Momentum Group Ab Class B · OMXSTO:MMGR_B
Momentum Group Ab Class B — Q2 2022 Earnings Presentation
27 slides from Momentum Group Ab Class B's earnings presentation, Jul 14, 2022
Slide 1: Interim Report Q2 2022
Interim Report Q2 2022 14 July 2022
Slide 2: Presenting today
Presenting today Ulf Lilius, CEO Niklas Enmark, CFO Momentum Group 14/07/2022 2
Slide 3: Agenda
Agenda • Q2 highlights • Development during the quarter • Financial targets • Focus in the short to medium term • Aquisitions Momentum Group 14/07/2022 3
Slide 4: Q2 2022 highlights
Q2 2022 highlights Business situation remains stable and positive earnings trend Revenue: EBITA: EBITA/WC: +13% +23% 62% • Favourable underlying demand in • Organic sales growth Acquisitions: both business areas—despite • Well-managed price turbulent environment increases from suppliers • Global sho
Slide 5: Development during the quarter Q2 2022
Development during the quarter Q2 2022
Slide 6: Group: Sales Q2 2022
Group: Sales Q2 2022 Growth in comparable units vs Q2 2021 • • Revenue increased by 13% to SEK 446 m (396) Favorable underlying demand in both business areas— +8% growth in comparable units of 8% • Global component shortage stabilizing but still Revenue, SEK million contributing to long lead times 5
Slide 7: Group: Earnings Q2 2022
Group: Earnings Q2 2022 EBITA vs Q2 2021 • Earnings growth due to: – Organic sales growth +23% – Cost control – Well-managed price increases from suppliers EBITA and operating profit, SEK m – Acquisitions • Operating profit SEK 49 m (42) including expenses affecting 60 200 comparability of SEK –2 m
Slide 8: Group: 1 Jan-30 Jun 2022
Group: 1 Jan-30 Jun 2022 Growth in comparable units vs 1 Jan–30 Jun 2021 • Revenue increased by 13% to SEK 845 m (746) and for comparable units an increase of 9% +9% • Operating profit SEK 86 m (77) including expenses EBITA growth affecting comparability of SEK –6 m (–) related to the vs 1 Jan–30 Ju
Slide 9: Components business area
Components business area Revenue growth in comparable units vs Q2 2021 Momentum Industrial • Strong demand and sales development especially +7% within pulp & paper and steel • Continued delays and material shortages leading to Revenue R12 long lead times • Extra stock purchases to meet demand Sale o
Slide 10: Services business area
Services business area Revenue growth in comparable units vs Q2 2021 • Positive development in both sales and earnings +14% • Strong contribution from Rörick and the two Mekano companies Revenue R12 • Good capacity utilisation in the workshops and several new customer contracts during the quarter •
Slide 11: Profitability, cash flow and financial position
Profitability, cash flow and Equity/assets ratio financial position • EBITA/WC increased to 62% (58) 44% • Cash flow from operating activities for the reporting Available cash and cash equivalents, period SEK 46 m (90) SEK m 984 – Inventory increase of SEK 33 m, due to extra stock purchases – Paid t
Slide 12: Financial targets
Financial targets Earnings growth Profitability Dividend policy Aims to achieve earnings Aims to achieve a At least 30% of earnings growth (EBITA) of at least profitability of P/WC of at per share annually over a 15% annually over a least 45%, measured as business cycle business cycle EBITA (P) in r
Slide 13: Financial targets performance
Financial targets performance EBITA growth Profitability WC turnover (R12) 50% 10 8 30% 6 12/2021: 61% 06/2022: 62% 03/2019: 46% 4 12/2020: 54% 10% 03/2020: 52% 45% 2 19/06 19/09 19/12 20/03 20/06 20/09 20/12 21/03 21/06 21/09 21/12 22/03 22/06 -10% 0 EBITA margin 2% 4% 6% 8% 10% 12% 14% 16% (R12) E
Slide 14: Focus in the short to medium term
Focus in the short to medium term
Slide 15: Momentum's core values and focus areas
Momentum's core values and focus areas “Heart and soul” “Mind and soul" Business development through Decentralised responsibility decentralised responsibility and employee development Willingness to improve Business development through active ("Better than yesterday") ownership Growth through acquis
Slide 16: Acquisitions
Growth strategy Acquisitions
Slide 17: Acquisitions during and after the period
Acquisitions during and after the period Acquisition of HNC Group Acquisition of Mytolerans • Acquisition of 70% of the shares in HNC Group A/S with • Acquisition of 70% of the shares in Mytolerans AB, its subsidiaries HNC Technik GmbH in Germany and announced after the reporting period Saniflow ApS
Slide 18: Our desired position
Our desired position Components business area Services business area Aftermarket sales Specialist (product verticals) Technical service Focus/ambition Focus/ambition Focus/ambition Company in the sale of industrial Companies with leading specialist positions Technical industrial services company in
Slide 19: Growth through acquisition of sustainable companies
Growth through acquisition of sustainable companies The strategy is to acquire and develop businesses focused on trade and services in selected product and service verticals – in both existing product and service areas and in new business areas. Well-developed Leaders in their customer and/or
Slide 20: Ability to identify and attract...
Ability to identify and attract... Dismissed or on hold Gross list Qualified list Acquisition dialogue Acquisition process Companies that meet the basic Companies from the gross list A "one-pager" is prepared, which criteria: with activities: contains: • Strategic fit • Activities may include contac
Slide 21: ...welcome and developing successful companies
...welcome and developing successful companies Clear strategic plan and “Onboarding” Active board work Development common agenda Prior to taking up a position, Short and medium term activity Activities and business planning Continued development through ensure there is a: list: are conducted on an o
Slide 22: Scope and resources for acquisitions
Scope and resources for acquisitions Financing Acquisition process • Strong cash flow from operations • Internal resources are used to a large extent • Strong financial position as a starting point to evaluate, implement and welcome new • Possibility of acquisition financing through companies to the
Slide 23: Bottom line: We are not that complicated
Bottom line: We are not that complicated We build We acquire We develop culture If people grow, the business will grow! Momentum Group 14/07/2022 23
Slide 24: Q&A
Q&A
Slide 25: Contact us
Contact us Please email us at ir@momentum.group if you have any questions. Momentum Group momentum.group
Slide 26: Appendix
Appendix
Slide 27: IFRS effects on cash flow
IFRS effects on cash flow Reporting period Full year MSEK 30 Jun 2022 30 June 2021 31 Dec 2021 31 Dec 2020 (9 m) IFRS effects on cash flow from operations 25 17 41 23 IFRS effects on cash flow from financing activities -25 -17 -41 -23 Net 0 0 0 0 Momentum Group 14/07/2022 27