Green Landscaping Group Ab · OMXSTO:GREEN
Green Landscaping Group Ab — Q3 2020 Earnings Presentation
20 slides from Green Landscaping Group Ab's earnings presentation, Nov 11, 2020
Slide 1: Third Quarter 2020
Green Landscaping Group Third Quarter 2020 11 November 2020 Page 1
Slide 2: This is Green
This is Green A leading Nordic landscaping provider 27 subsidiaries – specialized local companies Highly decentralized structure Diversified contract portfolio with long contracts 24 M&A strategy creating additional growth 3 Page 2
Slide 3: Key financials – LTM
Key financials – LTM Net sales, million SEK Order backlog, million SEK 1 986 3 971 EBITA, million SEK EBITA margin, % 83 4.2 Number of employees Acquired annual sales, million SEK 1 236 420 Page 3
Slide 4: Q3 2020 Highlights
Q3 2020 Highlights Net sales growth by 12.1% Key Financials Q3 2020 Organic growth was 0.5 percent Net sales, million SEK Organic growth of 3.5% between comparable entities EBITA amounted to SEK 40.0 (28.8) million. 551.5 An increase of 38.9 percent. EBITA, million SEK 40.0 The EBITA margi
Slide 5: Managing the covid-19 situation
Managing the covid-19 situation We have a minor negative impact on sales and profitability due to the ongoing pandemic Still difficult to assess the future and we maintain a high level of preparedness for action Page 5
Slide 6: Sales growth of 12.1%, primarily driven by acquisitions
Sales growth of 12.1%, primarily driven by acquisitions Net Sales 2020 Q3 vs 2019 Q3, SEK million +12.1% 0.5%* 11.6% Organic growth Acquired growth 552 492 2019 Q3 *3.5% between comparable entities 2020 Q3 Page 6
Slide 7: Strong revenue growth, CAGR 39%
Strong revenue growth, CAGR 39% Revenue and EBITA LTM 2 500 6,0% 5,0% 2 000 4,0% EBITA margin, % 1 500 SEK million 3,0% 1 000 2,0% 500 1,0% 0 0,0% Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Revenue LTM EBITA LTM EBITA LTM margin, % Sales and profitablity down Q1 2020 due
Slide 8: Order backlog of 4 SEK billion
Order backlog of 4 SEK billion Growth of 27.3% compared 4 500 with Q3 2019 4 000 Volume increase compared to previous year primarily 3 500 affected by acquisitions 3 000 The order book also increases compared to Q2 2 500 this year, primarily driven by 2 000 the acquisition of Hadeland Maskindr
Slide 9: Example of recent project; a larger construction work
Example of recent project; a larger construction work Tranemo Trädgårdstjänst Groundwork and external water and sewerage for new construction of a warehouse for Nelly.com in Borås Along the driveway to the warehouse, a concrete wall is built that is approximately 7 meters high at the highest poi
Slide 10: Example of recent project; wood art (tree conservation)
Example of recent project; wood art (tree conservation) Jacksons Trädvård - Ravenwood Ravenwood is part of Jacksons Trädvård which specializes in tree and nature conservation Through recycling, we give trees eternal life in the form of furniture, art projects, landmarks, meeting places and much
Slide 11: Healthy performance in four out of five segments
Healthy performance in four out of five segments Q3 YTD Sales per segment EBITA EBITA SEKm Sales EBITA Sales EBITA Margin, % Margin, % Region 5% 128 10.2 8.0% 334 20.3 6.1% 8% South Region 228 24.0 10.5% 632 57.1 9.0% West Region 134 1.1 0.8% 357 -12.3 -3.5% 41% East 23% Region 48 5.2 10.9% 126 1.3
Slide 12: Financial position
Financial position Cash Flow Statement Net Debt / EBITDA PF 2.9X. Room for continued acquisitions Cash flow from operations, SEK - 12.9 (9) million in quarter. Positive SEK 76 million YTD Big swing in net working capital in quarter, SEK -72 (-56) million, as expected due to seasonal pattern
Slide 13: We have made six acquisitions totaling c. SEK 500 million in revenue
We have made six acquisitions totaling c. SEK 500 million in revenue (annual sales) this year Acquisition Segment Estimated yearly sales (SEKm) Acquired GAST Entreprenør AS Norway 85 Q1 Park i Syd AB Sweden, region south 30 Q1 TH Anlegg AS Norway 30 Q2 Hadeland Maskindrift AS Norway 210 Q3 Bengtsson
Slide 14: Acquired companies in 2020, no. 1
Acquired companies in 2020, no. 1 Park i Syd Founded in 2008 Consultancy company with focus on design and construction of green areas Offers a wide range of services in landscape architecture, design, landscaping, management plans, inspection and project management Annual sales SEK 30 millio
Slide 15: Acquired companies in 2020, no. 2
Acquired companies in 2020, no. 2 GAST Entreprenør AS Founded in 2008 Reputable and solid construction company with long traditions and skilled employees Niche company in the construction industry and is engaged in foundation and construction work, steel and concrete work, epoxy and surface tr
Slide 16: Acquired companies in 2020, no. 3
Acquired companies in 2020, no. 3 TH Anlegg Founded in 2001 Stable growth and good profit margin Long business relationship with GAST Entreprenør. Employees and customers integrated into GAST Entreprenør Annual sales SEK 30 million 14 employees Page 16
Slide 17: Acquired companies in 2020, no. 4
Acquired companies in 2020, no. 4 Hadeland Maskindrift AS Founded in 2004 Company with long history in the industry and well established in the attractive market in Oslo Provider of several services related to seasonally varying outdoor needs Long maintenance contracts with customer such as
Slide 18: Financial targets
Financial targets Growth EBIT margin Leverage (ND/EBITDA) Dividend (% of NI) 10% 8% 2.5x 40% Approximately 40% of the years results to be distributed Net debt in relation to Sales growth on average by as dividends, taking into Achieving an EBITA EBITDA shall not exceed a 10% per year, including both
Slide 19: Summary
Summary A quarter with strong growth, significant margin improvement and two more acquisitions Revenue growth of 12.1% EBITA-margin improved by 1.4 ppc, to 7.3% Six acquisitions completed year-to-date Norra Vrams Cemetery, Bjuv Page 19
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4 landscaping group
Green Landscaping Group — Q3 2020 Earnings Presentation on 6ix