Storskogen Group Ab Class B · OMXSTO:STOR_B
Storskogen Group Ab Class B — Q1 2025 Earnings Presentation
28 slides from Storskogen Group Ab Class B's earnings presentation, May 6, 2025
Slide 1: Storskogen Q1 2025
Storskogen Q1 2025 May 2025
Slide 2: Today's presenters
Today’s presenters Christer Hansson Lena Glader CEO CFO 2
Slide 3: Storskogen in brief
Storskogen in brief Storskogen is an international business group with YTD net sales of SEK 33.8bn and adj. EBITA of SEK 3.2bn, split across three business areas consisting of business units averaging SEK ~300m1 in sales Services Trade Industry NO. OF BUSINESS UNITS NO. OF BUSINESS UNITS NO. OF BUSI
Slide 4: Highlights
Highlights Q1 in line with last year, positive margin trend continues Key highlights NET SALES, Q1: ORGANIC NET SALES GROWTH, YTD: • Cash flow seasonally softer – LTM SEK 7,940m 1% cash conversion ahead of target (-5%1) (-6%2) at 88% • Positive Y/Y margin trend ADJ. EBITA, Q1: ORGANIC EBITA GROWTH,
Slide 5: Cash flow remains solid
Cash flow remains solid Cash flow from operations, LTM (SEKm) 3,098 3,102 3,004 3,007 2,876 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 5
Slide 6: Net sales and EBITA margin
Net sales and EBITA margin Q1 seasonally softer with slight positive organic sales growth Financial development COMMENT 10,000 10% • Sales in line with seasonal 9.9% 9,000 9.7% 9.4% 9.6% 9.7% 9.7% 9.8% 9% patterns 9.2% 8.8% 8,000 8.7% 8% 8.2% 8.4% • Divestments (-6%) and 7.8% 7,000 7% organic growth
Slide 7: Our diversified approach
Our diversified approach Diversified mix supporting overall positive margin trend Adj. EBITA margin by business area, LTM Group adj. EBITA margin, LTM 13 11 12 11 10.1 10.2 10 9.7 9.6 10 9.4 9.4 9 9.6 9.4 8 9.0 7 9 8.9 8.7 8.7 1 0 0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q
Slide 8: Services
Services Profitability focus resulted in positive organic EBITA growth Key highlights NET SALES, Q1: ORGANIC NET SALES GROWTH, YTD: • Profitability focus and divestments SEK 2,134m -6% yielded positive margin effects (-14%1) (-3%2) • Divestments affected Q1 sales by -8% • Business Services saw solid
Slide 9: Trade
Trade Positive organic sales and EBITA growth Key highlights NET SALES, Q1: ORGANIC NET SALES GROWTH, YTD: • Profitability focus yielding positive Y/Y SEK 2,240m 3% effects (-4%1) (-6%2) • Divestments affected Q1 sales by -6%, offset by organic growth ADJ. EBITA, Q1: ORGANIC EBITA GROWTH, YTD: • Pro
Slide 10: Industry
Industry Sales in line with last year but negative organic EBITA growth for the quarter Key highlights NET SALES, Q1: ORGANIC NET SALES GROWTH, YTD: • Y/Y margin declined due to a slow SEK 3,579m 4% start to the year for Industrial (1%1) (-8%2) Technologies and Automation • Product Solutions saw sal
Slide 11: Current geographical mix
Current geographical mix Sales distribution1 Share of sales, split by business area1 Finland 2% Other non-EU 4% Sweden Switzerland 5% 46% Denmark 4% US 5% Germany 8% 29% 65% 28% 50% 43% 29% Other EU 8% Norway 9% Services Trade Industry UK 10% Share of total Group sales Share of business area sales i
Slide 12: Achieving resilience and profitable growth
Achieving resilience and profitable growth Increasing Increasing Increasing exposure to exposure to geographical exposure selected investment non-cyclical outside Sweden themes businesses Profitable growth and resilience 12
Slide 13: Improving resilience in the portfolio
Improving resilience in the portfolio SERVICES TRADE INDUSTRY Health and wellbeing Automation Energy and sustainability Digitalisation Infrastructure 13
Slide 14: Financial update
Financial update 14 14
Slide 15: Financial summary, adjusted for IAC
