Slide 1: Interim Report Q2
Interim Report Q2 1 January – 30 June 2023 Tuesday, July 18, 2023 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 2023 • Business update • Brand strategy • 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 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 origin of Alligo
The origin 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 Stockho
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: Alligo at a glance
Alligo at a glance • Nordic main markets – revenue of approx. SEK 53 billion per year • Customers – a combination of small and Manufacturing Construction Industry Public Sector Transport & Storage medium-sized enterprises, large industrial companies, and the public sector – within eight defined segm
Slide 8: Agenda
AGENDA • This is Alligo • Highlights Q2 2023 • Business update • Brand strategy • Financials • Summary and outlook • Q&A
Slide 9: Q2 in brief
Q2 in brief – strong quarter and first six months • Revenue + 5.0 per cent to MSEK 2,388 (2,275) +5% • Adjusted EBITA increased by 17 per cent to MSEK 201 (172) Revenue growth • Improved operating cash flow MSEK 287 (211) ̶ still high inventory levels • Updated organisation to strengthen sales regar
Slide 10: Agenda
AGENDA • This is Alligo • Highlights Q2 2023 • Business update • Brand strategy • Financials • Summary and outlook • Q&A
Slide 11: Q2 business conditions
Q2 business conditions Market Proactive Delivery Macro-economic situation management capacity factors • Strong demand • Growth initiatives • Good and stable • Continued in Norway and • Price adjustments uncertainty Finland – tendency • Geopolitical • Sensitive categories to slowdown turbulence • Rev
Slide 12: Alligo Group – updated organisation as of August 1st
Alligo Group – updated organisation as of August 1st CEO Clein Ullenvik PROFILE COMPANIES COMMUNICATION SALES SWEDEN SALES NORWAY SALES FINLAND INDUSTRY CUSTOMER SEGMENT ASSORTMENT AND PROCUREMENT Torbjörn Eriksson Håkan Wanselius Jens Henriksen Seppo Ronkainen Håkan Wanselius LOGISTICS Pontus Glasb
Slide 13: Agenda
AGENDA • This is Alligo • Highlights Q2 2023 • Business update • Brand strategy • Financials • Summary and outlook • Q&A
Slide 14: Own brands provides better control
Own brands provides better control OWN BRANDS Supply chain – SHARE OF SALES AND BREAKDOWN BY PRODUCT CATEGORY JAN–JUN 2023 23% Tools & 18% Own Of which consum- brands ables Quality of products 82% External brands 77% Workwear & personal protective Higher margins equipment 14
Slide 15: Alligo's product brands
Alligo’s product brands WORKWEAR & PPE TOOLS & SUPPLIES Iconic workwear since 1905 Workwear for Nordic Workwear and footwear with Tools and storage with Complete lighting range for weather conditions a focus on function smart solutions the professional user Protective gloves for all Base and corpora
Slide 16: Inhouse product development
Inhouse product development – from idea to finished garment • In Almedal near Gothenburg, we develop the products for our own brands Björnkläder, Univern, Gesto and 1832. • The product development department ensures that Alligo has: ̶ an innovative, sustainable, and certified range that meets legal
Slide 17: Our Own Brands
OUR OWN BRANDS 17
Slide 18: Björnkläder
Björnkläder – Iconic workwear since 1905 • Björnkläder is Sweden’s oldest workwear brand – quality in every detail. • Durability, function and comfort are the design team’s key words when drawing, designing and developing the garments. • All to cope with tough working environments. 18
Slide 19: Univern
Univern – For tough outdoor environments • Established in 1977, Univern is our premium brand with a wide range of products. • The real expertise is in garments for extreme outdoor environments. • Univern’s clothing protects against wind, water and cold. • The clothes are popular among our customers
Slide 20: Gesto
Gesto – Function with attitude • Quality workwear and safety footwear at an attractive price without compromising on function. • The newest workwear brand in the Alligo family, launched in 2013. • Aims to be the market leader in function, innovation and design – and is one of the fastest growing bra
Slide 21: Agenda
AGENDA • This is Alligo • Highlights Q2 2023 • Business update • Brand strategy • Financials • Summary and outlook • Q&A
Slide 22: Group in summary – strong quarter and first six months
Group in summary – strong quarter and first six months Revenues and EBITA Highlights Q2 • Revenue increased by 5.0 per cent 2023 2022 2023 2022 Apr-Jun ∆, % Apr-Jun Jan-Jun ∆, % Jan-Jun ̶ Organic growth of 2.7 per cent MSEK ̶ Acquisition-driven growth of 4.0 per cent Revenue 2,388 5.0 2,275 4,675 7.
