Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q1 2025 Earnings Presentation
53 slides from Relais Group Oyj's earnings presentation, May 13, 2025
Slide 1: Q1/2025 Interim Report January–March 2025
Q1/2025 Interim Report January–March 2025 13 May 2025 1
Slide 2: Presenting Today
PRESENTING TODAY Arni Ekholm Thomas Ekström Jan Popov Group CEO Group CFO Managing Director of Raskone Ltd Responsible for the development of the Commercial Vehicle Repair and Maintenance business area 2
Slide 3: Ready for the Next Level
READY FOR THE NEXT LEVEL 3
Slide 4: Agenda
AGENDA • Business Review • Financial Review • Events after the Review Period • Focus: Repair and Maintenance • Outlook 2025 • Relais Group as an Investment • Q&A 4
Slide 5: The Relais Growth Story
THE RELAIS GROWTH STORY Acquisition of: Acquisition of: Matro Group1 Adita AutoMateriell Team Verksted1 Acquisition of: Lastvagnsdelar1 Nordic Lift Strands Group JTC Acquisition of: Raskone Lumise Asennustyö M. Acquisition of: STS Sydhamnens Trailer Ahlqvist Skeppsbrons Service Team Verkstad Ecofoss
Slide 6: Consolidating the Vehicle Aftermarket in the Nordics
CONSOLIDATING THE VEHICLE AFTERMARKET IN THE NORDICS Relais Group Target Market Pre-market Aftermarket – Vehicle Life Cycle Enhancement End-of-life Import and Import & Customizing and Maintenance Supporting Demolition Manufacturing Reselling of Wholesale of Parts Equipping and Repair Services and Re
Slide 7: Relais Group Companies
RELAIS GROUP COMPANIES Technical Wholesale and Products (65% of Net sales) Nearly 1,300 Spare Parts professionals in 6 countries 27% Lighting and Equipment 38% Commercial Vehicle Repair and Maintenance (35% of Net sales) 35% 7
Slide 8: Drivers of Profitable Growth Journey
DRIVERS OF PROFITABLE GROWTH JOURNEY Acquire new growth platforms A top consolidator in New business areas within Transformational M&A the Northern the vehicle aftermarket in existing business areas European vehicle Bolt-ons in existing business areas aftermarket. Scalable platform Geographical Crit
Slide 9: Q1 Business Review: Ready for the Next Level
Q1 BUSINESS REVIEW: READY FOR THE NEXT LEVEL 9
Slide 10: Q1/2025
Q1/2025 • Despite the exceptionally strong comparison quarter, boosted by the extremely cold weather in 2024 we managed to reach the same net sales level as the last year. • The gross profit rose simultaneously mainly due to the growing weight of the Repair and Maintenance business of the Group’s to
Slide 11: Q1/2025 Net Sales and Comparable EBITA
Q1 / 2025 Net sales 82.8 MEUR +0% vs. Q1/2024 Comparable EBITA 9.2 MEUR -5% vs. Q1/2024 Earnings per share, 0.32 basic (EUR) 0.21 in Q1/2024 (growth: +51%) Profit for the period 5.9 MEUR +51% vs. Q1/2024 Return on capital 21.0% employed (ROCE) 16.7% in Q1/2024 (growth +26%) Return on equity (ROE) 19
Slide 12: Q1/2025: Technical Wholesale and Products
Q1/2025: TECHNICAL WHOLESALE AND PRODUCTS • Technical Wholesale and Products had a net sales change of -6%, organic -6%. • Sales of our Scandinavian units were generally in line with last year, with only a minor decline in the sales of spare parts for heavy commercial vehicles in Sweden. This was of
Slide 13: Q1/2025: Lighting
PÄIVITETTÄVÄ Q1/2025: LIGHTING • Q1 was yet another period of net sales growth for Lighting product group, increasing 4%. • Strands continued its strong performance, driven by export sales. • Online business in Finland had also a positive start to the year. 13
Slide 14: Q1/2025: Repair and Maintenance
Q1/2025: REPAIR AND MAINTENANCE • The net sales of Repair and Maintenance grew with 12%, organic being -1%. • The acquisitions of M Ahlqvist in Finland and Team Verkstad in Sweden made a strong contribution to our total sales, the customer demand remaining at previous year’s level in both countries.
