Slide 1: Q1 Interim report January–March 2018
Q1 Interim report January–March 2018 Mårten Andersson, CEO Mattias Björk, CFO 9 May 2018
Slide 2: Financial development in Q1 2018
Financial development in Q1 2018 Net sales 1600 1400 Net sales, SEKm SEK 1,355m (744) 1200 2014 1000 2015 800 2016 600 2017 400 2018 EBITA 200 0 SEK 51m (40) Q1 Q2 Q3 Q4 160 EBITA, SEKm 140 120 Organic EBITA growth 100 2014 2015 9% 80 2016 60 2017 40 2018 20 0 Q1 Q2 Q3 Q4 2
Slide 3: Strong development from organic growth and acquisitions
Strong development from organic growth and acquisitions Q1 2018 in brief Long-term perspective • Strong EBITA growth of 27 % • Average organic EBITA growth over • Healthy organic growth of 9% the last five years slightly more than 8% • Positive effects from 2017 acquisitions • Average acquired EBITA
Slide 4: Financial development LTM Q1 2018
Financial development LTM Q1 2018 6 000 Net sales Net sales, SEKm 5 000 SEK 4,967m 4 000 3 000 Net sales LTM Q1 (4,356 FY2017) 2 000 2018 1 000 EBITA 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SEK 387m (377 FY2017) 2014 2015 2016 2017 2018 450 EBITA, SEKm Cash conversion 400 94% (112 FY2017) 350 30
Slide 5: Trading Business Area
Trading Business Area Jan-Mar Jan-Mar LTM Full-year 2018 2017 Q1 2018 2017 Net sales, SEK m 468 339 1 743 1 615 EBITDA, SEK m 23 16 143 136 EBITA, SEK m 19 14 130 125 EBITA-margin, % 4 4 7 8 EBIT, SEK m 16 13 123 119 ROCE exkl. goodwill, % 34 36 34 35 Q1 2018 in brief • Positive effects from acquisi
Slide 6: Consumer Business Area
Consumer Business Area Jan-Mar Jan-Mar LTM Full-year 2018 2017 Q1 2018 2017 Net sales, SEK m 238 249 954 966 EBITDA, SEK m 26 36 157 167 EBITA, SEK m 17 28 123 134 EBITA-margin, % 7 11 13 14 EBIT, SEK m 14 25 112 123 ROCE exkl. goodwill, % 202 200 202 206 Q1 2018 in brief • No acquisitions in quarte
Slide 7: Akademibokhandeln Business Area
Akademibokhandeln Business Area Jan-Mar Jan-Mar Jul 2017 - Jul-Dec 2018 2017* Mar 2018** 2017** Net sales, SEK m 436 435 1 465 1 029 EBITDA, SEK m -1 0 115 116 EBITA, SEK m -7 -6 98 105 EBITA-margin, % -2 -1 7 10 EBIT, SEK m -13 -12 80 93 ROCE exkl. goodwill, % 201 - 201 187 Q1 2018 in brief • Stabl
Slide 8: Industry Business Area
Industry Business Area Jan-Mar Jan-Mar LTM Full-year 2018 2017 Q1 2018 2017 Net sales, SEK m 213 155 805 747 EBITDA, SEK m 38 19 126 106 EBITA, SEK m 32 12 99 79 EBITA-margin, % 15 8 12 11 EBIT, SEK m 32 11 98 77 ROCE exkl. goodwill, % 58 77 58 46 Q1 2018 in brief • Healthy net sales growth from str
Slide 9: Strong focus on long-term value creation with strengthened organisation
Strong focus on long-term value creation with strengthened organisation Acquisitions In charge of platform acquisitions Trading Consumer Akademibokhandeln Industry Håkan Karlström Johan Ekström Maria Edsman Nicklas Margård Add-on acquisitions, business development and operations follow-up 9
Slide 10: Net debt/EBITDA ratio well within limits of financial targets
Net debt/EBITDA ratio well within limits of financial targets Cash conversion Sales and EBITA Net debt/(cash) % SEKm SEKm 112% 1100 5 669 2.8 2,8 94% 94% 4 967 900 2.4 2.3 786 2,3 90% 89% 762 4 356 756 700 1,8 619 1.5 483 1.2 3 206 1,3 62% 500 0,8 2 188 300 0,3 1 509 1 656 100 (265) -0,2 1 377 387 4
Slide 11: A value creating business model
A value creating business model Volati’s success has been created through a proven business model that is the same today as when the company was founded in 2003. It is based on four mutually reinforcing foundations. …is used for Stong cash flow acquisitions of …at reasonable …and with a long from th
Slide 12: "Rather turn down a good deal than risk making a bad one."
