Byggpartner Gruppen Ab · OMXSTO:BYGGP
Byggpartner Gruppen Ab — ByggPartner — Q4 2018 Earnings Presentation
28 slides from Byggpartner Gruppen Ab's earnings presentation, February 2019
Slide 1: Company Presentation Q4 & Year-End 2018
Q4 & YEAR-END 2018 | FEBRUARY 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: Snapshot of ByggPartner
Snapshot of ByggPartner CUSTOMER ORIENTED – EFFICIENT 1. OVERHEAD DEBT FREE – OPERATIONAL 2. EXCELLENCE 48% 52% (64%) (36%) CORE CONSTRUCTION – ü Market leader 3. NO PROPERTY DEVELOPMENT Dalarna 14% Uppsala incl. (28%) Arboga 9% Stockholm STRONG CASH-FLOW – (10%) 25% 4. (25%) FINANCIAL MODEL PARTNER
Slide 4: 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 5: Core Construction – Projects 30-300 MSEK
Core Construction – Projects 30-300 MSEK Ongoing projects in Q4 | examples Arboga Kommun – Pre school Arboga Kommun – Care homes Rodret Bostads AB – Student housing Sala Kommun – Sport facility Hefab – Housing Sala Kommun – School Stockholms hem – Housing Fastighets AB L E Lundberg – Social properti
Slide 6: Q4 & Year-End 2018 | Key Ratios
Q4 & Year-End 2018 | Key Ratios § It was a stable quarter § Continued strong cash generation - the board propose an increased dividend § Our partnering strategy provides the right conditions for sustainable construction 6| | BUSINESS UPDATE
Slide 7: Performance 2018 vs Mid-Term Financial Targets
Performance 2018 vs Mid-Term Financial Targets MID-TERM TARGETS PERFORMANCE 2018 SALES GROWTH SALES GROWTH Organic growth in focus markets 10-15% 26% - - Leverage market leading position in Dalarna, grow in Stockholm, Uppsala and Mälardalen Convert our orderbook into profitable growth MID-TERM TARGE
Slide 8: Our financial track record – Revenues & EBIT-margin
Our financial track record – Revenues & EBIT-margin § Strong order intake § Record high order book is driving revenues § Stabilization of EBIT-margin MSEK 1 800 9% 1 656 10% 1 600 7% 7% 8% 6% 1 247 1 317 1 400 5% 1,294 5% 6% 5% 1,168 4% 4% 1 200 3% 3% 1,126 3% 4% 1 000 949 695 1,045 2% 800 2% 871 56
Slide 9: Turning the order book into profitable growth
Turning the order book into profitable growth § Picking the right projects Q1 § Improving our core processes § Developing our organization Q1 2019 § Strengthen project steering – start-up of the educational program ”Lyftet” § Re-organization Uppsala & Mälardalen Q4 2018 § Strengthen project steering
Slide 10: Core construction - no property development
Core construction - no property development 2.043 MSEK § Order book analysis § High activity in social properties § Focus on partnering projects Projects Customers Partnering project Social Properties 55% Arboga Kommun Housing 32% (BRF 5%) Rodret Bostads AB Sala Kommun 60% Commercial incl. service a
Slide 11: Our partnering strategy provides the right conditions for sustainable construction
Our partnering strategy provides the right conditions for sustainable construction § The foundation for sustainable entrepreneurship is profitability. § We take environmental and social issues into account during the entire process of the construction process. § We are building for a sustainable soc
Slide 12: Scaffholdings
Scaffholdings • Working environment and quality is key • Increased revenues with profitability • Focus on continued growth • Continue to focus on efficiency in material management 12 | | BUSINESS UPDATE
Slide 13: Construction services
Construction services • Strong revenue growth in 2018 and maintained profitability • Stable quarter • Focus is on increased profitability • Avesta and Hedemora merged 13 | | BUSINESS UPDATE
Slide 14: Financials Jan-Dec 2018 in summary
