Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — FY2023 Earnings Presentation
38 slides from Relais Group Oyj's earnings presentation, Mar 7, 2024
Slide 1: Financial Statements Review 2023
Relais Group Plc Financial Statements Review 2023 7 March 2024
Slide 2: Presenting today
Presenting today: Arni Ekholm Thomas Ekström CEO CFO 2
Slide 3: Content
Content • Relais in brief • Business review • Financial review • Relais as an investment
Slide 4: Relais in brief
RELAIS Relais in brief
Slide 5: Relais positioning
Relais positioning • We are vehicle aftermarket specialists operating in the Nordic region. • We are one of the biggest and most profitable growth platforms in this sector in Northern Europe. • We are focused on the vehicle aftermarket since we see the best value creation potential in that market. I
Slide 6: Relais Group target market
Relais Group target market Estimated market size in Nordic and Baltic countries: 20 billion €, 19 million vehicles* Pre-market Vehicle life cycle enhancement End-of-life Import and Customizing and Import & wholesale of Maintenance Operations and Demolition Manufacturing Vehicle reselling of vehicles
Slide 7: Relais Group companies
Relais Group companies Over thousand professionals in 6 countries Technical wholesale and products Commercial vehicle repair and maintenance
Slide 8: Sales by segment
Sales by segment FY 2022 FY 2023 % of % of 45% net 48% net 52% 55% sales sales Scandinavia Finland & Baltics Scandinavia Finland & Baltics EURm 135.6 125.0 EURm 155.9 128.3 Note: Totals of product groups may not add up due to minor other sales
Slide 9: Sales by business area
Sales by business area FY 2022 FY 2023 33% 32% % of % of net net sales sales 67% 68% Technical wholesale and products Technical wholesale and products EURm 175.1 85.6 EURm 192.4 91.9 Repair & Maintenance Repair & Maintenance Note: Totals of product groups may not add up due to minor other sales
Slide 10: Sales by product group
Sales by product group FY 2022 FY 2023 30% 32% 29% 33% % of % of net net sales sales 13% 17% 21% 24% EURm 85.6 33.1 62.1 78.9 EURm 91.9 48.4 59.8 83.2 Spare Parts Lighting Equipment Repair & Maintenance Note: Totals of product groups may not add up due to minor other sales
Slide 11: Business review 2023
RELAIS Business review 2023
Slide 12: Year 2023: Highest net sales and EBITA in the history of Relais Group
Year 2023: Highest net sales and EBITA in the history of Relais Group
Slide 13: Net sales and EBITA full year and Q4 2023
Net sales full year 2023 (2022) MEUR 284 (261) +9% EBITA full year 2023 (2022) MEUR 28.5 (23.0) +24% Net sales Q4/2023 (Q4/2022) MEUR 80.9 (75.2) +8% EBITA Q4/2023 (Q4/2022) MEUR 7.8 (6.2) +25% 13 Change percentages are calculated on exact figures before rounding up to millions of euros
Slide 14: Year 2023 in a nutshell
Year 2023 in a nutshell Positives: Negatives: • Net sales grew with 9% and EBITA with 24% • The wholesale market in Finland was soft through the whole year, partly due to the mild • The wholesale market in Scandinavia winter but also because of the general developed positively the whole year. Price
Slide 15: Q4/2023: Fourth consecutive quarter with double digit EBITA growth
Q4/2023: Fourth consecutive quarter with a double digit EBITA growth
Slide 16: Quarter 4 in a nutshell
Quarter 4 in a nutshell Positives: Negatives: • Q4 was the fourth consecutive quarter with a • The wholesale market in Finland continued double-digit EBITA growth (+26%) during 2023 to be soft • Net sales grew with 8% • The consumer demand for discretionary products was very weak in Finland, affecte
Slide 17: Operational excellence
Operational excellence • We enhanced our pricing policies and procedures in our wholesale operations in Finland and Sweden to defend and improve our gross profit. • We managed to improve the capacity utilization of both our commercial vehicle workshop chains, Raskone and STS by implementing determin
Slide 18: Strategy and financial target
Strategy and financial target
Slide 19: Financial target
Financial target Relais Group aims to reach a pro forma* comparable EBITA of 50 MEUR by end of 2025 * Including latest 12 months comparable EBITA of acquired businesses
Slide 20: Relais Group Strategy
Relais Group Strategy Growth by acquisitions Competent compounder: Active consolidation of the Nordic vehicle aftermarket sector Organic growth Operational Faster than the excellence market average Continuous development earnings growth of operations to grow supported by earnings and cash flow syner
Slide 21: Relais Group value creation model
