Consti Oyj · OMXHEX:CONSTI
Consti Oyj — FY2023 Earnings Presentation
28 slides from Consti Oyj's earnings presentation, Feb 2, 2024
Slide 1: Consti Plc Financial Statements 1 January – 31 December 2023
CONSTI PLC FINANCIAL STATEMENTS 1 JANUARY – 31 DECEMBER 2023 CEO Esa Korkeela CFO Joni Sorsanen
Slide 2: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Updated strategy 2024-2027 4. Market outlook, guidance and summary 5. Appendix 1 2 February 2024 Consti Plc / Financial statements 1-12/2023
Slide 3: Highlights of FY 2023 and Q4/2023
Highlights of FY 2023 and Q4/2023 Good financial year in a challenging market NET SALES: EBIT: FREE CASH FLOW: EUR 320.6m EUR EUR 12.3m EUR EUR 13.1m EUR FY 2023 -7.2m FY 2023 -0.9m FY 2023 -7.6m EUR +15.4m Q4/2023 EUR +0.9m Q4/2023 EUR -4.9m Q4/2023 EUR 86.1m EUR 3.9m EUR 2.8m EUR EUR No. +0.10 +23
Slide 4: Consti Group's net sales overview 2019-23
Consti Group’s net sales overview 2019-23 Strongest growth in Public Sector business area, other geographical areas outgrew capital region in 2023. Public sector was the largest customer group in 2023, accounting for ~1/3 of net sales Net sales by business area Net sales by geography Net sales by cu
Slide 5: Quarterly performance overview
Quarterly performance overview Order backlog continued to grow year-on-year, net sales and order intake were on a good level but fell short of the strong comparison period QUARTERLY NET SALES (EUR m) QUARTERLY ORDER INTAKE (EUR m) QUARTERLY ORDER BACKLOG (EUR m) FY’21NET FY’22 NET FY’23 NET FY’21 OR
Slide 6: Quarterly net sales development
Quarterly net sales development Q4/2023 net sales amounted to EUR 86.1m Quarterly net sales development Q1/2021 – Q4/2023 (EUR m) Comments ■ Q4/2023 net sales EUR 86.1m (93.3m) 115 – Year-on-year change -7.7% 93,3 – Housing Companies net sales EUR 25.2m (32.4m) 95 89,9 86,1 – Corporations net sales
Slide 7: Quarterly Adjusted EBIT and EBIT development
*Adjusted EBIT = EBIT before items Quarterly Adjusted EBIT and EBIT development affecting comparability (IAC) ▪ IAC during the comparison periods 2020 and 2021 = Financial impact of Full-year EBIT improved and amounted to EUR 12.3m, the highest absolute arbitral award received in June 2021 as well a
Slide 8: Quarterly order intake development
Quarterly order intake development Q4/2023 order intake EUR 91.6 million (109.1m), falling 16.0% short of strong comparison period Quarterly order intake development Q1/2021 – Q4/2023 (EUR m) Comments ■ Q4/2023 order intake EUR 91.6m (109.1m) 109,1 106,5 100 – Year-on-year change -16.0% 98,7 98,5 –
Slide 9: Quarterly order backlog development
Quarterly order backlog development Q4/2023 order backlog at EUR 270.0 million (246.7m), up by 9.5% y-o-y Quarterly order backlog development Q1/2021 – Q4/2023 (EUR m) Comments 350 ■ Q4/2023 order backlog at EUR 270.0m (246.7m) – Order backlog at year-end 9.5% higher compared 300 to previous year-en
Slide 10: Number of personnel and other HR KPIs
Number of personnel and other HR KPIs Personnel increasing along with growing business volumes, positive trend in personnel turnover, absence rate as well as in accident rate. Consti employed 1,008 (975) professionals at year-end Average number of personnel Permanent personnel turnover ratio Acciden
Slide 11: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Updated strategy 2024-2027 4. Market outlook, guidance and summary 5. Appendix 10 2 February 2024 Consti Plc / Financial statements 1-12/2023
Slide 12: Quarterly free cash flow development
Quarterly free cash flow development FY 2023 free cash flow was EUR 13.1 million Quarterly free cash flow1) and EBITDA Q1/2021 – Q4/2023 (EUR m) Comments 25 ■ Q4/2023 free cash flow EUR 2.8m (10.4m) Cash conversion Q1 ’21 – Q4 ’23: 91.2% – EBITDA amounted to EUR 4.9m (5.7m) Free cash flow and EBITDA
Slide 13: Quarterly net working capital development
Quarterly net working capital development Net working capital at EUR -18.7 million at the end of Q4/2023 Quarterly net working capital1) Q1/2021 – Q4/2023 (EUR m) Comments Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 ■ Net working capital EUR -18.7m (-17.5m) at the end of
Slide 14: Quarterly balance sheet structure
