Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Q3 2021 Earnings Presentation
21 slides from Byggmax Group Ab's earnings presentation, Oct 19, 2021
Slide 1: Q3 Report 2021
Q3 Report 2021 October 19, 2021 Mattias Ankarberg, CEO Helena Nathhorst, CFO
Slide 2: Q3 2021: Continued Strong Momentum
Q3 2021: CONTINUED STRONG MOMENTUM — Q3net sales increased 9% (21%) to 2,400m (2,200m) o Continued growth momentum despite tough comps o Continued market share gains, now in declining market o Like-for-like sales increased 2% o E-com accounted for 18% of Group sales — Increased gross margin and soli
Slide 3: Key Events
KEY EVENTS - Covid-19 situation — still precautions to operate in a responsible way — Store portfolio further upgraded and 2 new stores opened in Q3 2021 — Completed acquisition of Norwegian tiles discounter Right Price Tiles, Aug 31 — Share buy-back program launched Sep 20, 2021 ° BYGGMAX
Slide 4: Clear and Leading Discount Position
CLEAR AND LEADING DISCOUNT POSITION Recognized for markets’ lowest prices VILKEN BYGGHANDEL UPPLEVER DU HAR LAGST PRIS? by several independent surveys also 2021 BYGOMAXBILLIGST PA Vv Test TERRASSEBORD 28X120 fakta <n Verified erenietrtneins ca Quality & Performance “HAR FINNS SVERIGES BILLIGASTE TRA
Slide 5: Market Share Gains Continued
MARKET SHARE GAINS CONTINUED Q3 2021 2020: Nordic B2C DIY market Percent ca +20% (local currency) VX Bygematerialhandiarna VIRKE Q3 2021: New market situation, decline vs 2020 (growth vs 2019) - “Stay home” effect decreased as pandemic restrictions removed - Continued positive effect from increased
Slide 6: Growth Initiatives Continued to Deliver
GROWTH INITIATIVES CONTINUED TO DELIVER Store upgrades +6% per “Store 3.0” - Store 3.0 at 54% (30%) of portfolio end Q3 - Addca 6% sales per store e-commerce +4% a3 2021 - Byggmax branded e-com sales +4% despite very tough comps (+40%) - Very strong growth in store assortment products continued - Ce
Slide 7: Continued E-com Growth Despite Tough Comparables
CONTINUED E-COM GROWTH DESPITE TOUGH COMPARABLES BYGGMAX Byggmax branded e-com sales +4% in Q3 2021 - Byggmax branded e-com sales +4% despite very tough comparables (+40%) mince ae - Very strong growth in store assortment products continued, both collect@store and home delivery VI BLANDER FARGE C —
Slide 8: Store Upgrades Generates ca 6% Sales per Store
STORE UPGRADES GENERATES CA 6% SALES PER STORE Mithicese Small town format Regular format (incl. Garden) Large format (& large Garden) Upgraded “3.0” version “Store 3.0” launched Q4 2018 Upgraded “3.0” version launched 2020 Upgrades ongoing launched 2020 Store 3.0 — more product categories and impro
Slide 9: Lots of Runway Left for More Upgrades
LOTS OF RUNWAY LEFT FOR MORE UPGRADES Store 3.0 now 54% of portfolio Byggmax store portfolio — 2new Byggmax stores opened in Q3 2021: Lindesberg, Tullinge (Sweden), 1 closed (Norway) - 8upgrades in Q3 2021 to Store 3.0, total 97 Store 5 181 tg, 101 tor 167 169 169 175180 3.0 (54% of Byggmax portfoli
Slide 10: Strong Start in Denmark
STRONG START IN DENMARK Denmark entered Jan 2021 through acquisition of Nezestved Lavpristrze (“NLT”) — Founder led DIY discount concept — Sales of ca DKK 125m 2020 - ca30% of sales from e-com, 4 stores Expectations of good fit with the Byggmax concept have been realized - Possible to serve through
Slide 11: Increased Profitability for Skanska Byggvaror
INCREASED PROFITABILITY FOR SKANSKA BYGGVAROR Following very strong sales growth during the first half year (+31%), sales decreased -15% in Q3 Despite this, profitability improved driven by an increasingly strong and profitable product portfolio, generating higher gross margins Order intake increase
Slide 12: Sales Development Q3
SALES DEVELOPMENT Q3 Share of Byggmax Group sales Q3 2021 Sales development Q3 2021 vs. 2020 Byggmax Skanska Byggvaror Total 92.2% 7.8% 100% 11.5% -14.8% 9.1% LFL Acquisition New stores LFL LFL Currency 4.3% 4.0% 3.4% -15.1% 2.3% 0.2% Continued growth momentum despite tough comparables and a declini
Slide 13: P&L Q3 2021
P&L Q3 2021 SEKM 2021 2020 Net sales 2400 2200 Other operating income 6 8 Total revenue 2406 2208 Cost of goods sold -1564 -1471 Other external costs and operating expenses 121 -112 Personnel costs -198 -182 Depreciation and amortization of tangible assets -118 -109 Total operating expenses -2001 -1
Slide 14: Cash Flow & Net Debt
CASH FLOW & NET DEBT Cash flow from operating activities (SEK M) Net debt exci irrsie 1500 1000 1000 500 500 1 I i i | ~ it) — 1 | Cash flow from operating activities amounted to SEK -230 M for the quarter, an increase of SEK 81 M compared to the same period last year. The change in cash flow from o
Slide 15: Share Buy-back Program Launched
SHARE BUY-BACK PROGRAM LAUNCHED — Board of Directors decided to exercise the authorization granted by the AGM and initiate repurchases of own shares — Max amount SEK 200 million, max 5% of outstanding shares (3,049,000) - Acquisition of shares may be carried out from Sep 20, 2021 to the 2022 AGM — I
Slide 16: Performance vs. Financial Targets
PERFORMANCE VS. FINANCIAL TARGETS Targets RTM Q3 2021 Comment Sales SEK 10bn 2025 SEK 7.6bn SEK 6.5bn rtma3 ‘20 RTM EBITA 7-8% 12.3% 9.7% RT™ Q3 20 margin RTM Net debt / <2.5x 0.3x 0.5x Q3 2020 EBITDA RTM EBITDA, ex. IFRS16 Dividend 50% 35% SEK 2.75 per share Share of net income +200m buy-backs Co2
Slide 17: Learnings from the Pandemic Years
LEARNINGS FROM THE PANDEMIC YEARS 1. DIY market boosted during covid pandemic, benefitting also us - Nordic consumer market for building materials ca +22% RTM @Q3 2021 vs 2019 2. Byggmax Group taken a lot of market share — sales +43% vs market +22% — Byggmax Group’s sales +43% RTM Q3 2021 vs 2019 -
Slide 18: Favorable Market Trends
FAVORABLE MARKET TRENDS Discount The home e-commerce ° TAN w ° NB = Accelerating New level Accelerating Further acceleration Home plays larger role Many new e-com of shift to discount with post covid-19 pandemic consumers during higher DIY consumer prices Many new DlYers in pandemic covid-19 pandemi
Slide 19: Moving Forward: Clear Focus and Positive Outlook
MOVING FORWARD: CLEAR FOCUS AND POSITIVE OUTLOOK 19 We remain focused on our proven organic growth initiatives, that all have much more to give — Byggmax towards “Modern discounter for today’s DIY-ers” — more categories, higher quality, best of stores & e-com — and still best price! — Focus remains
Slide 20: Q&A
Slide 21: Byggmax