Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Bygghemma Group — Q4 2019 Earnings Presentation
32 slides from Bhg Group Ab's earnings presentation, 2020
Slide 1: A strong finish to a record year
2019/Q4 A strong finish to a record year Bygghemma Group First AB (publ) 1
Slide 2: Today’s presenters
2019/Q4 Today’s presenters Martin Edblad Adam Schatz Acting President and CEO CFO • Bygghemma Group since 2012 • Bygghemma Group since 2019 • CFO of CDON Group (now Qliro Group, publ) (2010-12) • Axiell Group 2015-2019 (CFO, Head of Business Division) • CFO of MTG’s online business area (2004-10) •
Slide 3: Agenda
2019/Q4 Agenda • Results highlights • Business update • Financial update Q4 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 3
Slide 4: Agenda
2019/Q4 Agenda • Results highlights • Business update • Financial update Q4 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 4
Slide 5: Select financial highlights
2019/Q4 Select financial highlights A strong finish to a record year (SEK) Net sales Tot. growth Org. Growth Q4: 1.6bn Q4: 28.5% Q4: 19.9% FY: 6.2bn FY: 24.9% FY: 12.9% (SEK) Adj. EBIT Adj. EBIT% ND/EBITDA Q4: 90.0 mill. Q4: 5.5% 1.5x FY: 330.1 mill. FY: 5.3% Top-line growth has gone hand-in-hand wi
Slide 6: Select operating highlights
2019/Q4 Select operating highlights 2019 saw the Group reinforce its position as the leading Nordic e-commerce company Accelerating Further barriers Strong EBIT- organic growth to entry through margins and q-on-q: strengthened improving step- On path to 10bn market position by-step Our Ecosystem: On
Slide 7: Agenda
2019/Q4 Agenda • Results highlights • Business update • Financial update Q4 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 7
Slide 8: Bygghemma Group at a glance
2019/Q4 Bygghemma Group at a glance The clear Nordic online leader in home improvement Significant scale and profitability 0.4% 2.5% 3.9% 5.0% 4.1% 5.3% 6 212 CAGR 4 974 +41% 3 956 Net sales Jan-Dec 2019 2 604 Other Norway 8% 1 895 7% 1 096 Home Denmark DIY 12% furnishing 59% 41% Sweden 56% 2014 201
Slide 9: Bygghemma Group Geographies & Ecosystem
2019/Q4 Bygghemma Group Geographies & Ecosystem Geographies and market position Ecosystem Unrivalled product portfolio (external + own brands) Product Matching experts & services, incl. showroom installation infrastructure Bygghemma Group First AB (publ) 9
Slide 10: Launch of upgraded Corporate identity imminent
2019/Q4 Launch of upgraded Corporate identity imminent Bygghemma Group First AB (publ) 10
Slide 11: Agenda
2019/Q4 Agenda • Results highlights • Business update • Financial update Q4 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 11
Slide 12: Strong growth and profit generation
2019/Q4 Strong growth and profit generation Growth journey continues on the back of a strong A leveraged P&L yields a robust bottom line delivery – both performance in both segments segments growing EBIT significantly in the year Net sales (SEKm) Adjusted EBIT (SEKm) Adjusted EBIT margin +28.5% Orga
Slide 13: Sales mainly driven by visits and growth in AOV
2019/Q4 Sales mainly driven by visits and growth in AOV Topline growth fueled by all geographies, the Nordic as well Continued strong development in KPIs as the Eastern European ones Net sales (SEKm) +28.5% # of visits Q4 2019 +79% 57 926 (000’s) Organic growth Q4 2018 32 349 19.9% # of orders Q4 20
Slide 14: Balanced geography and brand mix to optimize growth
2019/Q4 Balanced geography and brand mix to optimize growth The expansion of the DIY private label portfolio is a vehicle Balanced geographic mix making sales less dependent on for growth across geographies conditions in any one country Bygghemma Group Net Sales by geography • The Group’s own brands
Slide 15: Continued trajectory of improved gross margin
2019/Q4 Continued trajectory of improved gross margin Gross margin favorably affected by uptick in AOV and Margin trajectory the result of the improvement plan in strong growth in Home Furnishing and DIY private label Home Furnishing launched in the 2nd half of 2018 coupled portfolio with the booste
Slide 16: Consolidating leading Nordic online DIY position
2019/Q4 DIY segment Consolidating leading Nordic online DIY position • Net sales increased by 25.5% of DIY represented 58% of the Solid growth in adjusted EBIT which organic growth accounted Group’s net sales in the fourth quarter for 13.8%, leading to further market Net sales (SEKm) Gross margin Ad
Slide 17: Strong and accelerating performance
