Slide 1: Q4 report 1 October – 31 December 2018
Q4 report 1 October – 31 December 2018 22 February 2019
Slide 2: Q4 financial highlights
Q4 financial highlights Order intake growth of 36% within Renovation segment • Net sales increased 7.3% to SEK 304.2m (283.7), an increase of SEK 20.5m. Net sales • Underlying sales growth 8.8% adjusted for IFRS15 impact • Renovation accounted for 88.6% of sales and New Build for 11.4% • Order intak
Slide 3: Acquisition of TBO-Haglinds AB to strengthen future growth and earnings
Acquisition of TBO-Haglinds AB to strengthen future growth and earnings Status acquisition of TBO-Haglinds and impact on fiscal year 2018 - Closing and transfer of ownership of TBO-Haglinds was finalized in December 2018, i.e. the year end balance sheet includes the effects of the acquisition 1 - Ac
Slide 4: Topline and earnings growth – Q4 and full year 2018
Topline and earnings growth – Q4 and full year 2018 Revenue Q4 Operating profit and adjusted operating profit Q4 SEK m SEK m Operating profit Adjusted operting profit 304 42 284 7.3% 37 11.2% 26 27 2017 Q4 2018 Q4 2017 Q4 2018 Q4 Revenue full year 2018 Operating profit and adjusted operating profit
Slide 5: Development order intake and order backlog – Q4 and full year 2018
Development order intake and order backlog – Q4 and full year 2018 Order intake Q4 Order intake full year 2018 SEK m SEK m 1,114 New Build Renovation 305 1,003 296 -9.9% 2.9% 956 928 157 75 2017 Q4 2018 Q4 2017 FY 2018 FY Order backlog Q4 and full year 2018 Order backlog Q4 and FY 2018 incl. TBO Hag
Slide 6: Renovation segment reported 36% growth in order intake in Q4 2018
Renovation segment reported 36% growth in order intake in Q4 2018 Accumulated order intake per segment Q4 2018 SEK m 450 400 350 Renovation segment 300 accounted for 93% of total 250 order intake in Q4 2018 vs. 200 70% in Q4 2017 150 100 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 New Buil
Slide 7: Continued growth within focus segment Renovation – Q4 and full year 2018
Continued growth within focus segment Renovation – Q4 and full year 2018 Renovation - revenue Q4 Renovation - operating profit Q4 SEK m SEK m 270 36 37 1.4% 246 9.7% 2017 Q4 2018 Q4 2017 Q4 2018 Q4 Renovation - revenue full year 2018 Renovation - operating profit full year 2018 SEK m SEK m 948 115 1
Slide 8: New Build segment – impacted by higher costs for first maritime project
New Build segment – impacted by higher costs for first maritime project New Build - revenue Q4 New Build - operating profit Q4 SEK m SEK m 2,5 38 35 -8.5% 2017 Q4 2018 Q4 2017 Q4 2018 Q4 -11,9 New Build - revenue full year 2018 New Build - operating profit full year 2018 SEK m SEK m 7,3 141 -21.9% n
Slide 9: Strong financial position
Strong financial position Solid balance sheet and improving profitability Equity/asset ratio • Equity/asset ratio at 41.4% (43.6) driven by increased balance sheet (total capital employed) from acquisition of TBO-Haglinds AB • Net debt/EBITDA at 1.4x (0.7) by end of December 2018 including the acqui
Slide 10: Financial targets
Financial targets BALCO FIGURES 2018 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 7.0% 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 exceed 2.5
Slide 11: Balco has an attractive financial profile – high revenue growth coupled with good profitability
Balco has an attractive financial profile – high revenue growth coupled with good profitability and stable cash conversion Order intake Stable revenue growth SEK m SEK m 1 058 989 1 114 802 1 066 990 1 003 639 568 616 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Strong profitability Attractive
Slide 12: Q&A
Q&A 12
Slide 13: Financial appendix
Financial appendix 13
Slide 14: Consolidated income statement
Consolidated income statement Q4 Jan-Dec SEK M 2018 2017 2018 2017 Net sales 304,2 283,7 1 058,1 989,0 Production and project costs -237,7 -209,9 -804,3 -741,1 Gross profit 66,5 73,8 253,8 247,8 Sales costs -24,4 -24,3 -94,1 -87,6 Administration costs -15,0 -23,6 -53,9 -68,4 Share of profit or loss
Slide 15: Consolidated balance sheet
Consolidated balance sheet 31-dec 31-dec SEK M 2018 2017 ASSETS Non-current assets Goodwill 401,1 372,0 Other intangible assets 51,8 11,4 Property, plant and equipment 189,9 130,3 Financial assets 4,2 4,1 Deferred tax assets 1,7 0,9 Total non-current assets 648,6 518,9 Current assets Inventory 26,4
Slide 16: Consolidated cash flow statement
Consolidated cash flow statement Q4 Jan-Dec SEK M 2018 2017 2018 2017 Operating activities Operating profit (EBIT) 27,0 26,3 105,6 92,3 Adjustment for non-cash items 7,6 6,9 21,0 19,7 Interest received 0,0 0,0 0,1 0,0 Interest paid -1,7 -1,8 -6,2 -7,2 Income tax paid -4,6 -3,9 -9,6 -6,2 Cash flow fr
Slide 17: Key ratios
Key ratios Q4 Jan-Dec Jan-Dec SEK M 2018 2017 % 2018 2017 Net sales, SEK M 304,2 283,7 7% 1 058,1 989,0 Order intake, SEK M 305,0 296,4 3% 1 003,1 1 113,5 Order backlog, SEK M 1 203,5 1 238,4 -3% 1 203,5 1 238,4 Gross profit, SEK M 66,5 73,8 -10% 253,8 247,8 EBITDA, SEK M 32,4 30,9 5% 125,9 109,4 Ad
Slide 18: Segments financials
Segments financials Q4 Jan-Dec Net sales, SEK M 2018 2017 2018 2017 Renovation 269,6 245,9 947,7 847,5 New Build 34,6 37,8 110,4 141,4 Group other 4,1 3,2 16,1 8,6 Elimination -4,1 -3,2 -16,1 -8,6 Total sales 304,2 283,7 1 058,1 989,0 Q4 Jan-Dec Operating profit, SEK M 2018 2017 2018 2017 Renovation