Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q3 2024 Earnings Presentation
38 slides from Relais Group Oyj's earnings presentation, Nov 7, 2024
Slide 1: Continued Profitable Growth
CONTINUED PROFITABLE GROWTH Relais Group Plc Interim Report July–September 2024 7 November 2024
Slide 2: Presenting Today
PRESENTING TODAY Arni Ekholm Thomas Ekström CEO CFO 2
Slide 3: Relais as an Investment
RELAIS AS AN INVESTMENT
Slide 4: Relais Group as an Investment
RELAIS GROUP AS AN INVESTMENT Active consolidator 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 diversified
Slide 5: Substantial Shareholder Value Creation
SUBSTANTIAL SHAREHOLDER VALUE CREATION Relais’ absolute total shareholder return (TSR) vs. market index Outperforming OMX Helsinki by ~3.1x since IPO1 ~111% total shareholder return since IPO1 111% ✓ Shares have delivered significant shareholder 2.11 returns since the IPO in October 2019, outperform
Slide 6: Relais Group Companies
RELAIS GROUP COMPANIES Technical wholesale and products (67%) Over 1.200 Spare parts professionals in 6 countries 30% Lighting and equipment 37% Commercial vehicle repair and maintenance (33%) 33% Status per 30 Oct 2024 6
Slide 7: Strong and Profitable Growth
STRONG AND PROFITABLE Acquisition of: GROWTH Adita Acquisition of: AutoMateriell Strands Group Nordic Lift Acquisition of: Raskone JTC Asennustyö M. Lumise STS Sydhamnens Trailer Ahlqvist Acquisition of: Team Verkstad Service Skeppsbrons Acquisition of: Sverige* Trucknik Ecofoss SEC Scandinavia TD T
Slide 8: Multiple Levers to Continue a Profitable Growth Journey
MULTIPLE LEVERS TO CONTINUE A PROFITABLE GROWTH JOURNEY Acquire new platforms Add new business areas Transformational M&A within the vehicle in existing business areas aftermarket Established leading Bolt-ons in existing business areas consolidator in the Northern European vehicle aftermarket Geogra
Slide 9: Business Review Q3/2024
BUSINESS REVIEW Q3/2024
Slide 10: Q3: 7th consecutive quarter with EBITA growth
Q3: 7th consecutive quarter with EBITA growth
Slide 11: Net sales, Comparable EBITA, Earnings per share
Net sales Comparable EBITA Earnings per share, MEUR MEUR basic (EUR) Q3/ 2024 74.9 9.2 0.26 +7% vs. Q3/2023 +6% vs. Q3/2023 0.24 in Q3/2023 Q1–Q3/ 2024 231.9 26.2 0.65 +14% vs. Q1-Q3/2023 +24% vs. Q1-Q3/2023 0.41 in Q1-Q3/2023 12 MR 313 34.0 1.00 +10% vs. FY 2023 +18% vs. FY 2023 0.76 in 2023 Change
Slide 12: Q3: Continued Profitable Growth
Q3: CONTINUED PROFITABLE GROWTH • EBITA totalled 9,1 MEUR (8,4 MEUR LY), a growth of 9%. EBITA-% grew from last year’s 12.0% to 12.2%. • Net sales grew with 7% from 70.3 MEUR to 74.9 MEUR, the organic growth was +4%. Gross Margin grew from 45.9% to 48.1% • The strong positive gross margin growth com
Slide 13: Q3: Technical Wholesale and Products
Q3: TECHNICAL WHOLESALE AND PRODUCTS • Technical Wholesale and Products had a stable quarter reaching a growth of 1%, all organic. • The vehicle lighting product season has started 1-2 weeks later this year, as opposed to previous years. This had a temporary decreasing effect in sales during the lat
