Bergman & Beving Ab Class B · OMXSTO:BERG_B

Bergman & Beving Ab Class B — Q3 2023/2024 Earnings Presentation

17 slides from Bergman & Beving Ab Class B's earnings presentation, Feb 9, 2024

  1. Slide 1: Interim Report 1 April – 31 December 2023

    Interim Report 1 April – 31 December 2023 9 February 2024 Magnus Söderlind – CEO Peter Schön - CFO 1

  2. Slide 2: Highlights Third Quarter 2023/2024

    HIGHLIGHTS Third Quarter 2023/2024 ❖ Positive earnings trend continues, despite deteriorating market conditions ❖ Strong development in two out of three divisions ❖ Acquired two companies – Ateco 13 Nov Orbital Fabrications 18 Dec ❖ Revenue amounted to MSEK 1,187 (1,239) ❖ The gross margin continued

  3. Slide 3: Acquisitions 1 April – 31 December 2023

    ACQUISITIONS Tema Norge 1 April – 31 December 2023 Elkington Annual Revenue EBITA P/WC Division MSEK % % Q1 Itaab Tema Norge TC 45 >15 >45 Elkington BM 40 >15 >45 Sandbergs Itaab BM 75 >15 >45 Q2 Sandbergs TC 60 >15 >45 Ateco Ateco WS 50 >15 >45 Q3 Orbital Fabrications TC 180 >15 >45 Orbital Total 4

  4. Slide 4: Continued positive EBITA trend

    CONTINUED POSITIVE EBITA TREND EBITA per quarter MSEK % 120 12 104 105 107 110 EBITA EBITA % 103 100 94 10 91 81 84 88 84 ❖ EBITA increased by 7 percent to 80 73 78 8 MSEK 110 (103) 66 68 64 60 6 ❖ EBITA margin improved to 9.3 percent (8.3) ❖ Improved Gross Margin 4 percentage units 40 4 20 2 0 0 Q1

  5. Slide 5: Revenue development reflects a focus on high margin businesses

    REVENUE DEVELOPMENT REFLECTS A FOCUS ON HIGH MARGIN BUSINESSES COMBINED WITH A WEAKER UNDERLYING MARKET Revenue per quarter Quarterly Revenue Growth, % MSEK 1,300 Revenue R12M 1,200 1,100 1,000 900 800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Organic Currency Acquisitions Actual 20/21 21/22 22/2

  6. Slide 6: Improved gross margin

    IMPROVED GROSS MARGIN Gross margin per quarter Revenue per type of products Rolling 12 months % Own Proprietary Products Other Products 50 GM R12 48 34% 32% 30% 29% 46 44 42 40 38 66% 68% 70% 71% 36 34 32 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 31 Mar 31 Mar 31 Mar 31 Dec 20/21 21/22 22/23 2

  7. Slide 7: Earnings per share

    EARNINGS PER SHARE SEK EPS Q EPS R12 8.00 7.00 6.00 5.00 4.00 3.00 1.90 1.90 2.00 2.05 2.05 1.90 1.95 2.00 1.80 1.80 1.70 1.80 1.50 1.45 1.60 1.60 1.00 0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20/21 21/22 22/23 23/24 7

  8. Slide 8: Inventory

    INVENTORY MSEK ITO 1,600 3.0 Inventory R12 ITO 1,500 1,400 ❖ Inventory amounted to MSEK 1,268 (1,438) 1,300 2.0 ❖ Decreased safety stock 1,200 ❖ Decreased High volume - Low margin business 1,100 ❖ Improved product mix and streamlining 1,000 1.0 assortment in all companies 900 ❖ Lower sales impacted

  9. Slide 9: Cash flow from operating activities

    CASH FLOW FROM OPERATING ACTIVITIES MSEK 250 Cashflow R12M 207 200 ❖ Cash flow from operating activities 179 176 amounted to MSEK 207 (59) 142 145 150 133 133 ❖ Improved profitability 110 ❖ Improved inventory levels 100 94 79 ❖ A/P recovered when some companies 57 50 59 started moderate purchase of

  10. Slide 10: Net debt

    NET DEBT MSEK ND/EBITDA Operational Net Debt ND / EBITDA exkl IFRS 16 4.0 1,200 3.5 1,000 3.0 ❖ Operational net debt amounted to MSEK 1,108 (1,083) 800 2.5 ❖ Strong underlying cash flow 2.0 ❖ Acquisitions of MSEK 133 in Q3 and 600 MSEK 312 in the Period 1.5 ❖ Strong Acquisition pipeline 400 ❖ Acquis

  11. Slide 11: Building Materials

    Building Materials Profit increase of 55% despite construction industry exposure ❖ Demand from customers in commercial buildings and infrastructure remained good, residential still weak ❖ Revenue increased 8 percent to MSEK 322 (298) ❖ EBITA increased with 55 percent to MSEK 17 (11) ❖ EBITA margin i

  12. Slide 12: Workplace Safety

    Workplace Safety Unsatisfactory results - further actions if profitability does not recover ❖ No pick-up in demand, especially for the companies that deliver to retailers ❖ Revenue amounted to MSEK 433 (442) ❖ EBITA amounted to MSEK 40 (49) ❖ EBITA margin amounted to 9.2 percent (11.1) ❖ Additional

  13. Slide 13: Tools & Consumables

    Tools & Consumables All-time-high result and double-digit margins ❖ Demand industry-related customers weakened during the quarter ❖ Revenue amounted to MSEK 441 (509) ❖ EBITA increased by 27 percent to MSEK 57 (45) ❖ EBITA margin improved to 12.9 percent (8.8) ❖ The profit and margin improvement is

  14. Slide 14: Group targets

    GROUP TARGETS 500 MSEK EBIT latest FY2526 COMBINED ANNUAL ”500/10/45” 50-80 EARNINGS MSEK ACQUISITIONS PA EBIT- >10% margin latest FY2526 PERCENTAGE OWN 75% PRODUCTS 45% latest FY2526 P/ WC latest FY2627 DIVIDEND SHARE 30-50% NET PROFIT

  15. Slide 15: How to reach '500/10/45'

    HOW TO REACH ‘500/10/45’ WHAT WE ALWAYS DO ❖ Prioritizing profit expansion over revenue expansion ❖ Group level - B&B Focus Model for capital allocation ❖ Company-by-company strategy, goals and activities that ensure that companies “keep eyes on the path without losing sight of the summit” ❖ Group s

  16. Slide 16: Contact Calendar

    Contact Calendar Investor Relations 15 May 2024 Peter Schön Financial Report +46 70 339 89 99 1 April 2023-31 March 2024 will be published ir@bb.se 16

  17. Slide 17: Bergman Beving

    BERGMAN BEVING

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