Slide 1: Q1 Interim Report January–March 2020
Q1 Interim Report January–March 2020 Mårten Andersson, CEO Andreas Stenbäck, CFO 5 May 2020 Volati Interim Report January–March 2020 1
Slide 2: Financial development in Q1 2020
Financial development in Q1 2020 Net sales, SEK million 2000 Net sales 1500 SEK 1,658 m (1,544) 1000 2018 2019 2020 500 0 EBITA Q1 Q2 Q3 Q4 SEK 62 m (37) 250 200 EBITA, SEK million 150 2018 2019 EBITA growth 100 2020 + 65% 50 0 Q1 Q2 Q3 Q4 Volati Interim Report January–March 2020 2
Slide 3: Q1 2020 in brief
Q1 2020 in brief • A strong quarter. EBITA increased by 65 percent and net sales by 7 percent. Good underlying operating performance in all business areas. • Our continuous work on ensuring strong sustainable earnings in our business units was a major contributor to the improved earnings in Q1. • Co
Slide 4: Financial development, LTM Q1 2020
Financial development, LTM Q1 2020 Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 6,947 m SEK 537 m SEK 626 m 1.9 x (2019: 6,833) (2019: 513) (2019: 523) (2019: 1.5) 8 000 600 7 000 500 6 000 400 5 000 4 000 300 3 000 200 2 000 100 1 000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 5: Long-term perspective
Long-term perspective Compound Annual Growth Rate of EBITA 2004-2019: 33 percent. Net sales EBITA 8 000 600 1 Preference share issue – SEK 850 m 537 513 7 000 2 New share issue – SEK 1,200 m 500 433 6 000 3 Bond issue – SEK 600 m 377 400 5 000 326 318 4 000 300 215 227 3 000 142 200 2 000 99 89 76 6
Slide 6: A value-adding business model
A value-adding business model Volati’s success has been created with a tried and tested business model that is the same today as when the company was founded in 2003. It is based on four mutually reinforcing fundamental principles. A strong operating …is used for further …at …and with a focus cash f
Slide 7: Trading
Business area Trading Q1 2020 in brief • Net sales increased driven by stronger demand in general and completed add-on acquisitions. • Strong earnings growth despite challenges from a weaker Swedish and Norwegian Krona. Successful work on pricing and cost efficiencies. 33% • All in all, the business
Slide 8: Consumer
Business area Consumer Q1 2020 in brief • Earnings improved driven by continued good profitability and a strong market position in the vehicle inspection business. • All in all, a stable quarter where an increased market size within the vehicle inspection business led to increased demand for the bus
Slide 9: Akademibokhandeln
Business area Akademi- bokhandeln Q1 2020 in brief • Demand developed positively during the first part of the quarter. As of mid- March, store sales was negatively affected by the coronavirus and on average 35 percent lower than normal for the period. • Good demand in the business area’s e-commerce
Slide 10: Industry
Business area Industry Q1 2020 in brief • Increased net sales and order intake, driven by a strong demand for the business area’s products. Contributions from all business units. • Focus has been on securing deliveries and maintaining high production rates under the prevailing circumstances. Some bu
Slide 11: Update on effects of the Covid-19 pandemic
Update on effects of the Covid-19 pandemic - from end of the quarter to the reporting date Business area Trading Business area Consumer • The business area continued to have good • The business area has not noted any demand in Sweden. Demand in Denmark, significant impact on the conditions for its F
Slide 12: Well-positioned for further acquisitions
Well-positioned for further acquisitions 626 Successful acquirer Proven ability to make major acquisitions, integrate acquired companies and deliver on the investment hypothesis. Operating cash flow, LTM Q1 2020 Ready for further acquisitions (SEK million) Volati’s acquisition agenda is run both cen
Slide 13: Creating value through acquisitions
Creating value through acquisitions Volati is focused on creating value through three types of acquisitions Add-on acquisitions for Add-on acquisitions for Platform business units business areas acquisitions • Volati – an industrial buyer • Volati – an entrepreneurial buyer • Volati – a financial bu
Slide 14: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is average annual growth in The long-term target is a return on adjusted The target is a net debt/adjusted EBITDA* EBITA per ordinary share of at least 15 equity* of 20 percent. ratio of 2 to 3 times as an average
Slide 15: Capital structure
Capital structure • Equity of SEK 2,339 million, of which preference shares SEK 828 million. • Preference shares of SEK 850 million giving right to SEK 64 million in annual dividends. • Revolving credit facility of SEK 900 million. • Overdraft credit of SEK 300 million. • Revolving credit facility a
Slide 16: Conclusions and steps ahead
Conclusions and steps ahead Giving companies the Strong start to the year • 65 percent growth in EBITA with contributions from all right conditions to grow business units. Uncertainty due to Covid-19 • We face the challenges from a strong position. ─ Profitable operations. ─ Strong financial positio
Slide 17: Volati – a growing Swedish Industrial Group
Volati – a growing Swedish Industrial Group Volati Interim Report January–March 2020 17
Slide 18: Volati Interim Report January–March 2020
Volati Interim Report January–March 2020 18