RECORD SALES, EBIT AND CASH GENERATION - We Are Bhg
2019/Q2RECORD SALES, EBIT AND CASH GENERATIONBygghemma Group First AB (publ)1
2019/Q2Today’s presentersMartin EdbladAdam Schatz Bygghemma Group since 2012 CFO of CDON Group (now Qliro Group, publ) (2010-12) CFO of MTG’s online business area (2004-10) Bygghemma Group since 2019 Axiell Group 2015-2019 (CFO, Head of Business Division) Gambro and Baxter 2008-2015 (Regional CFO, Head ofUK & Ireland ); Teknoseed AB 2000-2008 (CEO);Goldman Sachs 1998-2000 (Analyst)Acting President and CEOBygghemma Group First AB (publ)CFO2
2019/Q2Agenda Results highlights Business update Financial update Q2 2019‒‒‒‒GroupDIY segmentHome Furnishing segmentCash flow and financial position Summary Q&ABygghemma Group First AB (publ)3
2019/Q2Agenda Results highlights Business update Financial update Q2 2019‒‒‒‒GroupDIY segmentHome Furnishing segmentCash flow and financial position Summary Q&ABygghemma Group First AB (publ)4
2019/Q2Record sales, EBIT and cash generationSales growth continues to outperform theNordic overall marketRecord-high adjusted EBIT in absoluteterms and adjusted EBIT marginNet sales (SEKm)Adjusted EBIT (SEKm) 20.5%Adjusted EBIT marginRecord-high operating cash flow –201% cash conversionQ2 2019 (SEKm)Cash conversion 39.9%201%Organicgrowth 8.6%137,51 708,8(24.7)224,3100,41 417,871,7111,5Q2 2018Q2 20195.1%5.9%Q2 2018Q2 2019AdjustedEBITDAChange inNWCCapexOperatingcash flowNote: Items affecting comparability impacting EBIT totaled SEK 0.3 million (7.4) for the quarter attributable to acquisition-related expensesBygghemma Group First AB (publ)5
2019/Q2Agenda Results highlights Business update Financial update Q2 2019‒‒‒‒GroupDIY segmentHome Furnishing segmentCash flow and financial position Summary Q&ABygghemma Group First AB (publ)6
2019/Q2Bygghemma Group at a glanceThe clear Nordic online leader in home improvementSignificant scale and profitability0.4%2.5%3.9%5.0%4.1%4.6%4.4%5 1694 9744.7%5 4604 649CAGR 46%2 604Net sales Apr-Jun 2019Norway7%Homefurnishing39%3 956DIY61%1 895Other6%1 7Home furnishing2018EliminationsLTM Q2 LTM Q1 LTM Q2201820192019Adjusted EBIT marginNote: Adjusted EBIT excludes Items affecting comparability.Bygghemma Group First AB (publ)7
2019/Q2Acquisition strengthens category leadership within lighting Acquisition of Lampgallerian i Växjö AB on 10May Lampgallerian, a leading pureplay online retailerin Sweden for indoor and outdoor lighting hadnet sales and an operating margin in excess ofSEK 40 million and 6 percent, respectively, in2018 The acquisition further strengthens BygghemmaGroup’s leading Nordic online position in HomeFurnishingsBygghemma Group First AB (publ)8
2019/Q2Agenda Results highlights Business update Financial update Q2 2019‒‒‒‒GroupDIY segmentHome Furnishing segmentCash flow and financial position Summary Q&ABygghemma Group First AB (publ)9
2019/Q2Sales mainly driven by visits and growth in AOVPick-up in organic growth and strong developments inrecently acquired businessesContinued strong development in KPIsNet sales (SEKm) 20.5%Organicgrowth 8.6%1 708,8Bygghemma Group First AB (publ)Q2 2019# of orders(000’s)Q2 2019Conversionrate(%)1 417,8Q2 2018# of visits(000’s)Averageorder value(SEK)Q2 201910 46%Q2 2018Q2 2018Q2 2019Q2 201829 827 8%503465(0.4 p.p.)1,21,6Q2 2019Q2 201843 583 15%2 9743 417
