Bravida Holding Ab · OMXSTO:BRAV
Bravida Holding Ab — Q3 2023 Earnings Presentation
30 slides from Bravida Holding Ab's earnings presentation, Oct 25, 2023
Slide 1: Bravida Q3 2023
Bravida Q3 2023 Mattias Johansson, CEO Åsa Neving, CFO 25 October 2023
Slide 2: Today's presenters
Today’s presenters Mattias Johansson Åsa Neving CEO and Group President since 2015* CFO since 2019 *With Bravida since 1998 2
Slide 3: Agenda
Agenda 1. Bravida and our position in the Nordic market 2. Q3 2023 3. Performance by country 4. Summary and Q&A
Slide 4: 1. Bravida and our position in the Nordic market
1. Bravida and our position in the Nordic market
Slide 5: About Bravida
About Bravida The leading Nordic provider of Local presence throughout Broad and stable customer base sustainable technical solutions the Nordics for buildings 29.3 bn Net sales LTM, SEK 13,800 employees Sustainable solutions throughout the lifecycle of a building 91% Recurring customers 325 85% bra
Slide 6: Robust and resilient cash flow generator
Robust and resilient cash flow generator Net sales LTM in SEKb and CAGR Stable profitability LTM EBITA in Cash conversion LTM in % SEKm and CAGR 6 *adjusted
Slide 7: Nordic leader in sustainable technical solutions
Nordic leader in sustainable technical solutions • Leading Nordic provider of sustainable technical solutions for buildings Sustainable solutions throughout the • Every customer has access to our entire lifecycle of a building offering • Lifecycle perspective for every building • The industry leader
Slide 8: 2. Q3 2023
2. Q3 2023 ~+>bravida
Slide 9: Market outlook
Market outlook • Still a relatively good demand for service and installation except for newbuild residentials • Bravida has a relatively low exposure to newbuild residentials • Increasing price pressure due to lower demand in some segments and areas • Uncertain times, increasing interest rates and i
Slide 10: Q3 highlights
Q3 highlights Net sales +8% • 3% organic growth, organic growth in Sweden, Norway and Finland • 2% growth from acquisitions and 3% from FX Service Order backlog sales growth • Increased sales in both service and installation +3% SEK 16,459m • Order intake improving in all countries, in total +11% In
Slide 11: Group Q3 2023
Group Q3 2023 • Growth in sales +8%, both in service and installation • Organic growth +3% and from acquisitions +2%, FX +3% • EBITA-margin 5.4 (5.9)% • Increasing cost for new systems SEK 25m (14) • Order intake +11% • Order backlog -8% YoY 11
Slide 12: Net sales performance in Q3, SEKm
Net sales performance in Q3, SEKm Sales growth +8% ▪ Organic growth +3% ▪ Growth in both service and installation business ▪ Organic growth in Sweden, Norway and Finland ▪ Growth from acquisitions +2% ▪ FX effects +3% 12
Slide 13: EBITA, SEKm
EBITA EBITA, SEKm • EBITA-margin 5.4 (5.9)% • EBITA-margin unchanged in Norway but lower in the other countries • EBITA-margin affected by high inflation and growth rate. We have not been able to pass on all cost increases to customers in the quarter • EBITA affected by non-recurring costs for imple
Slide 14: Driving the business plan forward increases administrative expenses
Driving the business plan forward increases administrative expenses but will enable improved margin and growth Increased recurring costs Initial costs for investments in new businesses ‒ Strengthening the IT platform ‒ Technical Facility Management – according to plan ‒ Digital development capabilit
Slide 15: Order intake and backlog, SEKm
• Stable order backlog in the quarter • Order backlog decreased by -8% YoY, to SEK Order intake and backlog, SEKm 16,459m • Order intake increased by +11% YoY, growth in all countries Order intake LTM and per quarter Order backlog 15
Slide 16: Sustainability
Sustainability LTIFR (lost time injury frequency rate) LTM • LTIFR on Group level, +3% • Significantly lower LTIFR in Finland and Norway but higher in Denmark • Norway well below target, <5,5 • 23% of all 8,400 vehicles are electric driven • Change in CO2e emissions from vehicles in relation to net
Slide 17: Acquisitions 2023
Acquisitions 2023 • 12 acquisitions 2023 adding annual sales of SEK 414m 1 bolt-on SEK 23m • Three acquisition signed in Q3, adding Finland Sweden annual sales of SEK 740m • Continued strong pipeline Norway • Acquisitions still at attractive multiples 4 bolt-ons SEK 124m SEK 4 bolt-ons Acquisitions
Slide 18: Acquisition in Q4 of Thunestvedt Group in Norway
Acquisition in Q4 of Thunestvedt Group in Norway • Adding SEK 600m in sales Bravida acquired turn-around case Oras 2017 with sales of around SEK 1.1bn • Market leader within electrical installation and service in Vestland in Norway The business today: ‒ Sales +25% to approximately SEK1.4b • Losses 2
Slide 19: 3. Performance by country
3. Performance by country
Slide 20: Sweden Q3 2023
Sweden Q3 2023 • Growth in sales +7% • Growth in installation • Organic growth +5% and from acquisitions +2% • EBITA-margin was 6.8% • Order intake +2% • Order backlog -9% YoY • Three large orders: hospital, prison and probation service and wastewater treatment plant • In Q4 an order regarding insta
Slide 21: Norway Q3 2023
Norway Q3 2023 • Growth in service • Organic growth +2%, growth from acquisitions +1% and FX -3% • EBITA-margin unchanged at 5.2% • Order intake +22% • Order backlog -22% YoY 21
Slide 22: Denmark Q3 2023
Denmark Q3 2023 • Growth in sales +10% • Organic growth -2%, growth from acquisitions +1% and FX +11% • EBITA-margin declined to 3.5 (4.6)%, explained by project write-downs mainly due to cost increases and one less successful acquisition • Order intake +23 • Order backlog +1% YoY 22
Slide 23: Finland Q3 2023
Finland Q3 2023 • Growth in sales +32% • Growth in service and installation • Organic growth +12%, growth from acquisitions +8% and from FX +12% • EBITA-margin declined to 2.5 (5.0)%, explained by project write-downs mainly due to cost increases • Order intake +4% • Order backlog +23% YoY 23
Slide 24: Net debt and Cash Flow in SEKm
Net debt and Cash Flow in SEKm Operating Cash Flow, SEKm Key highlights Q3 2023 Financial position Q3 2023 Cash balances 672 ▪ SEK 2,500m sustainable linked (RCF) Term loan, RCF, Commercial paper -2,436 –Drawn facility SEK 200m –Maturity 2024-10-14 Leasing, IFRS 16 -1,272 ▪ Commercial paper programm
Slide 25: Financial targets
Financial targets >7% >100% <2.5x Net debt/EBITDA EBITA margin Cash conversion Target leverage ratio >5% >50% of net profit Sales growth Target pay-out ratio 25
Slide 26: 4. Summary
| 4. Summary
Slide 27: Summary Q3 2023
Summary Q3 2023 • Sales increased, +8% • Organic growth +3% • Organic growth in Sweden, Norway and Finland • Growth from acquisitions +2% • EBITA-margin affected by high inflation and growth rate leading to lower productivity. We have not been able to pass on all cost increases to customers in the q
Slide 28: 2023-10-25 ~+>bravida
2023-10-25 ~+>bravida
Slide 29: Upcoming events
Upcoming events Day Event 15 February 2024 Interim Report Q4 2023 29
Slide 30: We bring buildings to life.
We bring buildings to life. <>bravida