Quarterly Report • Apr 28, 2017
Quarterly Report
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Interim report January 1 – March 31, 2017
| 2017 | 2016 | Apr. 16- | 2016 | |
|---|---|---|---|---|
| Group, SEK M | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Orders received | 11,482 | 10,538 | 57,451 | 56,506 |
| Order backlog | 49,404 | 42,958 | 49,404 | 47,940 |
| Net sales | 11,806 | 9,197 | 55,543 | 52,934 |
| Operating profit/loss | 302 | -284 | 2,040 | 1,453 |
| Profit/loss after financial items | 283 | -309 | 1,933 | 1,341 |
| Net profit/loss for the period | 237 | -243 | 1,596 | 1,116 |
| Net profit/loss for the period after tax for | ||||
| continuing and discontinued operations * | 237 | -156 | 8,376 | 7,983 |
| Profit/loss per share after dilution, SEK * | 2.21 | -1.40 | 77.38 | 73.81 |
| Cashflow before financing | 1,738 | -1,213 | 2,940 | -11 |
| Equity/asset ratio, % | 23 | 23 | 23 | 22 |
| Net cash +/net indebtedness - | 1,519 | -6,132 | 1,519 | -222 |
For definitions of key figures, see www.ncc.group/Investor-relations/Financial-data/Financial-definitions
* In this report, Bonava is reported as a discontinued operation pursuant to IFRS 5 (see accounting policies on page 17 and Note 4) and is included in NCC's income statement through June 7, 2016. Earnings from discontinued operation comprise Bonava's profit for the period January 1 to June 7 2016 plus the difference between Bonava's market capitalization on the listing date and Bonava's shareholders' equity on the spinoff date.
This year, a large part of the profit from our property development operations was realized early in the year. In the first quarter, we handed over four property projects to customers and the business area showed healthy profitability. As a result, the NCC Group's earnings improved year-on-year and profit after financial items amounted to SEK 283 M (loss: 309).
Conditions in the Nordic construction market are favorable and growth in the market is expected to exceed GDP in 2017. The growth will be driven primarily by housing and infrastructure. The high activity in construction and civil engineering is also driving demand for stone materials and asphalt.
NCC's order backlog March 31, 2017 exceeded the year-earlier level and amounted to SEK 49.4 billion (43.0).
Sales increased 5 % during the quarter as a result of the favorable orders received in 2016. However, profit declined year-on-year due in part to impairment losses of SEK 50 M on housing projects in Helsinki, Finland. Although earnings from the Norwegian operations improved, they continue to operate at a loss. Profit from the Danish operations was lower year-on-year, while profit from the Swedish operations improved.
A high level of orders received during the quarter added to the order backlog, which was SEK 4 billion higher at the end of the quarter than a year earlier. Sales were on a par with the year-earlier period but earnings were adversely impacted by the weak profitability of older projects. New orders are improving the margin on the order backlog but, due to a low work-up rate and thus cautious calculation of profit, this has yet to have any impact on the operating margin.
NCC Industry, which usually reports a seasonally weak first quarter, showed somewhat improved earnings as a result of higher sales of stone materials.
Profit from our property development operations was highly favorable during the quarter – operating profit totaled SEK 593 M (22) – but we have few additional projects that will have time to be completed and thus recognized in profit during 2017. The business area has a strong focus on starting up new projects.
Although there are prerequisites for growth with favorable market conditions in most of our markets, we are also facing a number of challenges. We have to raise the operating margin of our construction and civil engineering operations, continue to focus on reducing our costs so that we become even more competitive and increase our capacity to be able to accept new orders in attractive submarkets.
Peter Wågström, President and CEO Solna, April 28, 2017
The diagrams show NCC's performance excluding Bonava.
Most recent period January-March 2017
Orders received rose to SEK 11,482 M (10,538). In the first quarter, orders received by NCC Infrastructure rose, due to favorable orders in such areas as earth and ground works. Orders received by NCC Industry were higher, mainly for asphalt operations. Changes in exchange rates increased orders received in the period by SEK 120 M year-on-year.
The Group's order backlog amounted to SEK 49,404 M (42,958). Changes in exchange rates during the period reduced the value of the order backlog by SEK 134 M.
Net sales amounted to SEK 11,806 M (9,197) during the quarter. NCC Property Development had higher sales, because more property projects were recognized in profit compared with the year-earlier period. NCC Building and NCC Industry also increased their sales. Changes in exchange rates increased sales in the period by SEK 155 M year-on-year.
NCC's operating result amounted to SEK 302 M (loss: 284). The improvement was attributable to NCC Property Development, which reported higher profit from property sales. NCC Building's operating profit deteriorated, due mainly to impairment losses on projects in the Finnish operations. NCC Infrastructure reported a deterioration in operating profit, due mainly to weak profitability in older projects and a low work-up rate and cautious recognition of earnings from new orders. NCC Industry's operating profit improved as a result of increased sales of stone materials.
Net financial items amounted to an expense of SEK 19 M (expense: 25). Lower loans, lower interest rates and exchange-rate differences had a favorable impact on net financial items.
The return on equity is calculated based on NCC's profit excluding Bonava.
The Group's cash flow from operating activities was a positive SEK 638 M (neg: 73). The improvement was mainly due to the positive profit after financial items in the first quarter of 2017. Changes in working capital generated a positive cash flow of SEK 1,232 M (neg: 936) as a result of profit recognition of four projects in Property Development that were handed over to customers. Cash flow from investing activities improved slightly, whereby cash flow before financing was SEK 1,738 M (negative: 1,213). Total cash and cash equivalents at the end of the quarter amounted to SEK 4,665 M (3,553).
The Group's net cash amounted to SEK 1,519 M (net debt: 6,132) at March 31. The improvement year-on-year was mainly due to the spinoff of Bonava.
The Group's total assets at March 31, 2017 amounted to SEK 24,992 M (40,365). Total assets declined by SEK 15,373 M year-on-year. The decrease in total assets was due to the spinoff of Bonava.
The average maturity period for interest-bearing liabilities, excluding pension debt according to IAS 19, was 35 months (28) at the end of the quarter. At the same date, NCC's unutilized committed lines of credit totaled SEK 3.4 billion (4.7), with an average remaining maturity of 52 (46) months.
Capital employed at March 31 amounted to SEK 9,491 M (19,523), with the decline primarily due to the spinoff of Bonava. The return on capital employed was 19 percent (16).
| 2017 | 2016 | Apr. -16 | 2016 | |
|---|---|---|---|---|
| Net indebtedness, SEK M | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Net indebtedness, opening balance | -222 | -4,552 | -6,132 | -4,552 |
| Cash flow before financing | 1,738 | -1,213 | 2,940 | -11 |
| Acquisition/Sale of treasury shares | 60 | 60 | ||
| Change of provisions for pensions | 20 | -365 | -285 | -670 |
| Dividend costs | -76 | -76 | ||
| Currency exchange differences in cash and cash equivalents 1) | -17 | -2 | 15 | |
| Paid dividend | -324 | -324 | ||
| Dividend Bonava | 5,336 | 5,336 | ||
| Net cash + /net indebtedness - closing balance | 1,519 | -6,132 | 1,519 | -222 |
| 1) For the comparative period and the period Apr.-16 Mar.-17, currency exchange differences in cash and cash equivalent is included in cash flow | ||||
| before financing. | ||||
Growth in the Nordic construction market was high in 2016 and the market is expected to grow by 5% in 2017. Major projects in the Nordic region are attracting international interest and competition. In the urban growth markets, the battle for competencies is intensive. GDP in the Nordic region is expected to grow by 2% annually in 2017 and 2018.
