Slide 1: Interim Report Q3 2024
Interim Report Q3 2024 1 January – 30 September Thursday, October 24, 2024 1
Slide 2: Presenters
Presenters Clein Johansson Ullenvik Irene Wisenborn Bellander Group President & CEO CFO 2
Slide 3: Agenda
AGENDA • This is Alligo • Highlights Q3 2024 • Update – Sales initiatives and Alligo’s welding offer • Financials • Summary and outlook • Q&A
Slide 4: Alligo – a leading player in workwear, personal protection, tools and supplies
Alligo – a leading player in workwear, personal protection, tools and supplies in the Nordic region 9,335 2,443 210 Main concept MSEK Revenue* Employees* Stores* brands: Revenue EBITA Revenue per geographic area 2023 per geographic area 2023 per brand category 2023 4% 16% 19% 19% 77% 26% 81% 58% SE
Slide 5: Agenda
AGENDA • This is Alligo • Highlights Q3 2024 • Update – Sales initiatives and Alligo’s welding offer • Financials • Summary and outlook • Q&A
Slide 6: Q3 2024 business conditions
Q3 2024 business conditions Market Proactive Delivery Macro-economic situation management capacity factors • Continued weak • Driving sales • Good and stable in • Continued economic market • Growth by Sweden and Finland uncertainty in the - Several customer acquisitions • Continued business cycle se
Slide 7: Q3 2024 in brief
Q3 2024 in brief – Continued weak market - several initiatives for the future Revenue Organic growth Operating cash flow Continued +1.0% slowdown in the market, Oil & Gas -3.0% Acquisition- driven growth of 4.8 % 116 remain stable MSEK (34) Adjusted EBITA Adjusted EBITA margin Gross margin Weak volu
Slide 8: Q3 2024 highlights
Q3 2024 highlights Alligo has signed a 4 acquisitions Sales initiatives to sustainability-linked completed drive profitable loan agreement with • Adding 220 MSEK in growth Handelsbanken annual revenue • Appointed two Nordic • Refers to granted loans • Two acquisitions segment managers of SEK 2.3 bil
Slide 9: Agenda
AGENDA • This is Alligo • Highlights Q3 2024 • Update – Sales initiatives and Alligo’s welding offer • Financials • Summary and outlook • Q&A
Slide 10: We invest in growth towards our prioritised customer segments
We invest in growth towards our prioritised customer segments Reinforced sales organisation Priority to sell • Segment managers for manufacturing and construction to workwear and improve packaging and control of our offering and sales protection to • Assortment specialists to boost sales of workwear
Slide 11: Alligo has strongly reinforced its position in welding
Alligo has strongly reinforced its position in welding 6 +400 84 Companies MSEK Revenue Employees • Since June 2023, Alligo has acquired Corema Sundsvall AB 6 welding specialists Sundsvall Pirkka-Hitsi Oy • Growth of the existing welding business T. Brantestig Varkaus of Swedol/Tools in Sweden, Norw
Slide 12: Why welding is a good fit for Alligo
Why welding is a good fit for Alligo • Interesting characteristics ̶ Technical sales, adding expertise to the customers ̶ Critical supply to the customers’ core processes ̶ Long-term customer relationships ̶ Good margins • Significant synergy potential ̶ Large customer base in Swedol/Tools with pote
Slide 13: Interesting opportunities ahead
Interesting opportunities ahead • The welding specialist companies continue as separate entities within Alligo ̶ Preserve specialist position ̶ Coordination with Tools/Swedol and among welding companies to realise synergies • Potential for additional acquisitions ̶ Have more prospects in the pipelin
Slide 14: 2024 – signed 8 acquisitions, adding ≈470 MSEK in annual revenues
2024 – signed 8 acquisitions, adding ≈470 MSEK in annual revenues – as well as 100 employees and 15 stores. So far. Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Hämeen Teollisuuspalvelu Oy Industrial Components/Tools/Workwear/ April 2024 87 14 1 Protective Equipm
Slide 15: Agenda
AGENDA • This is Alligo • Highlights Q3 2024 • Update – Sales initiatives and Alligo’s welding offer • Financials • Summary and outlook • Q&A
Slide 16: Acquisition driven growth counteracts weak organic sales
