Slide 1: Q2 report 1 April – 30 June 2018
Q2 report 1 April – 30 June 2018 24 August 2018
Slide 2: Q2 – Building for future growth
Q2 – Building for future growth Order intake, SEK 299.4m compared with SEK 394.8m previous year. Comparing with the historic best quarter. Renovation accounted for 90% of order intake in the quarter. 1 - Order intake exceeds revenue in the quarter by 11% - Order backlog amounting to SEK 1,309m, a gr
Slide 3: Q2 financial highlights
Q2 financial highlights Solid performance despite delays in Denmark • Net sales increased 1.9% to SEK 273.6m (268.4), an increase of SEK 5.2m, impact Net sales from IFRS 15 and delayed planning permissions in Denmark resulting in later start- ups of projects • Underlying growth 9% • Renovation accou
Slide 4: 6M – Topline and earnings growth
6M – Topline and earnings growth Order intake Order backlog SEK m 615 SEK m 1 309 -7.2% 571 1 225 6.9% 2017 6M 2018 6M 2017 6M 2018 6M Revenue Operating profit SEK m SEK m 516 499 54 3.4% 54 -0.7% 2017 6M 2018 6M 2017 6M 2018 6M 4
Slide 5: Renovation segment remains at stable 90% of order intake
Renovation segment remains at stable 90% of order intake Accumulated order intake per segment Q2 2018 SEK 2018 Renovation Ack 2018 New Built Ack 600 000 000 Renovation segment 500 000 000 accounted for 90% of total order intake in 400 000 000 Q2 2018 300 000 000 200 000 000 100 000 000 0 Jan-18 Feb-
Slide 6: 6M revenue and earnings growth per business segment
6M revenue and earnings growth per business segment Renovation – solid and profitable growth New Build – low risk strategy Revenue Revenue SEK m SEK m 90 459 80 7.8% 73 426 70 -21% 60 57 50 40 30 2017 6M 2018 6M 2017 6M 2018 6M Operating profit Operating profit SEK m SEK m 58 55 5 -4.2% n.m. 1 2017
Slide 7: Q2 – Topline and earnings growth
Q2 – Topline and earnings growth Order intake Order backlog SEK m SEK m 1 309 395 1 225 6.9% -24.1% 299 2017 Q2 2018 Q2 2017 Q2 2018 Q2 Revenue Operating profit SEK m SEK m 268 274 32 1.9% 31 2.7% 2017 Q2 2018 Q2 2017 Q2 2018 Q2 7
Slide 8: Q2 revenue and earnings growth per business segment
Q2 revenue and earnings growth per business segment Renovation – impacted from IFRS and delays in Denmark New Build – low risk strategy Revenue Revenue SEK m SEK m 39 240 229 4.9% -15.5% 33 2017 Q2 2018 Q2 2017 Q2 2018 Q2 Operating profit Operating profit SEK m SEK m 35 -9.7% 32 3 n.m. 0 2017 Q2 201
Slide 9: Strong financial position
Strong financial position Equity ratio and balance sheet strengthened Equity/asset ratio • Equity/asset ratio at 45.1% Net debt/EBITDA • Net debt/EBITDA at 1.1x by end of June 2018 • Profit before tax SEK 50.5m (31.1) for the six-month period, improved by SEK Profit before tax 19.4m compared to last
Slide 10: Financial targets
Financial targets BALCO FIGURES Q2 2018, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 8.3% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.2%1) NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not exc
Slide 11: Balco has an attractive financial profile
Balco has an attractive financial profile – high revenue and order intake growth coupled with good profitability and stable cash conversion Order intake High revenue growth SEK m SEK m 989 1 006 1 114 802 1 066 1 069 990 639 568 616 2014 2015 2016 2017 2018 Q2 LTM 2014 2015 2016 2017 2018 Q2 LTM Str
Slide 12: Q&A
Q&A 12
Slide 13: Financial appendix
Financial appendix 13
Slide 14: Consolidated income statement
Consolidated income statement Q2 Jan-Jun Jul-Jun Jan-Dec SEK M 2018 2017 2018 2017 2017/18 2017 Net sales 273,6 268,4 516,1 499,2 1 005,9 989,0 Production and project costs -202,6 -200,9 -385,0 -374,2 -752,0 -741,1 Gross profit 71,0 67,5 131,2 125,1 253,9 247,8 Sales costs -24,5 -22,4 -49,4 -45,1 -9
Slide 15: Consolidated balance sheet
Consolidated balance sheet 30-jun 30-jun 31-dec SEK M 2018 2017 2017 ASSETS Non-current assets Goodwill 372,4 371,4 372,0 Other intangible assets 12,5 11,1 11,4 Property, plant and equipment 142,3 107,7 130,3 Financial assets 4,2 4,3 4,1 Deferred tax assets 1,9 0,7 0,9 Total non-current assets 533,3
Slide 16: Consolidated cash flow statement
Consolidated cash flow statement Q2 Jan-Jun Jul-Jun Jan-Dec SEK M 2018 2017 2018 2017 2017/18 2017 Operating activities Operating profit (EBIT) 31,5 30,8 53,5 53,9 91,9 92,3 Adjustment for non-cash items 5,7 5,2 10,3 9,0 21,0 19,7 Interest received 0,0 0,0 0,0 0,0 0,0 0,0 Interest paid -1,5 -2,0 -3,
Slide 17: Key ratios
Key ratios Q2 Jan-Jun Jul-Jun Jan-Dec SEK M 2018 2017 % 2018 2017 % 2017/18 2017 Net sales, SEK M 273,6 268,4 2% 516,1 499,2 3% 1 005,9 989,0 Order intake, SEK M 299,4 394,8 -24% 570,7 614,9 -7% 1 069,3 1 113,5 Order backlog, SEK M 1 308,8 1 224,8 7% 1 308,8 1 224,8 7% 1 308,8 1 238,4 Gross profit,
Slide 18: Segments financials
Segments financials Q2 Jan-Jun Jul-Jun Jan-Dec Net sales, SEK M 2018 2017 2018 2017 2017/18 2017 Renovation 240,3 229,1 459,2 426,2 880,5 847,5 New Build 33,2 39,3 57,0 73,1 125,3 141,4 Group other 4,0 1,8 8,0 3,6 13,0 8,6 Elimination -4,0 -1,8 -8,0 -3,6 -13,0 -8,6 Total sales 273,6 268,4 516,1 499,