«from single-family to multi –family houses? single-family house producers possibly need and...
TRANSCRIPT
«From single-family to multi –family houses? Single-family house producers possibly need and should enter the market! Why and how to take that step?
Experiences from Scandinavia
Ole Feet, previously CEO, BWG Homes AS
BWG Homes – a Scandinavian player
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The business: Affordable quality housing Residential projects in the outskirts of the larger cities Production of single homes for customers with land Streamlined construction processes Long-term profitability at moderate risks More than 80 years in business and 200,000 homes
produced
Operations in Norway and Sweden
Approx. 1 100 employees including 630 carpenters and production workers
Owned by OBOS BBL
Operating revenue 2014: NOK 4 billion
Sweden
BWG Homes AB in brief
Production of prefabricated single and multi-family homes
Two strong brands – Myresjöhus and SmålandsVillan. Nationwide representation
Modern production facilities in Myresjö, Vrigstad and Sundsvall producing volume panels and box units (modules)
Land bank capacity of approx. 1 500 units
Produces approx. 800 homes per year Focus on residential projects in growth regions as
well as sales and production of single homes Expanding business to highly standardized multi-
family homes to increase the market share and utilize the production capacity
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Myresjöhus brand
Established in 1927 Single home portfolio of 50 house models for
private customers with own plot of land. 60% of revenues
40% of revenues from residential projects, professionals and partners
Land bank capacity of approx. 1 500 units Panel based production in Myresjö factory Assembled at the building site
Marketing and sales
Construction 20 % prefab, 80 % on site
Project development
Acquisitionof land
Project
ideaDelivery
Project planning
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Hustype Kornett Hustype Accent
Hustype Lindgården
SmålandsVillan brand
Single home portfolio of 15 house models for private customers with own plot of land
93% of revenues from private customers with own plot of land. 7% of revenues from residential projects, professionals and partners
Box units (modules) produced in own factories in Vrigstad and Sundsvall
Completed at the building site; under roof within 1 day
Modules also used for row-houses and multi-family homes with two floors (Start Living concept)
Marketing and sales Project planning
Delivery
Construction 90 % prefab, 10 % on site
Project development
Acquisitionof land
Project
idea
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Start Living-concept – to be developed to 4 floors
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Kärnhem in brief
Established in 2003. Lean organization, based in Växjö. 40 employees, including project development and factory producing wall panels
Acquired by BWG in April 2013 Core business is development of residential
projects. House building performed by external contractors
90% of revenues from housing co-operative projects (BRF)
10% of revenues from own residential projects Land portfolio with capacity for approx.
1 300 units, mainly in the housing co-operative segment (BRF)
Produces approx. 150 homes per year
BRF Albinsroparken, Halmstad
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BRF Rynningsåsen, ÖrebroBRF Ullna Park, Täby
BRF Biskopskolonin, Växjö
Norway
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Block Watne in brief
Residential project development at affordableprices in the outskirts of larger cities and pressure areas
The strongest brand in the Norwegian market
Delivered approx. 100 000 homes since 1950
Produces approx. 550 homes per year
19 regional offices from Trøndelag and southwards
Row houses, multi-dwellings and low-rise apartments
97% of revenues from own residential projects
550 employees; including 350 carpentersResidential project Vardefjellet, Romerike
Same construction methods for all types of products
Residential projects: 97% of revenues.Land bank capacity of approx. 16,000 units
Single home portfolio of 24 house models for private customers with own plot of land
All construction at the building site; carried out by own employees
Marketing and sales
Construction on site
Project development
Acquisitionof land
Project
ideaDelivery
Project planning
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Experiences and how to succeed
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1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
E
2016
E
2017
E0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Detatched houses Multi unit houses
Total
Housing starts in Sweden 1992–2017
Source: Prognoscentret AB, September 2015
How to succeed - BWG experiences
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Wood is in itself an eco-friendly building material
Competence, dedicated staff, land bank and capital are fundamentals
Production of wood constructions is efficient and profitable due to easier administration and lower costs; assumed high degree of standardization
High degree of prefab production gives shorter construction period at the building site
Focus on continuous improvements in design and construction methods
How to succeed - BWG experiences, continued
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BWG achievements so far: More robust business with a wider
range of products Higher utilization of factories –
scaling effects Increased standardization Growing profitability
Going forward Home construction will be more
demanding due to more strict requirements to energy and environmental issues
Highly standardization and continuous improvements of products and production are key factors
Key figures BWG Homes AB
1H 2015 2014 2013
Revenues 1 083 MNOK 1 480 MNOK 1 319 MNOK
EBITDA 90 MNOK 73 MNOK 82 MNOK
EBITDA-margin 8.2% 6.0% 7.3%
Sales (units) 690 1 048 932
Homes delivered (units) 548 876 755
Thank you for your attention!
PAGE 19 BWG HOMES PRESENTATION