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

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

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Q4 & YEAR-END 2018 | FEBRUARY 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

Q4 & YEAR-END 2018 | FEBRUARY 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.

Q4 & YEAR-END 2018 § Business Update § Financial Update § Q&A

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Snapshot of ByggPartner

CO CORE CO CONSTRUCT CTION – NO PROPERTY DEVELOPMENT PA PARTNERING STRATEGY – SUSTAINABLE BUSINESS MODEL 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 Up Uppsala Mä Mäla lardale len Da Dalarna in incl. . Ar Arboga ga

52%

(3 (36%) %)

48% 48%

(6 (64%) %)

ü Market leader

14 14%

(2 (28%) %)

25% 25%

(2 (25%) %)

9% 9%

(1 (10%) %) | 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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Core Construction – Projects 30-300 MSEK

Ongoing projects in Q4 | examples Arboga Kommun – Pre school Arboga Kommun – Care homes Rodret Bostads AB – Student housing Sala Kommun – Sport facility Hefab – Housing Sala Kommun – School Stockholms hem – Housing Fastighets AB L E Lundberg – Social properties Micasa – Social property Stiftelsen Danvikshem – Social properties New orders in Q4 | examples Specialfastigheter – Commercial and social properties Gamla Byn AB – Commercial and social properties Stora Tunbyggen AB – Housing Ludvika Lasarett – Social property

| BUSINESS UPDATE

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Q4 & Year-End 2018 | Key Ratios

§ It was a stable quarter § Continued strong cash generation - the board propose an increased dividend § Our partnering strategy provides the right conditions for sustainable construction

| BUSINESS UPDATE

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Performance 2018 vs Mid-Term Financial Targets

Strengthen partnering position

  • Continue to build on strong position and reputation in partnering
  • Develop our partnering model, organization & core processes

Organic growth in focus markets

  • Leverage market leading position in Dalarna, grow in Stockholm, Uppsala and Mälardalen
  • Convert our orderbook into profitable growth
  • (Opportunistic acquisitions)
  • Increased awareness and reputation among clients and suppliers
  • Strengthen recruitment proposition among prospective employees

Leverage brand recognition

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%

2018 2018 SALES G GROWTH

26 26%

2018 2018 OV OVER

50 50%

2018 2018 PAYOUT R RATIO IO

MID ID-TERM T TARGETS PERFORMANCE 2 2018

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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

474 418 561 949 789 601 695 1,294 1,168 871 1,045 1,126 1 247 1 317 1 656 6% 5% 7% 7% 5% 9% 2%

  • 3%
  • 5%

3% 4% 5% 4% 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

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

Revenue EBIT margin

IFRS

MSEK

| BUSINESS UPDATE

Our financial track record – Revenues & EBIT-margin

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

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Turning the order book into profitable growth

§ 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

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

§ Strengthen project steering – decision to implement educational program ”Lyftet” § Professionalizing of procurement of purchases § Close dialogue with our customers – the sustainability day § New operational support group focused on processes, quality and risk § Increased focus on Scaffolding § Merged Avesta and Hedemora in Construction services

Q32018

| BUSINESS UPDATE

Q1

§ Strengthen project steering – start-up of the educational program ”Lyftet” § Re-organization Uppsala & Mälardalen

Q42018 Q12019

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Core construction - no property development

2.0 .043 M MSEK

Partnering Regular contracts

Pr Proj

  • jects

Social Properties 55% Housing 32% (BRF 5%) Commercial incl. service and renovation 13%

Cu Customers

Arboga Kommun Rodret Bostads AB Sala Kommun HEFAB Stockholmshem Falu Kommun Gamla Byn AB LudvikaHem Micasa Danviks Hospital Lundbergs Specialfastigheter

Pa Partneri ring pr proje ject

40% 60%

Ge Geogr graphy

Dalarna 50% Stockholm/Uppsala/ Mälardalen 50%

§ Order book analysis § High activity in social properties § Focus on partnering projects

| BUSINESS UPDATE

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| BUSINESS UPDATE

Our partnering strategy provides the right conditions for sustainable construction

