Srv Yhtiot Oyj · OMXHEX:SRV1V
Srv Yhtiot Oyj — SRV — Q1 2013 Earnings Presentation
28 slides from Srv Yhtiot Oyj's earnings presentation, May 7, 2013
Slide 1: SRV – Building for life
SRV – Building for life Interim report January – March 2013 Jukka Hienonen CEO 7.5.2013
Slide 2: Revenue increased – projects progressed in Russia
Revenue increased – projects progressed in Russia • Group’s revenue increased, operating profit weakened - Revenue EUR 158.4 million, 12.6% - Operating profit EUR 1.2 million, -31.5% • Investing in shopping centre construction in Russia progressed according to plan - Shopping centre Pearl Plaza will
Slide 3: Order backlog at a strong level
Order backlog at a strong level • Order backlog was EUR 726 million, (-4.5%), profit margins improved - Domestic order backlog grew to EUR 686.9 million (EUR 658.3 million) - Competitive contracting has been regarded more critically both in business premise and housing production - In housing produc
Slide 4: SRV Group Plc
SRV Group Plc Meur Revenue Meur Operating profit 200 4 180 3,1 160 2,4 140 2 1,8 120 1,2 100 170 175 80 156 158 141 60 0 40 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 -0,4 20 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 -2 Meur Order backlog Meur Profit before taxes 900 828 4 800 761 746 747 727 2,5 700 218 2,2 191 195 230 1
Slide 5: Order backlog
Order backlog 828 811 800 53 100 727 700 40 International 595 operations 600 336 20 489 349 297 500 32 303 Domestic 400 operations; 202 Housing 300 construction 439 Domestic 200 390 362 operations; 255 272 Business 100 premises construction 0 12/2009 12/2010 12/2011 12/2012 3/2013
Slide 6: Housing production and sales at a good level
Housing production and sales at a good level • Housing sales continued at a good level Q1/2013 - 135 (98) units were sold to consumers, 88 (35) to institutional investors - Last Twelve Months (LTM) housing sales: record-breaking 835 units - Economic uncertainty and rise in asset transfer tax have sl
Slide 7: Development of housing sales
Development of housing sales SRV's housing sales in Finland including institutional sales (units) 835 800 745 680 700 640 321 600 268 530 116 198 500 400 323 300 217 524 514 482 477 200 76 100 207 141 0 1-12/08 1-12/09 1-12/10 1-12/11 1-12/12 LTM Developer contracting projects Institutional sales; n
Slide 8: Development of housing production
Development of housing production Housing units under construction (units) 2 197 2 000 427 1 849 Unsold developer 1 629 1 633 contracting under 195 356 construction 1 500 284 280 230 321 237 Sold developer 966 contracting under 1 000 construction 231 1 575 32 536 1 263 1 024 1 116 500 Negotiation an
Slide 9: Development of SRV’s housing projects in Helsinki area relies on exploitation of railways
Development of SRV’s housing projects in Helsinki area relies on exploitation of railways • Kalasatama towers - six 20-33 storey residential towers connected to a metro station. Permitted building volume 90.000 m² - one appeal on city plan, project start in 2014 • Keilaniemi towers - four 32-40 stor
Slide 10: Domestic operations
Domestic operations Meur Revenue Meur Operating profit 200 10 180 160 8 140 120 6 100 5,8 80 151 157 4 140 135 60 121 5,4 40 2 3,4 20 1,9 1,6 0 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Meur Order backlog Meur New agreements 900 300 800 250 700 600 336 200 297 500 329 336 364 400
Slide 11: International operations
International operations Meur Revenue Meur Operating profit 25 4 2,4 20 2 15 23 0 10 20 19 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 18 16 -0,8 -1,1 5 -2 -1,9 -2,6 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 -4 Meur Order backlog 120 100 80 60 102 40 85 71 53 20 40 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 11
Slide 12: Russian shopping centre market is active
Russian shopping centre market is active • Pearl Plaza - 1.phase of the project approximately EUR 140 million, area approx. 92 000 m2 - SRV’s share 50% (investment EUR 20 million), financing from China - SRV acts as a project management constructor and is in charge of commercialisation - constructio
Slide 13: SRV’s focus in Russia is in St. Petersburg and Moscow
SRV’s focus in Russia is in St. Petersburg and Moscow 13
Slide 14: Co-investor arrangements support project development in Russia
