Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Q4 2023 Earnings Presentation
16 slides from Byggmax Group Ab's earnings presentation, Jan 31, 2024
Slide 1: Q4 Report 2023
Q4 REPORT 2023 31 January 2024 Karl Sandlund, CEO Helena Nathhorst, CFO BYGGMAX GEMAX)
Slide 2: Q4 2023: Lower cost and strengthened balance sheet in weak market
Q4 2023: LOWER COST AND STRENGTHENED BALANCE SHEET IN WEAK MARKET @ Q4 and Q1 the smallest quarters of the year rd Continued weak consumer market r Lower operating costs & inventory vs. last year r Strengthened balance sheet © SEK 0.50 (0.00) per share in proposed dividend Net sales, SEK M Net sales
Slide 3: Selected financial highlights — full year 2023
SELECTED FINANCIAL HIGHLIGHTS — FULL YEAR 2023 NET SALES R12 SEK 6.1 BN -15.8% vs. 2022 EBITA R12 SEK 179M -330 M vs. 2022 CASH FLOW FROM OPERATING ACTIVITIES R12 SEK 781M SEK +246 M vs. 2022 NET DEBT EXCL IFRS16 SEK 948M SEK -235 M vs. 2022 NET OF NEW STORES R12 5 209 stores in total
Slide 4: Underlying consumer drivers still at very low levels
UNDERLYING CONSUMER DRIVERS STILL AT VERY LOW LEVELS Intention to buy new home within next 12 months (SWE); Index -70 -72 -74 . Historic 76 average -78 -80 -82 -84 -86 -88 -90 Intention to renovate within next 12 months (SWE); Index -25 Historic average
Slide 5: Improved customer offer and strengthened position
IMPROVED CUSTOMER OFFER AND STRENGTHENED POSITION Emme) 94% of stores upgraded to latest store concept 7 new stores during 2023, four announced for 2024 Record high customer satisfaction KOMMANDE BUTIKER PROVMALA I VART DIGITALA VERKTYG q (Af Kostnadstt firgbrytning. a gf Os8ker pa kuldr? Testa dig
Slide 6: Update on prioritized actions
UPDATE ON PRIORITIZED ACTIONS Assortment optimization. Optimizing assortment and sourcing to secure sales and gross margin Cost efficiency. Continuously securing industry’s lowest operating cost
Slide 7: Strong gross margin in weak market
STRONG GROSS MARGIN IN WEAK MARKET Percent 34,7 34,8 35,2 34,5 33,3 34,1 33,9 33,4 321 32,6 31,3 30.8 @ Product mix and assortment @ Volume (price & logistics) 2018 2019 2020 2021 2022 2023 Q4 FY
Slide 8: Continuously securing industry's lowest operating cost
CONTINUOUSLY SECURING INDUSTRY’S LOWEST OPERATING COST High inflation Market salary increases More stores Upgraded stores Development of operating cost 2023 vs 2022 Percent Qi Q2 -4% -11% Q3 Q4 ' _ -13% Cost focus throughout the entire organization Further improved ways-of- working in stores — plann
Slide 9: Lower operating cost per store despite high inflation
LOWER OPERATING COST PER STORE DESPITE HIGH INFLATION Operating cost divided by average number of stores each year SEK millions 7,3 6,8 | ; | 2020 2021 2022 2023 General inflation 20% since 2020 Byggmax operating cost per store same in 2023 as in 2020 — despite 94% of stores upgraded and record high
Slide 10: Adapting inventory levels to sales volume
ADAPTING INVENTORY LEVELS TO SALES VOLUME Inventory level by end of quarter SEK millions 1881 1784 1771 1678 08 1711 Continued focus on 1608 Oo adjusting inventory levels — 1370 20% Q1-1% vs last year, Q4 -20% 1281 vs last year Optimization of assortment, improved logistics set-ups and adapting to l
Slide 11: Weak Q4 market in line with expectations
WEAK Q4 MARKET IN LINE WITH EXPECTATIONS Sales development, Q4 2023 vs. 2022 Store portfolio and channel development — fe) NUMBER OF STORES 14.8% Oct-Dec Fullyear 2023022 LFL New stores Currency 14.9% 12% 41.0% Beginning of the period 209 204 ‘sweden + New stores oO 4 19% + Acauired stores o 0 Capoc
Slide 12: Strong operational focus in low season quarter
STRONG OPERATIONAL FOCUS IN LOW SEASON QUARTER P&L Q4 2023 SEKM 2023 2022 Net sales 998 1,170 Other operating income ab un Total revenue 1,009 1,182 Cost of goods sold -654 -758 Other external costs and operating expenses -83 -107 Personnel costs 195 -200 Depreciation and amortization of tangible as
Slide 13: Strong gross margin and reduced cost base
STRONG GROSS MARGIN AND REDUCED COST BASE P&L 2023 SEKM 2023 2022 Net sales 6,113 7,260 Other operating income 39 38 Total revenue 6,152 7,298 Cost of goods sold -4,069 4,799 Other external costs and operating expenses -490 -609 Personnel costs -811 -827 Depreciation and amortization of tangible ass
Slide 14: Improved cash flow & reduced net debt
IMPROVED CASH FLOW & REDUCED NET DEBT Netdebt exci irrsis Cash flow from operating activities 1000 1000 “ [ [ | | l l | . 0 0 Eis a = ua = a 500 500 a4 Qi a2 Q3 a4 Qi a2 Q3 a4 a4 Qi a2 Q3 a4 Qi a2 Q3 a4 2021 2022 2023 2021 2022 2023 Net debt reduced by SEK 235 M in 2023 to SEK 948 M at year end (1,1
Slide 15: Summary: Improved Byggmax in weak market - fit-for-growth when market returns
SUMMARY: IMPROVED BYGGMAX IN WEAK MARKET - FIT-FOR- GROWTH WHEN MARKET RETURNS @& Weak It has been two difficult years for the Nordic consumer — uncertainty, high ee® market inflation and rising interest rates * Continued weak market, especially related to larger projects x Actions Byggmax has spent
Slide 16: Q&A