BYGGMAX DIGITAL CAPITAL MARKETS DAY

23 March 2021

MATTIAS ANKARBERGCEO Byggmax Group

SANNA WESTMANHead of Marketing Byggmax Group

HELENA NATHHORSTCFO Byggmax Group

SPEAKERS

3

Summary and updated targets

Accelerating trends− Discount− e-com− Home

Financials

Way forward

Q&A

AGENDA

5

Best price * Right assortment * Quick & easy * We care

EVERYBODY HAS THE RIGHT TO A FANTASTIC HOME

6

DISCOUNT KEEPS GROWING

Discount stores

Otherstores

+7%

-7%

Change in number of storesSweden

Source: Svensk Handel, Byggmax consumer research

7

BYGGMAX IN NUMBERS

6.8BILLION SEK SALES 2020

4MARKETS AND

2 SEGMENTS

169BYGGMAX STORES

2020

20%GROUP E-COM SHARE OF

SALES 2020

No 1PRICE PERCEPTION

IN DIY SE/NO/FI

No 1SUSTAINABLE BRAND

INDEX 2020

+29%SALES GROWTH

2020

+50%BYGGMAX E-COM

SALES GROWTH 2020

8

SUCCESS STORY WITH NEW MOMENTUM

0

1

2

3

4

5

6

7

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sales, SEK bn

Start (‘93) Rebrand Byggmax (‘99) Enter NO (‘07), FI (‘08)Launch e-com (‘07)

Byggmax 2.0 launched (‘13)

Acquire Buildor (‘15) & Skånska Byggvaror(‘16)

Garden & small town format (’17)

Store 3.0 & new branding (’18-’19)

IPO (’10)

─ Strong market boosted by “stay home” effect during covid-19 pandemic

─ Recently published data on consumer DIY market in Sweden and Norway confirm Byggmax market share gain

─ Byggmax Group reported sales +29%, currency effect -3%-p.o Byggmax +29%o Skånska B. +25%

9

19 20

32

Byggmat Virke Local FxByggmax Group local currency

Note: sales development 2020, percent

B2C DIY mktSweden

B2C DIY mktNorway

MARKET SHARE GAINS 2020

Turn around Skånska Byggvaror─ 10 consecutive quarters of profit growth

Turn around Byggmax Finland─ Now profitable and growing

Upgrade tech platforms─ Supply, ERP, POS, online

Reduce net debt ─ Cut over 1/2

10

OLD MISHAPS FIXED

GROWTH IN PROGRESS

Modern discount for today’s DIYers→ Home improvement projects

(not building materials)

→ Quality experience (not cheap)

→ Best of stores & e-com

→ Still lowest price!

11

12

+90%

Storage Paint Power tools Hand tools

Garden Garden buildings

Stone Electricity Online excl. flooring

+50% +40% +40% +70% +40%

+70% +70% +50% +40%

Lighting

MORE RELEVANT FOR TODAY’S DIY-ERS

Note: sales development 2020

14

DENMARK ENTRY AND NEW INITIATIVES ADD TO POTENTIAL

e-com growthByggmax CompactDenmark entry

Acquisition completedByggmax as of Jan 2021

New store formatLaunch 2022

New wave e-com effortsLaunch Q1-3 2021

39%

100%

2020 Potential

SEK 4-5 BN SALES POTENTIAL FROM EXISTING INITIATIVES

169

280

Q3 2020 Potential

50 000

150 000

Q3 2020 Potential

Store 3.0 % of portfolio

SEK ~200 m

Number of stores

SEK 2.5-3.5 bn

+

>

e-com assortment

SEK ~1.5 bn

15

Store upgrades Store expansion e-commerce

2020 2020

SEK ~3bn potential in proven Byggmax initiatives

SEK 1-1.5bn from Denmark, Compact and next wave e-com

Move towards– More stores– Upgraded stores– e-com 1/3 of Group

sales

169

UPDATED FINANCIAL TARGETS

16

Sales +10-15% organic growth per year

SEK 10bn 2025

EBITA margin 7-8% 7-8%

Net debt / EBITDA RTM EBITDA, ex. IFRS16

- <2.5x

DividendShare of net income

50% 50%

CO2From goods transports, per ton km vs. 2010

- -70% 2030

5.3 bn

5.4%

3.1x

-SEK 1.16 proposal canceled in

covid-19 precautions

-23%

Previous targets New targets 2019

6.8 bn

10.3%

0.6x

2.75Board proposal

-32%

2020

OUR MID TERM AMBITION

18

Drive profitable organic growth─ Towards modern discount for today’s DIY-ers─ Continue take market share in Nordic DIY─ Combine best of stores and e-com

Generate significant cash & shareholder returns

Explore further growth opportunities connected to our core Byggmax business

1.

