Bhg Group Ab · OMXSTO:BHG

Bhg Group Ab — Q3 2023 Earnings Presentation

20 slides from Bhg Group Ab's earnings presentation, Oct 26, 2023

  1. Slide 1: Q3 Report 2023

    Q3 Report 2023 26 October 2023 Gustaf Öhrn, President and CEO Jesper Flemme, CFO 26 October 2023 1

  2. Slide 2: Today's presenters

    Today’s presenters Gustaf Öhrn President and CEO Jesper Flemme CFO 26 October 2023 2

  3. Slide 3: Agenda

    Agenda • Q3 2023 highlights • Financial update • Conclusions • Q&A 26 October 2023 3

  4. Slide 4: Select financial highlights – Q3 2023

    Select financial highlights – Q3 2023 Sales Earnings Cash flow Cash flow from operating Net Sales (SEK) Adj. EBIT(SEK) activities (SEK) 2,862m 13m 224m Total: -7.9% Pro-forma organic: -7.5% Organic: -7.5% 0.4% (Q3 2022: -133m) Growth Adj. EBIT margin • Sales decrease vs. last year has gradually impr

  5. Slide 5: We expect challenging market rest of 2023 and 2024

    We expect challenging market rest of 2023 and 2024 BHG organic growth, Y-on-Y development Exceptional growth Contracting market 42% 36% 37% 32% 20% 22% 15% 14% 8% 9% 6% 2% 1% -5% -4% -8% -8% -11% -17% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 19 19 19 20 20 20 20 21 21 21 21 22 22

  6. Slide 6: We are implementing our strategy and delivering on tactical targets

    We are implementing our strategy and delivering on tactical targets Significantly strengthened balance sheet and cash flow thereby reducing risk Strengthen Strengthen the Improve cash-flow balance sheet profitability • SEK 1.2bn in cash flow • More than SEK 1bn lower • SEK 59m improvement in from op

  7. Slide 7: We have reduced inventory by SEK 953m since Q3 2022

    We have reduced inventory by SEK 953m* since Q3 2022 Continued reduction last 5 quarters BHG inventory level SEK 953m reduction vs. (SEKm) Q3 2022 (excluding write-down and 3 177 divested units) 2 940 2 705 2 483 2 384 Including SEK 375m 1 974 write-down 1 482 Excluding SEK 270m in divested units Q1

  8. Slide 8: So far we have done much in terms of consolidation and simplification of our structure

    So far we have done much in terms of consolidation and simplification of our structure • We have consolidated units to achieve economies of scale and simplify our Consolidations structure • We have left businesses that do not fit into our strategy and burdens our Divestments profitability Reduced st

  9. Slide 9: Key strategic and operational priorities per BU

    Key strategic and operational priorities per BU Home Improvement Value Home Premium Living • Consolidate entities into • Consolidate entities into • Drive geographic expansion fewer and larger platforms to fewer and larger platforms to in Nordic Nest increase competitiveness increase competitiveness

  10. Slide 10: A BHG unit is winner of the Swedish SEO price for the fifth year in a row

    A BHG unit is winner of the Swedish SEO price for the fifth year in a row • For the fifth year in a row a BHG unit has won the Swedish SEO price – a testament of our online marketing strategy and team • 2023: Svenssons.se (Furniture) • 2022: Chilli.se (Furniture) • 2021: Bygghemma.se (Building goods

  11. Slide 11: Agenda

    Agenda • Q3 2023 highlights • Financial update • Conclusions • Q&A 26 October 2023 11

  12. Slide 12: We have taken share in a challenging market and deliver on our cost reduction initiatives

    We have taken share in a challenging market and deliver on our cost reduction initiatives We have taken share in a continued weak market – sales EBIT margin supported by improved inventory handling supported by international sales outside the Nordics and SG&A costs Net sales (SEKm) Adjusted EBIT (SE

  13. Slide 13: EBIT margin bridge 2022 Q3 – 2023 Q3

    EBIT margin bridge 2022 Q3  2023 Q3 EBIT margin Q3 '22 1,5% • Margin pressure from high campaign activity in the market – partly offset by mix effects and increase in Product margin postage income from customers Inventory handling • Lower inventory handling cost – impact from cost saving initiative

  14. Slide 14: We have generated SEK 1.2bn in cash flow from operating activities during the first 3 quarters

    We have generated SEK 1.2bn in cash flow from operating activities during the first 3 quarters of the year Significant improvement in cash flow from operating Liquidity mainly driven by cash flow from operating activities compared to last year (Q3 2022: -133m) activities Jul-Sep 2023 (SEKm) SEKm 1 2

  15. Slide 15: We have reduced total interest bearing liabilities by more than SEK 1bn since the start of the year

    We have reduced total interest bearing liabilities by more than SEK 1bn since the start of the year – reducing risk Overview of financial position • SEK 884m reduction in Adjustments SEKm 30 Sep 2023 31 Dec 2022 Δ for earn-outs and deferred payments Total interest bearing liabilities 3,126.8 4,141.1

  16. Slide 16: Agenda

    Agenda • Q3 2023 highlights • Financial update • Conclusions • Q&A 26 October 2023 16

  17. Slide 17: Q3 Summary

    Q3 Summary Balance sheet significantly strengthened – reducing risk  Total interest bearing liabilities reduced by more than SEK 1bn since start of the year  We have generated SEK 1.2bn in cash flow from operating activities so far into the Continued strong cash flow year – single most important a

  18. Slide 18: Q&A

    Q&A 26 October 2023 18

  19. Slide 19: iS Ly

    iS Ly Kan Paes Y . ae Slr. ! 4 > : ote Sore - = aul =) = (00

  20. Slide 20: We make living easy

    WE MAKE LIVING EASY

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