Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q2 2020 Earnings Presentation
21 slides from Balco Group Ab's earnings presentation, Aug 27, 2020
Slide 1: Q2 report 1 April – 30 June 2020
Q2 report 1 April – 30 June 2020 27 August 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: Q2 – Best quarter in net sales, operating profit and operating margin so far
Q2 – Best quarter in net sales, operating profit and operating margin so far Growth in net sales, EBIT and EBIT-margin 1 - Net sales +8% - Operating profit +12% - Operating margin improved to 14,1%, best quarter so far Covid-19 2 - We have had a delay in order intake during March to May, due to rest
Slide 4: Q2 financial highlights
Q2 financial highlights Strong cash flow, best net sales, operating profit and operating margin so far • Net sales increased 8% to 352 MSEK (325) Net sales • Renovation accounted for 93% of sales and New Build for 7% • Order intake amounted to 278 MSEK (436) Order intake and order backlog The Renova
Slide 5: Q2 – Best net sales and operating profit so far
Q2 – Best net sales and operating profit so far Order intake Order backlog MSEK MSEK -10% -36% 436 1 641 1 469 278 2019 Q2 2020 Q2 2019 Q2 2020 Q2 Revenue Operating profit MSEK MSEK 8% 12% 49 352 44 325 2019 Q2 2020 Q2 2019 Q2 2020 Q2 5
Slide 6: Q2 – Development per business segment
Q2 – Development per business segment Renovation segment – strong net sales and improved profitability Order intake Order backlog MSEK MSEK -15% -31% 1 499 397 1 267 273 2019 Q2 2020 Q2 2019 Q2 2020 Q2 Revenue Operating profit MSEK MSEK 19% 14% 50 325 285 42 2019 Q2 2020 Q2 2019 Q2 2020 Q2 6
Slide 7: Q2 – Development per business segment
Q2 – Development per business segment New Build – improved profit margin Order intake Order backlog MSEK MSEK 43% -87% 202 39 142 5 2019 Q2 2020 Q2 2019 Q2 2020 Q2 Revenue Operating profit MSEK MSEK -25% -34% 4 40 3 26 2019 Q2 2020 Q2 2019 Q2 2020 Q2 7
Slide 8: 6M financial highlights
6M financial highlights Net sales growth, improved profitability and cash flow • Net sales increased 13% to 673 (595) Net sales • Renovation accounted for 90% of sales and New Build for 10% • Order intake amounted to 618 MSEK (798) Order intake • The Renovation segment accounted for 87% of the order
Slide 9: 6M – Net sales growth and improved profitability
6M – Net sales growth and improved profitability Order intake Revenue MSEK MSEK -23% 13% 798 673 618 595 2019 6M 2020 6M 2019 6M 2020 6M Operating profit EPS MSEK SEK 9% 17% 84 2,85 2,62 71 2019 6M 2020 6M 2019 6M 2020 6M 9
Slide 10: 6M - revenue and earnings per business segment
6M - revenue and earnings per business segment Renovation – sales and profit growth New Build – improved operating margin Revenue Revenue MSEK MSEK -23% 19% 85 607 66 510 2019 6M 2020 6M 2019 6M 2020 6M Operating profit Operating profit MSEK MSEK -19% 23% 82 7 6 67 2019 6M 2020 6M 2019 6M 2020 6M 10
Slide 11: Strong financial position
Strong financial position Equity ratio and balance sheet strong, prepared for acquisitions Equity/asset ratio • Equity/asset ratio at 48% (42) driven by increased profit and low investments • Net debt/EBITDA at 0.5x (1.5), the reduction in debt is due to a strong cash flow Net debt/EBITDA • Net debt
Slide 12: Financial targets
Financial targets BALCO FIGURES Q2 2020, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 14% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.8% NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not exceed
Slide 13: Sustainability initiatives
Sustainability initiatives • Materials and construction last for at least 90 years and are fully Lifetime 90 years recyclable thereafter, only two minor services needed • Balco city balconies last for over 70 years • Energy savings of 15-30% depending on product and conditions Energy savings • Reduc
Slide 14: Long-term positive structural effects from Covid-19 for Balco
Long-term positive structural effects from Covid-19 for Balco • The interest rates seems to remain low for many years which will Continued low interest rates keep investments in balcony renovations cheap • The missing order intake during March-May are not lost sales but delays. The demand of renovat
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 2020 2019 2020 2019 2019/20 2019 Net sales 351,7 325,0 672,9 594,9 1 298,7 1 220,6 Production and project costs -257,3 -237,6 -498,1 -442,8 -975,8 -920,6 Gross profit 94,4 87,4 174,8 152,0 322,8 300,0 Sales costs -26,9 -25,9 -57
Slide 18: Consolidated balance sheet
Consolidated balance sheet 30-jun 30-jun 31-dec MSEK 2020 2019 2019 ASSETS Non-current assets Goodw ill 401,2 401,3 401,2 Other intangible assets 51,1 52,6 52,9 Concessions 45,7 57,2 54,1 Property, plant and equipment 133,8 141,3 134,1 Financial assets 4,3 4,4 3,1 Deferred tax assets 3,2 2,0 1,8 Tot
Slide 19: Consolidated cash flow statement
Consolidated cash flow statement 19
Slide 20: Key ratios
Key ratios AprJun Jan-Jun Jul-Jun Jan-Dec MSEK 2020-2019 = 2020-2019 2019/20 -2019 Net sales 3517 325,0 672.9 5949 12987 12206 Order intake 27,7 46,2, 618,3 798.0 11694 1349.1 Order backlog 14688 1640.9 14688 15287 14688 15224 Gross profit 94,4 87,4 1748 1520 3228 3000 EBITDA 58,9 52,7 1025 883 1911
Slide 21: Segments financials
Segments financials Apr-Jun Jan-Jun Jul-Jun Jan-Dec Net sales, MSEK 2020 2019 2020 2019 2019/20 2019 Renovation 325,5 284,9 607,1 509,6 1 141,9 1 044,4 New Build 26,3 40,1 65,8 85,2 156,8 176,2 Group other 3,6 4,1 9,2 8,0 17,2 16,1 Elimination -3,6 -4,1 -9,2 -8,0 -17,2 -16,1 Total Net Sales 351,7 32