2.

3.

19

New store 2017 New store 2019

MODERN DISCOUNT FEELS LIKE PREMIUM

Updated assortment * Higher quality perception * Still lowest price!

20

EVERYBODY LIKES THE UPGRADE

+4%-POINT BYGGMAX BRAND

CONSIDERATION (TWO YEARS)

+10POINTS BYGGMAX NPS

DEVELOPMENT (TWO YEARS)

22

E-COMMERCE +50% 2020

– Everybody has the right to a fantastic homeBest price * Right assortment

Quick & easy * We care

– Customer decides how & when to shop

– Much progress last two years: new site, larger assortment, more delivery options

– Byggmax e-com sales +50% 2020

OPPORTUNITY, NOT A THREAT

23

Byggmax Bauhaus Home Depot (US)

+ 50 000

+ 1m

150 000

Store e-com

– Wider assortment range

– Stores: for most common home improvement projects

– e-com: for all home improvement projects

– More customer segments

SKUs

24

BYGGMAX E-COM AT A GLANCE

Sales SEK 650m

+50% 2020

11% share of Byggmax

sales

Profitable?– Clearly– Increasing– Below average

Orders 239,000

+72% 2020

AOV SEK 2,700

-13% 2020

+50,000SKUs available

online

50%of sales from online

exclusive assortment

BEST CUSTOMER OFFER

25

Product Price Site Deliveries

Infrastructure

Building a platform for quick & easy shopping of a wide assortment – at the best price

DELIVERY OPTIONS DRIVE SALES

26

Many new delivery options introduced last three years– Express, chose day, flex– Parcel to pick up point– Collect@store

New options meet new customer needs and drive sales

Fastest growth outside historical core (large goods)

Collect@store preferred by many 2020, 18% of orders (11%)29 42

94

1441

9

15

43

2019 2020

Large goods

Online exclusive

Small goods

collect@store

Hom

e de

liver

y

139

239

2019 2020

+72%

3x

15x

+54%

+45%

OrdersThousands

27

fulfillment center

100% of heavy building materials shipped from store

collect@storegrowth 2020

showrooming

3x samples of online exclusive flooring

dense infrastructure

169 multi-purpose stores 2020, in Sweden, Norway, Finland

pick-up point

3x

BUILDING E-COM PHYSICALLY

customer acquisition

+15% e-com sales when a new store opens

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High Nordic DIY spend─ High taxes & expensive craftsmen─ Many own multiple houses─ Long DIY tradition

DIY for money and pleasure ─ Save money (67%)─ Result is how I want it (37%)─ It’s fun (36%)

Nordic DIY market ca SEK 120bn─ Nordic B2C building materials ca SEK 75bn ─ Developed ca as GDP over (long) time

Price, store proximity and online is key─ Price & value no 1 consumer criteria ─ Proximity of store location also key ─ Customers increasingly digital

LARGE NORDIC DIY MARKET

Nordic B2C building materials ~75bn

Nordic DIY ~120bn

Nordic home improvement SEK ~300bn

Nordic B2B building materials ~110bn

30

HIGH INVOLVEMENT, CHANGING BEHAVIORS

Source: Byggmax consumer research

46AVERAGE AGE OF

SWEDISH DIY-ERS

1/10 ALWAYS USE

CONTRACTORS

Do the fun part- More small DIY projects- More DIFM for larger, more

complex projects

Don’t fool me- Consumers source materials, also

when using contractors

Shift to value- Discount gaining share - Particularly with younger

Digitalization- E-commerce gaining share

70%LIKE TO BUILD TO

CREATE A BETTER HOME FOR THEIR FAMILY

75%HAVE BUILT SOMETHING

LAST YEAR (70%)

