Makes it easier to be professional Interim report presentation, 19 July 2017
January – June in brief Strong first half year Adj. EBITA increased 15% Three acquisitions completed and another signed 2
Q2: Organic growth of 8 percent in strong market Q2 Highlights 2017 2016 2017 2016 • Total sales growth of +7%, Apr-Jun Apr-Jun change Jan-Jun Jan-Jun Change • Organic growth was +8% Net sales 6 818 6 344 7% 13 387 11 824 13% • Negative effect from fewer trading days and Easter in April Organic Growth 8% 7% 8% 6% • EBITA increased by +2% Adjusted EBITA, MSEK 570 560 2% 1 099 957 15% Events Adjusted EBITA margin 8,4% 8,8% 8,2% 8,1% • Two acquisitions completed with annual sales of approximately 100 MSEK • Net sales per quarter and RTM One additional acquisition with annual sales of approximately 320 MSEK to be completed* 8 000 30 000 28 000 6 000 26 000 Cash flow and financial position 24 000 • Cash conversion 90% 4 000 22 000 20 000 • Net debt/adj. EBITDA 3.0x 2 000 18 000 16 000 0 14 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 Net sales, MSEK Net sales RTM, MSEK 3 * The acquisition is subject to approval by the Swedish Competition Authority and closing is planned for September 2017
Q2: Strong organic growth and acquisitions drove sales Sales Bridge Group +7% MSEK Sweden • Positive macroeconomics in +9% all main markets • Organic growth +8%, supported by successful Sales Bridge per market segment Norway market initiatives +4% • Negative effect from lower number of trading days and Easter effect* MSEK • Acquisitions contributed 190 Finland MSEK to net sales +3% * When comparing a normal week’s activity with corresponding trading days in an Easter week, the higher level of activity is equivalent to approximately one more 4 trading day for the Group.
Q2: Group adj. EBITA up 2%, driven by increased sales Group Adj. EBITA Bridge (MSEK) 8.4% adj. EBITA margin Sweden MSEK 12.0% • Fewer trading days had negative impact of adj. EBITA margin approximately 100 MSEK Norway • Stable gross margin Adj. EBITA margin per quarter 2.0% • Increased operating 12% expenses due to volume 10% adj. EBITA margin increase, acquisitions and 8% market initiatives Finland 6% Adjusted EBITA margin 4% 4.0% 2% adj. EBITA margin 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 5
H1: Group net sales driven by organic growth and acquisitions Sales Bridge Group net sales up SEK 1.6 billion (13%) MSEK Sweden • Strong market growth +14% driven by macroeconomics and demographics • Organic growth supported Sales Bridge per market segment Norway by successful market +15% initiatives • Acquisitions contributed MSEK with 346 MSEK MSEK • Positive FX translation Finland effects +7% 6
H1: Group adj. EBITA up 15%, driven by increased sales Group Adj. EBITA Bridge (MSEK) 8.2% adj. EBITA margin Sweden Sweden 12.0% +14% adj. EBITA margin • Strong net sales effect • Stable gross margin Norway Net sales and Adj. EBITA margin per quarter Norway • Increased operating 2.4% 8 000 16% +15% expenses due to volume adj. EBITA margin 6 000 12% increase, acquisitions and market initiatives 4 000 8% Finland Finland 2 000 4% 3.0% +7% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 adj. EBITA margin 2014 2015 2016 2017 Net sales per quarter, MSEK Adj. EBITA margin 7
Three acquisitions completed and a strong pipeline Total net sales of 220 MSEK acquired, another 320 MSEK signed • Net sales* of 120 MSEK Q1 G-ESS Yrkeskläder • PPE (Workwear and shoes) • 4 branches in Stockholm region • Net sales* of 45 MSEK • CJ Järn & Maskin Tools, machinery and PPE • Vårgårda • Net sales* of 55 MSEK Svensk Industri & Q2 • PPE (Workwear and shoes) Kommunservice • Gothenburg • Net sales* of 320 MSEK ViaCon VA • Water and Sewer products Signed** • 11 locations in SE * Estimated net sales (RTM) at acquisition date 8 ** The acquisition is subject to approval by the Swedish Competition Authority and closing is planned for September 2017
