Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Bygghemma Group First — Q3 2019 Earnings Presentation
30 slides from Bhg Group Ab's earnings presentation, 2019
Slide 1: Strong growth and profit generation
2019/Q3 STRONG GROWTH AND PROFIT GENERATION Bygghemma Group First AB (publ) 1
Slide 2: Today's presenters
2019/Q3 Today’s presenters Martin Edblad Adam Schatz Acting President and CEO CFO • Bygghemma Group since 2012 • Bygghemma Group since 2019 • CFO of CDON Group (now Qliro Group, publ) (2010-12) • Axiell Group 2015-2019 (CFO, Head of Business Division) • CFO of MTG’s online business area (2004-10) •
Slide 3: Agenda
2019/Q3 Agenda • Results highlights • Business update • Financial update Q3 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 3
Slide 4: Agenda
2019/Q3 Agenda • Results highlights • Business update • Financial update Q3 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 4
Slide 5: Strong growth and profit generation
2019/Q3 Strong growth and profit generation Solid topline development – extending Strong bottom line delivery – highest Highest operating cash flow, for first nine already leading online market position third-quarter EBIT to date months, to date – 96% cash conversion Net sales (SEKm) Adjusted EBIT (
Slide 6: Agenda
2019/Q3 Agenda • Results highlights • Business update • Financial update Q3 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 6
Slide 7: Bygghemma Group at a glance
2019/Q3 Bygghemma Group at a glance The clear Nordic online leader in home improvement Significant scale and profitability 0.4% 2.5% 3.9% 5.0% 4.1% 4.1% 4.7% 5.1% 5 848 5 460 4 974 4 774 CAGR 3 956 +46% 2 604 Net sales Jul-Sep 2019 Other 1 895 Norway 8% 7% 1 096 Home Denmark furnishing DIY 11% 39% 6
Slide 8: Acquisition strengthens DIY private label portfolio
2019/Q3 Acquisition strengthens DIY private label portfolio • Acquired Arc E-commerce AB (outl1.se) on 26 July • Leading online store in Sweden for home, household and leisure products – with an average annual growth of 67 percent over the past five years. Selection of Outl1.se brands: • The company
Slide 9: Further roll-out of Installation services
2019/Q3 Further roll-out of Installation services • We now provide our customers within the DIY A selection of Bygghemma Group DIY companies offering segment not only with the broadest product Installation services through Svensk Installationspartner: range, but with a wider range of installation se
Slide 10: Sneak preview of Corporate identity elements
2019/Q3 Sneak preview of Corporate identity elements Bygghemma Group First AB (publ) 10
Slide 11: Agenda
2019/Q3 Agenda • Results highlights • Business update • Financial update Q3 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 11
Slide 12: Sales mainly driven by visits and growth in AOV
2019/Q3 Sales mainly driven by visits and growth in AOV Topline growth fueled by growth in all geographies, the Continued strong development in KPIs Nordic as well as the Eastern European ones Net sales (SEKm) +31.0% # of visits Q3 2019 +68% 48 007 Organic growth (000’s) Q3 2018 28 589 14.7% Proform
Slide 13: Balanced geography and brand mix to optimize growth
2019/Q3 Balanced geography and brand mix to optimize growth Balanced geographic mix making sales less The expansion of the DIY private label portfolio is a dependent on conditions in any one country vehicle for growth across geographies • From its Swedish origins, the Group has grown rapidly in the
Slide 14: Improved gross margin and highest Q3 EBIT to date
2019/Q3 Improved gross margin and highest Q3 EBIT to date Gross margin favorably affected by growth in AOV, strong Highest third-quarter EBIT to date growth in Home Furnishing and DIY private label portfolio – well ahead of last year Gross margin (%) Adjusted EBIT (SEKm) Adjusted EBIT margin +3.5 p.