Financial summary, adjusted for IAC Y/Y sales declined due to divestments; profit growth was supported by lower financial items and efficiency gains SEKm, reported Q1 25 Q1 24 Chg., % Net sales 7,940 8,358 -5 Raw material and supplies -4,169 -4,455 -6 Other external expenses -956 -985 -3 Personnel e
Slide 16: Financial summary, reported
Financial summary, reported FY EBITA in line with last year, improved PBT largely due to lower net financial items SEKm, reported Q1 25 Q1 24 Chg., % Net sales 7,940 8,358 -5 Raw material and supplies -4,169 -4,455 -6 Other external expenses -956 -985 -3 Personnel expenses -1,944 -2,095 -7 Other inc
Slide 17: Q1 sales bridge
Q1 sales bridge Negative Y/Y change explained by divestments SEKm -5% 8,358 0% 0% 1% -6% 7,940 Net sales, Q1 24 Organic growth FX Acquisitions Divestments Net sales, Q1 25 17
Slide 18: Q1 EBITA bridge
Q1 EBITA bridge Relatively unchanged Y/Y as negative organic growth in Industry was offset by divestments SEKm -1% 0% 0% 703 3% -4% 700 Adj. EBITA, Q1 24 Divestments FX Acquisitions Organic growth Adj. EBITA, Q1 25 18
Slide 19: Condensed cash flow
Condensed cash flow Cash flow from operating activities in line with last year, with a seasonal effect of a change in WC offset by lower taxes paid; capex/sales of 1.9%. SEKm Q1 25 Q1 24 Chg., % LTM Profit before tax 305 198 54 600 Adjustment for non-cash items 414 461 -10 2,850 Income tax paid -170
Slide 20: Operating cash flow and cash conversion
Operating cash flow and cash conversion Cash flow seasonally lower and cash conversion (LTM) trending closer to target Operating cash flow1 (LTM) 5,000 140% 4,500 120% 4,000 102% 101% 99% 96% 93% 94% 100% 3,500 85% 88% 3,000 70% 80% 2,500 57% 60% 2,000 49% 1,500 40% 1,000 20% 500 1,766 2,334 3,099 3
Slide 21: Condensed balance sheet
Condensed balance sheet Strengthened Y/Y by net debt and working capital reduction, and a goodwill write-down related to divestments SEKm Mar 25 Mar 24 Chg., % Dec 24 Total non-current assets 28,988 30,880 -6 29,797 Total current assets 12,757 14,192 -10 13,383 Total assets 41,746 45,072 -7 43,180 T
Slide 22: Net debt and leverage
Net debt and leverage Net debt and leverage ratio in line with Q4 in the seasonally softer first quarter Leverage ratio 20,000 2.8 3 2.7 2.6 15,000 2.6 2.6 2.6 2.5 2-3x leverage 2.3 2.3 target range 10,000 2 5,000 12,125 11,896 11,706 10,902 11,510 11,171 10,917 9,693 9,887 0 1 Q1 23 Q2 23 Q3 23 Q4
Slide 23: Key takeaways
Key takeaways Progress in 2024 created a solid foundation Seasonally slower quarter as expected – margin expansion and continued strong cash flow (LTM) – looking ahead to a stronger Q2 Continued focus on operational value drivers to improve market positions, and to deliver organic EBITA growth and s
Slide 24: % g Fd g —~
5 % 8 g Fd g —~ 3
Slide 25: Appendix
Appendix we a mh storskogen
Slide 26: Financial development per business area
Financial development per business area Services Trade Industry 15,000 12% 15000 12% 15000 12% 14,000 14000 14000 13,000 13000 13000 10% 10% 10% 12,000 12000 12000 11,000 11000 11000 10,000 8% 10000 8% 10000 8% 9,000 9000 9000 8,000 8000 8000 6% 6% 6% 7,000 7000 7000 6,000 6000 6000 5,000 4% 5000 4%
Slide 27: Organic sales growth
Organic sales growth Organic growth (QTD1) 4% 3% 3% 2% 2% 1% 0% 0% -2% -2% -4% -5% -6% -6% -6% -8% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 1 Comparable sample based on portfolio companies owned as of January in the comparison year, i.e. the same sample as organic YTD data 27
Slide 28: Cash flow bridge
Cash flow bridge LTM, SEKm 3,005 3,102 97 631 166 555 1,750 83 152 1,552 129 Cash flow Change Cash flow Capex Net Leasing Free cash flow Acquisitions Acquired Paid Cash flow from in working from investments after leasing and and divested contingent before operating capital operating in non- divestme