4.0% year-on-year Quarterly net sales development Q1/2020 – Q3/2022 (EUR m) Comments ■ Q3/2022 net sales EUR 79.0m (76.0m) 115 – Year-on-year growth 4.0% 95 – Housing Companies net sales EUR 30.6m (27.6m) ➔ net Quarterly Net
Slide 6: Quarterly Adjusted EBIT and EBIT development
*Adjusted EBIT = EBIT before items affecting comparability (IAC) Quarterly Adjusted EBIT and EBIT development ▪ IAC during the reporting period and comparison periods = Financial impact of arbitral award received in Q3 profitability in line with expectations June 2021 as well as legal cost related t
Slide 7: Quarterly order intake development
Quarterly order intake development Q3/2022 order intake amounted to EUR 38.4 million Quarterly order intake development Q1/2020 – Q3/2022 (EUR m) Comments ■ Q3/2022 order intake EUR 38.4m (40.0m) 100 – Year-on-year change -4.0% 98,7 98,5 – Examples of new orders received in Q3: Quarterly order intak
Slide 8: Quarterly order backlog development
Quarterly order backlog development Q3/2022 order backlog at EUR 210.5 million Quarterly order backlog development Q1/2020 – Q3/2022 (EUR m) Comments 300 ■ Q3/2022 order backlog at EUR 210.5m (217.9m) – Year-on-year change -3.4% 250 – Order backlog down by -3.7% compared to the end of the previous f
Slide 9: Quarterly development in number of personnel
Quarterly development in number of personnel Total number of personnel 988 at the end of Q3/2022, somewhat below last year’s level Quarterly development in number of personnel Q1/2020 – Q3/2022 Comments 1200 ■ Number of personnel at the end of Q3/2022 988 (998), reduction of 10 998 994 990 977 977 9
Slide 10: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 9 27 October 2022 Consti Plc / Interim Report 1-9/2022
Slide 11: Quarterly free cash flow development
Quarterly free cash flow development Q3/2022 free cash flow improved clearly year-on-year and was EUR 5.8 million Quarterly free cash flow1) and EBITDA Q1/2020 – Q3/2022 (EUR m) Comments 25 ■ Q3/2022 free cash flow EUR 5.8m (3.6m) – EBITDA amounted to EUR 4.2m (4.0m) Free cash flow and EBITDA (EUR m
Slide 12: Quarterly net working capital development
Quarterly net working capital development Net working capital at EUR -12.3 million at the end of Q3/2022 Quarterly net working capital1) Q1/2020 – Q3/2022 (EUR m) Comments Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 ■ Net working capital EUR -12.3m (-10.2m) at the end 0 of Q3/2
Slide 13: Quarterly balance sheet structure
Quarterly balance sheet structure Q3 financial position strengthened year-on-year as well as compared to previous quarter Quarterly net debt, equity ratio and gearing Q1/2020 – Q3/2022 Comments 30 100% ■ Q3/2022 financial position strengthened during the 90% third quarter 25 76,3 % 80% – Improvement
Slide 14: Maturity distribution of interest-bearing debt (30 September 2022)
Maturity distribution of interest-bearing debt (30 September 2022) Gross interest-bearing debt decreased by EUR 3.5 million in Q3 Maturity profile of interest-bearing debt1) as per 30 September 2022 (EUR m) Comments 35 ■ Consti’s gross interest-bearing debt at EUR 22.7 million (excluding IFRS 16) at
Slide 15: Reported ROI and Consti ROCE
Reported ROI1) and Consti ROCE2) Solid return on capital employed Reported ROI1) and Consti ROCE2) Q4/2019 – Q3/2022 (%) Comments 30% ■ During the past two years, Consti’s return on capital 25,2 % 25,0 % 24,9 % 24,3 % employed has exceeded 20% 22,6 % 22,4 % 22,0 % 21,9 % 21,7 % 25% 19,0 % ■ Q3 2022
Slide 16: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 15 27 October 2022 Consti Plc / Interim Report 1-9/2022
Slide 17: Economic sentiment and construction confidence in Finland
Economic sentiment and construction confidence in Finland developed in opposite directions in September 2022 Economic Sentiment and Construction Confidence / Finland (2007 – 9/2022) Comments 150 ■ In September 2022, the Economic Sentiment Economic Sentiment Indicator Indicator (ESI) continued its st
