Slide 1: Q4 2022 Financial Statements Release
Q4 2022 Financial Statements Release Webcast | March 3, 2023
Slide 2: Agenda
AGENDA • Recap of 2020-2022 • 2022 & Q4 2022 highlights • Q4 2022 financials • Q&A
Slide 3: Recap of 2020-2022
Recap of 2020-2022 2019-2022 2023 and beyond Build up of platform & diversification Focused long-term value creation Sales (m€) and operational ebit (%) continued operations 2022 Boreo 2.0 Growth of earnings 2021 9 acquisitions Launch of Boreo & new strategy Exit from 2020 Russia 4 acquisitions Retu
Slide 4: Earnings growth via M&A and organic growth
Earnings growth via M&A and organic growth Positive development both in the ’old’ and the ‘new’ portfolio Investments in group platform impacting margins Sales growth, 2020-2022, m€ Comments • From 2020 to 2022, the ‘old portfolio’ has developed well – in particular Yleiselektroniikka and YE Interna
Slide 5: Strong development in electronics and technical trade
Strong development in electronics and technical trade Challences in heavy machines, investments to group platform phasing down after build-up Electronics ba 2020 2021 2022 Net sales (growth) 35.3m€ 43.3m€ (22%) 61.5m€ (42%) Operational EBIT 1.8m€ 2.7m€ (46%) 4.2m€ (58%) as % of net sales 5.2 % 6.2 %
Slide 6: Agenda
AGENDA • Recap of 2020-2022 • 2022 & Q4 2022 highlights • Q4 2022 financials • Q&A
Slide 7: Stable performance
stable performance Q422: stable 2.5m€ (5.6%) ebit without sany write-off, deleveraging due to strong cash flow Operational ebit (€) & ebit% Roce% net debt/operational ebitda 7.5 % 6.8 % 13.4 % 5.9 % 5.8 % 12.5 % 12.3 % 5.4 % 5.0 % 4.9 % 11.3 % 10.8 % 10.8 % 10.4 % 3.6 % 9.7 % 2.6 X 2.5 X 2.6 x 2.5 X
Slide 8: Disciplined execution of our value creation playbook
disciplined execution of our value creation playbook 2023: Focus on execution & developing the boreo way acquisitions development People & culture We acquired 9 companies We developed the operating model We focused on entrepreneurship • ~15% EBITDA margins & high • Boreo Game Plan & Boreo Clock • c.
Slide 9: New companies with strong margins & return on capital
new companies with strong margins & return on capital Filterit (closing 1/2023) J-matic basti lamox Executed March 2, 2023 Add-on to Technical Trade BA Add-on to Technical Trade BA Add-on to ESKP Add-on to Muottikolmio Technical supplier of process Industrial manufacturing services Logistics company
Slide 10: Dividend proposal 2022
dividend proposal 2022 Board proposes to continue on the path of paying increasing dividend per share Dividend policy dividenD per share development, 2015-2022 • ‘Target to annually increase dividend per share, taking into consideration capital allocation priorities’ 0.22 0.40 0.42 Dividend distribu
Slide 11: Agenda
AGENDA • Recap of 2020-2022 • 2022 and Q4 2022 • Q4 2022 financials • Q&A
Slide 12: Q4 2022 | Net sales & operational ebit
Q4 2022| Net sales & operational ebit Year-end with solid growth, operational ebit impacted by 0.3m€ write-down Net sales * Operational ebit & ebit% * +15% +15% w/o Sany 7.5 % 6.8 % write off 5.4 % 5.9 % 5.8 % 5.0 % 4.9 % 5.6 % 3.6 % 43.3 45.0 3.0 39.2 40.4 31.7 2.2 2.4 2.2 30.2 28.8 1.9 23.8 1.8 1.
