Bravida Holding AB · OMXSTO:BRAV
Bravida Holding AB — Q3 2019 Earnings Presentation
25 slides from Bravida Holding AB's earnings presentation, Nov 6, 2019
Slide 1: Bravida Q3 2019
Mattias Johansson, CEO Åsa Neving, CFO BRAVIDA Q3 2019 6 November 2019 BRINGING BUILDINGS TO LIFE
Slide 2: Today's presenters
Today’s presenters Åsa Neving Mattias Johansson CFO since 2019 CEO and Group President since 2015* 2 *With Bravida since 1998 Source: Company information
Slide 3: About Bravida
About Bravida Business highlights Sales split based on 2018 sales Net sales by type of facility Infrastructure 7% 7% Education 8% 22% 8% Bravida is the premier Industry 12% Represented in 12% multi-technical service 15% Apartment Buildings 19*% around 160 locations Healthcare 12% provider in the Nor
Slide 4: Summary
Summary ■ Strong order momentum – order backlog up +35% YoY to SEK 14.5 billion ■ Continued high M&A activity – 4 acquisitions completed during Q3 and approximately SEK 1 billion in acquired sales YTD (16 acquisitions) ■ 10% growth in service sales – 47% of total sales (45%) ■ Improved margin in Nor
Slide 5: Stockholm region
Stockholm region ■ The Stockholm business has experienced negative earnings performance for an extended period, affecting the margin in Sweden ■ To improve earnings in Stockholm a number of measures have been taken: – new leadership – restructuring – a greater emphasis on project management and cont
Slide 6: Key highlights in Q3 2019
Key highlights in Q3 2019 § Net sales grew 5% to SEK 4,638m (4,437), organic growth -3% and M&A 7% Sales § Growth in Sweden, Denmark and Finland § Service sales growth 10% and installation sales growth 0% § Order backlog at record level, SEK 14,507m, +35% YoY Order momentum § Continued good momentum
Slide 7: Market trends
Market trends Still a good market: service and installation activity good § Main growth drivers are public investments in buildings and infrastructure Sweden § Declining production of residential construction will be replaced by projects from other types of facilities § Construction confidence indic
Slide 8: Group sales & EBITA development
Group sales & EBITA development Key highlights in Q3 Sales YoY reported growth EBITA & margin (SEKm, %) (SEKm, %) Good sales growth 16,000 900 +5% +7% 6.0% 6.0% 5.6% 5.4% § Sales growth 5%, of which 7% from M&A, negative organic growth -3% 14,000 800 § Sales growth in Sweden, Denmark and Finland 700
Slide 9: Order momentum
Order momentum Key highlights in Q3 Order intake & YoY reported Order backlog & YOY growth growth (SEKm, %) (SEKm, %) Order backlog at record level: SEK 14,507m 18,000 16,000 § Order backlog +35% higher YoY § Increasing order backlog in Q3, SEK 602m 16,000 +25% +21% +35% 14,000 § Increasing order ba
Slide 10: Acquisitions 2019
Acquisitions 2019 Key highlights § 5 acquisitions completed in Denmark adding approx. SEK 430m in annual sales § 10 acquisitions completed in Sweden adding approx. SEK 500m annual sales 1 bolt-on, annual sales SEK 20m § 1 acquisition completed in Finland adding approx. SEK 20m annual sales § 3 acqui
Slide 11: Sweden
Sweden Key highlights Q3 2019 Sales YoY reported growth EBITA & margin (SEKm, %) (SEKm, %) Higher sales but lower EBITA margin 9,000 500 § Sales +6% due to acquisitions § Organic growth -1% 8,000 450 +6% +4% 6.7% 6.3% 6.0% 6.1% § EBITA margin 6.3% (6.7) 400 § Challenges in the Stockholm region 7,000
Slide 12: Norway
Norway Key highlights Q3 2019 Sales YoY reported growth EBITA & margin (SEKm, %) (SEKm, %) Sales lower but improved EBITA margin 4,000 250 § Sales declined by -5%, organic growth -5% -5% +5% 5.6% 5.9% 5.7% 4.4% § Sales lower due to tender selection in the Oras 3,500 business 200 § EBITA margin impro
Slide 13: Denmark
