Karnell Group Ab Class B · OMXSTO:KARNEL_B
Karnell Group Ab Class B — Karnell Group AB ser. B — Q2 2024 Earnings Presentation
14 slides from Karnell Group Ab Class B's earnings presentation, Aug 15, 2024
Slide 1: Interim Report January–June 2024
INTERIM REPORT JANUARY – JUNE 2024 16 AUGUST 2024 Q2
Slide 2: Today's agenda and presenters
Introduction Q2 2024 New Companies Today’s agenda and presenters: 1. Introduction to Karnell 2. Q2 2024 Petter Moldenius 3. New companies CEO 4. Q&A Lars Neret CFO Strictly personal and confidential 2
Slide 3: Karnell is an active long-term owner of niche industrial technology companies
Introduction Q2 2024 New Companies Karnell is an active long-term owner of niche industrial technology companies The Karnell group Financial overview1) Net sales (SEKm) Net sales pr o forma (SEKm) • 2 business segments EBITA margin (%) EBITA margin pro forma (%) 14,0% (i) Product owning companies 12
Slide 4: 2024 Q2: Stable financial development, platform acquisition and organic growth
Introduction Q2 2024 New Companies 2024 Q2: Stable financial development, platform acquisition and organic growth amidst challenging market conditions 1,800 22 Net Sales and EBITA% development LTM (SEKm) 20Highlights during the quarter: 18 16• Net sales increased by 22.6% of which organic growth amo
Slide 5: Karnell Group Q2 2024 – a quarter of steady performance
Introduction Q2 2024 New Companies Karnell Group Q2 2024 – a quarter of steady performance Net Sales (SEKm) EBITA (SEKm) +23% +14% +47% +42% 357 41 36 291 234 25 14 112 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2021 Q2 2022 Q2 2023 Q2 2024 • Net sales increased with a CAGR of 47% for Q2 from 2021 to 2024.
Slide 6: Breakdown of quarterly performance in net sales and EBITA
Introduction Q2 2024 New Companies Breakdown of quarterly performance in net sales and EBITA Net sales (SEKm) EBITA (SEKm) +14% +23% 41 357 -0 -1 36 64 13 291 2 -8 1% 22% -0% -21% 36% -0% Q2 2023 Organic growth Acquired Growth Currency effects Q2 2024 Q2 2023 Organic growth Acquired Growth Currency
Slide 7: Further breakdown of EBITA for the quarter
Introduction Q2 2024 New Companies Further breakdown of EBITA for the quarter EBITA breakdown during Q2 (SEKm) Comments: 52 • Reported EBITA from subsidiaries amounted to SEKm 52 for Q2 2024 (41). 10 • Group costs of SEKm 10 when excluding acquisition-related costs of 41 SEKm 1. 1 • Group costs are
Slide 8: Product owning companies – Continued Q2 growth
Introduction Q2 2024 New Companies Product owning companies – Continued Q2 growth, driven by strong organic performance and acquisitions Net sales (SEKm) EBITA (SEKm) +45% 179 +102% -0 24 -0 -31% 10 17 51 12 2 4% 42% -0% +1% 16% 87% -0% 122 123 4 Q2 2022 Q2 2023 Organic growth Acquired Currency Q2 2
Slide 9: Niched manufacturers - encounter market headwinds
Introduction Q2 2024 New Companies Niched manufacturers - encounter market headwinds amid tough year-on-year comparison Net sales (SEKm) EBITA (SEKm) +6% +83% -6% 178 29 +51% -1 28 -4 -0 168 13 2 -2 16 -1% 8% -0% -13% 8% -0% 111 Q2 2022 Q2 2023 Organic growth Acquired Currency Q2 2024 Q2 2022 Q2 202
Slide 10: Growing cash flow from operating activities
Introduction Q2 2024 New Companies Growing cash flow from operating activities Cash flow from operating activities (LTM) (SEKm) +4% 137 135 130 133 116 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 • Consistent CF on an LTM basis. Strong end to Q2 has increased working capital somewhat. • Cashflow from op
Slide 11: Stable capital structure with low leverage as a base for further acquisitions
Introduction Q2 2024 New Companies Stable capital structure with low leverage as a base for further acquisitions SEKm 2021 2022 2023 Q2 2024 Net debt excl. Leasing / EBITDA R12 excl. leasing Interest bearing debt 200 340 376 432 -1.2x 1.7x 1.2x 0.6x Cash and cash equivalents 246 149 190 340 191 186
Slide 12: OJOP is one of the leading European developers and manufacturers of eccentric locks
Introduction Q2 2024 New Companies OJOP is one of the leading European developer and manufacturers of eccentric locks and battery connectors Product owning company with a strong position in their niche Pro-forma sales and EBITA margin* (SEKm) • Ojop, founded in 1922 is based in Eskilstuna, Sweden. •
Slide 13: NE Engineering: Experts in precision CNC turning and milling
Introduction Q2 2024 New Companies NE Engineering: Experts in precision CNC turning and milling for demanding industries like subsea telecoms NE is a Niche Production company Pro-forma sales and EBITA margin* • NE Engineering Ltd (NE) is a British precision engineering company specializing in the tu
Slide 14: Stable Q2 performance: leveraging low debt and M&A pipeline
Stable Q2 performance: leveraging low debt and M&A pipeline for growth in a favourable market environment Key take aways: • Stable financial development during Q2 with platform acquisition and organic growth amidst challenging market conditions. • The market outlook for our group companies is expect
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