Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Bygghemma Group — Q1 2019 Earnings Presentation
29 slides from Bhg Group Ab's earnings presentation, 2019
Slide 1: Solid first quarter sales and record-high margins
2019/Q1 SOLID FIRST QUARTER SALES AND RECORD-HIGH MARGINS Bygghemma Group First AB (publ) 1
Slide 2: Today's presenters
2019/Q1 Today’s presenters Martin Edblad Adam Schatz Acting President and CEO CFO • Bygghemma Group since 2012 • Bygghemma Group since 2019 • CFO of CDON Group (now Qliro Group, publ) (2010-12) • Axiell Group 2015-2019 (CFO, Head of Business Division) • CFO of MTG’s online business area (2004-10) •
Slide 3: IFRS 16 Important clarifying information
2019/Q1 IFRS 16 Important clarifying information • Bygghemma Group First AB applies IFRS 16 from 1 January, 2019 • The new accounting standard has had the following impact: − Increased the total assets by around SEK 360 million − Expected to have a positive EBITA and EBITDA effect of around SEK 7 mi
Slide 4: Agenda
2019/Q1 Agenda • Results highlights • Business update • Financial update Q1 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 4
Slide 5: Agenda
2019/Q1 Agenda • Results highlights • Business update • Financial update Q1 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 5
Slide 6: Strong first quarter sales and margin improvement
2019/Q1 Strong first quarter sales and margin improvement Sales growth continues to outperform the Nordic Highest first quarter results to date, driven by a record-high overall market gross margin level Net sales (SEKm) Adjusted EBITA (SEKm) Adjusted EBITA margin +19% +74% Organic growth 8% 1 220,1
Slide 7: Agenda
2019/Q1 Agenda • Results highlights • Business update • Financial update Q1 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 7
Slide 8: Bygghemma Group at a glance
2019/Q1 Bygghemma Group at a glance The clear Nordic online leader in home improvement Significant scale and profitability 0.4% 2.5% 3.9% 5.0% 4.1% 4.8% 4.4% 5 169 4 974 4 311 CAGR 3 956 +46% 2 604 Net sales Jan-Dec 2018 1 895 Denmark Other 12% 2% 1 096 Norway Home 6% furnishing 38% DIY 62% Finland
Slide 9: Q1 highlights
2019/Q1 Q1 highlights • Number one European online retailer within home improvement Strengthened market • Strengthened dominant Nordic position – close to 30-percent online market share within position both the DIY- and Home Furnishing retail segments Positive momentum • 19% YoY growth and organic g
Slide 10: Market position strengthened by two exciting add-ons
2019/Q1 Market position strengthened by two exciting add-ons • Acquisition of Designkupp AS on 29 January • Acquisition of Nordiska Fönster on 1 March Designkupp is the leading online retailer in Norway primarily focused on bathroom • Nordiska Fönster is a leading online retailer in the value-for-mo
Slide 11: Agenda
2019/Q1 Agenda • Results highlights • Business update • Financial update Q1 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 11
Slide 12: Sales growth mainly driven by visits and AOV growth
2019/Q1 Sales growth mainly driven by visits and AOV growth FI, DK and NO continued to increase share of Group sales Continued strong development in KPIs Net sales (SEKm) +19% # of visits Q1 2019 +38% 34 882 Organic (000’s) Q1 2018 25 355 growth 8% # of orders Q1 2019 +3% 399 (000’s) Q1 2018 387 1 2
Slide 13: Higher AOV translates to improved unit economics
2019/Q1 Higher AOV translates to improved unit economics Gross margin of different average orders values ILLUSTRATIVE with same freight cost (assumed at SEK 400) • Markedly improved unit economics Average when the average order value Order Value (AOV), (SEK) Gross Margin 2 (%) increases +1.9ppts 4 0
Slide 14: Record-high gross margin and highest Q1 EBITA to date
2019/Q1 Record-high gross margin and highest Q1 EBITA to date Gross margin improved mainly due to higher margins within Highest EBITA to date and improved EBITA margin the Home Furnishing segment Gross margin (%) Adjusted EBITA (SEKm) Adjusted EBITA margin +3.8ppts +74% 24,6% 20,8% 53,4 30,6 3.0% 4.
