Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q4 2019 Earnings Presentation
20 slides from Balco Group Ab's earnings presentation, Feb 20, 2020
Slide 1: Q4 report 1 October – 31 December 2019
Q4 report 1 October – 31 December 2019 20 February 2020 Kenneth Lundahl CEO Michael Grindborn, CFO
Slide 2: Snapshot of Balco
Snapshot of Balco The leading provider of complete glazed balcony systems in the Nordics Geographic overview • +30 years in the market for balcony systems • Provider of the leading glazed balcony systems in the market: - one-stop shop, inhouse expertise, own development and production - own sales fo
Slide 3: Q4 – Strong cash flow, good order intake and increased dividend
Q4 – Strong cash flow, good order intake and increased dividend Growth in order intake, net sales and EBIT 1 - Order intake +15% - Net sales +10% - Operating profit +40% Delayed start-up of some major projects 2 - Organic growth was negative by 5 percent, but we had organic growth at the end of the
Slide 4: Q4 financial highlights
Q4 financial highlights Strong cash flow, good order intake and increased dividend • Net sales increased 10% to 333 MSEK (304) Net sales • Acquired growth was 15%, while organic growth was negative by 5% • Renovation accounted for 84% of sales and New Build for 16% • Order intake increased 15% to 35
Slide 5: Q4 – Growth of revenue, profit, order intake and order backlog
Q4 – Growth of revenue, profit, order intake and order backlog Order intake Order backlog MSEK MSEK 15% 26% 352 1 522 305 1 204 2018 Q4 2019 Q4 2018 Q4 2019 Q4 Revenue Operating profit MSEK MSEK 10% 40% 333 38 304 27 2018 Q4 2019 Q4 2018 Q4 2019 Q4 5
Slide 6: Q4 – development per business segment: Renovation
Q4 – development per business segment Renovation segment – strong order backlog and stable profitability Order intake Order backlog MSEK MSEK -8% 28% 1 339 283 260 1 050 2018 Q4 2019 Q4 2018 Q4 2019 Q4 Revenue Operating profit MSEK MSEK 4% -3% 270 280 37 36 2018 Q4 2019 Q4 2018 Q4 2019 Q4 6
Slide 7: Q4 – development per business segment: New Build
Q4 – development per business segment New Build – new strategy delivers, new maritime order Order intake Order backlog MSEK MSEK 19% 318% 183 92 154 22 2018 Q4 2019 Q4 2018 Q4 2019 Q4 Revenue Operating profit MSEK MSEK 3 51% 2018 Q4 2019 Q4 53 n/a -12 35 2018 Q4 2019 Q4 7
Slide 8: 2019 full year: financial highlights
2019 full year: financial highlights Strong growth in order intake, sales growth, improved profitability and cash flow • Net sales increased 15% to 1,221 MSEK (1,058) Net sales • Acquired growth was 22%, while organic growth was negative by 6% • Renovation accounted for 86% of sales and New Build fo
Slide 9: 2019 full year – Order intake exceeded revenue by 11%, improved profitability
2019 full year – Order intake exceeded revenue by 11%, improved profitability Order intake Revenue MSEK MSEK 34% 15% 1 349 1 221 1 003 1 058 2018 FY 2019 FY 2018 FY 2019 FY Operating profit MSEK 33% 140 106 2018 FY 2019 FY 9
Slide 10: 2019 full year - revenue and earnings per business segment
2019 full year - revenue and earnings per business segment Renovation – solid and profitable growth New Build – new strategy delivers Revenue Revenue MSEK MSEK 10% 60% 176 1 044 948 110 2018 FY 2019 FY 2018 FY 2019 FY Operating profit Operating profit MSEK MSEK 15% 12 135 n/a 117 2018 FY 2019 FY -11
Slide 11: Strong financial position
Strong financial position Equity ratio and balance sheet strong, prepared for more acquisitions and increased dividend Equity/asset ratio • Equity/asset ratio at 46.5% (41.4) driven by increased profit and low investments • Net debt/EBITDA at 0.9x (1.4), the reduction in debt is due to a very strong
Slide 12: Financial targets
Financial targets BALCO FIGURES FY 2019 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 15% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.5% NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not exceed 2.5
Slide 13: Sustainability initiatives
Sustainability initiatives • Materials and construction last for at least 90 years and are fully Lifetime 90 years recyclable thereafter • Only need two minor services during these 90 years Energy savings • Energy savings of 15-30% depending on product and conditions • Climate positive after 20 year
Slide 14: Q&A
Q&A 14
Slide 15: Financial appendix
Financial appendix 15
Slide 16: Consolidated income statement
Consolidated income statement Oct-Dec Jan-Dec MSEK Note 2019 2018 2019 2018 Net sales 333,3 304,2 1 220,6 1 058,1 Production and project costs -252,8 -237,7 -920,6 -804,3 Gross profit 80,6 66,5 300,0 253,8 Sales costs -26,0 -24,4 -94,2 -94,1 Administration costs -17,2 -15,0 -66,1 -53,9 Other operati
Slide 17: Consolidated balance sheet
Consolidated balance sheet 31-dec 31-dec MSEK 2019 2018 ASSETS Non-current assets Goodw ill 401,2 401,1 Other intangible assets 52,9 51,8 Concessions 52,4 - Property, plant and equipment 135,8 189,9 Financial assets 3,1 5,4 Deferred tax assets 1,8 1,7 Total non-current assets 647,1 649,8 Current ass
Slide 18: Consolidated cash flow statement
Consolidated cash flow statement Oct-Dec Jan-Dec MSEK 2019 2018 2019 2018 Operating activities Operating profit (EBIT) 37,7 27,0 140,4 105,6 Adjustment for non-cash items 9,8 7,6 36,9 21,0 Interest received 0,1 0,0 0,8 0,1 Interest paid -2,9 -1,7 -8,6 -6,2 Income tax paid -4,4 -4,6 -34,5 -9,6 Cash f
Slide 19: Key ratios
Key ratios Oct-Dec Jan-Dec MSEK 2019 2018 2019 2018 Net sales 333,3 304,2 1 220,6 1 058,1 Order intake 351,7 305,0 1 349,1 1 003,1 Order backlog 1 522,4 1 203,5 1 522,4 1 280,0 Gross profit 80,6 66,5 300,0 253,8 EBITDA 48,5 32,3 176,9 125,9 Adjusted EBITDA 48,5 46,9 176,9 140,4 Operating profit (EBI
Slide 20: Segments financials
Segments financials Oct-Dec Jan-Dec Net sales, MSEK 2019 2018 2019 2018 Renovation 280,0 269,6 1 044,4 947,7 New Build 53,3 34,6 176,2 110,4 Group other 4,2 4,1 16,1 16,1 Elimination -4,2 -4,1 -16,1 -16,1 Total Net Sales 333,3 304,2 1 220,6 1 058,1 Oct-Dec Jan-Dec Operating profit, MSEK 2019 2018 20