Byggpartner Gruppen Ab · OMXSTO:BYGGP
Byggpartner Gruppen Ab — ByggPartner — Q1 2019 Earnings Presentation
32 slides from Byggpartner Gruppen Ab's earnings presentation, May 2019
Slide 1: Company Presentation – Q1 Interim Report 2019
Q1 INTERIM REPORT 2019 | MAY 2019 COMPANY PRESENTATION 1|
Slide 2: Today's presenters and agenda
Today’s presenters and agenda In brief FREDRIK LEO, CEO HELENA BLOM, CFO & ”COMMON SENSE FROM DALARNA” Joined in 2017 as EVP EVP Services & Construction, Scaffolding background from NCC Constructions. Joined in 2018, backgrund from ABB ByggPartner is a Swedish CEO from August and SSAB. construction
Slide 3: Business Update
Fredrik Leo, CEO BUSINESS UPDATE 3|
Slide 4: Jan-Mar 2019 in summary
Jan-Mar 2019 in summary • Order intake 325 MSEK (605) - 44% (RTM +25%) • Orderbook 1 877 MSEK (1 838) +2% • Sales Growth 491,5 MSEK (367,3) +34% • Increased operating profit EBIT 17,0 MSEK (12,0) +42% • Increased EBIT-margin 3,5% (3,3) • Cash-flow -13,7 MSEK (7,3) 4| | BUSINESS UPDATE
Slide 5: No changes in our view of our market
No changes in our view of our market ▪ So far, the construction industry is stable in most of our segments and markets we focus on ▪ The public sector, mainly municipalities, county councils and public housing rental companies continue to order ▪ We see resources being moved into construction of soc
Slide 6: Core construction - no property development (order book 1,877 MSEK)
Core construction - no property development 1.877 MSEK ▪ Order book analysis ▪ High activity in social properties ▪ Focus on partnering projects Projects Customers Partnering project Social Properties 51% Arboga Kommun Housing 39% (BRF 5%) Rodret Bostads AB Sala Kommun 57% Commercial incl. service a
Slide 7: Core Construction – Projects 50-300 MSEK
Core Construction – Projects 50-300 MSEK Ongoing projects in Q1 | examples Arboga Kommun – Pre school Arboga Kommun – Care homes Rodret Bostads AB – Student housing Sala Kommun – Sport facility Hefab – Housing Sala Kommun – School Svenska Bostäder – Housing Fastighets AB L E Lundberg – Social proper
Slide 8: Turning the order book into profitable growth
Turning the order book into profitable growth ▪ Picking the right projects Q1 ▪ Improving our core processes Q2 2019 ▪ Developing our organization ▪ Strengthen project steering – educational program ”Partner”: training in contract law and forecasting projects ▪ Continued focus on profitability throu
Slide 9: Performance Q1 2019 vs Mid-Term Financial Targets
Performance Q1 2019 vs Mid-Term Financial Targets MID-TERM TARGETS PERFORMANCE STRATEGIES FOR INCREASED AND SUSTAINABLE PROFITABILITY SALES GROWTH SALES GROWTH 10-15% 34% Organic growth in focus markets MID-TERM TARGET Q1 2019 EBIT MARGIN EBIT MARGIN 5% 3,5% Strengthen partnering position MID-TERM T
Slide 10: Our financial track record – Revenues & EBIT-margin
Our financial track record – Revenues & EBIT-margin ▪ Strong order intake ▪ Record high order book is driving revenues ▪ Stabilization of EBIT-margin MSEK 2 000 9% 10% 1 780 1 800 7% 1 655 8% 7% 1 600 6% 5% 6% 5% 1 317 1 400 1,294 1,126 1 247 1,168 1,045 3% 3% 3% 4% 1 200 871 5% 4% 4% 1 000 949 695
Slide 11: Stable order intake and backlog development
Stable order intake and backlog development Growing order intake and backlog… MSEK 2 300 2 1392 098 SEK 1,877 m 2 100 Order intake, LTM¹ 1 8012 205 1 818 1 900 Order book¹ 1,3841 615 2 098 1 6162 010 1 700 1,468 1 5001 4541 4521 838 1 877 1 500 1,150 1,3831,3341 384 1 7041 621 order book 1,2253 1 61
Slide 12: Scaffholdings
Scaffholdings ▪ Stable revenues in Q1 ▪ Customer loss of 0,5 MSEK in Q1 ▪ Focus on continued growth and profitability ▪ Digitalization for increased efficiency in material management ▪ Working environment is a top priority 12 | | BUSINESS UPDATE
Slide 13: Construction services
Construction services ▪ Strong quarter, increased revenues and all time high operating profit, EBIT ▪ Focus on increased profitability ▪ Avesta and Hedemora merged as Södra Dalarna 13 | | BUSINESS UPDATE
Slide 14: Financial Update
