Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Q2 2019 Earnings Presentation
26 slides from Byggmax Group Ab's earnings presentation, Jul 15, 2019
Slide 1: Interim Report Q2 2019
INTERIM REPORT Q2 2019 Mattias Ankarberg, CEO, and Pernilla Walfridsson, CFO July 15th, 2019 1
Slide 2: Highlights Q2
HIGHLIGHTS Q2 ─ Increased sales and stable profit in Q2 o Net sales increased 3.9 percent o Strong gross margin and cost control o EBITA excl. non-recurring items SEK 133m (135m)* o YTD EBITA excl. non-rec. items SEK 55m (39m) ─ More cautious market ─ Positive development driven by strategic priorit
Slide 3: Summary Q2 2019
SUMMARY Q2 2019 ─ Net sales in Q2 increased by 3.9 percent YoY Mkr incl IFRS 16 Q2 2019 Q2 2018 Diff.% R12 o Driven by the Byggmax segment, which grew 5.6 percent Net Sales 1 799.0 1 731.2 3.9 5 225.7 o LFL sales decreased 1.8 percent Gross Margin (%) 30.7 30.2 0.5 31.2 ─ Gross margin increase in Q2
Slide 4: Market Development
MARKET DEVELOPMENT Nordic consumer market estimated to have decreased 2- 2- 4 percent in Q2 ‒ Following two quarters of growth, the Nordic consumer market for building materials decreased in Q2 2019 ‒ More cautious consumers o Swedish households intent to renovate decreased in Q1 2019, following hig
Slide 5: Sales Development Q2
SALES DEVELOPMENT Q2 Byggmax Skånska Byggvaror Other Total Share of Byggmax Group sales Q2 2019 87.4% 11.2% 1.4% 100% Sales development Q2 2019 vs. Q2 2018 +5.6% 0.4% -39.1% +3.9% LFL Non- Non- LFL Currency LFL Non- Non- LFL Currency - 1.8% +7.1% +0.3% - 1.8% 5.4% +0.3% − LFL somewhat − Order intake
Slide 6: Byggmax Focus 2019: Profitable Growth
BYGGMAX FOCUS 2019: PROFITABLE GROWTH Store expansion ─ 12 new stores ─ Of which ca 5 format for smaller towns Upgrade our offer Focused ─ 8 new Garden departments growth ─ Upgrade 15 existing stores to Store 3.0 E- commerce growth ─ Expand assortment ─ More delivery options Simple and efficient ope
Slide 7: Store Openings
STORE OPENINGS 12 new stores planned for 2019 ─ Of which 10 in Sweden, 2 in Norway ─ Of which 5 small format and two with Garden departments 8 of the 12 planned stores for the year opened in Q2, of which 5 small format: o Sweden o Gislaved o Ljungby o Lycksele o Simrishamn o Skara o Strängnäs o Älmh
Slide 8: Upgrading Our Stores
UPGRADING OUR STORES FIXA NY BILD Garden department the Byggmax way – lowest prices Store 3.0 to be more complete also for smaller projects and easy to shop with drive through solution ─ Selected new assortments in electrical installation, ventilation, grouting, and a small garden department Six gar
Slide 9: Recognized for Our Customer Offer
RECOGNIZED FOR OUR CUSTOMER OFFER Price leadership Product quality Several surveys Byggmax own paint 2019 showed products awarded Byggmax as the “best in test” in a Nordic region’s recent independent price leader Swedish test (“Gör det själv”) 9
Slide 10: Skånska Byggvaror: Continued Improved Profitability
SKÅNSKA BYGGVAROR: CONTINUED IMPROVED PROFITABILITY Executed transformation has significantly improved the business Profitability continues to improve in Q2, EBITA excl. non-rec. items SEK 20.5 (7.7) Profitability increased for the fourth consecutive quarter For 2019, focus is on building for profit
Slide 11: Financial Overview
FINANCIAL OVERVIEW 11
Slide 12: Introduction of IFRS 16
INTRODUCTION OF IFRS 16 The IFRS 16 accounting standard was implemented January 1, 2019. This resulted in the majority of the company’s finance leases (primarily store leases) no longer being classified in the Profit and Loss as lease rents, but will instead be recognized as asset depreciation and i
Slide 13: Impact of IFRS 16
