Slide 1: Interim report Q1 2023
Interim report Q1 1 January – 31 March 2023 Friday, 28 April 2023 1
Slide 2: Presenters
Presenters Clein Johansson Ullenvik Irene Wisenborn Bellander Group President & CEO CFO 2
Slide 3: Agenda
AGENDA • Highlights Q1 2023 • Business update • Customer strategy • Financials • Summary and outlook • Q&A All figures in the presentation apply to continuing operations unless otherwise stated
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 Finland: 37 stores Norway: 57 stores 9,211 2,371 203 MSEK Revenue Employees Stores Main concept brands Estonia: 2 stores Sweden: 107 stores 4
Slide 5: 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 6: Alligo at a glance
Alligo at a glance Revenue EBITA Revenue per geographic area 2022 per geographic area 2022 per brand category 2022 Total revenue: MSEK 9,211 Total EBITA: MSEK 756 (8.2%) Share of own brands 8% 17% 18% 14% 78% 27% 56% 82% Sweden Norway Finland Own brands External brands Sweden Norway Finland 6
Slide 7: Agenda
AGENDA • Highlights Q1 2023 • Business update • Customer strategy • Financials • Summary and outlook • Q&A All figures in the presentation apply to continuing operations unless otherwise stated
Slide 8: Q1 in brief - Profitable growth despite a weaker market
Q1 in brief - Profitable growth despite a weaker market • Revenue +9.2 % to MSEK 2,287 (2 095) + 9.2 % • Adjusted EBITA increased by 20.9% to MSEK 127 (105) Revenue growth • Cash flow from operating activities higher MSEK 146 (-30) – still high inventory levels • Signed agreements with 2 new key acc
Slide 9: Q1 business conditions
Q1 business conditions Market Proactive Delivery Macro-economic situation management capacity factors • Strong demand in • Price adjustments • Good and stable • Continued Norway and Finland, • Sensitive categories uncertainty tendency to • Geopolitical • Reviewing customer slowdown turbulence profit
Slide 10: How Alligo responds to a challenging market
How Alligo responds to a challenging market – with on-going and planned actions… Growth initiatives Stock reduction • Customer mix • Target to reduce inventory • Service offering • Increase turnover rate • Acquisitions Price increases Efficiency measures • Ensure that pricing reflects our • Integrat
Slide 11: Customer strategy
CUSTOMER STRATEGY 11
Slide 12: Alligo's customer segments and markets at a glance
Alligo’s customer segments and markets at a glance Nordic main markets Customers Main competitors • SEK 53 billion • Small and medium- • Chains focusing yearly revenue sized enterprises on industry and • Large industrial construction companies • Independent local • Public sector operators • 8 define
Slide 13: Customer segments – Highlights 2022
Customer segments – Highlights 2022 - Growth within all prioritized segments 32 % (31) 23 % (24) 8 % (7) 5 % (5) Share of Share of Share of Revenue Revenue 2022 Share of Revenue Revenue 2022 2022 2022 4 % (4) 3 % (4) 1 % (1) 6 % (5) Share of Share of Share of Revenue 2022 Revenue 2022 Revenue 2022 S
Slide 14: Country sales by channel, product category and own brands, 2022
Country sales by channel, product category and own brands, 2022 Sweden Norway Finland 14
Slide 15: Actions to gain market shares
Actions to gain market shares SME • Investments in new stores - Finland • Refurbishing existing stores - Sweden, Norway, Finland • Campaigns to targeted customer segments • Marketing efforts Key accounts • Environmental tech sector • Service offering 15
Slide 16: Actions to gain market shares – examples
Actions to gain market shares – examples: Investments in new locations – Alligo Smart Service utilisation i.e. in Mikkeli, Finland –i.e. Škoda Transtec 16