Sweden 2017 2016 2017 2016 Market Sweden Apr-Jun Apr-Jun change Jan-Jun Jan-Jun change • Strong activity in the construction sector, External net sales, SEK million 4 484 4 102 9% 8 745 7 674 14% encouraged by a favourable investment situation Organic growth 10% 8% 9% 7% with low interest rates and housing shortage Profit (EBITA), SEK million 537 522 3% 1 047 913 15% • Major infrastructure investments. Increase in non- Adjusted EBITA, SEK million 537 522 3% 1 047 913 15% residential building permit approvals EBITA margin, % 12.0% 12.7% 12.0% 11.9% Adjusted EBITA margin, % 12.0% 12.7% 12.0% 11.9% Highlights Q2 • Net sales up 9% and organic growth was 10% • Timing of Easter and lower number of trading Net sales and adj. EBITA margin per quarter days had negative effect 5 000 15% • A number of major contracts renewed with 4 000 13% broader product proposition 3 000 11% • Adj. EBITA up 3%, adj. EBITA-margin was 12.0% 2 000 9% • Negative effect of fewer trading days was ~ 1 000 7% -66 MSEK on gross profit – 5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 • Gross margin hampered by customer mix 2015 2016 2017 External net sales, MSEK Adjusted EBITA margin 9
Norway 2017 2016 2017 2016 Market Norway Apr-Jun Apr-Jun change Jan-Jun Jan-Jun change • Good market conditions in the construction and External net sales, SEK million 1 312 1 267 4% 2 702 2 349 15% infrastructure sector Organic growth 6% 6% 9% 6% Profit (EBITA), SEK million 26 25 3% 65 38 71% Highlights Q2 Adjusted EBITA, SEK million 26 25 3% 65 38 71% • Net sales up 4% driven by organic growth EBITA margin, % 2.0% 2.0% 2.4% 1.6% • Strong growth and strategic contracts within Adjusted EBITA margin, % 2.0% 2.0% 2.4% 1.6% Electrical • Timing of Easter and lower number of trading days had negative effect Net sales and adj. EBITA margin per quarter • Positive FX translation effects of 51 MSEK 6% 1 500 • Adjusted EBITA up 3%, and stable margin 5% 1 200 4% • Gross margin slightly up 900 3% • Negative effect of fewer trading days was 600 2% 300 ~ -22 MSEK on gross profit 1% – 0% • Continuing work on extending the offering and Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 rolling out strategic market initiatives External net sales, MSEK Adjusted EBITA margin 10
Finland 2017 2016 2017 2016 Market Finland Apr-Jun Apr-Jun change Jan-Jun Jan-Jun change • Positive development in some sectors and External net sales, SEK million 813 787 3% 1 540 1 438 7% successive improvements expected Organic growth 4% 8% 4% 5% Highlights Q2 Profit (EBITA), SEK million 21 34 -37% 35 44 -19% • Net sales up 3% and organic growth was 4% Adjusted EBITA, SEK million 33 34 -4% 47 44 7% • Positive FX translation effects of 33 MSEK EBITA margin, % 2.6% 4.3% 2.3% 3.0% • Lower number of trading days had negative Adjusted EBITA margin, % 4.0% 4.3% 3.0% 3.0% effect • Adj. EBITA fell 4%, Adj. EBITA margin slightly lower • Negative effect of fewer trading days was ~ Net sales and adj. EBITA margin per quarter -8 MSEK on gross profit 1 000 10% • Continued investment in branch network 800 8% expansion 600 6% • New organisational setup 400 4% • Costs affecting comparability of 11.5 MSEK in 200 2% Q2 • Positive annual effect of about 20 MSEK on – 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 costs 2015 2016 2017 External net sales, MSEK Adjusted EBITA margin 11
Denmark and Other Denmark 2017 2016 2017 2016 Denmark • Market conditions remain challenging Apr-Jun Apr-Jun change Jan-Jun Jan-Jun change External net sales, SEK million 100 95 5% 195 188 4% • Net sales up 5% driven by organic growth of 6%. Organic growth 6% -1% 0% 1% Positive FX translation effects of 7 MSEK Profit (EBITA), SEK million 10 9 15% 19 16 15% • Fewer trading days impacted net sales and EBITA Adjusted EBITA, SEK million 10 9 15% 19 16 15% • Improved gross margin EBITA margin, % 10.3% 9.4% 9.6% 8.7% • Adj. EBITA margin increased to 10.3% Adjusted EBITA margin, % 10.3% 9.4% 9.6% 8.7% Other 2017 2016 2017 2016 Other • Net sales up 18% driven by strong organic growth Estonia, Russia, Poland Apr-Jun Apr-Jun change Jan-Jun Jan-Jun change External net sales, SEK million 110 93 18% 204 175 17% in Estonia and Poland. Positive FX translation Organic growth 12% -14% 8% -12% effects Profit (EBITA), SEK million 3 2 45% 4 3 34% • Russian operation hampered by weak macro Adjusted EBITA, SEK million 3 2 45% 4 3 34% conditions EBITA margin, % 2.3% 1.9% 1.8% 1.5% • Adj. EBITA margin increased to 2.3% Adjusted EBITA margin, % 2.3% 1.9% 1.8% 1.5% 12
Financials 13
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