Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q2 2024 Earnings Presentation
35 slides from Relais Group Oyj's earnings presentation, Aug 15, 2024
Slide 1: Continued Strong Performance
CONTINUED STRONG PERFORMANCE Relais Group Plc Half-Year Financial Report January–June 2024 15 August 2024
Slide 2: Presenting Today
PRESENTING TODAY Arni Ekholm Thomas Ekström CEO CFO 2
Slide 3: Content
CONTENT • Relais as an Investment • Business Review • Acquisitions • Outlook 2024 • Financial Review 3
Slide 4: Relais as an Investment
RELAIS AS AN INVESTMENT
Slide 5: Relais as an Investment
RELAIS AS AN INVESTMENT Sector specialist, competent compounder Profitable and unique growth platform in Northern Europe Successful acquisition track record Strong profitability and cash flow Growing, defensive underlying market Own vehicle lighting brands with growth potential Lean and effective op
Slide 6: Relais Group Companies
RELAIS GROUP COMPANIES Over thousand Technical wholesale and products (67%) professionals in 6 countries Spare parts 31% Lighting and equipment 36% Commercial vehicle repair and maintenance (33%) 6 Status per 30 June 2024
Slide 7: Strong and Profitable Growth
STRONG AND PROFITABLE Acquisition of: Adita GROWTH Acquisition of: AutoMateriell Strands Group Nordic Lift Acquisition of: Raskone JTC Asennustyö M. Lumise STS Sydhamnens Trailer Ahlqvist Acquisition of: Team Verkstad Service Skeppsbrons Acquisition of: Sverige* Trucknik Ecofoss SEC Scandinavia TD T
Slide 8: Business Review Q2 and H1/2024
BUSINESS REVIEW Q2 and H1/2024
Slide 9: Q2: Sixth consecutive quarter with a double-digit EBITA growth
Q2: Sixth consecutive quarter with a double-digit EBITA growth
Slide 10: Q2/2024 H1/2024 12 MR key figures
Net sales Comparable EBITA Earnings per share, MEUR MEUR basic (EUR) Q2/2024 74.3 +16% vs. Q2/2023 7.3 0.18 +52%vs. +52% vs. Q2/2023 Q2/2023 (0.01 in Q2/2023) H1/2024 157.0 17.0 0.39 +18% vs. H1/2023 +37%vs. +37% vs. H1/2023 H1/2023 (0.17 in H1/2023) ROCE 12 MR 308 +8% vs. FY 2023 33.4 +16% vs. FY 2
Slide 11: Q2: Strong Performance on All Fronts
Q2: STRONG PERFORMANCE ON ALL FRONTS • The net sales of the Group grew with 16% supported by the good market demand, acquisitions and our successful commercial activities. The organic growth was 8%. • The gross profit percentage of the Group grew from 45.7 to 47.7 supported by sales price increases,
Slide 12: Q2: Technical Wholesale and Products
Q2: TECHNICAL WHOLESALE AND PRODUCTS • The sales grew with 18%. The organic growth was 9%. • The sales growth comes predominantly from the Scandinavian markets, partly supported by the earlier acquisitions in Norway and the positive market demand in Sweden. The market in Finland was stable after the
Slide 13: Q2: Repair and Maintenance
Q2: REPAIR AND MAINTENANCE • The sales of the Group’s Commercial Vehicle Repair and Maintenance-business area developed also positively during Q2. • The sales growth was 12%. Organic growth was 6%. • The demand for our services has continued to grow as especially bigger fleet customers are looking f
Slide 14: Sales by Segment Q2 and 1HY
SALES BY SEGMENT Q2 AND 1HY 4-6/2023 4-6/2024 1-6/2023 1-6/2024 44% 46% 44% 47% % of net sales 53% 54% 56% 56% MEUR 33.9 41.6 +23% MEUR 71.9 88.1 +23% 30.2 32.6 +8% 61.1 68.9 +13% Scandinavia Finland & Baltics 14 Note: Totals of product groups may not add up due to minor other sales
Slide 15: Sales by Business Area Q2 and 1HY
SALES BY BUSINESS AREA Q2 AND 1HY 4-6/2023 4-6/2024 1-6/2023 1-6/2024 36% 34% 36% 33% % of net sales 64% 66% 64% 67% EURm 41.3 48.7 +18% EURm 85.6 105.5 +23% 22.8 25.6 +12% 47.4 51.5 +8% Technical wholesale Repair and maintenance and products 15 Note: Totals of product groups may not add up due to m
Slide 16: Sales by Product Group Q2 and 1HY
SALES BY PRODUCT GROUP Q2 AND 1HY 4-6/2023 4-6/2024 1-6/2023 1-6/2024 33% 32% 30% 33% 31% 36% 35% 36% % of net sales 16% 15% 19% 19% 17% 15% 18% 14% 22.8 25.6 47.4 51.5 EURm EURm 9.8 13.1 19.2 30.3 9.9 11.2 Repair and maintenance 24.7 26.0 Equipment 20.9 23.6 40.2 48.0 Lighting Spare parts 16 Note:
Slide 17: Sustainability
SUSTAINABILITY We continued to prepare for the Sustainability Reporting Directive (CSRD). During H1, we finalized our materiality assessment based on the principle of double materiality from financial risks and opportunities perspective. The evaluation was started during 2023. In April, Relais Group
Slide 18: Acquisitions
ACQUISITIONS
Slide 19: Acquisitions
