Byggmax Group Ab · OMXSTO:BMAX
Byggmax Group Ab — Q3 2020 Earnings Presentation
21 slides from Byggmax Group Ab's earnings presentation, Oct 21, 2020
Slide 1: Q3 Report 2020
Q3 Report 2020 October 21, 2020 Mattias Ankarberg, CEO Helena Nathhorst, CFO 1
Slide 2: Q3 2020: Strong Byggmax in a strong market
Q3 2020: STRONG BYGGMAX IN A STRONG MARKET Net sales R12 7 500 ─ Health & safety remains top priority in covid-19 situation 5 000 ─ Net sales increased 21% to 2,200m (1,813m) o Like-for-like sales increased 20% 2 500 o Byggmax e-commerce grew 40% o Very good market growth 0 o Own initiatives add 10%
Slide 3: Key events
KEY EVENTS − Covid-19 situation – continued precautions to operate in a responsible way − Opened 3 new stores in Q3 2020 − Opened first new “Store 3.0” in Norway 3
Slide 4: Very good market
VERY GOOD MARKET Very good market growth & continued “stay home” effect ‒ Continued “stay home” effect during the covid-19 pandemic, although not as strong as in April and May ‒ Weather effects somewhat favorable in Q3 ‒ Swedish housing market transactions increased Q3 YTD ‒ We estimate that the Nor
Slide 5: Impact of covid-19 pandemic
IMPACT OF COVID-19 PANDEMIC Fortunate position ─ Stores on free standing properties, concept built on self service, much shopping done outdoors Continued precautions ─ Ensure health & safety of staff and customers, e.g., stricter hygiene routines, increased cleaning frequency, cash point covers, can
Slide 6: Driving profitable growth through proven initiatives
DRIVING PROFITABLE GROWTH THROUGH PROVEN INITIATIVES Store upgrades ─ ”Store 3.0” 30% (12%) of portfolio end Q3, generate 6% per store ─ Garden departments perform strongly (12% of portfolio) E-commerce ─ Byggmax segment online sales +40% Q3, +50% YTD Focused ─ Larger assortment, upgraded site, bett
Slide 7: Very strong online growth
VERY STRONG ONLINE GROWTH E-commerce continues to be a top priority Byggmax e-com sales +40% in Q3 2020 as last year’s investments continue to pay off ─ Larger assortment ─ Improved site ─ More delivery options “Order online, pick-up in store” emerging as a preferred consumer alternative ─ Growing 2
Slide 8: Expanding and upgrading our store portfolio
EXPANDING AND UPGRADING OUR STORE PORTFOLIO Byggmax store portfolio 167 169 Store 3.0 now 30% of portfolio 161 161 151 133 ─ 3 new stores in Q3 2020, of which 2 in Sweden 129 119 (Kiruna, Tierp) and 1 in Norway (Notodden) ─ Closed 1 store in Norway, in vicinity of new Oslo area 73 store opened Q2 (r
Slide 9: Now three upgraded formats
NOW THREE UPGRADED FORMATS Small town format Regular format Large format, incl. Garden Upgraded “3.0” version “Store 3.0” launched Q4 2018 Upgraded “3.0” version launched 2020 Upgrades ongoing launched 2020 Store 3.0 upgrades generate 6% sales increase per store vs. expected 3% 9
Slide 10: Upgraded large format – wider aisles & clear navigation
UPGRADED LARGE FORMAT – WIDER AISLES & CLEAR NAVIGATION 10
Slide 11: Clear departments & improved assortment
CLEAR DEPARTMENTS & IMPROVED ASSORTMENT Clear departments and improved communication Improved assortments within paint, flooring, tools, electrical installation, ventilation, bathroom, screws & fasteners, garden, and storage 11
Slide 12: Increased customer convenience
INCREASED CUSTOMER CONVENIENCE Paint tinting Machine rental Collect@store pick-up Floors and samples – take home or get delivered Self check-out, pay from car or regular assisted check out 12
Slide 13: Skånska Byggvaror continued very well
SKÅNSKA BYGGVAROR CONTINUED VERY WELL Growth initiatives continue to give strong results – Product development – Digital sales and marketing Order intake increased well Positive financial trend continued in Q3 2020 – Sustained sales momentum – Continued profitability improvement Focus remains on bui
Slide 14: Sales development Q3
SALES DEVELOPMENT Q3 Byggmax Skånska Byggvaror Total Share of Byggmax Group sales Q3 2020 90.2% 9.8% 100% Sales development Q3 2020 vs. Q3 2019 20.4% 31.2% 21.4% LFL New stores LFL LFL Currency 19.0% 3.8% 34.0% 20.4% -3.0% Exceptional market sales driven by: − Good market growth and continued “Stay
Slide 15: P&L Q3 2020 Byggmax Group
P&L Q3 2020 Byggmax Group ─ Net sales in Q3 increased by 21.4 percent to SEK 2,200m ─ Gross margin at 33.1 percent (32.2), impacted positively by Financial report - incl. IFRS 16 product mix and scale effects Q3 July-September ─ Comparable costs, i.e. personnel and other external costs excluding new
Slide 16: Cash flow & net debt
CASH FLOW & NET DEBT Netdebt excl. IFRS16 Cashflow Q 1 500 1500 1000 1 000 500 500 0 0 -500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2018 2019 2020 -500 Cash flow from operating activities amounted to SEK -311m for the third quarter, movements driven by: - Str
Slide 17: Dividend proposal for 2021
DIVIDEND PROPOSAL FOR 2021 2,75 2,50 Board of Directors recommend dividend of 2,40 2,14 SEK 2.75 per share for 2021 ─ Ambition to continue increase the dividend over time ─ Continue to strengthen the balance sheet ─ Allow further opportunities for expansion 0 0 and upgrades 2016 2017 2018 2019 2020
Slide 18: Positive market outlook
POSITIVE MARKET OUTLOOK Demand for home improvement boosted by “stay home” effect also in Q3 ‒ Consumers working from home ‒ “Staycation” instead of travelling Expect “stay home” to boost demand also in Q4 House transactions in Sweden increase 2020 YTD, i.e., return to growth following spring declin
Slide 19: Focus forward – continue profitable growth
FOCUS FORWARD – CONTINUE PROFITABLE GROWTH Store upgrades ─ Upgrade additional stores to Store 3.0, reach close to 40% of portfolio by end 2020 ─ Upgrade continues in 2021 E-commerce growth Focused ─ Continue increase assortment and improve customer experience growth Store expansion ─ 1 more Byggmax
Slide 20: Q&A
Q&A 20
Slide 21: Slide 21