ByggPartner Gruppen AB · OMXSTO:BYGGP
ByggPartner Gruppen AB — ByggPartner — Q2 2019 Earnings Presentation
34 slides from ByggPartner Gruppen AB's earnings presentation, August 2019
Slide 1: Company Presentation Q2 Interim Report 2019
Q2 INTERIM REPORT 2019 | AUGUST 2019 COMPANY PRESENTATION 1|
Slide 2: Today's presenters and agenda
Today’s presenters and agenda In brief FREDRIK LEO, CEO HELENA BLOM, CFO & ”COMMON SENSE FROM DALARNA” Joined in 2017 as EVP EVP Services & Construction, Scaffolding background from NCC Constructions. Joined in 2018, backgrund from ABB ByggPartner is a Swedish CEO from August and SSAB. construction
Slide 3: Business Update
Fredrik Leo, CEO BUSINESS UPDATE 3|
Slide 4: Apr-Jun 2019 in summary
Apr-Jun 2019 in summary • Order intake SEK m 484 (593) -19% • Orderbook SEK m 1 860 (2 010) -8% • Sales Growth SEK m 501.4 (421.5) +19% • Increased operating profit EBIT SEK m 16.4 (11.4) +43% • Increased EBIT-margin 3.3% (2.7) +22% • Cash-flow SEK m 59.8 (33.3) 4| | BUSINESS UPDATE
Slide 5: Well diversified project- and customer mix
Well diversified project- and customer mix § Core construction – no property development § Order book analysis SEK m 1.860 Partnering project Project mix Geography 3% 6% 57% 34% 30% 43% 61% 66% Partnering Regular contracts Social properties Dalarna Stockholm/Mälardalen Rental housing Housing Commerc
Slide 6: Core Construction – Projects SEK m 50-300
Core Construction – Projects SEK m 50-300 Ongoing projects in Q2 | examples Arboga Kommun – Pre school Arboga Kommun – Care homes Rodret Bostads AB – Student housing Sala Kommun – Sport facility Hefab – Housing Sala Kommun – School Svenska Bostäder – Housing Fastighets AB L E Lundberg – Social prope
Slide 7: Ambition to be the leading provider of partnering in Sweden
Our ambition is to be the leading provider of partnering in Sweden, in our niche, i.e. construction projects SEK m 50-300. 7|
Slide 8: Added values created in direct contact with customers
Added values are created in the direct contact between our employees, and the customer. We are convinced that increased collaboration, partnering, is the future way of working for sustainable community building. 8| | BUSINESS UPDATE
Slide 9: No changes in our view of our market
No changes in our view of our market § So far, the construction industry is stable in most of our segments and markets we focus on § The public sector, mainly municipalities, county councils and public housing rental companies continue to order § We see resources being moved into construction of soc
Slide 10: Turning the order book into profitable growth
Turning the order book into profitable growth Q1 § Picking the right projects § Improving our core processes Q3 § Continued focus on project mix and profitability throughout the entire organization § Developing our organization 2019 § Continued to strengthen project steering – educational program ”P
Slide 11: Performance Q2 2019 vs Mid-Term Financial Targets
Performance Q2 2019 vs Mid-Term Financial Targets MID-TERM TARGETS PERFORMANCE STRATEGIES FOR INCREASED AND SUSTAINABLE PROFITABILITY SALES GROWTH SALES GROWTH 10-15% 19% Organic growth in focus markets MID-TERM TARGET Q2 2019 EBIT MARGIN EBIT MARGIN 5% 3,3% Strengthen partnering position MID-TERM T
Slide 12: Our financial track record – Revenues & EBIT-margin
Our financial track record – Revenues & EBIT-margin § Strong order intake § Order book is driving revenues § Stabilization of EBIT-margin MSEK 2 000 9% 1 860 10% 1 800 7% 1 655 8% 7% 1 600 6% 5% 6% 5% 1 317 1 400 1,294 1,126 1 247 1,168 1,045 3% 3% 3% 4% 1 200 871 5% 4% 4% 1 000 949 695 2% 2% 3% 800
Slide 13: Stable order intake and backlog development
Stable order intake and backlog development Growing order intake and backlog… MSEK 2 300 2 100 1 900 Order intake, LTM¹ 2 1392 098 1 8012 205 1 818 1 709 SEK Order book¹ 1,3841 615 2 098 1 700 1 500 1,2253 1,468 1,150 1,3831,3341 384 1 616 1 500 1 7041 621 1 601 1 6162 010 1 4541 4521 838 1 8771 860
Slide 14: Construction services | Q2
Construction services | Q2 § Continued strong performance in Q2 § Sales SEK m 53.6 (44.7) § EBIT SEK m 2.9 (1.2) § Service contracts two years incl. index and extension 14 | | BUSINESS UPDATE
Slide 15: Scaffolding | Q2
Scaffholdings | Q2 § Sales SEK m 13.2 (13.8) § EBIT SEK m 1.8 (2.2) § Focus on continued growth and profitability § Digitalization for increased efficiency in material management § Working environment is a top priority 15 | | BUSINESS UPDATE
