Volati Ab · OMXSTO:VOLO
Volati Ab — Q2 2023 Earnings Presentation
17 slides from Volati Ab's earnings presentation, Jul 17, 2023
Slide 1: Q2 Interim Report Apr-Jun 2023
Q2 Interim Report Apr-Jun 2023 Andreas Stenbäck, CEO Martin Aronsson, CFO 17 Juli 2023
Slide 2: 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% EBITA CAGR Volati since 2017 Net sales, LTM Q2 2023 SEK 8,047 m EBITA, LTM Q2 2023 SEK 789 m +14% ~31% +25% Ettiketto ~17% +58% Industri ~52% EBITA CAGR EBITA CAGR EBITA CAGR since 2017 Group since 2017 since 20171 Share o
Slide 3: Proven track record of long-term value creation
Proven track record of long-term value creation MSEK EBITA Discontinued Operations EBITA Continued Operations CAGR 23% 789 710 664 490 488** 433 377 318 215 227 137* 89 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2 2023 LTM * Excluding capital gain of SEK 189 m ** For years 2012-2019 EBI
Slide 4: Q2 in brief – Continued improved margins
Q2 in brief – Continued improved margins • Strong Q2 with EBITA increase of +10% compared to Q2 2022 and margin increase of 1 pp. ─ Industry delivers a strong second quarter with a sales growth of 15% and with EBITA increase of 20%, predominantly organic development. ─ Ettiketto Group continues to i
Slide 5: Financial development, Q2 2023
Financial development, Q2 2023 SEK +3% +10% +52 m Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 2,251 m SEK 249 m SEK 166 m 2.1 x (Q2 2022: 2,180) (Q2 2022: 226) (Q2 2022: 114) (Q2 2022: 2.2x) Net sales, SEK m EBITA, SEK m 2 250 250 2 000 1 750 200 1 500 150 1 250 1 000 100 750 50
Slide 6: Financial development, LTM Q2 2023
Financial development, LTM Q2 2023 +13% vs Q2 LTM 2022 800 CAGR 789 25 +37% Net sales 750 710 700 8,047 664 650 SEK m 20 600 (Q2 2022: 7,260) 550 500 15 EBITA 450 421 789 400 SEK m 350 312 10 (Q2 2022: 699) 300 10,5% 257 9,8% 250 9,2% 5,8% 8,6% 200 7,6% 7,5% Operating cash flow 150 138 5 SEK 760 m 1
Slide 7: 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 equity1) of 20 percent2). ratio of 2 to 3 times, and
Slide 8: Three business areas with growth focus
Three business areas with growth focus Industry Products and materials for Self-adhesive labels and Four businesses with leading builder’s hardware, machines for various market positions in their niches; consumables, construction, home applications; from decorative Products and solutions for grain &
Slide 9: Salix Group
Salix Group CAGR -1% vs Q2 • Sales decline of -7% in the quarter and -1% LTM. +14% 2022 LTM • EBITA margin during the quarter in line with Q2 2022. 4 000 25 • The demand in the industrial and professional segments has started 3 598 3 508 to slow down but is still relatively good. Continued weak dema
Slide 10: Ettiketto Group
Ettiketto Group +12% vs Q2 • Sales growth of 12 % LTM CAGR 2022 LTM +25% • EBITA margin increase of 2pp compared to Q2 2022 879 883 900 25 • Continued focus on extracting synergies and operational improvements from acquired companies 800 • Strong demand and solid order intake with Ettiketto Group 70
Slide 11: Industry
Industry • Strong quarter with 15% sales growth, 25% LTM +25% vs Q2 CAGR 2022 LTM • EBITA increased of 20% in the quarter, predominantly organic +58% 4 000 25 • The demand continues to be good, and the four units are performing well 3 663 • Tornum Group with a solid performance in the quarter 3 500
Slide 12: Acquisitions LTM with a total annual turnover of SEK 161 million
Acquisitions LTM with a total annual turnover of SEK 161 million EBITA EBITA EBITA Industry ~52% ~31% ~17% SALES Heco SALES Beneli January 2020 183 MSEK June 2020 156 MSEK SALES Pisla SALES Märkas September 2020 242 MSEK September 2020 168 MSEK Duschy Strongpoint SALES Corroventa Tornum S:t Eriks SA
Slide 13: Case Sweja Industriförnödenheter AB
Case Sweja Industriförnödenheter AB • A Swedish family company, founded in 1977 • Offers packaging and machine solutions to Swedish industry, with focus on the tape and stretch film segment • Annual sales of SEK~96 million • Alongside T-Emballage’s existing operations, the acquisition of Sweja gives
Slide 14: Acquired annual turnover LTM from 2020
Acquired annual turnover LTM from 2020 1 170 1 125 1 086 • M&A have over time contributed with 1 021 1 017 annual sales of SEK 700–1,200 million • Annual pace of 6–8 acquisitions 867 770 823 • Majority of the acquisitions are value 749 753 742 8 8 8 creating add-on acquisitions, enabling 7 7 substan
Slide 15: Continued strong position for acquired growth
Continued strong position for acquired growth Net debt, SEK m 1 988 1 888 1 907 1 760 1 632 • Operating cashflow of SEK 166 million in the quarter, an 1 344 1 017 1 049 1 024 increase of SEK 52 million compared to Q2 2022. An 893 844 increase of SEK 328 million during H1 2023 compared to H1 561 2022
Slide 16: Summary
Q1 – Byt Summary bild Solid second quarter in 2023 • EBITA growth of 10% • EBITA margin increase of 1 pp • Strong cash flow through successfully reducing working capital Focus on long-term value creation • Annual average EBITA growth of 37% for continued operations during the last 5 fiscal years, of
Slide 17: volatl.
volatl.