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CO COMPAN ANY PRESENTATIO ION 1 | Todays presenters and agenda - - PowerPoint PPT Presentation

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Q2 INTERIM REPORT 2019 | AUGUST 2019 CO COMPAN ANY PRESENTATIO ION 1 | Todays presenters and agenda In brief COMMON SENSE FROM DALARNA FREDRIK LEO, CEO HELENA BLOM, CFO & Joined in 2017 as EVP EVP Services &

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CO COMPAN ANY PRESENTATIO ION

Q2 INTERIM REPORT 2019 | AUGUST 2019

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Today’s presenters and agenda

In brief

”COMMON SENSE FROM DALARNA” ByggPartner is a Swedish construction company with the competence to serve its customers throughout the entire construction process, creating value through personal commitment, sound expertise and common sense.

HELENA BLOM, CFO & EVP Services & Scaffolding Joined in 2018, backgrund from ABB and SSAB. FREDRIK LEO, CEO Joined in 2017 as EVP Construction, background from NCC Constructions. CEO from August 2018.

Q2 INTERIM REPORT 2019 § Business Update § Financial Update § Q&A

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BUSIN INESS UPD UPDATE

Fredrik Leo, CEO

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Apr-Jun 2019 in summary

  • Order intake SEK m 484 (593) -19%
  • Orderbook SEK m 1 860 (2 010) -8%
  • Sales Growth SEK m 501.4 (421.5) +19%
  • Increased operating profit EBIT SEK m 16.4 (11.4) +43%
  • Increased EBIT-margin 3.3% (2.7) +22%
  • Cash-flow SEK m 59.8 (33.3)

| BUSINESS UPDATE

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Well diversified project- and customer mix

SEK m m 1 1.8 .860

Partnering Regular contracts

Ge Geogr graphy

43% 57% § Core construction – no property development § Order book analysis

| BUSINESS UPDATE

Project m mix Pa Partneri ring pr proje ject

Social properties Rental housing Housing Commercial properties incl. Service Dalarna Stockholm/Mälardalen

34% 66% 61% 30% 3% 6%

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Core Construction – Projects SEK m 50-300

On Ongoi

  • ing pr

proje

  • jects in Q

Q2 | | ex examples 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 Gamla Byn Avesta | Social properties New o

  • rders i

in Q Q2 | | ex examples Falu Kommun – Care homes Surahammars Kommun – Care homes EcoDataCenter - Commercial Ne News ws in Q Q3 | so f far Partneringavtal samhällsfastigheter – Gävle Kommun

| BUSINESS UPDATE

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Our ambition is to be the leading provider of partnering in Sweden, in our niche, i.e. construction projects SEK m 50-300.

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Added values are created in the direct contact between our employees, and the customer. We are convinced that increased collaboration, partnering, is the future way of working for sustainable community building.

| BUSINESS UPDATE

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§

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.

No changes in our view of our market

| BUSINESS UPDATE

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Turning the order book into profitable growth

§ Increased awareness, frequency and accountability within the new organization and management § Increased focus on project management & business skills – decision to implement educational program ”Partner”. § Professionalizing of procurement of purchases § Close dialogue with our customers – the sustainability day

§ Picking the right projects § Improving our core processes § Developing our organization

2018

| BUSINESS UPDATE

Q1

Q1 2019

§ Strengthen project steering – start-up of the educational program ”Partner” - training in cost-planning and timetable for production § Re-organization Uppsala & Mälardalen § Continued development of our Partnering concept § Strengthen project steering – educational program ”Partner”- training in contract law and forecasting projects § Continued focus on profitability throughout the entire

  • rganization

Q2 2019 Q3 2019

§ Continued focus on project mix and profitability throughout the entire organization § Continued to strengthen project steering – educational program ”Partner”

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Performance Q2 2019 vs Mid-Term Financial Targets

Strengthen partnering position Organic growth in focus markets Increased focus on project management

