Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Q1 2019 Earnings Presentation
25 slides from Byggmax Group Ab's earnings presentation, Apr 17, 2019
Slide 1: Interim Report Q1 2019
INTERIM REPORT Q1 2019 I Lilt NV (W000 Pee Mattias NETS CEO, Amal Pernilla Walfridsson, CEO April 17, 2019 Tih ™ TT ball! | 01 Th ST
Slide 2: Highlights
HIGHLIGHTS uY \ — Increased sales and profitability in Q1 n NEW a La a o Net sales increased 7.5 percent 4 o Strong gross margin and cost control o EBITA excl. non-recurring items SEK -78m (-97m), corresponding to +3.7%-points margin - Market continues to grow o Positive weather conditions vs. last
Slide 3: Q1 2019 key figures incl. and excl. IFRS 16
─ Mkr incl. IFRS 16 Q1 2019 Q1 2018 Diff.% R12 o o Net Sales 715.4 665.2 7.5 5 157.9 ─ Gross Margin (%) 33.4 32.0 1.4 31.0 o EBITA adjusted -77.8 -96.8 19.6 236.8 ─ EBITA margin (%) adjusted -10.9 -14.6 3.7 4.6 o Mkr excl. IFRS 16 Q1 2019 Q1 2018 Diff.% R12 EBITDA adjusted -48.6 -66.2 26.6 363.8 ─ E
Slide 4: Market Development
MARKET DEVELOPMENT Nordic consumer market estimated to have increased 2-4 percent in Q1 Nordic consumer market for building materials continued to grow in Q1 Short term weather has big impact and conditions improved vs. last year’s long winter o Winter and snow during Jan and Feb in most of Nordics
Slide 5: Sales Development Q1
SALES DEVELOPMENT Q1 Share of Byggmax Group sales Q1 2019 Sales development Q1 2019 vs. Q1 2018 a Byggmax 90.0% +10.6% LFL +3.1% +6.7% Non-LFL* Currency +0.8% LFL ca as market New stores contribute well Byggmax continues to take market share Skanska Byggvaror 7.5% -17.2% — Increase in order intake,
Slide 6: Byggmax Focus 2019: Profitable Growth
BYGGMAX FOCUS 2019: PROFITABLE GROWTH Store expansion — 12 new stores — Of which ca 5 format for smaller towns Upgrade our offer Focused — 8new Garden departments growth — Upgrade 15 existing stores to Store 3.0 E-commerce growth — Expand assortment — More delivery options Simple and efficient opera
Slide 7: Number of stores
─ Number of stores ─ 163 163 147 140 119 112 105 94 86 73 ─ 27 10 ─ 3 1993 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Skånska Byggvaror Norway Skånska Byggvaror Sweden Byggmax Finland Byggmax Norway Byggmax Sweden
Slide 8: Positive Indications from Store 3.0
POSITIVE INDICATIONS FROM “STORE 3.0” Tested "Store 3.0” in two stores during autumn Goal to upgrade our offer in existing stores - More complete for both smaller and bigger projects - Improved shopping experience Upgrade to Store 3.0 includes - Selected new assortments in electrical installation, v
Slide 9: Continued to Develop Our E-commerce
CONTINUED TO DEVELOP OUR E-COMMERCE @ ieee G cocssowor —Tariatileeniapygonacce fArint | Rirecna — lomain Eenateats BYGGMAX 2 sesiens22900 6120 ANTVERKARTIANSTER | BYGGPLANERAREN | GORDETSJALY Upgraded to modern platform and site, incl. - Improved design and new check-out — Customer experience based
Slide 10: Skånska Byggvaror Focus 2019: Build for Growth
SKANSKA BYGGVAROR FOCUS 2019: BUILD FOR GROWTH Focus 2019 on building for profitable growth in core business Growth initiatives within - Assortment - Sales - Marketing Continuous efficiency improvements Positive indications of growth initiatives and expect first effects in the coming peak season, i.