Infrastructure initiatives are market drivers in Norway and Sweden. The Norwegian market is expected to grow by 8% annually up to 2019, while the Swedish market is expected to grow 2.5% annually. The civil engineering market in Finland is expected to grow 2% in 2017 but decline by 2.7% in 2018. Denmark will show low growth in 2017 and NCC does not expect any contribution from the Fehmarn Link (forthcoming link with Germany) during 2018.
The growth expectations for new production in the Nordic region have been raised sharply in 2017. In 2018, the growth rate will normalize. The Swedish construction market is expected to grow by a full 9% in 2017 (new builds: 15%). Growth of 3 % is expected in 2018. The Norwegian market is expected to grow by 5% in 2017 and the growth will mainly occur in the Oslo region. In Finland, the market will grow by 6% in 2017. In 2018, a reduction in new housing production is expected to coincide with a reduction in public-sector initiatives, and new production is expected to decline by 7%. In Denmark, a 12% increase in new production of housing will contribute to estimated growth of 3% in 2017.
GDP and construction volume, outlook (real) Construction volume and outlook per segment (real)
A strong civil engineering market in 2017 is driving growth in demand for asphalt and stone materials in the Nordic region, with a normalization expected thereafter. The market for stone materials is expected to grow, primarily as a result of infrastructure and housing projects in Sweden and Norway, while lower growth is expected in Finland and Denmark. Within asphalt, the highest market growth in Finland is expected to approach 10% in 2017. The Swedish market is also expected to increase considerably, driven by major projects in metropolitan areas. In Norway, the impact on growth from large-scale infrastructure projects will become increasingly noticeable during 2017 and 2018. The Danish market will show weak growth until 2018. The market for foundation engineering companies will increase during 2017 with growth exceeding 5% and a distinct internationalization among the competitors.
Continued record-breaking activity, keen international interest, urbanization and the quest for yield are the market drivers. Transaction volume in the Nordic region increased 11% 2016 compared with the record level noted in 2015. The Stockholm and Gothenburg property markets remain highly active, with low vacancy rates and rising rents. In the Danish market, marginally increasing yield requirements and an increase in new investments are expected during 2017. In Oslo, economic uncertainty moving forward will result in a slowdown in the increase in rent levels. The rent levels in central Helsinki are rising slightly and the level of vacancies is expected to decline moving forward.
Most recent period January-March 2017 Product mix
Orders received by NCC Building declined in the first quarter and totaled SEK 3,750 M (5,382). In the Swedish market, projects have been deferred, in Norway, NCC has adopted a cautious approach to tendering and in Finland, the market is tough. During the first quarter, a number of large-scale projects were secured, including a refurbishment project in Sweden and a retail project in Finland. Refurbishment increased its share of orders received in the first quarter. The housing construction segment declined during the quarter, mainly due to project delays.
The order backlog declined by SEK 1,983 M during the period to SEK 27,176 M.
Net sales increased in the first quarter to SEK 5,674 M (5,389). NCC Buildings' net sales consist mainly of housing production, followed by refurbishment. In terms of sales, Sweden is the largest market and the Swedish proportion of orders received also increased during the period.
Operating profit was lower year-on-year and amounted to SEK 56 M (70) during the quarter. Earnings for the quarter were lower year-on-year, due mainly to impairment losses of SEK 50 M on housing projects in the Finnish market. Earnings in Norway improved but remain negative, primarily due to a nonexistent margin on ongoing previously impaired projects.
| 2017 | 2016 | Apr. 16- | 2016 | |
|---|---|---|---|---|
| NCC Building, SEK M | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Orders received | 3,750 | 5,382 | 27,106 | 28,738 |
| Order backlog | 27,176 | 25,293 | 27,176 | 29,159 |
| Net sales | 5,674 | 5,389 | 25,966 | 25,681 |
| Operating profit/loss | 56 | 70 | 475 | 489 |
| Financial target: | ||||
| Operating margin, % 1) | 1.0 | 1.3 | 1.8 | 1.9 |
1) Target: operating margin ≥ 3.5%
Most recent period January-March 2017 Product mix
Orders received by NCC Infrastructure during the quarter amounted to SEK 5,028 M (2,866). The Civil Engineering and Infra Services divisions both showed increases in the period. Increased orders received particularly in Swedish operations, partly as a result of order registration of the projects Next Generation (SEK 950 M, of which SEK 760 M pertains to NCC Infrastructure and the rest to NCC Building) and Högbytorp (SEK 750 M, of which 70 percent pertains to NCC Infrastructure and 30 percent to NCC Building). Read more about the projects on page 11.
In line with its strategy, NCC is focusing on increasing the share of major civil engineering projects. Due to such factors as projects received, the share of industry works increased during the period. In Sweden and Norway, multiple large-scale civil engineering projects are in the procurement stage.
The order backlog increased SEK 1,534 M during the period to SEK 17,957 M.
Net sales amounted to SEK 3,404 M (3,365) during the quarter. NCC Infrastructure's net sales consist predominantly of earth and groundworks. Earth and groundworks and roads contracts have a major impact on net sales, accounting for more than half. Accordingly, they also have a considerable impact on growth and profitability.
The operating result was lower year-on-year and amounted to a loss of SEK 27 M (loss: 11) during the quarter. The weak result for the quarter was mainly due to the completion of projects with weaker profitability combined with a low work-up rate and therefore cautious recognition of profit in new projects.
| 2017 | 2016 | Apr. 16- | 2016 | |
|---|---|---|---|---|
| NCC Infrastructure, SEK M | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Orders received | 5,028 | 2,866 | 20,826 | 18,664 |
| Order backlog | 17,957 | 13,920 | 17,957 | 16,423 |
| Net sales | 3,404 | 3,365 | 17,046 | 17,007 |
| Operating profit/loss | -27 | -11 | 145 | 162 |
| Financial target: | ||||
| Operating margin, % 1) | -0.8 | -0.3 | 0.9 | 1.0 |
1) Target: operating margin ≥ 3.5%
Most recent period January-March 2017 Product mix
Net sales increased year-on-year to SEK 1,087 M (888). Sold volumes of stone materials were higher in all markets but the increase was greatest in Sweden. Sold volumes of asphalt increased in Denmark, Sweden and Norway, while the volume in Finland was unchanged. Sales of foundation engineering were higher year-on-year, due to high activity in the Swedish market.
The result for the quarter was seasonally weak but higher year-on-year and totaled a loss of SEK 310 M (loss: 324). Earnings improved in stone materials operations but were lower in foundation engineering and asphalt operations. Earnings from stone materials operations improved primarily as a result of high construction activity in Sweden, which increased demand for stone materials. Earnings from foundation engineering declined due to lower activity in Denmark and Norway.