”Rather turn down a good deal than risk making a bad one.” PATRIK WAHLÉN 12
Slide 13: Well-positioned for additional acquisitions
Well-positioned for additional acquisitions Acquisitions in 2017 Volati’s acquisitions Acquisition multiples • Adding SEK 139m in EBITA 7.9x 6.9x 7.0x Ready for further acquisitions 6.1x • Efficient organization with reinforced 5.1x 5.3x 5.6x 5.5x 5.2x 4.8x business areas 4.5x 4.7x 4.4x 3.9x • Conti
Slide 14: Moving towards our financial targets
Moving towards our financial targets EBITA growth Cash conversion Capital structure Return on Common equity adjusted equity dividend policy SEK 700m >85% <3.0x >20% ~10-30% (by 2019) (long-term) (long-term) Reach an adjusted Annual cash Volati’s long-term Long-term reach a Distribute 10-30% of EBITA
Slide 15: Conclusions and steps ahead
Conclusions and steps ahead Reinforced business area organisation • Enables efficient management of add-on acquisitions • Provides management resources to achieve the strategic plans and value creation in the business units Capital structure for future acquisitions • Good position for continuing our
Slide 16: A growing Swedish industrial group
A growing Swedish industrial group 16
Slide 17: Appendix
Appendix volati.
Slide 18: Business area Trading
Business area Trading An operational business area Island • Organised in 7 business units Integrated business model • Focused on four market segments: – Construction consumables and hardware (primarily B2B) o Clients include companies within the Nordic professional and do-it-yourself markets such as
Slide 19: Business area Consumer
Business area Consumer A strategic business area • Organised in 3 business units Strong local entrepreneurship • Business units focused on B2C niches • Strong local entrepreneurship combined with collaboration in selected areas such as database marketing, digitalisation and e-commerce • Business are
Slide 20: Business area Akademibokhandeln
Business area Akademibokhandeln Overview • Organised in 1 business unit Sweden’s leading book retailer • The only successful omni-channel player – # 1 in physical bookstores – # 2 online retailer – 37% total market share • Sales from own and franchise stores together with e-commerce channels (akadem
Slide 21: Business area Industry
Business area Industry A strategic business area Thailand • Organised in 3 business units Strong local entrepreneurship • Business units focused on B2B niches • Strong local entrepreneurship combined with collaboration in selected areas such as international expansion, lean manufacturing and HR • Bu
Slide 22: Income statement
Income statement SEKm 2015 2016 2017 Q1 2018 LTM Q1 2018 Net sales 2,188 3,207 4,356 4,967 1,355 Raw materials and supplies -933 -1,526 -2,228 -2,648 -764 Other external costs -413 -516 -684 -759 -212 Personnel costs -582 -771 -983 -1 085 -304 Other income 18 4 7 14 7 Other operating costs -3 -12 -9
Slide 23: Balance sheet
Balance sheet SEKm 31 Dec 2015 31 Dec 2016 31 Dec 2017 31 Mar 2018 Intangible fixed assets 1,689 1,840 2,934 2,950 Tangible fixed assets 180 191 241 238 Financial fixed assets 13 8 10 10 Other non-current marketable securities 7 - - - Deferred tax assets 33 42 59 63 Total non-current assets 1,922 2,
Slide 24: Cash flow statement
Cash flow statement SEKm 2015 2016 2017 Q1 2018 LTM Q1 2018 Profit before tax 161 254 305 296 24 Adjustment for non-cash items 96 122 146 158 40 Interest paid -45 -39 -21 -26 -6 Interest received 1 0 1 1 0 Cash taxes -19 -41 -62 -76 -33 Cash flow before changes in working capital 196 295 369 353 25
Slide 25: Net debt and working capital
Net debt and working capital SEKm 31 Dec 2015 31 Dec 2016 31 Dec 2017 Q1 2018 LTM Net debt Cash and cash equivalents -200 -371 -438 -192 Unrealised derivate instruments assets 0 0 0 0 Pension liabilities 2 2 2 2 Non-current interest-bearing liabilities 908 54 984 968 Current interest-bearing liabili
Slide 26: Definitions of key metrics
Definitions of key metrics Metric Explanation Adjusted Explanation Business area return on capital employed (BA BA EBITA in relation to BA capital employed - - ROCE) Cash conversion excluding capex related to Besikta IT Cash conversion Operating cash flow in relation to EBITDA Adj. cash conversion i