Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Bygghemma Group First — Q2 2019 Earnings Presentation
29 slides from Bhg Group Ab's earnings presentation, 2019
Slide 1: Record sales, EBIT and cash generation
2019/Q2 RECORD SALES, EBIT AND CASH GENERATION Bygghemma Group First AB (publ) 1
Slide 2: Today's presenters
2019/Q2 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/Q2 Agenda • Results highlights • Business update • Financial update Q2 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/Q2 Agenda • Results highlights • Business update • Financial update Q2 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 4
Slide 5: Record sales, EBIT and cash generation
2019/Q2 Record sales, EBIT and cash generation Sales growth continues to outperform the Record-high adjusted EBIT in absolute Record-high operating cash flow – Nordic overall market terms and adjusted EBIT margin 201% cash conversion Net sales (SEKm) Adjusted EBIT (SEKm) Adjusted EBIT margin Q2 2019
Slide 6: Agenda
2019/Q2 Agenda • Results highlights • Business update • Financial update Q2 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 6
Slide 7: Bygghemma Group at a glance
2019/Q2 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% 4.6% 4.4% 4.7% 5 460 5 169 4 974 4 649 CAGR 3 956 +46% 2 604 Net sales Apr-Jun 2019 Other 1 895 Norway 6% 7% 1 096 Denmark Home 11% furnishing DIY 39% 6
Slide 8: Acquisition strengthens category leadership within lighting
2019/Q2 Acquisition strengthens category leadership within lighting • Acquisition of Lampgallerian i Växjö AB on 10 May • Lampgallerian, a leading pureplay online retailer in Sweden for indoor and outdoor lighting had net sales and an operating margin in excess of SEK 40 million and 6 percent, respe
Slide 9: Agenda
2019/Q2 Agenda • Results highlights • Business update • Financial update Q2 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 9
Slide 10: Sales mainly driven by visits and growth in AOV
2019/Q2 Sales mainly driven by visits and growth in AOV Pick-up in organic growth and strong developments in Continued strong development in KPIs recently acquired businesses Net sales (SEKm) +20.5% # of visits Q2 2019 +46% 43 583 Organic (000’s) Q2 2018 29 827 growth 8.6% # of orders Q2 2019 +8% 50
Slide 11: Higher AOV translates to improved unit economics
2019/Q2 Higher AOV translates to improved unit economics Gross margin of different average orders values ILLUSTRATIVE with same freight cost (assumed at SEK 400) • Markedly improved unit economics Average when the average order value Order Value (AOV), (SEK) Gross Margin 2 (%) increases +1.9 p.p. 4
Slide 12: Improved gross margin and record high EBIT
2019/Q2 Improved gross margin and record high EBIT Gross margin improved due to growth in AOV and ancillary Record-high adjusted EBIT and highest adjusted EBIT margin revenues, as well as pricing and cost improvements to date Gross margin (%) Adjusted EBIT (SEKm) Adjusted EBIT margin +2.7 p.p. +39.9
Slide 13: DIY segment: Strong growth – continued Nordic market share gains
2019/Q2 DIY segment Strong growth – continued Nordic market share gains • Net sales increased by 16.2% - DIY represented 61% of the Highest quarterly EBIT level to date continued market share gains in Group’s net sales in the second quarter all Nordic markets during the Net sales (SEKm) Gross margin
Slide 14: Home Furnishing segment: Solid growth and record-high EBIT
2019/Q2 Home Furnishing segment Solid growth and record-high EBIT • Net sales increased by 27.8%, Home furnishing represented 39% of the Highest quarterly EBIT level to date buoyed by accelerating organic Group’s net sales in the second quarter growth and strong performance Net sales (SEKm) Gross ma
Slide 15: Record-high operating cash flow
2019/Q2 Cash flow and financial position Record-high operating cash flow Record-high operating cash flow Liquidity driven by strong operating cash flow – 201% cash conversion (including impact from IFRS 16) Q2 2019 (SEKm) Cash conversion SEKm 201% M&A capex of SEK 101.1m in the (24.7) period 137,5 2
