Byggpartner Gruppen Ab · OMXSTO:BYGGP
Byggpartner Gruppen Ab — ByggPartner — Q3 2018 Earnings Presentation
38 slides from Byggpartner Gruppen Ab's earnings presentation, November 2018
Slide 1: Company Presentation Q3 November 2018
Q3 | NOVEMBER 2018 COMPANY PRESENTATION 1|
Slide 2: Today's presenters and agenda
Today’s presenters and agenda FREDRIK LEO, CEO Joined in 2017 as EVP Construction, background from NCC Construction 1. Business Update Q3 2. Financial Update Q3 3. Q&A HELENA BLOM, CFO & EVP Services & Scaffolding Joined in 2018, background from ABB and SSAB 2|
Slide 3: Business Update
Q3 | November 2018 BUSINESS UPDATE 3|
Slide 4: Q3 Financials in summary
BUSINESS UPDATE Q3 Financials in summary Strong ORDER INTAKE, the ORDER The order book >billion 2 SEK is BOOK > billion 2 SEK driving REVENUES • Order intake Q3 | 547 MSEK (209) • Revenues Q3 | 352,4 MSEK (291,9) • Jan-Sep | 1 745 MSEK (1 058) +21% • LTM* | 2 139 MSEK (1 452) • Jan-Sep | 1 141 MSEK
Slide 5: Order book 2,205 MSEK
BUSINESS UPDATE Core construction company - no project development Order book analysis | High activity social properties Care homes 2.205 MSEK Projects Customers Partnering project Social Properties 60% Arboga Kommun Housing 23% (BRF 5%) Rodret Bostads AB Sala Kommun 57% Commercial incl. service and
Slide 6: Focus on turning the order book into profitable top-line growth
BUSINESS UPDATE Focus on turning the order book into profitable top-line growth > increasing the EBIT-margin 6|
Slide 7: Picking the right projects
BUSINESS UPDATE 1. Picking the right projects 2. Improving our core processes 3. Developing our organization 7|
Slide 8: Actions taken to increase efficiency in our organization
BUSINESS UPDATE Actions taken to increase efficiency in our organization • Increased awareness, frequency and accountability within the organization for projects and internal follow up • Increased focus on project management & business skills • New organization in Stockholm • New procurement manager
Slide 9: Picking the right customers and keep our focus on creating value
BUSINESS UPDATE Picking the right customers and keep our focus on creating value for our customers 9|
Slide 10: Finalized project Q3: Partnering project
BUSINESS UPDATE Picking the right projects & creating trust for long term relationship |Partnering project FINALIZED PROJECT Q3 Customer EcoDataCenter Falun 10 |
Slide 11: New orders in Q3: Arboga Kommun
BUSINESS UPDATE Picking the right projects & creating trust for long term relationship | New orders in Q3 ARBOGA KOMMUN Strategic partnering Social properties 2017-2022 Phase 1 > Phase 2 Q3 Order Preschools 78 MSEK Care homes 239 MSEK 11 |
Slide 12: New order in Q3: Rodret Bostads AB
BUSINESS UPDATE Picking the right projects & creating trust for long term relationship | New order in Q3 RODRET BOSTADS AB Partnering projects Student housing Phase 2 Q3 Student housing 105 MSEK 12 |
Slide 13: New order in Q3: Sala Kommun
BUSINESS UPDATE Picking the right projects & creating trust for long term relationship | New order in Q3 SALA KOMMUN Partnering projects Sport facility Phase 1> Phase 2 Q3 Social Property 51 MSEK 13 |
Slide 14: No changes in our view of the market
BUSINESS UPDATE No changes in our view of the market • So far, the construction industry is stable in most of our segments and markets we focus on • The public sector, mainly municipalities, county councils and public housing rental companies continue to order • We see resources being moved into con
