Slide 1: Rusta Q4 2023/24
Confidential Rusta Q4 2023/24 Göran Westerberg, CEO | Sofie Malmunger, CFO 13 June 2024
Slide 2: Agenda
Confidential Agenda 1. Business update 2. Financial performance 3. Summary and Q&A
Slide 3: Business update
Confidential Rusta Q4 2023/24 Business update
Slide 4: Positioned for continued profitable growth
Confidential Multi-geography presence Positioned for continued profitable growth ~150 2121) stores in Sweden, Finland Norway, Finland and Germany ~30 with significant white space, 42 and profitable online store Norway ~20 48 Sweden ~40 112 Store openings 27 40-60 during Q4 2023/24 1 Sala (SE) 3 ~60
Slide 5: Increased sales and strengthened profitability throughout the year
Confidential Rusta Q4 2023/24 Increased sales and strengthened profitability throughout the year Positive net sales growth Stable LFL growth3) during the year Strengthened adj. EBITA Q4 ’23/24 vs. ’22/231) +2.9% -1.2% +2.6% Net sales growth in Q4 LFL3) growth in Q4 Adjusted EBITA growth in Q4 FY ’23
Slide 6: Key events
Confidential Rusta Q4 2023/24 Key events Improved margin Unusually cold and continued IT incident and late spring expansion Focus on expansion Weather effects Operational and strengthened impacted product disruptions following margins with mix and total sales, the incident at maintained price with a
Slide 7: Key events after the quarter
Confidential Rusta Q4 2023/24 Key events after the quarter New sourcing Warehouse Good start of office in Türkiye automation summer sales Further develop and Growth investment The warm weather in control sourcing for efficiency and May has led to a activities in SE Europe increased capacity good sta
Slide 8: Achievements during the year
Confidential Rusta FY 2023/24 Achievements during the year 5.6 million Club Rusta members Privat label Volume growth 150,000 members added in Q4, 3% increased share of private label Volume is the single largest driver to +850,000 LTM, increase of 18 percent during the year the overall growth
Slide 9: Financial performance
Confidential Rusta Q4 2023/24 Financial performance
Slide 10: Continued net sales growth in Rusta's smallest quarter
Confidential Rusta Q4 2023/24 Continued net sales growth in Rusta’s smallest quarter Positive net sales growth Higher gross margin Improved profitability Net sales (MSEK) Gross profit (MSEK) & gross margin (%) Adj. EBITA1) (MSEK) & adj. EBITA margin (%) LFL growth -1.2% +2.9% +8.0% +2.6% 2,204 2,268
Slide 11: Strong sales and improved profitability
Confidential FY 2023/24 Strong sales and improved profitability Strong net sales growth Higher gross margin Improved profitability Net sales (MSEK) Gross profit (MSEK) & gross margin (%) Adj. EBITA1) (MSEK) & adj. EBITA margin (%) LFL growth 4.6% +9.0% +15.5% +45.7% 4,833 793 11,116 10,202 4,183 544
Slide 12: The financial effect following the IT incident
Confidential Rusta Q4 2023/24 The financial effect following the IT incident Total financial effects linked to the IT incident Financial impact Q4 2023/24 • Net sales loss in February of MSEK 61 and total negative Effect IT Q4 excl. EBITA effect of MSEK 48. Incl. both lost gross profit and Q4 23/24
Slide 13: All markets effected by the IT incident
Confidential Rusta Q4 2023/24 All markets effected by the IT incident Net sales growth in all markets Profitability negatively impacted by the IT incident Net sales growth excl. currency effects EBITA excl. IFRS 16 margin Q4 ’23/24 vs. ’22/23 Q4 ’23/24 vs. ’22/23 -2.6% -2.8% -3.0% -1.2% -1.2% -1.4%
Slide 14: Strong performance across all markets in FY 23/24
Confidential FY 2023/24 Strong performance across all markets in FY 23/24 Strong net sales growth in all markets All markets are profitable LFL growth excl. currency effects EBITA excl. IFRS 16 margin FY ’23/24 vs. ’22/23 FY ’23/24 vs. ’22/23 +5.3% +6.5% -0.6% +0.4pp. -0.2pp. +2.9pp. Net sales growt
Slide 15: Improved profitability
Confidential Rusta FY 2023/24 Improved profitability Profitability drivers in Q4 Adj. EBITA margin FY 23/24 I. Improved purchase prices II. Optimized sales prices III. Positive inventory effects 7.1% 5.3% FY 23/24 Profitability drivers I. Positive volume effects II. Optimized sales prices III. Reduc
Slide 16: Strong balance sheet and cash flow
Confidential Rusta Q4 2023/24 Strong balance sheet and cash flow Active working capital management Limited usage of credit facility Net working capital (MSEK) Net debt excl. IFRS 16 (MSEK) % LTM sales x LTM EBITDA excl. IFRS 16 12% 11% 0.46x -0.17x -2% -151% 1,248 1,222 255 (130) Q4 '22/23 Q4 '23/24
Slide 17: We are committed to delivering on our financial targets
Confidential Financial targets We are committed to delivering on our financial targets Net sales Profitability Dividend growth policy • Rusta targets an • Rusta targets an • Rusta aims to annual average EBITA margin of distribute 30-50 organic1) net sales around eight percent percent of net profit g
Slide 18: Summary and Q&A
Confidential Rusta Q3 2023/24 Summary and Q&A
Slide 19: Profitable growth during +35 years
Confidential Inflation and IT incident Long track record 11,1 Pandemic Profitable growth during +35 years 10,2 9,5 2,4 8,6 2,0 1,6 Net sales (SEKbn) 1,6 2,3 Sweden Rise of e-commerce Norway 2,2 Other markets online 2,1 1,8 Financial crisis Dot-com bubble 6,4 5,8 6,0 Banking crisis 5,3 '86 '87 '88 '8
Slide 20: Strategy focused on long-term profit growth
Confidential Strategy focused on long-term profit growth Make Rusta the leading and most trusted low price retailer in Europe Maintain low price position and differentiated assortment Continue organic and LFL growth Further increase efficiency across the value chain Continue store network expansion
Slide 21: Increased sales and strengthened profitability throughout the year
Confidential Rusta Q4 2023/24 Increased sales and strengthened profitability throughout the year Adj. EBITA growing Strong net sales growth Stable LFL growth2) with high pace Proposed dividend FY ’23/24 vs. ’22/231) FY ’23/24 vs. ’22/231) FY ’23/24 vs. ’22/231) Dividend, SEK per share +9.0% +4.6% +4
Slide 22: Thank you
Confidential Thank you Next event: Interim report Q1 2024/25 September 12, 2024