EBIT IT M MARGIN IN

5%

MID ID-TERM T TARGET SALES G GROWTH

10 10-15 15%

MID ID-TERM T TARGET OV OVER

50 50%

TARGET P PAYOUT R RATIO IO EBIT IT M MARGIN IN

3,3 ,3%

Q2 2 2019 SALES G GROWTH

19 19%

Q2 2 2019 OV OVER

50 50%

2018 2018 PAYOUT R RATIO IO

| BUSINESS UPDATE

MID ID-TERM T TARGETS PE PERFORMAN ANCE STRATEGIE IES F FOR IN INCREASED A AND S SUSTAIN INABLE PROFIT ITABIL ILIT ITY

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Source: ByggPartner’s audited financial and annual reports and reviewed interim reports Note: (2) Financial year from July 1–June 30; (3) Financial year includes 18 months, from July 1, 2006–December 31, 2007

IFRS

MSEK

| BUSINESS UPDATE

Our financial track record – Revenues & EBIT-margin

§ Strong order intake § Order book is driving revenues § Stabilization of EBIT-margin

474 418 561 949 789 601 695 1,294 1,168 871 1,045 1,126 1 247 1 317 1 655 1 860 6% 5% 7% 7% 5% 9% 2%

  • 3%
  • 5%

3% 4% 5% 4% 3% 3% 3%

  • 6%
  • 4%
  • 2%

0% 2% 4% 6% 8% 10% 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000

2003/ 2004² 2004/ 2005² 2005/ 2006² 2006/ 2007 (18mth)³ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM 2019

Revenue EBIT margin

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Stable order intake and backlog development

Growing order intake and backlog… … provides stable revenue growth over time

SEK 1,860 m

  • rder book

14% CAGR

Q4 2013 – Q2 2019

Source: ByggPartner’s audited annual reports 2013-2015 adjusted for comparison reporting principles and disclosed interim and year-end reports 2016- 2018 (including auditors reviews and audited annual report for 2016 and 2017.

Q4 2013 – Q2 2019

CAGR

Order intake Order book

12 % 20 %

| BUSINESS UPDATE

871 889 927 950 1,0451,0621,0901,0691,1011,1761,2231 2651,2471 2121 2001 2381 3171 394 1 4951 5551 656 1 7801 860 800 1 000 1 200 1 400 1 600 1 800 2 000 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 IFRS Q4 2016 IFRS Q1 2017 IFRS Q2 2017 IFRS Q3 2017 IFRS Q4 2017 IFRS Q1 2018 IFRS Q2 2018 IFRS Q3 2018 IFRS Q4 2018 IFRS Q1 2019 IFRS Q2 2019 IFRS Revenue, LTM²

MSEK

877 873 735 1,018 1,2253 1,094 1,468 1,150 1,086 1,3831,3341 384 1,3841 6151 5001 4541 452 1 616 1 801 2 1392 098 1 8181 709 646 794 770 1,0881,1301,006 1,2921,286 1,1151,213 1,4041,4041,465 1 6161 7041 6211 601 1 838 2 010 2 2052 098 1 8771 860 500 700 900 1 100 1 300 1 500 1 700 1 900 2 100 2 300 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Order intake, LTM¹ Order book¹

MSEK

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Construction services | Q2

§ Continued strong performance in Q2 § Sales SEK m 53.6 (44.7) § EBIT SEK m 2.9 (1.2) § Service contracts two years incl. index and extension

| BUSINESS UPDATE

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Scaffholdings | Q2

| BUSINESS UPDATE

§ Sales SEK m 13.2 (13.8) § EBIT SEK m 1.8 (2.2) § Focus on continued growth and profitability § Digitalization for increased efficiency in material management § Working environment is a top priority

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FIN INANCIA IAL UPD UPDATE

Helena Blom, CFO & EVP

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332 321 421 501 200 250 300 350 400 450 500 550 600 2016 2017 2018 2019 1247 1317 1655 1860 200 400 600 800 1000 1200 1400 1600 1800 2000 2016 2017 2018 2019 LTM

