Slide 1: Q3 report 1 July–30 September 2019
Q3 report 1 July– 30 September 2019 14 November 2019 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 • 31 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 for
Slide 3: Q3 – Consistently good quarter
Q3 – Consistently good quarter Growth in order intake, net sales and EBIT 1 - Order intake +57% - Net sales +23% - Operating profit +25% Delayed start-up of some major projects 2 - Organic growth was negative by 9.8 percent - This is explained by delayed start-up of some major projects Organization
Slide 4: Q3 financial highlights
Q3 financial highlights Consistently good quarter • Net sales increased 23% to 292 MSEK (238) Net sales • Acquired growth was 33%, while organic growth was negative by 10% • Renovation accounted for 87% of sales and New Build for 13% • Order intake increased 57% to 199 MSEK (127), of which organic g
Slide 5: Q3 – Growth of topline, earnings, order intake and order backlog
Q3 – Growth of topline, earnings, order intake and order backlog Order intake Order backlog MSEK MSEK 57% 29% 199 1 557 127 1 203 2018 Q3 2019 Q3 2018 Q3 2019 Q3 Revenue Operating profit MSEK MSEK 23% 25% 292 31 238 25 2018 Q3 2019 Q3 2018 Q3 2019 Q3 5
Slide 6: Q3 - revenue and earnings growth per business segment (Renovation)
Q3 - revenue and earnings growth per business segment Renovation segment – strong order intake and solid profitability Order intake Order backlog MSEK MSEK 36% 40% 1 415 162 1 037 116 2018 Q3 2019 Q3 2018 Q3 2019 Q3 Revenue Operating profit MSEK MSEK 35 16% 30 24% 25 20 255 31 15 219 25 10 5 0 2018
Slide 7: Q3 - revenue and earnings growth per business segment (New Build)
Q3 - revenue and earnings growth per business segment New Build – new strategy delivers Order intake Order backlog MSEK MSEK -14% 216% 165 37 142 12 2018 Q3 2019 Q3 2018 Q3 2019 Q3 Revenue Operating profit MSEK MSEK 2 24% 1 684% 31 2 25 0 0 2018 Q3 2019 Q3 2018 Q3 2019 Q3 7
Slide 8: 9M financial highlights
9M financial highlights Strong growth in sales and order intake with improved profitability • Net sales increased 18% to 887 MSEK (754) Net sales • Acquired growth was 24%, while organic growth was negative by 6% • Renovation accounted for 86% of sales and New Build for 14% • Order intake increased
Slide 9: 9M – Order intake exceeded revenue by 12%, improved profitability
9M – Order intake exceeded revenue by 12%, improved profitability Order intake Revenue MSEK MSEK 18% 43% 997 887 754 698 2018 9M 2019 9M 2018 9M 2019 9M Operating profit MSEK 31% 103 79 2018 9M 2019 9M 9
Slide 10: 9M - revenue and earnings growth per business segment
9M - revenue and earnings growth per business segment Renovation – solid and profitable growth New Build – new strategy delivers Revenue Revenue MSEK MSEK 13% 62% 123 764 678 76 2018 9M 2019 9M 2018 9M 2019 9M Operating profit Operating profit MSEK MSEK 22% 98 582% 80 9 1 2018 9M 2019 9M 2018 9M 201
Slide 11: Strong financial position
Strong financial position Equity ratio and balance sheet continuously strong, prepared for more acquisitions • Equity/asset ratio at 45.0% (46.4) driven by increased balance sheet (total assets) Equity/asset ratio from acquisition of TBO-Haglinds AB and implementation of IFRS 16 • Net debt/EBITDA at
Slide 12: Financial targets
Financial targets BALCO FIGURES Q3 2019, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 13.0% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 12.1%1) NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not ex
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 during these 90 years • Climate positive after 20 years with Balco glazed balcony in Climate positive Sweden • Work on certification
Slide 14: Q&A
Q&A 14
Slide 15: Financial appendix
Financial appendix 15
Slide 16: Consolidated income statement
Consolidated income statement Jul-Sep Jan-Sep Oct-Sep Jan-Dec MSEK Note 2019 2018 2019 2018 2018/19 2018 Net sales 292,4 237,7 887,3 753,8 1 191,5 1 058,1 Production and project costs -225,0 -181,5 -667,8 -566,5 -905,6 -804,3 Gross profit 67,4 56,2 219,4 187,3 285,9 253,8 Sales costs -19,7 -20,4 -68
Slide 17: Consolidated balance sheet
Consolidated balance sheet 30-sep 30-sep 31-dec MSEK 2019 2018 2018 ASSETS Non-current assets Goodwill 401,4 372,4 401,1 Other intangible assets 52,3 12,6 51,8 Concessions 54,2 - - Property, plant and equipment 138,9 146,1 189,9 Financial assets 4,3 4,2 5,4 Deferred tax assets 1,8 4,7 1,7 Total non-
Slide 18: Consolidated cash flow statement
Consolidated cash flow statement Jul-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2019 2018 2019 2018 2018/19 2018 Operating activities Operating profit (EBIT) 31,3 25,1 102,6 78,6 129,6 105,6 Adjustment for non-cash items 9,2 3,1 27,1 13,4 34,7 21,0 Interest received 0,1 0,0 0,8 0,1 0,8 0,1 Interest paid -1,8
Slide 19: Key ratios
Key ratios Jul-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2019 2018 2019 2018 2018/19 2018 Net sales 292,4 237,7 887,3 753,8 1 191,5 1 058,1 Order intake 199,3 127,4 997,3 698,0 1 302,4 1 003,1 Order backlog 1 556,9 1 202,7 1 556,9 1 280,0 1 556,9 1 203,5 Gross profit 67,4 56,2 219,4 187,3 285,9 253,8 EBITDA
Slide 20: Segments financials
Segments financials Jul-Sep Jan-Sep Oct-Sep Jan-Dec Net sales, MSEK 2019 2018 2019 2018 2018/19 2018 Renovation 254,8 218,9 764,4 678,0 1 034,1 947,7 New Build 37,6 18,8 122,9 75,8 157,5 110,4 Group other 3,9 4,0 11,9 12,0 16,0 16,1 Elimination -3,9 -4,0 -11,9 -12,0 -16,0 -16,1 Total Net Sales 292,4