Volati Ab · OMXSTO:VOLO
Volati Ab — Q1 2022 Earnings Presentation
20 slides from Volati Ab's earnings presentation, Apr 26, 2022
Slide 1: Interim Report Q1 Jan–Mar 2022
Interim Report Q1 Jan–Mar 2022 Andreas Stenbäck, CEO Martin Aronsson, CFO 26 April 2022 1
Slide 2: A. Volati at a glance, B. Quarter one update
A. Volati at a glance B. Quarter one update Volati Interim Report January – March 2022 2
Slide 3: Volati is a growing group of well-managed companies with strong earnings
Volati is a growing group of well-managed companies with strong earnings Volati Net sales, LTM Q1 2022 SEK 6,720 m EBITA, LTM Q1 2022 SEK 665 m Share of Share of +15% group ~46% ~54% group +55% EBITA EBITA, EBITA, Industry EBITA growth LTM LTM Q1 LTM Q1 growth LTM Volati Interim Report January – Mar
Slide 4: A value-creating business model
A value-creating business model “We believe in entrepreneurship “15 of our 22 CEOs are and it is our view that the best internally recruited” business decisions are made close to customers and the market” Volati Management Program Volati creates value by acquiring and developing strong platforms. Ou
Slide 5: Volati is about long term value growth
Volati is about long term value growth • We build strong platforms through focusing on adding value to our units, while still ensuring a decentralized model • We continuously develop the leadership and talent in our organization, to ensure our platforms have access to competence • We are focused on
Slide 6: A. Volati at a glance, B. Quarter one update
A. Volati at a glance B. Quarter one update Volati Interim Report January – March 2022 6
Slide 7: A good start to 2022
A good start to 2022 • Net sales growth +33% to SEK 1,665 million • EBITA growth +1% to SEK 102 million • Negative impact from ─ The war in Ukraine ─ Now ended strike at the UPM factory in Finland • Four add-on acquisitions YTD, adding annual revenues of SEK 650 million • Salix Group revenues +20% a
Slide 8: Financial development, Q1 2022
Financial development, Q1 2022 +33% +1% Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 1,665 m SEK 102 m SEK -149 m 1.7 x (Q1 2021: 1,254) (Q1 2021: 102) (Q1 2021: -35) (Q1 2021: 0.8x) Net sales, SEK m EBITA, SEK m 1800 1600 200 1400 1200 150 1000 800 100 600 400 50 200 0 0 Kv.1 Kv
Slide 9: Seasonal variations
Seasonal variations Historical distribution of EBITA per quarter Volati has seasonal ~20% ~15% variations, with Q1 being the smallest in terms of Q1 EBITA. Q2 Q3 Volati’s earnings are thus most appropriately 30-35% Q4 analyzed in rolling 12 30-35% months. Volati Interim Report January – March 2022 9
Slide 10: Financial development, LTM Q1 2022
Financial development, LTM Q1 2022 Net sales CAGR +43% +45% SEK 6,720 m 700 597 664 665 25% (Q1 2021: 5,147) 600 20% 512 500 464 EBITA 421 15% 665 400 SEK m 312 300 (Q1 2021: 464) 257 10% 10,2% 10,5% 9,9% 138 9,0% 9,4% 200 8,6% 7,6% 7,5% Operating cash flow 5% 5,8% 372 100 SEK m 0 0% 2017 2018 2019
Slide 11: 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 as an
Slide 12: Two business areas with high growth focus
Two business areas with high growth focus Industry Products and solutions for companies in Products in builder’s hardware, grain management, dampness and water consumables, and materials for damage management, labels, critical construction, home and garden, packaging infrastructure e.g. for telecom,
Slide 13: Growth focus and disciplined pricing
Growth focus and disciplined pricing • Sales increased by 20% and EBITA by 9% over Q1 2022 • Healthy growth despite high comparative figures from last year 46% • Increased demand in the construction and wood industries for professionals, some cautiousness in the consumer segment of Group • Disciplin
Slide 14: Financial development, LTM Q1 2022
Financial development, LTM Q1 2022 CAGR +26% +15% 350 335 25% 326 329 312 300 292 265 20% 250 Net sales 15% 200 178 SEK 3,409 m 150 125 158 10% (Q1 2021: 2,804) 10,4% 10,5% 10,4% 10,1% 9,9% 9,8% 100 8,3% 7,8% 7,5% EBITA 5% 50 SEK 335 m 0 2017 2018 2019 2020 LTM Q1 LTM Q2 LTM Q3 LTM Q4 LTM Q1 0% (Q1
Slide 15: Industry
Business area Industry Strong demand, result impacted by short-term negatives • Sales growth of 50% and an EBITA increase of 1%, vs. Q1 2021 • EBITA negatively impacted by Tornum’s exposure to Ukraine and Russia (-25 MSEK) and the now ended strike at UPM in Finland (-10 MSEK) 54% • Strong underlying
Slide 16: Financial development, LTM Q1 2022
Financial development, LTM Q1 2022 CAGR +55% +46% 397 397 Business area 400 25% Industry 350 343 20% 300 278 256 250 236 Net sales 13,0% 15% 12,6% 12,0% 3,314 200 11,3% 11,4% 10,6% 179 10,5% 10,9% SEK m 144 8,9% 10% 150 (Q1 2021: 2,344) 100 79 5% EBITA 50 SEK 397 m 0 2017 2018 2019 2020 LTM Q1 LTM Q
Slide 17: Acquisitions LTM with a total annual turnover of SEK 1.6 billion
Acquisitions LTM with a total annual turnover of SEK 1.6 billion, SEK 650 million YTD Acquisition capacity SEK +2.0 Bn. company value Scanmast StrongPoint Labels Byggsystem Direkt Apisa Meag Va-system SALES SALES SALES SALES SALES June 2021 295 June 2021 185 June 2021 60 July 2021 150 October 2021 1
Slide 18: Case MAFI
Case MAFI • Sales of SEK ~325 million • A global market leader within its niche, offering mounting solutions, primarily for telecom equipment and solar panels. • The company, founded in 1992, is headquartered in Mora • In addition to Sweden, MAFI is represented in the US, China and Kenya. • Volati’s
Slide 19: Summary
Giving companies the Summary right conditions to grow Continuing to offer long term value growth • Net sales growth +33% to SEK 1,665 million Delivering on our growth journey • Acquisition of Skipnes and Gunnar Eiklid AS • Acquisition of Terästorni and MAFI after end of Q1 • Acquisitions the last 12
Slide 20: volatl.
volatl.