Storskogen Group Ab Class B · OMXSTO:STOR_B
Storskogen Group Ab Class B — Q4 2024 Earnings Presentation
29 slides from Storskogen Group Ab Class B's earnings presentation, Feb 13, 2025
Slide 1: Storskogen Q4 2024
Storskogen Q4 2024 February 2025
Slide 2: Today's presenters
Today’s presenters Christer Hansson Lena Glader CEO CFO 2
Slide 3: Storskogen in brief
Storskogen in brief Storskogen is an international business group with YTD net sales of SEK 34.2bn and adj. EBITA of SEK 3.2bn, split across three business areas consisting of business units averaging SEK ~290m1 in sales Services Trade Industry NO. OF BUSINESS UNITS NO. OF BUSINESS UNITS NO. OF BUSI
Slide 4: Highlights
Highlights Positive organic sales and EBITA growth for the quarter Key highlights Q4 2024 FY 2024 • Strong cash flow of SEK 1.7 bn in the quarter with an LTM adj. cash Net sales SEK 8,591m SEK 34,182m conversion of 97% (-5%1) (-5%1) • Operational efforts yielding further margin improvement • 2024 or
Slide 5: Net sales and EBITA margin
Net sales and EBITA margin Positive organic sales and EBITA growth in Q4, and significant margin improvements in Services and Trade Financial development COMMENT 10,000 10% • Sales in line with seasonal 9.9% 9,000 9.4% 9.6% 9.7% 9.7% 9.8% 9% patterns 8,000 8.7% 8% 8.4% • Divestments (-6%), 7,000 7.8
Slide 6: Cash flow remains strong
Cash flow remains strong Cash flow from operations, YTD (SEKm) 3,361 3,098 1,628 1,376 814 2020 2021 2022 2023 2024 6
Slide 7: Services
Services Profitability focus resulted in positive organic EBITA growth in Q4 and YTD Key highlights Q4 2024 FY 2024 • Profitability focus and divestments yielded positive margin effects Net sales SEK 2,581m SEK 10,254m • Divestments affected Q4 sales by -11% (-12%1) (-10%1) • 2024 organic growth: •
Slide 8: Trade
Trade Positive organic sales and EBITA growth in Q4 Key highlights Q4 2024 FY 2024 • Profitability focus and divestments yielded early effects on margin Net sales SEK 2,484m SEK 9,576m • Divestments affected Q4 sales by -7%, (-2%1) (-5%1) largely offset by organic growth • 2024 organic growth: Adj.
Slide 9: Industry
Industry Sales and EBITA in line with last year Key highlights Q4 2024 FY 2024 • Profitability and efficiency gains remain key focus areas Net sales SEK 3,546m SEK 14,416m • 2024 organic growth: (0%1) (-2%1) • Sales: -2% (-1%2) • Adj. EBITA: -6% (-1%2) Adj. EBITA SEK 373m SEK 1,548m • EBITA margin i
Slide 10: Focus on organic profit growth…
Focus on organic profit growth… Sales initiatives Pricing Investments Cost control Increase sales volume Margin protection Improve scalability Margin protection Gain market shares Strengthen profitability Enhance professionalism Increase efficiency 1010
Slide 11: …yielded sequential improvements in 2024
Quarterly figures Full-year figures …yielded 12,8 sequential 1,7 2,9 0,3 0,4 improve- -1,4 -0,2 -3,0 ments in -6,3 2024 -21,3 Q1 24 Q2 24 Q3 24 Q4 24 FY 2024 Organic Sales Growth, % Organic EBITA Growth, % 11
Slide 12: Focus throughout 2024
Focus throughout 2024 Progress in all prioritised areas with a clear set of triggers for returning to a normalised state Triggers • Satisfactory leverage ratio Today Tomorrow • Persistent organic EBITA growth • Organic EBITA growth • Favourable market conditions • Persistent organic EBITA growth • C
Slide 13: Financial update
Storskogen Q4 2024 Financial update 13
Slide 14: Financial summary, adjusted for IAC
Financial summary, adjusted for IAC Y/Y sales decline; profit growth due to divestments, efficiency gains and lower financial items SEKm Q4 24 Q4 23 Chg., % 2024 2023 Chg., % Net sales 8,591 8,997 -5 34,182 36,006 -5 C.O.G.S -6,709 -7,145 -6 -27,037 -28,690 -6 Gross profit 1,882 1,852 2 7,146 7,316
Slide 15: Financial summary, reported
Financial summary, reported FY EBIT and net profit burdened by SEK 947m and SEK 1,019m, respectively, related to IAC, primarily related to divestments SEKm Q4 24 Q4 23 Chg., % 2024 2023 Chg., % Net sales 8,591 8,997 -5 34,182 36,006 -5 C.O.G.S -6,709 -7,145 -6 -27,738 -28,690 -3 Gross profit 1,882 1
