Byggpartner Gruppen Ab · OMXSTO:BYGGP
Byggpartner Gruppen Ab — ByggPartner — Q2 2018 Earnings Presentation
37 slides from Byggpartner Gruppen Ab's earnings presentation, September 2018
Slide 1: Company Presentation
SEPTEMBER 2018 COMPANY PRESENTATION 1|
Slide 2: Today's presenters and agenda
INTRODUCTION TODAY’S PRESENTERS AND AGENDA FREDRIK LEO, CEO Joined in 2017 as EVP Construction, 1. Introduction background from NCC Construction 2. Financials Q2 3. Business & Strategy Update 4. Q&A HELENA BLOM, CFO & EVP Services & Scaffolding Joined in 2018, background from ABB and SSAB 2|
Slide 3: 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. 3|
Slide 4: Strategy and targets
STRATEGY AND TARGETS SALES GROWTH 10-15% MID-TERM TARGET Organic growth in focus markets - Leverage market leading position in Dalarna, grow in Stockholm, Uppsala and Mälardalen - Convert our orderbook into profitable growth - (Opportunistic acquisitions) EBIT MARGIN Strengthen partnering position 5
Slide 5: Core construction company
INTRODUCTION CORE CONSTRUCTION COMPANY SNAPSHOT OF OUR ORDER BOOK | SOCIAL, COMMERCIAL & RENTAL PROPERTIES Skattsedeln, Stockholm Partneringprojekt Hefab Danvikshem, Stockholm Partneringprojekt Stiftelsen Danvikshem 5|
Slide 6: Core construction company
INTRODUCTION CORE CONSTRUCTION COMPANY SNAPSHOT OF OUR ORDER BOOK | SOCIAL, COMMERCIAL & RENTAL PROPERTIES Vallaskolan, Sala Partneringprojekt Kv. Nätet, Eskilstuna på uppdrag Lundbergs 6|
Slide 7: People business | Customers & employees
INTRODUCTION PEOPLE BUSINESS| CUSTOMERS & EMPLOYEES 7|
Slide 8: ByggPartner 2018 vs 2016
INTRODUCTION 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%) ü Market leader (36%) Construction se
Slide 9: Financial update
FINANCIAL UPDATE SALES GROWTH +29% (-7) Interim report Jan-Jun 2018 EBIT MARGIN 3,0% CASH-FLOW 40,6 (3,1) MSEK (53,4) 9|
Slide 10: Jan-Jun 2018 in summary
JAN-JUN 2018 IN SUMMARY • All time high orderbook 2 010 MSEK (1 703) • Strong order intake 1 198 MSEK (849) • Revenues increased by 29 % • Increased operating profit, EBIT margin was equal • Strong cash flow • Stable market prospects 10 |
Slide 11: Important events Q2 and Q3
IMPORTANT EVENTS Q2 • New partnering agreement with Falu kommun, Falun • Prolonged partnering agreement with Stockholmshem Stockholm • New partnering agreement with Sala kommun, Sala. • New partnering agreement HEFAB Fastighets AB, Stockholm • New board member: Elisabeth Norman. Elisabeth has a long
Slide 12: Stable order intake and backlog development
STABLE ORDER INTAKE AND BACKLOG DEVELOPMENT Growing order intake and backlog… SEKm 2 100 SEK 1 801 1, 900 2,010m Order intake, LTM¹ 1,384 1 615 1 616 2 010 1, 700 Order book¹ 1,468 1 500 1 454 1 452 1,383 1,334 1 384 1 838 1 500 1,150 1 704 order book 1,2253 1 616 1 621 1 601 1, 300 1,018 1,094 1,08
Slide 13: Order intake & order book, revenues
ORDER INTAKE & ORDER BOOK Q2 | MSEK ACC | MSEK LTM | YEAR ON YEAR MSEK 700 2500 1400 2500 2000 1801,5 2500 593,5 1198,4 1800 1597 600 523,2 1200 2000 2000 1600 1452,5 2000 946,4 500 1000 849,4 1400 408,2 400 1500 800 1500 1200 1500 1000 300 1000 600 1000 800 1000 200 400 600 500 500 400 500 100 200
Slide 14: Revenue & EBIT margin – track record
REVENUE & EBIT MARGIN – TRACK RECORD MSEK 1 600 9% 1 495 10% 1 400 7% 7% 1,294 1 317 8% 6% 1 247 5% 1,168 1,126 1 200 5% 6% 1,045 4% 1 000 871 5% 3% 3% 4% 949 695 800 4% 2% 3% 561 789 601 2% 600 474 0% 418 -3% 400 -2% -5% 200 -4% 0 -6% 2003/ 2004/ 2005/ 2006/ 2008 2009 2010 2011 2012 2013 2014 2015
Slide 15: Profitability & operating result, cash flow
PROFITABILITY & OPERATING RESULT Q2 | MSEK ACC | MSEK LTM | YEAR ON YEAR MSEK 12 3,5 30 4,5 60 4,5 26 50,5 11,4 4 4 11,5 3 25 23,4 50 45,1 3,5 40,8 3,5 11 2,5 19,1 20 3 40 3 10,5 10,1 2 2,5 2,5 15 30 10 1,5 2 2 9,6 10 1,5 20 1,5 9,5 1 1 1 9 0,5 5 10 0,5 0,5 8,5 0 0 0 0 0 2016 2017 2018 2016 2017 201
Slide 16: Efficient capital management
EFFICIENT CAPITAL MANAGEMENT NET WORKING CAPITAL END OF QUARTER, MSEK | Average -7 MSEK LOW 60 51 40 19 20 20 DIVIDEND POLICY 0 The goal is to deliver a dividend corresponding 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 to 50 percent of net profit given no need to -20 -22 finance
Slide 17: Low capital requirement increasing returns
LOW CAPITAL REQUIREMENT INCREASING RETURNS Strong return on capital… ROE ROE ROE ROE ROCE1 ROCE1 ROCE1 ROCE1 52% 34% 24% 30% 48% 36% 29% 36% SEKm SEKm 129 160 140 142 140 127 132 125 115 140 120 100 120 100 100 80 80 63 52 51 45 60 43 60 41 31 34 40 40 20 20 0 0 2015 2016 2017 2018 LTM 2015 2016 201
Slide 18: Revenues and EBIT per segment Jan-Jun 2018
Revenues per segment Jan – EBIT per segment Jun 2018 Jan – June 2018 3% 11% 12% 10% 78% 86% Construction Services Scaffolding Construction Services Scaffolding 2018 2017 2018 2017 SEK millions Jan-Jun Jan-Jun Change SEK millions Jan-Jun Jan-Jun Change Revenues Operating Profit Construction 685,5 529
Slide 19: Business & Strategy Update
BUSINESS & STRATEGY UPDATE 19 |
Slide 20: What do we see in the market?