Capital employed totaled SEK 3.9 billion during the quarter, which was in line with the year-earlier period.
| 2017 | 2016 | Apr. 16- | 2016 | |
|---|---|---|---|---|
| NCC Industry, SEK M | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Orders received | 3,248 | 2,463 | 12,037 | 11,252 |
| Order backlog | 5,053 | 3,921 | 5,053 | 2,883 |
| Net sales | 1,087 | 888 | 10,959 | 10,760 |
| Operating profit/loss | -310 | -324 | 548 | 533 |
| Capital employed | 3,901 | 3,461 | 3,901 | 3,975 |
| Stone materials, tons 1) | 5,783 | 4,912 | 28,982 | 28,110 |
| Asphalt, tons 1) | 159 | 104 | 6,404 | 6,350 |
| Financial targets: | ||||
| Operating margin, % 2) | -28.5 | -36.5 | 5.0 | 4.9 |
| Return on capital employed, % 3) | 13.7 | 13.5 |
1) Sold volume
2) Target: operating margin ≥ 4%
3) Target: return on capital employed ≥ 10%
Most recent period January-March 2017 Product mix
Net sales were higher year-on-year, totaling SEK 2,173 M (93). In the first quarter, four projects were recognized in profit: the Torsplan 2 office project (Stockholm); the Vattenbrunnen logistics project (Upplands-Bro) and the Aitio Verdi and Vivaldi office projects (Helsinki). No projects were recognized in profit during the year-earlier period.
Operating profit amounted to SEK 593 M (22). Earnings from profit-recognized projects, a sale of land and previous sales contributed to first-quarter profit. Earnings from previous sales, and one sale of land, contributed to yearearlier results.
One project was started in a project: the Laajasalo retail project in Helsinki, Finland.
Leasing amounted to 10,300 square meters (19,100) in the first quarter.
At the end of the quarter, 16 projects (18) were either ongoing or completed but not yet recognized in profit. The costs incurred in all projects amounted to SEK 1.3 billion (3.0), corresponding to a completion rate of 41 (63) percent.
The leasing rate was 43 (72) percent. The operating net for the quarter was SEK 16 M (19).
Capital employed declined SEK 1.1 billion during the quarter, since projects recognized in profit exceeded investments in ongoing projects. Capital employed totaled SEK 3.3 billion.
| NCC Property Development, SEK M | 2017 Jan. -Mar. |
2016 Jan. -Mar. |
Apr. 16- Mar. 17 |
2016 Jan. -Dec. |
|---|---|---|---|---|
| Net sales | 2,173 | 93 | 4,903 | 2,823 |
| Operating profit/loss | 593 | 22 | 898 | 327 |
| Capital employed | 3,320 | 4,893 | 3,320 | 4,450 |
| Financial targets: | ||||
| Operating margin, % 1) | 27.3 | 23.7 | 18.3 | 11.6 |
| Return on capital employed, % 2) | 20.1 | 7.0 |
1) Target: operating margin ≥ 10%
2) Target: return on capital employed ≥ 10%
Property development projects as of March 31, 2017 1)
| Sold, estimated recognition in |
Comple tion |
Lettable area |
Letting ratio, |
|||
|---|---|---|---|---|---|---|
| Project | Type | Location | profit | ratio, % | (sqm) | % |
| CH Vallensbæk 4.1 | Office | Vallensbæk | 55 | 6,100 | 7 | |
| Frederiks Plads 1 | Office | Århus | 25 | 5,000 | 0 | |
| Total Denmark | 38 | 11,100 | 3 | |||
| Alberga E | Office | Espoo | 60 | 5,800 | 19 | |
| Fredriksberg 1 | Office | Helsinki | 20 | 9,000 | 0 | |
| Laajasalo | Retail | Helsinki | 2 | 8,700 | 78 | |
| Suurpelto 1 | Retail | Espoo | 47 | 4,500 | 95 | |
| Total Finland | 27 | 28,000 | 43 | |||
| Lysaker PP11 | Office | Bærum | 22 | 6,400 | 78 | |
| Valle 1 | Office | Oslo | 8 | 6,300 | 0 | |
| Total Norway | 16 | 12,700 | 42 | |||
| Multihuset | Other | Malmö | 6 | 19,700 | 52 | |
| Mölndal Galleria | Retail | Mölndal | 2) | 56 | 13,300 | 55 |
| Önskebrunnen | Logistics | Upplands- Bro | 69 | 14,400 | 23 | |
| Total Sweden | 40 | 47,400 | 49 | |||
| Total | 31 | 99,200 | 41 |
| Project | Type | Location | Sold, estimated recognition in profit |
Lettable area (sqm) |
Letting ratio, % |
|---|---|---|---|---|---|
| Kolding Retailpark | Retail | Kolding | 4,000 | 54 | |
| Roskildevej | Retail | Taastrup | 4,000 | 100 | |
| Viborg Retail II+III | Retail | Viborg | 900 | 0 | |
| Zenit 2 | Office | Århus | 3,600 | 55 | |
| Total Denmark | 12,500 | 65 | |||
| Stavanger Business Park 1 | Office | Stavanger | 9,200 | 44 | |
| Total Norway | 9,200 | 44 | |||
| Total | 21,700 | 53 |
1) The table refers to ongoing or completed property projects that have not yet been recognized as revenue. In addition to these projects, NCC also focuses on rental (rental guarantees / additional purchase) in four previously sold and revenue recognized property projects, a maximum of approximately 40 MSEK.
2) The project covers approximately 25,000 square meters of leasable area and is implemented together with Citycon, a Finnish listed real estate company, in a jointly owned company. The data in the table refer to NCC's share of the project.
.
An account of the risks to which NCC may be exposed is presented in the 2016 Annual Report (pages 51–53). This description remains relevant.
Related parties are the Nordstjernan Group (including the associated company Bonava), the Axel Johnson Group and NCC's subsidiaries, associated companies and joint arrangements. The Parent Company's related-party transactions were of a production character. Related-company sales during the first quarter amounted to SEK 867 M (489) and purchases to SEK 155 M (146).
NCC Roads' operations and certain operations in NCC Building and NCC Infrastructure are impacted by seasonal variations due to cold weather. The first quarter is normally weaker than the rest of the year
NCC AB holds 362,222 Series B treasury shares to meet its obligations pursuant to long-term incentive programs.
NCC has signed a partnering agreement with BillerudKorsnäs regarding the expansion of production facilities for the Next Generation project at Gruvön Mill in Grums, Sweden. The assignment entirely comprises earth, foundation and concreting works for the new production facility. The order value is estimated to approximately SEK 950 M.
NCC has signed an agreement for the construction of Lögaräng swim center in Västerås, Sweden. In cooperation with the Municipality of Västerås, NCC has planned and designed the new Lögaräng swim center in Västerås. The order value is SEK 340 M.
NCC has been commissioned by Skandia Fastigheter Öresund AB to redevelop the Davida 16 block in Malmö Sweden. The entire block will be refurbished into new offices for the Public Employment Service and a Choice hotel containing 225 rooms in 13 stories. The order value is SEK 270 M.
NCC has signed a contract with the energy company E.ON to build a new cogeneration plant as part of a closed-loop facility at Högbytorp, in the Municipality of Upplands-Bro, in northern Stockholm. The total order value is SEK 750 M.
