presentation of bergs-capital market day 2021
TRANSCRIPT
COMPANY
PRESENTATION
9 MARCH 2021
Peter Nilsson, CEO
Anders Marklund, CFO
A GROUP IN CHANGE– FROM A SAWMILL COMPANY TO AN ACTIVE OWNER
OF COMPANIES IN WOOD SECTOR
2
BERGS CURRENT CORPORATE PROFILE
3
in net cash 2020, Dec 31
32 MSEK
Strong financial position with
212 MSEK,
10% margin
EBITDA 2020 was
manufacturing sites in Sweden,
Latvia, Estonia and UK
8
Products are processed at
independent subsidiaries within
wood related industry
7
Bergs has a portfolio of
with an ambition to grow
sustainable and profitable
2,146 MSEK
Net sales 2020 was
employees contributing
to a sustainable society
Bergs has
850
THE STRATEGIC JOURNEY
Business plans for
implementation of strategy
4
Acquisition of Norvik’s operation
in the Baltic states and UK
2018
Divestment of the Swedish
sawmill operations New ambition and financial
targets for the group
Wood Protection, Joinery and Sawn
Wood become Bergs’ product areas
5
STRATEGIC AGENDA
5
Bergs owns and develops companies in
wood related industry and logistics
Operations in three product areas;
Wood Protection, Joinery and Sawn Wood
Growth through identified planned
investments, acquisitions and product
development
Decentralised business model with
independent subsidiaries with clear
responsibility for results
6
Demand for sustainable products
Product and system development
for construction in wood
Interest for home improvements and DIY
POSITIVE TRENDS IN WOOD INDUSTRY
7
WOOD PROTECTION
▪ Treated wood for different areas
- treated wood, painted wood
- fire-retardant wood
▪ Special assortment of treated
and untreated wood to DIY
1,020 MSEK net sales
6.3% EBITDA-margin44%
JOINERY
▪ Custom-made doors and
windows
▪ Garden products
▪ Modular/attefall houses
274 MSEK net sales
9.5% EBITDA-margin12%
Note: Based on 2020 net sales and results. Additional 8% (179 MSEK) from pellet production and port operation in UK.
BERGS PRODUCT AREAS
SAWN WOOD
▪ To industry for construction and
interior
▪ Supply to wood protection
841 MSEK net sales
13.9% EBITDA-margin36%
▪ One of the largest supplier and subcontractor of wood protection in
Europe with production in Sweden, Latvia and UK
▪ Product development and research in collaboration with customers,
partners and institutes
▪ Bergs contributes with know-how of technology and extensive
experience of product performance
8
A PRIME MOVER IN WOOD PROTECTION
Cladding
88
15%
35%
25%
5%
5%
9
Bitus in Nybro, SwedenBergs production in Nybro is one of the largest site in Europe for Wood Protection
BERGS JOINERY PRODUCT OFFERING
10101 Triathlon Group analysis
Interest of outdoor environments
Appearance of wood
GARDEN PRODUCTS
5-10%Estimated annual market growth
of garden products in Europe1
43%
DOORS AND WINDOWS
Estimated market share of wooden
custom-made windows in UK1
Increased number of refurbishments
Preserve exterior and interior look
15-20%
46%
MODULAR/ATTEFALL HOUSES
Reducing construction time
Need for complementary buildings
5-10%Estimated annual market growth of
complement buildings in Sweden1
11%
▪ Wide range of garden products such as fencing, stairs and swimming pool kits
▪ Certified doors and windows in UK, Sweden, Iceland and Baltic states
▪ High quality and ready-to-use modular houses
▪ Launching garden furniture by Radical Wood
11
STRONG OFFERING WITH PROVEN PROFITABILITY
1111
25%
35%
5%5%
25%
12
Byko-Lat in Valmiera, LatviaBergs largest manufacturing site covering both Wood Protection and Joinery product areas
▪ Stands for 10% of the total sawmill production in Latvia with proven
profitability over time
▪ Supplier of sawn wood products for industrial customers
▪ Production in Estonia primarily supplies Byko-Lat in Latvia
▪ Strong relation with raw material suppliers including state forests
13
1313
Japan
15%
50%
SAWN WOOD
PRODUCTION WITH HIGH PRODUCTIVITY
14
Vika Wood in Talsi, LatviaBergs production at Vika Wood represents 10% of total sawmill production in Latvia
15
BERGS OTHER OPERATIONS
M25
Creeksea
port
London
76 MSEK net sales 3%
PORT OPERATION IN CREEKSEA, UK
▪ Logistic hub for wood products and steel with strategic
location near London and M25
▪ Provides unloading, storage, distribution as well as
wood protection (area of 182 000 m2)
▪ Operates 70-90 cargo vessels every year
PELLET AND HEAT LOG PRODUCTION
▪ Production and sales of pellets and heat logs for heating
of houses and animal bedding
▪ Yearly production of 125 000 ton pellets and heat logs
▪ Top of the line, fully automated production installed
2019 at Fågelfors with low production cost
6% 103 MSEK net sales 5%
FINANCIAL TARGETS
Annual growth of 10% over a business cycle,
organic and through acquisitions
9% over a business cycle
Normally 25-40% of the net profit of the year
DRAFTCONFIDENTIAL
Net debt lower than equity
16
Growth
EBITDA margin
Dividend
Financial net debt
CONTRIBUTION TO GROWTH
EXAMPLE OF INVESTMENTS
Identified investments of 500
MSEK are identified for organic
growth during 2021-2023
Bergs is actively looking for
acquisition opportunities
17
▪ Increase capacity for:
- Wood protection at Byko-Lat and for UK operations
- Linax and coating at Bitus
- Doors and windows manufacturing at Byko-Lat
- Planers at Bitus and Byko-Lat
- Garden products by re-building factory at Byko-Lat
▪ Increase sales and profit margins by
accelerating Bergs digital journey
▪ Investments for productivity improvements
BERGS DIGITAL JOURNEY
18
SIMPLIFIED
SALES
SUSTAINABLE
LOGISTICS
TARGETED
MARKETING
PRODUCTION
DEVELOPMENT
▪ Bergs has identified the opportunity with
digital technology
▪ Simplifying sales and logistics
▪ Woodworks by Bergs is pioneers in Bergs
digital technology
SUSTAINABILITY FOCUS AREAS
Contributing to a low-carbon society
Preserving resources
Caring for our employees Responsible
wood supply
Fossil-free world
Resource-efficient and
clean value chains
Safe and equitable
workplaces
Core values
and ethics
19
0fossil emission
by 2030
>80% of procured wood is
certified by 2024
Example of Bergs sustainability targets
-50%of work-related
accidents by 2025*
*Against baseline 2020, with ambition to eliminate work-related accidents
SUSTAINABILITY WITHIN BERGS
20
Long-term positive trend for
usage of wood products
Favourable position for growth in wood
protection and joinery product areas
Great knowledge of wood and the
willingness to build on product
development and digitization
Strong financial position
and good profitability
Planned investments of 500 MSEK
for organic growth 2021-2023
Contributing to environmental, social
and governance sustainability
WHY INVEST IN BERGS?
21
1. Build capacity for organic growth and
complementary acquisitions
3. Strengthen product development
and aftermarket services
2. Accelerate the digital journey
A GROUP IN CHANGE– FROM A SAWMILL COMPANY TO AN ACTIVE OWNER OF COMPANIES IN WOOD SECTOR
22
SOME OF OUR COWORKERS
Q&A
23
THANK YOU!