Slide 15: Q1 Sales by Segment
Q1 SALES BY SEGMENT • The Scandinavian markets were less affected by the warm winter conditions than the Finnish and Baltic markets. 56.2% 58.8% • The Scandinavian segment reached a net sales growth of 5% (organic: +1%). Q1/2024 Q1/2025 • Finland and Baltics faced a sales decline of % of net sales %
Slide 16: Q1 Sales by Business Area
Q1 SALES BY BUSINESS AREA 31.2% 35.2% Q1/2024 Q1/2025 ◼ Technical Wholesale and Products % of net sales % of net sales ◼ Commercial Vehicle Repair and Maintenance 68.8% 64.8% EURm EURm ◼ 56.9 ◼ 53.7 -6% ◼ 25.9 ◼ 29.1 +12% 16
Slide 17: Q1 Sales by Product Group
Q1 SALES BY PRODUCT GROUP 29.5% 26.6% 31.3% 35.2% Q1/2024 Q1/2025 ◼ Repair and Maintenance ◼ Lighting % of net sales % of net sales ◼ Equipment ◼ Spare Parts 17.8% 18.6% 20.8% 18.9% EURm EURm ◼ 25.9 ◼ 14.8 ◼ 29.1 ◼ 15.4 ◼ 17.2 ◼ 24.4 ◼ 15.7 ◼ 22.0 N O T E : T O T A L S O F P R O D U C T G R O UP S M
Slide 18: Financing
FINANCING • On 28 March we announced the signing of a EUR 140 million long-term financing agreement with our main bank. • The new financing agreement has a maturity of three years, with two one-year extension options, and it consists of a EUR 110 million multi-currency term loan, a revolving credit
Slide 19: Sustainability
SUSTAINABILITY • On 14 March 2025, Relais published a Sustainability Report prepared in accordance with the European Sustainability Reporting Standards (ESRS) and the Finnish Accounting Act as part of the Report of the Board of Directors. • In the first quarter, Relais continued its planned developm
Slide 20: Financial Review
FINANCIAL REVIEW RELAIS
Slide 21: Net Sales and EBITA
NET SALES AND EBITA FAIRLY STABLE PERFORMANCE DESPITE MILD WINTER; NET SALES FLAT, EBITA -7% Net sales EBITA MEUR +0% MEUR -7% 100 10 9.7 10.0 90.7 9.1 9.0 8.4 80.9 82.8 82.8 8.0 8.0 75.2 7.7 7.8 80 73.5 74.2 74.9 8 7.5 7.3 69.0 70.3 62.1 64.8 64.1 6.2 58.7 58.6 5.7 5.7 60 53.5 52.1 6 4.8 4.1 40 4 3
Slide 22: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN CONTINUED SIGNIFICANT IMPROVEMENT IN BOTH GROSS PROFIT AND GROSS MARGIN MEUR/% 60 49.6% 50 46.5% 46.2% 45.3% + Increased weight of Repair and Maintenance 41.1 39.9% + Improved gross margins in both Technical Wholesale and 40 38.2 32.1 Products & Repair and Maintenance 3
Slide 23: Operating Expenses
OPERATING EXPENSES INCREASE MOSTLY DRIVEN BY ACQUISITIONS FAIRLY STABLE OPEX % MEUR/% 40 34.5% 35 32.1% 31.3% 30.6% 30 28.6 25.8% 25.3 25 21.6 19.9 20 15 13.8 10 5 0 Q121 Q122 Q123 Q124 Q125 Opex Opex % 23
Slide 24: Net Working Capital
NET WORKING CAPITAL NWC TURNOVER CONTINUED TO BE ABOVE PRY HIGHER INVENTORIES IN TECHNICAL WHOLESALE, MILD WINTER AND DECREASED SPARE PART AND EQUIPMENT SALES +10% MEUR 3/25 3/24 12/24 MEUR Inventories 84.3 73.1 83.7 80 75.9 Trade and other 47.8 48.2 42.2 receivables 68.8 70 67.1 67.8 69.7 67.1 67
Slide 25: Cash Flow and Cash Conversion
CASH FLOW AND CASH CONVERSION CF FROM OPERATIONS BEFORE CHANGE IN NWC FLAT CHANGE IN NWC NEGATIVE HIGHER INTEREST PAYMENTS LOWER TAX PAYMENTS MEUR MEUR Q1/25 Q1/24 2024 CF before change in NWC 13.3 13.9 52.5 -43% 18 Change in NWC -7.8 -5.9 -4.2 17.2 16.4 CF from net financials -2.9 -3.4 -13.5 16
Slide 26: Cash Flow Summary Q1