NCC has been commissioned to plan an expansion and modernization of the Ryhov County Hospital in partnership with Region Jönköping County. The order value is an estimated SEK 800 M. The order will be registered in the third quarter of 2017. Construction is scheduled to commence in the first quarter 2018.
NCC has been commissioned to design and build the Finspång medical center in cooperation with Region Östergötland. The order value is estimated at approximately SEK 500 M.
NCC's Annual General Meeting on April 5 resolved to approve a dividend of SEK 8.00 per share, divided into two payments. The record date for the first payment of SEK 3.00 per share was set at April 7, 2017 and the record date for the second payment of SEK 5.00 per share was set at November 6, 2017.
According to the Nomination Committee's proposal, the Meeting reelected Tomas Billing, Carina Edblad, Viveca Ax:son Johnson and Ulla Litzén as Members of the Board. Birgit Nørgaard, Geir Magne Aarstad and Mats Jönsson were elected as new Board members.
Sven-Olof Johansson and Christoph Vitzthum had declined reelection. Tomas Billing was elected Chairman of the Board.
It was resolved that director fees be paid in a total amount of SEK 4,100,000, distributed in the amount of SEK 1,100,000 to the Chairman of the Board and SEK 500,000 to each other AGM-elected member.
In accordance with a proposal by the Nomination Committee, the registered auditing firm PricewaterhouseCoopers AB (PwC) was elected with Håkan Malmström as auditor-incharge. The auditing firm was elected to serve until the close of the 2018 AGM.
Viveca Ax:son Johnson (Chairman), Johan Strandberg, equity researcher, SEB Funds, and Anders Oscarsson, equity manager at AMF/AMF Funds, were reelected members of the Nomination Committee. Tomas Billing, Chairman of the NCC Board of Directors, is a co-opted member of the Nomination Committee but has no voting right.
LONG-TERM PERFORMANCE-BASED INCENTIVE PLAN The AGM resolved to introduce a long-term performancebased incentive plan (LTI 2017) for senior executives and key personnel.
Interim report, Jan-Jun 2017 July 19, 2017 Interim report, Jan-Sep 2017 October 26, 2017 Year-end report Jan-Dec 2017 January 2018
Solna, April 28, 2017
Peter Wågström President and CEO
This report is unaudited.
| SEK M Note 1 Jan. -Mar. Jan. -Mar. Mar. 17 Jan. -Dec. CONTINUING OPERATIONS Net sales 11,806 9,197 55,543 52,934 Production costs Note 2 -10,784 -8,771 -50,497 -48,484 Gross profit 1,021 426 5,046 4,450 Selling and administrative expenses Note 2 -716 -708 -2,920 -2,912 Other operating income/expenses -3 -1 -87 -85 Operating profit/loss 302 -284 2,040 1,453 Financial income 17 6 37 26 Financial expense 1) -36 -31 -143 -138 Net financial items -19 -25 -106 -112 Profit/loss after financial items 283 -309 1,933 1,341 Tax -47 65 -336 -225 Net profit/loss for the period from continuing operations 237 -243 1,596 1,116 DISCONTINUED OPERATION Discontinued operation, net after tax 88 6,779 6,867 Note 4 88 6,779 6,867 Net profit/loss for the period from discontinued operation CONTINUING AND DISCONTINUED OPERATIONS 237 -156 8,376 7,983 Net profit/loss for the period from continuing and discontinued operations Attributable to: NCC´s shareholders 239 -151 8,370 7,980 Non-controlling interests -2 -5 6 3 Net profit/loss for the period 237 -156 8,376 7,983 Earnings per share Before dilution Net profit/loss for the period, SEK 2.21 -1.40 77.38 73.81 After dilution Net profit/loss for the period, SEK 2.21 -1.40 77.38 73.81 Earnings per share from continuing operations Before dilution Net profit/loss for the period, SEK 2.21 -2.26 14.71 10.30 After dilution Net profit/loss for the period, SEK 2.21 -2.26 14.71 10.30 Number of shares, millions Total number of issued shares 108.4 108.4 108.4 108.4 Average number of shares outstanding before and after dilution during the period 108.1 107.9 108.2 108.1 Number of shares outstanding before dilution at the end of the period 108.1 107.9 108.1 108.1 |
2017 | 2016 | Apr. 16- | 2016 | |
|---|---|---|---|---|---|
1) Whereof interest expenses for the period Apr.16 -Mar.17, amounting to SEK 127 M and for the period Jan.- Dec. 2016 amounting to SEK 118 M. For information about discontinued operations, refer to note 4.
| 2017 | 2016 | Apr. 16- | 2016 | ||
|---|---|---|---|---|---|
| SEK M | Note 1 | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Net profit/loss for the period | 237 | -156 | 8,376 | 7,983 | |
| Items that have been recycled or should be recycled to net profit/loss for the period | |||||
| Exchange differences on translating foreign operations | -12 | 59 | 94 | 165 | |
| Change in hedging/fair value reserve | 4 | -26 | -3 | -34 | |
| Cash flow hedges | -21 | -4 | 86 | 103 | |
| Income tax relating to items that have been or should be recycled to net profit/loss | |||||
| for the period | 4 | 7 | -19 | -15 | |
| -25 | 36 | 158 | 219 | ||
| Items that cannot be recycled to net profit/loss for the period | |||||
| Revaluation of defined benefit pension plans | 36 | -357 | -197 | -590 | |
| Income tax relating to items that cannot be recycled to net profit/loss for the period | -8 | 79 | 43 | 130 | |
| 28 | -278 | -154 | -460 | ||
| Other comprehensive income | 4 | -243 | 5 | -241 | |
| Total comprehensive income | 241 | -398 | 8,381 | 7,742 | |
| Attributable to: | |||||
| NCC´s shareholders | 243 | -394 | 8,375 | 7,739 | |
| Non-controlling interests | -2 | -5 | 6 | 3 | |
| Total comprehensive income | 241 | -398 | 8,381 | 7,742 |
| 2017 | 2016 | 2016 | ||
|---|---|---|---|---|
| SEK M | Note 1 | Mar. 31 | Mar. 31 | Dec. 31 |
| ASSETS | ||||
| Fixed assets | ||||
| Goodwill | 1,841 | 1,787 | 1,851 | |
| Other intangible assets | 271 | 395 | 275 | |
| Owner-occupied properties | 807 | 777 | 814 | |
| Machinery and equipment | 2,580 | 2,382 | 2,569 | |
| Other long-term holdings of securities | 124 | 92 | 125 | |
| Long-term interest-bearing receivables | 371 | 257 | 361 | |
| Other long-term receivables | 66 | 168 | 62 | |
| Deferred tax assets | 106 | 97 | ||
| Total fixed assets | 6,164 | 5,857 | 6,154 | |
| Current assets | ||||
| Properties held for future development | 1,816 | 2,057 | 1,780 | |
| Ongoing property projects | 559 | 2,404 | 1,440 | |
| Completed property projects | 438 | 373 | 808 | |
| Housing properties held for future development | 16 | 16 | ||
| Unsold completed housing units | 4 | |||
| Materials and inventories | 746 | 758 | 713 | |
| Tax receivables | 172 | 191 | 42 | |
| Accounts receivable | 6,716 | 5,084 | 7,682 | |
| Worked-up, non-invoiced revenues | 2,005 | 2,536 | 1,737 | |
