Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q1 2018 Earnings Presentation
16 slides from Balco Group Ab's earnings presentation, May 17, 2018
Slide 1: Q1 report 1 January – 31 March 2018
Q1 report 1 January – 31 March 2018 17 May 2018
Slide 2: Q1 – strong momentum continues
Q1 – strong momentum continues Order intake, +23,2% in the quarter, of which Renovations accounted for 95% 1 - Order backlog amounting to SEK 1280m, a growth of SEK 42m in the quarter Revenue growth, +5.1% in the quarter - Underlying growth 12 %, due to 2 - Implementation of IFRS15 delayed revenue r
Slide 3: Q1 financial highlights
Q1 financial highlights Strong demand results in a order intake growth of 23 % • Net sales increased 5.1% to SEK 242.6m (230.8), impact from IFRS15 and delayed planning permissions in Denmark resulting in later start-ups of projects Net sales • Underlying growth 12 % • Renovation accounted for 90.2%
Slide 4: Renovation segment continuous to show strong growth in order intake
Renovation segment continuous to show strong growth in order intake Accumulated order intake per segment Q1 2018 SEK 2018 Renovation, accumulated 2018 New Build, accumulated 300 000 000 Renovation 250 000 000 segment accounted for 95% of total 200 000 000 order intake in Q1 2018 150 000 000 100 000
Slide 5: Q1 – Topline and earnings growth
Q1 – Topline and earnings growth Order intake Order backlog SEK m SEK m 1 280 271 16.3% 1 101 23.2% 220 2017 Q1 2018 Q1 2017 Q1 2018 Q1 Revenue Operating profit SEK m SEK m 5.1% 243 23 231 22 -5,% 2017 Q1 2018 Q1 2017 Q1 2018 Q1 5
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 SEK m SEK m 219 34 197 11.1% -29.6% 24 2017 Q1 2018 Q1 2017 Q1 2018 Q1 Operating profit Operating profit SEK m SEK m 23 24 4.0% 2 n.m. 1 2017 Q1 2018 Q1 2017
Slide 7: Strong financial position
Strong financial position Equity ratio and balance sheet strengthened Equity/asset ratio • Equity/asset ratio continues to improve, now at 45.7% Net debt/EBITDA • Net debt/EBITDA at 1.0x by end of March • Finance costs in the quarter at SEK -1.7m, improved by SEK 9.3m due to the new Lower cost of fi
Slide 8: Financial targets
Financial targets BALCO FIGURES Q1 2018, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 14.4% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.4%1) NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not ex
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 989 1 114 802 1 066 990 639 568 616 2014 2015 2016 2017 2014 2015 2016 2017 Improving profitability
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