Slide 11: Financial Overview
FINANCIAL OVERVIEW
Slide 12: Introduction of IFRS 16
INTRODUCTION OF IFRS 16 The IFRS 16 accounting standard was implemented January 1, 2019. This resulted in the majority of the company’s finance leases (primarily store leases) no longer being classified in the Profit and Loss as lease rents, but will instead be recognized as asset depreciation and i
Slide 13: Impact of IFRS 16
Impact of IFRS 16 ─ ─ Profit & Loss (SEK M) 2019 Q1 SG&A 72.9 o Affecting EBITDA 72.9 o Depreciation -68.9 Affecting EBITA 4.1 o Affecting EBITA margin 0.6% Net finance -7.8 Tax 0.8 ─ Net income -3.0 o o Balance Sheet (SEK M) 2019 Q1 Tangible fixed assets 1 477.6 o Current receivables -36.1 Affectin
Slide 14: Key figures incl. and excl. IFRS 16
Mkr incl IFRS 16 Q1 2019 Q1 2018 Diff.% R12 ─ Net Sales 715.4 665.2 7.5 5 157.9 ─ Growth comparable stores (%) 1.7 -16.9 18.6 N/A Gross Margin (%) 33.4 32.0 1.4 31.0 ─ EBITA adjusted -77.8 -96.8 19.6 236.8 o EBITA margin %, adjusted -10.9 -14.6 3.7 4.6 Profit after tax -81.0 -78.4 -3.3 135.0 ─ Earni
Slide 15: Net sales increase breakdown
‒ Net sales increase of 7.5 percent for the Group was divided according to Q1 2019 % Q1 2018 % ‒ the following: Comparable stores, local currency 1.7 -16.9 o Non-comparable stores and Other 5.1 2.1 Currency effect 0.8 -0.2 ‒ Total 7.5 -15.0 Net sales increase of 10.6 percent for o the Byggmax segmen
Slide 16: Gross Margin
GROSS MARGIN — The gross margin was 33.4 percent (32.0) in the first quarter, an increase of 1.4 pp compared to the same period last year. — Positive impact from price/mix effects - Intotal negative impact from currency development in Q1 16 36% 34% 32% 30% 28% 26% 24% 22% 20% Gross margin 33.4% 32.0
Slide 17: Personnel cost and other external expenses
‒ Personnel cost and other external expenses, SEK M excl. IFRS 16 Actuals Q1 2018 277.8 ‒ Cost affected by new stores 18.1 Costs excluding new stores and non-recurring items -11.8 ‒ Non-recurring items 4.6 Actuals Q1 2019 288.7 ‒ ‒ •
Slide 18: EBITA, adjusted by segment
Mkr incl IFRS 16 Q1 2019 Q1 2018 Diff.% R12 Q1 2019 ─ EBITA, adjusted Byggmax -50,9 -61,0 16,6 243,4 Skånska Byggvaror -25,4 -27,1 6,3 -9,8 ─ Other -1,6 -8,8 81,6 3,3 Group -77,8 -96,8 19,6 236,8 ─ EBITA margin %, adjusted Byggmax -7,9 -10,5 2,6 5,4 Skånska Byggvaror -44,5 -39,3 -5,2 -1,9 ─ Other -0
Slide 19: Net financial items
‒ Mkr incl. IFRS 16 Q1 2019 Q1 2018 Diff.% R12 Net financial items -14.8 -1.9 -680.1 -38.8 ‒ o o
Slide 20: Cash Flow
CASH FLOW 20 The first quarter generated a cash flow from operating activities in line with previous seasonal patterns. Cash flow from operating activities is positively affected by IFRS 16. Total IFRS 16 effect amounts to SEK +65.1 M, meaning YoY cash flow from operating activities excluding IFRS 1
Slide 21: Financial Goals
FINANCIAL GOALS Given the effects of IFRS 16, the 2019 profitability target has been updated to be based on EBITA (replacing EBITDA). Overall, the reformulated profitability target corresponds to the previous EBITDA target, but is formulated to fit with the new accounting policy: Financial goals — O
Slide 22: Outlook and Summary
OUTLOOK AND SUMMARY
Slide 23: Outlook
OUTLOOK Intent to renovate, Sweden — Positive market outlook for 2019 0 o Optimistic view on continued 5 solid market growth in Nordics “40 o Swedish consumers’ intent to “415 renovate further improved as of oo Q4 2018 — Focus on profitable growth in 2019, with initiatives in place to drive profitab
Slide 24: Summary
SUMMARY Sales and profitability increase in Q1 Market growth and positive outlook Initiatives in place to drive profitable growth in core business 24 BYGGMAX
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