| Prepaid expenses and accrued income | 1,060 | 1,008 | 1,061 | |
| Current interest-bearing receivables | 169 | 30 | 152 | |
| Other receivables | 466 | 445 | 446 | |
| Short-term investments 1) | 218 | 192 | 190 | |
| Cash and cash equivalents | 4,447 | 2,720 | 3,093 | |
| Assets held for distribution | 16,704 | |||
| Total current assets | 18,828 | 34,508 | 19,161 | |
| Total assets | 24,992 | 40,365 | 25,315 | |
| EQUITY | ||||
| Share capital | 867 | 867 | 867 | |
| Other capital contributions | 1,844 | 1,844 | 1,844 | |
| Reserves | -150 | -309 | -125 | |
| Profit/loss brought forward, including current-year profit/loss | 3,233 | 6,901 | 2,967 | |
| Shareholders´ equity | 5,794 | 9,303 | 5,553 | |
| Non-controlling interests | 11 | 18 | 13 | |
| Total shareholders´ equity | 5,805 | 9,321 | 5,566 | |
| LIABILITIES | ||||
| Long-term liabilities | ||||
| Long-term interest-bearing liabilities | 2,254 | 3,365 | 2,288 | |
| Other long-term liabilities | 46 | 124 | 54 | |
| Provisions for pensions and similar obligations | 987 | 703 | 1,008 | |
| Deferred tax liabilities | 507 | 465 | 407 | |
| Other provisions | 1,971 | 1,561 | 1,686 | |
| Total long-term liabilities | 5,765 | 6,219 | 5,443 | |
| Current liabilities | ||||
| Current interest-bearing liabilities | 445 | 710 | 723 | |
| Accounts payable | 3,385 | 2,890 | 4,427 | |
| Tax liabilities | 44 | 60 | 115 | |
| Invoiced revenues not worked-up | 5,306 | 5,147 | 4,355 | |
| Accrued expenses and prepaid income | 2,933 | 3,074 | 3,205 | |
| Provisions | 7 | 41 | 21 | |
| Other current liabilities | 1,303 | 1,013 | 1,460 | |
| Liabilities attributable to assets held for distribution | 11,891 | |||
| Total current liabilities | 13,422 | 24,826 | 14,306 | |
| Total liabilities | ||||
| Total shareholders' equity and liabilities | 19,187 24,992 |
31,045 40,365 |
19,749 25,315 |
1) Includes short-term investments with maturities exceeding three months, see also cash-flow statement.
For balancesheet excluding Bonava, see note 5.
| Mar. 31, 2017 | Mar. 31, 2016 | |||||
|---|---|---|---|---|---|---|
| Shareholders´ | Non-controlling | Total shareholders' Shareholders´ | Non-controlling | Total shareholders' | ||
| SEK M | equity | interests | equity | equity | interests | equity |
| Opening balance, January 1st | 5,553 | 13 | 5,566 | 9,691 | 23 | 9,714 |
| Total comprehensive income | 243 | -2 | 241 | -394 | -5 | -398 |
| Performance based incentive program | -2 | -2 | 5 | 5 | ||
| Closing balance | 5,794 | 11 | 5,805 | 9,303 | 18 | 9,321 |
If previous accounting policies for pensions under IAS 19 had been applied, the equity would have been SEK 1,916 M higher and net indebtedness SEK 987 M lower at March 31 2017.
| 2017 | 2016 | Apr. -16 | 2016 | |
|---|---|---|---|---|
| SEK M | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| OPERATING ACTIVITIES | ||||
| Profit / loss after financial items, continuing operations | 283 | -309 | 1,933 | 1,341 |
| Profit / loss after financial items, discontinued operations | 113 | 6,789 | 6,902 | |
| Adjustments for items not included in cash flow | 500 | 280 | -6,116 | -6,336 |
| Taxes paid | -146 | -158 | -389 | -401 |
| Cash flow from operating activities before changes in working capital | 638 | -73 | 2,217 | 1,506 |
| Cash flow from changes in working capital | ||||
| Divestment of property projects | 1,390 | 3,508 | 2,118 | |
| Gross investments in property projects | -189 | -371 | -1,429 | -1,612 |
| Divestment of housing projects | 1,485 | 1,063 | 2,548 | |
| Gross investments in housing projects | -2,362 | -792 | -3,154 | |
| Other changes in working capital | 31 | 311 | -518 | -237 |
| Cash flow from changes in working capital | 1,232 | -936 | 1,831 | -336 |
| Cash flow from operating activities | 1,869 | -1,009 | 4,049 | 1,170 |
| INVESTING ACTIVITIES | ||||
| 2) Acquisition/Sale of subsidiaries and other holdings |
-4 | -32 | -468 | -496 |
| Acquisition/Sale of tangible fixed assets | -113 | -129 | -597 | -613 |
| Acquisition/Sale of other fixed assets | -15 | -43 | -44 | -72 |
| Cash flow from investing activities | -132 | -204 | -1,109 | -1,181 |
| Cash flow before financing | 1,738 | -1,213 | 2,940 | -11 |
| FINANCING ACTIVITIES | ||||
| Cash flow from financing activities | -367 | 390 | -1,845 | -1,087 |
| Cash flow during the period | 1,370 | -822 | 1,094 | -1,099 |
| Cash and cash equivalents at beginning of period | ||||
| Effects of exchange rate changes on cash and cash equivalents | 3,093 | 4,177 | 3,361 | 4,177 |
| Cash and cash equivalents at end of period | -17 | 6 | -8 | 15 |
| Short-term investments due later than three months | 4,447 218 |
3,361 192 |
4,447 218 |
3,093 190 |
| Total liquid assets at end of period | 4,665 | 3,553 | 4,665 | 3,283 |
1) For information about Bonava's impact on the Group's cash flow in each section, see note 4 Dicontinued operations.
2) Bonava's cash and cash equivalents are included with SEK -658 M for the Jan-Dec 2016.
| 2017 | 2016 | Apr. 16- | 2016 | ||
|---|---|---|---|---|---|
| SEK M | Note 1 | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Net sales | 36 | 5,685 | 15,224 | 20,873 | |
| Production costs | -5,524 | -13,643 | -19,167 | ||
| Gross profit | 36 | 161 | 1,580 | 1,706 | |
| Selling and administrative expenses | -79 | -325 | -998 | -1,244 | |
| Impairment losses | -88 | -88 | |||
| Operating profit | -43 | -164 | 495 | 374 | |
| Result from financial investment | |||||
| Result from participations in Group companies | 515 | 308 | 823 | ||
| Result from participations in associated companies | 30 | 30 | |||
| Result from other financial fixed assets | 1 | 1 | 1 | 1 | |
| Result from financial current assets | 4 | 3 | 10 | 9 | |
| Interest expense and similar items | -5 | -30 | -84 | -109 | |
| Result after financial items | -43 | 325 | 760 | 1,129 | |
| Appropriations | 527 | 814 | 287 | ||
| Tax on net profit for the period | -108 | 42 | -260 | -110 | |
| Net profit for the period | 376 | 367 | 1,315 | 1,306 |
The commission relationship between NCC AB and NCC Sverige AB was discontinued on January 1, 2017. Assets, liabilities, revenues and costs are currently recognized in NCC Sweden and NCC AB, respectively. Accordingly, the employees' employment was transferred from NCC AB to NCC Sverige AB Appropriations pertaining to the operations no longer conducted in the Parent Company were reversed to the Parent Company during the quarter. The Parent Company currently consists primarily of head office functions plus a branch in Norway. Net sales pertain to charges to other Group companies. The average number of employees was 65 (5,659).
