Slide 1: Interim Report Q1 Jan-Mar 2023
Interim Report Q1 Jan-Mar 2023 Andreas Stenbäck, CEO Martin Aronsson, CFO 25 April 2023 Volati Interim report January - March 2023
Slide 2: Volati is a growing group of well-managed companies with strong earnings
Volati is a growing group of well-managed companies with strong earnings +16% +39% Volati EBITA EBITA CAGR growth LTM since 2017 Net sales, LTM Q1 2023 SEK 7,967 m EBITA, LTM Q1 2023 SEK 766 m +16% +29% +44% Industry EBITA CAGR ~33% ~17% EBITA CAGR ~50% EBITA CAGR since 2017 since 2017 since 20171 S
Slide 3: Proven track record of long-term value creation
Proven track record of long-term value creation MSEK 1 000 950 900 CAGR 850 800 23% 766 • Average annual growth of 21% in sales and 23% 750 710 in EBITA last 10 years 700 664 650 600 • SEK 1,8 billion distributed to common 550 shareholders since the IPO in 2016 490 488** 500 450 433 • Average annual
Slide 4: Proven track record of long-term value creation (cont.)
Proven track record of long-term value creation (cont.) Continued operations, Growth, percent 86% 55% 53% EBITA growth 35% Ø 39 21% 10% Q1 2023 2022 2021 2020 2019 2018 Organic net sales 10% 8% growth 4% 3% Ø 5% 1% Q1 2023 -2% 2022 2021 2020 2019 2018 41% 36% Organic EBITA growth 12% 18% Ø 19% 6% -8
Slide 5: A good start to 2023
A good start to 2023 • Strong Q1 for Volati with net sales growth of +13% and EBITA increase of +55% compared to Q1 2022 • Earnings per ordinary share grew with +63% in the quarter • Industry delivers a very strong first quarter across all four platforms with a sales growth of 43% and an EBITA growt
Slide 6: Financial development, Q1 2023
Financial development, Q1 2023 SEK +13% +55% +275 m Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 1,890 m SEK 159 m SEK 127 m 2.0 x (Q1 2022: 1,665) (Q1 2022: 102) (Q1 2022: -149) (Q1 2022: 1.7x) Net sales, SEK m EBITA, SEK m 2 250 250 2 000 1 750 200 1 500 150 1 250 1 000 100 750
Slide 7: Financial development, LTM Q1 2023
Financial development, LTM Q1 2023 +15% vs Q1 LTM 2022 800 CAGR 25 766 +39% Net sales 750 710 700 7,976 664 650 SEK m 20 600 (Q1 2022: 6,720) 550 500 15 EBITA 450 421 766 400 SEK m 350 312 10 (Q1 2022: 665) 300 10,5% 257 9,6% 250 9,2% 5,8% 8,6% 200 7,6% 7,5% Operating cash flow 150 138 5 SEK 707 m 1
Slide 8: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is an average annual growth in The long-term target is a return on The target is a net debt/adjusted EBITDA2) EBITA2) per ordinary share of at least 15 adjusted equity2) of 20 percent1). ratio of 2 to 3 times, and
Slide 9: Three business areas with growth focus
Three business areas with growth focus Industry Products and materials for Self-adhesive labels and Four businesses with leading builder’s hardware, machines for various market positions in their niches; consumables, construction, home applications; from decorative Products and solutions for grain &
Slide 10: Salix Group
Salix Group CAGR +5% vs Q1 • Sales decline of -3% in the quarter and +5% LTM +16% 2022 LTM • Decreased EBITA margin of 2pp in the quarter 4 000 25 • Relatively good demand in the industrial and professional segments, 3 598 3 575 however continued weaker demand in the consumer segment 3 500 3 262 • C
Slide 11: Ettiketto Group
Ettiketto Group +23% vs Q1 • Sales growth of 2% in the quarter and 23% LTM CAGR 2022 LTM +29% • EBITA margin increase of 2pp in the quarter 879 884 900 25 • Continued good demand, as the demand for our products is resilient to shifts in the general economy 800 • Continued work with extracting synerg
Slide 12: Industry
Industry • Strong quarter with 43% sales growth, 36% LTM CAGR • EBITA increased by 350% in the quarter 4 000 +44% +36% vs 25 • All four units are growing and at the same time improving EBITA margins, Q1 2022 especially within Communications which continues to see high demand 3 524 3 500 3 280 for MA
Slide 13: Acquisitions LTM with a total annual turnover of SEK 753 million
Acquisitions LTM with a total annual turnover of SEK 753 million EBITA EBITA Industry EBITA ~50% ~33% ~17% Industry SALES Heco SALES Beneli January 2020 183 MSEK June 2020 156 MSEK SALES Pisla SALES Märkas September 2020 242 September 2020 168 MSEK Corroventa Tornum S:t Eriks MSEK Communication Dusc
Slide 14: Recent acquired annual turnover of SEK 700-1,200 million
Recent acquired annual turnover of SEK 700-1,200 million 1 170 1 125 1 086 • M&A have over time contributed with 1 021 1 017 annual sales of SEK 700–1,200 million • Annual pace of 6–8 acquisitions 867 770 823 • Majority of the acquisitions are value 749 753 742 8 8 8 creating add-on acquisitions, en
Slide 15: Case JW Installations Ltd
Case JW Installations Ltd • Annual sales of SEK~40 million • A leading supplier of grain handling equipment in the UK, founded in 1965 • JWI has built a successful sales and service organisation and as a part of Tornum, JWI gains access to a broader product offering, providing them with good opportu
Slide 16: Continued strong position for acquired growth
Continued strong position for acquired growth Net debt, SEK m 1 988 1 888 1 760 1 632 • Operating cashflow of SEK 127 million in the quarter, an 1 175 1 344 1 017 1 049 1 024 increase of SEK 276 million compared to Q1 2022 893 844 561 • Net debt increase with SEK 128 million in the quarter due to -
Slide 17: Summary
Summary Strong first quarter in 2023 • Volati shows EBITA growth of 55% • Earnings per ordinary share grew with +63% • Strong cash flow through successfully reducing working capital Focus on long-term value creation • Annual average EBITA growth of 39% for continued operations during the last 5 year
Slide 18: volatl.
volatl.