Slide 16: Financial position remains solid
2019/Q2 Cash flow and financial position Financial position remains solid Overview of financial position SEKm 30 Jun 2019 • Net debt / EBITDA of 1.2x, outperforming financial target of 1.5 – 2.5x Interest bearing liabilities 1,389.0 Cash and cash equivalents (281.7) • The Group’s unutilised credit f
Slide 17: Agenda
2019/Q2 Agenda • Results highlights • Business update • Financial update Q2 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 17
Slide 18: Q2 Summary
2019/Q2 Q2 Summary • Leading European pureplay online retailer within the home improvement space Strengthened market • Strengthened dominant Nordic position – estimated online market share approaching 30% position within both the DIY- and Home Furnishing retail segments Record-high adjusted • Record
Slide 19: Agenda
2019/Q2 Agenda • Results highlights • Business update • Financial update Q2 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 19
Slide 20: Appendix
7 Appendix Bygghemma First Holding AB 20
Slide 21: Important clarifying information (IFRS 16)
2019/Q2 IFRS 16 Important clarifying information • Bygghemma Group First AB applies IFRS 16 from 1 January, 2019 • The new accounting standard has had the following impact: − Increased the total assets by around SEK 360 million − Expected to have a positive EBITA and EBITDA effect of around SEK 7 mi
Slide 22: Note on adjusted EBIT
2019/Q2 Note on adjusted EBIT • As of the Q2 2019-report, Bygghemma Group Components in adjusted EBIT and adjusted EBITDA introduces the measure adjusted EBIT to further clarify SEKm the Group’s underlying profit generation and profitability. Adjusted EBIT replaces the term that was 7,2 3,9 111,5 pr
Slide 23: Condensed consolidated financial information
2019/Q2 Condensed consolidated financial information Q2 Jan-Jun Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% 2018 Net sales 1,708.8 1,708.8 1,417.8 20.5 2,928.9 2,928.9 2,442.9 19.9 4,973.7 Gross profit 397.6 397.6 291.5 36.4 698.1 698.1 504.6 38.3 1,047.5 Gross margi
Slide 24: DIY segment
2019/Q2 DIY segment Q2 Jan-Jun Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% 2018 Net sales 1,046.2 1,046.2 900.5 16.2 1,734.8 1,734.8 1,507.7 15.1 3,073.8 Gross profit 214.9 214.9 172.6 24.5 363.8 363.8 296.2 22.8 612.1 Gross margin (%) 20.5 20.5 19.2 1.4 p.p. 21.0 21
Slide 25: Home Furnishing segment
2019/Q2 Home Furnishing segment Q2 Jan-Jun Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% 2018 Net sales 669.8 669.8 524.0 27.8 1,203.9 1,203.9 945.6 27.3 1,918.8 Gross profit 183.4 183.4 120.3 52.4 335.1 335.1 210.6 59.1 437.2 Gross margin (%) 27.4 27.4 23.0 4.4 p.p. 2
Slide 26: P&L
2019/Q2 P&L Q2 Jan-Jun Jan-Dec SEKm 2019 2018 2019 2018 2018 Net sales 1,708.8 1,417.8 2,928.9 2,442.9 4,973.7 Other operating income -0.0 - 0.0 - 0.0 Total net sales 1,708.7 1,417.8 2,928.9 2,442.9 4,973.7 Cost of goods sold -1,311.1 -1,126.4 -2,230.8 -1,938.3 -3,926.2 Personnel costs -123.7 -102.4
Slide 27: Balance sheet
2019/Q2 Balance sheet 30 Jun 31 dec SEKm 2019 2018 2018 Non-current assets Goodwill 2,713.5 2,462.8 2,590.7 Other intangible fixed assets 1,268.3 1,169.1 1,225.3 Total intangible fixed assets 3,981.8 3,631.9 3,815.9 Buildings and land 11.4 11.3 11.3 Leased fixed assets 348.7 - - Tangible fixed asset
Slide 28: Consolidated statement of cash flows
2019/Q2 Consolidated statement of cash flows Q2 Jan-Jun Jan-Dec SEKm 2019 2018 2019 2018 2018 Cash flow from operating activities before changes in 114.5 50.6 181.9 8.6 97.8 working capital Changes in working capital 137.5 112.2 113.3 136.1 22.7 Cash flow from operations 252.0 162.8 295.2 144.7 120.
Slide 29: Reconciliation of non-IFRS metrics
2019/Q2 Reconciliation of non-IFRS metrics Q2 Jan-Jun Jan-Dec SEKm 2019 2019* 2018 2019 2019* 2018 2018 Operating income 92.0 90.1 55.0 130.2 126.5 25.8 87.2 Acquisition-related costs 0.3 0.3 0.3 1.7 1.7 0.9 2.0 Integration costs and costs related to warehouse move - - 7.1 - - 15.0 27.5 Last mile pr
Bygghemma Group First — Q2 2019 Earnings Presentation on 6ix