Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Investor Presentation (March 2022)
27 slides from Byggmax Group Ab's investor presentation, Mar 28, 2022
Slide 1: Investor update
Investor update Byggmax Group March 28, 2022 1
Slide 2: Agenda
AGENDA Strategic update Our climate agenda Goals & way forward Q&A 2
Slide 3: Everybody has the right to a fantastic home
EVERYBODY HAS THE RIGHT TO A FANTASTIC HOME 7.6bn 11.7% SEK SALES 2021, +12% VS LY EBITA MARGIN 2021, +1.3%-P VS LY No 1 22% PRICE PERCEPTION IN NORDIC DIY (1) E-COM SHARE 2021, +2%-P VS LY 3
Slide 4: Main takeaways
MAIN TAKEAWAYS MARCH 2021 Capital Markets Day MARCH 2022 Investor update Old mishaps fixed Market share gains continue Byggmax modernized discount Acquisitions have generated more offer takes market share opportunities for organic growth New financial targets Transform Byggmax Group to – Sales SEK 1
Slide 5: Success story with new momentum
SUCCESS STORY WITH NEW MOMENTUM 8 Sales, SEK bn 7.6bn SEK Sales 7 2021 6 5 4 11.7% EBITA 3 2021 2 1 0 814m 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 cash flow from op’s 2021 IPO Branding, Store 3.0
Slide 6: Outperforming the market
OUTPERFORMING THE MARKET Percent 32 ─ Market boosted during 20 covid-19 pandemic ─ Market stabilized at new 12 higher level during H2 2021 ─ Byggmax Group continues to take market share 0 B2CVirke DIY mkt Local Fx Byggmax B2CVirke DIY mkt Byggmax Local Fx Nordics Group local Nordics Group local curr
Slide 7: Growth initiatives continue to deliver
GROWTH INITIATIVES CONTINUE TO DELIVER Store upgrades e-com New stores Add-on M&A +6% per “Store 3.0” 10 new stores 2020 (+4%- (+1%-p. impact 2020) p. impact 2020) Store upgrades e-commerce New stores stores +6% per “Store 3.0” 2x e-com sales vs ’19 10 new stores 2021 +4.5%-p. sales 2021 ─ Upgraded
Slide 8: Modern discount feels like premium
MODERN DISCOUNT FEELS LIKE PREMIUM New store 2017 New store 2019 Updated assortment * Higher quality perception * Still lowest price! 8
Slide 9: Everybody likes the upgrade
EVERYBODY LIKES THE UPGRADE Adding “value for money” Brand metrics, 2021 vs 2019 Service & knowledge +5pp Renowned brands +4pp Wide selection +5pp Good quality +3pp Priceworthy +7pp 9
Slide 10: Demonstrated scale effects
DEMONSTRATED SCALE EFFECTS RTM figures, SEK bn 9,0 7,6 8,0 7,4 7,6 6,8 7,0 7,0 6,5 6,1 Sales growth driven 6,0 5,3 5,4 by both market and Sales 5,1 5,2 5,2 5,3 market share gains GM 34.1% 5,0 GM 30.8% GM% structurally at OpEx 26.4% 4,0 new level OpEx 22.4% 3,0 Strong track record of cost control 2,0
Slide 11: Organic growth potential in ongoing initiatives: SEK 5bn
ORGANIC GROWTH POTENTIAL IN ONGOING INITIATIVES: SEK 5BN Store upgrades Store expansion e-commerce SEK ca 5bn potential in proven 320 Byggmax initiatives 100% > 150 000 Momentum on store upgrades, new stores 68% 192 and e-com growth 169 Broader footprint incl. 2021 acquisitions + 50 000 enables furt
Slide 12: Agenda
AGENDA Strategic update Our climate agenda Goals & way forward Q&A 12
Slide 13: Opportunity to lead
OPPORTUNITY TO LEAD of DIY-ers would appreciate being able of global retail revenues have targets to make more sustainable choices aligned with the Paris agreement 13 Source: UNFCCC Race to Zero, Byggmax Group customer research
Slide 14: Two initiatives to do our part, and more
TWO INITIATIVES TO DO OUR PART, AND MORE Minimize emissions Byggmax Green Ventures Radically reduce emissions Develop, manufacture and sell from own operations: own circular products -90% in 5 years – Fit with Byggmax offer (by 2027 vs 2020) – Positive climate benefit Net zero value chain 2040 – Gen