2019/Q2Higher AOV translates to improved unit economicsGross margin of different average orders valueswith same freight cost (assumed at SEK 400)AverageOrder Value(AOV), (SEK)Gross Margin 2(%) 1.9 p.p./ 31%4 000ILLUSTRATIVE16,9%17,0%16,5%16,0%16,0%3 5003 50015,0%3 0003 250 500 / 17%14,5%14,0%2 50013,5%AOV1AOV2AOVBygghemma Group First AB (publ)AOV3Markedly improved unit economicswhen the average order valueincreases Examples, assuming a freight cost of400 SEK and all other costs the same asa share of sales‒15,5%15,0%3 000 ‒If the average order value increases fromSEK 3,000 to SEK 3,250, then the fullyloaded gross margin 2 increases by 1 pptIf average order value increases from SEK3,000 to SEK 3,500, then the fully loadedgross margin 2 increases by 2 p.p.When AOV increases by 17%, profitcontribution increases by 31%GM2%11
2019/Q2Improved gross margin and record high EBITGross margin improved due to growth in AOV and ancillaryrevenues, as well as pricing and cost improvementsGross margin (%)Record-high adjusted EBIT and highest adjusted EBIT marginto dateAdjusted EBIT marginAdjusted EBIT (SEKm) 2.7 p.p. 39.9%23,3%20,6%100,471,7Q2 2018Q2 20195.1%5.9%Q2 2018Q2 2019Note: Items affecting comparability impacting EBIT totalled SEK 0.3 million (7.4) for the quarter attributable to acquisition-related expensesBygghemma Group First AB (publ)12
2019/Q2DIY segmentStrong growth – continued Nordic market share gains Net sales increased by 16.2% continued market share gains inall Nordic markets during thequarterStrong performance in thecategories of garden, flooring,doors and windows and increasein revenue from ancillary services Sales growth further augmentedby targeted acquisitions Adjusted EBIT of SEK 51.8 million(44.6) for the quarter – thehighest level to date andadjusted EBIT margin of 5.0% (5.0) Accelerating organic growthand strong momentum goinginto the third quarterBygghemma Group First AB (publ)DIY represented 61% of theGroup’s net sales in the second quarterHighest quarterly EBIT level to dateNet sales (SEKm)Adjusted EBIT (SEKm)Gross margin 16%Adjusted EBIT margin 16%1 046,251,8900,544,619.2%20.5%5.0%5.0%Q2 2018Q2 2019Q2 2018Q2 201913
2019/Q2Home Furnishing segmentSolid growth and record-high EBIT Net sales increased by 27.8%,buoyed by accelerating organicgrowth and strong performancein recently acquired businessesHome furnishing represented 39% of theGroup’s net sales in the second quarterHighest quarterly EBIT level to dateNet sales (SEKm)Adjusted EBIT (SEKm)Adjusted EBIT amounted to SEK53.8 million (28.8) for the quarter,the highest quarterly level todate and adjusted EBIT margin of8.0 percent (5.5)Bygghemma Group First AB (publ)Adjusted EBIT margin 87% 28%Increased market shares in allgeographiesThe continued roll-out ofBygghemma Group’s own lastmile logistics operations inSweden is progressing well, withthe Öresund region next in line forin-house coverageGross margin53,8669,8524,028,823.0%27.4%5.5%8.0%Q2 2018Q2 2019Q2 2018Q2 201914
2019/Q2Cash flow and financial positionRecord-high operating cash flowRecord-high operating cash flow– 201% cash conversionLiquidity driven by strong operating cash flow(including impact from IFRS 16)Cash conversionQ2 2019 (SEKm)SEKm201%137,5M&A capex ofSEK 101.1m in theperiod(24.7)224,3(147,4 )295,2(93,0 )111,5226,9Impacted byitems affectingcomparability ofSEK 0.3mAdjusted EBITDA281,7Change in NWCBygghemma Group First AB (publ)CapexOperating cash flowQ4 2018 liquidityCF fromoperationsCurrently notutilising overdraftfacilityCF frominvestingactivitiesCF fromfinancingactivitiesQ2 2019 liquidity15