The first dividend to shareholders will be sent in April. Dividends from subsidiaries will be received during the second quarter.
In 2016, NCC Sweden AB was included in the Parent Company, when it conducted operations on a commission basis on behalf of NCC AB. The projects were recognized in profit on completion.
| 2017 | 2016 | 2016 | ||
|---|---|---|---|---|
| SEK M | Note 1 | Mar. 31 | Mar. 31 | Dec. 31 |
| ASSETS | ||||
| Fixed assets | ||||
| Intangible fixed assets | 38 | 210 | 108 | |
| Tangible fixed assets | 3 | 98 | 86 | |
| Financial fixed assets | 4,427 | 9,747 | 4,595 | |
| Total fixed assets | 4,468 | 10,055 | 4,789 | |
| Current assets | ||||
| Materials and inventories | 46 | 57 | ||
| Current receivables | 383 | 4,401 | 4,338 | |
| Cash and bank balances | 2 | 2 | ||
| Treasury balances | 1,581 | 9,451 | 5,833 | |
| Total current assets | 1,964 | 13,901 | 10,231 | |
| Total assets | 6,432 | 23,956 | 15,020 | |
| SHAREHOLDERS´ EQUITY AND LIABILITIES | ||||
| Shareholders´ equity | 4,050 | 8,413 | 3,677 | |
| Untaxed reserves | 441 | 527 | ||
| Provisions | 8 | 464 | 569 | |
| Long term liabilities | 2,059 | 2,582 | 2,072 | |
| Current liabilities | 314 | 12,056 | 8,175 | |
| Total shareholders' equity and liabilities | 6,432 | 23,956 | 15,020 |
Group This interim report has been compiled pursuant to IAS 34 Interim Financial Reporting. The interim report has been prepared in accordance with the International Financial Reporting Standards (IFRS) and the interpretations of prevailing accounting standards issued by the International Financial Reporting Interpretations Committee (IFRIC), as approved by the EU.
In other respects, the interim report has been prepared pursuant to the same accounting policies and methods of calculation as the 2016 Annual Report (Note 1, pages 64– 70).
The operations of Bonava are recognized in accordance with IFRS 5, Fixed assets held for sale and discontinued operations.
Accordingly, inter-company volumes from Bonava have not been eliminated from the income statement, nor have inter-company gains between Building and Bonava. Not are internal volumes from Bonava eliminated from the order backlog and orders received.
Bonava's net after-tax profit is recognized on one line.
Bonava's profit after net financial items is recognized separately in the cash flow statement, following which Bonava as a whole is included.
The Parent Company has prepared its interim report pursuant to the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.
The interim report for the Parent Company has been prepared in accordance with the same accounting policies and methods of calculation as the 2016 Annual Report (Note 1, pages 64–70).
| 2017 | 2016 | Apr.-16 | 2016 | |
|---|---|---|---|---|
| SEK M | Jan. -Mar. | Jan. -Mar. | Mar. 17 | Jan. -Dec. |
| Other intangible assets | -16 | -15 | -82 | -82 |
| Owner-occupied properties | -6 | -5 | -25 | -24 |
| Machinery and equipment | -154 | -142 | -632 | -620 |
| Total depreciation 1) | -176 | -163 | -738 | -726 |
1) Excluding impairments. Impairments for the period Apr. -16 - Mar. -17 amounts to SEK 100 M and for the period Jan. - Dec. 2016 to SEK 97 M.
SEK M
| NCC | NCC | NCC | NCC Property | Total | Other and | ||
|---|---|---|---|---|---|---|---|
| January - March 2017 | Building | Infrastructure | Industry | Development | segments | eliminations 1) | Group |
| Net sales, external | 5,495 | 3,297 | 858 | 2,157 | 11,806 | 11,806 | |
| Net sales, internal | 179 | 107 | 229 | 17 | 533 | -533 | |
| Net sales, total | 5,674 | 3,404 | 1,087 | 2,173 | 12,339 | -533 | 11,806 |
| Operating profit | 56 | -27 | -310 | 593 | 312 | -10 | 302 |
| Net financial items | -19 | ||||||
| Profit/loss after financial items | 283 |
| NCC | NCC | NCC | NCC Property | Total | Other and | ||
|---|---|---|---|---|---|---|---|
| January - March 2016 | Building | Infrastructure | Industry | Development | segments | eliminations 1) | Group |
| Net sales, external | 5,108 | 3,278 | 734 | 76 | 9,197 | 9,197 | |
| Net sales, internal | 281 | 88 | 154 | 17 | 539 | -539 | |
| Net sales, total | 5,389 | 3,365 | 888 | 93 | 9,735 | -539 | 9,197 |
| Operating profit | 70 | -11 | -324 | 22 | -243 | -40 | -284 |
| Net financial items | -25 | ||||||
| Profit/loss after financial items | -309 |
1) The figures for the quarter include among others NCC's head office, results from small subsidiaries and associated companies and remaining parts of NCC International Projects, totalling an expense of SEK 28 M (expense: 25). Further, the figures for the quarter includes eliminations of internal profits amounting to an expense of SEK 41 M (expense: 27) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions) amounting to an expence of SEK 23 M (income: 12).
In June 2016, NCC spun off the shares in Bonava to the shareholders. The first day of trading on Nasdaq Stockholm was June 9, 2016, and the final prices paid were SEK 106.50 per Series B share and SEK 107.50
per Series A share, resulting in market capitalization of some SEK 11.5 billion. The capital gain on the spinoff of Bonava was SEK 6,724 M.
| 2017 | 2016 | 2016 | |
|---|---|---|---|
| Jan. -Mar. | Jan. -Mar. | Jan.- 7 Jun. | |
| Net sales | 1,877 | 3,243 | |
| Production costs | -1,550 | -2,710 | |
| Selling and administrative expenses | -144 | -231 | |
| Other operating expenses | |||
| Operating profit/loss 1) | 184 | 303 | |
| Net financial items 2) | -71 | -124 | |
| Profit/loss after financial items | 113 | 179 | |
| Tax | -26 | -36 | |
| Net profit/loss for the period from discontinued operation | 88 | 143 | |
| Capital gain from disposal of discontinued operation Net profit from discontinued operation after tax |
88 | 6,724 6,867 |
|
| Comprehensive income for operation available for distribution | 4 | 4 | |
| Earnings per share | 0.84 | 1.32 |
1) Includes depreciations/write-downs amounting to a total of SEK 8 M for the period Jan.- Mar. 2016 and SEK 10 M for the period Jan.- Dec. 2016. 2) Whereof interest expenses amounting to a total of SEK 62 M for the period Jan. - Mar. 2016 and SEK 108 M for the period Jan. - Dec. 2016.