Slide 15: Important events Q3 and Q4
FINANCIAL UPDATE Important events Q3 • Fredrik Leo is the new CEO from August 1 • New Partnering agreement with Sala kommun • Appointment Helena Blom EVP Services & Scaffholding • Björn Gruvsjö recruited and appointed Procurement and Calculation Manager • Partnering projects with Arboga Kommun moved
Slide 16: Strategy & financial targets
BUSINESS UPDATE Strategy & financial targets SALES GROWTH 10-15% Organic growth in focus markets MID-TERM TARGET - Leverage market leading position in Dalarna, grow in Stockholm, Uppsala and Mälardalen - Convert our orderbook into profitable growth - (Opportunistic acquisitions) EBIT MARGIN Strength
Slide 17: Scaffholdings
BUSINESS UPDATE Scaffholdings • Stable turnover with good profitability • Focus on continued growth • Increase efficiency in material management 17 |
Slide 18: Construction services
BUSINESS UPDATE Construction services • Challenging quarter • Focus is on increased profitability • Review geographical focus 18 |
Slide 19: Financial Update
Q3 | November 2018 FINANCIAL UPDATE 19 |
Slide 20: Jan-Sep 2018 in summary
FINANCIAL UPDATE Jan-Sep 2018 in summary • Strong order intake 1 745 MSEK (1058) • All time high orderbook 2 205 MSEK (1 621) • Sales Growth 1 141 MSEK (902,3) +26% (-1) • Increased operating profit EBIT 29,4 MSEK (27,8) • Decreased EBIT-margin 2,6% (3,1) • Robust cash-flow 71,2 MSEK (60,2) 20 |
Slide 21: Order intake & order book, revenues
FINANCIAL UPDATE Order intake & Order Book Q3 | MSEK ACC | MSEK LTM | YEAR ON YEAR MSEK 600 546,6 2500 2000 2500 2500 2500 1745 2139,3 1800 500 2000 1600 2000 2000 2000 1400 1597 400 1200,8 1452,5 1500 1200 1058,1 1500 1500 1500 300 254,3 1000 208,8 1000 800 1000 1000 1000 200 600 500 400 500 500 50
Slide 22: Profitability & operating result, cash-flow
FINANCIAL UPDATE Profitability & Operating result Q3 | MSEK ACC | MSEK LTM | YEAR ON YEAR MSEK 10 3,5 33 32,5 4 60 4,5 8,7 50,5 9 32 3,5 4 3 50 8 42,4 3,5 31 3 40,8 7 6,3 2,5 6 40 3 6 30 29,4 2,5 2 2,5 5 29 2 30 1,5 27,8 2 4 28 1,5 20 1,5 3 1 27 1 1 2 0,5 10 1 26 0,5 0,5 0 0 25 0 0 0 2016 2017 2018
Slide 23: Efficient Capital Management
FINANCIAL UPDATE Efficient Capital Management Net working capital end of quarter, MSEK| Average -15 MSEK LOW 60 51 40 19 20 20 DIVIDEND POLICY 0 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 The goal is to deliver a dividend corresponding -20 to 50 percent of net profit giv
Slide 24: Low capital requirement increasing returns
FINANCIAL UPDATE Low capital requirement increasing returns Strong return on capital… ROE ROE ROE ROE ROCE1 ROCE1 ROCE1 ROCE1 52% 34% 24% 27% 48% 36% 29% 33% SEKm SEKm 160 140 142 140 129 132 129 127 121 140 120 100 120 100 100 80 80 63 52 60 51 60 43 41 42 40 31 32 40 20 20 0 0 2015 2016 2017 2018
Slide 25: Revenues and EBIT per segment
FINANCIAL UPDATE Revenues per segment EBIT per segment Jan – Sep 2018 Jan – Sep 2018 3% 11% 17% 11% 72% 86% Construction Services Scaffolding Construction Services Scaffolding 2018 2017 2018 2017 SEK millions Jan-Sep Jan-Sep Change SEK millions Jan-Sep Jan-Sep Change Revenues Operating Profit Constr
Slide 26: Revenues & EBIT-margin – Our track record
FINANCIAL UPDATE Revenues & EBIT-margin – Our track record MSEK 1 800 9% 10% 1 555 1 600 7% 7% 8% 6% 1,294 1 247 1 317 1 400 5% 5% 6% 5% 1,168 4% 4% 1 200 3% 3% 1,126 3% 4% 1 000 949 1,045 695 2% 800 2% 871 561 789 601 0% 600 474 418 -3% 400 -2% -5% 200 -4% 0 -6% 2003/ 2004/ 2005/ 2006/ 2008 2009 20
