NCC's result for the year 2008

NCC Construction’s volume as year before

NCC Construction Group’s turnover was EUR 810 million in 2008, an increase of EUR 6.8 million on the previous year. The share of developer-contracted housing production (own risk) dropped from EUR 284 million in the previous year to EUR 218 million. Profit before extraordinary items and taxes was EUR 2.1 million, having been EUR 44.2 million a year earlier. The return on investment was 5.3% (32.6%). At the same time, the return on equity was 1.2% (31.2%). NCC Construction Group’s unrecognised order backlog at year-end was EUR 477 million, which is EUR 203 million less than the year before; 53% of the domestic order backlog is located in the Helsinki Metropolitan region.

At year-end 2008, NCC had 785 apartments under construction in different parts of Finland; 295 completed apartments remained to be sold in Finland and 133 in the Baltic countries. As the demand fell, planned housing construction projects were postponed to a later date. New projects for 2009 are largely based on so-called housing partnering projects. NCC has signed agreements for constructing ca. 1,200 apartments on plots owned by NCC, but so far, financing has only been arranged for 200 apartments. In St. Petersburg, NCC has plot reserves for constructing ca. 3,900 apartments, but construction will not be started in this economic situation. At year-end there were 131 developer-contracted apartments under construction in the Baltic countries.

In total, nearly EUR 12 million was written down in the financial statement for design costs, unsold apartments and plots, among other things.

At the end of 2008, NCC Construction Group had 2,567 (2,691) employees. Due to the halt in apartment sales and the reduction in the order backlog, it was necessary to reduce the personnel through temporary dismissals, lay-offs, and pension and other arrangements at year-end. As a result, the number of personnel will decrease by ca. 20% early in 2009. The need for reductions is expected to continue in the spring.

The organisation of NCC Construction Ltd was changed early in 2009 so that housing unit development and construction were separated. In addition, the profit centres of Uusimaa and Häme were merged into other units.

NCC Property Development reached a good result

NCC Property Development Oy made a result of EUR 24,1 million with a turnover of EUR 110 million. The good result is backed up by several years of property development and real estate deals.

Real estate deals worth EUR 108 million were made in 2008. Falcon Business Park Tinnu, located in Espoo, was sold to Aberdeen. UBS invested ca. EUR 80 million in the first three stages of the Tulli Business Park in Tampere, and closed a preliminary contract for the fourth stage. At year-end, Airport Plaza Largo, located in Vantaa, was sold to Pohjola's real estate fund and the Lielahti Business Park in Tampere to Ilmarinen.

The focus areas of development in 2008

In 2008, investment was made in reducing the environmental impacts and energy consumption of construction. The Green NCC programme includes sections for apartment, office, and business premises construction and renovation. The customer programme, which lasted for a year and a half, was concluded and its results will be introduced in the units. The development of procurement, international purchases and standardised solutions concerned the whole Group.

- Turnover: EUR 821 million (EUR 830 million)
- Operating profit: EUR 37.7 million (EUR 69.7 million)
- Operating profit rate: 4.6% (8.4%)
- Profit before extraordinary items and taxes: EUR 26.2 million (EUR 64.3 million)

NCC Construction Group in 2008 (2007)

- Turnover: EUR 810 million (EUR 803 million)
- Operating profit: EUR 10.6 million (EUR 46.9 million)
- Operating profit rate: 1.3 % (5.8 %)
- Profit before extraordinary items and taxes: EUR 2.1 million (EUR 44.2 million)
- Unrecognised order backlog: EUR 477 million (EUR 680 million)
- Return on investment: 5.3% (32.6%)
- Return on equity: 1.2% (31.2%)

Completed dwellings 1973 (2290)
Completed dwelling (own risk) 1015 (1182)
Dwellings sold 856 (1321)
Completer dwellings, unsold, 428 (265)