Storskogen Group Ab Class B · OMXSTO:STOR_B
Storskogen Group Ab Class B — Q1 2023 Earnings Presentation
18 slides from Storskogen Group Ab Class B's earnings presentation, May 12, 2023
Slide 1: Storskogen Q1 2023
Storskogen Q1 2023 TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO May 2023 1
Slide 2: Storskogen in brief
Storskogen in brief Storskogen is an international group of businesses with operations in 28 countries SEK 36.5bn in annual LTM net sales1 SEK 3.5bn in annual adj. LTM EBITA1 ~12,900 employees, an operational presence in 28 countries and SEK ~280m management teams in 4 market Avg. business unit size
Slide 3: Storskogen in brief
Storskogen in brief Storskogen is an international group of businesses with annual LTM net sales of SEK 36.5bn and EBITA of SEK 3.5bn, split across three business areas and 14 verticals Services Trade Industry Peter Ahlgren Christer Hansson Fredrik Bergegård NO. OF BUSINESS UNITS1 NO. OF BUSINESS UN
Slide 4: Q1 2023 highlights
Q1 2023 highlights Good start to the year with strong sales, earnings and cash flow in a challenging environment KEY EVENTS NET SALES: ORGANIC NET SALES GROWTH: • Good start to the year with an improved adjusted EBITA margin, with Y/Y EPS growth of 118% SEK 9,213m 3% • Y/Y cash flow from operating a
Slide 5: Net sales and EBITA margin
Net sales and EBITA margin Continued good demand and improved profitability despite a seasonally weak first quarter Financial development COMMENT 12 000 • Good sales in the historically 11 000 10.4% 9.4% weaker first quarter 10.0% 10 000 9.7% 9.6% 9.4% 9 836 10% 9 000 9.0% 9.2% • Underlying EBITA ma
Slide 6: Market development
Market development Overall good demand with weakness in certain consumer-facing segments. Reasonable short-term outlook and a continued reduction in the acquisition pace in the short to medium term. MACRO TRANSACTION MARKET AND M&A Continued slowdown in the market and Good demand in Industry and Ser
Slide 7: Overview of financial targets
Overview of financial targets Storskogen’s focus is on operational excellence, the balance sheet and cash flow in the short to medium term MEDIUM- Organic Adjusted EBITA growth Adjusted Adjusted cash Interest-bearing net TERM EBITA growth: including EBITA margin conversion on an debt / TARGETS Real
Slide 8: Services
Services Solid sales growth, +21% in Q1 2023, with a positive margin development NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 3% (Q1), organic EBITA growth 12 000 12% of 2% (Q1) 11 000 10.4% 10.0% 9.9% 10.1% 10 000 9.5% 9.6% 9.1% 9.2% 9.5% 9.7% 10% • Seasonally weak quart
Slide 9: Trade
Trade Solid sales growth, +34% in Q1 2023, but challenging macro environment NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 2% (Q1), organic EBITA growth 11.4% 11.6% 12 000 10.8% 10.8% 12% of -14% (Q1) 11 000 10.5% 10.6% 9.9% 10.0% 10 000 9.6% 9.3% 10% • Continued soft dema
Slide 10: Industry
Industry Strong sales growth, +42% in Q1 2023, and margin expansion NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 4% (Q1), organic EBITA growth 15 000 14% of 24% (Q1) 14 000 11.9% 12.1% 13 000 11.2% 11.3% 11.3% 11.1% 11.0% 11.6% 12% • Similar to Q4, strong underlying marke
Slide 11: Completed transactions
Completed transactions Three acquisitions were completed during the quarter, with a further three companies acquired since the end of March. Two divestments were signed. Acquisitions completed during Q1 Acquisitions completed after Q1 Divestments Business units Add-ons Business Units Add-ons HSV Häs
Slide 12: Key financial performance, Q1 2023
Key financial performance, Q1 2023 Adj. EBITA margin improved vs. Q1 2022. Price increases and cost efficiency partly offset cost inflation and currency headwinds. Q1 Q1 LTM Q1 SEKm 2023 2022 Chg., % 2023 RTM 1) COMMENT Net sales 9,213 6,938 33 36,525 37,704 • Net sales growth of 33% with correspond
Slide 13: Organic growth
Organic growth Positive organic growth in a challenging environment Organic growth (QTD1) 30% 24% 25% 20% 20% 17% 16% 15% 17% 11% 10% 4% 3% 5% 6% 0% -5% -7% -10% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Net sales 1 Comparable sample based on owned portfolio companies as of January
Slide 14: Operating cash flow and cash conversion
Operating cash flow and cash conversion Improved working capital efficiency supported cash flow in Q1. LTM cash conversion ahead of the target level. Operating cash flow1 (LTM) COMMENTS 3 500 3 174 180% • LTM operating cash flow of 3 250 160% SEK 3.2bn 3 000 2 750 2 397 140% • LTM cash conversion of
Slide 15: Net debt and leverage
Net debt and leverage Leverage unchanged at 2.6x, within the target range of 2-3x, and maturities extended in the seasonally weak Q1. Plan to further reduce leverage in the short to medium term. Leverage ratio COMMENTS 18 000 4 • Interest-bearing net debt of 16 000 3.5 SEK 12.1bn, a decrease of SEK
Slide 16: Solid margins across business areas
Solid margins across business areas Our three business areas across the 14 verticals provide a resilient and diversified mix EBITA margin, QTD COMMENTS 14.0% • Diversified mix of portfolio companies providing a layer 12.0% of profitability protection 10.0% • Challenging year, but overall improvement
Slide 17: Key takeaways
Key takeaways Good start to the year despite the seasonally weak quarter Strong start to the year with improved margins and positive organic sales and EBITA growth Similar to Q4, strong trend in Industry, Services stable and Trade weaker Unchanged leverage ratio at 2.6x despite the seasonally weak q
Slide 18: Q&A
Q&A TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO 18