Denmark Key highlights Q3 2019 Sales YoY reported growth EBITA & margin (SEKm, %) (SEKm, %) Strong sales growth and stable EBITA margin 3,000 160 § Sales growth +20%, good activity in service +20% +20% 5.6% 5.6% 5.1% 5.0% § Organic growth +3% 140 § EBITA increased 20%, stable margin at 5.6% 2,500 Or
Slide 14: Finland
Finland Key highlights Q3 2019 Sales YoY reported growth EBITA & margin (SEKm, %) (SEKm, %) Sales increased but lower EBITA margin 1,000 9 § Sales increased by 4% 4% 12% 1.8% 0.5% 0.4% 1.0% 900 § Organic growth was negative -8% due to 8 tender selection and low volume in some 800 branches 7 § EBITA
Slide 15: Net debt and cash flow
Net debt and cash flow Key highlights Q3 2019 Financial position (SEKm) Q3 2019 LTM operating cash flow (SEKm) Cash balances 467 § New financing in place from October 14, 2019 1,600 SEK 2,500m financing package (RCF) Term loan, RCF, Commercial paper -2,280 1,418 – Loans and drawn facility SEK 1,100m
Slide 16: Financial targets
Financial targets Sales Adj. EBITA > 10% sales growth > 7% Group margin 5% p.a. organic growth Higher organic margin in existing branches 5%-7% p.a. contribution from bolt-on acquisitions Including dilutive impact of bolt-on acquisitions Cash conversion ∆ Net debt • Cash conversion above 100% & divi
Slide 17: Robust and resilient cash flow generator
Robust and resilient cash flow generator Net sales, growth Stable profitability Good cash conversion* Net sales LTM, SEKbn Adjusted EBITA LTM, SEKm Cash conversion LTM, % 22 200 20.3 180 1,300 1,240 20 19.3 1,211 Financial 160 1,200 target >100 % 1,086 140 18 17.3 1,100 120 1,000 959 16 100 14.8 880
Slide 18: Stable performance
Stable performance Summary Q3 2019 ■ Sales increase 5%, growth from acquisitions 7%, organic growth -3% ■ Installation order backlog at record level, SEK 14,507m, and continued good business momentum for service will support growth coming quarters ■ EBITA margin 6.0% ■ EBITA margin improved in Norwa
Slide 19: | ii i
| ii i Pr vide BRINGING BUILDINGS TO LIFE +> bravida
Slide 20: A broad-based business with end-to-end solutions
A broad-based business with end-to-end solutions Possibilities for cross sales Sustainable service and installation of the functions that bring buildings to life 20 Source: Company information
Slide 21: Financial performance Q3 2019
Financial performance Q3 2019 Sales bridge Earnings per share Key highlights in Q3 (SEKm,%) (SEKm, %) 5,000 3.5 § Net sales growth 5% 4,500 -1% § Growth from acquisitions +7% -3% +7% +1% 3 § Organic growth -3% 4,000 § EBITA increased by 3% 3,500 2.5 § EBITA margin unchanged at 6.0% § Finance net -16
Slide 22: Leadership in a fragmented Nordic market
Leadership in a fragmented Nordic market Top 3 player Market position Market share market shares Bravida 11% Sweden No. 1 11% Assemblin 8% Caverion 5 % Norway (63 branches) Finland Bravida 6% (17 branches) Norway No. 1 6% Caverion 5% Gunnar Karlsen 5% Kemp & Lauritzen 7% Denmark No. 2 6% Bravida 6%
Slide 23: Bravida Way and operating model
Bravida Way and operating model A unique corporate culture ‘Branch-first’ entrepreneurial culture § Branch manager pivotal role § Incentivised to operate as owner – profitability and M&A § Implements central initiatives ‘Margin-first’ control § “Margin over volume” § Standard operating model § Centr
Slide 24: Bravida at a glance
Bravida at a glance Net sales by area of technology Net sales by customer group 7% 6% Construction companies 38% 8% 15% Electrical 49% Other commercial 21% Heating & Plumbing 29% 10% 38% Public sector 17% 49% HVAC 15% Property companies 10% Other 7% 17% Industry 8% 29% Other 6% 21% Complete housing
Slide 25: Creating stability by combining service and installation
Creating stability by combining service and installation §Service §Renovation & redevelopment §New-builds 46% of net sales 16% of net sales 38% of net sales Monitoring / supervision on-site operations Renovation or larger New build or and improvements maintenance projects major redevelopment 25 Note