Q2 | MSEK YEAR ON YEAR | MSEK Q2 | MSEK YEAR ON YEAR | MSEK

523 408 593 484 500 1000 1500 2000 2500 100 200 300 400 500 600 700 2016 2017 2018 2019 Order intake MSEK Order book MSEK 1597 1453 2098 1709 500 1000 1500 2000 2500 500 1000 1500 2000 2500 2016 2017 2018 2019 LTM Order intake MSEK Order book MSEK

Order Intake & Order Book Revenues

| FINANCIAL UPDATE

657 611 789 993 300 400 500 600 700 800 900 1000 2016 2017 2018 2019

ACC | MSEK

946 849 1198 810 500 1000 1500 2000 2500 200 400 600 800 1000 1200 1400 2016 2017 2018 2019 Order intake MSEK Order book MSEK

ACC | MSEK

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Q2 | MSEK YEAR ON YEAR | MSEK Q2 | MSEK YEAR ON YEAR | MSEK

9,6 10,4 11,4 16,4 0,5 1 1,5 2 2,5 3 3,5 2 4 6 8 10 12 14 16 18 2016 2017 2018 2019 EBIT MSEK Gross Margin (%) 50,5 40,8 45,8 55,8 0,5 1 1,5 2 2,5 3 3,5 4 4,5 10 20 30 40 50 60 2016 2017 2018 2019 LTM EBIT MSEK Gross Margin (%)

Profitability & Operating result Cash-flow

  • 25
52 33 60
  • 30
  • 20
  • 10
10 20 30 40 50 60 70 2016 2017 2018 2019 27 78 124 130 20 40 60 80 100 120 140 2016 2017 2018 2019 LTM

| FINANCIAL UPDATE

  • 23
53 41 46
  • 30
  • 20
  • 10
10 20 30 40 50 60 2016 2017 2018 2019

ACC | MSEK

26 19,1 23,4 33,4 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5 10 15 20 25 30 35 40 2016 2017 2018 2019 EBIT MSEK Gross Margin (%)

ACC | MSEK

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88% 10% 2% Construction Services Scaffolding 75% 20% 5% Construction Services Scaffolding

Revenues per segment Jan – Jun 2019 EBIT per segment Jan – Jun 2019

SEK millions 2019 Jan-Jun 2018 Jan-Jun Change Revenues Construction 878,8 685,5 28% Construction Services 100,0 88,5 13% Scaffolding 23,6 24,0

  • 2%

SEK millions 2019 Jan-Jun 2018 Jan-Jun Change Operating Profit Construction 25,3 18,3 38% Construction Services 6,6 2,3 190% Scaffolding 1,8 2,9

  • 38%

| FINANCIAL UPDATE

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Q2 | MSEK YEAR ON YEAR | MSEK

0,6 0,7 0,7 1,1 0,0 0,2 0,4 0,6 0,8 1,0 1,2 2016 2017 2018 2019 EPS SEK 3,53 2,57 2,88 3,54 0,5 1 1,5 2 2,5 3 3,5 4 2016 2017 2018 2019 LTM 2016 2017 2018 2019 LTM

Efficient Capital Management

DIVIDEND POLICY The goal is to deliver a dividend corresponding to 50 percent of net profit given no need to finance further investments in operations.

19 20
  • 24
  • 22
  • 24
  • 27
  • 51
  • 77
  • 111
  • 85
  • 128
  • 140
  • 120
  • 100
  • 80
  • 60
  • 40
  • 20
20 40 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 NWC

Net working capital end of quarter, MSEK| Average -46 MSEK

Earnings per share

| FINANCIAL UPDATE

2,5 2,5 2,75 2,35 2,4 2,45 2,5 2,55 2,6 2,65 2,7 2,75 2,8 2016 2017 2018 DIVIDEND SEK

DIVIDEND YEAR ON YEAR | SEK

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Low capital requirement increasing returns

