Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q3 2020 Earnings Presentation
20 slides from Balco Group Ab's earnings presentation, Nov 12, 2020
Slide 1: Q3 report 1 July – 30 September 2020
Q3 report 1 July – 30 September 2020 12 November 2020 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: Q3 – Strong financial position, but quarter affected by Covid-19
Q3 – Strong financial position, but quarter affected by Covid-19 Improved EBIT-margin, but negative Covid-19 impact 1 - Net sales 258 MSEK (292) - Operating profit 29 MSEK (31) - Operating margin improved to 11.2% (10.7) Covid-19 2 - The second wave of Covid-19 with increased spread of infection in
Slide 4: Q3 financial highlights
Q3 financial highlights Strong cash flow, improved operating margin • Net sales amounted to 258 MSEK (292) Net sales • Renovation accounted for 94% of sales and New Build for 6% • Order intake amounted to 142 MSEK (199) Order intake and order backlog The Renovation segment accounted for 87% of the o
Slide 5: Q3 – Strong financial position, but quarter affected by Covid-19
Q3 – Strong financial position, but quarter affected by Covid-19 Order intake Order backlog MSEK MSEK -17% -29% 199 1 557 1 294 141 2019 Q3 2020 Q3 2019 Q3 2020 Q3 Revenue Operating profit MSEK MSEK -12% -8% 292 31 29 258 2019 Q3 2020 Q3 2019 Q3 2020 Q3 5
Slide 6: Q3 – Development per business segment
Q3 – Development per business segment Renovation segment –quarter affected by Covid-19 Order intake Order backlog MSEK MSEK -23% -24% 1 415 162 1 089 124 2019 Q3 2020 Q3 2019 Q3 2020 Q3 Revenue Operating profit MSEK MSEK -5% -6% 255 242 31 29 2019 Q3 2020 Q3 2019 Q3 2020 Q3 6
Slide 7: Q3 – Development per business segment
Q3 – Development per business segment New Build –quarter affected by Covid-19 Order intake Order backlog MSEK MSEK 45% -51% 205 37 142 18 2019 Q3 2020 Q3 2019 Q3 2020 Q3 Revenue Operating profit MSEK MSEK -57% -60% 38 2 16 1 2019 Q3 2020 Q3 2019 Q3 2020 Q3 7
Slide 8: 9M financial highlights
9M financial highlights Net sales growth, improved profitability and cash flow • Net sales increased 5% to 931 (887) Net sales • Renovation accounted for 91% of sales and New Build for 9% • Order intake amounted to 703 MSEK (997) Order intake • The Renovation segment accounted for 86% of the order i
Slide 9: 9M – Net sales growth and improved profitability
9M – Net sales growth and improved profitability Order intake Revenue MSEK MSEK -30% 5% 997 931 887 703 2019 9M 2020 9M 2019 9M 2020 9M Operating profit EPS MSEK SEK 10% 7% 113 3,82 103 3,58 2019 9M 2020 9M 2019 9M 2020 9M 9
Slide 10: 9M - revenue and earnings per business segment
9M - revenue and earnings per business segment Renovation – sales and profit growth New Build – improved operating margin Revenue Revenue MSEK MSEK -33% 11% 123 850 82 764 2019 9M 2020 9M 2019 9M 2020 9M Operating profit Operating profit MSEK MSEK 10% -27% 109 9 98 6 2019 9M 2020 9M 2019 9M 2020 9M
Slide 11: Strong financial position
Strong financial position Equity ratio and balance sheet strong, prepared for acquisitions Equity/asset ratio • Equity/asset ratio at 49% (45) driven by increased profit and low investments • Net debt/EBITDA at 0.4x (1.5), the reduction in debt is due to a strong cash flow Net debt/EBITDA • Net debt
Slide 12: Financial targets
Financial targets BALCO FIGURES Q3 2020, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 6% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.9% 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: Q&A
Q&A 14
Slide 15: Financial appendix
Financial appendix 15
Slide 16: Consolidated income statement
Consolidated income statement 16
Slide 17: Consolidated balance sheet
Consolidated balance sheet 17
Slide 18: Consolidated cash flow statement
Consolidated cash flow statement 18
Slide 19: Key ratios
Key ratios Jul-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2020-2019 = 20202019 2019/20 2019 Net sales 258,5 202.4 9314 87,3 12647 12206 Order intake* 1419 199.3. 703,0 97,3 10548 1349.1 Order backlog 1204,0 15569 12940 15287 12940 15224 Gross profit 655 674 2403 2194 320,9 3000 EBITDA 382 40,1 1407 1283 189,2
Slide 20: Segments financials
Segments financials Jul-Sep Jan-Sep Oct-Sep Jan-Dec Net sales, MSEK 20202019 = 2020-2019 2019/20 2019 Renovation 2425 2548 8496 7644 1129,6 10444 New Build 16,0 37,6 818 122,9 135,1 176,2 Group other 7,0 39 16,1 11,9 20,3 16,1 Elimination 0 3.9 461-119-203 16,1 Total Net Sales 258,5 292,4 931,4 887.