Bellman Group Björn Andersson, Chairman of the Board
This presentation was intended for the “Pareto Securities’ Annual Nordic Corporate Bond Conference” in Stockholm planned for 19 March 2020. The conference was cancelled, but please go through the slides and contact us if you want more information. Bellman Group
Bellman Group at a glance • Group founded in 2017 Carries out rock and earth shafts on behalf of customers, delivering gravel and crushing material. Offers trucks and • Uppländska and Bellmans acquired 2017 construction machinery with drivers. Operations in the Stockholm region • VSM acquired 2018 • Samgräv acquired 2019 Contracting company offering excavation services that • SÅCAB acquired 2020 require machines that are too large to drive on public roads. Uncovering rock, unloading tunnels or crushing and shoveling rock masses. Operations nationwide in • Revenue SEK 1,756 m Sweden. • EBITDA SEK 214 m The focus is rock blasting, rock drilling, cable sawing and • 370 employees and 900 subcontractors rock cracking. Operations are carried out nationwide in Sweden. Offers construction machinery with drivers. Offers • Håkan Lind, CEO services in masses and material handling. Operates inert landfills and recycling facilities. Operations in Western • Roger Axelsson, CFO Sweden. • Björn Andersson, Chairman of the Board Offers vehicles and machinery for all types of shafting and transport services and operates a recycling facility south of Stockholm. Operations in the Stockholm region. 3
Bellman Group’s history Founded Bellman Group VSM joined the Såcab joined the 2011 established Bellman Group Bellman Group Acquisition of Expansion of offering Access to own Bellmans and expansion with larger recycling facility and Founded Uppländska machinery segment increased transport 1972 capacity in Stockholm 2019 2020 2017 2018 Samgräv joined the Bellman Group Founded Permanent presence in 1972 the Gothenburg region and offering expansion Founded Founded with landfill and 1972 1977 recycling of masses 4
Acquisition of SÅCAB • Offers vehicles and machinery for all types of shafting and transport services, approx. 100 units • Owns and operates an inert landfill south of Stockholm • Net sales 2019 approx. SEK 185 m • Purchase price SEK 77 m, paid in cash • Transaction completed 6 March 2020 5
We make it possible to build Landfill, recycling Excavation and Transport of Blasting machine work masses and mass handling 6
Bellman Group offering overview Drilling and blasting Transportation, excavation & earthwork Sales and handling of masses Rock Rock Wire sawing Transport- Excavation Earthwork Quarry Recycling Landfill drilling blasting ation services services and services hydraulic fracturing 7
Strategy • Sub contractor to construction companies • Focus business to growth regions and market segments with underlying growth • Aim for low project risk and avoid low profitability “prestige projects” • Acquisitions to increase market footprint and broaden offering • Consolidation, synergies and efficiency improvements • Coordinating Group functions 8
Low risk model Focus on high volume and low risk Use of subcontractors limits risk 24% Entrepreneur Large construction companies Contract type Subcontractor 76% Low High Project risk Units owned by subcontractors Own units 9
Financial summary & market data 10
Key data SEK m 2019 1) 2018 2) Net sales 1,755.5 1,090.6 EBITDA before items affecting 214.1 104.6 comparability EBITDA margin 12.2% 9.6% EBIT 119.1 51.3 Operating margin 6.8% 4.7% 1) The 2019 data includes Uppländska, Bellmans and VSM for the period January - December and Samgräv for the period February - December. 2) The 2018 data includes Uppländska and Bellmans for the period January - December and VSM for the period August - December. 11
Quarterly development Net sales EBITDA 1) Cash flow from operating activitíes 500 70 60 450 60 400 50 50 350 40 300 40 SEK m SEK m SEK m 250 30 30 200 20 150 20 100 10 10 50 0 0 0 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2018 2019 2019 2019 2019 2018 2019 2019 2019 2019 12 1) EBITDA before items affecting comparability
Distribution of sales and earnings 2019 Sales per segment EBITDA before items affecting comparability per segment 14% 11% 38% 13% 14% 59% 16% 35% VSM Bellmans Uppländska Samgräv VSM Bellmans Uppländska Samgräv Figures for VSM and Samgräv are included as if the acquisitions of the subsidiaries had taken place on 1 January 2018. 13
Sales distribution Sales per geography Sales per market 11% 18% Rest of Sweden 15% 14% Stockholm 67% 57% Gothenburg 18% Housing Infrastructure Commercial/Industry Other Figures for VSM and Samgräv are included as if the acquisitions of the subsidiaries 14 had taken place on 1 January 2018.
Strong underlying market Infrastructure Housing Commercial & industrial property CAGR CAGR CAGR 120 300 200 +4.6% -6.5% +1.7% 180 100 250 160 140 80 200 120 SEK bn SEK bn SEK bn 60 150 100 80 40 100 60 40 20 50 20 0 0 0 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 15
Coming infrastructure projects Stockholm area Gothenburg area Total value approx. SEK 12.5 bn Total value approx. SEK 3.5 bn Roslagsbanan (railway) Bälinge-Vårgårda (road) Mälarbanan (railway) Citybanan (railway) Förbifart Stockholm (road) Blå linjen (subway) Marieholmsförbindelsen (tunnel, railway) Tvärförbindelse Södertörn (road) Västlänken (tunnel, railway) Väg 222 (bridge, road) Eriksberg (railway) Högdalsdepån 16
Long-term business 17
Sustainable business Prioritized areas Core values • Attractive employer • Work environment Quality • Business ethics • Long term profitability • Reduce climate footprint All subsidiaries to be certified according • to ISO 9001, 14001 and 45001 Competence Safety by end of 2020 • Group sustainability targets set by Board 18
Summary • Balanced business with a wide offering and geographical spread • Strong underlying market with infrastructure investments spanning a long time horizon • Low project risk as the revenue model is largely variable / volume based • High quality services • Strong brand trusted by customers 19
Q&A Bellman Group AB info@bellmangroup.se
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