INTRODUCTION WHAT DO WE SEE IN THE MARKET? • So far, the construction industry is stable in most of our segments and geographies we focus on • The public sector, mainly municipalities, county councils and public housing rental companies continue to order • We see resources being moved into construct
Slide 21: Partnering how it works
STRATEGY PARTNERING HOW IT WORKS 21 |
Slide 22: 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
Slide 23: Our strategy is focused on picking the right projects
STRATEGY OUR STRATEGY IS FOCUSED ON PICKING THE RIGHT PROJECTS & CONVERTING OUR ORDER BOOK INTO PROFITABLE GROWTH Increase efficiency in our Keep our organization, focus on develop our creating value employees and our core for our processes customers 23 |
Slide 24: Our core processes drives performance
STRATEGY | EFFICIENCY OUR CORE PROCESSES DRIVES PERFORMANCE SALES & PROJECT AFTER MARKET TENDER MANAGEMENT • Customer Satisfaction • Selective Projects • Optimized organization • Learnings & Partnering • Business Management • Risk & System • Standardized Project Opportunities Management • Risk Commi
Slide 25: Developing our organization
STRATEGY | EFFICIENCY DEVELOPING OUR ORGANIZATION • New Project Management organization • Example | Executive Management • System support – Standardized follow up • Team from 4 to 3 • Accountability Construction Services & Scaffholding • Risk management | Accountability • Example | Stockholm • New P
Slide 26: Focused on purchasing
STRATEGY | EFFICIENCY FOCUSED ON PURCHASING | 70-80% OF THE PROJECTS ARE OUTSOURCING ü70-80% OUTSOURCING Procurement is the key Electrician, ventilation, pipe, üProcurement Manager the control and regulation technology, structural work, painter etc. üRelationships, negotiations for optimized terms &
Slide 27: Picking the projects & creating trust for long term relationship
STRATEGY | VALUE PICKING THE PROJECTS & CREATING TRUST FOR LONG TERM RELATIONSHIP ARBOGA KOMMUN Strategic par tnering social proper ties 2017-2022 Fas 1 Fas 2 27 |
Slide 28: Construction Services
STRATEGY | VALUE CONSTRUCTION SERVICES NOW • Jan-Jun 2018 - Strong growth but profitability decreased STRATEGY • Focus on increased profitability ü Choose orders wisely ü Business awareness among employees ü Efficiency is the key • Grow revenues in market just started • New markets could be interest
Slide 29: Business update & strategy Scaffholding
STRATEGY | VALUE BUSINESS UPDATE & STRATEGY SCAFFHOLDING NOW • The last years the scaffholding business had stable turnover with good profitability STRATEGY • Growth with remained profitability • Secure resources for growth • More efficient material management 29 |
Slide 30: 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 31: Q&A
Q&A 31 |
Slide 32: ByggPartner as an investment
BYGGPARTNER AS AN INVESTMENT Exposure to a pure construction company focused on 1 attractive markets with strong drivers Highly adaptive organization with professionally structured 2 operations Historical sales growth and outlook outpacing market and 3 listed peers Superior return on equity from low
Slide 33: Appendix
APPENDIX 33 |
Slide 34: 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 35: Our board of directors
OUR BOARD OF DIRECTORS Torsten Bo Olsson, Helena Josephson, Director Skåntorp, Chairman of the Director Board • Joined the Board of ByggPartner in 2011 • Other board assignments: Stiftelsen för Olle • Founder of ByggPartner and a board • Joined the Board of ByggPartner in October member since 1992 2
Slide 36: Ownership structure
OWNERSHIP STRUCTURE Shareholders in ByggPartner i Dalarna Holding AB (publ) as of June 30, 2018 Surditet AB (Bo Olsson) 21,81% Länsförsäkringar Fondförvaltning AB 9,27% Priveq Investment Fund III KB 8,65% Nordea Livförsäkring Sverige AB 4,74% Priveq Investment Fund III AB 4,62% LGT BANK LTD (GADD) 4
Slide 37: Key ratios
KEY RATIOS SEK millions 2014 2015 2016 2017 2018-06 Revenues 1 020,7 1 125,6 1 246,7 1 316,8 788,7 Production and operating costs -956,9 -1 037,4 -1 167,3 -1 244,7 -748,4 Gross profit 63,8 88,2 79,4 72,1 40,3 Selling and administrative expenses1) -25,0 -25,6 -28,8 -31,3 -16,9 Operating profit (EBIT)