Green Landscaping Group Ab · OMXSTO:GREEN
Green Landscaping Group Ab — Q1 2020 Earnings Presentation
20 slides from Green Landscaping Group Ab's earnings presentation, May 6, 2020
Slide 1: First Quarter 2020
Green Landscaping Group First Quarter 2020 6 May 2020 Page 1
Slide 2: Today's presenters
Today’s presenters Started as CEO of Green Landscaping in 2015. Johan Nordström Johan has previously been Chairman of the Board and President of CEO Car-O-Liner Group AB and Car-O-Liner Production and held several CEO positions over the years. Studied economics at Lund University and the Unive
Slide 3: Our vision is to create a green city for all
Our vision is to create a green city for all through entrepreneurship, social responsibility and sustainable business Page 3
Slide 4: Our service offering
Our service offering Ground Maintenance Landscaping Winter Services Sports Landscaping Arborist services Maintenance and services Design and construction of Snow plowing/removal, Services and products Tree care, pruning, for all outdoor areas all outdoor green areas deicing and gritting. for Green S
Slide 5: The #1 landscaping service provider in Sweden
The #1 landscaping service provider in Sweden FINANCIAL 24 units distributed over 5 geographic segments GOALS Growth EBITA margin 10% 8% Populous and diversified contract portfolio Leverage Dividend 2,5x 40% Market leading profitability GEOGRAPHY M&A strategy creating additional growth Page
Slide 6: First Quarter 2020
First Quarter 2020 Page 6
Slide 7: Highlights first quarter 2020
Highlights first quarter 2020 Development Financials Q1 Absence of winter activity impacts organic Net sales Net sales growth growth and profitability negatively in the quarter YTD growth of -18.7%, whereof -20.7 ppc 375.1 -18.7 organic SEKm % YTD Adj. EBITA of -5.0% (0,3%) Adjusted EBITA Adju
Slide 8: Q1 2020 was exceptional from a snow perspective
Data from SMHI shows that Q1 2020 was exceptional from a snow perspective; 10 cm vs an average of 59 Nysnö Q1 2010 - Q1 2020, cm 160 140 120 100 80 60 40 20 - Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Nysnö Medel för perioden Centimeter of snow in Stockh
Slide 9: The exceptionally mild winter had a huge negative impact on revenue and EBITA
The exceptionally mild winter had a huge negative impact on revenue and EBITA during the first quarter Page 9
Slide 10: Segment development
Segment development SALES PER SEGMENT (%) The absence of winter has had a negative 7 impact on the revenue and profitability 22 South, West and North has managed the 22 Region South quarter relatively well Region West East and Mid has been impact severely due to Region Mid Region East the mild
Slide 11: Actions to reduce winter dependency
Actions to reduce winter dependency Proactively build-up orderbook of landscaping projects to create flexibility if winter is mild Reduce fixed costs Discuss risk sharing between customers and suppliers. E.g. cost of personnel on- call, revenue model etc. Encourage customers to improve procu
Slide 12: Financials
Financials Page 12
Slide 13: Key P&L items
Key P&L items P&L Sales and profitability development NET SALES (SEKm) SEKm Q1 2020 Q1 2019 2020 2019 600 524,5 2 500 507 Net sales 375.1 461.3 375.1 461.3 500 461,2 492 2 000 375 375,1 Quarterly sales Adjusted EBITA -18.7 1.3 -18.7 1.3 400 309,3 1 500 Sales LTM 300 264,2 267,1 224,6 228,8 Result af
Slide 14: Balance sheet
Balance sheet SEKm 31 Mars 2020 31 Mars 2019 Net debt SEK 719.7 million Total non-current assets 979.7 862.0 Total current assets 428.2 525.5 Cash and available facility of SEK 88.1 million Total assets 1407.9 1387.5 Working Cap SEK -4.7million, c. -0.2%* (*working capital % of LTM sales) Tota
Slide 15: Negative working capital in the first quarter
Negative working capital in the first quarter Adjusted working capital LTM 80 7,0% 70 6,0% Adjusted working capital % of LTM sales 60 5,0% 50 Adjusted working capital 4,0% 40 30 3,0% 20 2,0% 10 1,0% 0 1712 1803 1806 1809 1812 1903 1906 1909 1912 2003 0,0% -10 -20 -1,0% Adjusted working capital (SEKm
Slide 16: Cash flow
Cash flow SEKm Q1 2020 Q1 2019 Improved cash flow from operating activities. This is in all Cash flow from operating activities 0.4 -1.0 essential explained by the reduction in working capital since Q4 before changes in working capital 2019. Per Q1 2020 working capital amounts to -4.7 million. Cas
Slide 17: Financial targets
Financial targets Growth ► Target: Sales growth on average by 10% per year (including both organic and acquisitions). 10% ► Status: -18.7% concerning Q1 2020. EBITA margin ► Target: Achieving an EBITA margin of 8%. 8% ► Status: Adjusted EBITA margin -5% (0.3%) concerning Q1 2020. Leverage (ND/EBITDA
Slide 18: Summary
Summary Page 18
Slide 19: Summary first quarter 2020
Summary first quarter 2020 Absence of winter activity impacts organic growth and profitability negatively in the quarter Favorable market and long-term contracts give good conditions for sustainable growth Two acquisitions completed in the quarter; GAST Entreprenør AS ( “GAST”) and Park i Syd.
Slide 20: Page 20
Green landscaping group
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