Volati Ab · OMXSTO:VOLO
Volati Ab — Q3 2023 Earnings Presentation
18 slides from Volati Ab's earnings presentation, Oct 25, 2023
Slide 1: Q3 Interim Report Jul-Sep 2023
Q3 Interim Report Jul-Sep 2023 Andreas Stenbäck, CEO Martin Aronsson, CFO 25 October 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 +35% EBITA CAGR Volati since 2017 Net sales, LTM Q3 2023 SEK 7,917 m EBITA, LTM Q3 2023 SEK 778 m +14% ~32% +25% Ettiketto ~19% +53% Industri ~49% 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 Continued operations, Growth, Percent 86% 53% EBITA growth 35% Ø 39% 21% 2018 to 2022 13% 10% Q3 2023 YTD 2022 2021 2020 2019 2018 Organic net sales 10% 8% growth 4% Ø 5% 3% -3% -2% Q3 2023 YTD 2022 2021 2020 2019 2018 41% 36% Organic EBITA growth 18%
Slide 4: Proven track record of long-term value creation (cont.)
Proven track record of long-term value creation (cont.) MSEK EBITA Discontinued Operations EBITA Continued Operations CAGR 22% 778 710 664 490 488** 433 377 318 215 227 137* 89 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q3 2023 LTM * Excluding capital gain of SEK 189 m ** For years 2012-
Slide 5: Q3 – Continued Improved Margins and Strong Cash Flow
Q3 – Continued Improved Margins and Strong Cash Flow • We are showing a strong quarter in five out of six platforms, where we are growing our EBITA as well as improving our margins. • Despite that, because of a stronger slowdown than expected in our platform Communication, both revenue and profit fo
Slide 6: Financial Development, Q3 2023
Financial Development, Q3 2023 SEK -7% -6% +100 m Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 1,847 m SEK 191 m SEK 244 m 2.0 x (Q3 2022: 1,977) (Q3 2022: 203) (Q3 2022: 144) (Q3 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 7: Financial Development, LTM Q3 2023
Financial Development, LTM Q3 2023 +13% vs Q3 2022 LTM 800 778 25 Net sales 750 CAGR 710 700 7,917 +35% 664 650 SEK m 20 600 (Q3 2022: 7,544) 550 500 15 EBITA 450 421 778 400 SEK m 350 312 10 (Q3 2022: 690) 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 860 m 1
Slide 8: 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 9: 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 10: Salix Group
Salix Group • EBITA increased compared to last year for the first time in five CAGR -3% vs Q3 +14% 2022 LTM quarters and the EBITA margin during the quarter increased to 10% from 8% in Q3 2022. 4 000 25 • The demand in the quarter continues to be hampered due to the 3 598 3 466 3 500 current macro-e
Slide 11: Ettiketto Group
Ettiketto Group • Net sales decline of 3% for the quarter, increase of 5% during the 5% vs Q3 CAGR 2022 LTM last 12 months. +26% • EBITA margins increased by 5 pp to 21% in the quarter (20% 900 879 877 25 without electricity support), due to continued synergy realisation 800 and actively working wit
Slide 12: Industry
Industry • Sales declined by 9% in the quarter, and EBITA margin by 2pp, while +14% vs Q3 YTD sales is up 13% and EBITA margin is up by 1pp. CAGR 2022 LTM +40% • Three out of four platforms are performing well in the quarter with 4 000 25 increased margins and results 3 582 3 500 3 280 ‒ Corroventa
Slide 13: Strategic Acquisitions totalling SEK 2.9 Billion Since 2020
Strategic Acquisitions totalling SEK 2.9 Billion Since 2020 EBITA EBITA EBITA Industry ~49% ~32% ~19% 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 SALES Strongpoint SALES Corroventa Tornum S:t Eriks C
Slide 14: Case Gunnar Prefab AB
Case Gunnar Prefab AB • A Swedish family company, founded in 1995 • Annual sales of SEK~80 million • Acquisition result of a long-term dialogue, emphasizing the sustained effort necessary for success in M&A • A leading manufacturer and supplier of prefabricated concrete for infrastructure, Gunnar Pr
Slide 15: Strategic Acquisitions totalling SEK 2.9 Billion Since 2020
Strategic Acquisitions totalling SEK 2.9 Billion Since 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,
Slide 16: Continued Strong Position for Acquired Growth
Continued Strong Position for Acquired Growth Net debt, SEK m 1 988 1 888 1 907 1 760 1 812 1 632 • Good operational cash flow of SEK 244 million, SEK 100 1 344 1 017 1 049 1 024 million higher than the same period last year through 844 successfully reducing working capital. For LTM Q3 2023 this 561
Slide 17: Summary
Q1 – Byt Summary bild Solid second quarter in 2023 • 5 of 6 platforms increase EBITA and margin • YTD and LTM EBITA is up 13% for the group • Strong cash flow through successfully reducing working capital Focus on long-term value creation • Annual average EBITA growth of 39% for continued operations
Slide 18: volatl.
volatl.