Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q1 2024 Earnings Presentation
39 slides from Relais Group Oyj's earnings presentation, May 8, 2024
Slide 1: Continued Strong and Profitable Growth
CONTINUED STRONG AND PROFITABLE GROWTH Relais Group Plc Interim Review January–March 2024 8 May 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 3
Slide 4: Relais in Brief
RELAIS IN BRIEF
Slide 5: Relais Positioning
RELAIS POSITIONING • We are vehicle aftermarket specialists and competent compounders • 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. It is al
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 & wholesale Import and Customizing and Maintenance Operations and Demolition Manufacturing of parts & reselling of vehicles
Slide 7: Relais Group Companies
RELAIS GROUP COMPANIES Over thousand Technical wholesale and products (67%) professionals in 6 countries Spareparts 30% Lighting and equipment 37% Commercial vehicle repair and maintenance (33%) 7
Slide 8: Strong and Profitable Growth
STRONG AND PROFITABLE Acquisition of: Acquisition of: Adita GROWTH Strands Group AB AutoMateriell Raskone Oy Nordic Lift Lumise Oy JTC STS Sydhamnens Trailer Service AB Acquisition of: Acquisition of: Trucknik AB Skeppsbrons Asennustyö M Acquisition of: Ecofoss Ahlqvist SEC Scandinavia A/S ABR move
Slide 9: Business Review Q1/2024
BUSINESS REVIEW Q1/2024
Slide 10: Q1/2024: Continued strong and profitable growth
Q1/2024: Continued strong and profitable growth
Slide 11: Q1 in a Nutshell
Q1 IN A NUTSHELL • Quarter 1/ 2024 was characterized by a strong growth of both net sales and EBITA. • The net sales of the Group grew with 20%. The organic growth was 12%. The comparable EBITA grew with 27% compared with last year. • The growth was supported by the exceptionally cold weather preval
Slide 12: Net sales, Comparable EBITA and ROCE
Net sales Q1/2024 Comparable EBITA ROCE Q1/2024 Q1/2024 MEUR 82.8 MEUR 9.7 16.7% +20% vs. +27% vs. +5,5 pp vs. Q1/2023 Q1/2023 Q1/2023 Net sales Comparable ROCE R12M EBITA R12M R12M MEUR 298 MEUR 30.9 +7% vs. 11.3% +1,3 pp vs. +5% vs. FY 2023 FY 2023 FY 2023 12 Change percentages are calculated on e
Slide 13: Technical Wholesale and Products
TECHNICAL WHOLESALE AND PRODUCTS • The sales grew with 29%. The organic growth was 16% and the rest of the growth came from the acquired companies Adita, AutoMateriell and Nordic Lift. • The cold weather in Jan-Feb contributed to a steep increase in sales of especially electrical spare parts and equ
Slide 14: Repair and Maintenance
REPAIR AND MAINTENANCE • The Group’s Commercial Vehicle Repair and Maintenance business area developed also positively, despite three less working days than last year during the March month. • The sales growth was 5%, and the gross profit levels were stable compared to last year. • The demand for ou
Slide 15: Sales by Segment
SALES BY SEGMENT 1-3/2023 1-3/2024 45% 46% % of net sales 55% % of net sales 54% Scandinavia Finland & Baltics Scandinavia Finland & Baltics EURm 38.0 30.9 EURm 42.9 36.3 15 Note: Totals of product groups may not add up due to minor other sales
Slide 16: Sales by Business Area
SALES BY BUSINESS AREA 1-3/2023 1-3/2024 36% 33% % of net sales % of net sales 64% 67% Technical wholesale and products Technical wholesale and products Repair and maintenance Repair and maintenance EURm 44.3 24.7 EURm 53.3 25.9 16 Note: Totals of product groups may not add up due to minor other sal
Slide 17: Sales by Product Group
SALES BY PRODUCT GROUP 1-3/2023 1-3/2024 28% 31% 29% 36% % of net sales % of net sales 21% 18% 14% 21% Lighting Equipment Lighting Equipment Spare parts Repair and maintenance Spare parts Repair and maintenance EURm 24.7 9.4 14.8 19.3 EURm 25.9 17.2 14.8 24.4 17 Note: Totals of product groups may no
Slide 18: Acquisitions
ACQUISITIONS
Slide 19: Acquisitions
ACQUISITIONS • We continued to scan the market for good acquisition opportunities. Hundreds Billions of • There are several interesting targets having a good strategic of companies EUR fit with us within the Nordic marketplace. turnover • We are on a regular basis actively contacting various busines
Slide 20: Acquisitions: Ahlqvist
ACQUISITIONS: AHLQVIST • Family company with a 30-year history of providing maintenance and repair services for heavy commercial vehicles and trailers in Southwest Finland. • Son of entrepreneur continues as Managing Director and Net sales EBIT member of Raskone’s management team. • Workshops are lo
Slide 21: Outlook 2024
OUTLOOK 2024
Slide 22: Outlook 2024