ACQUISITIONS • We continued to actively scan the market for good acquisition opportunities. • Continuously a number of discussions and dialogues ongoing with different parties. • There are several interesting targets having a good strategic fit with us within the Nordic marketplace. • We have made t
Slide 20: Acquisition Q2/2024: M Ahlqvist
ACQUISITION Q2/2024: M AHLQVIST • Family company with a 30-year history of providing maintenance and repair services for heavy commercial vehicles and trailers in Southwest Finland. Net sales EBIT • Workshops (3) are located in Southwestern Finland. MEUR 8.7 (FY22/23) MEUR 0.6 (FY22/23) • Another ad
Slide 21: Acquisition after Q2: Team Verkstad Sverige AB
ACQUISITION AFTER Q2: TEAM VERKSTAD SVERIGE AB • On 5 July 2024 we agreed to acquire Team Verkstad Sverige AB from Vy Buss AB in Sweden*. Team Verkstad provides repair and maintenance services for Net sales EBIT buses and other heavy commercial vehicles. • Through the acquisition, our group company
Slide 22: Outlook 2024
OUTLOOK 2024
Slide 23: Outlook 2024
OUTLOOK 2024 • The outlook for the rest of the year looks stable, provided that the current good market demand of stays on the present level. • There are nevertheless uncertainties coming mainly from the poor consumer purchase power of consumers, especially in the Finnish marketplace. • The second h
Slide 24: Long Term Financial Target
LONG TERM FINANCIAL TARGET Relais Group aims to reach a pro forma* comparable EBITA of 50 by the end of 2025 MEUR * Including latest 12 months (="run rate") comparable EBITA of acquired businesses
Slide 25: Financial Review
FINANCIAL REVIEW
Slide 26: Net Sales and EBITA
NET SALES AND EBITA Continued strong performance; Q2 net sales +16%, EBITA +52% Net sales EBITA +52% MEUR +16% MEUR 100 10 9.7 80.9 82.8 8.4 8.0 8.0 7.8 80 73.5 75.2 74.3 8 7.7 7.5 69.0 70.3 7.3 62.1 64.8 64.1 58.7 58.6 6.2 60 53.5 6 5.7 5.7 52.1 4.8 4.1 40 4 3.4 20 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 27: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN Significant improvement in both gross profit and gross margin MEUR MEUR 40 80 73.6 35.4 + Strong organic net sales 35 70 61.4 growth in both businesses 29.3 30 60 54.7 boost gross profit 26.6 47.7% 25 50 45.3% 46.9% + Acquisitions 21.6 42.1 46.1% 20 45.4% 40 + Price inc
Slide 28: Operating Expenses
OPERATING EXPENSES Increase mostly driven by acquisitions Stable opex % MEUR MEUR 30 60 25.4 50.7 25 50 20.8 21.4 43.0 40.7 20 40 16.2 34.2% 30.0 33.7% 15 30 35.5% 33.4% 31.1% 32.3% 32.3% 10 20 28.4% 5 10 0 0 Q2 21 Q2 22 Q2 23 Q2 24 H1 21 H1 22 H1 23 H1 24 Opex Opex% 28
Slide 29: Net Working Capital
NET WORKING CAPITAL Inventory and NWC turnover stable Acquisitions, inventory investments and inflation increase NWC euro value MEUR 6/2024 6/2023 12/2023 +11% MEUR Inventories 79.2 68.6 74.1 69.7 68.8 70 67.1 67.8 67.1 65.0 Trade and other receivables 44.9 35.9 45.4 62.7 62.6 62.2 59.4 58.4 60 56
Slide 30: Cash Flow from Operating Activities
CASH FLOW FROM OPERATING ACTIVITIES Significant Q2 improvement driven by improved profitability and reduced NWC MEUR 18 17.2 MEUR 4-6/2024 4-6/2023 1-6/2024 1-6/2023 2023 16 CF before change in 11.3 8.8 25.2 20.2 44.4 NWC 14 Change in NWC 2.9 1.2 –3.0 3.3 –2.4 12 11.0 +42% CF from net financials –4.
Slide 31: Cash Flow Summary 1-6/2024
CASH FLOW SUMMARY 1-6/2024 Cash flow from Cash flow from Cash flow from operations investing activities financing activities EUR 14.1 (17.6) EUR -2.9 (-4.0) EUR -11.5 (-13.3) million million million + Improved profitability • Raskone’s acquisition of shares in ± Normal repayments of lease − Developm
Slide 32: Interest-Bearing Net Debt
INTEREST-BEARING NET DEBT Normal biannual loan amortisations 3 M€ draw-down from uncommitted facility Reduced leverage Relais Group (IFRS) MEUR 6/2024 6/2023 12/2023 MEUR -0.8% Loans from financial institutions, l-t 87.6 90.3 88.8 156 157 151 Loans from financial institutions, s-t 7.0 6.9 7.1 16
Slide 33: Net Financials
NET FINANCIALS Increase in net interest expenses FX net gains in Q2 and net FX losses in H1 (EUR 1,000) 4-6/2024 4-6/2023 1-6/2024 1-6/2023 1-12/2023 • Net interest expenses Financial income increased due to the increase in reference interest rates on interest- Foreign exchange gains/losses -590 2
Slide 34: Balance Sheet and Financial Position 30 June 2024
BALANCE SHEET AND FINANCIAL POSITION 30 JUNE 2024 Total assets Total equity Interest-bearing net debt EUR 331.1 million (311.3) EUR 107.9 million (96.2) EUR 146.7 million (148.0) Net gearing Equity ratio Cash assets 135.9 (153.9) 34.5 (32.9) EUR 9.4 (13.5) % % million 34
Slide 35: Relais
RELAIS