Slide 16: Financial Update
Helena Blom, CFO & EVP FINANCIAL UPDATE 16 |
Slide 17: Order Intake & Order Book, Revenues
Order Intake & Order Book Q2 | MSEK ACC | MSEK YEAR ON YEAR | MSEK 700 2500 1400 2500 2500 2500 593 1198 2098 600 1200 523 2000 2000 2000 2000 484 946 1709 500 1000 1597 1453 408 849 810 400 1500 800 1500 1500 1500 300 1000 600 1000 1000 1000 200 400 500 500 500 500 100 200 0 0 0 0 0 0 2016 2017 201
Slide 18: Profitability & Operating result, Cash-flow
Profitability & Operating result Q2 | MSEK ACC | MSEK YEAR ON YEAR | MSEK 18 16,4 3,5 40 4,5 60 55,8 4,5 16 33,4 4 50,5 4 3 35 50 45,8 14 30 3,5 3,5 26 40,8 11,4 2,5 12 10,4 23,4 3 40 3 9,6 25 10 2 19,1 2,5 2,5 20 30 8 1,5 2 2 15 6 1,5 20 1,5 1 4 10 1 1 0,5 10 2 5 0,5 0,5 0 0 0 0 0 0 2016 2017 2018
Slide 19: Revenues and EBIT per segment Jan–Jun 2019
Revenues per segment EBIT per segment Jan – Jun 2019 Jan – Jun 2019 2% 5% 10% 20% 75% 88% Construction Services Scaffolding Construction Services Scaffolding 2019 2018 2019 2018 SEK millions Jan-Jun Jan-Jun Change SEK millions Jan-Jun Jan-Jun Change Revenues Operating Profit Construction 878,8 685,5
Slide 20: Efficient Capital Management, Earnings per share
Efficient Capital Management Net working capital end of quarter, MSEK| Average -46 MSEK 40 19 20 20 0 DIVIDEND POLICY 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 -20 The goal is to deliver a dividend -22 -40 -24 -24 -27 corresponding to 50 percent of net -
Slide 21: Low capital requirement increasing returns
Low capital requirement increasing returns Strong return on capital… ROE ROE ROE ROE ROCE1 ROCE1 ROCE1 ROCE1 34% 24% 26% 32% 36% 29% 33% 39% SEKm SEKm 132 132 160 140 142 139 144 140 127 129 140 120 120 100 100 80 80 51 56 60 60 41 46 43 43 31 35 40 40 20 20 0 0 2016 2017 2018 2019 LTM 2016 2017 201
Slide 22: ByggPartner as an investment
ByggPartner as an investment CUSTOMER ORIENTED – EFFICIENT 1. OVERHEAD DEBT FREE – OPERATIONAL 2. EXCELLENCE 34% 66% Dalarna (42%) (58%) CORE CONSTRUCTION – NICHE SEKm 50-300 ü Market leader 3. NO PROPERTY DEVELOPMENT 35% Stockholm STRONG CASH-FLOW – (34%) 31% 4. (24%) FINANCIAL MODEL SUSTAINABLE BU
Slide 23: Q&A
Q&A Fredrik Leo CEO Fredrik.leo@byggpartner.se Helena Blom CFO & EVP helena.blom@byggpartner.se +4676 677 66 10 +4670 658 50 90 23 |
Slide 24: In brief
In brief ”COMMON SENSE FROM DALARNA” ByggPartner is a Swedish construction company with the competence to serve its customers throughout the entire construction process, creating value through personal commitment, sound expertise and common sense. 24 |
Slide 25: Appendix
Appendix 25 |
Slide 26: Key ratios
KEY RATIOS SEK millions 2014 2015 2016 2017 2018 2019-06 Revenues 1 020,7 1 125,6 1 246,7 1 316,8 1 655,5 992,9 Production and operating costs -956,9 -1 037,4 -1 167,3 -1 244,7 -1 575 -940,4 Gross profit 63,8 88,2 79,4 72,1 80,4 52,4 Selling and administrative expenses1) -25,0 -25,6 -28,8 -31,3 -34,
Slide 27: Ownership structure
OWNERSHIP STRUCTURE Shareholders in ByggPartner i Dalarna Holding AB (publ) as of June 30, 2019 Surditet AB (Bo Olsson) 24,66% Länsförsäkringar Fondförvaltning AB 13,40% Nordea Livförsäkring Sverige AB 4,74% Försäkringsaktiebolaget Avanza Pension 4,07% Aktiebolaget Pom Sandelius 3,76% LGT Bank LTD 3
Slide 28: Executive management team
EXECUTIVE MANAGEMENT TEAM Fredrik Leo, Helena Blom, CFO Ann-Louise CEO & EVP Services & Holmbom, HR Scaffholding Manager • Joined ByggPartner in 2017 as EVP Construction, • Joined ByggPartner in 2018 • Joined ByggPartner in 2010 appointed CEO in 2018 • ~15 years experience from ABB. • Previous exper
Slide 29: Our board of directors
OUR BOARD OF DIRECTORS Tore Hallersbo, Bo Olsson, Helena Skåntorp, Chairman of the Director Director Board • Elected to join the Board of ByggPartner in • Founder of ByggPartner and a board • Joined the Board of ByggPartner in October November 2016 member since 1992 2016 • Other board assignments: B
Slide 30: Ongoing projects
~- ByggPartner Ongoing projects 4
Slide 31: Project for EcoDataCenter in Falun
Project for EcoDataCenter in Falun 31 |
Slide 32: Projects with Arboga Kommun
Projects with Arboga Kommun 32 |
Slide 33: Project Vallaskolan, Sala Kommun
Project Vallaskolan, Sala Kommun CO2 savings in project Vallaskolan correspond to appr. 40 tours in a mid-sized car around the globe 33 |
Slide 34: Project for Fastighets AB L E Lundberg
Project for Fastighets AB L E Lundberg 34 |