Volati Ab · OMXSTO:VOLO
Volati Ab — Q1 2024 Earnings Presentation
18 slides from Volati Ab's earnings presentation, Apr 25, 2024
Slide 1: Q1 Interim Report Jan-Mar 2024
Q1 Interim Report Jan-Mar 2024 Andreas Stenbäck, CEO Martin Aronsson, CFO 24 April 2024 Volati Interim report January - March 2024
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 Home markets Subsidiaries +16% +20% Volati EBITA EBITA CAGR growth LTM since 2018 Net sales, LTM Q1 2024 SEK 7,653 m EBITA, LTM Q1 2024 SEK 665 m +10% ~34% +27% +26% Industry ~44% EBITA CAGR EBITA CAGR ~22% EBITA CAGR since 201
Slide 3: Introduction - Q1 performance below our expectations
Introduction - Q1 performance below our expectations • Volati is best evaluated over time, individual quarters hard to predict • As expected below last years record quarter of 55% EBITA growth ─ 5G-rollout significantly slower this year, from record levels a year ago ─ Construction market weaker tha
Slide 4: Introduction – Positioned for long-term value creation
Introduction – Positioned for long-term value creation • Accelerated growth once the construction market recover ─ Successfully balanced short term cost initiatives and long-term value creation – focus on structural measures ─ Accelerated organic growth once market return to compensate for recent ye
Slide 5: Financial development, Q1 2024
Financial development, Q1 2024 Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 1,747 m SEK 90 m SEK 18 m 2,6 x (Q1 2023: 1,890) (Q1 2023: 159) (Q1 2023: 127) (Q1 2023: 2,0x) Net sales, SEK m EBITA, SEK m 2 250 250 2 000 1 750 200 1 500 150 1 250 1 000 100 750 500 50 250 0 0 Q1 Q2 Q3
Slide 6: Q1 accounts for a low share of yearly EBITA
Q1 accounts for a low share of yearly EBITA Q1 share of yearly EBITA the past 5 years percent 22 • Volati's turnover, earnings and cash flow are affected by seasonal variations. 15 14 14 Ø 15 • The first quarter historically has the 11 smallest EBITA contribution, representing an average of ~15% of
Slide 7: Financial development, LTM Q1 2024
Financial development, LTM Q1 2024 -13% vs Q1 CAGR LTM 2023 +20% Net sales 750 733 25 710 SEK 7,653 m 700 650 664 665 (Q1 2023: 7,976) 600 20 550 500 EBITA 450 421 15 SEK 665 m 400 350 312 (Q1 2023: 766) 300 10 257 10,5% 250 9,4% 9,2% 8,6% 8,7% Operating cash flow 200 7,6% 7,5% 150 5 SEK 728 m 100 5
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 EBITDA1) EBITA2) per ordinary share of at least 15 adjusted equity2) of 20 percent. ratio of 2 to 3 times, and no
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 CAGR • Sales in the quarter declined by 5% and EBITA with 9 MSEK +10% compared to last year • The demand in the quarter continues to be hampered due to the 4 000 11 headwind in the construction sector 10.1% 3 409 3 540 3 584 3 598 3 575 3 508 3 466 3 402 10 3 500 3 357 • Cost savin
Slide 11: Ettiketto Group
Ettiketto Group • Net sales in the quarter declined by 2% compared compared to last CAGR year +27% 884 • Healthy order intake in Sweden where capacity is being ramped up 900 879 883 877 859 856 25 834 to keep up with demand 800 791 20.6% 19.9% • The EBITA margin in the quarter increased with 2 pp, a
Slide 12: Industry
Industry • Sales declined by 12% in the quarter, and EBITA decreased from 81 CAGR MSEK last year to 24 MSEK Q1 2024 +26% • The challenging market situation for S:t Eriks remain, with the 4 000 25 3 663 platform initiating additional cost saving measures 3 524 3 582 3 541 3 445 3 500 • Continued mark
Slide 13: 24 acquisitions and 3,5 billion of annual sales since 2020
24 acquisitions and 3,5 billion of annual sales since 2020 Sales, MSEK EBITA EBITA EBITA Industry ~44% ~34% ~22% Heco SALES Beneli SALES January 2020 180 June 2020 160 Pisla SALES Märkas SALES September 2020 240 September 2020 170 Duschy SALES Strongpoint SALES March 2021 100 June 2021 190 Corrovent
Slide 14: Add-on acquisitions are an important value driver for Volati and our platforms
Add-on acquisitions are an important value driver for Volati and our platforms 1 170 1 125 1 086 1 021 1 017 867 • M&A have over time contributed with annual 8 8 8 823 770 749 753 782 sales of SEK 700–1,200 million 742 7 7 • Annual pace of 6-8 acquisitions 6 6 632 • Majority of the acquisitions are
Slide 15: Beslag & Design AB
Beslag & Design AB • Annual sales of SEK 190 million • A company with a leading brand within fittings and interior details founded in 1972 in Båstad • The acquisition strengthens Salix Group’s customer offerings as an add-on acquisition to the Home & Fittings business • Synergy potential through cha
Slide 16: Continued strong position for acquired growth
Continued strong position for acquired growth Net debt, SEK m 2 183 1 988 1 888 1 907 1 760 1 812 1 713 1 632 • Operational cash flow of SEK 18 million. 1 344 • LTM Q1 2024 results in 728 million compared to 707 LTM 1 049 1 024 Q1 2023. 844 • Total cash generation of 96% during last twelve months. 5
Slide 17: Summary
Summary • Volati is best evaluated over time, individual quarters hard to predict • As expected Q1 came in below last years record quarter • Did not meet our own expectations mainly attributed to a slower construction market • A more positive outlook for the coming quarters this year • Accelerated o
Slide 18: Volati
volatl.