Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Bygghemma Group — Q4 2018 Earnings Presentation
27 slides from Bhg Group Ab's earnings presentation, 2019
Slide 1: Record-breaking fourth quarter sales and EBITA as market conditions return to normal
Q4 2018 RECORD-BREAKING FOURTH QUARTER SALES AND EBITA AS MARKET CONDITIONS RETURN TO NORMAL Bygghemma Group First AB (publ) 1
Slide 2: Today's presenters
Q4 2018 Today’s presenters Mikael Olander Martin Edblad President and CEO CFO § Bygghemma Group since 2012 § Bygghemma Group since 2012 § CEO of CDON Group (now Qliro Group, publ) (2000-12) § CFO of CDON Group (now Qliro Group, publ) (2010-12) § Manager at Egmont (1995-00) § CFO of MTG’s online busi
Slide 3: Agenda
Q4 2018 Agenda § Results highlights § Business update § Financial update Q4 2018 ‒ Group ‒ DIY segment ‒ Home furnishing segment ‒ Cash flow and financial position § Summary § Q&A Bygghemma Group First AB (publ) 3
Slide 4: Agenda
Q4 2018 Agenda § Results highlights § Business update § Financial update Q4 2018 ‒ Group ‒ DIY segment ‒ Home furnishing segment ‒ Cash flow and financial position § Summary § Q&A Bygghemma Group First AB (publ) 4
Slide 5: Strong fourth quarter as market conditions normalise
Q4 2018 Strong fourth quarter as market conditions normalise Sales growth continues to outperform the Nordic Highest fourth quarter results ever, driven by a solid overall market development in both segments Net sales (SEKm) Organic growth Adjusted EBITA (SEKm) Adjusted EBITA margin 4 974 4.9% 4.7%
Slide 6: Agenda
Q4 2018 Agenda § Results highlights § Business update § Financial update Q4 2018 ‒ 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
Q4 2018 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% 4 974 3 956 CAGR +46% 2 604 Net sales Jan-Dec 2018 1 895 Denmark Other 12% 2% 1 096 Norway Home 6% furnishing 38% DIY 62% Finland 17% Sweden 2014 2015 2
Slide 8: Q4 highlights
Q4 2018 Q4 highlights Strengthened market § Number one European online retailer within home improvement position § Increased online market share in 2018 – now approaching 30 percent in the Nordics Record-breaking sales § 18.5% YoY growth driven by +18.3% organic growth in DIY and EBITA § Adjusted EB
Slide 9: M&A Q4 2018: Market leading position in Norway strengthened
M&A Q4 2018 Market leading position in Norway strengthened § On 29 January Bygghemma Group announced the acquisition of Designkupp AS (“vvskupp.no”), the leading online retailer in Norway primarily focused on bathroom products. § The acquisition will strengthen Bygghemma’s leading position in Norway
Slide 10: Agenda
Q4 2018 Agenda § Results highlights § Business update § Financial update Q4 2018 ‒ Group ‒ DIY segment ‒ Home furnishing segment ‒ Cash flow and financial position § Summary § Q&A Bygghemma Group First AB (publ) 10
Slide 11: Sales growth mainly driven by visits and AOV growth
Group Q4 2018 Sales growth mainly driven by visits and AOV growth Continued strong development in KPIs – average order value improving by 9% YoY FI, DK and NO continued to increase share of Group sales Net sales (SEKm) Organic growth +36% 23 799 32 349 # of visits (000’s) Q4 2017 Q4 2018 +18.5% 1 27
Slide 12: Improved gross margin and highest Q4 EBITA to date
Group Q4 2018 Improved gross margin and highest Q4 EBITA to date Gross margin improved mainly due to higher margins within Highest EBITA to date for the period however slightly lower the Home Furnishing segment margins due to unusually strong DIY margins last year Adjusted gross margin SEKm Adjusted
Slide 13: Strongly outgrew the market with >18% organic growth
DIY segment Q4 2018 Strongly outgrew the market with >18% organic growth DIY represented 60% of the Fourth quarter EBITA in 2017 unusually § Net sales increased by 18.9%, of which Group’s net sales in the fourth quarter strong – fewer invoicing days in 2018 organic growth accounted for 18.3% § Adjus
Slide 14: Returning to solid growth with highest EBITA ever
