Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q1 2020 Earnings Presentation
17 slides from Balco Group Ab's earnings presentation, May 14, 2020
Slide 1: Q1 report 1 January – 31 March 2020
Q1 report 1 January – 31 March 2020 14 May 2020 Kenneth Lundahl CEO Michael Grindborn, CFO
Slide 2: Snapshot of Balco
Snapshot of Balco The leading provider of complete glazed balcony systems in the Nordics Geographic overview • +30 years in the market for balcony systems • Provider of the leading glazed balcony systems in the market: - one-stop shop, inhouse expertise, own development and production - own sales fo
Slide 3: Q1 – Strong revenue and profit growth
Q1 – Strong revenue and profit growth Growth in net sales and EBIT 1 - Order intake +6% higher than sales. Order backlog increased by 20 MSEK. - Net sales +19% - Operating profit +27% Covid-19 - The impact of Covid-19 on Balco has so far been limited. All production units are in 2 full operation and
Slide 4: Q1 financial highlights
Q1 financial highlights Strong revenue and profit growth • Net sales increased 19% to 321 MSEK (270) Net sales • Renovation accounted for 88% of sales and New Build for 12% • Order intake was 6% higher than net sales and accounted to 341 MSEK (362) The Renovation segment accounted for 78% of the ord
Slide 5: Q1 – Strong revenue and profit growth
Q1 – Strong revenue and profit growth Order intake Order backlog MSEK MSEK 2% -6% 1 529 1 561 362 341 2019 Q1 2020 Q1 2019 Q1 2020 Q1 Revenue Operating profit MSEK MSEK 35 30 27% 19% 25 34 321 27 20 270 15 2019 Q1 2020 Q1 2019 Q1 2020 Q1 5
Slide 6: Q1 – development per business segment (Renovation)
Q1 – development per business segment Renovation segment – strong growth in revenue and profit Order intake Order backlog MSEK MSEK -3% -19% 1 386 1 341 328 266 2019 Q1 2020 Q1 2019 Q1 2020 Q1 Revenue Operating profit MSEK MSEK 25% 29% 281 32 225 24 2019 Q1 2020 Q1 2019 Q1 2020 Q1 6
Slide 7: Q1 – development per business segment (New Build)
Q1 – development per business segment New Build – new maritime order Order intake Order backlog MSEK MSEK 54% 120% 220 75 143 34 2019 Q1 2020 Q1 2019 Q1 2020 Q1 Revenue Operating profit MSEK MSEK -12% -14% 45 40 3 3 2019 Q1 2020 Q1 2019 Q1 2020 Q1 7
Slide 8: Strong financial position
Strong financial position Equity ratio and balance sheet strong, prepared for more acquisitions Equity/asset ratio • Equity/asset ratio at 46.1% (43.4) driven by increased profit and low investments • Net debt/EBITDA at 0.9x (1.6), the reduction in debt is due to improved profit and Net debt/EBITDA
Slide 9: Financial targets
Financial targets BALCO FIGURES Q1 2020, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 17% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.6% NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not exceed
Slide 10: Sustainability initiatives
Sustainability initiatives • Materials and construction last for at least 90 years and are fully Lifetime 90 years recyclable thereafter • Only need two minor services during these 90 years Energy savings and • Energy savings of 15-30% depending on product and conditions reduced maintenace • Reduced
Slide 11: Q&A
Q&A 11
Slide 12: Financial appendix
Financial appendix 12
Slide 13: Consolidated income statement
Consolidated income statement 13
Slide 14: Consolidated balance sheet
Consolidated balance sheet 14
Slide 15: Consolidated cash flow statement
Consolidated cash flow statement 15
Slide 16: Key ratios
Key ratios Jan-Mar AprMar Jan-Dec MSEK 2020 2019 2019/20 2019 Net sales 321,2 269.9 12719 12206 Order intake 3406 3618-13278 = 13491 Order backiog 15609 15287 1560.9 15224 Gross proft 80,4 64,6 315.8 30,0 EBITDA 436 36,5 185,0 1769 Adjusted EBITDA 43.6 35,5 185,0 176.9 Operating profit (EBIT) 342 27
Slide 17: Segments financials
Segments financials Jan-Mar Apr-Mar Jan-Dec Net sales, MSEK 2020 2019 2019/20 2019 Renovation 2816 2247 1101,3 1044.4 New Build 39,6 45,2 170,6 176,2 Group other 56 3,9 177 16,1 Elimination 56 3,9 “17,7 -16,1 Total Net Sales 321,2 -269,91274,9 += 1220,6 Jan-Mar Apr-Mar Jan-Dec Operating profit, MSEK