127 129 132 132 43 31 35 43 20 40 60 80 100 120 140 2016 2017 2018 2019 LTM Equity (avg) Net Income SEKm

Strong return on capital…

140 142 139 144 51 41 46 56 20 40 60 80 100 120 140 160 2016 2017 2018 2019 LTM Capital Employed² (avg) EBIT SEKm

34%

ROE

Note: (1 (1) ROCE defined as EBIT/average of period’s opening and closing capital employed; (2 (2) Defined as equity plus interest bearing liabilities

26%

ROE

36%

ROCE1

29%

ROCE1

24%

ROE

33%

ROCE1

32%

ROE

39%

ROCE1

| FINANCIAL UPDATE

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ByggPartner as an investment

CO CORE CO CONSTRUCT CTION – NI NICHE HE SEK SEKm 50 50-300 300 NO PROPERTY DEVELOPMENT SU SUSTAIN INABL BLE BU E BUSIN SINESS M ESS MODEL EL – PARTNERING STRATEGY DE DEBT FR FREE – OPERATIONAL EXCELLENCE ST STRONG CASH-FL FLOW – FINANCIAL MODEL CU CUSTOMER ORIENTED – EFFICIENT OVERHEAD

1. 1. 2. 2. 3. 3. 4. 4. 5. 5.

St Stockholm lm Mä Mäla lardale len Da Dalarna

34%

(4 (42%) %)

66% 66%

(5 (58%) %)

ü Market leader

31 31%

(2 (24%) %)

35% 35%

(3 (34%) %) | BUSINESS UPDATE

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Q&A

Fredrik Leo CEO

Fredrik.leo@byggpartner.se +4676 677 66 10

Helena Blom CFO & EVP

helena.blom@byggpartner.se +4670 658 50 90
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In brief

”COMMON S SENSE F FROM D DALARNA”

ByggPartner is a Swedish construction company with the competence to serve its customers throughout the entire construction process, creating value through personal commitment, sound expertise and common sense.

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Appendix

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KEY RATIOS

SEK millions 2014 2015 2016 2017 2018 2019-06 Revenues 1 020,7 1 125,6 1 246,7 1 316,8 1 655,5 992,9 Production and operating costs

  • 956,9 -1 037,4 -1 167,3 -1 244,7
  • 1 575
  • 940,4

Gross profit 63,8 88,2 79,4 72,1 80,4 52,4 Selling and administrative expenses1)

  • 25,0
  • 25,6
  • 28,8
  • 31,3
  • 34,6
  • 19,0

Operating profit (EBIT) 38,8 62,6 50,6 40,8 45,8 33,4 Operating margin 3,8% 5,6% 4,1% 3,1% 2,8% 3,4% Profit before taxes (EBT) 40,3 61,8 50,2 40,3 45,4 33,1 Net profit 31,8 51,8 42,7 31,1 34,9 25,9 Order intake 1 225,0 1 086,0 1 597,0 1 452,5 2 097,9 809,5 Order book 1 130,0 1 114,7 1 465,1 1 600,8 2 043,2 1 859,9 Net Working Capital, MSEK 19,9

  • 7,1

18,9

  • 24,1
  • 111,4
  • 127,7

Capital Employed, MSEK 126,5 136,9 144,0 139,1 139,4 143,3 Equity, MSEK 74,1 125,8 128,5 129,3 133,9 126,3 Return on equity (ROE) 54,7% 51,8% 33,6% 24,1% 26,5% e.t. Return on Capital Employed (ROCE) 34,8% 47,6% 36,0% 36,1% 33,1% e.t. Total assets 344,0 360,9 354,4 405,8 527,8 513,0 Fixed assets 126,7 111,1 113,9 107,6 106,1 118,8

  • f which goodwill

88,0 88,0 88,0 88,0 88,0 88,0 Number of employees 341,0 354,0 377,0 428,0 446,0 448