31

NICHE POSITION WITH TRADE AND BIG BOX AS MAIN COMPETITORS

Trade Big box Online onlyHardware +

− Lowest price− Quick & easy− Close by− Leading e-com− We care

− Service− Competence− Individual pricing

− Wide range – “one stop” and options

− Low price

− Wide range− Good online experience

− Stores in retail areas− Wide home & hardware− Low price

Building materials

Home & interior

B2B B2C (+ B2B) B2CB2CB2C

Offer building materials

32

ACCELERATING TRENDS

1. Home bigger role in consumers’ lives

5. E-com accelerating

2. Consumers spend on homes

3. New generation DIYers

4. Discount accelerating

FINANCIALS

• Growth initiatives

• Cost efficiency

• Financial position

34

RECORD SALES GROWTH & MARKET SHARE GAIN 2020

35

~20%Market growth 2020

Byggmax growth~32%

Increased Byggmax NPS (2 yrs.)10UNITS

Upgrades

New stores

E-comMarket6.8

Billion SEK sales 2020

PROVEN INITIATIVES FOR ORGANIC GROWTH CONTINUE

36

• 39% of store portfolio 2020 and target 100% upgraded stores by end of 2023

• Updated assortment and improved customer experience

• Strengthened GM following favorable product mix

• Capex ~1m per store

• +6% sales per “Store 3.0”

• Scalable online business

• Strong momentum and high ambitions

• Wider assortment, updated site and new delivery options

• Negative GM mix effects

• Low technology and platform capex

• Byggmax e-commerce +50% sales growth 2020

• Total potential of 280 stores in existing markets

• Skewed opex and capex burden, profitability after 2 years

• Sales maturity after 3 years

• New stores contributed with 4-5% sales growth in the last years

• Capex 4-6m per store

• 10 new stores in 2020

STORE UPGRADES E-COMMERCE NEW STORES

BYGGMAX HAS THE LOWEST OPEX IN THE INDUSTRY

37

• Strong culture of cost consciousness in combination with our self-service store format generates lowest opex in the industry and enables profitability as discount player

TRACK RECORD OF EFFICIENCY IMPROVEMENT

38

• We continuously invest in efficiency, generating savings through modernising the way we work, and upgrading technical platforms to keep efficient low cost organisation.

• Our stores from 2016 show a flat opex trend despite inflation, rent indexation etc. Indexed opex 2016-2020 varies between 98-100.

• 2020 proved scale effects in opex

• Cost increase mainly driven by new stores and growth initiatives

LFL 27.8%

LFL 4.5%

SALES GROWTH AND SCALE EFFECTS

39

• 2020 net sales growth of 28.9%. Currency effect of -3pp

• Gross margin further strengthened +0.5pp vs last year’s all-time-high

• Solid cost control• Despite record sales growth operating expenses

saw an increase of merely SEK 101m or 10% YoY• Cost share of sales decreased 2.8pp vs 2019

• EBITA margin doubled at 10.4%

Byggmax Group, SEK M 2020 2019

Net sales 6 801 5 277Net sales YoY % 28.9% 3.3%

Total revenue 6 827 5 287

Cost o f goods so ld -4 584 -3 586Gross marg in 32.6% 32.1%

Operat ing expenses -1 108 -1 007Cost of sales % -16.3% -19.1%

Depreciat ion -430 -425

EBITA 705 270EBITA-margin, % 10 .4% 5.1%

Full year

STRONG CASH FLOW

40

• 2016 – 2020 cash flow generated from operating activities amounted to SEK 1.9bn

• The seasonal pattern expected to continue and to peak in Q2

• Cash flow from operating activities expected to remain strong

HEADROOM FOR FURTHER GROWTH INVESTMENTS

41

• Capex spend of SEK 800m last 5 years

• Average annual capex SEK 160m, underlying maintenance capex low. Capex mainly driven by initiatives

• We will continue to invest in proven growth initiatives• Upgrades• E-com• New stores

1mCAPEX PER STORE UPGRADE

4-6mNEW STORES CAPEX PER STORE DEPENDING ON FORMAT

160mAVERAGE ANNUAL CAPEX SPEND 2016-2020

38mSTORE MAINTENANCE CAPEX 2020

STRONG BALANCE SHEET

42

• Strengthened balance sheet with a significant reduction in net debt

• Net debt SEK 0.5bn Q4 2020 (SEK 1.2bn)

• Net debt/EBITDA variation between 3.2x and 0.6x

• Allows for operational flexibility, organic growth and dividend in line with financial target

