Q1 INTERIM REPORT 2019 | MAY 2019 COMP MPAN ANY Y PR PRES ESENT ENTATION TION 1 |
Today’s presenters and agenda In brief ”COMMON SENSE FROM DALARNA” FREDRIK LEO, CEO HELENA BLOM, CFO & Joined in 2017 as EVP EVP Services & Construction, Scaffolding ByggPartner is a Swedish background from NCC Joined in 2018, Constructions. backgrund from ABB construction company with the CEO from August and SSAB. 2018. competence to serve its customers Q1 INTERIM REPORT 2019 throughout the entire construction ▪ Business Update process, creating value through ▪ Financial Update personal commitment, sound ▪ Q&A expertise and common sense. 2 |
Fredrik Leo, CEO BU BUSINES INESS S UPD PDATE 3 |
Jan-Mar 2019 in summary • Order intake 325 MSEK (605) - 44% (RTM +25%) Orderbook 1 877 MSEK (1 838) +2% • Sales Growth 491,5 MSEK (367,3) +34% • • Increased operating profit EBIT 17,0 MSEK (12,0) +42% • Increased EBIT-margin 3,5% (3,3) • Cash-flow -13,7 MSEK (7,3) 4 | | BUSINESS UPDATE
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 social, commercial and rental properties. We expect the competition to increase in our segments. ▪ Business as usual in Stockholm, Dalarna and Mälardalen. One exception, we experience a lower level of activity in Uppsala. 5 | | BUSINESS UPDATE
Core construction - no property development 1.8 .877 MSE 7 MSEK ▪ Order book analysis ▪ High activity in social properties ▪ Focus on partnering projects Projects cts Cust stome mers Partnerin Par ering project ect Arboga Kommun Social Properties 51% Rodret Bostads AB Housing 39% (BRF 5%) 57% Sala Kommun Commercial incl. service and HEFAB renovation 10% Svenska Bostäder Falu Kommun Geograph phy Gamla Byn AB Dalarna 40% LudvikaHem Stockholm/Uppsala/ Micasa 43% Mälardalen 60% Danviks Hospital Partnering Regular contracts Lundbergs Specialfastigheter 6 | | BUSINESS UPDATE
Core Construction – Projects 50-300 MSEK Ongoing oing projects cts in Q1 | exampl ples es Arboga Kommun – Pre school Arboga Kommun – Care homes Rodret Bostads AB – Student housing Sala Kommun – Sport facility Hefab – Housing Sala Kommun – School Svenska Bostäder – Housing Fastighets AB L E Lundberg – Social properties Micasa – Social property Stiftelsen Danvikshem – Social properties New orders s in Q1 | exampl ples es Gamla Byn Avesta | Housing News in Q2 | so fa far Falu Kommun – Care homes Surahammars Kommun – Care homes EcoDataCenter - Commercial 7 | | BUSINESS UPDATE
Turning the order book into profitable growth Q1 ▪ Picking the right projects Q2 2019 ▪ Improving our core processes ▪ Developing our organization ▪ Strengthen project steering – educational program ”Partner”: training in contract law and forecasting projects Continued focus on profitability throughout the entire ▪ organization Q1 2019 ▪ Strengthen project steering – start-up of the educational program ”Partner”; training in cost-planning and timetable for production ▪ Re-organization Uppsala & Mälardalen Q4 2018 Continued development of our Partnering concept ▪ Strengthen project steering – decision to implement educational program ”Partner” ▪ ▪ Professionalizing of procurement of purchases ▪ Close dialogue with our customers – the sustainability day ▪ New operational support group focused on processes, quality and risk Q3 2018 Increased focus on Scaffolding, merged Avesta and Hedemora in Construction services ▪ ▪ Increased awareness, frequency and accountability within the organization Increased focus on project management & business skills ▪ ▪ New organization in Stockholm, new procurement manager – 80% of business is outsourced ▪ New executive management – accountability Construction Services & Scaffholding 8 | | BUSINESS UPDATE
Performance Q1 2019 vs Mid-Term Financial Targets STRATEGIES EGIES FOR INCREASED ASED AND SUSTAI AINABL NABLE E MID-TER ERM M TARGETS ETS PERFOR ORMANCE NCE PROFITABIL ABILIT ITY SALES GROWTH SALES GROWTH 10 10-15 15 % 34 % 34 Organic growth in focus markets MID-TERM RM TARGET Q1 2019 EBIT MARGIN EBIT MARGIN 5 % 3,5 % Strengthen partnering position MID-TERM RM TARGET Q1 2019 OVER OVER 50 % 50 50 % 50 Increased focus on project management TARGET PAYOUT RATIO 2018 PAYOUT RATIO 2018 9 | | BUSINESS UPDATE