OUTLOOK 2024 • Even if the market demand for our products and services are on a stable level, there are still some macroeconomic factors which may potentially affect the markets negatively during the coming quarters. • The economic development in Finland is poor and there are also some signs of incr
Slide 23: Financial Review
FINANCIAL REVIEW
Slide 24: Net Sales and EBITA
NET SALES AND EBITA Strong and profitable growth continued Net sales EBITA MEUR MEUR +29% +20% 100 10 9.7 80.9 82.8 8.0 8.0 8.4 75.2 7.7 7.5 7.8 80 73.5 69.0 70.3 8 62.1 64.8 64.1 6.2 58.7 58.6 5.7 5.7 60 53.5 6 52.1 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 Q1 Q2 Q3 Q4 Q1 Q2
Slide 25: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN Significant improvement in gross profit ½Gross margin slightly lower due to different sales mix MEUR 40 38.2 35 Q1 32.1 30 28.1 46.5% 46.2% + Very strong organic net sales growth 25 in Technical Wholesale and Products 45.3% 20.5 + Good growth also in Repair and 20 Maint
Slide 26: Operating Expenses
OPERATING EXPENSES Increase mostly driven by acquisitions ½ Decreased opex% for second consecutive year MEUR 30 25.3 25 21.6 19.9 20 15 13.8 32.1% 31.3% 30.6% 10 25.8% 5 0 Q1 21 Q1 22 Q1 23 Q1 24 Opex Opex% 26
Slide 27: Net Working Capital
NET WORKING CAPITAL NWC turnover stable ½Acquisitions, inventory investments and inflation increase euro value MEUR 3/2024 03 2023 12/2023 MEUR +16% Inventories 73.1 66.4 74.1 67.8 69.7 68.8 70 67.1 67.1 65.0 Trade and other receivables 48.2 39.1 45.5 62.7 62.6 60 59.4 58.4 54.3 56.2 Trade and other
Slide 28: Cash Flow from Operating Activities
CASH FLOW FROM OPERATING ACTIVITIES Positive impact from improved profitability ½ Negative change in NWC MEUR 20 17.2 MEUR 1-3/2024 1-3/2023 2023 15 CF before change in NWC 13.9 11.4 44.4 -58% 11.0 Change in NWC -5.9 2.0 -2.4 10 8.4 7.7 6.7 CF from net financials -3.4 -2.4 -11.4 6.2 5.3 4.6 4.6 5 CF
Slide 29: Cash Flow Summary
CASH FLOW SUMMARY Decrease in cash flow from operations Cash flow from Cash flow from Cash flow from operations investing activities financing activities EUR 4.6 (11.0) EUR -0.7 (-1.4) EUR -3.3 (-3.0) million million million + Improved profitability • No material investments ± Normal repayments of l
Slide 30: Interest-Bearing Net Debt
INTEREST-BEARING NET DEBT Normal amortisation of interest-bearing loans and lower cash (=at year end 2023 level) Relais Group (IFRS) MEUR 3/2024 3/2023 12/2023 MEUR +0.9% Loans from financial institutions, l-t 87.6 95.2 88.8 160 156 153 147 151 142 143 144 144 145 Loans from financial institutions,
Slide 31: Net Financials
NET FINANCIALS Increase in net interest expenses and FX net losses (EUR 1,000) 1-3/2024 1-3/2023 1-12/2023 • Net interest expenses Financial income increased due to the increase in reference interest rates on interest- Foreign exchange gains 2,057 773 1,289 bearing loans Interest income 56 36 121 Ot
Slide 32: Balance Sheet and Financial Position March 2024
BALANCE SHEET AND FINANCIAL POSITION 31 MARCH 2024 Total assets Total equity Interest-bearing net debt EUR 324.0 million (321.2) EUR 111.7 million (105.8) EUR 144.6 million (143.3) Net gearing Equity ratio Cash assets 129.4 (135.4) 34.5 (32.9) EUR 10.3 (20.0) % % million 32
Slide 33: Events After the Review Period
EVENTS AFTER THE REVIEW PERIOD • 10 April 2024: Resolutions of the Annual General Meeting held on 10 April 2024 • 30 April 2024: Extension to Relais Group Plc's senior term and multicurrency revolving facilities agreement • 2 May 2024: Acquisition of all shares in Asennustyö M Ahlqvist Oy • 2 May 20
Slide 34: Relais as an Investment
RELAIS AS AN INVESTMENT
Slide 35: Relais as an Investment
RELAIS AS AN INVESTMENT Sector specialist, competent compounder Profitable and unique growth platform in Northern Europe Successful acquisition track record Strong profitability and cash flow Growing, defensive underlying market Own brands with growth potential Lean and effective operating model 35
Slide 36: Relais Group Value Creation for Shareholders
RELAIS GROUP VALUE CREATION FOR SHAREHOLDERS +83.1% Value creation per share after 13.55 € the IPO in 2019 0.22 € 1,38 € 7,40 € 1) 2) 11,95 € Upcoming dividend 2024 Dividends paid 2020-2024 Share price At IPO 2019 6 May 2024 Note: 1) As of closing 6 May 2024; 2) 2nd instalment of the dividend resolu
Slide 37: Stock Exchange Releases After Q1 Report
STOCK EXCHANGE RELEASES AFTER Q1 REPORT
Slide 38: Stock Exchange Releases After the Q1 Report on 8 May
STOCK EXCHANGE RELEASES AFTER THE Q1 REPORT ON 8 MAY 1) Share buy-back program 2) Liquidity providing agreement 3) New stock option plans 4) Change in the terms of the 2021 long-term incentive plan 38
Slide 39: Relais
RELAIS