Quarterly balance sheet structure Q4 financial position strengthened year-on-year, balance sheet net debt-free at year-end Quarterly net debt development (EUR m) Quarterly equity ratio and gearing development Comments Q1/2021 – Q4/2023 Q1/2021 – Q4/2023 30 100% ■ Financial position strengthened duri
Slide 15: Maturity distribution of interest-bearing debt
Maturity distribution of interest-bearing debt (31 December 2023) Gross interest-bearing debt (excl. IFRS 16) decreased by EUR 5.3 million in FY2023 Maturity profile of interest-bearing debt1) as per 31 Dec 2023 (EUR m) Comments 30 ■ Consti’s gross interest-bearing debt at EUR 15.1 million (excludin
Slide 16: Reported ROI and Consti ROCE
Reported ROI1) and Consti ROCE2) Return on capital improved as a result of improved profitability and capital efficiency Reported ROI1) and Consti ROCE2) Q4/2019 – Q4/2023 (%) Comments ■ In financial years 2020-2023, Consti’s return on 35,3 % 40% 33,0 % capital employed has exceeded 20% 30,0 % 35% 2
Slide 17: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Updated strategy 2024-2027 4. Market outlook, guidance and summary 5. Appendix 16 2 February 2024 Consti Plc / Financial statements 1-12/2023
Slide 18: Consti will grow in construction and building technology
Consti will grow in construction and building technology by responding to the demand created by the ageing building stock, urbanisation, and climate change Fundamental Growing complexity in Urbanisation and changes Sustainability and energy market Ageing building stock construction and in the use of
Slide 19: Group Strategy 2024–2027
Group Strategy 2024–2027 The ageing building stock, urbanisation, and climate change to create demand for construction and building technology services going forward NET SALES BY BUSINESS AREA, 2023–2027 (illustration) HIGHLIGHTS OF THE UPDATED STRATEGY MEUR ■ Growth in construction based on the dev
Slide 20: Consti's long-term financial targets intact for 2024-2027
Consti’s long-term financial targets intact for the strategy period 2024-2027 Growth Profitability Cash flow Capital structure Dividends The Company’s aim is to distribute as Net sales growing Cash conversion Net debt to adjusted EBIT-margin dividends at least 50 faster than the ratio exceeding 90 E
Slide 21: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Updated strategy 2024-2027 4. Market outlook, guidance and summary 5. Appendix 20 2 February 2024 Consti Plc / Financial statements 1-12/2023
Slide 22: Economic sentiment and construction confidence in Finland
Economic sentiment and construction confidence in Finland clearly below their long-term average levels Economic Sentiment and Construction Confidence / Finland (2007 – 12/2023) Comments 150 ■ Negative development in the Economic Economic Sentiment Indicator Sentiment Indicator (ESI) during FY 2023 1
Slide 23: Renovation growth halted in 2023, new building declined 20%
Renovation growth halted in 2023, while new building declined by 20% y-o-y, renovation market projected to remain stable in 2024 Finnish new building and renovation market development 2008 – 2026 Comments EUR b Renovation volume (real) New building volume (real) ■ According to Euroconstruct, the val
Slide 24: Outlook and guidance for 2024
Outlook and guidance for 2024 ■ According to forecasts, the renovation market is likely to remain unchanged in 2024. Euroconstruct estimates that the renovation market will remain at the 2023 level in 2024. RT expects a decline of about one percent in renovation. ■ Euroconstruct predicts a slight in
Slide 25: Summary
Summary 1. Good financial year in a challenging market, the highest absolute EBIT in the history of Consti Group 2. Net sales and order backlog continued to grow in FY 2023, order intake close to previous year’s level 3. The Board of Directors proposes a dividend of EUR 0.70 per share, growing 16.7%
Slide 26: Contents
CONTENTS 1. Highlights and Group performance 2. Cash flow and financial position 3. Updated strategy 2024-2027 4. Market outlook, guidance and summary 5. Appendix 25 2 February 2024 Consti Plc / Financial statements 1-12/2023
Slide 27: 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 28: Financial Statements 1-12/2023
FINANCIAL STATEMENTS 1-12/2023 CONSTI PLC FY2023 CONSTI PLC VALIMOTIE 16 FI-00380, HELSINKI BUSINESS ID 2203605-05 WWW.CONSTI.FI 27 26 April 2019 Consti Group Plc / Interim Report 1-3/2019