Slide 17: Financials
FINANCIALS 17
Slide 18: Group in summary – Profitable growth in a weaker market
Group in summary – Profitable growth in a weaker market Revenues and EBITA Highlights Q1 • Revenue increased by 9.2% 2023 2022 2023-03-31 2022 Jan-Mar ∆, % Jan-Mar R12 months ∆, % Jan-Dec ̶ Organic growth of 3.6% MSEK ̶ Positive currency effect 0.2% Revenue 2,287 9.2 2,095 9,403 2.1 9,211 ̶ One more
Slide 19: Profitable growth in NO and FI, but weaker in SE
Profitable growth in NO and FI, but weaker in SE Sweden Norway Finland MSEK % MSEK % MSEK % 1750 18 800 6 500 6 1500 15 5 400 4 600 1250 12 4 300 2 1000 400 3 9 200 0 750 6 2 500 200 100 -2 3 1 250 0 -4 0 0 0 0 Q1 2021 Q1 2022 Q1 2023 Q1 2021 Q1 2022 Q1 2023 Q1 2021 Q1 2022 Q1 2023 Revenue, MSEK Adj
Slide 20: Improved operating cash flow
Improved operating cash flow – Still high inventory levels Q1 Operating activities Q1 Operating, investing and financing activities • Operating cash flow amounted to 146 MSEK (-30 MSEK) • Investing activities ̶ Decreased prepayments to Asian own-brand suppliers ̶ E-commerce investments, store adapti
Slide 21: Strong financial position
Strong financial position Overview of the financial position Highlights MSEK 31 Mar 2023 31 Dec 2022 • Ratio of net operational liabilities to EBITDA (excl. IFRS 16) of 1.8 Non-current interest bearing liabilities 2,422 2,410 • Unutilized credit facilities of MSEK 960 Current interest bearing liabil
Slide 22: Summary and outlook
SUMMARY AND OUTLOOK 22
Slide 23: Q1 in summary
Q1 in summary • Solid start to the year ̶ Profitable growth ̶ Improved cash flow • Uncertain macroeconomic environment ̶ Intensified slowdown in Sweden ̶ Tendency toward slowdowns in Norway and Finland • One acquisition in Finland • Good delivery capacity for own brands ̶ Too high stock levels – sev
Slide 24: Outlook 2023
Outlook 2023 • Alligo is well-positioned in an uncertain market • Focus on driving sales, developing our offer and streamlining our processes ̶ Nordic standard assortment and roll-out of own brands • Good availability for the spring season ̶ Capital reduction • Increase the share of small and medium
Slide 25: Alligo
ALLGO 25
Slide 26: Appendix
APPENDIX 26
Slide 27: Revenue bridge first quarter 2023
Revenue bridge first quarter 2023 Revenue year-on-year Q1 +9,2% 3.7% 2 287 1.6% 3.6% 0.2% 2 095 Revenue Comparable Currency Number of Other Revenue Q1 2022 stores in local effects working days units Q1 2023 currency 27
Slide 28: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2023 2022 2022 2021 MSEK Jan-Mar Jan-Mar Jan-Dec Jan-Dec IFRS 16 effects on cash flow from operations 82 95 364 362 IFRS 16 effects on cash flow from financing activities -82 -95 -364 -362 28
Slide 29: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Attractive Scalable Own brands Sustainability A leader market growth platform is and services as an in the and resilient a foundation increase integrated consolidation customer for continued competitiveness part of the of the segments growth and profitabili
Slide 30: Solid performance in 2022 in relation to Financial Targets
Solid performance in 2022 in relation to Financial Targets 30
Slide 31: Performance 2022 in relation to Sustainability Targets
Performance 2022 in relation to Sustainability Targets 31
Slide 32: Alligo's material sustainability issues and the UN Global Goals
Alligos material sustainability issues and the UN Global Goals for sustainable development • Customer satisfaction • Product quality and safety • Climat impact • Diversity and equality • Environmental impact and chemicals • Work environment and health • Transparent sustainability communication and •