Relais Group value creation model Accelerate growth I L D B U • Competence compounding • Accelerate organic and acquired N D • growth Y A BU Build great businesses • Further development of the acquired companies’ operations and capabilities • Full utilization of the synergies • Add-on acquisitions •
Slide 22: Strong growth track record
Strong growth track record Acquisition of: Strands Group AB Raskone Oy Lumise Oy Acquisition of: STS Sydhamnens Acquisition of: Adita Trailer Service AB Skeppsbrons AutoMateriell Trucknik AB Ecofoss Nordic Lift S-E-T JTC Acquisition of: ABR move to SEC Scandinavia A/S new premises Acquisition of AWI
Slide 23: Outlook 2024
RELAIS Outlook 2024
Slide 24: Outlook 2024
Outlook 2024 • The outlook for 2024 is largely dependent on external, macroeconomic and market demand factors: • Inflation is still on a relatively high level and the dramatically risen financing costs for businesses and households are affecting the purchase power of the customers and consumers nega
Slide 25: Financial review
RELAIS Financial review
Slide 26: Net sales and EBITA
Net sales and EBITA A year of strong and profitable growth Net sales EBITA MEUR MEUR +25% 100 +8% 10 80,9 8,4 8,0 8,0 7,7 7,8 80 73,5 75,2 8 7,5 69,0 70,3 62,1 64,8 64,1 6,2 58,7 58,6 5,7 5,7 60 53,5 52,1 6 4,8 4,1 40 4 3,4 20 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 27: Gross profit and gross margin
Gross profit and gross margin Improvement in both gross profit and margin in 2023½Business mix different in Q4 and 2023 MEUR MEUR Q4: 40 140 + Organic net sales increase and 128,9 35,3 acquisitions in Technical Wholesale 35 33,7 117,2 31,8 120 and Products in Scandinavia 30 99,6 ± Stable sales devel
Slide 28: Operating expenses
Operating expenses Increase mostly driven by acquisitions ½ Decreased opex % MEUR MEUR 25 24,3 24,4 90 88,0 83,4 21,7 80 20 70 66,7 60 15 50 32,4 40 32,0 10 31,0 29,5 30,1 30 28,0 5 20 10 0 0 Q4 21 Q4 22 Q4 23 2021 2022 2023 Opex Opex% Opex Opex%
Slide 29: Net working capital
Net working capital Reduced in relation to net sales MEUR +7% MEUR 12 2023 12 2022 67,8 69,7 70 67,1 67,1 65,0 62,7 62,6 59,2 58,4 Inventories 74.1 67.8 60 56,2 54,3 50 45,0 Trade and other receivables 45.5 36.9 40 Trade and other payables 52.5 41.9 30 20 Total net working capital 67.1 62.7 10 % of
Slide 30: Cash flow from operations and cash conversion
Cash flow from operations and cash conversion Positive impact from improved profitability ½ Less favourable development in Q4 NWC vs 2022 MEUR MEUR Q4 Full-year 20 -51% 2023 2022 2023 2022 17,2 CF before change in NWC 11.9 11.8 44.4 38.6 15 Change in NWC 1.1 9.0 -2.4 -0.1 11,0 10 8,4 7,7 CF from net
Slide 31: Cash flow summary 2023
Cash flow summary 2023 Increase in cash flow from operations Cash flow from investing Cash flow from financing Cash flow from operations activities activities EUR 30.6 (28.8) EUR -8.0 (-16.2) EUR -27.0 (-10.5) million million million + Improved profitability especially in the § Acquisition of the sh
Slide 32: Interest-bearing net debt
Interest-bearing net debt* Normal amortisation of interest-bearing loans and stable cash and liquidity Relais Group (IFRS) Restated MEUR +2.5% MEUR 2023 2022 160 156.5 153.3 151.0 Loans from financial institutions, l-t 88.8 95.7 147.3 139.7 142.4 139.3 143.9 144.4 140 129.9 132.4 Loans from financia
Slide 33: Net financials
Net financials Increase in net interest expenses offset by FX net gains in Q4 2023 MEUR Q4 Full-year § Net interest expenses 2023 2022 Restated* 2023 2022 Restated* increased due to the increase in reference Interest income and expenses -1.6 -0.6 -5.6 -2.7 interest rates on interest-bearing loans In
Slide 34: Balance sheet and financial position 31.12.2023
Balance sheet and financial position 31.12.2023 The Group's balance- Net debt excl. lease TheTotal Group’s equity equity sheet total liabilities EUR 329.1 (312.8) EUR 71.9 (103.9) EUR110.7 (63.7) EUR 87.9 (90.1) million million million million Net gearing excl. lease Equity ratio Cash assets liabili
Slide 35: Board of Directors' dividend proposal for 2023
Board of Directors’ dividend proposal for 2023 • The Board of Directors will propose to the Annual General Meeting to be held on 10 April 2024 that a dividend of EUR 0.44 (0.40) per share will be paid • The dividend is proposed to be paid in two equal instalments in April and November 2024 • Earning
Slide 36: Relais as an investment
RELAIS Relais as an investment
Slide 37: Relais as an investment
Relais as an investment • We are sector specialists and consolidate the Nordic vehicle aftermarket • We are one of the leading and most profitable growth platforms in this sector in North Europe • We have a long track record of doing successful acquisitions and making our companies grow • We have a
Slide 38: Q&A
Q&A