2019/Q2Cash flow and financial positionFinancial position remains solidOverview of financial positionSEKm30 Jun 2019Interest bearing liabilities1,389.0Cash and cash equivalents(281.7)Adjustment lease liabilities(362.6)Adjustment for earn-outs and deferred payments(391.9)Adjustment for debt feesNet debt / (net cash)4.9357.7Q2 2019 LTM adjusted EBITDA289.4Net debt / LTM adjusted EBITDA1.2xBygghemma Group First AB (publ) Net debt / EBITDA of 1.2x, outperformingfinancial target of 1.5 – 2.5x The Group’s unutilised credit facilitiesamounted to SEK 456 million at the end of theperiod, compared with SEK 395 million at thebeginning of the year Strong financial position to facilitate growthinvestments and continued M&A16
2019/Q2Agenda Results highlights Business update Financial update Q2 2019‒‒‒‒GroupDIY segmentHome Furnishing segmentCash flow and financial position Summary Q&ABygghemma Group First AB (publ)17
2019/Q2Q2 SummaryStrengthened marketposition Leading European pureplay online retailer within the home improvement spaceStrengthened dominant Nordic position – estimated online market share approaching 30%within both the DIY- and Home Furnishing retail segmentsRecord-high adjustedEBIT Record-high adjusted EBIT in absolute terms, SEK 100.4mHighest adjusted EBIT margin to date at 5.9%, compared with last year’s margin of 5.1%Highest ever operatingcash flow Record-high operating cash flow – 201% cash conversionA result of a combination of growth of adjusted EBITDA, a positive change in working capitaland the Group’s low capex requirementsNumerous operationalimprovements Operational improvements implemented throughout the Group’s value chainAverage order value increased 15% YoY – continued focus on curation and unit economicsStrong financialposition Financial targets reiteratedIn strong position to follow through on M&A agendaStrong momentum Accelerating organic growth positioning the group strongly going into Q3Bygghemma Group First AB (publ)18
2019/Q2Agenda Results highlights Business update Financial update Q2 2019‒‒‒‒GroupDIY segmentHome Furnishing segmentCash flow and financial position Summary Q&ABygghemma Group First AB (publ)19
7AppendixBygghemma First Holding AB20
2019/Q2IFRS 16Important clarifying information Bygghemma Group First AB applies IFRS 16 from 1 January, 2019 The new accounting standard has had the following impact: Increased the total assets by around SEK 360 million Expected to have a positive EBITA and EBITDA effect of around SEK 7 million and SEK 90million respectively on a FY basis As no pro-forma recalculation has been performed for 2018, and unless otherwisestated, comparisons with 2018 are made against figures for 2019, excluding theimpact from IFRS 16Bygghemma Group First AB (publ)21
2019/Q2Note on adjusted EBIT As of the Q2 2019-report, Bygghemma Groupintroduces the measure adjusted EBIT to further clarifythe Group’s underlying profit generation andprofitability. Adjusted EBIT replaces the term that waspreviously used; adjusted EBITA. Adjusted EBIT corresponds to operating incomeadjusted for amortisation and impairment losses onacquisition-related intangible assets and items affectingcomparability.1 By using the measure Adjusted EBIT, Bygghemma Groupsimplifies the analysis of the Group’s profit generationand profitability.2 It is also important to note that the effect of acquisitionsis