44

Best price * Right assortment * Quick & easy * We care

EVERYBODY HAS THE RIGHT TO A FANTASTIC HOME

IN A GOOD SPOT NOW

45

STRONG POSITION– Price leader – no 1 in Nordic hard DIY– Lowest cost operator in our industry– Successful both in stores and online– Favorable trends: discount, home, e-com– Strong balance sheet

STRATEGY WORKS– Old mishaps fixed– “Modern discount” drives share gains– e-com momentum +50% 2020– Strong scale effects demonstrated

39%

100%

2020 Potential

SEK 4-5 BN SALES POTENTIAL FROM EXISTING INITIATIVES

169

280

Q3 2020 Potential

50 000

150 000

Q3 2020 Potential

Store 3.0 % of portfolio

SEK ~200 m

Number of stores

SEK 2.5-3.5 bn

+

>

e-com assortment

SEK ~1.5 bn

46

Store upgrades Store expansion e-commerce

2020 2020

SEK ~3bn potential in proven Byggmax initiatives

SEK 1-1.5bn from Denmark, Compact and next wave e-com

Move towards– More stores– Upgraded stores– e-com 1/3 of Group

sales

169

OUR MID TERM AMBITION

47

Drive profitable organic growth─ Towards modern discount for today’s DIY-ers─ Continue take market share in Nordic DIY─ Combine best of stores and e-com

Generate significant cash & shareholder returns

Explore further growth opportunities connected to our core Byggmax business

1.

2.

3.

NEW INITIATIVES CONNECTED TO OUR CORE BUSINESS

48

e-com growthByggmax CompactDenmark entry

Acquisition completedByggmax as of Jan 2021

New store formatLaunch 2022

New wave e-com pushLaunch Q1-Q3 2021

49

DENMARK IS A GOOD FIT

Denmark – increased potential for organic growth and scale effects

─ Good size DIY market and good fit with Byggmax: price conscious consumers, good product overlap, competition we know

─ Possible to serve through Byggmax existing supply chain and warehouse structure

─ Entry through own e-com and acquisition of NæstvedLavpristræ (“NLT”)o NLT sales ca DKK 125m and 30% e-com, organic

growth at good profitabilityo Byggmax branded Danish e-com

BYGGMAX COMPACT – CLOSER TO CUSTOMERS’ HOMES

50

All you need for the most common home improvement projects– Building materials…– Flooring, garden, paint, electricity,

storage, tools, etc.

Closer to customers’ homes– Retail parks – ca 4,000 sqm – All indoors possible– Still store + drive-in

51

Content

How-to-guides, instructions and shopping lists for +200 projects

First 80 projects launched endQ1 2021

Deliveries

Full visibility on delivery status & Byggmax proactively monitors

Launched Q1 2021, rolled out by Q3 2021

Assortment

Add brands and private label (e.g., bathroom, garden furniture)

First new PL range launched by Q2 2021

NEXT WAVE OF E-COM GROWTH

52

– Byggmax combines low prices with high sustainability ambitions

– Integrated in our operations and impacts what we do every day

– Good development in several areas, and more to do

… BUT WHAT ABOUT SUSTAINABILITY?

UPDATED FINANCIAL TARGETS

53

Sales +10-15% organic growth per year

SEK 10bn 2025

EBITA margin 7-8% 7-8%

Net debt / EBITDA RTM EBITDA, ex. IFRS16

- <2.5x

DividendShare of net income

50% 50%

CO2From goods transports, per ton km vs. 2010

- -70% 2030

5.3 bn

5.4%

3.1x

-SEK 1.16 proposal canceled in

covid-19 precautions

-23%

Previous targets New targets 2019

6.8 bn

10.3%

0.6x

2.75Board proposal

-32%

2020

INVESTMENT CASE

54

Byggmax is the discount leader in a lively and attractive DIY market─ No 1 hard DIY discounter in the Nordics─ Lowest cost operator in the industry─ Home is more important and discount keeps growing

“Modern discount” drives share gains and profitable growth ─ Old mishaps fixed, now moving to modern discount for today’s DIY-ers─ Strategy works: market share gains and strong scale effects 2020

We are successful both in stores and online

Journey towards SEK 10bn 2025 builds on proven initiatives ─ Proven growth initiatives have more to give─ Denmark entry and new initiatives add potential, 1/3 e-com in sight

Strong cash generation to fund organic growth – and dividends

1.

2.

3.

4.

5.