Slide 16: Q4 sales bridge
Q4 sales bridge Negative Y/Y change explained by divestments SEKm -5% 8,997 0% 0% 1% -6% 8,591 Net sales, Q4 23 FX Organic growth Acquisitions Divestments Net sales, Q4 24 16
Slide 17: Q4 bridges by business area
Q4 bridges by business area Divestment of low performers affected sales negatively but EBITA positively Net sales, SEKm Adj. EBITA, SEKm -5% 8,997 -4%1 -1%1 8,591 0%1 20% 849 5%1 0%1 4%1 706 12%1 ∆ from acq. /div. 2 ∆ from acq. /div.2 Group -6% Group 2% Services -3% Services 2% Trade -2% Trade 0% In
Slide 18: Condensed cash flow
Condensed cash flow Strong cash flow, and cash conversion (LTM) of 97% and capex/sales of 2.1% in Q4. Working capital release as seasonally expected, and no significant impact from M&A SEKm Q4 24 Q4 23 Chg., % 2024 2023 Chg., % Profit before tax 474 243 95 493 1,321 -63 Adjustment for non-cash items
Slide 19: Operating cash flow and cash conversion
Operating cash flow and cash conversion Strong cash flow, and cash conversion (LTM) well ahead of target Operating cash flow1 (LTM) 5,000 140% 4,500 120% 4,000 104% 104% 101% 99% 95% 97% 3,500 100% 87% 3,000 71% 80% 2,500 59% 50% 60% 2,000 1,500 40% 1,000 20% 500 1,794 2,397 3,174 3,929 4,281 4,481
Slide 20: Condensed balance sheet
Condensed balance sheet Strengthened Y/Y by net debt and working capital reduction, and goodwill write-down related to divestments SEKm Dec 24 Dec 23 Chg., % Total non-current assets 29,797 30,597 -3 Total current assets 13,383 13,572 -1 Total assets 43,180 44,169 -2 Total equity 20,807 20,437 2 Int
Slide 21: Net debt and leverage
Net debt and leverage Net debt and leverage ratio decreased in seasonally strong fourth quarter Leverage ratio 20,000 18,000 2.8 2.7 3 2.7 2.6 16,000 2.5 2.6 2.6 2.6 2.6 2.5 2-3x leverage 14,000 2.3 target range 12,000 1.8 2 10,000 8,000 6,000 1 4,000 2,000 7,524 12,096 12,670 12,260 12,125 11,896 1
Slide 22: Total debt and leverage
Total debt and leverage Gross debt/cash & cash equivalents, SEKm RTM adj. EBITDA, SEKm 20,000 6,000 2,988 2,784 2,723 15,000 1,859 2,348 2,220 1,782 1,771 2,257 2,161 1,973 1,852 1,940 5,000 1,899 2,115 2,050 1,909 1,857 10,000 5,000 4,000 13,424 12,956 12,465 11,487 10,626 10,881 10,673 10,538 9,99
Slide 23: Aligning with operational steering
Aligning with operational steering SEKm, reported Q4 24 Q3 24 Q2 24 Q1 24 FY 2024 Sales, SEKm Q4 24 Q3 24 Q2 24 Q1 24 FY 2024 Net sales 8,591 7,991 9,243 8,358 34,182 Services1 2,581 2,339 2,844 2,490 10,254 Raw material and supplies -4,572 -4,390 -4,932 -4,455 -18,349 Business Services 1,006 1,014
Slide 24: Key takeaways
Key takeaways Progress in 2024 creates a solid foundation The operational initiatives are yielding positive effects and laying the foundation for the years ahead Record high cash flow in Q4, and best margin since IPO Progress positions us well for the implementation of our updated strategy and finan
Slide 25: Q&A
Q&A February 2025 25
Slide 26: Appendix
Appendix February 2025 26
Slide 27: Financial development per segment
Financial development per segment Positive trend in Services and Trade, whereas Industry has stabilised in recent quarters Services Trade Industry 15,000 12% 15,000 12% 15,000 12% 14,000 14,000 14,000 13,000 13,000 13,000 10% 10% 10% 12,000 12,000 12,000 11,000 11,000 11,000 10,000 8% 10,000 8% 10,0
Slide 28: Organic sales growth
Organic sales growth Positive organic sales growth across all three business areas Organic growth (QTD1) 30% 25% 24% 20% 20% 15% 17% 17% 16% 10% 11% 5% 6% 4% 3% 3% 0% 2% 0% -2% -5% -7% -6% -6% -5% -10% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4
Slide 29: Cash flow bridge, FY 2024
Cash flow bridge, FY 2024 Cash flow after leasing and capex remains solid LTM, SEKm 3,098 2,728 370 510 239 568 1,781 80 172 279 1,410 Cash flow Change Cash flow Capex Net Leasing Free cash flow Acquisitions Acquired Paid Cash flow from in working from investments after leasing and and divested cont