CASH FLOW SUMMARY Q1 Cash flow from Cash flow from Cash flow from operations investing activities financing activities 2.7 -887 18.0 EUR million EUR 1,000 EUR million (4.6) (-744) (-3.3) ± Profitability flat · Cash flow from investing activities was ± Normal repayments of lease liabilities − Develop
Slide 27: Interest-Bearing Net Debt
INTEREST-BEARING NET DEBT CLEARLY LOWER LEVERAGE DUE TO INCREASED LTM EBITDA AND FLAT NET DEBT SIGNIFICANTLY HIGHER CASH & HIGHER UNUSED CREDIT FACILITIES DUE TO NEW SFA MEUR 3/25 3/24 +1% Loans from financial institutions, l-t 102.2 87.6 MEUR Loans from financial institutions, s-t 11.0 7.0 160 15
Slide 28: Net Financials
NET FINANCIALS NET INTEREST EXPENSES LOWER DUE TO LOWER REFERENCE RATES NET FX GAIN ON SEK LOANS AND INTERNAL SEK LOAN RECEIVABLES (EUR 1,000) Q1/2025 Q1/2024 2024 • Net interest expenses increased in Jan-Dec due to the Financial income decrease in reference interest rates on interest- Foreign exch
Slide 29: Balance Sheet and Financial Position 31 March 2025
BALANCE SHEET AND FINANCIAL POSITION 31 MARCH 2025 Total assets Total equity Interest-bearing net debt 364.3 128.2 146.7 EUR million EUR million EUR million (324.0) (111.7) (144.6) Net gearing Equity ratio Cash assets 114.5 35.2 29.4 % % EUR million (129.4) (34.7) (10.3) 29
Slide 30: Return
RETURN SIGNIFICANT IMPROVEMENTS IN ALL KEY CAPITAL RETURN METRICS RONWC 49.1% (40.6%) ROCE 21.0% (16.7%) ROE 19.1% (14.0%) 30
Slide 31: Long Term Financial Target
LONG TERM FINANCIAL TARGET Relais Group aims to reach a pro forma* comparable EBITA of 50 MEUR by the end of 2025 * IN C LU D IN G L A TES T 12 M O N TH S ( =" R U N R A TE" ) C O MPA R A B LE 31 E B I T A O F A C Q U I RE D B U S IN E S S E S 31 7-NOV-24
Slide 32: Events after the Review Period
EVENTS AFTER THE REVIEW PERIOD 32
Slide 33: Acquisitions
ACQUISITIONS • As a competence-based compounder, we aim to constantly have a strong pipeline of promising companies to acquire – potential companies having: • a stable financial track record; • a well- managed business with a highly committed team; • a solid path for future profit growth as a member
Slide 34: Acquisition Pipeline Metrics
ACQUISTION PIPELINE METRICS Actively evaluate large pipeline of potential ~550 companies monitored ✓ opportunities – number of companies monitored constantly growing ~170 identified acquisition Targeted list of companies that are identified ✓ to be interesting and potentially actionable candidates P
Slide 35: Acquisition of Matro Group Expands Footprint in European Truck Accessories
THROUGH THE ACQUISITION OF MATRO GROUP WE CONSIDERABLY EXPAND OUR FOOTPRINT IN THE EUROPEAN TRUCK ACCESSORIES MARKET
Slide 36: Matro Group
MATRO GROUP • A distributor of truck accessories with well-established market position in the Benelux and Germany. • Established in 1988 • A profitable and growing business: In 2024, Net sales EUR 18.7 million and EBITDA EUR 3.7 million. • Own brand of truck accessories, NEDKING • A long-term custom
Slide 37: Key Benefits of the Acquisition
KEY BENEFITS OF THE ACQUISITION: The acquisition of Matro Group has developed its own As part of Relais Matro Group will Together, Strands and brand within Truck Group, Matro Group enable accelerated Matro are better Accessories, NEDKING. can benefit from growth in the truck positioned to also Lever
Slide 38: Focus: Repair and Maintenance
FOCUS: REPAIR AND MAINTENANCE 38
Slide 39: In Less Than 5 Years Relais Group Has Grown to 61 Workshops