Home furnishing segment Q4 2018 Returning to solid growth with highest EBITA ever Home furnishing represented 40% of the § Net sales increased by 18.0 percent during Group’s net sales in the third quarter Highest EBITA and EBITA margin ever the fourth quarter, returning to solid growth figures after
Slide 15: Strong cash generation despite heavy investment year
Cash flow and financial position Q4 2018 Strong cash generation despite heavy investment year 80 (121) % cash conversion due to heavy investment year and fewer invoicing days in Dec compared with last year Liquidity driven by strong operating cash flow Jan-Dec 2018 (SEKm) Cash conversion SEKm 80% M&
Slide 16: Financial position remains solid
Cash flow and financial position Q4 2018 Financial position remains solid Overview of financial position § Net debt / EBITDA of 2.1x in line with the financial target of 1.5 – 2.5x § The Group’s unutilised credit facilities amounted to SEK 394.5 million SEKm 31 Dec 2018 at the end of the period, com
Slide 17: Agenda
Q4 2018 Agenda § Results highlights § Business update § Financial update Q4 2018 ‒ Group ‒ DIY segment ‒ Home furnishing segment ‒ Cash flow and financial position § Summary § Q&A Bygghemma Group First AB (publ) 17
Slide 18: Summary
Q4 2018 Summary § Strong fourth quarter result as market conditions returned to normal following challenging third quarter § Bygghemma continued to strengthen its position as the number one European online retailer within home improvement and is now approaching 30 percent online market share in the
Slide 19: Agenda
Q4 2018 Agenda § Results highlights § Business update § Financial update Q4 2018 ‒ Group ‒ DIY segment ‒ Home furnishing segment ‒ Cash flow and financial position § Summary § Q&A Bygghemma Group First AB (publ) 19
Slide 20: Appendix
Appendix Bygghemma First Holding AB 20
Slide 21: Condensed consolidated financial information
Q4 2018 Condensed consolidated financial information Q4 Jan-Dec SEKm (if not otherwise stated) 2018 2017 ?% 2018 2017 ?% Net Sales 1 279,7 1 079,7 18,5 4 973,7 3 955,5 25,7 Gross profit 298,2 234,2 27,3 1 047,5 820,0 27,7 Gross margin (%) 23,3 21,7 7,4 21,1 20,7 1,6 Adjusted gross profit* 302,3 245,
Slide 22: DIY segment
Q4 2018 DIY segment Q4 Jan-Dec SEKm (if not otherwise stated) 2018 2017 ?% 2018 2017 ?% Net Sales 767,5 645,3 18,9 3 073,8 2 342,2 31,2 Gross profit 160,5 139,3 15,2 612,1 468,4 30,7 Gross margin (%) 20,9 21,6 -3,1 19,9 20,0 -0,4 Adjusted gross profit 160,5 139,3 15,2 612,1 468,4 30,7 Adjusted gross
Slide 23: Home furnishing segment
Q4 2018 Home furnishing segment Q4 Jan-Dec SEKm (if not otherwise stated) 2018 2017 ?% 2018 2017 ?% Net Sales 516,2 437,6 18,0 1 918,8 1 628,9 17,8 Gross profit 137,9 96,0 43,6 437,2 354,0 23,5 Gross margin (%) 26,7 21,9 21,8 22,8 21,7 4,8 Adjusted gross profit 142,0 107,4 32,2 467,6 389,2 20,1 Adju
Slide 24: Q4 2018 P&L
Q4 2018 P&L Q4 Jan-Dec SEKm 2018 2017 2018 2017 Net Sales 1 279,7 1 079,7 4 973,7 3 955,5 Other operating income 0,5 2,4 -0,0 6,1 Total Net Sales 1 280,2 1 082,1 4 973,7 3 961,7 Cost of goods sold -981,6 -845,5 -3 926,2 -3 135,6 Personnel costs -114,9 -94,8 -420,4 -306,2 Other external costs and ope
Slide 25: Balance sheet
Q4 2018 Balance sheet 31 Dec SEKm 2018 2017 Non-current assets Goodwill 2 590,7 2 451,1 Other intangible fixed assets 1 225,3 1 166,3 Total intangible fixed assets 3 815,9 3 617,4 Buildings and land 11,3 10,8 Tangible fixed assets 22,9 21,4 Financial fixed assets 5,4 4,5 Deferred tax asset 6,0 15,5
Slide 26: Consolidated statement of cash flows
Q4 2018 Consolidated statement of cash flows Q4 Jan-Dec SEKm 2018 2017 2018 2017 Cash flow from operating activities before changes in 59,1 -3,4 96,0 67,4 working capital Changes in working capital -38,3 28,6 22,5 73,7 Cash flow from operations 20,7 25,2 118,5 141,1 Investments in operations -11,5 -
Slide 27: Reconciliation of non-IFRS metrics
Q4 2018 Reconciliation of non-IFRS metrics Q4 Jan-Dec SEKm 2018 2017 2018 2017 Operating income 44,1 5,2 87,2 91,5 Depreciation and amortization of acquisition related 9,6 9,3 37,5 32,1 intangible fixed assets EBITA 53,7 14,5 124,8 123,6 EBITA (%) 4,2 1,3 2,5 3,1 Acquisition-related costs 0,4 1,4 2,