Volati Ab · OMXSTO:VOLO
Volati Ab — Q2 2022 Earnings Presentation
21 slides from Volati Ab's earnings presentation, Jul 18, 2022
Slide 1: Q2 Interim Report Apr–Jun 2022
Interim Report Q2 Apr–Jun 2022 Andreas Stenbäck, CEO Martin Aronsson, CFO 18 July 2022 1
Slide 2: A. Volati at a glance B. Quarter two update
A. Volati at a glance B. Quarter two update Volati Interim Report April – June 2022 2
Slide 3: Volati is a growing group of well-managed companies with strong earnings
Volati is a growing group of well-managed companies with strong earnings +37% Volati EBITA growth LTM Net sales, LTM Q2 2022 SEK 7,260 m EBITA, LTM Q2 2022 SEK 699 m Share of Share of +7% group ~43% ~57% group +58% EBITA EBITA, EBITA, Industry EBITA growth LTM LTM Q2 LTM Q2 growth LTM Volati Interim
Slide 4: Strong platforms active within a diversified group of segments
Strong platforms active within a diversified group of segments Industry, Volati’s largest Approximate EBITA distribution per segment segment, consists mainly of activities within the labelling ~10% Industry business, products for the agriculture and forestry industries and Infrastructure products fo
Slide 5: Volati is about long term value growth
Volati is about long term value growth • Build strong platforms through adding value to our units … • … while still ensuring a decentralized model, which has proven to work well in changing environments • Focused on shareholder value, thus restrictive with new share issues or in other ways diluting
Slide 6: A. Volati at a glance B. Quarter two update
A. Volati at a glance B. Quarter two update Volati Interim Report April – June 2022 6
Slide 7: Continued growth
Continued growth • Net sales growth +33% to SEK 2,180 million • EBITA growth +18% to SEK 226 million • Industry revenues +55% and EBITA +43% ─ Strong comeback with satisfying growth after a first quarter affected by the war in Ukraine and the strike in Finland • Salix Group revenues +15% and EBITA +
Slide 8: Financial development, Q2 2022
Financial development, Q2 2022 +33% +18% Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 2,180 m SEK 226 m SEK 114 m 2.2 x (Q2 2021: 1,641) (Q2 2021: 191) (Q2 2021: 95) (Q2 2021: 1.3x) Net sales, SEK m EBITA, SEK m 1800 200 1600 180 1400 160 140 1200 120 1000 100 800 80 600 60 400 4
Slide 9: Financial development, LTM Q2 2022
Financial development, LTM Q2 2022 Net sales CAGR +37% +43% 7,260 699 700 664 665 25% SEK m 597 (Q2 2021: 5,421) 600 20% 512 500 EBITA 421 15% 699 400 SEK m 312 300 (Q2 2021: 512) 257 10% 10,2% 10,5% 9,9% 9,6% 138 9,4% 200 8,6% 7,6% 7,5% Operating cash flow 5% 5,8% 391 100 SEK m 0 0% 2017 2018 2019
Slide 10: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is an average annual growth in The long-term target is a return on The target is a net debt/adjusted EBITDA2) EBITA2) per ordinary share of at least 15 adjusted equity2) of 20 percent1). ratio of 2 to 3 times, and
Slide 11: Two business areas with high growth focus
Two business areas with high growth focus Industry Consists of five separate businesses that Products in builder’s hardware, offer products and solutions for companies consumables, and materials for in grain management, dampness and construction, home and garden, packaging water damage management, l
Slide 12: Demand remains strong in the professional and industrial segments
Demand remains strong in the professional and industrial segments • Sales increased by 15% and EBITA by 1% over Q2 2022 • Healthy growth despite high comparative figures from last year 43% • Demand remains strong in the professional and industrial segments, some cautiousness in the consumer segment
Slide 13: Financial development, LTM Q2 2022
Financial development, LTM Q2 2022 CAGR +7% +24% 350 335 336 25% 326 329 312 300 265 20% 250 Net sales 15% 200 178 SEK 3,540 m 150 125 158 10% (Q2 2021: 2,990) 10,5% 10,4% 10,1% 9,9% 9,8% 9,5% 100 8,3% 7,8% 7,5% EBITA 5% 50 SEK 336 m 0 2017 2018 2019 2020 LTM Q2 LTM Q3 LTM Q4 LTM Q1 LTM Q2 0% (Q2 20
Slide 14: Industry
Business area Industry Strong underlying demand • Sales growth of 55% and an EBITA increase of 43%, vs. Q2 2021 • Underlying demand remains strong • Significantly lower direct effects from the war in compared to Q1 2022 57% • Material supply issues affecting Ettiketto Group during the quarter, howev
Slide 15: Financial development, LTM Q2 2022
Financial development, LTM Q2 2022 CAGR +58% +46% Business area 450 440 25% Industry 400 397 397 343 20% 350 300 278 Net sales 15% 236 12,6% 13,0% 3,723 250 12,0% 11,4% 11,8% 11,3% 10,6% 10,5% SEK m 200 179 8,9% 10% (Q2 2021: 2,434) 144 150 EBITA 100 79 5% SEK 440 m 50 0 0% (Q2 2021: 278) 2017 2018
Slide 16: Acquisitions LTM with a total annual turnover of SEK 1.1 billion
Acquisitions LTM with a total annual turnover of SEK 1.1 billion, SEK 800 million YTD Acquisition capacity Apisa Meag Va-system Jigraf Skipnes SEK +2.0 Bn. SALES SALES SALES SALES company value July 2021 150 October 2021 185 November 2021 30 January 2022 75 MSEK MSEK MSEK MSEK Gunnar Eiklid Terästor
Slide 17: Well positioned to continue the platforms through acquisitions
Well positioned to continue the platforms through acquisitions • Foremost an industrial buyer, growing our existing platforms through value adding add on acquisitions • Familiar with the industries we acquire within • Long term relations and dialogues ending up in transactions • Provides deal certai
Slide 18: Case Nibu
Case Nibu • Volati’s fifth and Salix’ second acquisition in 2022 • One of the leading specialist wholesalers in Norway within kitchen and interior fittings. • The company, founded in 1972, is headquartered in Skippestad, Norway, and is also represented in Kungsängen, Sweden, through SkanCo. • Streng
Slide 19: Capital structure
Capital structure • Equity of SEK 1,873, of which preference shares amount to SEK 828 million • Revolving credit facility of SEK 2,4 billion, whereof SEK 500 million unutilised • Overdraft facility of SEK 300 million of which SEK 175 million unutilised • Cash and cash equivalents amount to SEK 174 m
Slide 20: Summary
Summary Continuing to offer long term value growth • EBITA growth +18% in Q2 and +37% LTM per ordinary share • ROE of 37% Delivering on our growth journey • Acquisitions of Terästorni, MAFI and Nibu • Acquisitions the last 12 months have added annual sales of SEK 1.1 billion, SEK 800 million YTD Wel
Slide 21: volati.
volati.