Our financial track record – Revenues & EBIT-margin ▪ Strong order intake ▪ Record high order book is driving revenues ▪ Stabilization of EBIT-margin MSEK 2 000 10% 9% 1 780 1 800 1 655 8% 7% 7% 6% 1 600 5% 6% 5% 1 317 1 400 1,294 1,126 1 247 1,168 3% 4% 3% 1,045 3% 1 200 871 5% 4% 4% 1 000 2% 695 949 2% 3% 800 0% 601 561 789 600 474 -3% 418 -2% 400 -5% -4% 200 IFRS 0 -6% 2003/ 2004/ 2005/ 2006/ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM 2004² 2005² 2006² 2007 2019 (18mth)³ Revenue EBIT margin 10 | Source: ByggPartner’s audited financial and annual reports and reviewed interim reports | BUSINESS UPDATE Note: (2) Financial year from July 1 – June 30; (3) Financial year includes 18 months, from July 1, 2006 – December 31, 2007
Stable order intake and backlog development Growing order intake and backlog … SEK MSEK 2 1392 098 2 300 1,877 m Order intake, LTM¹ 2 100 1 818 1 801 2 2052 098 1 900 Order book¹ 1,3841 6151 5001 4541 452 1 616 2 010 1 700 1,468 1 877 order book 1 838 1,383 1,3341 384 1 500 1,150 1 6161 7041 6211 601 1,225 3 1 300 1,018 1,094 1,086 1,4041,4041,465 1 100 877 873 1,2921,286 1,1151,213 735 900 1,0881,1301,006 Q4 2013 – Q1 2019 700 646 794 770 500 14 % Order intake CAGR Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 21 % 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 Order book … provides stable revenue growth over time MSEK 2 000 Revenue, LTM² 1 780 1 800 1 656 1 4951 555 14% CAGR 1 600 950 1,0451,0621,0901,0691,1011,1761,2231 2651,2471 2121 2001 2381 3171 394 1 400 Q4 2013 – Q1 2019 1 200 927 889 1 000 871 800 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS 11 | Source: ByggPartner’s audited annual reports 2013-2015 adjusted for comparison reporting principles and disclosed interim and year-end reports 2016- 2018 (including | BUSINESS UPDATE auditors reviews and audited annual report for 2016 and 2017.
Scaffholdings ▪ Stable revenues in Q1 ▪ Customer loss of 0,5 MSEK in Q1 ▪ Focus on continued growth and profitability ▪ Digitalization for increased efficiency in material management ▪ Working environment is a top priority 12 | | BUSINESS UPDATE
Construction services ▪ Strong quarter, increased revenues and all time high operating profit, EBIT ▪ Focus on increased profitability ▪ Avesta and Hedemora merged as Södra Dalarna 13 | | BUSINESS UPDATE
Helena Blom, CFO & EVP FI FINAN ANCIAL CIAL UPD PDATE 14 |
Order intake & Order Book Q1 | MSEK YEAR ON YEAR | MSEK 700 2000 2500 2500 605 2098 1800 600 1600 2000 1818 2000 500 1453 1597 441 1400 423 1200 1500 1500 400 325 1000 300 800 1000 1000 600 200 400 500 500 100 200 0 0 0 0 2016 2017 2018 2019 2016 2017 2018 2019 LTM Order intake MSEK Order book MSEK Order intake MSEK Order book MSEK Revenues Q1 | MSEK YEAR ON YEAR | MSEK 600 2000 1780 1800 1655 550 1600 492 500 1317 1400 1247 450 1200 400 1000 367 800 350 325 600 290 300 400 250 200 200 0 2016 2017 2018 2019 2016 2017 2018 2019 LTM 15 | | FINANCIAL UPDATE
Profitability & Operating result YEAR ON YEAR | MSEK Q1 | MSEK 17 18 6 60 4,5 16,4 50,8 50,5 16 4 5 50 45,8 14 3,5 40,8 12 12 4 40 3 10 2,5 8,7 3 30 8 2 6 2 20 1,5 4 1 ▪ Cash-flow depends on 1 10 2 0,5 project portfolio, both 0 0 0 0 2016 2017 2018 2019 2016 2017 2018 2019 LTM character and phase EBIT MSEK Gross Margin (%) EBIT MSEK Gross Margin (%) ▪ Strong cash of 134,7 MSEK Cash-flow (March 31 st ) ▪ Continued strong internal Q1 | MSEK YEAR ON YEAR | MSEK focus on cash-flow 10 140 7 124 5 120 3 1 103 100 0 2016 2017 2018 2019 LTM 78 80 -5 60 -10 40 27 -15 20 -14 0 -20 2016 2017 2018 2019 LTM 16 | | FINANCIAL UPDATE
Revenues per segment EBIT per segment Jan – Mar 2019 Jan – Mar 2019 2% 0% 9% 21% 79% 89% Construction Services Scaffolding Construction Services Scaffolding 2019 2019 2019 2019 SEK millions Jan-Mar Jan-Mar Change SEK millions Jan-Mar Jan-Mar Change Revenues Operating Profit Construction 439,1 316,5 39% Construction 13,5 12,8 6% Construction Services 46,4 43,9 6% Construction Services 3,6 1,1 227% Scaffolding 10,4 10,2 2% Scaffolding 0 0,6 -100% 17 | | FINANCIAL UPDATE
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