Balco Group Ab · OMXSTO:BALCO

Balco Group Ab — Q3 2021 Earnings Presentation

18 slides from Balco Group Ab's earnings presentation, Nov 18, 2021

  1. Slide 1: Q3 report 1 July – 30 September 2021

    Q3 report 1 July – 30 September 2021 18 November 2021 Kenneth Lundahl CEO Michael Grindborn, CFO 1

  2. Slide 2: Q3 – More than doubled order intake in the quarter

    Q3 – More than doubled order intake in the quarter More than doubled order intake in the quarter 1 - The order intake increased by 116 percent to 306 MSEK (142) and was 54 percent higher than in the third quarter 2019 - The order intake was 26 percent higher than the revenue in the quarter Strong fi

  3. Slide 3: Q3 financial highlights

    Q3 financial highlights More than doubled order intake in the quarter • Net sales amounted to 243 MSEK (258) Net sales • Renovation accounted for 88% of sales and New Build for 12% • Order intake was 26% higher than net sales and increased 116% to 306 MSEK (142) and was 54 percent higher than in the

  4. Slide 4: Q3 – development per business segment

    Q3 – development per business segment Renovation segment – strong order intake Order intake Order backlog MSEK MSEK 15% 138% 1 253 295 1 089 124 2020 2021 2020 2021 Revenue Operating profit MSEK MSEK -12% -19% 243 29 213 24 2020 2021 2020 2021 4

  5. Slide 5: Q3 – development per business segment

    Q3 – development per business segment New Build – increased sales from Maritime and Stora Fasad Order intake Order backlog MSEK MSEK 1% -36% 205 207 18 12 2020 2021 2020 2021 Revenue Operating profit MSEK MSEK 3 2 90% 30 213% 1 2 16 1 0 2020 2021 2020 2021 5

  6. Slide 6: 9M financial highlights

    9M financial highlights Order intake 53 percent growth and 35 percent higher than revenue • Net sales amounted to 797 (931) Net sales • Renovation accounted for 85% of sales and New Build for 15% • Order intake increased by 53% to 1.075 MSEK (703) Order intake • The Renovation segment accounted for

  7. Slide 7: 9M - revenue and earnings per business segment

    9M - revenue and earnings per business segment Renovation – net sales and profit effected by Covid-19 New Build – net sales growth with improved operating margin Revenue Revenue MSEK MSEK 44% -20% 118 850 82 679 2020 2021 2020 2021 Operating profit Operating profit MSEK MSEK -33% 34% 109 10 72 6 202

  8. Slide 8: Strong financial position

    Strong financial position Equity ratio and balance sheet strong, prepared for more acquisitions Equity/asset ratio • Equity/asset ratio at 51.4% (49.4) • Net debt/EBITDA at 1.2x (0.4) Net debt/EBITDA • Net debt (excl. leasing)/EBITDA at 0.9x (0.1) • Profit after tax 60 MSEK (83) for the nine-month p

  9. Slide 9: Financial targets

    Financial targets BALCO FIGURES Q3 2021, LTM REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” -16% adj. EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 9.7% NET DEBT/ adj. EBITDA CAPITAL “Interest-bearing net debt shall not e

  10. Slide 10: Sustainability initiatives

    Sustainability initiatives • Materials and construction last for at least 90 years and are fully Lifetime 90 years recyclable thereafter only need two minor services • Balco city balconies last for over 70 years • Average 7 centigrade higher temperature inside a glazed balcony Energy savings and • E

  11. Slide 11: Green transformation of Estates

    Green transformation of Estates Goal 1 - Our goal is that in the long run at least 50% of our glazing projects will provide at least 30% energy savings and thus be able to be financed with green loans/bonds Renovation of balconies a trigger 2 - Renovation of balconies with the Balco-method to new gl

  12. Slide 12: " OTA iy __ i Be

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  13. Slide 13: Financial appendix

    Financial appendix 13

  14. Slide 14: Consolidated income statement

    Consolidated income statement 14

  15. Slide 15: Consolidated balance sheet

    Consolidated balance sheet 15

  16. Slide 16: Consolidated cash flow statement

    Consolidated cash flow statement 16

  17. Slide 17: Key ratios

    Key ratios Jul-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2021 2020) 2021-2020 202021 +2020 Net sales 2429 2585 7968.8 = -931,4 1065,4 1 200.0 Order intake 3063 1419 10745 —-703,01304,2 © 932,7 Order backiog 14604 12940 14604 1294,0 14604 1086,6 Gross proft 66,2 655 2113 2403 2604 © -289,4 EBITDA 34,6 382 108

  18. Slide 18: Segments financials

    Segments financials Jul-Sep Jan-Sep Oct-Sep Jan-Dec Net sales, MSEK 2021 2020 = 2021 = 2020 2020/21 ~——-2020 Renovation 2126 242,5 678.6 © 849,6.~— 924.8: 1:095,7 New Buid 303 16,0 1182 818 1407 —104,3 Group other 67 7,0 18,4 16,1 23,6 21,3 Elim ination 67 7,0 18,4 16,1 23,6 21,3 Total Net Sales 242

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