Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Investor Presentation (May 2024)
24 slides from Byggmax Group Ab's investor presentation, May 29, 2024
Slide 1: Byggmax Corporate Overview: A Journey of Efficiency and Growth
Slide 2: Agenda
AGENDA Company update Strategic focus areas Financial perspective Sum-up and Q&A 2 BYGGMAX
Slide 3: Everybody has the right to a fantastic home
EVERYBODY HAS THE RIGHT TO A FANTASTIC HOME Strong position Right assortment Best price We care on attractive market store combined with e-com and quick & easy shopping people, society, environment Which builder's merchant do you find to have the lowest price? 67% ® Butiker Showrooms 3 BYGGMAX
Slide 4: A journey of efficiency and growth
A JOURNEY OF EFFICIENCY AND GROWTH Net sales, SEK billions EBITA-margin, percent 8 7 6 5 4 3 2 1 0 _ mel SSS RSSS Sees s sess seerezreseeea SeeSsSsToRgggggG€RRSadnanaadaay ill TE 200° RR |= Buildor:. 2023 4 markets % 212 18% stores e-commerce 15% share > G1 176 5% e 0% BSEKnetsales MSEKEBITA
Slide 5: The building materials sector differs from other retail industries
THE BUILDING MATERIALS SECTOR DIFFERS FROM OTHER RETAIL INDUSTRIES Low level of trends in the Large share of local Omni important — low assortment suppliers expected online share 2030 Grocery Buildin materials | Furniture & interior Clothing and shoes Durable goods BB Nordic European Outside EU Elec
Slide 6: General trend towards discount
GENERAL TREND TOWARDS DISCOUNT DEVELOPMENT OF DISCOUNT WITHIN RETAIL IN SWEDEN Higher sales growth for Stronger development of long period of time store portfolio CAGR, 2004-2022 No of stores 2022 vs. 2017 8% 8% 3.5% -7% Retail Discount Retail Discount More profitable and less sensitive to economic
Slide 7: A true discount retailer with strong position among customers
A TRUE DISCOUNT RETAILER WITH STRONG POSITION AMONG CUSTOMERS WHICH BUILDER’S MERCHANT DO YOU FIND TO HAVE THE DEVELOPMENT OF BYGGMAX VS. MARKET LOWEST PRICES? PERCENT 32 Byggmax Group Gr Nordic B2C building material market 20 8% 8% 12 ° ° 4% 3% 2% % = oe “ ggrapporten 2024, Kantar Si ie) -5 -12 -16
Slide 8: We care. About people, society and the environment
WE CARE. ABOUT PEOPLE, SOCIETY AND THE ENVIRONMENT A culture based on strong values: On the customers’ side: High Sustainability: It should be easy to Engagement, responsibility & change customer satisfaction scores make good choices BYGGMAX
Slide 9: Significant investments made in growth levers
SIGNIFICANT INVESTMENTS MADE IN GROWTH LEVERS Store upgrades e-com New stores Add-on M&A tity BYGGMAX au? ' | FORNYA HEMMET MED FARG feiss eat ived er soecvisrere S = —— Bygfilax | Labpris TRE | ° BYGGMAX
Slide 10: Operational excellence to secure lowest cost
OPERATIONAL EXCELLENCE TO SECURE LOWEST COST Number of stores Cost End of year SEK millions -10% +5 New digital tools to 1436 1299 support store organization 204 209 Minimized waste and reduced energy consumption Reduced administration and overhead 2022 2023 2022 2023 10 BYGGMAX
Slide 11: Optimization of assortment and inventory levels
OPTIMIZATION OF ASSORTMENT AND INVENTORY LEVELS Inventory Products out-of- SEK billions stock Percent i -20% New tools and ways-of- 1,6 working to optimize inventory level of each 1,3 product More efficient logistics flows Improved in-store product availability aan a Q4'22 Q4'23 Q4'22 Q4'23
Slide 12: Agenda
AGENDA 12 Company update Strategic focus areas Financial perspective Sum-up and Q&A BYGGMAX
Slide 13: Clear roadmap for delivering the next phase of our journey
CLEAR ROADMAP FOR DELIVERING THE NEXT PHASE OF OUR JOURNEY - EMPHASIS ON ORGANIC GROWTH AND VALUE CREATION Pandemic Post-pandemic Future ———— Commercial investments Improved efficiency Full leverage SIMPLIFY AMPLIFY ELEVATE
Slide 14: Secure profitability and growth
SECURE PROFITABILITY AND GROWTH SIMPLIFY AMPLIFY * Focus on simplicity and the + Leverage commercial most efficient operations investments * Increase efficiency in * Scale through efficiency and inventory and logistics operational performance * Refine online assortment * Enhance online channels — se
Slide 15: Plan designed to reach financial targets
PLAN DESIGNED TO REACH FINANCIAL TARGETS SALES GROWTH EBITA MARGIN * Growth exceeding market, * The EBITA margin should be implying at least 5 percent at least 7 percent per year annual sales increase over a business cycle LEVERAGE DIVIDEND * Net debt excl. IFRS 16/ * Distribute 50 percent of net EB
Slide 16: Agenda
AGENDA 16 Company update Strategic focus areas Financial perspective Sum-up and Q&A BYGGMAX
Slide 17: Potential to continue grow sales beyond the market
POTENTIAL TO CONTINUE GROW SALES BEYOND THE MARKET Stronger growth than the market SEK 6.1 bn + Discount growing + Full leverage of commercial investments New sales potential by developing selective categories Expand footprint 2023 Normalized Discount Amplify - Elevate - Future market growing levera
Slide 18: The journey toward our profitability target
THE JOURNEY TOWARD OUR PROFITABILITY TARGET EBITA MARGIN 2-3% >7% 1-2% 1-2% 2.9% + Logistics + E-com * Merchandising & sales + Administration + Availability of products * Store portfolio + Scale instore operations * Customized online * Customer insights & when market returns products communication 2
Slide 19: Strong cash generation enabling dividends and growth
STRONG CASH GENERATION ENABLING DIVIDENDS AND GROWTH CUMULATIVE EBITDA AND CASH ALLOCATION 2019-2023; SEK BILLIONS 3.3 0.5 oo 0.8-0.9 + Strong cash conversion + Limited capex needs in normal operations 1.4 + Enabling dividends to shareholders EBITDA Change in Normal Commercial Operating cash working
Slide 20: A primary focus is to continue strengthening balance sheet
A PRIMARY FOCUS IS TO CONTINUE STRENGTHENING BALANCE SHEET 1400 3,5 1200 3,0 Tas Adapted capex level, 1000 2,5 optimized inventory and cost control will reduce leverage 800 2,0 Net debt excl. IFRS 16/ 600 15 EBITDA R12 shall not be more than 2.5x 400 1,0 200 0,5 ie) 0,0 2019 2020 2021 2022 2023 GENE
Slide 21: Financial perspective
FINANCIAL PERSPECTIVE A primary focus near-term is to continue strengthening balance sheet Revenue potential with substantial scale effects and high conversion from sales to results when market normalizes Ambition to continue to grow profitable beyond the market — efficient business model with high
Slide 22: Agenda
AGENDA 22 Company update Strategic focus areas Financial perspective Sum-up and Q&A BYGGMAX
Slide 23: Ready for the future
READY FOR THE FUTURE Updated targets confirming ambition to secure profitable growth and value creation Clear roadmap to achieve targets built on three pillars — Simplify, Amplify, Elevate Byggmax is ready to handle substantially increased volumes, providing opportunities for both dividends to share
Slide 24: Är smart handla billigt
[AR SMART HANDLA BILLIGT