Co-investor arrangements support project development in Russia • Investment company Russia Invest B.V. - Co-investor concept developed by SRV. The company will invest in SRV’s development projects in Moscow and St. Petersburg. SRV will be in charge of project development and acts as a project manage
Slide 15: Business premises ready for sale
Business premises ready for sale • Derby Business Park, Espoo - Three building office project developed by SRV, borders the new intersection of Turku motorway - Over 90% of premises leased, almost 600 parking spaces. 1. phase completed in 8/2012 including among others SRV head office. Phase II (incl
Slide 16: SRV repeats the outlook for 2013
SRV repeats the outlook for 2013 • The Group’s full-year revenue is estimated to be at least on a par with the previous year’s level • The Group’s result before taxes is expected to exceed the previous year’s level • Estimation does not include the possible sales of Derby and Etmia
Slide 17: Appendices
Appendices SRW
Slide 18: January – March 2013 in brief
January – March 2013 in brief 1-3/ 1-3/ change, change, 1-12/ (meur) 2013 2012 meur % 2012 ● Revenus, meur 158.4 140.7 +17.7 +13% 641.6 ● Operating profit, meur 1.2 1.8 -0.6 -32% 6.9 ● Profit before taxes, meur 0.7 0.3 +0.4 +153% 2.8 ● EPS, eur -0.03 -0.01 -0.02 +200% 0.02 ● Order backlog 1), meur 7
Slide 19: SRV:n tilauskanta säilyi vahvalla tasolla
SRV:n tilauskanta säilyi vahvalla tasolla 1-3/2013 lyhyesti • Positive trend in domestic housing construction continued - Housing sales in total 223 (133 units Q1/2012) • Domestic order backlog remained at a strong level (+4%) - Order backlog of business premise construction grew to EUR 390 million
Slide 20: Structure of housing production’s order backlog
Structure of housing production’s order backlog • Order backlog EUR 297 million - negotiated and construction contracts amount for 40% of order backlog - order backlog of own production under construction EUR 156 million - Share of completed projects 7% - structure of developed contracting productio
Slide 21: Domestic operations
Domestic operations change 1-3/ 1-3/ 1-12 1-3/13 vs 1-3/12 2013 2012 meur % 2012 Revenue 135.0 120.7 +14.4 +11.9% 568.3 - Business premises 67.5 61.9 +5.6 +9.0% 305.3 -construction Housing construction 67.5 58.7 +8.8 +15.0% 263.0 Operating profit 3.4 5.4 -2.0 -36.6% 14.8 Operating profit, % 2.5% 4.5
Slide 22: International operations
International operations change 1-3/ 1-3/ 1-12/ 1-3/13 vs 1-3/12 2013 2012 meur % 2012 Revenue 23.5 20.1 +3.4 +16.8% 73.1 Operating profit -0.8 -2.6 +1.8 -67.7% -3.2 Operating profit, % -3.6% -13.0% -4.4% Order backlog 39.8 102.4 -62.6 -61.1% 53.4 • Revenue increased due to advancements in construct
Slide 23: SRV Group
SRV Group change 1-3/13 1-3/ 1-3/ 1-12/ vs 1-3/12 2013 2012 Meur % 2012 Revenues, MEUR 158.4 140.7 +17.7 +12.6% 641.6 Operating profit, MEUR 1.2 1.8 -0.6 -31.5% 6.9 Operating profit, % 0.8% 1.2% 1.1% Financial income and exp., MEUR -0.5 -1.5 +1.0 -66.4% -4.1 Profit before taxes, MEUR 0.7 0.3 +0.4 +1
Slide 24: SRV’s development projects
SRV’s development projects
Slide 25: Finland’s first tower districts
Finland’s first tower districts • SRV will plan, construct and commercialise • Projects in co-operation with the city • Metro stations below the towers • Four residential towers to Keilaniemi • Six residential towers to Kalastama, a shopping centre, office and hotel towers and a healthcare centre •
Slide 26: Kalasatama centre
Kalasatama centre • SRV won the City of Helsinki’s competition for implementation of the metro block - plan includes construction, financing as well as selling and leasing of the premises. Total revenue 2011-2021 is estimated at EUR one billion. • Implementation contract was signed in August 2011 •
Slide 27: Keilaniemi Towers, Niittykumpu area
• Keilaniemi Towers, • Niittykumpu area Espoo development, Espoo • Residential tower project developed by • Area development project developed by SRV adjacent to Keilaniemi metro station SRV adjacent to future Niittykumpu • four 32-40-storey towers metro station • a tunnel will be built for Ring Roa
Slide 28: Perkkaa area, Projects in Jätkäsaari
• Perkkaa area • Projects in Jätkäsaari development, Espoo district, Helsinki • Pilot project of SRV and VVO for sustainable building “Airut • SRV’s area development ptoject in Espoo’s • Sitra as an expert partner Perkkaa area • total floor area 12 000+ m2, valid zoning • Ilmarinen and Sato as partn