IN LESS THAN 5 YEARS RELAIS GROUP HAS GROWN FROM 0 TO 61 WORKSHOPS RELAIS GROUP IS THE BIGGEST OPERATOR OF INDEPENDENT COMMERCIAL VEHICLE WORKSHOPS IN THE NORDICS
Slide 40: Team Verksted Holding AS
TEAM VERKSTED HOLDING AS • Team Verksted Holding consists of the commercial vehicle repair and maintenance chain Team Verksted and the heavy spare parts specialist wholesaler Lastvagnsdelar (LVD). • Team Verksted operates a nationwide multibrand workshop chain, offering maintenance and service for t
Slide 41: Key Benefits of the Acquisition
KEY BENEFITS OF THE ACQUISITION: The acquisition unlocks material synergy The acquisition of Team potential of up to an Through the Verksted expands Relais estimated NOK 30 acquisition of Group’s commercial Team Verksted serves as million annually, over the Lastvagnsdelar Relais vehicle repair and a
Slide 42: Maximizing Customer Success Through Uptime
MAXIMIZING CUSTOMER SUCCESS THROUGH UPTIME THESE CORE STRENGTHS ARE THE KEY DRIVERS FOR OUR CONTINUED PROFITABLE GROWTH Comprehensive fleet coverage • End-to-end services to all types of commercial vehicles – regardless of make, age or model • With 61 workshops soon to be across the Nordics, will en
Slide 43: Workshops: One of Relais Group's Three Pillars of Strength
WORKSHOPS: ONE OF RELAIS GROUP'S THREE PILLARS OF STRENGTH Defensive & Resilient High Cash Conversion Distributors for Relais Capital-Light Group’s brand & Business wholesale companies 43
Slide 44: Management Team
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Slide 45: Changes in the Management Team
CHANGES IN THE MANAGEMENT TEAM • On 18 March we announced that we had decided Johan Carlos Managing Director of Strands Group, to assign specific responsibility areas to certain is now in addition to his current tasks responsible for the development of our Management Team members. Products and Brand
Slide 46: Management Team (1 April 2025)
MANAGEMENT TEAM (1 APRIL 2025) Arni Ekholm Johan Carlos Thomas Ekström Juan Garcia Jan Popov Sebastian Seppänen Juri Viitaniemi Group CEO Managing Director of Group CFO Regional Managing Director of Managing Director of Director M&A and Business Director Compliance, Legal Strands Group AB Scandinavi
Slide 47: Outlook 2025
OUTLOOK 2025 47
Slide 48: Outlook for 2025
OUTLOOK FOR 2025 • Our long-term target is to reach a comparable proforma EBITA run rate of EUR 50 million by the end of 2025. This target includes the full year effect of acquisitions made this year. • Upon closing the announced Matro and Team Verksted / Lastvagnsdelar deals, we will add approximat
Slide 49: Relais Group as an Investment
RELAIS GROUP AS AN INVESTMENT
Slide 50: Relais Group as an Investment
RELAIS GROUP AS AN INVESTMENT Competent compounder with a clear focus on the vehicle aftermarket Track record of successful M&A in a highly fragmented industry with significant acquisition opportunities Exposure to large, resilient and structurally growing markets Scalable platform across diversifie
Slide 51: Substantial Shareholder Value Creation
SUBSTANTIAL SHAREHOLDER VALUE CREATION Relais’ absolute total shareholder return (TSR) vs. market index ✓Relais shares have delivered Outperforming OMX Helsinki by ~2.7x since IPO1 significant shareholder returns since ~121% total shareholder return the IPO in October 2019, since IPO1 outperforming
Slide 52: Q&A
Q&A 52 13-May-25
Slide 53: Relais
RELAIS