Helena Blom, CFO & EVP FINANCIAL UPDATE 14 |
Slide 15: Order intake & Order Book, Revenues
Order intake & Order Book Q1 | MSEK YEAR ON YEAR | MSEK 700 2000 2500 2500 605 2098 1800 600 1600 2000 1818 2000 500 441 1400 1597 1453 423 400 1200 1500 1500 325 1000 300 800 1000 1000 200 600 400 500 500 100 200 0 0 0 0 2016 2017 2018 2019 2016 2017 2018 2019 LTM Order intake MSEK Order book MSEK
Slide 16: Profitability & Operating result, Cash-flow
Profitability & Operating result Q1 | MSEK YEAR ON YEAR | MSEK 18 17 6 60 4,5 16,4 16 50,5 50,8 4 5 50 45,8 14 40,8 3,5 12 12 4 40 3 10 8,7 2,5 3 30 8 2 6 2 20 1,5 4 2 1 10 1 0,5 ▪ Cash-flow depends on 0 2016 2017 2018 2019 0 0 2016 2017 2018 2019 LTM 0 project portfolio, both EBIT MSEK Gross Margin
Slide 17: Revenues and EBIT per segment Jan–Mar 2019
Revenues per segment EBIT per segment Jan – Mar 2019 Jan – Mar 2019 2% 0% 9% 21% 79% 89% Construction Services Scaffolding Construction Services Scaffolding 2019 2019 2019 2019 SEK millions Jan-Mar Jan-Mar Change SEK millions Jan-Mar Jan-Mar Change Revenues Operating Profit Construction 439,1 316,5
Slide 18: Efficient Capital Management, Earnings per share
Efficient Capital Management Net working capital end of quarter, MSEK| Average -38 MSEK 40 19 20 20 0 DIVIDEND POLICY -20 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 The goal is to deliver a dividend -24 -22 -24 corresponding to 50 percent of net -40 -27 profit gi
Slide 19: 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 132 130 160 140 142 139 140 140 127 129 140 120 120 100 100 80 80 60 51 46 51 60 43 39 41 31 35 40 40 20 20 0 0 2016 2017 2018 2019 LTM 2016 2017 201
Slide 20: ByggPartner as an investment
ByggPartner as an investment CUSTOMER ORIENTED – EFFICIENT 1. OVERHEAD DEBT FREE – OPERATIONAL 2. EXCELLENCE 48% 52% (64%) Dalarna (36%) CORE CONSTRUCTION – ✓ Market leader 3. NO PROPERTY DEVELOPMENT 14% Uppsala (28%) 9% Stockholm STRONG CASH-FLOW – (10%) 25% 4. FINANCIAL MODEL (25%) PARTNERING STRA
Slide 21: Q&A
Q&A Fredrik Leo CEO Fredrik.leo@byggpartner.se Helena Blom CFO & EVP helena.blom@byggpartner.se +4676 677 66 10 +4670 658 50 90 21 |
Slide 22: Project for EcoDataCenter in Falun
Project for EcoDataCenter in Falun 22 |
Slide 23: Projects with Arboga Kommun
Projects with Arboga Kommun 23 |
Slide 24: Project Vallaskolan, Sala Kommun
Project Vallaskolan, Sala Kommun CO2 savings in project Vallaskolan correspond to appr. 40 tours in a mid-sized car around the globe. 24 |
Slide 25: Project for Fastighets AB L E Lundberg
Project for Fastighets AB L E Lundberg 25 |
Slide 26: In brief
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. 26 |
Slide 27: Appendix
Appendix 27 |
Slide 28: Q1 Interim Report 2019 | Key Ratios
Q1 Interim Report 2019 | Key Ratios ▪ It was a very strong quarter ▪ Our partnering strategy provides the right conditions for sustainable construction ▪ High growth and profitability in a stable market Q1 RTM* KEY RATIOS 2019 Q1 2018 2019 2018 Revenues, MSEK 491,5 367,3 34% 1 779,7 1 655,5 8% EBIT
Slide 29: Key Ratios
KEY RATIOS SEK millions 2014 2015 2016 2017 2018 2019-03 Revenues 1 020,7 1 125,6 1 246,7 1 316,8 1 655,5 491,5 Production and operating costs -956,9 -1 037,4 -1 167,3 -1 244,7 -1 575 -465,7 Gross profit 63,8 88,2 79,4 72,1 80,4 25,7 Selling and administrative expenses1) -25,0 -25,6 -28,8 -31,3 -34,
Slide 30: Ownership Structure
OWNERSHIP STRUCTURE Shareholders in ByggPartner i Dalarna Holding AB (publ) as of March 31, 2019 Surditet AB (Bo Olsson) 24,66% Länsförsäkringar Fondförvaltning AB 13,40% Nordea Livförsäkring Sverige AB 4,74% Försäkringsaktiebolaget Avanza Pension 4,31% LGT BANK LTD (GADD) 3,72% Hallersbo, Tore 2,63
Slide 31: 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 32: Our Board of Directors
OUR BOARD OF DIRECTORS Torsten Bo Olsson, Helena Skåntorp, Josephson, Director Director Chairman of the Board • Joined the Board of ByggPartner in 2011 • Other board assignments: Stiftelsen för Olle Engqvist • Founder of ByggPartner and a board • Joined the Board of ByggPartner in October Priset, Sa