Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q4 2020 Earnings Presentation
21 slides from Balco Group Ab's earnings presentation, Feb 18, 2021
Slide 1: Q4 report 1 October – 31 December 2020
Q4 report 1 October – 31 December 2020 18 February 2021 Kenneth Lundahl CEO Michael Grindborn, CFO
Slide 2: Snapshot of Balco
Snapshot of Balco The leading provider of complete glazed balcony systems in the Nordics Geographic overview • +30 years in the market for balcony systems • Provider of the leading glazed balcony systems in the market: - one-stop shop, inhouse expertise, own development and production - own sales fo
Slide 3: Q4 – Strong cash flow and financial position, despite Covid-19
Q4 – Strong cash flow and financial position, despite Covid-19 Sales and profit, negatively affected by Covid-19 1 - Net sales 269 MSEK (333) - Operating profit 3 MSEK (38), adjusted EBIT 22 MSEK (38) - Operating margin 1.1% (11.3), adjusted EBIT-margin 8.3% (11.3) 2 Covid-19 - Costs affecting compa
Slide 4: Q4: financial highlights
Q4: financial highlights Strong cash flow, but sales, order intake and profit affected by Covid-19 • Net sales amounted to 269 MSEK (333) Net sales • Renovation accounted for 92% of sales and New Build for 8% • Order intake amounted to 230 MSEK (352) The Renovation segment accounted for 89% of the o
Slide 5: Q4: Strong cash flow and financial position, despite Covid-19
Q4: Strong cash flow and financial position, despite Covid-19 Order intake Order backlog MSEK MSEK -29% -35% 352 1 522 1 087 230 2019 Q4 2020 Q4 2019 Q4 2020 Q4 Revenue Adjusted Operating profit MSEK MSEK -19% -41% 38 333 269 22 2019 Q4 2020 Q4 2019 Q4 2020 Q4 5
Slide 6: Q4: Development per business segment – Renovation
Q4: Development per business segment Renovation segment – quarter affected by Covid-19 Order intake Order backlog MSEK MSEK -21% -34% 1 339 260 204 882 2019 Q4 2020 Q4 2019 Q4 2020 Q4 Revenue Adjusted Operating profit MSEK MSEK -12% -34% 280 36 246 24 2019 Q4 2020 Q4 2019 Q4 2020 Q4 6
Slide 7: Q4: Development per business segment – New Build
Q4: Development per business segment New Build – quarter affected by Covid-19 Order intake Order backlog MSEK MSEK +12% -72% 204 92 183 26 2019 Q4 2020 Q4 2019 Q4 2020 Q4 Revenue Operating profit MSEK MSEK -58% -81% 53 3 22 1 2019 Q4 2020 Q4 2019 Q4 2020 Q4 7
Slide 8: 2020 full year: financial highlights
2020 full year: financial highlights Strong cash flow and financial position, despite Covid-19 • Net sales amounted to 1,200 (1,221) Net sales • Renovation accounted for 91% of sales and New Build for 9% • Order intake amounted to 933 MSEK (1,349) Order intake • The Renovation segment accounted for
Slide 9: 2020 full year: Strong cash flow and financial position, despite Covid-19
2020 full year: Strong cash flow and financial position, despite Covid-19 Order intake Revenue MSEK MSEK -2% -31% 1 349 1 221 1 200 933 2019 FY 2020 FY 2019 FY 2020 FY Adjusted Operating profit EPS MSEK SEK -4% -25% 4,79 140 135 3,58 2019 FY 2020 FY 2019 FY 2020 FY 9
Slide 10: 2020 full year: revenue and earnings per business segment
2020 full year: revenue and earnings per business segment Renovation – net sales growth New Build – stable operating margin Revenue Revenue MSEK MSEK +5% -41% 176 1 044 1 096 104 2019 FY 2020 FY 2019 FY 2020 FY Adjusted Operating profit Operating profit MSEK MSEK -1% -41% 135 133 12 7 2019 FY 2020 F
Slide 11: Strong financial position
Strong financial position Equity ratio and balance sheet strong, prepared for more acquisitions Equity/asset ratio • Equity/asset ratio at 49% (47). • Net debt/EBITDA at 0.3x (0.9), the reduction in debt is due to a strong cash flow Net debt/EBITDA • Net debt (excl. leasing)/EBITDA at -0.0x (0.6) •
Slide 12: Financial targets
Financial targets BALCO FIGURES FY 2020 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” -2% Adj. EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.2% NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not exceed
Slide 13: Sustainability initiatives
Sustainability initiatives • Materials and construction last for at least 90 years and are fully Lifetime 90 years recyclable thereafter only need two minor services • Balco city balconies last for over 70 years • Energy savings of 15-30% depending on product and conditions Energy savings • Reduced
Slide 14: Acquisition of Stora Fasad AB strengthens Balco Group’s customer offering
Acquisition of Stora Fasad AB strengthens Balco Group’s customer offering Background - Stora Fasad is a company that offers facade work, as well as window replacement, balcony and roof, for renovations and for new production; and also related services such as scaffolding work 1 - The acquisition str
Slide 15: Q&A
Q&A 15
Slide 16: Financial appendix
Financial appendix 16
Slide 17: Consolidated income statement
Consolidated income statement 17
Slide 18: Consolidated balance sheet
Consolidated balance sheet 18
Slide 19: Consolidated cash flow statement
Consolidated cash flow statement 19
Slide 20: Key ratios
Key ratios Oct-Dec Jan-Dec MSEK 2020-2019 = 2020-2019 Net sales 2686 3333. 1200,0 12206 Order intake 2297 ©3517 932,7 1349,1 Order backlog 10866 15224 1086,6 1522.4 Gross profit 49,1 80,6 2894 —-300,0 EBITDA 123 48,5 153.0 176,9 Adjusted EBITDA 317 48,5 172.4 — 176,9 Operating profit (BIT) 28 37,7 1
Slide 21: Segments financials
Segments financials Oct-Dec Jan-Dec Net sales, MSEK 2020 2019 += 2020-2019 Renovation 246,1 280,0 1095,7 1044.4 New Build 22,5 53,3 104,3 176,2 Group other 5,2 42 21,3 16,1 Elimination 2 42-213 161 Total Net Sales 268,6 333,3 12000 1220.6 Oct-Dec Jan-Dec Operating profit, MSEK 2020-2019 += 2020-2019