Storskogen Group AB Class B · OMXSTO:STOR_B
Storskogen Group AB Class B — Q3 2022 Earnings Presentation
17 slides from Storskogen Group AB Class B's earnings presentation, November 2022
Slide 1: Storskogen Q3 2022
Storskogen Q3 2022 TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO November 2022 1
Slide 2: Storskogen in brief
Storskogen in brief Storskogen is an international group of businesses with an annual RTM net sales of SEK 36.5bn and EBITA of SEK 3.5bn, split across three business areas and 14 verticals Services Trade Industry Peter Ahlgren Christer Hansson Fredrik Bergegård NO. OF BUSINESS UNITS NO. OF BUSINESS
Slide 3: Q3 2022 highlights
Q3 2022 highlights Strong growth in a challenging environment KEY EVENTS NET SALES: ORGANIC NET SALES GROWTH YTD: • Four acquistions completed with combined annual net sales of SEK 258m SEK 8,417m 12.4% • A new, unsecured, syndicated term facility of EUR (+77%1) 300m entered into • Strategic focus o
Slide 4: Net sales and EBITA margin
Net sales and EBITA margin Demand remained good and profitability held up well despite high cost inflation and weak currency Financial development COMMENT 12,000 11.3% • Sales growth driven by 11,000 10.5% 10.4% acquisitions as well as underlying growth in 10.0% 10,000 9.7% 9.4% 9.2% 10% 9,000 8.3%
Slide 5: Market development
Market development Overall good demand with reasonable short-term outlook and a continued good transaction dealflow MACRO TRANSACTION MARKET and M&A Solid demand in Industry and Services General slowdown in the market Successful price increases and easing Increasing spread in multiples, across secto
Slide 6: Overview of financial targets
Overview of financial targets Storskogen’s focus is on operational excellence, balance sheet and cash flow going forward MEDIUM- Organic EBITA growth Adjusted Adjusted cash Interest-bearing net TERM EBITA growth: including EBITA margin conversion on an debt / TARGETS Real GDP acquisitions: (over tim
Slide 7: Services
Services Strong sales growth with sequentially improving margin NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 16% (YTD), organic EBITA growth 12,000 12% of -9% (YTD) 11,000 10.4% 10.0% 9.9% 10.1% 10,000 9.5% 9.6% 9.1% 9.2% 10% • Solid demand was reflected in strong sales g
Slide 8: Trade
Trade Improved market position in a challenging quarter with significant currency headwinds NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS 11.6% • Organic sales growth of 5% (YTD), organic EBITA growth 10,000 10.8% 11.4% 10.8% 12% of -15% (YTD) 10.5% 10.6% 9,000 10.0% 9.9% 10% • Generally dampened d
Slide 9: Industry
Industry Continued strong development with organic EBITA growth of 11% YTD NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 15% (YTD), organic EBITA growth 12,000 14% of 11% (YTD) 11,000 11.9% 12.1% 11,521 10,000 11.2% 11.3% 11.3% 11.1% 12% • Strong underlying market with goo
Slide 10: Key financial performance, Q3 2022
Key financial performance, Q3 2022 EBITA margin slightly down vs a strong Q3 2021. Price increases and cost efficiency partly offset cost inflation and currency headwinds. Q3 Q3 LTM Q3 SEKm 2022 2021 Chg., % 2022 RTM 1) COMMENT Net sales 8,417 4,744 77 30,453 36,472 • Net sales growth of 77% with Ad
Slide 11: Illustrative EBITA growth bridge – pro forma
Illustrative EBITA growth bridge – pro forma RTM EBITA of SEK 3.5bn today with slower acquisition pace ahead Illustrative; numbers based on latest annual financials SEKm 1 Includes acquisitions completed as per 30 September 2022 2 Includes acquisitions made since the end of the reporting period and
Slide 12: Operating cash flow and cash conversion
Operating cash flow and cash conversion Higher prices, strong sales and seasonally high inventory impacted cash flow in Q3. LTM cash conversion improving. Operating cash flow1 (LTM) COMMENTS 2,000 1,794 180% • LTM cash conversion of 50% 1,750 1,695 1,634 160% reflects continued above- normal working
Slide 13: Net debt and leverage
Net debt and leverage Leverage increased to 2.7x, within the target range of 2-3x. Ambition to reduce it in the short to medium term. Leverage ratio COMMENTS 18,000 4 • Interest-bearing net debt of 16,000 3.5 SEK 12.7bn, an increase of SEK 14,000 2.7 3 0.6bn during the quarter due 2.5 2.5 to acquisi
Slide 14: Completed acquisitions
Completed acquisitions Four acquisitions were completed during the quarter, with an additional four companies added since the end of September Acquisitions completed during Q3 Acquisitions completed since quarter-end Add-ons Add-ons EnergiStyret Digital Services joins Växjö Elmontage within Installa
Slide 15: The power of pooling expertise from 12,500 people
The power of pooling expertise from 12,500 people Storskogen Knowledge Exchange, KX, is an initiative to facilitate and promote knowledge sharing within the Group. KX currently consists of six domains headed by a domain lead from HQ. Example of ongoing initiatives within the Pricing procurement doma
Slide 16: Key takeaways
Key takeaways Good performance given challenging quarter. Continued focus on operational and financial improvements. Mixed picture with Industry strong, Services improving and Trade weaker Good performance given challenging macro environment Execution of calibrated M&A pace, four acquisitions comple
Slide 17: Q&A
Q&A TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO 17