Investor Presentation • May 5, 2022
Investor Presentation
Open in ViewerOpens in native device viewer
Investor presentation Q1 2022
Industrial buildings
Public buildings
Residential buildings
Commercial buildings
Other infrastructure Environmental engineering Utility networks
Specialist engineering Bridges, viaducts Port construction Rail construction
Road construction and maintenance Road construction Road maintenance
The Group will grow, mostly organically, with a focus on more efficient use of its existing resources.
In Estonia, we will operate, as market leader, in both the building and infrastructure construction segments.
In Sweden, we will focus on general contracting in Stockholm and the surrounding area.
In Finland, we will focus on general contracting and concrete works in Helsinki and the surrounding area.
In Ukraine, we will focus on general contracting and concrete works, primarily in Kiev and the surrounding area.
Improving profitability through more precise planning of our design and construction operations.
Increasing our design and digitalisation capabilities.
Simplifying and automating work and decision-making processes.
Monitoring the balance between the contract portfolios of different business segments.
Valuing balanced teamwork where youthful energy and drive complement long-term experience.
Noticing and recognising each employee's individual contribution and initiative.
Revenue will grow at least 10% per year.
The contribution of foreign markets will increase to 20% of revenue.
Real estate development revenue will grow to at least 10% of revenue earned in Estonia.
Operating margin per year will be consistently above 3%.
Operating profit per employee will increase to at least 10 thousand euros per year.
On average, at least 30% of profit for the year will be distributed as dividends.
ACTIVITIES
LOCATION Tallinn
CUSTOMER Rotermann City OÜ
ARCHITECT KOKO architects
CONSTRUCTION PERIOD April 2019 - April 2021
CONTRACTOR Nordecon AS
PROJECT MANAGER Oleg Kaas
| The group's revenue for the first quarter of 2022 was €68,453 thousand, 39.7% up on a year earlier when revenue amounted to €48,987 thousand. Revenue growth was attributable to the revenue of the Buildings segment, which grew by 66%. The revenue of the Infrastructure segment decreased by around 50%. The low volumes of infrastructure construction that are affecting the entire construction market also influence the group's revenue structure. |
The reporting period was strongly affected by materials supply issues and price inflation, the impact of which has not yet fully emerged due to the ongoing supply chain disruptions and volatility. The Nordecon group ended the first quarter of 2022 with a gross profit of €1,147 thousand ( $Q1$ 2021: a gross loss of €92 thousand) and a gross margin of 1.7% (Q1 2021: a negative gross margin of 0.2%). |
The group's administrative expenses for the first quarter of 2022 amounted to $\epsilon$ 1,601 thousand. Compared with the same period last year, administrative expenses grew by around 9% (Q1 2021: €1,471 thousand). The increase is mainly attributable to growth in personnel expenses. The ratio of administrative expenses to revenue (12 months rolling) declined year on year, decreasing to 2.0% (Q1 2021: 2.3%). |
|---|---|---|
| The group ended the first quarter of 2022 with an operating profit of $\epsilon$ 950 thousand (Q1 2021: an operating loss of €1,658 thousand). |
The group's order book stood at €251,781 thousand at 31 March 2022, a roughly 11% decrease year on year. |
Operating activities produced a net cash outflow of €3,061 thousand the first quarter of 2022 (Q1 2021: an outflow of €613 thousand). |
| EBITDA for the period was positive at $\epsilon$ 1,817 thousand (Q1 2021: negative at €811 thousand). |
In the first quarter of 2022, we signed new contracts of $$63,167$ thousand (Q1 2021: €104,882 thousand). |
Negative operating cash flow in the first quarter is attributable to the cyclical nature of the construction business. The period's larger fixed costs and expenses on pre-construction activities cause outflows to exceed inflows. |
LOCATION Kohtla-Järve, Ida-Viru County
CUSTOMER Kohtla-Järve City Government
ARCHITECT
OÜ Zoroaster
CONSTRUCTION PERIOD April 2019 - March 2021
CONTRACTOR Nordecon AS
PROJECT MANAGER Oleg Kaas
The period's gross profit was earned in the Buildings segment, which delivered a gross margin of 4.1% (Q1 2021: 2.1%).