Slide 18: Renovation to outgrow new building in 2022-24
Renovation to outgrow new building in 2022-24, both residential and non- residential renovation projected to grow going forward Finnish new building and renovation market development 2008 – 2024 Comments EUR b Renovation volume (real) New building volume (real) ■ According to Euroconstruct, the valu
Slide 19: Consti has fared relatively well in the current inflationary market environment
Consti has fared relatively well in the current inflationary market environment Building cost index rose by 6.2% y-o-y and 0.1% m-o-m in September 2022. The growth rate of costs of materials has leveled off during Q3/2022 Building cost index by input heading Index figure Annual change (%) Annual cha
Slide 20: Consti OPTIMI, a great example of Consti's ability to generate valuable solutions
Consti OPTIMI , a great example of Consti’s ability to generate valuable and TM relevant solutions for our customers ■ A multi-energy system that manages the building's energy economy – efficient heating and cooling with the lowest possible electricity consumption ■ The system reduces total energy c
Slide 21: Finnish renovation market highly fragmented
Finnish renovation market highly fragmented Consti continued to be the largest player in Finnish renovation in 2021 Renovation sales of selected renovation peers in 2021 Fragmented Finnish renovation market* (EUR m) Estimated market shares of selected peers in 2021 0 25 50 75 100 125 150 175 200 225
Slide 22: Outlook and guidance for 2022
Outlook and guidance for 2022 ■ Russia's military aggression and cost inflation together with rising interest rates create uncertainty in Consti’s operating environment – This uncertainty may lead to the rescheduling of some projects in the negotiation phase, as well as the postponement of investmen
Slide 23: Summary
Summary 1. Solid performance continued in Q3 despite inflationary market environment 2. Q3 net sales grew 4.0% year-on-year, Q3 order intake and order backlog slightly below comparison period 3. Financial position strengthened from previous quarter as a result of improved profitability and cash flow
Slide 24: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Market outlook, guidance and summary 4. Appendix 23 27 October 2022 Consti Plc / Interim Report 1-9/2022
Slide 25: Consti's strategic focus areas
To realise its vision and goals, Consti has defined the following strategic focus areas: 1• Growth in current business controlled and profitable growth in attractive renovation and building technology segments 2• New businesses comprehensively answering customer needs by growing in attractive ne
Slide 26: Consti's Net Impact Profile
Consti’s Net Impact Profile Consti creates positive societal and environmental impacts by using scarce human capital and environmental resources Consti Group’s Net Impact Profile (analysis by Upright Project) Comments ■ Consti Group’s overall impact on the environment, health, society, and knowledge
Slide 27: Consti's Green Transition
More information on the progress of Consti’s Consti’s Green Transition sustainability work can be found in the sustainability report published in April -22 ■ Consti has announced CO2 emission reduction targets for its own operations (Scope 1–2) ■ Consti’s target is to reduce its own CO2 emissions by
Slide 28: Consti as an investment - Key investment highlights
Consti as an investment - Key investment highlights ■ Successful turnaround since 2019 ■ Aging building stock driving need-based renovation ■ Steadily improving profitability ■ Climate change and energy efficiency requirements ■ Solid platform for future growth Financial ■ Urbanisation and changes i
Slide 29: Interim Report 1-9/2022 Consti Plc
INTERIM REPORT 1-9/2022 CONSTI PLC Q3 CONSTI PLC VALIMOTIE 16 FI-00380, HELSINKI BUSINESS ID 2203605-05 WWW.CONSTI.FI 28 26 April 2019 Consti Group Plc / Interim Report 1-3/2019