Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Q4 2020 Earnings Presentation
24 slides from Byggmax Group Ab's earnings presentation, Jan 26, 2021
Slide 1: Discount, Not Cheap
DISCOUNT, NOT CHEAP Byggmax Group Mattias Ankarberg, CEO Jan 26, 2021
Slide 2: Agenda
AGENDA − Byggmax & our market − Our priorities − Financials − Outlook − Q&A 2
Slide 3: Everybody has the right to a fantastic home
EVERYBODY HAS THE RIGHT TO A FANTASTIC HOME Best price * Right assortment * Quick & easy * We care 3
Slide 4: Discount keeps growing
DISCOUNT KEEPS GROWING Change in number of stores Sweden +7% Other stores Discount stores -7% 4 Source: Svensk Handel, Byggmax consumer research
Slide 5: Byggmax in numbers
BYGGMAX IN NUMBERS 6.8 BILLION SEK SALES 2020 169 BYGGMAX STORES 2020 No 1 +29% PRICE PERCEPTION IN DIY SE/NO/FI SALES GROWTH 2020 3 MARKETS AND 2 SEGMENTS 20% No 1 +50% GROUP E-COM SHARE OF SALES 2020 SUSTAINABLE BRAND INDEX 2019 BYGGMAX E-COM SALES GROWTH 2020 5
Slide 6: Success story with new momentum
SUCCESS STORY WITH NEW MOMENTUM Sales, SEK bn 7 6 5 4 3 2 1 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Start (‘93) Rebrand Byggmax (‘99) Enter NO (‘07), FI (‘08) IPO (’10) Byggmax 2.0 Acquire Buildor G
Slide 7: Mishaps fixed, upgrade in progress
MISHAPS FIXED, UPGRADE IN PROGRESS Old mishaps fixed Now upgrading the customer offer Turn around Skånska Byggvaror New store formats ─ 9 consecutive quarters of profit growth ─ Updated assortment, better experience ─ Small town format (2017), Garden departments (2017), Store 3.0 (Q4 2018) Turn arou
Slide 8: Large Nordic DIY market
LARGE NORDIC DIY MARKET High Nordic DIY spend ─ Highest DIY spend per capita in Europe Nordic Home Improvement ─ High taxes & expensive craftsmen market SEK ~250bn ─ Many own multiple houses ─ Long DIY tradition Nordic DIY ~100bn Nordic DIY market ca SEK 100bn Nordic B2C building ─ Byggmax core mark
Slide 9: High involvement, changing behaviors
HIGH INVOLVEMENT, CHANGING BEHAVIORS Do the fun part - More small DIY projects - More DIFM for larger, more complex projects Don’t fool me - Consumers source materials, also when using contractors 8% 46 Shift to value - Discount gaining share - Particularly with younger ALWAYS USE AVERAGE AGE OF Dig
Slide 10: DIY boom and accelerating trends
DIY BOOM AND ACCELERATING TRENDS Nordic consumer market for building materials estimated +15-20% 2020 ‒ “Stay home” effect during covid-19 pandemic ‒ Housing transactions increased ‒ Weather effects favorable Accelerating consumer trends 1. Home even bigger role in consumers’ lives “Sweden could fol
Slide 11: Niche position with trade and big box as main competitors
NICHE POSITION WITH TRADE AND BIG BOX AS MAIN COMPETITORS Building Home & materials Trade Big box Hardware + Online only interior B2B B2C B2C (+ B2B) B2C B2C − Service − Wide range – “one − Stores in retail areas − Wide range − Competence − Lowest price stop” and options − Wide home & hardware − Goo
Slide 12: Modern discount feels like premium
MODERN DISCOUNT FEELS LIKE PREMIUM New store 2017 New store 2019 Updated assortment * Higher quality perception * Still lowest price! 12
Slide 13: Customers – and others – like the upgrade
CUSTOMERS – AND OTHERS – LIKE THE UPGRADE %-POINT BYGGMAX BRAND CONSIDERATION (TWO YEARS) POINTS BYGGMAX NPS DEVELOPMENT (TWO YEARS) 13
Slide 14: Store sales +6 percent after upgrade
STORE SALES +6 PERCENT AFTER UPGRADE “Store 3.0”: increased assortment and improved store experience Upgrades drive 6% sales increase per store & happier customers 14
Slide 15: E-commerce +50% 2020
E-COMMERCE +50% 2020 Room for wider offer Number of products Store e-com + 1m 150 000 + 50 000 Byggmax Bauhaus Home Depot (US) – Our approach: lowest price, wide assortment, customer decides how & when to shop – Much progress last two years: new site, larger assortment, more delivery options – Byggm
Slide 16: E-com best together with stores
E-COM BEST TOGETHER WITH STORES 169 stores integrated with +50,000 e-com products GROWTH OF COLLECT@STORE % ADDITIONAL E-COM GROWTH AFTER ORDERS VS. HOME DELIVERY OPENING A NEW BYGGMAX STORE LOWEST FREIGHT Customer decides ─ Shop in store ─ Shop from car ─ Collect@store ─ Cheap delivery ─ Express de
Slide 17: Own initiatives add to sales growth
OWN INITIATIVES ADD TO SALES GROWTH Store upgrades ─ ”Store 3.0” 39% (19%) of portfolio end Q4, generate 6% per store ─ Garden departments perform strongly 2020 (12% of portfolio) E-commerce ─ Byggmax segment online sales +60% Q4, +50% YTD Focused ─ Larger assortment, upgraded site, better delivery
Slide 18: ... and have much more to give
… AND HAVE MUCH MORE TO GIVE Store upgrades Store expansion e-commerce Sales +6% per store Three formats, 15-45+m/store Sales +50% 2020 SEK ~3bn sales potential remaining 100% 240 > 150 000 in current Byggmax initiatives alone 169 Denmark entry 2021 adds to potential 39% + 50 000 Move towards – More
Slide 19: Denmark entry adds to potential
DENMARK ENTRY ADDS TO POTENTIAL Denmark – increased potential for organic growth and scale effects ─ Good size DIY market and good fit with Byggmax: price conscious consumers, good product overlap, competition we know ─ Possible to serve through Byggmax existing supply chain and warehouse structure
Slide 20: Strong financials 2020
STRONG FINANCIALS 2020 2019 2020 Financials started improving 2019 Sales 5.3bn 6.8bn (vs LY) (+3%) (+29%) Massive scale effects 2020 ‒ Sales increased +29% EBITA 5.1% 10.4% ‒ Higher GM%, OpEx only +10% margin (+0.8%-p.) (+5.3%-p.) More solid earnings ‒ No drags, more contributors (Finland, Skånska B
Slide 21: Strong position & positive outlook
STRONG POSITION & POSITIVE OUTLOOK 1. Byggmax has a clear discount position in a lively and attractive DIY market 2. Strengthened market position drives profitable growth – Previous mishaps fixed – Upgraded stores, e-com and brand gives more & happier customers 3. Our business model allows us to be
Slide 22: Save the date – Capital market event
SAVE THE DATE – CAPITAL MARKET EVENT Byggmax Group to hold capital market event, and share more about our initiatives and growth journey ahead Digital event March 23, 2021 – save the date Details will follow separately 22
Slide 23: Q&A
Q&A Everybody has the right to a fantastic home Best price * Right assortment * Quick & easy * We care 23
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