Slide 1: Interim report Q2 1 April – 30 June 2022
Interim report Q2 1 April – 30 June 2022 2022-07-15
Slide 2: Presenters
Presenters Clein Johansson Ullenvik Irene Wisenborn Bellander President & CEO CFO 2
Slide 3: Alligo at a glance
Public sector, Transport and storage, Repair and maintenance, Agriculture and forestry, Fishing and aquaculture and Oil and gas. Alligo at a glance Through the concept brands Swedol, Tools, Grolls and Univern, alongside local independent specialist brands, we meet professional users throughout the N
Slide 4: Alligo at a glance
Alligo at a glance Revenue EBITA Revenue per geographic area 2021 per geographic area 2021 per brand category 2021 Total revenue: MSEK 8,475 Total EBITA: MSEK 645 (7.6%) Own brands = 20% 15% 3% External brands = 80% 12% 25% 85% 59% Sweden Norway Finland Sweden Norway Finland Number of stores* per ge
Slide 5: Alligo at a glance
Alligo at a glance • The Nordic main markets – revenue of approximately SEK 50 billion per year • Customers – a combination of small and medium-sized Transport enterprises, large industrial Manufacturing Construction Public Sector and Storage companies, and the public sector within eight defined seg
Slide 6: Our desired position – from different perspectives
Our desired position – from different perspectives WE WANT TO BE A FULLY INTEGRATED COMPANY Customers Offering Go-to-market • We focus on professional • We offer a product assortment • We meet our customers where customers in eight defined with focus on consumables and a they want to meet us – throu
Slide 7: Agenda
AGENDA • Highlights Q2 2022 • Business update • Financials • Summary and outlook • Q&A All figures in the presentation apply to continuing operations unless otherwise stated
Slide 8: Q2 in brief
Q2 in brief • Important milestones in Alligo’s integration strategy achieved during the quarter: ̶ Implementation of IT and ERP systems in Tools; change of new common pricing system; relocation of the logistics centre from Alingsås to Örebro; and legal merge of Tools and Swedol. • One acquisition fi
Slide 9: Important milestones in the integration plan achieved
Historical Monday, 2 May 2022 Important milestones in the integration plan achieved • Implementation of IT and ERP systems in Tools and change to new common pricing system. • The relocation of Tools logistics centre from Alingsås to Örebro. ̶ Many new processes for the Örebro operation ̶ Some disrup
Slide 10: Status of the extensive integration efforts to build Alligo
Status of the extensive integration efforts to build Alligo - Completed activities related to the merger of Swedol and Tools Common strategy and core values throughout the entire company New financial and non-financial targets Store integration Legal structure 10
Slide 11: Status of the extensive integration efforts to build Alligo
Status of the extensive integration efforts to build Alligo - Ongoing activities related to the merger of Swedol and Tools Coordination of logistics - Sweden complete - Norway ongoing Pricing system - Validation ongoing in all countries ERP - Sweden and Finland complete - Norway ongoing Implementati
Slide 12: Implementation of Nordic standard assortment
Implementation of Nordic standard assortment 70% Nordic assortment / 30% local country-specific Reducing number of suppliers by 50 per cent and items by 67 per cent Alligo’s objective is to launch We develop our assortment Increasing the scope and the best offer in the market based on a thorough und
Slide 13: Financials
FINANCIALS 13
Slide 14: Group in summary
Group in summary Revenues and EBITA Highlights Q2 • Revenue increased by 5.5% to MSEK 2,275 (2,157) ̶ Organic growth 5,2% 2022 ∆, 2021 2022 ∆, % 2021 ̶ Positive currency effects 1.6% MSEK Apr-Jun % Apr-Jun Jan-Jun Jan-Jun ̶ Number of trading days -1,7% Revenue 2,275 5.5 2,157 4,370 5.9 4,125 • EBITA
Slide 15: Revenues and EBITA per market Q2
Revenues and EBITA per market Q2 Sweden Norway Finland MSEK % MSEK % MSEK % 1500 18 700 7 500 8 600 6 400 6 1250 15 500 5 4 1000 12 300 400 4 2 750 9 300 3 200 0 500 6 200 2 100 -2 250 3 100 1 0 0 0 -4 0 0 Q2 2020 Q2 2021 Q2 2022 Q2 2020 Q2 2021 Q2 2022 Q2 2020 Q2 2021 Q2 2022 Revenue, MSEK EBITA, %