§ The foundation for sustainable entrepreneurship is profitability. § We take environmental and social issues into account during the entire process of the construction process. § We are building for a sustainable society § During Q4 | Close dialogue with our customers and stakeholders ”Sustainability Day”

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Scaffholdings

  • Working environment and quality is key
  • Increased revenues with profitability
  • Focus on continued growth
  • Continue to focus on efficiency in material

management

| BUSINESS UPDATE

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Construction services

  • Strong revenue growth in 2018 and

maintained profitability

  • Stable quarter
  • Focus is on increased profitability
  • Avesta and Hedemora merged

| BUSINESS UPDATE

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Financials Jan-Dec 2018 in summary

  • Strong order intake 2 098 MSEK (1 453) +44%
  • Orderbook 2 043 MSEK (1 601) +28%
  • Sales Growth 1 655 MSEK (1 317) +26%
  • Increased operating profit EBIT 45,8 MSEK (40,8) +12%
  • Stable EBIT-margin 2,8% (3,1)
  • Robust cash-flow 124,0 MSEK (78,1)

| FINANCIAL UPDATE

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336 414 514 200 250 300 350 400 450 500 550 600 2016 2017 2018 1247 1317 1655 200 400 600 800 1000 1200 1400 1600 1800 2016 2017 2018

Q4 | MSEK YEAR ON YEAR | MSEK Q4 | MSEK YEAR ON YEAR | MSEK

396 394 353 500 1000 1500 2000 2500 330 340 350 360 370 380 390 400 2016 2017 2018 Order intake MSEK Order book MSEK 1597 1452 2098 500 1000 1500 2000 2500 500 1000 1500 2000 2500 2016 2017 2018 Order intake MSEK Order book MSEK

Order intake & Order Book Revenues

| FINANCIAL UPDATE

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Q4 | MSEK YEAR ON YEAR | MSEK Q4 | MSEK YEAR ON YEAR | MSEK

18 13 16,4 1 2 3 4 5 6 2 4 6 8 10 12 14 16 18 20 2016 2017 2018 EBIT MSEK Gross Margin (%) 50,5 40,8 45,8 0,5 1 1,5 2 2,5 3 3,5 4 4,5 10 20 30 40 50 60 2016 2017 2018 EBIT MSEK Gross Margin (%)

Profitability & Operating result Cash-flow

52 18 53 10 20 30 40 50 60 2016 2017 2018 27 78 124 20 40 60 80 100 120 140 2016 2017 2018

| FINANCIAL UPDATE

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Q4 | MSEK YEAR ON YEAR | MSEK

1,31 0,8 1,03 0,2 0,4 0,6 0,8 1 1,2 1,4 2016 2017 2018 EPS SEK 3,53 2,57 2,88 0,5 1 1,5 2 2,5 3 3,5 4 2016 2017 2018 EPS SEK

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. Board proposal 2,75 SEK per share (2,50)

19 20
  • 24
  • 22
  • 24
  • 27
  • 51
  • 77
  • 111
  • 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 NWC

Net working capital end of quarter, MSEK| Average -33 MSEK

Earnings per share

| FINANCIAL UPDATE

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Low capital requirement increasing returns

100 127 129 132 52 43 31 35 20 40 60 80 100 120 140 2015 2016 2017 2018 Equity (avg) Net Income SEKm

Strong return on capital…

132 140 142 139 63 51 41 46 20 40 60 80 100 120 140 160 2015 2016 2017 2018 Capital Employed² (avg) EBIT SEKm

52%

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

24%

ROE

48%

ROCE1

36%

ROCE1

34%

ROE

29%

ROCE1

27%

ROE

33%

ROCE1

| FINANCIAL UPDATE

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86% 11% 3% Construction Services Scaffolding 70% 12% 18% Construction Services Scaffolding