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OWNERSHIP STRUCTURE

Sh Sharehol

  • lders in B

ByggPartner i i D Dalarna H Holding A AB ( (pu publ) a as of

  • f

June 3 30, 2 , 2019

Surditet AB (Bo Olsson) 24,66% Länsförsäkringar Fondförvaltning AB 13,40% Nordea Livförsäkring Sverige AB 4,74% Försäkringsaktiebolaget Avanza Pension 4,07% Aktiebolaget Pom Sandelius 3,76% LGT Bank LTD 3,13% Tore Hallersbo 2,85% Dalakvartetten Huskonsult AB 1,92% Lirfo Invest AB 1,92% Sjulsarvet Invest AB 1,92% Övriga 37,63%

Source: Euroclear data
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EXECUTIV IVE M MANAGEMENT T TEAM

Helena Blom, CFO & EVP Services & Scaffholding

  • Joined ByggPartner in 2018
  • ~15 years experience from ABB.
  • M. Sc. Engineer Uppsala University and
Bachelor Business Administration, Dalarna University

Ann-Louise Holmbom, HR Manager

  • Joined ByggPartner in 2010
  • Previous experience from Stora Enso, ManPower
Leksands Sparbank and Falun municipality
  • Social sciences, Dalarna University
  • Johan Karlsson, Business Manager Dalarna
  • Mattias Eriksson, Business Manager Mälardalen
  • Jörgen Munk, Business Manager Stockholm
  • Alf Lilletofte, Business Manager Service

Fredrik Leo, CEO

  • Joined ByggPartner in 2017 as EVP Construction,
appointed CEO in 2018
  • ~18 years construction experience
  • Former head of NCC Building, several senior leading
positions within NCC since 1998
  • Education from Dalarna University

Extended operational management team

  • Johan Thurin, Business Manager JUF
  • Björn Gruvsjö, Procurement and Calculation

Manager

  • Patrik Fredin, Business Controller
  • Christer Käll, Operational Support
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Torsten Josephson, Director

  • Elected to join the Board of ByggPartner in
November 2016
  • Other board assignments: Bengt Dahlgren
Göteborg AB, Norvatek Invest AB, Sprängteknik I Norden AB, Envac AB, Sigicom AB, Con-Form AS, Tore Hallersbo AB, AcobaiFLUX AB
  • Independent vs the company, its management
and major shareholders
  • 345 471 + 34 482 shares

Elisabeth Norman, Director

  • Elected to join the Board of ByggPartner in May 2018
  • Other board assignments: Amasten Fastighets AB,
Chairman Nivika Fastigheter AB, board member Örndalen Holding AB, Cibus AB, Elevenate AB and her
  • wn company Salnecke Slott AB.
  • Independent vs the company, its management and
major shareholders.

Bo Olsson, Director

  • Founder of ByggPartner and a board
member since 1992
  • Other board assignments: Vidbynäs
Golfanläggning AB
  • Prior positions: CEO of ByggPartner
1992-2008
  • 2 985 949 shares

Helena Skåntorp, Director

  • Joined the Board of ByggPartner in October
2016
  • CEO of Skåntorp&Co AB, other board
assignments: Mekonomen AB, Storyfire Skåntorp&Co AB
  • Independent vs the company, its management
and major shareholders
  • 10 000 shares

Tore Hallersbo, Chairman of the Board

  • Joined the Board of ByggPartner in 2011
  • Other board assignments: Stiftelsen för Olle Engqvist
Priset, Samhällsbyggarna Sverige AB, Clarence Morberg Fastigheter AB, Berg & Gren Arkitekter AB, Aktea Energi AB
  • Independent vs the company, its management and major
shareholders
  • 51 300 shares

OUR B BOARD O OF D DIR IRECTORS

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Ongoing projects

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Project for EcoDataCenter in Falun

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Projects with Arboga Kommun

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Project Vallaskolan, Sala Kommun

CO2 savings in project Vallaskolan correspond to appr. 40 tours in a mid-sized car around the globe

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Project for Fastighets AB L E Lundberg