Slide 1: BE Group, Interim Report April – June 2019
BE GROUP, INTERIM REPORT APRIL – JUNE 2019 July 18th, 2019 Anders Martinsson, President and CEO Daniel Fäldt, CFO
Slide 2: Agenda
Agenda Q2 Overview Financials in Detail Business Areas - Status Outlook Q&A
Slide 3: Financial highlights – Q2 2019
Financial highlights – Q2 2019 Net sales amounted to SEK 1,193 M (1,312) The underlying operating result increased to SEK 32 M (26) Inventory gains of SEK 0 M (12) The operating result increased to SEK 32 M (22) Result after tax increased to SEK 19 M (7) Cash flow from operating activiti
Slide 4: Significant events after the end of the period
Significant events after the end of the period Peter Andersson has been appointed President and CEO and will assume the position on October 11 at the latest. Peter is 44 years old and has been active as Business Unit Manager for Production Sweden & Poland since 2016 A new three-year credit agree
Slide 5: Business development – Q2 2019
Business development – Q2 2019 Business area Sweden & Poland The production unit´s underlying operating result continued to develop positively The distribution business, delivered lower volumes and a higher proportion of direct business but managed to increase underlying operating result in perc
Slide 6: Financials in Detail
FINANCIALS IN DETAIL
Slide 7: Sales – Tonnage decline mainly in construction segment and manufacturing subcontractors
Sales – Tonnage decline mainly in construction segment and manufacturing subcontractors Q2 Growth in tonnage and sales (%) Change in Net Sales -9% 20% Tonnage -9% 15% Price/Mix -1% 10% 8% Currency +1% 5% 5% 4% 3% 1% 0% 0% -5% -2% Q2 -10% -9% -10% Change in tonnage -9% -15% Sweden & Poland -8
Slide 8: Gross Profit – Lower volume partly compensated by stronger margins
Gross Profit – Lower volume partly compensated by stronger margins Gross profit below last year SEK 164 M Gross Profit (SEK M and %) (179). Mainly driven by lower volume and lack of inventory gains 200 187 179 20% 180 166 164 19% 159 Gross margin 13.8% (13.6) and 160 152 151 152 18% 134 underlyi
Slide 9: Quarterly comparison to last year
Quarterly comparison to last year SEK M Q1 Q2 Q3 Q4 FY Net sales 2018 1 226 1 312 1 111 1 154 4 803 Change BA Sweden & Poland -8 -65 Change BA Finland & Baltics 0 -44 Change Other -13 -10 Net sales 2019 1 205 1 193 Change -2% -9% Operating result 2018 55 22 33 22 132 Inventory gains (-)/ losses (+)
Slide 10: Working capital – Lower level compared to Q1 and previous year
Working capital – Lower level compared to Q1 and previous year Working capital (SEK M) Q2 working capital improved for the third 700 35% quarter in a row 617 600 30% Stock levels remain on similar level as Q1 588 554 575 617 572 568 500 553 25% Average working capital tied-up increased 400 480
Slide 11: Operating cash flow – Continued positive development
Operating cash flow – Continued positive development Operating cash flow (SEK M) Operating cash flow of SEK 67 M (17), of which SEK 20 M is an effect of IFRS 16 120 240 implementation. 100 200 R12 SEK 199 M of which SEK 40 M is an 80 97 160 effect IFRS 16 implementation 60 80 120 67 62 Net deb
Slide 12: Financial Summary
Financial Summary Q2 Q2 SEK M 2019 2018 Change Net sales 1 193 1 312 -119 Underlying EBIT 32 26 6 % of Sales 2.6% 2.0% +0.6% Inventory gains/losses 0 -12 +12 Items affecting comparability - 16 -16 EBIT 32 22 +10 % of Sales 2.7% 1.6% +1.1% Financial net -7 -5 -2 Earnings before tax 25 17 +8 Net earni
Slide 13: Business Areas - Status Q2 2019
BUSINESS AREAS - STATUS Q2 2019
Slide 14: BA Sweden & Poland – lower volumes but underlying operating margin in line
BA Sweden & Poland – lower volumes but underlying operating margin in line with previous year Tonnage down -8% vs Q2 2018 uEBIT (SEK M) and sales growth (%) Net sales down -10%, and amounted to SEK 35 35 35% 30 33 30% 610 M (675) due to lower volumes in the 25 25% distribution business 20 27 26
Slide 15: BA Finland & Baltics – lower volumes compensated by higher underlying operating margin
BA Finland & Baltics – lower volumes compensated by higher underlying operating margin Tonnage down -11% vs Q2 2018 uEBIT (SEK M) and sales growth (%) Net sales down -7% and amounted to 35 35% 30 30% SEK 585 M (629) due to lower volumes 25 25% uEBIT of SEK 22 M (12) 20 26 23 26 22 22 20% 20
Slide 16: Outlook
OUTLOOK BE GROUP
Slide 17: Business Outlook
Business Outlook Demand in the third quarter is expected to be in line with the second quarter, adjusted for the vacation period. Positive development according to statistics regarding order intake for Finnish industry The steel prices are in general expected to remain on the same level as the
Slide 18: Summary and conclusions
Summary and conclusions Underlying operating result increased to SEK 32 M (26) Earning per share increased to SEK 1,44 (0,54) Balance sheet keeps improving with net debt, excluding IFRS 16, at SEK 402 M (496) and net debt/equity ratio at 44% (57%) Cash flow from operating activities increase
Slide 19: Q&A
Q&A
Slide 20: Thank you!
THANK YOU! For your time and interest www.begroup.com
Slide 21: Appendix – Financial Information
APPENDIX – FINANCIAL INFORMATION
Slide 22: Description of segments
Description of segments BA Sweden & Poland; BE Group Sweden, Lecor Stålteknik and BE Group Poland BA Finland & Baltics; BE Group Finland, BE Group Estonia, BE Group Latvia and BE Group Lithuania Parent Company and consolidated items; BE Group AB, Group eliminations and Operations under restruc
Slide 23: Appendix: Tonnage development
Appendix: Tonnage development Tonnage (‘000 tons) 20% 140 15% 120 10% 100 102 98 96 5% 94 93 92 80 89 82 84 0% 60 40 -5% 20 -10% 0 -15% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Tonnage Tonnage growth, %
Slide 24: Balance sheet
Balance sheet Jun Jun SEK M 2019 2018 Change Non-current assets 1 346 863 +483 Inventories 665 697 -32 Accounts receivable 603 663 -60 Other receivables 44 49 -5 Cash 158 51 +107 Total assets 2 816 2 323 +493 Equity 922 863 +59 Interest bearing liabilities 560 547 +13 Leasing liabilities 527 - +527