Revenues per segment Jan – Dec 2018 EBIT per segment Jan – Dec 2018

SEK millions 2018 Jan-Dec 2017 Jan-Dec Change Revenues Construction 1448,9 1132,5 28% Construction Services 178,8 151,3 18% Scaffolding 54,2 51,4 5% SEK millions 2018 Jan-Dec 2017 Jan-Dec Change Operating Profit Construction 32,6 30,8 6% Construction Services 5,4 6,0

  • 10%

Scaffolding 8,3 7,9 5% | FINANCIAL UPDATE

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877 873 735 1,0181,2253 1,094 1,468 1,150 1,086 1,3831,3341 384 1,3…1 6151 5001 4541 452 1 616 1 801 2 1392 098 6… 794 770 1,0881,1301,006 1,2921,286 1,1151,213 1,4041,4041,465 1 6161 7041 621 1 601 1 838 2 010 2 043 500 700 900 1 100 1 300 1 500 1 700 1 900 2 100 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 Order intake, LTM Order book

SEKm

Stable order intake and backlog development

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

SEK 2,043m

  • rder book
871 889 927 950 1,045 1,062 1,090 1,069 1,101 1,176 1,223 1 265 1,247 1 212 1 200 1 238 1 317 1 394 1 495 1 555 1 656 800 900 1 000 1 100 1 200 1 300 1 400 1 500 1 600 1 700 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 Revenue, LTM

SEKm

13% CAGR

Q4 2013 – Q4 2018

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 – Q4 2018

CAGR

Order intake Order book

18 % 25 %

, , , , , , ,

| FINANCIAL UPDATE

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ByggPartner as an investment

CO CORE CO CONSTRUCT CTION – NO PROPERTY DEVELOPMENT PA PARTNERING STRATEGY – SUSTAINABLE BUSINESS MODEL 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 Up Uppsala Mä Mäla lardale len Da Dalarna

52%

(3 (36%) %)

48% 48%

(6 (64%) %)

ü Market leader

14 14%

(2 (28%) %)

25% 25%

(2 (25%) %)

9% 9%

(1 (10%) %) | 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 Revenues 1 020,70 1 125,60 1 246,70 1 316,8 1655,5 Production and operating costs

  • 956,9
  • 1 037,40
  • 1 167,30
  • 1 244,7
  • 1 575,10

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

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

Operating profit (EBIT) 38,8 62,6 50,6 40,8 45,8 Operating margin 3,8% 5,6% 4,1% 3,1% 2,8% Profit before taxes (EBT) 40,3 61,8 50,2 40,3 45,4 Net profit 31,8 51,8 42,7 31,1 34,9 Order intake 1 225,00 1 086,00 1 597,00 1 452,5 2097,9 Order book 1 130,00 1 114,70 1 465,10 1 600,8 2043,2

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OWNERSHIP STRUCTURE

Sh Sharehol

  • lders in

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

  • f

Dec 3 31, 2 , 2018

Surditet AB (Bo Olsson) 24,66% Länsförsäkringar Fondförvaltning AB 9,89% Priveq Investment Fund III KB 4,81% Nordea Livförsäkring Sverige AB 4,74% Försäkringsaktiebolaget Avanza Pension 4,19% LGT BANK LTD (GADD) 4,05% Priveq Investment Fund III AB 2,57% Växjö Entreprenad AB 2,16% Dalakvartetten Huskonsult AB 1,92% Lirfo Invest AB 1,92% Övriga 39,09%

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

and Uppsala

  • 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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Tore Hallersbo, 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
  • 70 540 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.

Louise Nilsson, Director

  • Joined the Board of ByggPartner in 2006
  • CEO of Priveq Investment V, Chairman of Priveq
Investment Fund III, Director of Priveq Advisory
  • Other board assignments: 21 Grams, Csam Health,
House of Ports, QleanAir Scandinavia
  • 1 606 452 shares through Priveq Investment Fund III AB
and KB

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
  • 2 641 122 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

Torsten Josephson, 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
  • 31 300 shares

OUR B BOARD O OF D DIR IRECTORS