Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Q3 2023 Earnings Presentation
14 slides from Byggmax Group Ab's earnings presentation, Oct 25, 2023
Slide 1: Q3 Report 2023
& Q3 REPORT 2023 25 October 2023 Karl Sandlund, CEO Helena Nathhorst, CFO
Slide 2: Q3 2023: Profitable Byggmax in weak market
Q3 2023: PROFITABLE BYGGMAX IN WEAK MARKET Q3 2023 @ High season with strong operational focus Net sales, SEK M 1,960 rd Continued weak consumer market Net sales growth, % -13.8% r Lower operating costs & inventory vs. last year EBITA SEKM 210 r Strong cash flow from operating activities EBITA-margi
Slide 3: Selected financial highlights — Q3 2023
SELECTED FINANCIAL HIGHLIGHTS — Q3 2023 CASH FLOW FROM SHARE OF E- OPERATING NET OF NEW STORES NET SALES R12 COMMERCE R12 ACTIVITIES R12 R12 SEK 6.3 SEK BN 19% 843M 8 -13% vs. 2022 -ipp vs. 2022 SEK +308 M vs. 2022 209 stores in total
Slide 4: Continued weak consumer market
CONTINUED WEAK CONSUMER MARKET Nordic consumer confidence — at historic Intent to renovate — Sweden low levels 105 30 2 Continued hesitant consumer, particularly related to larger purchases 100 re 0,5 il > alllittn.., |" tl q Market below pre- 10 -0,5 pandemic levels 95 -1 Customer behaviors -30 : -
Slide 5: Undisputed low price leader
UNDISPUTED LOW PRICE LEADER VILKEN BYGGHANDEL UPPLEVER DU HAR LAGST PRIS? Ox I anser att Byggmax har ° branschens basta priser ia , Moe Byegmax Bauhaus Hombach —«XLbyag——Kerauta—Byaghemma Beller Byggmax er billigst pa bjorkeved! neermeste Byggmax-butikk eller kjop pa nett. 3) Source: Byggmax brand t
Slide 6: Actions right now
ACTIONS RIGHT NOW Cost. Continuously securing industry’s lowest operating cost : Ass] Inventory. Adjusting inventory levels to lower sales volume e@3°e ad Gross margin. Optimizing assortment and sourcing
Slide 7: Continuously securing industry's lowest operating cost
CONTINUOUSLY SECURING INDUSTRY’S LOWEST OPERATING COST High inflation Market salary increases More stores Upgraded stores Development of operating cost Q3 2023 vs Q3 2022 Total Like-for-like -13% -19% Cost focus is part of Byggmax’s DNA New more efficient ways of working — planning, tools, procedure
Slide 8: Inventory reduced by more than SEK million (18%)
INVENTORY REDUCED BY MORE THAN SEK 300 MILLION (18%) Inventory level by end of quarter SEK millions 1881 1784 1771 1711 1678 Adjusting inventory levels to lower sales 1370 volume Improved logistics set- ups Optimization of assortment Q1'22 Q2 '22 Q3'22 Q4 '22 Q1'23 Q2 '23 Q3 '23
Slide 9: Strong gross margin in weak market
STRONG GROSS MARGIN IN WEAK MARKET Percent 34,8 34,4 344 33,1 32,2 Product mix and assortment 30,7 Sourcing Volume (price & logistics) Energy products last year GOOOO Q3 18 Q3 19 Q3 '20 Q3'21 Q3 '22 Q3'23
Slide 10: Sales development Q3 2023
SALES DEVELOPMENT Q3 2023 Sales development, Q3 2023 vs. 2022 Store portfolio and channel development -| 3 ; 8 %G NUMBER OF STORES July— January — September September 12months LFL New stores Currency ‘Oct2022 -15.5% 1.8% +0.2% 2023 2023 ~Sep2023 Beginning of the period 210 204 201 Sweden 19% Group e
Slide 11: P&L Q3 2023 - Strong operational focus
P&L Q3 2023 - STRONG OPERATIONAL FOCUS SEKM 2023 2022 Net sales 1,960 2,273 Other operating income 12 8 Total revenue 1,972 2,281 Cost of goods sold 1,292 1,491 Other external costs and operating expenses -110 -155 Personnel costs -204 -206 Depreciation and amortization of tangible assets -71 -156 T
Slide 12: Cash flow & net debt
CASH FLOW & NET DEBT Netdebt exci irrsie Cash flow from operating activities 1000 500 500 | | 6 | | | | 0 I Ld] ua 500 500 Q3 a4 Qi Q2 Q3 a4 Qi Q2 Q3 Q3 a4 Qi Q2 Q3 a4 Qi Q2 Q3 2021 2022 2023 2021 2022 2023 Cash flow from operating activities amounted to SEK 174 M for Q3 2023, an increase of SEK 47
Slide 13: Summary: Profitable Byggmax in weak market
SUMMARY: PROFITABLE BYGGMAX IN WEAK MARKET @& Weak * Continued weak market, especially related to larger projects e.s® market * Byggmax undisputed low price ~~ Actions * Strong delivery on key actions; secure lowest cost, adjusting inventory and optimization of assortment © Financials + Lower cost,
Slide 14: Q&A