A large share of fixed costs in combination with a 50% decrease in revenue triggered a sharp margin decline in the Infrastructure segment, which delivered a negative gross margin of 23.0% (Q1 2021: a negative gross margin of 5.7%).
| Figure / Ratio | 3M 2020 | 3M 2021 | 3M 2022 |
|---|---|---|---|
| Revenue (EUR '000) | 54 924 | 48 987 | 68 453 |
| Revenue change | 59.1% | $-10.8%$ | 39.7% |
| Net profit/loss (EUR '000) |
$-2196$ | $-1911$ | $-318$ |
| Gross margin | 2.2% | $-0.2%$ | 1.7% |
| EBITDA margin | 0.4% | $-1.7%$ | 2.7% |
| Net margin | $-4.0%$ | $-3.9%$ | $-0.5%$ |
| Administrative expenses to revenue (12 month rolling) |
2.80% | 2.3% | 2.0% |
LOCATION Tartu city
CUSTOMER Tartu Kesklinna Perearstikeskus OÜ
DESIGNER U-Disain OÜ
CONSTRUCTION PERIOD February 2020- August 2021
CONTRACTOR Nordecon Betoon OÜ/ Embach
Ehitus OÜ
PROJECT MANAGER Ahti Kala
Revenue Estonia in the first quarter of revenue and had no ongoing 2022 remained practically at construction contracts in the the same level as in the first Swedish market. quarter of 2021, accounting for 5% of the group's total revenue.
generated outside The group did not generate any
Revenue generated in the The group also operates on a Ukrainian market amounted to project basis in Latvia where it €231 thousand and due to was building a wind farm in the Russia's military invasion of reporting period. Ukraine the activity of the Ukrainian subsidiary Eurocon Ukraine TOV has been temporarily suspended.
The group's order book stood at €251,781 thousand at 31 March 2022, a roughly 11% decrease year on year.
The share of the Buildings segment in the group's order book has increased: the Buildings segment accounted for 88% and the Infrastructure segment for 12% of the group's total order book at 31 March 2022 (31 March 2021: the respective shares were 80% and 20%).
In the first quarter of 2022, we signed new contracts of $\epsilon$ 63,167 thousand (Q1 2021: €104,882 thousand).
LOCATION Rae, Harju County
CUSTOMER Rae Rural Municipality Government
DESIGNER Sweco Projekt AS
CONSTRUCTION PERIOD November 2019 - May 2021
CONTRACTOR Nordecon AS
PROJECT MANAGER Silver Sein
In the first quarter of 2022, the Buildings and the Infrastructure segment generated revenue of €62,814 thousand and €5,569 respectively. thousand. The corresponding figures for the first quarter of 2021 were €37,833 thousand and €11.094 thousand.
In the Buildings segment, the revenues of all subsegments grew compared with the same period last year.
The revenue contribution of the industrial and warehouse facilities subsegment has grown considerably compared with the first quarter of 2021.
In the Infrastructure segment, the largest revenue contributor is still road construction and maintenance although its and revenue proportionate contribution have decreased.
LOCATION Käina, Hiiu County
CUSTOMER Hiiumaa Consumers Cooperative Association
ARCHITECT DAGOpen Arhitektuuribüroo
CONSTRUCTION PERIOD December 2020- June 2021
CONTRACTOR Nordecon Betoon OÜ
PROJECT MANAGER Reino Mälk
| Number of shares |
Ownership interest (% | |
|---|---|---|
| AS NORDIC CONTRACTORS | 16 563 145 | 51.16 |
| LUKSUSJAHT AS | 4 281 103 | 13.22 |
| TOOMAS LUMAN | 655 000 | 2.02 |
| Olegs Radcenko | 580000 | 1.79 |
| SEB PANK AS CLIENTS | 425 000 | 1.31 |
| Lembit Talpsepp | 376 239 | 1.16 |
| NÕMME ERAHARIDUSE SA | 370 370 | 1.14 |
| Mati Kalme SEB LIFE AND PENSION BALTIC SE |
265 000 | 0.82 |
| EESTI FILIAAL | 255 000 | 0.79 |
| Indeks/aktsia | $01.01.2022*$ 31.03.2022 | $+1-$ | |
|---|---|---|---|
| OMX Tallinn | 2 001,03 | 1890.35 | $-5,53%$ |
| NCN1T | $1,2$ EUR | $1,03$ EUR | $-14,17%$ |
* Nasdaq Tallinna börsi poolt kasutatav sulgemishind seisuga 31.12.2021
Nordecon AS Tel: +372 615 4400 www.nordecon.com Toompuiestee 35, Tallinn 10149 Estonia
Head of Investor Relations Andri Hõbemägi Tel: +372 615 4400 [email protected]
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.