Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q1 2023 Earnings Presentation
38 slides from Relais Group Oyj's earnings presentation, May 4, 2023
Slide 1: Q1/2023 Interim Management Report
Relais Group Plc Q1/2023 Interim Management Report 4 May 2023
Slide 2: Presenting today
Presenting today: Arni Ekholm Thomas Ekström CEO CFO 2
Slide 3: Content
Content • Relais in brief • Sustainability • The vehicle aftermarket opportunity • Business review Q1/2023 • Financial review Q1/2023 • Relais as an investment
Slide 4: Relais in brief
RELAIS Relais in brief
Slide 5: Net sales, comparable EBITDA and EBITA Q1/2023
Net sales Q1/2023 (Q1/2022) MEUR 69.0 (62.1) +11.0% Comparable EBITDA Q1/2023 (Q1/2022) MEUR 11.2 (9.3) +20.1% Comparable EBITA Q1/2023 (Q1/2022) MEUR 7.6 (6.2) +23.0% 5 Change percentages are calculated on exact figures before rounding up to millions of euros
Slide 6: What is Relais all about
What is Relais all about • Relais Group Plc is a consolidator and smart compounder with a sector focus on vehicle aftermarket in the Nordic region • We serve as a growth platform for our group companies and build them into great businesses • We consider the value generated during the whole vehicle l
Slide 7: Relais Group companies
Relais Group companies 1,000 professionals in 6 countries Technical wholesale and products Commercial vehicle repair and maintenance
Slide 8: Relais Group Growth Strategy
Relais Group Growth Strategy Growth by acquisitions Smart compounder: Active consolidation of the Nordic vehicle aftermarket sector Operational Organic growth excellence Faster than the market average earnings Continuous development growth supported by of operations to grow synergies earnings and ca
Slide 9: Strong growth supported by acquisitions
Strong growth supported by acquisitions Acquisition of: ADITA Oy Acquisition of: Acquisition of: Skeppsbrons Strands Group AB Jönköping AB Raskone Oy Ecofoss A/S Lumise Oy S-E-T A/S STS Sydhamnens Trailer Service AB Trucknik AB Acquisition of: ABR move to SEC Scandinavia A/S new premises Acquisition
Slide 10: Updated financial target
Updated financial target We accelerate our growth plan and aim to reach a pro forma EBITA of 50 MEUR by end of 2025 • We consider a profit target to be more relevant in describing the shareholder value creation potential of the Company, as opposed to a net sales target. • We see a large amount of po
Slide 11: Sustainability
RELAIS Sustainability
Slide 12: Sustainability
Sustainability For us, sustainability means above all practical and meaningful everyday actions. We take good care of our employees, customers, business partners and the environment. We have set clear ESG-related criteria to our global suppliers and several spare parts we sell are covered by a refun
Slide 13: The vehicle aftermarket opportunity
The vehicle aftermarket opportunity
Slide 14: Large, fragmented market
Vehicle aftermarket opportunity defined Large, Why is the vehicle aftermarket attractive from a value creation perspective? fragmented market § Sweden (excl. vehicle sales) accounts for MEUR >17 billion in yearly turnover across over 16,000 companies and more than 57,000 employees § All of Nordic as
Slide 15: Technology disruption
Vehicle aftermarket opportunity defined Technology disruption § Growing number of EV:s à value of spare parts and components increases § Circular economy and sustainability aspects à battery recycling and power train conversion opportunities (EV, hydrogen, gas) § Change in ownership: Private leasing
Slide 16: Value & growth
Vehicle aftermarket opportunity defined Value & growth § Large and ‘inert’ installed base, over 19 million vehicles à stable and defensive market § Delayed deliveries of new vehicles means that the existing vehicles are used more and longer à drives the need for repair & maintenance and spare parts
Slide 17: Vehicle aftermarket defined: Commercial
Vehicle aftermarket defined Relais Group target market: vehicle life cycle enhancement Pre-market Vehicle life cycle enhancement End-of-life Import and Customizing and Import & wholesale of Maintenance Operations and Demolition Manufacturing Vehicle reselling of vehicles equipping parts & equipment
Slide 18: Business review Q1/2023: Strong and profitable growth
Business review Q1/2023: Strong and profitable growth
Slide 19: Q1 – Strong and profitable growth
Q1 – Strong and profitable growth +11.0% +11.0% 11.0%1 11.0 EURM 69.0 Group sales growth Comparable EBITA- Net cash flow from 62.1 % operations § The first quarter was characterized by a significant growth in both sales and profitability § Growth was especially strong in the commercial vehicle repai
Slide 20: Technical wholesale and products business area Q1 2023
Technical wholesale and products business area Q1 2023 +6% § Stable market situation in Scandinavia. The market in Finland 44.3 was constrained by the relatively mild winter conditions and 41.8 the continued deterioration of consumer purchase power. § Working capital has returned to a normal level c
