Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q4 2023 Earnings Presentation
14 slides from Balco Group Ab's earnings presentation, February 2024
Slide 1: Q4 Report 2023
Q4 Report 2023 January - December CAMILLA EKDAHL, CEO MICHAEL GRINDBORN, CFO BALCO / RIIKKU / BALCO ALTANER / RK TEKNIK / TBO-HAGLINDS / STORA FASAD / SÖDERÅSEN
Slide 2: Snapshot of Balco Group
REVENUE PER MARKET (2023) Snapshot of Balco Group The Group 13% • Balco Group was founded in 1987 and consists of the companies Balco AB, Balco Altaner, TBO-Haglinds, RK Teknik, NMT Montageteknik, Stora Fasad and Söderåsens Mur & Kakel. 25% 62% Since January 22, 2024, Riikku Group Oy is also a compa
Slide 3: Increased order intake and new acquisition Q4 2023
Increased order intake and new acquisition Q4 2023 Order intake increased during the quarter Order intake during the fourth quarter increased by 57% to 295 MSEK (188). As expected, sales were lower in the quarter, at Order intake 290 MSEK (383), due to the lower order intake for the year, at 977 MSE
Slide 4: Riikku Group acquisition
Riikku Group acquisition • The largest acquisition in the history of Balco Group. • Riikku Group was established in 2005 and is one of the two main balcony glazing suppliers in Finland. • Sales were approximately 40 MEUR and they have approximately 200 employees. • The Finnish market has the highest
Slide 5: Quarterly results
Quarterly results REVENUE AND ADJUSTED OPERATING PROFIT, MSEK Increased order intake 383 351 346 324 311 326 288 290 253 • Net sales amounted to 290 MSEK (383). Net sales YTD amounted to 1,215 MSEK (1,334). 11,9% 9,3% 8,2% 8,9% 8,7% 8,9% 39 5,6% 34 6,0% 5,3% 27 29 17 28 31 15 15 • Adjusted operating
Slide 6: Renovation
Renovation REVENUE AND EBIT, MSEK Increased order intake 306 327 299 322 284 268 246 242 225 • Net sales in the quarter amounted to 242 MSEK (327), which corresponds to 83 percent of the total net sales. 12,4% 10,7% 9,8% 9,4% 8,1% 8,6% 7,1% 33 24 25 4,8% 35 26 30 4,9% 14 16 12 • Order intake in the
Slide 7: New build
New build REVENUE AND EBIT, MSEK Challenging market conditions 56 56 • Net sales in the quarter amounted to 48 MSEK (56), which corresponds to 42 45 48 17 percent of the total net sales. 27 26 28 24 8,1% 7,3% 5,9% 5,4% 5,9% 5,2% 5,1% 4 2 3 1 3 1 0 1 3,4%2 • Order intake in the quarter amounted to 26
Slide 8: Financial position
Financial Healthy equity ratio and OPERATING CASH FLOW, MSEK position balance sheet, prepared for selective acquisitions 126 104 78 32 20 6 -7 -14 -11 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 • At the end of the quarter, the Group’s equity amounted to 748 MSEK (731). Operating cashflow
Slide 9: Financial targets
Financial targets BALCO GROUP 2023 REVENUE GROWTH Growth “Balco shall achieve growth of 10% per year during a business cycle” -9% EPS GROWTH Profitability “Earnings per share shall grow by 20% per year during a business cycle” -39% “Interest-bearing net debt shall not exceed 2.5 times adjusted earni
Slide 10: Sustainability update
Sustainability update A prerequisite for long-term growth • We continued to make good progress in reducing work-related accidents. The lost time injury frequency rate (LTIF) fell to 5.1 (8.2). • The sickness rate improved in 2023, falling to 3.7 (4.2). • Balco Group has committed to developing short
Slide 11: Market update
Market update • As we said in our Q3 report, activity is starting to pick up and this was even more evident in Q4 with interest rates stabilizing and inflation falling. However, the processes still takes longer time than before due to discussions with banks and potential advisors. 70 90 years lifeti
Slide 12: Acquisition strategy
Acquisition strategy Long experience in acquisitions • Acquisitions are an important part of Balco Group's growth strategy. Our experience from previous acquisitions has given us a clear and structured process for the successful integration and development of the acquired companies. What are we look
Slide 13: Concluding remarks
Concluding remarks Summary Balco Group has a strong market • Net sales in Q4 of 290 MSEK and adj. EBITA-margin 5.3 percent. For the full year 1,215 MSEK and adj. EBITA-margin 7.4%. position with high quality and long • Good development regarding working accidents from an already low level. durabilit
Slide 14: Q&A
Q&A