| 2016 | |
|---|---|
| ASSETS | Jan. -Mar. |
| Intangible assets | 90 |
| Fixed assets | 117 |
| Financial assets | 319 |
| Deferred tax assets | 344 |
| Proprietary housing projects | 13,284 |
| Accounts receivable | 640 |
| Prepaid expenses and accrued income | 262 |
| Other receivables | 1,009 |
| Short-term investments | 39 |
| Cash and cash equivalents | 601 |
| Assets held for distribution | 16,704 |
| LIABILITIES | |
| Long-term interest-bearing liabilities | 2,089 |
| Other long-term liabilities | 135 |
| Other provisions | 740 |
| Current interest-bearing liabilities | 3,334 |
| Accounts payable | 921 |
| Accrued expenses and prepaid income | 850 |
| Other current liabilities | 3,822 |
| Liabilities attributable to assets held for distribution | 11,891 |
| Net assets held for distribution | 4,814 |
| 2017 | 2016 | 2016 | |
|---|---|---|---|
| Below the effects on cashflow from discontinued operations are stated: | Jan. -Mar. | Jan. -Mar. | Jan.- 7 Jun. |
| Cash flow from operating activities before changes in working capital | 77 | 105 | |
| Cash flow from operating activities | -604 | -708 | |
| Cash flow from investing activities | -49 | -81 | |
| Cash flow from financing activities | 628 | 754 | |
| Cash flow during the period from discontinued operations | 52 | 70 |
In the table below, disclosures are made concerning how fair value has been determined for the financial instruments that are continuously measured at fair value in NCC's balance sheet. When determining fair value, assets have been divided into three levels. No transfers were made between the levels during the period.
In level 1, measurement complies with the prices quoted on an active market for the same instruments. Derivatives in level 2 comprise currency forward contracts, cross-currency swaps,
interest-rate swaps, oil forward contracts, as well as electricity forward contracts used for hedging purposes. The measurement to fair value of currency forward contracts, cross-currency swaps, oil forward contracts as well as electricity forward contracts is based on accepted models with observable input data such as interest rates, currencies and commodity prices. The measurement of interest-rate swaps is based on forward interest rates based on observable yield curves. NCC has no financial instruments in level 3.
| SEK M | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |
| Financial assets measured at fair value through profit | |||||||||
| and loss | |||||||||
| Securities held for trading | 117 | 117 | 122 | 122 | 99 | 99 | |||
| Derivative instruments | 45 | 45 | 260 | 260 | 70 | 70 | |||
| Derivative instruments used for hedge accounting | 8 | 8 | 36 | 36 | |||||
| Derivative instruments used for hedge accounting | |||||||||
| attributable to assets held for distribution | 15 | 15 | |||||||
| Total assets | 117 | 53 | 170 | 122 | 275 | 397 | 99 | 106 | 205 |
| Financial liabilities measured at fair value through profit | |||||||||
| and loss | |||||||||
| Derivative instruments | 11 | 11 | 37 | 37 | 14 | 14 | |||
| Derivative instruments used for hedge accounting | 37 | 37 | 132 | 132 | 35 | 35 | |||
| Derivative instruments used for hedge accounting | |||||||||
| attributable to assets held for distribution | 15 | 15 | |||||||
| Total liabilities | 0 | 48 | 48 | 0 | 184 | 184 | 0 | 49 | 49 |
In the table below, disclosures are made concerning fair value for the financial instruments that are not recognized at fair value in NCC's balance sheet.
| SEK M | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |||
|---|---|---|---|---|---|---|
| Carrying | Fair | Carrying | Fair | Carrying | Fair | |
| amount | value | amount | value | amount | value | |
| Long-term interest-bearing receivables held to maturity | 52 | 52 | 104 | 106 | 63 | 63 |
| Short-term investments held to maturity | 101 | 102 | 70 | 71 | 91 | 92 |
| Long-term interest-bearing liabilities | 2,254 | 2,276 | 3,365 | 3,385 | 2,288 | 2,311 |
| Current interest-bearing liabilities | 445 | 446 | 710 | 719 | 723 | 726 |
| Interest-bearing liabilities attributable to assets held for | ||||||
| distribution | 5,423 | 5,423 |
For other financial instruments recognized at amortized cost - accounts receivables, other receivables, cash and cash equivalents, accounts payable and other interest-free liabilities - the fair value does not materially deviate from the carrying amount.
| SEK M | 2017 | 2016 | 2016 |
|---|---|---|---|
| Group | Mar. 31 | Mar. 31 | Dec. 31 |
| Assets pledged | 402 | 1,576 | 377 |
| Contingent liabilities 1) | 685 | 2,000 | 768 |
| Parent company | |||
| Contingent liabilities 1) | 20,509 | 27,173 | 11,882 |
1) Since sureties for former wholly owned subsidiaries of NCC AB in the Bonava Group have not been eliminated, sureties still remaining as outstanding in NCC AB on behalf of Bonava companies have been included in this item. The remaining volume, which includes collateral for agreements concerning future development and has beneficiaries in the form of municipalities and private-sector companies, will continue to be managed during 2017. As a result of agreements between NCC AB and Bonava AB, however, NCC AB will be indemnified by Bonava AB for all undertakings. NCC AB has also received collateral from credit insurance companies for undertakings that remain outstanding pertaining to Bonava´s wholly owned companies.
