Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q1 2019 Earnings Presentation
16 slides from Balco Group Ab's earnings presentation, May 21, 2019
Slide 1: Q1 report 1 January – 31 March 2019
Q1 report 1 January – 31 March 2019 21 May 2019
Slide 2: Q1 – Strong quarter throughout
Q1 – Strong quarter throughout Order intake, +33% in the quarter to 362 MSEK 1 - of which Renovations accounted for 91% - We expect an increased order intake of 25% the coming quarters - Order intake in Q1 was 34% higher than sales 2 Revenue growth, +11% in the quarter to 270 MSEK - Acquired growth
Slide 3: Q1 financial highlights
Q1 financial highlights Strong demand results in a order intake growth of 33 % • Net sales increased 11.3% to 269.9 MSEK (242.6), an increase of 27.3 MSEK • Acquired growth was 18%, while organic growth was negative by 7% Net sales • Renovation accounted for 83.3% of sales and New Build for 16.7% •
Slide 4: Q1 – Growth of topline, earnings, order intake and order backlog
Q1 – Growth of topline, earnings, order intake and order backlog Order intake Order backlog MSEK MSEK 33.4% 362 19.4% 1 529 271 1 280 2018 Q1 2019 Q1 2018 Q1 2019 Q1 Revenue Operating profit MSEK MSEK 23.1% 11.3% 27 270 243 22 2018 Q1 2019 Q1 2018 Q1 2019 Q1 4
Slide 5: Renovation segment reported 27% growth in order intake in Q1 2019
Renovation segment reported 27% growth in order intake in Q1 2019 Accumulated order intake per segment MSEK 450 400 350 300 Renovation segment 250 accounted for 91% of total order intake in Q1 2019 and 200 90% of the order backlog 150 100 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2019 New Build Renova
Slide 6: Q1 - revenue and earnings growth per business segment
Q1 - revenue and earnings growth per business segment Renovation – solid and profitable growth New Build – new strategy delivers Revenue Revenue MSEK MSEK 2.7% 90.2% 45 219 225 24 2018 Q1 2019 Q1 2018 Q1 2019 Q1 Operating profit Operating profit MSEK MSEK 4.3% 425% 25 3 24 1 2018 Q1 2019 Q1 2018 Q1
Slide 7: Strong financial position
Strong financial position Equity ratio and balance sheet continuously strong, prepared for more acquisitions • Equity/asset ratio at 43.4% (45.7) driven by increased balance sheet (total capital Equity/asset ratio employed) from acquisition of TBO-Haglinds AB and implementation of IFRS 16 • Net debt
Slide 8: Financial targets
Financial targets BALCO FIGURES Q1 2019, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 8.5% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.5%1) NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not exc
Slide 9: Balco has an attractive financial profile – high revenue and order intake growth
Balco has an attractive financial profile – high revenue and order intake growth coupled with improving profitability and stable cash conversion Increasing order intake High revenue growth SEK m SEK m 1 066 1 114 1 094 1 058 1 085 990 1 003 989 802 616 568 639 2014 2015 2016 2017 2018 2019 Q1 LTM 20
Slide 10: Q&A
Q&A 10
Slide 11: Financial appendix
Financial appendix 11
Slide 12: Consolidated income statement
Consolidated income statement Q1 Apr-Mar Jan-Dec SEK M 2018 2017 2017/18 2017 Net sales 242,6 230,8 1 000,7 989,0 Production and project costs -182,4 -173,2 -750,3 -741,1 Gross profit 60,2 57,6 250,4 247,8 Sales costs -24,8 -22,7 -89,7 -87,6 Administration costs -13,4 -11,8 -70,0 -68,4 Share of prof
Slide 13: Consolidated balance sheet
Consolidated balance sheet 31-Mar 31-Mar 31-Dec SEK M 2018 2017 2017 ASSETS Non-current assets Goodwill 372,3 371,3 372,0 Other intangible assets 11,9 11,0 11,4 Property, plant and equipment 141,2 85,5 130,3 Financial assets 4,3 4,1 4,1 Deferred tax assets 1,8 0,5 0,9 Total non-current assets 531,6
Slide 14: Consolidated cash flow statement
Consolidated cash flow statement Q1 Apr-Mar Jan-Dec SEK M 2018 2017 2017/18 2017 Operating activities Operating profit (EBIT) 22,0 23,1 91,2 92,3 Adjustment for non-cash items 4,6 3,7 20,5 19,7 Interest received 0,0 0,0 0,0 0,0 Interest paid -1,6 -1,2 -7,6 -7,2 Income tax paid -3,1 -0,1 -9,3 -6,2 Ca
Slide 15: Key ratios
Key ratios Q1 Apr-Mar Jan-Dec SEK M 2018 2017 % 2017/18 2017 Net sales, SEK M 242,6 230,8 5% 1 000,7 989,0 Order intake, SEK M 271,2 220,1 23% 1 164,6 1 113,5 Order backlog, SEK M 1 280,0 1 100,6 16% 1 280,0 1 238,4 Gross profit, SEK M 60,2 57,6 4% 250,4 247,8 EBITDA, SEK M 26,7 27,3 -2% 108,9 109,4
Slide 16: Segments financials
Segments financials Q1 Apr-Mar Jan-Dec Net sales, SEK M 2018 2017 % 2017/18 2017 Renovation 218,8 197,0 11% 869,3 847,5 New Build 23,8 33,8 -30% 131,4 141,4 Group other 4,0 1,8 123% 10,8 8,6 Elimination -4,0 -1,8 123% -10,8 -8,6 Total sales 242,6 230,8 5% 1 000,7 989,0 Q1 Apr-Mar Jan-Dec Operating p