Slide 13: Q4 2022 | Net sales & operational ebit
Q4 2022| Net sales & operational ebit Operational ebit growth continued above strategic target Net sales, r12 * Operational ebit & ebit%, r12 * STR target > 15% p.a. +31% +21% 5.7 % 5.8 % 5.9 % 5.4 % 5.4 % 5.4 % 5.4 % 4.7 % 155 160 140 8.4 8.7 122 130 7.2 7.6 7.1 95 102 5.9 84 5.4 3.9 Q1 Q2 Q3 Q4 Q1
Slide 14: Q4 2022 | growth of net sales
Q4 2022| growth of net sales Sales growth driven by acquisitions, heavy machines organic growth in pressure in Q4 Growth of net sales q4/22 vs. Q4/21, (m€), continued operations (1.6) (0.5) 7.9 45.0 39.2 15% growth Q4/22 vs. Q4/21 Q4 2021 M&A Organic Growth FX Q4 2022 14
Slide 15: Electronics (continued operations)
Electronics (continued operations) Acquisition of ssn and infradex grew net sales. operational ebit at 8.3% - outlook remains stable Comments – q4 2022 Net sales and operational ebit% Q422 vs. Q421* • Finnish operations (Yleiselektroniikka, Noretron, Milcon, 7.8 % 8.3 % 4.9 % 6.4 % 4.4 % Infradex, S
Slide 16: Technical trade
Technical trade Net sales grew as a result of pronius acquisition – Operational ebit at 8.8%, stable outlook Comments – q4 2022 Net sales and operational ebit% Q422 vs. Q421 • Machinery Power 12.2 % 12.2 % ▪ Machinery’s Power business delivered excellent 8.6 % 8.8 % 6.9 % results - sales and profita
Slide 17: Heavy machines
Heavy machines Profitability negatively impacted by delivery delays in putzmeister business and a EUR -0.3m write- off relating to the termination of SANY excavator dealership agreement in Sweden and finland Comments – q4 2022 Net sales and operational ebit% Q422 vs. Q421 • Putzmeister business 5.7
Slide 18: Other operations
Other operations stable performance in an inflatory environment, short-term margin pressures continue Comments – q4 2022 Net sales Q422 vs. Q421 • Net sales of 1.2m€ and operational EBIT of 4%. 1.1 1.2 1.2 1.2 1.0 Acquisition of Vesterbacka Transport in March 2022 had a positive impact on net sales.
Slide 19: Q4 2022 | ROCE & ROE
Q4 2022| ROCE & ROE Capital employed with Full impact of Hybrid bond, room to improve in capital efficiency Roce% * STR target > 15% Roe% * 12.5 % 13.4 % 33.2 % 28.6 % 12.3 % 25.8 % 27.8 % 11.3 % 10.8 % 10.8 % 9.7 % 10.4 % 13.7 % 11.4 % 13.1 % 12.1 % 37 84 30 77 70 24 62 48 53 19 41 44 11 12 13 10 4
Slide 20: Q4 2022 | net debt and equity ratio
Q4 2022| net debt and equity ratio Leverage decreased to 2,2x due to strong cash generation Net debt & net debt/operational ebitda* STR target 2-3X Equity ratio, % ** 2.6 X 2.5 X 2.6 x 2.5 X 2.5 X 2.2 X 1.6 x 35.9% 35.1% 35.4% 32.5% 35.9 37.9 34.6 32.8 33.9 30.9 25.7% 25.5% 24.8% 23.8% 26.1 26.7 Q1
Slide 21: Q4 2022 | eps and cash flow
Q4 2022| eps and cash flow Strong operational cash FLOW supported by net working capital release. Earnings per share* CASH FLOW*** -29% (0% wo hybrid impact) 2.6 0.83 3.7 0.1 0.70 1.7 0.8 1.5 0.63 0.6 0.8 - (0.3) 0.53 (4.9) (3.4) (3.7) (6.5) (1.9) (2.9) (1.1) 0.45 0.45 0.44 0.38 (2.1) (2.1) 0.35 (2.
Slide 22: Agenda
AGENDA • Recap of 2020-2022 • 2022 & Q4 2022 highlights • Q4 2022 financials • Q&A
Slide 23: yy yj
We, yy yj Wa e “
Slide 24: Grow & prosper
BOREGS GROW & PROSPER
Slide 25: Disciplined allocation of capital to acquisitions in 2022
disciplined allocation of capital to acquisitions in 2022 2023: Focus on developing M&A capabilities and creating proprietary deal flow 9 acquisitions ~15% ebitda margins ~3.9x ev/EBITDA + signing of filterit in dec 22** average of acquired companies ~4.6x w/earn-outs 5.7x 3.9x 4.2x 2.8x 4.0x 4.1x 6
Slide 26: Muottikolmio acquired Lamox in March 3, 2023
Muottikolmio acquired lamox in March 3, 2023 Muottikolmio – part of technical trade ba – acquired the entire share capital of Lamox oy Commentary Historical sales and adjusted profitability, k€ 1 Business: manufacturer of the patented Termotuote 24% 29% 20% products used in hidden socle repairs 664