Slide 27: Stable order intake and backlog development
FINANCIAL UPDATE Stable order intake and backlog development Growing order intake and backlog… SEKm 2 100 Order intake, LTM¹ 2 139 SEK 1 801 1, 900 1, 700 Order book¹ 1,468 1,383 1,334 1 384 1,3… 1 615 1 616 2 010 1 500 1 454 1 452 1 838 2,205m 1 500 1,150 1 704 order book 1,225 3 1 616 1 621 1 601
Slide 28: Byggpartner as an investment
Byggpartner as an investment Exposure to a pure construction company (no project development) 1 focused on attractive markets and segments Strong position within partnering, customer-focused organization and 2 risk management 3 Historical sales growth with profitability and clear financial targets 4
Slide 29: Q&A
Q&A 29 |
Slide 30: In brief
INTRODUCTION In brief ”COMMON SENSE FROM DALARNA” ByggPartner is a Swedish construction company with the competence to serve its customers throughout the entire construction process, creating value through personal commitment, sound expertise and common sense. 30 |
Slide 31: Appendix
Appendix 31 |
Slide 32: Key ratios
FINANCIAL UPDATE KEY RATIOS SEK millions 2014 2015 2016 2017 2018-09 Revenues 1 020,7 1 125,6 1 246,7 1 316,8 1141,2 Production and operating costs -956,9 -1 037,4 -1 167,3 -1 244,7 -1087,2 Gross profit 63,8 88,2 79,4 72,1 53,9 Selling and administrative expenses1) -25,0 -25,6 -28,8 -31,3 -24,5 Oper
Slide 33: Executive management team
EXECUTIVE MANAGEMENT TEAM Fredrik Leo, Helena Blom, CFO Ann-Louise CEO & EVP Services & Holmbom, HR Scaffholding Manager • Joined ByggPartner in 2017 as EVP Construction, • Joined ByggPartner in 2018 • Joined ByggPartner in 2010 appointed CEO in 2018 • ~15 years experience from ABB. • Previous exper
Slide 34: Ownership structure
FINANCIAL UPDATE OWNERSHIP STRUCTURE Shareholders in ByggPartner i Dalarna Holding AB (publ) as of Sep 30, 2018 Surditet AB (Bo Olsson) 21,81% Länsförsäkringar Fondförvaltning AB 9,81% Priveq Investment Fund III KB 8,65% Nordea Livförsäkring Sverige AB 4,74% Priveq Investment Fund III AB 4,62% Försä
Slide 35: Our board of directors
OUR BOARD OF DIRECTORS Torsten Bo Olsson, Helena Skåntorp, Josephson, Director Director Chairman of the Board • Joined the Board of ByggPartner in 2011 • Other board assignments: Stiftelsen för Olle Engqvist • Founder of ByggPartner and a board • Joined the Board of ByggPartner in October Priset, Sa
Slide 36: ByggPartner 2018 vs 2016
FINANCIAL UPDATE BYGGPARTNER 2018 VS 2016 Active across three attractive business areas… …and four attractive geographies % of Sales 2018 LTM 2016 Construction − Housing, trade/logistics, industrial 86% 85% facilities, offices, public buildings Dalarna 48% 52% (64%) ✓ Market leader (36%) Constructio
Slide 37: Sustainability is an important cornerstone for creating value
STRATEGY | VALUE Sustainability is an important cornerstone for creating value • The foundation for sustainable entrepreneurship is profitability. • We take environmental and social issues into account during the entire process of the construction process. • We are building for a sustainable society
Slide 38: Next step – our focus right now
STRATEGY | VALUE NEXT STEP – OUR FOCUS RIGHT NOW 1 Convert our order book into profitable growth | Develop our organization & Core processes 2 Picking the right projects | Continue the order intake 3 Step forward in the value chain | Take our partnering offering to the next level 4 Profitable growth