Slide 1: Q2 2023/24 presentation
Q2 2023/24 presentation Göran Westerberg, CEO 20 December 2023 Sofie Malmunger, CFO
Slide 2: Today's presenters
Confidential Today’s presenters Göran Westerberg Sofie Malmunger CEO CFO Rusta since 2011 Rusta since 2014 2
Slide 3: Today's agenda
Confidential Today’s agenda # Section I Business update II Financial performance III Summary and Q&A 3
Slide 4: Business update
Business update RUSTA
Slide 5: Rusta is a non-food Nordic discount champion
Confidential Rusta is a non-food Nordic discount champion Multi-geography presence Overview of store pipeline1) Store network overview1) ~150 Vision to make Rusta Integrated and the leading and most efficient value chain, trusted low-price in-house product ~30 retailer in Europe development, central
Slide 6: Profitable growth during +35 years
Confidential Profitable growth during +35 years Pandemic Net sales (SEKbn) 10,2 Sweden 9,5 Norway Long track record of 2,0 Other markets online 8,6 profitable growth1) 1,6 Rise of e-commerce 1,6 2,2 Financial crisis 2,1 1,8 Dot-com bubble Banking crisis 6,0 5,8 5,3 '86 '87 '88 '89 '90 '91 '92 '93 '9
Slide 7: Strategy focused on long-term profitable growth
Confidential Strategy focused on long-term profitable growth Make Rusta the leading and most trusted low-price retailer in Europe Maintain low-price position and differentiated assortment Continue organic and LFL growth Further increase efficiency across the value chain Continue low-risk network exp
Slide 8: Q2 '23/24: Another quarter of profitable growth
Confidential Q2 ’23/24: Another quarter of profitable growth Strong sales growth Accelerating Adjusted EBITA like-for-like growth3) growing with high pace Q2 ’23/24 vs. ’22/231) +14.4% +10.8% +119.1% Net sales growth in Q2 LFL3) growth in Q2 Adj. EBITA growth in Q2 H1 ’23/24 vs. ’22/232) +12.9% +8.5
Slide 9: Key achievements
Confidential Key achievements Continued store expansion LFL volume growth Köping (Sw) • Notodden (No) • Oulu (Fi) Volume major contributor to our sales growth in Q2 and 3 more opened after the quarter 5.3 million Club Rusta members IPO on Nasdaq Stockholm 700,000 new members added during LTM Source:
Slide 10: Financial performance
Financial performance 10 RUSTA
Slide 11: Strong momentum in current trading
Confidential Strong momentum in current trading Strong net sales growth Higher gross margin Improved profitability Net sales (SEKm) Gross profit (SEKm) & gross margin (%) Adj. EBITA1) (SEKm) & adj. EBITA margin (%) LFL growth 10.8% +14.4% +22.5% +119.1% 2,642 1,153 2,309 150 942 43.6% 68 5.7% 40.8%
Slide 12: Strong performance across all markets
Confidential Strong performance across all markets Strong net sales growth in all markets All markets are profitable LFL growth excl. currency effects EBITA excl. IFRS 16 margin increase +10.0% +8.6% +7.7% +0.9pp. +1.9pp. +5.8pp. Net sales growth excl. currency effects EBITA excl. IFRS 16 margin Q2
Slide 13: Improved profitability
Confidential Improved profitability Adj. EBITA margin uplift in Q2 ’23/24 Adj. EBITA margin Profitability drivers I. Increased volume 5.7% II. Optimised sales prices III. Reduced shipping costs IV. More efficient campaigning V. Scalability of business model 3.0% 1) Notes: 1) Including other operatin
Slide 14: Strong balance sheet and cash flow
Confidential Strong balance sheet and cash flow Active working capital management Limited usage of credit facility Inventory (SEKm) Net debt excl. IFRS 16 (SEKm) % LTM sales x LTM EBITDA excl. IFRS 16 31% 25% 0.7x 0.1x -11% -91% 458 3,078 2,742 41 Q2 '22/23 Q2 '23/24 Q2 '22/23 Q2 '23/24 Notes: 1) Af
Slide 15: We are committed to delivering on our financial targets
Confidential We are committed to delivering on our financial targets ▪ Rusta targets an annual average organic1) net sales growth around eight percent in the Net sales medium term growth ‒ Annual average LFL growth above three percent ▪ Rusta targets an EBITA margin of around eight percent in the me
Slide 16: Summary and Q&A
Summary and Q&A 16 RUSTA
Slide 17: Q2 '23/24: Another quarter of profitable growth
Confidential Q2 ’23/24: Another quarter of profitable growth Strong sales growth Accelerating Adjusted EBITA like-for-like growth3) growing with high pace Q2 ’23/24 vs. ’22/231) +14.4% +10.8% +119.1% Net sales growth in Q2 LFL3) growth in Q2 Adj. EBITA growth in Q2 H1 ’23/24 vs. ’22/232) +12.9% +8.5
Slide 18: Q&A
Confidential Q&A Next event: 14 March 2024 18