Volati Ab · OMXSTO:VOLO
Volati Ab — Q3 2021 Earnings Presentation
20 slides from Volati Ab's earnings presentation, Oct 26, 2021
Slide 1: Interim Report Q3 July–September 2021
Interim Report Q3 July–September 2021 Andreas Stenbäck, CEO Martin Aronsson, CFO 26 October 2021 1
Slide 2: A. Volati at a glance, B. Quarter three update
A. Volati at a glance B. Quarter three update Volati Interim Report January–September 2021 2
Slide 3: Business concept
Business concept ”Volati creates value by acquiring companies with proven business models, leading market positions, strong cash flows at reasonable valuations - and develops them with an emphasis on long-term value creation.” 3
Slide 4: Volati is a growing group of well-managed companies with strong earnings
Volati is a growing group of well-managed companies with strong earnings Volati Net sales LTM SEK 5,861 m EBITA LTM SEK 597 m Industry +34% +55% EBITA EBITA growth LTM growth LTM Share of Share of group group ~51% ~49% EBITA, LTM EBITA, LTM Domestic markets Q3 Q3 Subsidiaries Volati Interim Report J
Slide 5: Last years activities has resulted in a focused group with stronger key characteristics
Last years activities has resulted in a focused group with stronger key characteristics Value transfer of • Sale of Business Area Consumer SEK +1.5 bn • Separate listing of Bokus Group to shareholders and EBITA • 7 add-on acquisitions still unchanged • Navigating through covid • New management team
Slide 6: Volati is about long term value growth
Volati is about long term value growth • With our shareholder value focus, we are restrictive with new share issues or using our share to finance acquisitions • High ROE create long term value growth, not necessarily growth itself • Growth of EBITA earnings per common share of 48% per year since 201
Slide 7: A. Volati at a glance, B. Quarter three update
A. Volati at a glance B. Quarter three update Volati Interim Report January–September 2021 7
Slide 8: Strong earnings growth
Strong earnings growth • EBITA growth +68% to SEK 211 million ─ Strong organic growth in the existing business units ─ Strong acquired growth driven by six acquisitions Jan to Sept 2021 • Profit per ordinary share +96% to SEK 1.48 (0.76) for continuous operations ─ +48% including divested operations
Slide 9: Financial development, Q3 2021
Financial development, Q3 2021 +35% +68% Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 1,693 m SEK 211 m SEK 142 m 1.4 x (Q3 2020: 1,253) (Q3 2020: 126) (Q3 2020: 117) (Q3 2020: 1.4x) Net sales, SEK m EBITA, SEK m 1800 200 1600 180 1400 160 1200 140 120 1000 100 800 80 600 60 400
Slide 10: Financial development, LTM Q3 2021
Financial development, LTM Q3 2021 Net sales +50% 597 5,861 600 25% SEK m CAGR 512 (Q3 2020: 4,651) 500 +48% 464 20% 421 398 400 EBITA 15% 597 312 300 SEK m 257 10% (Q3 2020: 398) 200 10,2% 9,0% 9,4% 138 8,6% 8,6% 7,6% 7,5% Operating cash flow 5% 100 5,8% SEK 450 m 0 0% 2017 2018 2019 LTM Q3 LTM Q4
Slide 11: 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 EBITDA2) EBITA2) per ordinary share of at least 15 adjusted equity2) of 20 percent1). ratio of 2 to 3 times as an
Slide 12: Two business areas with high growth focus
Two business areas with high growth focus Industry Products in builder’s hardware, Products and solutions for companies in consumables, and materials for grain management, dampness and water construction, home and garden, packaging damage management, labels, stone and forestry along with agriculture
Slide 13: Growth focus and disciplined pricing
Growth focus and disciplined pricing Previously business area Trading • Sales increased by 22% and EBITA by 17% over Q3 2020 • Healthy growth despite stronger comparative figures from last year 49% • Stronger demand in the construction and wood industries balanced somewhat abating demand in the DIY
Slide 14: Financial development, LTM Q3 2021
Financial development, LTM Q3 2021 CAGR +29% 350 +34% 25% 326 312 300 292 265 20% 250 243 Net sales 200 15% 178 SEK 3,140 m 150 125 158 10% 10,4% 10,5% 10,4% (Q3 2020: 2,496) 9,7% 9,9% 100 8,3% 7,8% 7,5% EBITA 5% 50 SEK 326 m 0 2017 2018 2019 LTM Q3 LTM Q4 LTM Q1 LTM Q2 LTM Q3 2021 0% (Q3 2020: 243)
Slide 15: Industry
Business area Industry Strong demand, acquisitions and synergies • Sales growth of 50% and an EBITA increase of 101%, vs. Q3 2020 with several acquisitions contributing positively • Broad improvement, with all business units contributing positively 51% • Margin improvements due to strong demand, pri
Slide 16: Financial development, LTM Q3 2021
Financial development, LTM Q3 2021 CAGR +55% +48% Business area 350 343 25% Industry 300 278 20% 256 250 236 221 Net sales 200 12,6% 15% 179 2,724 11,4% 10,6% 11,3% 10,5% 10,9% 10,2% SEK m 150 8,9% 10% 144 (Q3 2020: 2,157) 100 79 5% EBITA 50 SEK 343 m 0 2017 2018 2019 LTM Q3 LTM Q4 LTM Q1 LTM Q2 LTM
Slide 17: Acquisitions last 12 months with a total annual turnover of SEK 1.1 billion
Acquisitions last 12 months with a total annual turnover of SEK 1.1 billion Duschprodukter StrongPoint JPT Sweden Scanmast Labels SALES SALES SALES SALES January 2021 102 March 2021 100 June 2021 294 June 2021 185 MSEK MSEK MSEK MSEK Byggsystem Direkt Apisa Meag Va-system Acquisition capacity +2.0Bn
Slide 18: Meag VA-system – Continued acquired growth
Meag VA-system – Continued acquired growth • Sales of SEK ~190 m • Specializing on products for water and sewage infrastructure • Four production facilities • S:t Eriks second synergistic add-on acquisition this year • Makes S:t Eriks a market-leading supplier in the niche • Acquired from the origin
Slide 19: Summary
Giving companies the Summary right conditions to grow Continuing to offer long term value growth • EBITA growth of 68% to SEK 211 m • Earnings per ordinary share up 96% based on continuing operations • Return on adjusted equity ~ 33%, excl effects from last year’s divestment and the listing of Bokus
Slide 20: volati.
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