Slide 1: Q2 report 1 April–30 June 2019
Q2 report 1 April– 30 June 2019 27 August 2019 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 • 31 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 for
Slide 3: Q2 – Breakthrough regarding financing in our largest market
Q2 – Breakthrough regarding financing in our largest market Order intake, +46% in the quarter to 436 MSEK 1 - of which Renovations accounted for 91% - Order intake in Q2 was 34% higher than revenue - We expect a substantial order intake increase in the third quarter Revenue growth, +19% in the quart
Slide 4: Q2 financial highlights
Q2 financial highlights Operating margin of 13.6% - first quarter to exceed our profitability target • Net sales increased 19% to 325 MSEK (274) • Acquired growth was 22%, while organic growth was negative by 3% Net sales • Renovation accounted for 88% of sales and New Build for 12% • We expect the
Slide 5: Q2 – Growth of topline, earnings, order intake and order backlog
Q2 – Growth of topline, earnings, order intake and order backlog Order intake Order backlog MSEK MSEK 46% 25% 436 1 641 299 1 309 2018 Q2 2019 Q2 2018 Q2 2019 Q2 Revenue Operating profit MSEK MSEK 19% 40% 325 44 274 32 2018 Q2 2019 Q2 2018 Q2 2019 Q2 5
Slide 6: Q2 - revenue and earnings growth per business segment
Q2 - revenue and earnings growth per business segment Renovation segment – strong order intake and solid profitability Order intake Order backlog MSEK MSEK 32% 47% 1 499 398 1 135 270 2018 Q2 2019 Q2 2018 Q2 2019 Q2 Revenue Operating profit MSEK MSEK 19% 34% 285 42 240 32 2018 Q2 2019 Q2 2018 Q2 201
Slide 7: Q2 - revenue and earnings growth per business segment
Q2 - revenue and earnings growth per business segment New Build – new strategy delivers Order intake Order backlog MSEK MSEK -19% 30% 174 39 142 30 2018 Q2 2019 Q2 2018 Q2 2019 Q2 Revenue Operating profit MSEK MSEK 21% 40 875% 33 4 0 2018 Q2 2019 Q2 2018 Q2 2019 Q2 7
Slide 8: 6M financial highlights
6M financial highlights Strong growth in sales and order intake with improved profitability • Net sales increased 15% to 595 MSEK (516) Net sales • Renovation accounted for 85% of sales and New Build for 15% • Order intake increased 40% to 798 MSEK (571). Order intake The growth for the Renovation s
Slide 9: 6M – Order intake exceeded revenue by 34%, improved profitability
6M – Order intake exceeded revenue by 34%, improved profitability Order intake Revenue MSEK MSEK 15% 40% 798 595 516 571 2018 6M 2019 6M 2018 6M 2019 6M Operating profit MSEK 33% 71 54 2018 6M 2019 6M 9
Slide 10: 6M - revenue and earnings growth per business segment
6M - revenue and earnings growth per business segment Renovation – solid and profitable growth New Build – new strategy delivers Revenue Revenue MSEK MSEK 11% 49% 85 510 459 57 2018 6M 2019 6M 2018 6M 2019 6M Operating profit Operating profit MSEK MSEK 21% 67 590% 7 55 1 2018 6M 2019 6M 2018 6M 2019
Slide 11: Strong financial position
Strong financial position Equity ratio and balance sheet continuously strong, prepared for more acquisitions • Equity/asset ratio at 42.1% (45.1) driven by increased balance sheet (total assets) Equity/asset ratio from acquisition of TBO-Haglinds AB and implementation of IFRS 16 • Net debt/EBITDA at
Slide 12: Financial targets
Financial targets BALCO FIGURES Q2 2019, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 13.0% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 12.1%1) NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not ex
Slide 13: Sustainability initiatives
Sustainability initiatives • Materials and construction last for at least 90 years and are fully Lifetime 90 years recyclable thereafter. Verification of external parties is ongoing. • Will be compared with concrete renovation. • Climate positive after 20 years with Balco glazed balcony in Climate p
Slide 14: New conditions create new opportunities
New conditions create new opportunities • The product life span is over 90 years • Higher energy savings (10-30%) • The product is fully recyclable • Climate impact (CO2) positive during life • The comparison against concrete renovation is not the same time period • Collaboration with a Nordic bank
Slide 15: Q&A
Q&A 15
Slide 16: Financial appendix
Financial appendix 16
Slide 17: Consolidated income statement
Consolidated income statement Apr-Jun Jan-Jun Jul-Jun Jan-Dec MSEK Note 2019 2018 2019 2018 2018/19 2018 Net sales 325,0 273,6 594,9 516,1 1 136,8 1 058,1 Production and project costs -237,6 -202,6 -442,8 -385,0 -862,1 -804,3 Gross profit 87,4 71,0 152,0 131,2 274,7 253,8 Sales costs -25,9 -24,5 -48
Slide 18: Consolidated balance sheet
Consolidated balance sheet 30-jun 30-jun 31-dec MSEK 2019 2018 2018 ASSETS Non-current assets Goodw ill 401,3 372,4 401,1 Other intangible assets 52,6 12,5 51,8 Concessions 57,2 - - Property, plant and equipment 141,3 142,3 189,9 Financial assets 4,4 4,2 5,4 Deferred tax assets 2,0 1,9 1,7 Total non
Slide 19: Consolidated cash flow statement
Consolidated cash flow statement Apr-Jun Jan-Jun Jul-Jun Jan-Dec MSEK 2019 2018 2019 2018 2018/19 2018 Operating activities Operating profit (EBIT) 44,3 31,5 71,3 53,5 123,5 105,6 Adjustment for non-cash items 9,4 5,7 17,9 10,3 28,6 21,0 Interest received 0,6 0,0 0,7 0,0 0,8 0,1 Interest paid -2,0 -
Slide 20: Key ratios
Key ratios Apr-Jun Jan-Jun Jul-Jun Jan-Dec MSEK 2019 2018 2019 2018 2018/19 2018 Net sales 325,0 273,6 594,9 516,1 1 136,8 1 058,1 Order intake 436,2 299,4 798,0 570,7 1 230,4 1 003,1 Order backlog 1 640,9 1 308,8 1 640,9 1 280,0 1 640,9 1 203,5 Gross profit 87,4 71,0 152,0 131,2 274,7 253,8 EBITDA
Slide 21: Segments financials
Segments financials Apr-Jun Jan-Jun Jul-Jun Jan-Dec Net sales, MSEK 2019 2018 2019 2018 2018/19 2018 Renovation 284,9 240,3 509,6 459,2 998,1 947,7 New Build 40,1 33,2 85,2 57,0 138,6 110,4 Group other 4,1 4,0 8,0 8,0 16,1 16,1 Elimination -4,1 -4,0 -8,0 -8,0 -16,1 -16,1 Total sales 325,0 273,6 594,