IMPACT OF IFRS 16 Main impact of IFRS 16 on Byggmax Group’s financials: ─ Balance sheet increased with SEK 1.43 bn in Q2. Impact of IFRS 16 ─ Several items in P&L impacted, but total net effect on EBITA is small and Profit & Loss (SEK M) 2019 Q2 estimated to ca +0.3%-points on full-year EBITA margin
Slide 14: Result Development Q2
RESULT DEVELOPMENT Q2 Mkr incl IFRS 16 Q2 2019 Q2 2018 Diff.% R12 ─ Net sales in Q2 increased by 3.9 percent YoY. Net Sales 1 799.0 1 731.2 3.9 5 225.7 ─ Gross margin in Q2 increased 0.5 percentage points to Growth comparable stores (%) -1.8 -5.9 4.1 N/A 30.7 percent (30.2). Gross Margin (%) 30.7 30
Slide 15: Result Development YTD
RESULT DEVELOPMENT YTD Mkr incl IFRS 16 YTD 2019 YTD 2018 Diff. % ─ Net sales YTD increased by 4.9 percent YoY. Net Sales 2 514.4 2 396.4 4.9 ─ Gross margin for the first six months increased 0.8 Growth comparable stores (%) -0.8 -9.6 8.8 percentage points to 31.5 percent (30.7). Gross Margin (%) 31
Slide 16: Sales Development
SALES DEVELOPMENT Net sales increase of 3.9 percent for ‒ Sales in Q2 increased by 3.9 percent YoY the Group was divided according to Q2 2019 % Q2 2018 % the following: ‒ Byggmax segment sales increased 5.6 percent Comparable stores, local currency -1.8 -5.9 o New stores perform well and non- compar
Slide 17: Gross Margin
GROSS MARGIN ‒ The gross margin was 30.7 percent (30.2) in the second quarter, an increase of 0.5 pp compared to the same period last year. ‒ Gross margin was positively impacted by price/mix effects ‒ Negative impact of currency effects (EUR) ‒ Gross margin improved for both Byggmax and Skånska Byg
Slide 18: Operating Expenses
OPERATING EXPENSES ‒ The effect of IFRS 16 skews the YoY comparison of opex; analysis hence made disregarding IFRS 16. Personnel cost and other external expenses, SEK M excl. IFRS 16 ‒ Excluding non-recurring items in 2018 personnel Actuals Q2 2018 358.5 costs and other external expenses rose a tota
Slide 19: Profitability per Segment
PROFITABILITY PER SEGMENT Mkr incl IFRS 16 Q2 2019 Q2 2018 Diff.% R12 Byggmax Q2 2019 ─ A stronger gross margin offset most of the effect of the EBITA, adjusted Byggmax 113.3 122.5 -7.5 234.3 decreased sales in comparable stores ─ New stores impacted EBITA negatively by circa SEK 3 M. Skånska Byggva
Slide 20: Net Financial Items
NET FINANCIAL ITEMS ‒ Negative development of SEK 5.7 M Mkr incl. IFRS 16 Q2 2019 Q2 2018 Diff.% R12 in net financial items YoY. Net financial items -14.7 -9.0 -64.2 -44.6 ‒ Net financial items for the quarter were negatively impacted by o Exchange-rate effects of SEK -1.2 M o Currency impact howeve
Slide 21: Cash Flow
CASH FLOW - Excluding the impact of IFRS 16, cash flow from operating activities increased by SEK 73.9 M in Q2 compared to the same period last year. - Excluding the impact of IFRS 16, cash flow from operating activities amounted to SEK 443 M for the rolling 12 month. - Impact can vary between quart
Slide 22: Net Debt
NET DEBT - Excluding effects of IFRS 16, net debt decreased SEK 287.6 M in Q2 compared to the same quarter last year - Strong cash generation in our business - Cash generation strengthened by improved working capital 22
Slide 23: Outlook and Summary
OUTLOOK AND SUMMARY
Slide 24: Outlook
OUTLOOK ‒ More cautious market in Q2 2019 Intent to renovate, Sweden and consumer market decreased, following two quarters of growth 0 -5 ‒ Several factors suggest more -10 positive market trend possible in -15 shorter and longer term -20 o Last year’s summer demand -25 softened by hot weather -30 o
Slide 25: Summary
SUMMARY Increased sales and stable profit More cautious market in Q2 Positive effects of initiatives in both Byggmax and Skånska Byggvaror 25
Slide 26: P © QF é]. e NI): | Ail | } bs al y i
P © QF é]. e NI): | Ail | } bs al y i Pl ¢ | © Sa é ne iy Pal ‘ Pi 1} Vi | ag) ’ ’ Mii