2019/Q4 Home Furnishing segment Strong and accelerating performance • Net sales increased by 32.7%, on Home furnishing represented 42% of the Solid growth in adjusted EBIT the back of accelerating organic Group’s net sales in the fourth quarter growth and strong performance in Net sales (SEKm) Gross
Slide 18: Continued healthy full-year cash generation
2019/Q4 Cash flow and financial position Continued healthy full-year cash generation 64% cash conversion: Rapid increase in the DIY share of Full-year liquidity driven by strong operating cash flow private label, including inorganic, increasing NWC Jan-Dec 2019 (SEKm) Cash conversion SEKm Excl. impa
Slide 19: Financial position remains solid
2019/Q4 Cash flow and financial position Financial position remains solid Overview of financial position SEKm 31 Dec 2019 • Net debt / EBITDA of 1.5x, within financial target Interest bearing liabilities 1,826.7 of 1.5 – 2.5x Cash and cash equivalents (270.3) • The Group’s unutilised credit faciliti
Slide 20: Acquisitions: A core part of the Group’s strategy
2019/Q4 Acquisitions: A core part of the Group’s strategy BHG’s lead in the Nordics gives us a strong position to counter competitors’ efforts with further M&A – accelerating and firming up our category leadership and fueling our critical mass Strong M&A track record – 26 acquisitions in last 8 year
Slide 21: Agenda
2019/Q4 Agenda • Results highlights • Business update • Financial update Q4 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 21
Slide 22: Q4 Summary
2019/Q4 Q4 Summary • Net sales reached SEK 1,645 million: an increase of 28.5% Accelerating growth • 19.9% organic growth – highest level reported during the year • Gross margin reached an all-year high during the quarter (25.2%) driven by Strong gross margin structural increase in AOV, cost and pro
Slide 23: Agenda
2019/Q4 Agenda • Results highlights • Business update • Financial update Q4 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 23
Slide 24: Appendix
7 Appendix Bygghemma First Holding AB 24
Slide 25: Note on adjusted EBIT
2019/Q4 Note on adjusted EBIT • As of the Q2 2019-report, Bygghemma Group Components in Q4-2019 adjusted EBIT and adjusted EBITDA introduces the measure adjusted EBIT to further clarify SEKm the Group’s underlying profit generation and 42,2 (0,4) 131,9 profitability. Adjusted EBIT replaces the term
Slide 26: Condensed consolidated financial information
2019/Q4 Condensed consolidated financial information Q4 Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% Net sales 1,644.6 1,644.6 1,279.7 28.5 6,212.5 6,212.5 4,973.7 24.9 Gross profit 414.3 414.3 298.2 39.0 1,490.5 1,490.5 1,047.5 42.3 Gross margin (%) 25.2 25.2 23.3 1.
Slide 27: DIY segment
2019/Q4 DIY segment Q4 Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% Net sales 963.3 963.3 767.5 25.5 3,700.8 3,700.8 3,073.8 20.4 Gross profit 222.9 222.9 160.5 38.9 794.3 794.3 612.1 29.8 Gross margin (%) 23.1 23.1 20.9 2.2 p.p. 21.5 21.5 19.9 1.5 p.p. Adjusted EBITD
Slide 28: Home Furnishing segment
2019/Q4 Home Furnishing segment Q4 Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% Net sales 685.3 685.3 516.2 32.7 2,533.1 2,533.1 1,918.8 32.0 Gross profit 191.7 191.7 137.9 39.0 697.5 697.5 437.2 59.6 Gross margin (%) 28.0 28.0 26.7 1.3 p.p. 27.5 27.5 22.8 4.8 p.p. Ad
Slide 29: P&L
2019/Q4 P&L Q4 Jan-Dec SEKm 2019 2018 2019 2018 Net sales 1,644.6 1,279.7 6,212.5 4,973.7 Other operating income 2.4 0.5 0.3 0.0 Total net sales 1,647.0 1,280.2 6,212.7 4,973.7 Cost of goods sold -1,230.3 -981.6 -4,721.9 -3,926.2 Personnel costs -144.2 -114.9 -493.4 -420.4 Other external costs and o
Slide 30: Balance sheet
2019/Q4 Balance sheet 31 Dec SEKm 2019 2018 Non-current assets Goodwill 2,896.7 2,590.7 Other intangible fixed assets 1,293.6 1,225.3 Total intangible fixed assets 4,190.2 3,815.9 Buildings and land 10.7 11.3 Leased fixed assets 459.2 - Tangible fixed assets 39.8 22.9 Financial fixed assets 6.6 5.4
Slide 31: Consolidated statement of cash flows
2019/Q4 Consolidated statement of cash flows Q4 Jan-Dec SEKm 2019 2018 2019 2018 Cash flow from operating activities before changes in 120.4 59.1 410.2 97.8 working capital Changes in working capital -73.8 -38.3 -19.2 22.7 Cash flow from operating activites 46.6 20.7 391.1 120.5 Investments in opera
Slide 32: Reconciliation of non-IFRS metrics
2019/Q4 Reconciliation of non-IFRS metrics Q4 Jan-Dec SEKm 2019 2019* 2018 2019 2019* 2018 Operating income 79.6 77.1 44.1 282.0 273.6 87.2 Acquisition-related costs -0.0 -0.0 0.4 1.7 1.7 2.0 Integration costs and costs related to - - - - - 27.5 warehouse move Last-mile project - - 6.3 5.8 5.8 6.3 C