Slide 16: Cash flow impacted by assortment-merge, supply-side disruptions, and prepayments
Cash flow impacted by assortment-merge, supply-side disruptions, and prepayments Q2 Operating activities Q1-Q2 Operating, investing and financing activities • Operating cash flow in line with Q2 last year • Investing activities ̶ Implementation of new ERP, e-commerce investments, store adaptions, •
Slide 17: Strong financial position
Strong financial position Overview of the financial position Key figures MSEK 30 Jun 2022 31 Dec 2021 • Ratio of net operational liabilities Non-current interest bearing liabilities 2,168 2,095 to EBITDA (excl. IFRS 16) of 2.0 Current interest bearing liabilities 379 463 • Unutilized credit faciliti
Slide 18: Summary and outlook
SUMMARY AND OUTLOOK 18
Slide 19: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Attractive Scalable Own brands Sustainability A leader market growth platform is and services as an in the and resilient a foundation increase integrated consolidation customer for continued competitiveness part of the of the segments growth and profitabili
Slide 20: Outlook
Outlook • Important milestones in Alligo’s integration strategy achieved during the quarter. • Our focus forward is to: ̶ Solve the issues and back-log related to new ERP and logistics processes ̶ Educate and reactivate our sales force ̶ Start the implementation of the Nordic standard assortment and
Slide 21: Alligo
21 ALLIGO
Slide 22: Appendix
APPENDIX 22
Slide 23: Financial targets
Financial targets Dividend Organic growth EBITA margin Indebtedness >5% >10% <3X 30-50% of net profit Average organic growth EBITA margin shall be Ratio of net operational Dividend as a percentage shall exceed 5 per cent more than 10 per cent liabilities to EBITDA of net profit shall amount per year
Slide 24: Non-financial targets
Non-financial targets Responsible Sickness-related Share of female supplier relations Customer satisfaction absence managers Climate impact 100% >75 <5% >30% CO2 All significant All concept brands Sickness-related The share of female Carbon dioxide suppliers must have in all Group absence as a manag
Slide 25: Four overarching themes for 2022
Four overarching themes for 2022 Continue the Get on track with Improve Make our coordination work and growth and margins collaboration and people grow ascertain impact of in all parts of our processes ongoing activities business • Continue work with • Assortment harmonisation • Clear view of what •
Slide 26: Revenue bridge second quarter 2022
Revenue bridge second quarter 2022 Revenue year-on-year Q2 +5.5% -1.7% 1.6% 2,275 0.4% 5.2% 2,157 Revenue Q2 2021 Comparable stores Currency effects Number of Other units Revenue Q2 2022 in local currency working days 26
Slide 27: Condensed consolidated income statement
Condensed consolidated income statement 2022 2021 2022 2021 30/06/2022 2021 MSEK APR–JUN APR–JUN JAN–JUN JAN–JUN 12 months to JAN–DEC Revenue 2,275 2,157 4,370 4,125 8,662 8,417 Other operating income 29 17 56 43 104 91 Total operating income 2,304 2,174 4,426 4,168 8,766 8,508 Cost of goods sold -1
Slide 28: Condensed consolidated balance sheet
Condensed consolidated balance sheet MSEK 30/06/2022 30/06/2021 31/12/2021 MSEK 30/06/2022 30/06/2021 31/12/2021 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Intangible non-current assets 2,637 2,876 2,577 Equity attributable to Parent Company shareholders 3,078 3,206 3,429 Right-of-use a
Slide 29: Condensed consolidated statement of cash flows
Condensed consolidated statement of cash flows 2022 2021 2022 2021 30/06/2022 2021 MSEK APR–JUN APR–JUN JAN–JUN JAN–JUN 12 months to JAN–DEC Operating activities Profit/loss after financial items 144 135 215 192 402 379 Adjustment for non-cash items 124 125 256 248 664 656 Income taxes paid -35 -10
Slide 30: Key performance indicators
Key performance indicators 2022 2021 2022 2021 30/06/2022 2021 Group, MSEK APR–JUN APR–JUN JAN–JUN JAN–JUN 12 months to JAN–DEC IFRS KEY PERFORMANCE INDICATORS Earnings per share, SEK Continuing operations, before and after dilution 2.24 2.10 3.35 3.00 6.10 5.75 Discontinued operations, before and a