Slide 14: Q3: Repair and Maintenance
Q3: REPAIR AND MAINTENANCE • The net sales grew with +19% (organic +9%) • The growth was especially robust in Finland, where our group company Raskone managed to increase its market share and capacity utilization compared to last year. • The acquisition of M. Ahlqvist in Finland carried out in May c
Slide 15: Sales by Segment Q3 and Q1–Q3
SALES BY SEGMENT Q3 AND Q1–Q3 45% 44% 46% 45% Q3/2023 Q3/2024 Q1-Q3/2023 Q1-Q3/2024 % of net sales % of net sales % of net sales % of net sales 55% 56% 54% 55% EURm EURm EURm EURm ◼ 38.7 ◼ 40.3 +4% ◼ 110.7 ◼ 128.5 + 16% ◼ 31.5 ◼ 34.6 +10% ◼ 92.7 ◼ 103.5 + 12% ◼ Scandinavia 15 ◼ Finland & Baltics
Slide 16: Sales by Business Area Q3 and Q1–Q3
SALES BY BUSINESS AREA Q3 AND Q1–Q3 31% 34% 35% 33% Q3/2023 Q3/2024 Q1-Q3/2023 Q1-Q3/2024 % of net sales % of net sales % of net sales % of net sales 69% 66% 66% 67% EURm EURm EURm EURm ◼ 48.9 ◼ 49.5 +1% ◼ 134.5 ◼ 155.0 +15% ◼ 21.4 ◼ 25.4 +19% ◼ 68.8 ◼ 76.9 +12% ◼ Technical wholesale and products 16
Slide 17: Sales by Product Group Q3 and Q1–Q3
SALES BY PRODUCT GROUP Q3 AND Q1–Q3 29% 30% 30% 30% 30% 34% 34% 33% Q3/2023 Q3/2024 Q1-Q3/2023 Q1-Q3/2024 % of net sales % of net sales % of net sales % of net sales 20% 20% 18% 22% 16% 16% 18% 19% EURm EURm EURm EURm ◼ 21.4 ◼ 15.6 ◼ 25.4 ◼ 14.9 ◼ 68.8 ◼ 40.3 ◼ 76.9 ◼ 40.9 ◼ 13.3 ◼ 20.7 ◼ 12.1 ◼ 22.
Slide 18: Acquisitions
ACQUISITIONS
Slide 19: Acquisitions
ACQUISITIONS • We continued to actively scan the market for good acquisition opportunities. • Continuously a number of discussions and dialogues ongoing with different parties. • There are several interesting targets having a good strategic fit with us. • We have made two acquisitions within the hea
Slide 20: Significant Pipeline of Opportunities Identified to Accelerate Growth
SIGNIFICANT PIPELINE OF OPPORTUNITIES IDENTIFIED TO ACCELERATE GROWTH 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 interesti
Slide 21: Outlook 2024
OUTLOOK 2024 21
Slide 22: Outlook 2024
OUTLOOK 2024 • The outlook for the rest of the year looks stable. • The vehicle aftermarket is defensive by nature and compared to many other businesses it is a sector with less cyclicality. • Our inventory and resource situation is good, allowing us to meet the customer demand for our products and
Slide 23: 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 * Including latest 12 months (="run rate") comparable EBITA of acquired businesses 23 7-NOV-24
Slide 24: Financial Review
FINANCIAL REVIEW RELAIS ae
Slide 25: Net Sales and EBITA
NET SALES AND EBITA CONTINUED STRONG PERFORMANCE; Q3 NET SALES +7%, EBITA +9% Net sales EBITA MEUR +7% MEUR +9% 100 10 9.7 9,1 8.4 80.9 82.8 8.0 8.0 75.2 7.7 7.8 80 73.5 74.3 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 3.4 20 2 0 0 Q121 Q321 Q122 Q322 Q1
Slide 26: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN SIGNIFICANT IMPROVEMENT IN BOTH GROSS PROFIT AND GROSS MARGIN MEUR MEUR + Strong organic net sales growth 60 120 109.6 + Acquisitions in Repair and 50 100 93.6 Maintenance 83.5 40 80 + Increased weight of Commercial 36.0 67.8 Vehicle Repair and Maintenance 32.3 28.8 30