already reflected in the Group’s capital structure andnet debt, in accordance with generally acceptedaccounting practices.Components in adjusted EBIT and adjusted EBITDASEKm7,290,10,3OperatingincomeItems maining DepreciationAdj.amort.EBITDANote: (1) In other words, adjusted EBIT includes all depreciation and amortisation arising from the ongoing business (which was also the case for the term used earlier, adjusted EBITA). The difference between adjusted EBIT and EBIT is that the amortisation which arises as a result of theaccounting treatment of purchase price allocations in conjunction with acquisitions is added back to adjusted EBIT. (2) The Adjusted EBIT measure provides a correct picture of the Group’s operating results, since it excludes the accounting-related amortisation which arises from purchaseprice allocations in conjunction with acquisitions. Further, the measure simplifies peer comp analysis of companies which do not make acquisitions and makes the analysis of acquisition opportunities clearer and more transparent, since the anticipated operating EBIT-contribution ofacquisition opportunities then corresponds to their actual EBIT contribution post consolidation.Bygghemma Group First AB (publ)22
2019/Q2Condensed consolidated financial informationSEKm (if not otherwise stated)Net salesGross profit2019Q22019*2018 %2018 47.520.6 0.3 p.p.23.823.820.7 0.3 p.p.21.1221.7173.8397.6397.6Gross margin (%)23.323.3Adjusted EBITDA**135.7111.5Adjusted EBITDA margin (%)Adjusted EBIT**7.96.5102.3100.4Adjusted EBIT margin (%)78.941.35.6 0.1 p.p.71.739.97.65.9157.5153.8115.550.54.7 0.1 -7.5-7.5-58.0-87.1-77.9Operating 34.44.344.444.632.139.163.364.0-22.9n/a50.8Cash flow from ,120Orders (thousands)5035034658.19029028525.81,735Conversion rate (%)1.21.21.6 0.0 p.p.1.11.11.5 0.0 p.p.1.53,4173,4173,2903,290Average order value (SEK)2,97414.91.1 0.3 p.p.4.1Net profit/loss for the periodVisits (thousands)3.9 0.1 p.p.4.2 0.1 p.p.231.1Items affecting comparabilityOperating margin (%)5.1 0.1 p.p.Jan-Jun20192019*2,83316.11.82,830* Adjusted for the effect of the implementation of IFRS 16, meaning that the numbers are fully comparable to the numbers reported for 2018.** Refer to “Relevant reconciliations of non-IFRS alternative performance measures (APM)” for a more detailed description.Bygghemma Group First AB (publ)23
2019/Q2DIY segmentQ2SEKm (if not otherwisestated)Net salesGross profit20192019*1,046.2 1,046.2Jan-Jun2018900.5 %16.2214.9214.9172.624.5Gross margin (%)20.520.519.2Adjusted EBITDA68.158.649.7Adjusted EBITDAmargin (%)6.55.6Adjusted EBIT53.0Adjusted EBITmargin (%)Jan-Dec20192019*20181,734.8 1,734.8 1,507.7 %15.120183,073.8612.1363.8363.8296.222.81.4 p.p.21.021.019.61.3 p.p.19.918.0100.681.573.910.2150.25.50.1 p.p.5.84.74.9-0.2 0 p.p.4.14.04.3-0.3 p.p.4.3Items 6149.0-0.9Operating g margin (%)4.44.34.20.1 p.p.3.23.13.4-0.3 p.p.3.3Net profit/loss for 647 18,24729.640,98440,98432,26727.065,762Visits (thousands)23,647Orders (thousands)3173173024.85485485313.21,099Conversion rate (%)1.31.31.7-0.3 p.p.1.31.31.6-0.3 Average order value (SEK)Bygghemma Group First AB (publ)24
