Bellman Group Bjrn Andersson, Chairman of the Board This - - PowerPoint PPT Presentation

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

• Group founded in 2017
• Uppländska and Bellmans acquired 2017
• VSM acquired 2018
• Samgräv acquired 2019
• SÅCAB acquired 2020
• Revenue SEK 1,756 m
• EBITDA SEK 214 m
• 370 employees and 900 subcontractors
• Håkan Lind, CEO
• Roger Axelsson, CFO
• Björn Andersson, Chairman of the Board

Carries out rock and earth shafts on behalf of customers, delivering gravel and crushing material. Offers trucks and construction machinery with drivers. Operations in the Stockholm region Contracting company offering excavation services that require machines that are too large to drive on public

• roads. Uncovering rock, unloading tunnels or crushing

and shoveling rock masses. Operations nationwide in Sweden. The focus is rock blasting, rock drilling, cable sawing and rock cracking. Operations are carried out nationwide in Sweden. Offers construction machinery with drivers. Offers services in masses and material handling. Operates inert landfills and recycling facilities. Operations in Western Sweden. Offers vehicles and machinery for all types of shafting and transport services and operates a recycling facility south

• f Stockholm. Operations in the Stockholm region.

Bellman Group at a glance

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4 Founded 1972

2017

Founded 1972 Founded 1972 Founded 2011

2019

VSM joined the Bellman Group Samgräv joined the Bellman Group Expansion of offering expansion with larger machinery segment Permanent presence in the Gothenburg region and offering expansion with landfill and recycling of masses

2018 2020

Bellman Group’s history

Såcab joined the Bellman Group Access to own recycling facility and increased transport capacity in Stockholm Founded 1977 Bellman Group established Acquisition of Bellmans and Uppländska

• 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

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Acquisition of SÅCAB

We make it possible to build

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Blasting Excavation and machine work Transport of masses Landfill, recycling and mass handling

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Excavation services Wire sawing

Drilling and blasting

Rock drilling Rock blasting and hydraulic fracturing Transport- ation services Earthwork services Recycling Landfill Quarry

Transportation, excavation & earthwork Sales and handling of masses

Bellman Group offering overview

• 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

Strategy

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Focus on high volume and low risk Use of subcontractors limits risk

76% 24% Units owned by subcontractors Own units

Low risk model

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Large construction companies

Contract type Subcontractor Entrepreneur Project risk High Low

Financial summary & market data

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SEK m 20191) 20182) Net sales 1,755.5 1,090.6 EBITDA before items affecting comparability 214.1 104.6 EBITDA margin 12.2% 9.6% EBIT 119.1 51.3 Operating margin 6.8% 4.7%

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Key data

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.

50 100 150 200 250 300 350 400 450 500 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

SEK m

Net sales

10 20 30 40 50 60 70 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

SEK m

EBITDA1)

10 20 30 40 50 60 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

SEK m

Cash flow from

• perating activitíes

Quarterly development

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1) EBITDA before items affecting comparability

38% 35% 14% 14%

Sales per segment

VSM Bellmans Uppländska Samgräv 59% 16% 13% 11%

EBITDA before items affecting comparability per segment

VSM Bellmans Uppländska Samgräv

Distribution of sales and earnings 2019

13 Figures for VSM and Samgräv are included as if the acquisitions of the subsidiaries had taken place on 1 January 2018.

Sales per market

11% 57% 14% 18% Housing Infrastructure Commercial/Industry Other

Sales per geography

Sales distribution

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Gothenburg 18% Stockholm 67% Rest of Sweden 15%

Figures for VSM and Samgräv are included as if the acquisitions of the subsidiaries had taken place on 1 January 2018.

Infrastructure

20 40 60 80 100 120 2018 2019 2020 2021

SEK bn

50 100 150 200 250 300 2018 2019 2020 2021

SEK bn

CAGR

• 6.5%

20 40 60 80 100 120 140 160 180 200 2018 2019 2020 2021

SEK bn

CAGR +1.7%

Housing

Commercial & industrial property

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Strong underlying market

CAGR +4.6%

Stockholm area Total value approx. SEK 12.5 bn Gothenburg area Total value approx. SEK 3.5 bn

Coming infrastructure projects

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Blå linjen (subway) Väg 222 (bridge, road) Högdalsdepån Förbifart Stockholm (road) Roslagsbanan (railway) Citybanan (railway) Bälinge-Vårgårda (road)

Eriksberg (railway)

Tvärförbindelse Södertörn (road)

Marieholmsförbindelsen (tunnel, railway) Västlänken (tunnel, railway)

Mälarbanan (railway)

Long-term business

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Prioritized areas Core values

• Attractive employer
• Work environment
• Business ethics
• Long term profitability
• Reduce climate footprint

Sustainable business

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Quality Safety Competence

• All subsidiaries to be certified according

to ISO 9001, 14001 and 45001 by end of 2020

• Group sustainability targets set by

Board

• 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

Summary

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Bellman Group AB info@bellmangroup.se

Q&A