Financials Jan-Dec 2018 in summary • Strong order intake 2 098 MSEK (1 453) +44% • Orderbook 2 043 MSEK (1 601) +28% • Sales Growth 1 655 MSEK (1 317) +26% • Increased operating profit EBIT 45,8 MSEK (40,8) +12% • Stable EBIT-margin 2,8% (3,1) • Robust cash-flow 124,0 MSEK (78,1) 14 | | FINANCIAL UP
Slide 15: Order intake, Order Book & Revenues
Order intake & Order Book Q4 | MSEK YEAR ON YEAR | MSEK 400 396 394 2500 2500 2500 2098 390 2000 2000 2000 380 1597 1452 370 1500 1500 1500 360 1000 1000 1000 353 350 500 500 500 340 330 0 0 0 2016 2017 2018 2016 2017 2018 Order intake MSEK Order book MSEK Order intake MSEK Order book MSEK Revenues
Slide 16: Profitability, Operating result & Cash-flow
Profitability & Operating result Q4 | MSEK YEAR ON YEAR | MSEK 20 6 60 4,5 18 18 16,4 50,5 4 5 50 45,8 16 3,5 13 40,8 14 4 40 3 12 2,5 10 3 30 2 8 2 20 1,5 6 4 1 1 10 2 0,5 0 0 0 0 2016 2017 2018 2016 2017 2018 EBIT MSEK Gross Margin (%) EBIT MSEK Gross Margin (%) Cash-flow Q4 | MSEK YEAR ON YEAR |
Slide 17: Efficient Capital Management
Efficient Capital Management Net working capital end of quarter, MSEK| Average -33 MSEK 40 19 20 20 0 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 -20 DIVIDEND POLICY -24 -22 -24 -27 The goal is to deliver a dividend corresponding -40 to 50 percent of net profit given no n
Slide 18: Low capital requirement increasing returns
Low capital requirement increasing returns Strong return on capital… ROE ROE ROE ROE ROCE1 ROCE1 ROCE1 ROCE1 52% 34% 24% 27% 48% 36% 29% 33% SEKm SEKm 132 160 140 142 139 140 129 132 127 140 120 100 120 100 100 80 80 63 52 60 51 46 60 43 41 31 35 40 40 20 20 0 0 2015 2016 2017 2018 2015 2016 2017 20
Slide 19: Revenues per segment / EBIT per segment
Revenues per segment EBIT per segment Jan – Dec 2018 Jan – Dec 2018 3% 11% 18% 12% 70% 86% Construction Services Scaffolding Construction Services Scaffolding 2018 2017 2018 2017 SEK millions Jan-Dec Jan-Dec Change SEK millions Jan-Dec Jan-Dec Change Revenues Operating Profit Construction 1448,9 113
Slide 20: Stable order intake and backlog development
Stable order intake and backlog development Growing order intake and backlog… SEKm 2 100 Order intake, LTM 2 139 2 098 SEK 1, 900 1 801 1, 700 1 500 Order book 1,468 1,150 1,3831,334 1 384 1,3…1 615 1 616 2 010 1 500 1 4541 452 1 838 2 043 2,043m 1,2253 1 704 order book 1 616 1 621 1 601 1, 300 1,01
Slide 21: ByggPartner as an investment
ByggPartner as an investment CUSTOMER ORIENTED – EFFICIENT 1. OVERHEAD DEBT FREE – OPERATIONAL 2. EXCELLENCE 48% 52% (64%) Dalarna (36%) CORE CONSTRUCTION – ü Market leader 3. NO PROPERTY DEVELOPMENT 14% Uppsala (28%) 9% Stockholm STRONG CASH-FLOW – (10%) 25% 4. (25%) FINANCIAL MODEL PARTNERING STRA
Slide 22: 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 22 |
Slide 23: 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. 23 |
Slide 24: Appendix
Appendix 24 |
Slide 25: Key Ratios
KEY RATIOS S E K millions 2014 2015 2016 2017 2018 Revenues 1 020,70 1 125,60 1 246,70 1 316,8 1655,5 P roduction and operating costs -956,9 -1 037,40 -1 167,30 -1 244,7 -1 575,10 G ross profit 63,8 88,2 79,4 72,1 80,4 S elling and administrative ex penses 1) -25 -25,6 -28,8 -31,3 -34,6 O perating p
Slide 26: Ownership Structure
OWNERSHIP STRUCTURE Shareholders in ByggPartner i Dalarna Holding AB (publ) as of Dec 31, 2018 Surditet AB (Bo Olsson) 24,66% Länsförsäkringar Fondförvaltning AB 9,89% Priveq Investment Fund III KB 4,81% Nordea Livförsäkring Sverige AB 4,74% Försäkringsaktiebolaget Avanza Pension 4,19% LGT BANK LTD
Slide 27: 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 28: Our Board of Directors
OUR BOARD OF DIRECTORS Torsten Bo Olsson, Helena Skåntorp, Josephson, Director Director Chairman of the Board • Joined the Board of ByggPartner in 2011 • Founder of ByggPartner and a board • Joined the Board of ByggPartner in October • Other board assignments: Stiftelsen för Olle Engqvist member sin