Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q3 2018 Earnings Presentation
18 slides from Balco Group Ab's earnings presentation, Nov 16, 2018
Slide 1: Q3 report 1 July – 30 September 2018
Q3 report 1 July – 30 September 2018 16 November 2018
Slide 2: Q3 financial highlights
Q3 financial highlights Solid performance driven by strong development in Sweden and improvements in Denmark • Net sales increased 15.3% to SEK 237.7m (206.0), an increase of SEK 31.7m. Net sales • Underlying sales growth excluding IFRS 15 impact of 16.1% • Renovation accounted for 92.1% of sales an
Slide 3: Acquisition of TBO-Haglinds AB strengthens future growth and adds to earnings
Acquisition of TBO-Haglinds AB strengthens future growth and adds to earnings Acquisition rational - Stronger position in Balco’s largest market - Complements Balco’s product portfolio and customer offering 1 - TBO-Haglinds and Balco will continue to operate as two stand-alone entities with differen
Slide 4: Topline and earnings growth – Q3 and 9M
Topline and earnings growth – Q3 and 9M Q3 revenue Q3 operating profit SEK m SEK m 25 238 206 15.5% 105.7% 12 2017 Q3 2018 Q3 2017 Q3 2018 Q3 9M revenue 9M operating profit SEK m SEK m 79 754 705 6.9% 19.1% 66 2017 9M 2018 9M 2017 9M 2018 9M 4
Slide 5: Development order intake and order backlog – Q3 and 9M
Development order intake and order backlog – Q3 and 9M Order intake Q3 Order intake 9M SEK m SEK m 817 -14.6% 698 202 -37.0% 127 2017 Q3 2018 Q3 2017 9M 2018 9M Order backlog Q3 and 9M SEK m 1 218 1 203 -1.2% 2017 Q3 2018 Q3 5
Slide 6: Renovation segment continue to deliver 91% of order intake
Renovation segment continue to deliver 91% of order intake Accumulated order intake per segment Q3 2018 SEK 2018 Renovation 2018 New Built 700 000 000 600 000 000 Renovation segment accounted for 91% of total 500 000 000 order intake in Q3 2018 400 000 000 300 000 000 200 000 000 100 000 000 0 jan-1
Slide 7: Strong development within focus segment Renovation - Q3 and 9M
Strong development within focus segment Renovation - Q3 and 9M Revenue Q3 Operating profit Q3 SEK m SEK m 25 219 21 22.7% 24.7% 176 2017 Q3 2018 Q3 2017 Q3 2018 Q3 Revenue 9M Operating profit 9M SEK m SEK m 678 80 78 2.8% 12.7% 602 2017 9M 2018 9M 2017 9M 2018 9M 7
Slide 8: Revenue and earnings development – Impact from lower margins Q3 and 9M
Revenue and earnings development – Impact from lower margins Q3 and 9M Revenue Q3 Operating profit Q3 SEK m SEK m 31 -38.6% 19 0,20 0,20 2017 Q3 2018 Q3 2017 Q3 2018 Q3 Revenue 9M Operating profit 9M SEK m SEK m 104 -26.9% 4,6 76 n.m. 1,0 2017 9M 2018 9M 2017 9M 2018 9M 8
Slide 9: Strong financial position
Strong financial position Equity ratio, balance sheet and profitability strengthened Equity/asset ratio • Equity/asset ratio at 46.4% • Net debt/EBITDA at 0.9x by end of September 2018. Including the acquisition of Net debt/EBITDA TBO-Haglinds AB the ratio would have been 1.5x. • Profit before tax S
Slide 10: Financial targets
Financial targets BALCO FIGURES Q3 2018, R12 REVENUE GROWTH GROWTH “Balco shall achieve growth of 10% per year” 10.0% EBIT MARGIN PROFITABILITY “Balco shall achieve an operating profit margin (EBIT) of at least 13 percent. 11.2%1) NET DEBT/ Adj. EBITDA CAPITAL “Interest-bearing net debt shall not ex
Slide 11: Balco has an attractive financial profile – high revenue growth coupled with good profitability
Balco has an attractive financial profile – high revenue growth coupled with good profitability and stable cash conversion Order intake High revenue growth SEK m SEK m 1 038 989 1 114 802 1 066 990 994 639 568 616 2014 2015 2016 2017 2018 Q3 LTM 2014 2015 2016 2017 2018 Q3 LTM Strong profitability H
Slide 12: Q&A
Q&A 12
Slide 13: Financial appendix
Financial appendix 13
Slide 14: Consolidated income statement
Consolidated income statement Q3 Jan-Sep Oct-Sep Jan-Dec SEK M 2018 2017 2018 2017 2017/18 2017 Net sales 237,7 206,0 753,8 705,3 1 037,5 989,0 Production and project costs -181,5 -157,1 -566,5 -531,2 -776,4 -741,1 Gross profit 56,2 49,0 187,3 174,0 261,1 247,8 Sales costs -20,4 -18,2 -69,7 -63,3 -9
Slide 15: Consolidated balance sheet
Consolidated balance sheet 30-sep 30-sep 31-dec SEK M 2018 2017 2017 ASSETS Non-current assets Goodwill 372,4 371,9 372,0 Other intangible assets 12,6 11,2 11,4 Property, plant and equipment 146,1 114,6 130,3 Financial assets 4,2 4,0 4,1 Deferred tax assets 4,7 0,7 0,9 Total non-current assets 540,0
Slide 16: Consolidated cash flow statement
Consolidated cash flow statement Oct-Dec Jan-Dec MSEK 2020 2019 2020 2019 Operating activities Operating profit (EBIT) 2,8 37,7 115,4 140,4 Adjustment for non-cash items 29,1 9,8 38,7 36,9 Interest received -0,2 0,1 0,2 0,8 Interest paid -3,8 -2,9 -9,8 -8,6 Income tax paid -1,8 -4,4 -35,7 -34,5 Cash
Slide 17: Key ratios
Key ratios Q3 Jan-Sep Oct-Sep Jan-Dec SEK M 2018 2017 % 2018 2017 % 2017/18 2017 Net sales, SEK M 237,7 206,0 15% 753,8 705,3 7% 1 037,5 989,0 Order intake, SEK M 127,4 202,2 -37% 698,0 817,0 -15% 994,4 1 113,5 Order backlog, SEK M 1 202,7 1 218,2 -1% 1 202,7 1 218,2 -1% 1 202,7 1 238,4 Gross profit
Slide 18: Segments financials
Segments financials Q3 Jan-Sep Oct-Sep Jan-Dec Net sales, SEK M 2018 2017 2018 2017 2017/18 2017 Renovation 218,9 175,5 678,0 601,6 923,9 847,5 New Build 18,8 30,6 75,8 103,7 113,5 141,4 Group other 4,0 1,8 12,0 5,4 15,2 8,6 Elimination -4,0 -1,8 -12,0 -5,4 -15,2 -8,6 Total sales 237,7 206,0 753,8 7