NCC Group pro forma 2009 and financial objectives for 2010
As of January 1, 2010, NCC will apply IFRIC 15 and, accordingly, pro
formacomparative figuresfor 2009 are presented inthis press release. Due
to the introduction ofIFRIC 15, NCC has adjusted its financial
objectives effective 2010.
As of January 1, 2010, NCC will apply IFRIC 15, Agreements for the
Construction of Real Estate. The new accounting policies will mainly
affect NCC's housing operations, since as of 2010 sales of housing
projects will generally not be recognized as profit until the projects
have been transferred to the end customer, in contrast to 2009 and prior
years, when profit was recognized in pace with completion and sale.
NCC's assets and liabilities will also be affected by the introduction
of IFRIC 15. Interest-bearing liabilities will be higher than previously
because ongoing construction of housing in Swedish tenant owner
associations and Finnish housing companies will have to be recognized in
NCC's balance sheet. Accordingly, reported net indebtedness will
increase. In practice, however, the changes will have no impact on NCC's
financial position and risk.
NCC's financial objective for the debt/equity ratio is being increased
from 1.0 to 1.5, which means that net indebtedness must never exceed 1.5
times shareholders' equity at the end of any quarter.The objective for
the return on shareholders' equity remains unchanged at 20 percent after
tax. The objective pertaining to cash flow has been discontinued, due to
the limitations on net indebtedness.
Consolidated pro forma figures for 2009
Income statement
NCC Group 2009 Change 2009 IFRIC
SEK M Jan.-Dec. IFRIC 15 Jan.-Dec.
Net sales 51 817 4 188 56 005
Production
costs -46 544 -3 719 -50 263
Gross profit 5 273 469 5 742
Selling and
administrative
expenses -3 035 -3 035
Result from
sales of owner-
occupied
properties 10 10
Impairment
losses, fixed
assets -7 -7
Result from
sale of Group
companies 5 5
Competition-
impeding fee -95 -95
Result from
participations in
associated
companies -1 -1
Operating profit/
loss 2 150 469 2 619
Financial
income 70 70
Financial
expense -526 -58 -584
Net financial
items -456 -58 -514
Profit/loss after
net financial
items 1 694 411 2 105
Tax on net
profit/loss for
the year -432 -18 -449
Net profit/loss
for the year 1 262 393 1 656
Balance sheet
NCC Group 2009 Change 2009 IFRIC
SEK M Dec. IFRIC 15 Dec.
ASSETS
Fixed assets
Goodwill 1 750 1 750
Other intangible
assets 120 120
Managed
properties 0 0
Owner-occupied
properties 647 647
Machinery and
equipment 1 910 1 910
Participations
in associated
companies 9 9
Other long-term
holdings of
securities 203 203
Long-term
receivables 1 261 1 261
Deferred tax
assets 117 19 137
Total fixed assets 6 016 19 6 035
Current assets
Property
projects 2 835 2 835
Housing projects 8 363 1 774 10 137
Materials and
inventories 514 514
Tax receivables 200 200
Accounts
receivable 6 355 -15 6 340
Worked-up, non-
invoiced revenues 1 459 -682 777
Prepaid expenses
and accrued income 844 138 982
Other
receivables 1 272 275 1 547
Short-term
investments 286 286
Cash and cash
equivalents 1 831 486 2 317
Total current
assets 23 959 1 976 25 935
TOTAL ASSETS 29 976 1 994 31 970
EQUITY
Shareholders´equity 867 867
Shareholders´equity 7 667 -197 7 470
Minority
interests 18 18
Total
shareholders´equity 7 685 -197 7 488
LIABILITIES
Long-term
liabilities
Long-term
interest-bearing
liabilities 2 941 31 2 972
Other long-term
liabilities 558 558
Deferred tax
liabilities 710 -69 641
Provisions for
pensions and
similiar
obligations 18 18
Other provisions 3 023 -91 2 932
Total long-term
liabilities 7 250 -129 7 121
Current liabilities
Current
interest-bearing
liabilities 391 1 348 1 739
Accounts payable 3 545 -9 3 536
Tax liabilities 38 38
Invoiced
revenues not
worked-up 4 516 -267 4 250
Accrued expenses
and prepaid income 3 539 84 3 623
Provisions 59 59
Other current
liabilities 2 954 1 164 4 118
Total current
liabilities 15 041 2 320 17 361
Total liabilities 22 291 2 191 24 482
TOTAL SHAREHOLDERS'
EQUITY AND
LIABILITIES 29 976 1 994 31 970
ASSETS PLEDGED 319 319
CONTINGENT
LIABLITIES 4 600 -1 041 3 559
Capital employed 11 034 1 182 12 216
Net indebtedness -754 -1 030 -1 784
Debt/equity ratio,
times 0,1 0,2
Equity/assets
ratio, % 26 23
NCC´s financial objectives
As of 2010 NCC has the following financial objectives:
* Return on shareholders' equity after tax must amount to 20 percent.
* Net indebtedness must not exceed 1.5 times shareholders' equity.
NCC's portfolio of development rights (housing development)
As of 2010, NCC will be reporting sales to investors, also known as
package deals, together with housing produced on a proprietary basis.
[Removed graphics] For table see PDF.
For further information, please contact:
Chief Financial Officer Ann-Sofie Danielsson, phone. +46 (0)70-674 07 20.
Investor Relation manager Johan Bergman, phone +46 (0)8-585 523 53, +46
(0)70-354 80 35.
An information meeting to illuminate the effects of IFRIC15 will be held
at 9:30 a.m. CET on March 17 at Vallgatan 5, Solna, Sweden. The
presentation will be held in Swedish and the presentation material will
be available at http://www.ncc.se/capitalmarketday after the meeting.
Enclosed documents:
Consolidated pro forma figures for 2009, and per quarter and per
business area (PDF)
Consolidated pro forma figures for 2009, and per quarter and per
business area (Excel)
All of NCC's press releases are available on www.ncc.se
NCC is one of the leading construction and property development
companies in the Nordic region. NCC had in 2009 sales of SEK 52 billion,
with 18,000 employees.
NCC Group pro forma 2009 and financial objectives for 2010
| Source: NCC AB
Attachments