Slide 15: DIY segment: Strong growth and increasing share of private label
2019/Q3 DIY segment Strong growth and increasing share of private label • Net sales increased by 25.6% of DIY represented 61% of the Solid growth in adjusted EBIT which organic growth accounted Group’s net sales in the third quarter for 11.9%, leading to further market Net sales (SEKm) Gross margin
Slide 16: Home Furnishing segment: Continued trajectory of strong growth and profitability
2019/Q3 Home Furnishing segment Continued trajectory of strong growth and profitability • Net sales increased by 40.9%, Home furnishing represented 39% of the Strong growth in adjusted EBIT buoyed by accelerating organic Group’s net sales in the third quarter Net sales (SEKm) Gross margin Adjusted E
Slide 17: Record-high operating cash flow
2019/Q3 Cash flow and financial position Record-high operating cash flow Highest operating cash flow, for first nine months, to date – Liquidity driven by strong operating cash flow 96% cash conversion Jan-Sep 2019 (SEKm) Cash conversion SEKm Excl. impact from IFRS 16 M&A capex of 96.2% SEK 173.6m i
Slide 18: Financial position remains solid
2019/Q3 Cash flow and financial position Financial position remains solid Overview of financial position SEKm 30 Sep 2019 • Net debt / EBITDA of 1.3x, outperforming Interest bearing liabilities 1,647.9 financial target of 1.5 – 2.5x Cash and cash equivalents (307.1) • The Group’s unutilised credit f
Slide 19: Agenda
2019/Q3 Agenda • Results highlights • Business update • Financial update Q3 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 19
Slide 20: Q3 Summary
2019/Q3 Q3 Summary • Consolidated already leading online market position within both segments Extended leading online market share • Net sales reached SEK 1,639 million: An increase of 31.0% of which 14.7% was organic Solid bottom line • Highest third-quarter EBIT to date delivery • EBIT growing 106
Slide 21: Agenda
2019/Q3 Agenda • Results highlights • Business update • Financial update Q3 2019 ‒ Group ‒ DIY segment ‒ Home Furnishing segment ‒ Cash flow and financial position • Summary • Q&A Bygghemma Group First AB (publ) 21
Slide 22: Appendix
7 Appendix Bygghemma First Holding AB 22
Slide 23: Note on adjusted EBIT
2019/Q3 Note on adjusted EBIT • As of the Q2 2019-report, Bygghemma Group Components in Q3-2019 adjusted EBIT and adjusted EBITDA introduces the measure adjusted EBIT to further clarify SEKm 38,8 0,4 121,8 the Group’s underlying profit generation and profitability. Adjusted EBIT replaces the term th
Slide 24: Condensed consolidated financial information
2019/Q3 Condensed consolidated financial information Q3 Jan-Sep Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% 2018 Net sales 1,639.0 1,639.0 1,251.1 31.0 4,567.8 4,567.8 3,694.0 23.7 4,973.7 Gross profit 378.1 378.1 244.8 54.5 1,076.2 1,076.2 749.3 43.6 1,047.5 Gross m
Slide 25: DIY segment
2019/Q3 DIY segment Q3 Jan-Sep Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% 2018 Net sales 1,002.7 1,002.7 798.6 25.6 2,737.5 2,737.5 2,306.3 18.7 3,073.8 Gross profit 207.6 207.6 155.4 33.6 571.4 571.4 451.6 26.5 612.1 Gross margin (%) 20.7 20.7 19.5 1.2 p.p. 20.9 20
Slide 26: Home Furnishing segment
2019/Q3 Home Furnishing segment Q3 Jan-Sep Jan-Dec SEKm (if not otherwise stated) 2019 2019* 2018 ∆% 2019 2019* 2018 ∆% 2018 Net sales 643.9 643.9 457.0 40.9 1,847.8 1,847.8 1,402.6 31.7 1,918.8 Gross profit 170.8 170.8 88.7 92.5 505.9 505.9 299.3 69.0 437.2 Gross margin (%) 26.5 26.5 19.4 7.1 p.p.
Slide 27: P&L
2019/Q3 P&L Q3 Jan-Sep Jan-Dec SEKm 2019 2018 2019 2018 2018 Net sales 1,639.0 1,251.1 4,567.8 3,694.0 4,973.7 Other operating income 0.2 0.3 0.2 - 0.0 Total net sales 1,639.1 1,251.4 4,568.0 3,694.0 4,973.7 Cost of goods sold -1,260.8 -1,006.3 -3,491.6 -2,944.7 -3,926.2 Personnel costs -118.3 -96.5
Slide 28: Balance sheet
2019/Q3 Balance sheet 30 Sep 31 Dec SEKm 2019 2018 2018 Non-current assets Goodwill 2,855.2 2,567.7 2,590.7 Other intangible fixed assets 1,293.1 1,214.9 1,225.3 Total intangible fixed assets 4,148.3 3,782.6 3,815.9 Buildings and land 11.1 11.2 11.3 Leased fixed assets 411.5 - - Tangible fixed asset
Slide 29: Consolidated statement of cash flows
2019/Q3 Consolidated statement of cash flows Q3 Jan-Sep Jan-Dec SEKm 2019 2018 2019 2018 2018 Cash flow from operating activities before changes in 107.9 28.3 289.8 37.0 97.8 working capital Changes in working capital -58.7 -75.1 54.6 61.0 22.7 Cash flow from operating activites 49.3 -46.7 344.4 98.
Slide 30: Reconciliation of non-IFRS metrics
2019/Q3 Reconciliation of non-IFRS metrics Q3 Jan-Sep Jan-Dec SEKm 2019 2019* 2018 2019 2019* 2018 2018 Operating income 72.3 70.1 17.4 202.5 196.6 43.1 87.2 Acquisition-related costs 0.0 0.0 0.7 1.7 1.7 1.7 2.0 Integration costs and costs related to warehouse move - - 12.5 - - 27.5 27.5 Last-mile p
Bygghemma Group First — Q3 2019 Earnings Presentation on 6ix