2019/Q2Home Furnishing segmentSEKm (if not otherwise stated)2019Q22019*2018 %Jan-Jun2019 2019*Net sales669.8669.8524.027.81,203.9 1,203.9Gross profit2018 .1335.1210.659.1437.2Gross margin (%)27.427.423.04.4 p.p.27.827.822.35.6 p.p.22.8Adjusted ted EBITDAmargin (%)10.98.75.92.8 p.p.10.88.44.73.8 p.p.4.6Adjusted EBIT54.653.828.887.195.794.240.0135.678.8Adjusted EBITmargin (%)8.28.05.52.5 p.p.7.97.84.23.6 p.p.4.1Items affecting 4.9Operating 3.73.9 p.p.7.06.92.14.8 p.p.1.837.337.410.0272.960.660.96.2882.041.019,935 19,935 11,57972.237,48037,480 22,91563.650,358Operating margin (%)Net profit/loss for the periodVisits (thousands)Order (thousands)18618616314.235435432110.1636Conversion rate (%)0.90.91.4-0.5 p.p.0.90.91.4-0.5 p.p.1.3Average order gghemma Group First AB (publ)25
2019/Q2P&LSEKmNet salesOther operating ,938.3-3,926.2Personnel costs-123.7-102.4-230.9-209.0-420.4Other external costs and operating 1.9-22.949.90.6-1.5-0.9Net income for the period44.432.163.3-22.950.8Earnings per share before dilution, SEK0.480.300.65-0.870.00Earnings per share after dilution, SEK0.480.300.65-0.870.00Total net salesCost of goods soldOther operating expensesDepreciation and amortisation of tangible andintangible fixed assetsOperating incomeProfit/loss from financial itemsProfit/loss before taxIncome taxProfit/loss for the periodAttributable to:Equity holders of the parentNon-controlling interestBygghemma Group First AB (publ)26
2019/Q2Balance sheetSEKm30 Jun201931 dec20182018Non-current assetsGoodwill2,713.52,462.82,590.7Other intangible fixed assets1,268.31,169.11,225.3Total intangible fixed assets3,981.83,631.93,815.911.411.311.3Leased fixed assets348.7--Tangible fixed assets34.422.122.9Financial fixed assets5.15.15.4Deferred tax asset9.215.36.0Total fixed 4.9Current receivables306.3268.6258.6Cash and cash equivalents281.7299.9226.9Total current assets1,193.31,071.0990.4Total .9Non-current interest-bearing liabilites to credit institutions616.4651.1694.9Non-current lease liabilities267.7--Other non-current rent interest-bearing liabilities to credit institutions18.0--Current lease liabilities94.9--Other interest-bearing liabilities53.223.742.0Other current liabilities1,064.9886.0786.0Total current liabilities1,231.0909.6828.1Total equity and liabilities5,584.04,756.84,851.9Buildings and landCurrent assetsEquityEquity attributable to owners of the parentNon-controlling interestTotal equityNon-current liabilitiesDeferred tax liabilityOther provisionsTotal non-current liabilitiesCurrent liabilitiesBygghemma Group First AB (publ)27
2019/Q2Consolidated statement of cash flowsSEKmQ220192018Jan-Jun20192018Jan-Dec2018Cash flow from operating activities before changes inworking capital114.550.6181.98.6Changes in working capital137.5112.2113.3136.122.7Cash flow from operations252.0162.8295.2144.7120.5Investments in operations-27.1-7.7-101.1-19.7-58.9Investments in other non-current 10.1-51.8-27.0-147.4-49.3-126.8343.4Divestment of operationsDivestment of other tangible fixed assetsCash flow to/from investing activitiesNew share issueLoans takenAmortisation of loansIssue of warrantsDividends to shareholdersCash flow to/from financing activitiesCash flow for the periodCash and cash equivalents at the beginning of the 65.3460.6226.9156.1Translation differences in cash and cash equivalents2.73.16.37.93.6Cash and cash equivalents at the end of the period281.7299.9281.7299.9226.9Bygghemma Group First AB (publ)28