Slide 23: Three acquisitions signed 2023
Three acquisitions signed 2023 – adding 148 MSEK in annual revenue, as well as 37 employees and 6 stores Date Annual Acquisition Product category signing revenue (MSEK)* Employees Stores Kitakone Oy TOOLS/Industrial Components/Consumables April 2023 33 8 1 Topline AB Workwear/Profile Clothing/Produc
Slide 24: Profitable growth in Sweden and Norway – weaker in Finland
Profitable growth in Sweden and Norway – weaker in Finland Sweden Norway Finland MSEK % MSEK % MSEK % 1750 18 700 6 500 6 1500 15 600 5 400 5 1250 500 4 4 12 300 1000 400 3 9 3 750 300 200 2 2 500 6 200 100 1 3 100 1 250 0 0 0 0 0 0 Q2 2021 Q2 2022 Q2 2023 Q2 2021 Q2 2022 Q2 2023 Q2 2021 Q2 2022 Q2
Slide 25: Improved operating cash flow – inventory levels remain too high
Improved operating cash flow – inventory levels remain too high Q2 Operating activities Q1-Q2 Operating, investing and financing activities • Operating cash flow amounted to 287 MSEK (211) • Investing activities ̶ Positive effects from change in working capital ̶ E-commerce investments, store adapti
Slide 26: Strong financial position
Strong financial position Overview of the financial position Highlights • Ratio of net operational liabilities to EBITDA MSEK 30 Jun 2023 31 Dec 2022 (excl. IFRS 16) of 1.8 Non-current interest bearing liabilities 2,571 2,410 • Cash and unutilized granted credit facilities Current interest bearing l
Slide 27: Agenda
AGENDA • This is Alligo • Highlights Q2 2023 • Business update • Brand strategy • Financials • Summary and outlook • Q&A
Slide 28: Q2 in summary
Q2 in summary • Strong quarter and first six months of the year ̶ Profitable growth ̶ Improved operating cash flow • Uncertain macroeconomic environment ̶ Slowdown in Sweden ̶ Tendency toward slowdowns in Norway and Finland • Strengthened competitiveness ̶ Supplier negotiations ̶ Cost reductions • T
Slide 29: 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 autumn season ̶ Capital reduction • Increase the share of small and medium
Slide 30: Alligo
ALLIGO 30
Slide 31: Appendix
APPENDIX 31
Slide 32: Revenue bridge second quarter 2023
Revenue bridge second quarter 2023 Revenue year-on-year Q2 +5,0% 4.0% 2 388 2.7% 0% 2 275 -1.7% Revenue Comparable Currency Number of Other Revenue Q2 2022 stores in local effects working days units Q2 2023 currency 32
Slide 33: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2023 2022 2023 2022 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun IFRS 16 effects on cash flow from operations 66 101 148 196 IFRS 16 effects on cash flow from financing activities -66 -101 -148 -196 33
Slide 34: 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 35: Solid performance in 2022 in relation to financial targets
Solid performance in 2022 in relation to financial targets TARGET OUTCOME TARGET OUTCOME GROWTH INDEBTEDNESS >5% 5 4,3% 6,1% <3X 3 3 Organic growth 05 5 6,1% 6,1% Ratio of net operational 1,8 Mul. 1,8 Mul. 1,7 Mul. 1,8 Mul. 5 4,3% 6,1% 1,7 Mul. 1,7 Mul. Average organic growth shall be more -5,7% 4,3
Slide 36: Performance 2022 in relation to sustainability targets
Performance 2022 in relation to sustainability targets TARGET OUTCOME TARGET OUTCOME RESPONSIBLE SUPPLIER RELATIONSHIPS HEALTH 100% Signing of Code of Conduct 100 74% 1 78%1 79% <5% Sickness absence 30 5 6,8% 20,3% 7,1% 22,3%5 6,8% 21,7% 5,5% 7,1% 5,4% 5% All key suppliers must have signed Sickness
Slide 37: 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 • Climate impact • Diversity and equality • Environmental impact and chemicals • Work environment and health • Transparent sustainability communication and