Consti Oyj · OMXHEX:CONSTI
Consti Oyj — Shareholder Meeting (April 2017)
19 slides from Consti Oyj's shareholder meeting presentation, Apr 4, 2017
Slide 1: Consti Group Plc Annual General Meeting 4 April 2017
CONSTI GROUP PLC ANNUAL GENERAL MEETING 4 APRIL 2017 CEO Marko Holopainen
Slide 2: Contents
CONTENTS Consti in brief Consti’s year 2016 Outlook for 2017 Building renovation specialist | www.consti.fi
Slide 3: Overview of Consti – one of the leading renovation and technical services providers in Finland
Overview of Consti – one of the leading renovation and technical services provider in Finland Consti in brief Building Renovation Technical Building Comprehensive service offering covering Services (“CTT”) Facades Contracting technical building services, building (“CJU”) (“CKU”) facades, renovatio
Slide 4: Strong organic growth after acquisitions
Strong organic growth after acquisitions Consti’s four development phases since the foundation in 2008 300 Net sales (EURm) 0,12 Adjusted EBITDA margin1) 262 Successful integration of acquired 256 businesses Adjusted EBIT margin before goodwill amortisations 1) 250 0,1 216 Clear strategic focus
Slide 5: Diverse customer mix and strong track record in project deliveries
Diverse customer mix and strong track record in project deliveries Net sales by customer groups 2016 References 2016 Korkeavuorenkatu 21, Helsinki As Oy Peski, Espoo Diverse customer mix and strong track ■ Conversion of a high-value ■ Renewal of HVAC record in project property into apartments system
Slide 6: Consti Group's strategic themes
Consti Group’s strategic themes Preparations for new strategy going on 1 Exploit market position and expand full offering to Finland’s growth centers ─ Grow in businesses where Consti has long experience and a strong position ─ Expand full offering to the growth centres of Finland ─ Acquisitions to
Slide 7: Contents
CONTENTS Consti in brief Consti’s year 2016 Market outlook and guidance for 2017 Building renovation specialist | www.consti.fi
Slide 8: Profitable growth continued in 2016
Profitable growth continued in 2016 Net sales EUR 261.6 (256.2) million, growth +2.1% Share of Service business from 12% to 15% Number of personnel EBIT EUR 11.0 (8.4) million, EBIT margin 4.2% 12/2016: 935 (3.3%) Adjusted EBIT EUR 11.0 (10.5) million, adjusted EBIT margin 4.2% (4.1%) Oulu
Slide 9: Performance by business segment
Performance by business segment NET SALES ORDER INTAKE ORDER BACKLOG MEUR MEUR MEUR 261,6 213,5 223,1 256,2 +4,5 % 190,8 181,3 89,2 88,6 71,7 100,5 55,0 76,6 68,7 75,0 80,5 40,1 57,1 43,5 102,6 103,9 85,8 69,2 70,7 72,4 -4,3 -5,9 -11,1 -3,4 2015 2016 2015 2016 2015 2016 Technical Building Services R
Slide 10: Personnel
Personnel AVERAGE ABSENCE RATE 6,0 % 2016 average 933 (910) 2016 year end 935 (890) 5,0 % 57 43% (42%) % 2017 Feb 991 4,0 % (58 %) 3,0 % 2,0 % 4.0 4.2 3.1 1,0 % Blue collar White collar PERMANENT PERSONNEL TURNOVER 0,0 % 2014 2015 2016 25,0 % 9% ACCIDENT RATE (7%) 20,0 % 22,3 45 % 40 35 40 15,
Slide 11: Asset-light business model supporting strong cash conversion, healthy balance sheet
Asset-light business model supporting strong cash conversion, healthy balance sheet going forward Net working capital Cash conversion1) Balance sheet KPIs as per 31 Dec 2016 Net working capital at year-end (EURm) Free cash flow (EURm) EBITDA (EURm) Average cash 2014 2015 2016 conversion 106% 15,7 40
Slide 12: Realisation of Consti's long-term financial targets in 2016
Realisation of Consti’s long-term financial targets in 2016 Growth Profitability Cash flow Capital structure Dividends Net debt to adjusted The Company’s aim EBITDA ratio of less is to distribute as Average annual Adjusted EBIT- Cash conversion than 2.5x while dividends at least 50 growth in net sal
Slide 13: Active screening of M&A candidates
Active screening of M&A candidates Demonstrated financial Consti Group’s strategy Good organisational fit Relevant M&A targets track record N =N X =X N =~~50 N 50 ■ For instance: ■ Minimised overlap with ■ Expansion in ■ Established strong local Consti’s current – Roof renovation and Finland’s growt
Slide 14: Acquisitions from 2016 on
Aquisitions from 2016 on ■ Eleta Talotekniikka Oy, January 2016 – Building automation services in Helsinki region since 1987 – Ne sales for 2015 approx. EUR 2 million ■ Pirkanmaan JT-Palvelut Oy, November 2016 – Maintenance and repair of facades in Pirkanmaa region since 1989 – Net sales for 2015 ap
Slide 15: Contents
CONTENTS Consti in brief Consti’s year 2016 Outlook for 2017 Building renovation specialist | www.consti.fi
Slide 16: Renovation market growth supported by key structural growth drivers
Renovation market growth supported by a number of key structural growth drivers Ageing building stock Energy efficiency Million Finnish building stock by construction year m2 100 Buildings age of 50 years (approx): ~2017 ~2025-2035 ~2040 Urbanisation Residential 80 Non-residential 29,4 34,3 60 Modif
Slide 17: Stable growth in renovation to continue, new building grew strongly in 2016
Stable growth in renovation to continue, new building grew strongly in 2016 Finnish new building and renovation market development EURmrd Renovation volume (real) New building volume (real) 30 ■ Euroconstruct estimates renovation to have grown approximately +1.5, while 25,6 25,0 25,1 25,0 24,5 24,8
Slide 18: HVAC market development
HVAC market development New construction Renovation Maintenance Balanced view * 100 % 100 % 100 % 100% 90 % 90 % 90 % 80% 80 % 80 % 80 % 60% 70 % 70 % 70 % 40% 60 % 60 % 60 % 20% 50 % 50 % 0% 50 % Mar-15 Jun-16 Mar-17 Nov-13 Nov-15 Apr-14 Oct-14 Apr-16 Oct-16 -20% 40 % 40 % 40 % -40% 30 % 30 % 30 %
Slide 19: Guidance for 2017
Guidance for 2017 “The Company estimates that its total annual sales for 2017 will grow compared to 2016.” 18 04/04/2017 Building renovation specialist | www.consti.fi