Slide 1: Interim Report Q2 2024
Interim Report Q2 2024 1 April – 30 June Wednesday July 17, 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 Q2 2024 • Alligo’s purchasing process & responsible sourcing • 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 Main concept 9,335 2,443 210 brands: MSEK Revenue* Employees* Stores* 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 Q2 2024 • Alligo’s purchasing process & responsible sourcing • Financials • Summary and outlook • Q&A
Slide 6: Q2 2024 business conditions
Q2 2024 business conditions Market Proactive Delivery Macro-economic situation management capacity factors • Continued weak • Driving sales • Good and stable with • Continued economic market • Growth by some disturbances in uncertainty in the - Several customer acquisitions Vestby business cycle seg
Slide 7: Q2 2024 in brief
Q2 2024 in brief – Acquisition-intensive quarter in a continued weak market Revenue Organic growth Operating cash flow Oil and Gas +1.8% customer segment, bounce -3.2% Acquisition- driven growth of 3.1 % 270 back Easter MSEK (287) Adjusted EBITA Adjusted EBITA margin Gross margin 166 Customer mix 6.
Slide 8: Q2 2024 highlights
Q2 2024 highlights 7 acquisitions Coordination of Preparing launch signed, adding logistics completed of new services 300 MSEK in • Three warehouses in and collections annual revenues Norway moved to the • Smartwear – clothing • Two welding logistic centre in Vestby service companies in Sweden • Sta
Slide 9: Agenda
AGENDA • This is Alligo • Highlights Q2 2024 • Alligo’s purchasing process & responsible sourcing • Financials • Summary and outlook • Q&A
Slide 10: Centralised purchasing in the Nordics
Centralised purchasing in the Nordics – Ensuring the right goods are purchased at the right price • The Nordic assortment and purchasing team is responsible for ensuring that: ̶ Alligo has the right offering for customers ̶ The range meets customers’ needs and demanding sustainability requirements •
Slide 11: Responsible sourcing
Responsible sourcing – Site visit in China spring 2024 • Strong and long-term partnership enables: ̶ More advanced deliveries – from workpants to advanced personal protection jackets ̶ Better opportunities for control • Focus of the site visit: to build relations, negotiate price, discuss sustainabi
Slide 12: Agenda
AGENDA • This is Alligo • Highlights Q2 2024 • Alligo’s purchasing process & responsible sourcing • Financials • Summary and outlook • Q&A
Slide 13: Acquisition-intensive quarter in a continued weak market
Acquisition-intensive quarter in a continued weak market – Decreased contribution margin due to negative mix effects Revenues and EBITA Highlights Q2 2024 2024 2023 2024 2023 • Revenue increased by 1.8 % MSEK Apr-Jun ∆, % Apr-Jun Jan-Jun ∆, % Jan-Jun ̶ Easter bounce back in Norway Revenue 2,432 1.8
Slide 14: Q2 – Deteriorated contribution margin in Sweden and Norway
Q2 – Deteriorated contribution margin in Sweden and Norway – Economic downturn primarily affects small and mid-sized companies Sweden Norway Finland Standard assortment Own brands Store channel/SME Customer segment mix Price adjustments 14
Slide 15: 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 % 500 6 1500 12 800 8 1250 10 400 4 600 6 1000 8 300 2 750 6 400 4 200 0 500 4 100 -2 200 2 250 2 0 -4 0 0 0 0 Q2 2022 Q2 2023 Q2 2024 Q2 2022 Q2 2023 Q2 2024 Q2 2
Slide 16: Q2 operating cash flow is slightly lower than last year
Q2 operating cash flow is slightly lower than last year Q2 Operating activities Q1-Q2 Operating, investing and financing activities • Operating cash flow amounted to 270 MSEK (287) • Investing activities ̶ Decreased EBITDA ̶ E-commerce solutions, ERP, service concepts, ̶ Decreased inventory but incr
Slide 17: Increased leverage but still a solid financial position
Increased leverage but still a solid financial position Overview of the financial position Highlights 30 Jun 30 Jun 31 Dec • Ratio of net operational liabilities MSEK 2024 2023 2023 to EBITDA (excl. IFRS 16) of 2.0 Non-current interest 2,965 2,571 2,624 bearing liabilities • Cash and unutilized gran
Slide 18: Agenda
AGENDA • This is Alligo • Highlights Q2 2024 • Alligo’s purchasing process & responsible sourcing • Financials • Summary and outlook • Q&A
Slide 19: Q2 2024 in summary
Q2 2024 in summary • Acquisition-intensive quarter in a continued weak market • Increased acquisition pace – seven acquisitions signed, two of which in welding. • Strengthened competitiveness by continued focus on ̶ Sales and assortment management ̶ Workwear ̶ Price adjustments ̶ Supplier partnershi
Slide 20: Outlook 2024
Outlook 2024 • Alligo is well-positioned in a weaker market • …ready when market returns: ̶ Refining our sales work ̶ Developing our offer ̶ Adapting the cost structure to market conditions • Continue to creating value through own brands, services and acquisitions: ̶ Launch of INNO and 1832 ̶ Smartw
Slide 21: Q&A
Q&A 21
Slide 22: Appendix
APPENDIX 22
Slide 23: Revenue bridge second quarter 2024
Revenue bridge second quarter 2024 Revenue year-on-year Q2 +1,8% +3.1% 2 432 -3.5% 2 388 +0.3% +1.6% +0.4% Revenue Comparable Currency Number of New stores Other Revenue Q2 2023 stores in local effects working days units Q2 2024 currency 23
Slide 24: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2024 2023 2024 2023 2023 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec IFRS 16 effects on cash flow 108 66 189 148 365 from operations IFRS 16 effects on cash flow -108 -66 -189 -148 -365 from financing activities 24
Slide 25: 2024 – seven acquisitions signed, adding ≈320 MSEK in annual revenues
2024 – seven acquisitions signed, adding ≈320 MSEK in annual revenues – as well as 77 employees and 13 stores Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Hämeen Teollisuuspalvelu Oy** Industrial Components/Tools/Workwear/Protective April 2024 87 14 1 Equipment I
Slide 26: 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 27: 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 28: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Market Scalable Own brands Sustainability Leader in the growth and platform a increase an consolidation resilient foundation competitiveness integrated process on customer for continued and part of the the Nordic segments growth profitability business marke
Slide 29: Read more at alligo.com/interimreport Q2
Read more at alligo.com/interimreport Q2