Acquisition driven growth counteracts weak organic sales – Decreased contribution margin due negative customer segment and size mix Revenues and EBITA Highlights Q3 2024 2024 2023 2024 2023 • Revenue increased by 1.0 % MSEK Jul-Sep ∆, % Jul-Sep Jan-Sep ∆, % Jan-Sep ̶ Organic growth of -3.0 % Revenue
Slide 17: Deteriorated contribution margin in all countries
Deteriorated contribution margin in all countries – Continued negative customer segment and size mix Sweden Norway Finland Standard assortment Own brands Mix Store channel/SME Group GM% -0.6 p.p Mix Customer segment mix Group GM% -0.3 p.p Price adjustments 17
Slide 18: Decreased EBITA in all countries
Decreased EBITA in all countries – Declining volumes and negative customer segment and size mix Sweden Norway Finland MSEK % MSEK % MSEK % 1 500 14 700 10 500 9 12 8 1 250 600 400 8 7 10 500 6 1 000 8 400 6 300 5 750 6 300 200 4 4 500 3 4 200 2 100 2 250 2 100 1 0 0 0 0 0 0 Q3 2022 Q3 2023 Q3 2024 Q
Slide 19: Operating cash flow in Q3 is slightly better than last year
Operating cash flow in Q3 is slightly better than last year Q3 Operating activities Q1-Q3 Operating, investing and financing activities • Seasonally the weakest quarter • Investing activities • Operating cash flow amounted to 116 MSEK (34) ̶ E-commerce solutions, ERP, service concepts, ̶ Decreased E
Slide 20: Increased leverage but still a solid financial position
Increased leverage but still a solid financial position Overview of the financial position Highlights 30 Sep 30 Sep 31 Dec • Ratio of net operational liabilities MSEK 2024 2023 2023 to EBITDA (excl. IFRS 16) of 2.2 Non-current interest 2,937 2,645 2,624 bearing liabilities • Cash and unutilized gran
Slide 21: Agenda
AGENDA • This is Alligo • Highlights Q3 2024 • Update – Sales initiatives and Alligo’s welding offer • Financials • Summary and outlook • Q&A
Slide 22: Q3 2024 in summary
Q3 2024 in summary • Continued weak market – to drive profitable growth we are investing in: ̶ Developing and strengthening our offering ̶ Improving our sales effort ̶ Making strategic acquisitions • Increased acquisition pace with four acquisitions completed during the quarter ̶ adding 220 MSEK in
Slide 23: Outlook 2024
Outlook 2024 • Alligo is well-positioned and continue to focus on sales and to create value through own brands, services and acquisitions • Customising our assortment with new attractive brands with a lower price positioning ̶ 1832 ̶ INNO ̶ Prowell ̶ AWARD • Aiming to set climate targets in line wit
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
APPENDIX 25
Slide 26: Revenue bridge third quarter 2024
Revenue bridge third quarter 2024 Revenue year-on-year Q3 +1,0% +4.8% 2 143 2 122 -3.4% +0.4% +1.5% +0.4% Revenue Comparable Currency Number of New stores Other Revenue Q3 2023 stores in local effects working days units Q3 2024 currency 26
Slide 27: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2024 2023 2024 2023 2023 MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec IFRS 16 effects on cash flow 99 96 288 244 365 from operations IFRS 16 effects on cash flow -99 -96 -288 -244 -365 from financing activities 27
Slide 28: 2023 – six acquisitions signed, adding 330 MSEK in annual revenues
2023 – six acquisitions signed, adding 330 MSEK in annual revenues – as well as 80 employees and 8 stores Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Kitakone Oy Workwear/Tools April 2023 34 8 1 Topline AB (70%) Workwear/Profile Clothing/Product Media May 2023 6
Slide 29: The origins of Alligo
The origins of Alligo The mail order Components & company Swedol Services (Momentum is established in Swedol is Group) is distributed Tyresö, Sweden. Swedol begins store listed on Momentum Group to shareholders and expansion phase with Nasdaq changes name to separately listed on 11 new stores Stockh
Slide 30: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Market Scalable Own brands Sustainable Leader in the growth and platform a increase enterprise consolidation resilient foundation competitiveness an integrated process on customer for continued and part of the the Nordic segments growth profitability busine
Slide 31: Read more at alligo.com/interimreport_Q3
Read more at alligo.com/interimreport_Q3