Slide 15: DIY segment: Continued increase in online market share
2019/Q1 DIY segment Continued increase in online market share • Net sales increased by 13.4% - DIY represented 56% of the Strong Q1 2018 EBITA and calendar continued healthy organic Group’s net sales in the first quarter effect in Q1 2019 growth and well-performing Net sales (SEKm) Gross margin Adju
Slide 16: Home Furnishing: Solid growth and record-high EBITA-margin
2019/Q1 Home Furnishing segment Solid growth and record-high EBITA-margin • Net sales increased by 26.7%, Home furnishing represented 44% of the Record-high EBITA-margin building on the positive Group’s net sales in the first quarter momentum from the fourth Net sales (SEKm) Gross margin Adjusted EB
Slide 17: Full-year cash flow conversion target remains 100%
2019/Q1 Cash flow and financial position Full-year cash flow conversion target remains 100% 26% cash conversion, affected by the inventory build-up Liquidity driven by strong operating cash flow before the high season in the second quarter (including impact from IFRS 16) Q1 2019 (SEKm) Cash conversi
Slide 18: Financial position remains solid
2019/Q1 Cash flow and financial position Financial position remains solid Overview of financial position SEKm 31 Mar 2019 • Net debt / EBITDA of 2.1x, in line with the financial target of 1.5 – 2.5x Interest bearing liabilities 1,518.5 Cash and cash equivalents (265.3) • The Group’s unutilised credi
Slide 19: Agenda
2019/Q1 Agenda • Results highlights • Business update • Financial update Q1 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 19
Slide 20: Summary
2019/Q1 Summary • Positive momentum from the fourth quarter of 2018 continued • Continued to consolidate position as the number one European online retailer within home improvement by further strengthening dominant Nordic position • Highest first quarter results to date, driven by a record- high gro
Slide 21: Agenda
2019/Q1 Agenda • Results highlights • Business update • Financial update Q1 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 21
Slide 22: Appendix
7 Appendix Bygghemma First Holding AB 22
Slide 23: Condensed consolidated financial information
2019/Q1 Condensed consolidated financial information Q1 Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2018 Net sales 1,220.1 1,220.1 1,025.1 19.0 4,973.7 Gross profit 300.4 300.4 213.1 41.0 1,047.5 Gross margin (%) 24.6 24.6 20.8 18.4 21.1 Adjusted EBITDA** 85.9 62.3 36.5 70.5 231.1 Adju
Slide 24: DIY segment
2019/Q1 DIY segment Q1 Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2018 Net sales 688.6 688.6 607.2 13.4 3,073.8 Gross profit 148.9 148.9 123.6 20.5 612.1 Gross margin (%) 21.6 21.6 20.4 6.2 19.9 Adjusted EBITDA 32.4 22.9 24.3 -5.8 150.2 Adjusted EBITDA margin (%) 4.7 3.3 4.0 -16.9 4.9
Slide 25: Home Furnishing segment
2019/Q1 Home Furnishing segment Q1 Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2018 Net sales 534.1 534.1 421.6 26.7 1,918.8 Gross profit 151.7 151.7 90.3 68.0 437.2 Gross margin (%) 28.4 28.4 21.4 32.6 22.8 Adjusted EBITDA 57.5 43.4 13.1 230.1 88.3 Adjusted EBITDA margin (%) 10.8 8.1
Slide 26: P&L
2019/Q1 P&L Q1 Jan-Dec SEKm 2019 2018 2018 Net sales 1,220.1 1,025.1 4,973.7 Other operating income 0.1 - 0.0 Total net sales 1,220.1 1,025.1 4,973.7 Cost of goods sold -919.7 -812.0 -3,926.2 Personnel costs -107.2 -106.6 -420.4 Other external costs and operating expenses -111.2 -117.0 -469.6 Other
Slide 27: Balance sheet
2019/Q1 Balance sheet 31 Mar 31 Dec SEKm 2019 2018 2018 Non-current assets Goodwill 2,671.5 2,455.8 2,590.7 Other intangible fixed assets 1,260.2 1,162.7 1,225.3 Total intangible fixed assets 3,931.8 3,618.5 3,815.9 Buildings and land 11.4 11.2 11.3 Leased fixed assets 351.0 - - Tangible fixed asset
Slide 28: Consolidated statement of cash flows
2019/Q1 Consolidated statement of cash flows Q1 Jan-Dec SEKm 2019 2018 2018 Cash flow from operating activities before changes in 67.4 -42.0 97.8 working capital Changes in working capital -24.2 23.9 22.7 Cash flow from operations 43.1 -18.1 120.5 Investments in operations -74.0 -12.0 -58.9 Investme
Slide 29: Reconciliation of non-IFRS metrics
2019/Q1 Reconciliation of non-IFRS metrics Q1 Jan-Dec SEKm 2019 2019* 2018 2018 Operating income 38.3 36.4 -29.2 87.2 Depreciation and amortisation of acquisition-related 9.8 9.8 9.3 37.5 intangible fixed assets EBITA 48.1 46.2 -19.9 124.8 EBITA (%) 3.9 3.8 -1.9 2.5 Acquisition-related costs 1.4 1.4