| 2017 | 2016 | Apr. 16- | 2016 | 2015 | 2014 | 2013 | 20123) | 2012 | |
|---|---|---|---|---|---|---|---|---|---|
| Jan.- Mar. Jan.- Mar. | Mar.- 17 | Jan-dec Jan.- Dec. Jan.- Dec. Jan.- Dec. Jan.- Dec. Jan.- Dec. | |||||||
| Profitability ratios | |||||||||
| Return on shareholders equity, % 1) 4) | 27 | 26 | 27 | 19 | 26 | 22 | 26 | 28 | 23 |
| Return on shareholders equity, % 1) 5) | 140 | 26 | 140 | 118 | 26 | 22 | 26 | 28 | 23 |
| Return on capital employed, % 1) 4) | 19 | 16 | 19 | 13 | 17 | 14 | 15 | 17 | 15 |
| Return on capital employed, % 1) 5) | 77 | 16 | 77 | 63 | 17 | 14 | 15 | 17 | 15 |
| Financial ratios at period-end EBITDA % 4) |
4.1 | -1.3 | 5.3 | 4.7 | 6.2 | 5.8 | 5.9 | 5.6 | 5.6 |
| EBITDA % 5) | 4.1 | -1.3 | 17.3 | 17.0 | 6.2 | 5.8 | 5.9 | 5.6 | 5.6 |
| Interest-coverage ratio, % 1) 4) | 10.7 | 20.0 | 10.7 | 6.6 | 7.1 | 6.4 | 7.8 | 7.5 | 7.0 |
| Interest-coverage ratio, % 1) 5) | 43.4 | 20.0 | 43.4 | 31.1 | 7.1 | 6.4 | 7.8 | 7.5 | 7.0 |
| Equity/asset ratio, % | 23 | 23 | 23 | 22 | 25 | 23 | 22 | 20 | 23 |
| Interest bearing liabilities/total assets, % | 15 | 25 | 15 | 16 | 24 | 26 | 25 | 26 | 24 |
| Net cash +/ net debt -, SEK M | 1,519 | -6,132 | 1,519 | -222 | -4,552 | -6,836 | -5,656 | -6,467 | -6,061 |
| Debt/equity ratio, times | -0.3 | 0.7 | -0.3 | 0.0 | 0.5 | 0.8 | 0.7 | 0.8 | 0.7 |
| Capital employed at period end, SEK M | 9,491 | 19,523 | 9,491 | 9,585 | 19,093 | 18,935 | 18,345 | 17,285 | 18,241 |
| Capital employed, average | 11,554 | 18,789 | 11,554 | 13,474 | 18,672 | 18,531 | 18,005 | 15,755 | 16,632 |
| Capital turnover rate, times1) | 4.9 | 2.8 | 4.9 | 4.1 | 3.3 | 3.1 | 3.2 | 3.6 | 3.4 |
| Share of risk-bearing capital, % | 25 | 24 | 25 | 24 | 25 | 23 | 23 | 21 | 25 |
| Closing interest rate, % | 2.4 | 2.7 | 2.4 | 2.6 | 2.8 | 2.8 | 3.3 | 3.6 | 3.6 |
| Average period of fixed interest, years | 0.8 | 0.7 | 0.8 | 0.9 | 0.9 | 1.1 | 1.2 | 1.1 | 1.1 |
| Per share data Profit/loss after tax, before dilution, SEK 4) |
2.21 | -1.40 | 15.21 | 11.61 | 19.59 | 17.01 | 18.40 | 17.62 | 17.51 |
| Profit/loss after tax, after dilution, SEK 4) | 2.21 | -1.40 | 15.21 | 11.61 | 19.59 | 17.01 | 18.40 | 17.62 | 17.51 |
| Profit/loss after tax, before dilution, SEK 5) | 2.21 | -1.40 | 77.38 | 73.81 | 19.59 | 17.01 | 18.40 | 17.62 | 17.51 |
| Profit/loss after tax, after dilution, SEK 5) | 2.21 | -1.40 | 77.38 | 73.81 | 19.59 | 17.01 | 18.40 | 17.62 | 17.51 |
| Cash flow from operating activities, after dilution, SEK | 17.30 | -9.35 | 37.42 | 10.88 | 37.65 | 12.47 | 23.46 | -0.24 | -0.24 |
| Cash flow before financing, after dilution, SEK | 16.08 | -11.24 | 27.17 | -0.05 | 30.88 | 5.32 | 15.40 | -8.61 | -8.61 |
| P/E ratio 1) 4) | 15 | 15 | 15 | 19 | 13 | 15 | 11 | 8 | 8 |
| P/E ratio 1) 5) | 3 | 15 | 3 | 3 | 13 | 15 | 11 | 8 | 8 |
| Dividend, ordinary, SEK | 8.00 | 3.00 | 12.00 | 12.00 | 10.00 | 10.00 | |||
| Dividend yield, % | 3.5 | 1.1 | 4.9 | 5.7 | 7.3 | 7.3 | |||
| Shareholders' equity before dilution, SEK | 53.61 | 86.25 | 53.61 | 51.39 | 89.85 | 82.04 | 80.24 | 70.58 | 82.97 |
| Shareholders' equity after dilution, SEK | 53.61 | 86.25 | 53.61 | 51.39 | 89.85 | 82.04 | 80.24 | 70.58 | 82.97 |
| Share price/shareholders' equity, % | 413 | 343 | 413 | 439 | 293 | 301 | 262 | 193 | 164 |
| Share price at period-end, NCC B, SEK | 221.50 | 295.70 | 221.50 | 225.40 | 263.00 | 246.80 | 209.90 | 136.20 | 136.20 |
| Number of shares, millions Total number of issued shares 2) |
|||||||||
| 108.4 | 108.4 | 108.4 | 108.4 | 108.4 | 108.4 | 108.4 | 108.4 | 108.4 | |
| Treasury shares at period-end | 0.4 | 0.6 | 0.4 | 0.4 | 0.6 | 0.6 | 0.6 | 0.4 | 0.4 |
| Total number of shares outstanding at period-end before dilution | 108.1 | 107.9 | 108.1 | 108.1 | 107.9 | 107.8 | 107.8 | 108.0 | 108.0 |
| Average number of shares outstanding before dilution during the period | 108.1 | 107.9 | 108.2 | 108.1 | 107.9 | 107.8 | 107.9 | 108.2 | 108.2 |
| Market capitalization before dilution, SEK M 6) | 23,937 | 31,950 | 23,937 | 24,325 | 28,369 | 26,574 | 22,625 | 14,706 | 14,706 |
| Personnel | |||||||||
| Average number of employees | 15,873 | 16,226 | 15,873 | 16,793 | 17,872 | 17,669 | 18,360 | 18,175 | 18,175 |
1) Calculations are based on the rolling 12 month period.
2) All shares issued by NCC are common shares.
3) The amounts are adjusted for change in accounting policy regarding IAS 19.
4) When calculating the key figure the profit arising from the dividend of Bonava, SEK 6 724 M has been excluded.
5) When calculating the key figure the profit arising from the dividend of Bonava, SEK 6 724 M has been included.
6) M arket value December 2016 excludes NCC´s housing business, Bonava. Including Bonava the maket value amounts to SEK 39 563 M .
For definitions of key figures, see www.ncc.group/investor-relations/financial-data/financial-definitions.
NCC is one of the leading Nordic construction and property development companies. With the Nordic region as its home market, NCC is active throughout the value chain – developing and building commercial properties and constructing housing, offices, industrial facilities and public buildings, roads, civil engineering structures and other types of infrastructure. NCC also offers input materials used in construction and accounts for paving and road services. NCC creates future environments for working, living and communication based on responsible construction operations that result in sustaina-ble interaction between people and the environment.
Vision
We will renew our industry providing superior sustainable solutions.
The company's values and Code of Conduct function as the backbone for the way NCC works and operates. They also jointly serve as a compass for how employees are to conduct themselves and act in everyday situations, and provide guidance when decisions have to be made.
Business concept – responsible enterprise NCC develops and builds future environments for working, living and communication. Supported by its values, NCC and its customers jointly identify needs-based, cost-effective and high-quality solutions that generate added value for all of NCC's stakeholders and contribute to sustainable social development..
NCC conducts integrated construction and development operations in the Nordic region. The company has three businesses – Industrial, Construction and civil engineering and Development – and as of January 1, 2016 is organized in four business areas.
NCC Building NCC Infrastructure NCC Industry NCC Property
Development
Chief Financial Officer Mattias Lundgren Tel. +46 70 228 88 81
IR Manager Johan Bergman Tel. +46 8 585 523 53, +46 70 354 80 35
An information meeting with integrated Internet and telephone conference will be held on April 28 at 10:00 a.m. at Tändstickspalatset, Västra Trädgårdsgatan 15 in Stockholm. The presentation will be held in English. To participate in this teleconference, call +46 8 519 993 55 (SE), +44 203 194 05 50 (UK), +1 855 269 26 05 (US) or +49 211 971 900 86 (DE) five minutes prior to the start of the conference. State "NCC."
This is the type of information that NCC could be obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on April 28, 2017, at 8:00 a.m. CET.
Vallgatan 3 SE-170 67 Solna, Sweden
NCC AB SE-170 80 Solna, Sweden
+46 (0)8 585 510 00
.www.ncc.se
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