Slide 15: Ambitious targets for minimizing emissions
AMBITIOUS TARGETS FOR MINIMIZING EMISSIONS Own emissions Reduce GHG emissions from own Our approach Scope 1 & 2 operations, vs. base year 2020, by New! -90% in 5 years (until 2027) – “First things first” hierarchy – Impact own value Transportation Reduce GHG per transported ton, chain (no offsets) P
Slide 16: Progress underway
PROGRESS UNDERWAY Own emissions Electrification & renewable energy Scope 1 & 2 – 100% electric forklifts 2025 (2021: 48%) New! – 90% renewable energy 2027 (2021: 72%) Transportation Logistics optimization & vehicle efficiency Part of Scope 3 – Higher fill rates & optimized routes – Higher boat share
Slide 17: Launch Byggmax Green Ventures
LAUNCH BYGGMAX GREEN VENTURES Byggmax Green Ventures Invest in fully or partly owned entities Develop, manufacture and sell own circular products First investment made – Fit with Byggmax offer Three more investments under review – Positive climate benefit & more entrepreneurs welcomed – Generate sal
Slide 18: Green Venture #1: More Wood
GREEN VENTURE #1: MORE WOOD Swedish start-up, two experienced founders Aim to produce timber beams out of cross- laminated timber scrap, today burned for heat Byggmax funds and anchors as main customer and part owner – Initial investment SEK 7m – Option for majority stake Potential to avoid GHG of 2
Slide 19: Green Ventures potential to exceed value chain emissions
GREEN VENTURES POTENTIAL TO EXCEED VALUE CHAIN EMISSIONS GHG emissions, tons ~420 000 Own emissions, Scope 1 & 2, vey small share of total (<3%) 225 000 ~230 000 – Own emissions/sales as many major retailers Potential impact of – Production of DIY goods current Green very GHG intense: steel, Venture
Slide 20: Our climate agenda
OUR CLIMATE AGENDA Byggmax part of the climate solution First things first – radically reduce emissions from own operations, minimize in full value chain Launch Byggmax Green Ventures to produce climate friendly products – Part also of product solution – Impact sales & profits positively We are conv
Slide 21: Agenda
AGENDA Strategic update Our climate agenda Goals & way forward Q&A 21
Slide 22: Everybody has the right to a fantastic home
EVERYBODY HAS THE RIGHT TO A FANTASTIC HOME Modern Positive Sustainable discounter taking share + climate impact = profitable growth No 1 discounter in SEK 120bn Future proofing our business: Profitable growth through Nordic DIY market minimize emissions & do more proven initiatives, add-on climate
Slide 23: Trending above financial targets
TRENDING ABOVE FINANCIAL TARGETS Targets FY 2021 Comment Sales SEK 10bn 2025 SEK 7.6bn SEK 6.8bn FY 2020 RTM EBITA 7-8% 11.7% 10.4% FY 2020 margin RTM Net debt / <2.5x 0.8x 0.6x Q4 2020 EBITDA RTM EBITDA, ex. IFRS16 Dividend 50% 35% SEK 2.75/share 2020 Share of net income SEK 4.00/share 2021 CO2e Sc
Slide 24: Full steam ahead 2022
FULL STEAM AHEAD 2022 Positive market outlook – DIY market larger post vs. pre pandemic (not as during) – Accelerating shift to discount as prices increase Record high growth activity – Upgrade store portfolio to “Store 3.0” at record pace – Improve our e-com offer, building on momentum – Aim for 15
Slide 25: Agenda
AGENDA Strategic update Our climate agenda Goals & way forward Q&A 25
Slide 26: Q&A
Q&A Q&A 26
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