2019/Q2Reconciliation of non-IFRS metricsSEKmOperating incomeAcquisition-related .0Integration costs and costs related to warehouse move--7.1--15.027.5Last mile project---5.85.8-6.3Costs related to LTIP-----11.411.4Costs related to the process for expanding theshareholder 74.6Total items affecting comparabilityAmortisation and impairment of acquisition-relatedintangible fixed assetsAdjusted EBITAdjusted EBIT (%)Depreciation and amortisation of tangible andintangible fixed assetsAdjusted EBITDAAdjusted EBITDA (%)Net 323.320.623.823.820.721.1Integration costs and costs related to warehouse move--7.1--14.626.3Last mile 1,077.923.323.321.124.024.021.321.7Cost of goods soldGross profitGross profit (%)Adjusted gross profitAdjusted gross profit (%)Bygghemma Group First AB (publ)29
Record-high adjusted EBIT in absolute terms and adjusted EBIT margin 5.1% 5.9% 20.5% 39.9% 2019/Q2 Record sales, EBIT and cash generation Q2 2019 (SEKm) 137,5 111,5 (24.7) 224,3 Adjusted EBITDA Change in NWC Capex Operating cash flow 201% Record-high operating cash flow - 201% cash conversion Cash conversion
(Q P) - (Q V) - F S - VC - F EBIT Financial Breakeven Analysis ps C Earnings available to common stockholders (EBIT-I)(1-T)-D EPS 0 Number of common shares outstanding Shrs ps FinBE D EBIT I (1 - T) û(36 EPS û(%,7 EBIT Degree of Percent change in EPS DFL financial leverage Percent change in EBIT
Record a Cash Sale 1) In the Search field enter Record Cash Sale and select the appropriate action from the search results. Note: Only . one . cash sale . per payment type. can be submitted at a time. For example, Check and Cash payments should be on separate cash sales. Additionally, if an employee received an overage of a cash advance and/or had
The Darksiders-series is the notable contributor in Q2 Increased EBIT margin due to lower amortization In MSEK Apr-Jun 2016 Apr-Jun 2017 var /- Net Sales 52.7 85.6 62% EBITDA 23.2 39.7 71% EBIT 14.2 30.3 113% Profit after tax 10.6 23.2 119% Cash flow from operations 2.0 21.6 980% EBITDA Margin 44% 46% EBIT Margin 27% 35%
RECORD CASH SALE 8. Once you submit the cash sale, click Details and Process which will show the cash sale number. 9. Click the Cash Sale number hyperlink. 10. On the View Cash Sale page, click the print icon, then Click to download. 11. Click on the downloaded PDF and click the print icon. This printed page should be included with your items for
Cash receipt journals Cash payment/cash disbursement journals Three column cash book The petty cash book Analysis cash book General journals/journal proper a) Sales journals This is used to record credit sales of goods before they can be recorded in their various ledgers.
Net Cash (used in) Financing Activities (C) (128 (126 Net Increase in Cash and Cash equivalents (A) (B) (C) 1,151 29 Cash and cash equivalents Opening Balance 1,138 1,704 Effect of exchange differences on restatement of foreign currency cash and cash equivalents 24 (7) Cash and Cash equivalents -Closing Balance 2,313 1,726
An introduction to cash transfer programming 43 Red Cross and Red Crescent trends in cash transfer programming 46 Donor trends in cash transfer programming 47 Trends in cash transfer programming by sector and cluster 51 Annexes Annex 1. The cash for cash 55 The cash for work 55 Concerns about cash 56 The evidence-base 57 Annex 2.
BEC Higher Second Edition Bilingual Wordlist English and German Tapescripts Tapescripts Resulting Terms English Translation (be the) catalyst for (v) der Beschleuniger (with the utmost) discretion (n) die Diskretion adventurous (adj) abenteuerlich appraisal (n) die Beurteilung assertiveness (n) die Bestimmheit assumption (n) die Annahme attribute (n) die Attribute audience reach (n) die .