Slide 21: Strands Lighting Division social media reach
Strands Lighting Division social media reach INSTAGRAM YOUTUBE 120K followers YTD 2023 1,100,000 views (+570K views) WEBSITE TRAFFIC SOCIAL MEDIA REACH 236K visitors 10.2 million users (+102%)
Slide 22: Repair and maintenance business area Q1 2023
Repair and maintenance business area Q1 2023 § The positive sales and profitability development was based on a +22% 24.7 combination of strong customer demand, operational efficiency measures, and increased labour sales gross margin. 20.3 § Number of mechanics has increased by almost 30 since the Ne
Slide 23: Reported sales by product group Q1 2023
Reported sales by product group Q1 2023 +22% 24.7 -2% 19.7 19.3 20.3 +7% Net sales, EURM 13.9 14.8 +13% 9.4 8.3 Q1/22 Q1/23 Q1/22 Q1/23 Q1/22 Q1/23 Q1/22 Q1/23 % of group 32 28 22 21 13 14 33 36 Spare parts Lighting Equipment Repair and Maintenance Note: totals may not add up due to minor other sale
Slide 24: Reported sales by segment Q1 2023
Reported sales by segment Q1 2023 +19% 38.0 +3% External revenue, EURM 30.9 32.0 30.1 Q1/22 Q1/23 Q1/22 Q1/23 % of group 48 45 52 55 Finland & Baltics Scandinavia
Slide 25: Outlook
Outlook Outlook for 2023 • We are well prepared to continue implementing our strategy also during the rest of the year. • We expect that the operational efficiency measures initiated last year will still contribute positively to our profitability development during Q2/2023 • The effect will graduall
Slide 26: Financial review Q1/2023
RELAIS Financial review Q1/2023
Slide 27: Net sales and EBITA development
Net sales and EBITA development Net sales EBITA MEUR +11% MEUR 80 73.5 75.2 10 +31% 69.0 62.1 64.8 8.0 8.0 58.7 58.6 8 7.7 7.5 60 53.5 52.1 6.2 6 5.7 5.7 40 4.1 4 3.4 20 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2021 2022 + Corporate acquisitions in 2022 + Corporate acqui
Slide 28: EBITA development
EBITA development 7.6 10.9% 11.0% + Corporate acquisitions in 2022 7.5 10.0% + Profitability and operative efficiency 9.2% improvement measures 6.2 5.7 + Sales growth especially in the commercial vehicle maintenance and repair business - EUR/SEK exchange rate § Comparable APMs: Transaction costs and
Slide 29: Net financials
Net financials MEUR Q1 2023 Q1 2022 2022 § Increase in net interest expenses: (1) increased Interest income and expenses 1.2 -0.5 -2.6 interest rate level on interest- bearing loans and, (2) Interest expenses, lease liabilities -0.4 -0.4 -1.4 increased foreign exchange net losses Foreign exchange ga
Slide 30: Profitability development
Profitability development 3.1 2.9 3.0 5.0% § Net profit for the period 2.7 4.3% 4.3% 4.4% and EPS was approximately at previous years level due to increased net Q1 2022 Q1 2023 Q1 2022 Q1 2023 financial expenses and Profit for the period, MEUR Profit for the period-% Comparable profit for the period
Slide 31: Net working capital
Net working capital -12% MEUR 67.8 69.7 70 65.0 67.1 62.7 62.6 MEUR 03 2023 03 2022 12 2022 59.2 60 54.3 50 Inventories 66.4 74.0 67.8 45.0 40 Trade and other receivables 39.1 34.5 36.9 30 20 Trade and other payables 46.3 41.4 42.1 10 Total net working capital 59.2 67.1 62.6 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 32: Cash flow from operations
Cash flow from operations MEUR +358% 20 MEUR Q1 2023 Q1 2022 2022 17.2 15 CF before change in NWC 11.4 9.1 38.6 11.0 10 Change in NWC 2.0 -4.8 -0.1 7.7 6.2 5.3 5 2.4 2.9 CF from net financials -2.4 -1.9 -9.7 0.6 0 -0.4 CF from operations 11.0 2.4 28.8 -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Cash conversion 86
Slide 33: Cash flow summary Q1/2023
Cash flow summary Q1/2023 Cash flow from investing Cash flow from financing Cash flow from operations activities activities EUR 11.0 (2.4) EUR -1.4 (-2.5) EUR -3.0 (4.4) million million million + Implemented profitability and § Acquisition of the shares in Adita Oy § No proceeds or repayments of loa
Slide 34: Balance sheet and financial position 31.3.2023
Balance sheet and financial position 31.3.2023 The Group's balance- Net debt excl. lease TheTotal Group’s equity equity sheet total liabilities EUR 317.3 (314.9) EUR EUR 71.9 (106.8) 105.9 (63.7) EUR 83.6 (87.1) million million million million Net gearing excl. lease Equity ratio Cash assets liabili
Slide 35: Interest-bearing net debt
Interest-bearing net debt -2.2% MEUR 03 2023 03 2022 12 2022 MEUR 160 156.5 153.3 Loans from financial institutions, l-t 95.2 96.7 95.7 139.7 142.4 143.5 139.3 140 129.9 132.4 Loans from financial institutions, s-t 7.2 6.5 7.2 120 112.2 100 Lease liabilities 55.6 55.3 53.5 80 Other liabilities 1.2 0
Slide 36: Summary: Relais as an investment
Summary: Relais as an investment
Slide 37: Relais as an investment
Relais as an investment Active, sector focused consolidator with a strong track record of successful acquisitions Solid cash flow and profitability track record A growing underlying market with defensive characteristics Growing lighting business with own brands Efficient and decentralized operating
Slide 38: Q&A
Q&A