Slide 27: Operating Expenses
OPERATING EXPENSES INCREASE MOSTLY DRIVEN BY ACQUISITIONS STABLE OPEX % MEUR MEUR 35 80 74,3 30 70 31,4% 63.6 29,3% 59 28,3% 60 25 23.5 25,4% 20.6 50 44.9 20 18.3 14.9 40 15 30 31,8% 31,3% 32,0% 27,3% 10 20 5 10 0 0 Q321 Q322 Q323 Q324 1-9/21 1-9/22 1-9/23 1-9/24 Opex Opex % 27
Slide 28: Net Working Capital
NET WORKING CAPITAL INVENTORY AND NWC TURNOVER STABLE ACQUISITIONS, DELAYMENT OF LIGHTING SALES SEASON AND INFLATION INCREASE NWC EURO VALUE MEUR +16% MEUR 9/24 9/23 12/23 80 Inventories 84.3 73.9 74.1 69.7 68.8 Trade and other receivables 47.5 42.7 45.4 67.1 67.8 67.1 67,4 65.0 62.7 62.6 62.2 Tra
Slide 29: Cash Flow from Operating Activities
CASH FLOW FROM OPERATING ACTIVITIES IMPROVEMENT DRIVEN BY IMPROVED PROFITABILITY NEGATIVE NWC DEVELOPMENT MEUR -4% MEUR 7-9/ 7-9/ 1-9/ 1-9/ 2023 20 24 23 24 23 CF before change in NWC 13.4 12.3 38.6 32.5 44.4 18 17.2 Change in NWC -8.0 -6.8 -11.0 -3.5 -2.4 16 CF from net financials -1.1 -0.9 -9.1
Slide 30: Cash Flow Summary 1-9/2024
CASH FLOW SUMMARY 1-9/2024 Cash flow from Cash flow from Cash flow from operations investing activities financing activities 18.5 -3.7 -15.4 EUR million EUR million EUR million (22.2) (-6.6) (-16.5) − Development in net working capital · Decrease due lower amount used ± Normal repayments of lease +
Slide 31: Interest-Bearing Net Debt
INTEREST-BEARING NET DEBT REDUCED LEVERAGE MEUR -1% MEUR 9/24 9/23 12/23 180 Loans from financial institutions, l-t 87,7 91,2 88.8 156 157 160 146 147 143 148 149 151 145 147 147 Loans from financial institutions, s-t 7,0 6,9 7.1 140 140 130 132 Lease liabilities 60,2 61,4 63.1 112 Other liabilities
Slide 32: Net Financials
NET FINANCIALS INCREASE IN NET INTEREST EXPENSES FX NET GAINS IN Q3 AND LOWER NET FX LOSSES IN JANUARY-SEPTEMBER (EUR 1,000) 7-9/2024 7-9/2023 1-9/2024 1-9/2023 1-12/2023 • Net interest expenses increased due to Financial income the increase in reference interest rates Foreign exchange 10 -998 1,4
Slide 33: Balance Sheet and Financial Position September 2024
BALANCE SHEET AND FINANCIAL POSITION 30 SEPTEMBER 2024 Total assets Total equity Interest-bearing net debt 337.7 112.8 146.6 EUR million EUR million EUR million (326.6) (101.9) (148.5) Cash assets Net gearing Equity ratio 130.0% 33.4% 9.1 EUR million (145.7) (31.2) (12.6) 33
Slide 34: Return
RETURN SIGNIFICANT IMPROVEMENTS IN ALL KEY CAPITAL RETURN METRICS RONWC 51.1% (45.6) ROCE 12.7% (10.3) ROE 14.1% (9.6) 34
Slide 35: Events After the Review Period
EVENTS AFTER THE REVIEW PERIOD 35
Slide 36: Events After the Review Period
EVENTS AFTER THE REVIEW PERIOD Completion of the Acquisition of Team Verkstad Sverige AB On 1 October 2024 Relais Group notified that its' group company STS Sydhamnens Trailer Service AB has successfully completed the acquisition of the entire share capital of Team Verkstad Sverige AB from Vy Buss A
Slide 37: Q&A
Q&A 37 7-NOV-24
Slide 38: Relais
RELAIS