Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q3 2022 Earnings Presentation
34 slides from Relais Group Oyj's earnings presentation, Nov 10, 2022
Slide 1: Q3/2022 Interim Management Report
Relais Group Plc Q3/2022 Interim Management Report 10 November 2022
Slide 2: Presenting today
Presenting today: Arni Ekholm Pekka Raatikainen CEO CFO 2
Slide 3: Content
Content • Relais in brief • Business review Q3/2022 • IFRS transition in brief • Financial review 1-9/2022 • Acquisition strategy • Relais as an investment
Slide 4: Relais in brief
RELAIS Relais in brief
Slide 5: Leading Nordic consolidator and smart compounder in vehicle aftermarket
Relais Group Plc is a leading Nordic consolidator and smart compounder with a sector focus on vehicle aftermarket We serve as a growth platform for the companies we own Net sales 1-9/2022 (1-9/2021) MEUR 185.5 (164.3) +12.9% Comparable EBITDA 1-9/2022 (1-9/2021) MEUR 27.6 (26.9) +2.7% Comparable EBI
Slide 6: Relais Group Growth Strategy
Relais Group Growth Strategy Growth by acquisitions Active consolidation of the Nordic vehicle aftermarket Organic growth Target: Operational Faster than the 500 MEUR* excellence market average turnover by growth supported by Continuous development end of 2026 of operations synergies *pro forma
Slide 7: Relais Group value creation model
Relais Group value creation model Smart compounding Sector focus Competence compounding Add-on acquisitions Accelerating organic growth Build great businesses Further development of the acquired companies’ operations and capabilities Full utilization of the synergies Invest right Increase focus on e
Slide 8: Strong growth supported by acquisitions
Strong growth supported by acquisitions Acquisition of: SEC Scandinavia A/S TD Tunga Delar Sverige AB ABR move to Acquisition of: new premises Strands Group AB Acquisition of AWIMEX Raskone Oy Acquisition of: Lumise Oy Maskin-Teknisk AS Startax Latvia and Acquisition of: 238 STS Sydhamnens JA Tools
Slide 9: Relais Group companies
Relais Group companies 1,000 professionals in 6 countries Wholesale of spare parts and equipment Commercial vehicle repair and maintenance
Slide 10: Sales by business area, 1-9/2022
Sales by business area, 1-9/2022 -0% 123.7 123.6 Net sales, EURM +53% 61.9 40.6 1-9/2021 1-9/2022 1-9/2021 1-9/2022 % of group 75 67 25 33 Wholesale Repair and Maintenance
Slide 11: Sales by product group, 1-9/2022
Sales by product group, 1-9/2022 -1% 59.4 59.0 +53% 61.9 +2% Net sales, EURM 39.3 40.1 40.6 -1% 23.9 23.6 1-9/2021 1-9/2022 1-9/2021 1-9/2022 1-9/2021 1-9/2022 1-9/2021 1-9/2022 % of group 36 32 24 22 15 13 25 33 Spare parts Lighting Equipment Repair and Maintenance
Slide 12: Business review Q3 2022: A stable quarter
Business review Q3 2022: A stable quarter
Slide 13: Efficiency development actions
Efficiency development actions Operational efficiency actions ▪ We have initiated several actions aiming at increasing the operational efficiency of the Group ▪ Program within the Finnish wholesale operations targeting at lowering the level of net working capital and increasing the efficiency of the
Slide 14: Q3 – A stable quarter
Q3 – A stable quarter +10.3% +10.3% +12% 64.8 Group sales growth Group sales growth 58.7 with comparable exchange rates 12.3%1 6.2 EURM Comparable EBITA-% Net cash flow from ops Profitability improved from …and so did cash flow the first two quarters of the year… Q3/21 Q3/22 Notes: 1) Reported EBITA
Slide 15: Q3 – Business area comments: Wholesale
Q3 – Business area comments -1% 18.6 18.5 +0% 44.3 43.7 Wholesale Net sales, EURM ▪ Managed to reach last year’s level at comparable exchange rates ▪ Scandinavian wholesale +8%, supported by positive local market and acquisition of Trucknik ▪ Finland & Baltic declined 8% due to negative local market
Slide 16: Q3 – Business area comments: Repair and Maintenance
Q3 – Business area comments 18.5 +0% 18.6 +53% 21.1 Repair and Maintenance Net sales, EURM 14.5 ▪ Strong growth driven by acquisitions in Sweden ▪ Acquisitions have made Relais the biggest independent R&M operator for commercial vehicles in the Nordics ▪ Positive effect of operational efficiency mea
Slide 17: Q3 – Product group comments: Spare parts
Q3 – Product group comments 18.5 +0% 18.6 18.5 18.6 Spare parts Net sales, EURM ▪ Spare parts sales was on a stable level and in line with last year ▪ Gross margins were on the same level as last year, due to successfully implemented price increases Q3/21 Q3/22 % of group 32 29
Slide 18: Q3 – Product group comments: Lighting
Q3 – Product group comments -3% 18.6 18.5 +0% 17.5 17.0 Lighting Net sales, EURM ▪ Lighting sales reached last year’s level, driven by new product launches and strong performance of Strands’ export markets ▪ Season started somewhat later than earlier years due to market uncertainty ▪ Uncertain deman
Slide 19: Outlook
Outlook Outlook ▪ When assessing our business outlook for the remainder of this year various external factors emerge, all of which are outside our circle of influence ▪ The consequences of Russia’s war on Ukraine cause great uncertainty in the demand situation of the markets ▪ The steep increase of
Slide 20: We are well positioned
We are well positioned ▪ Looking at the factors within our circle of ▪ We believe that a possible economic recession influence, we are well positioned to develop our may even increase the demand for reasonably business favourably also during the last quarter priced spare parts and repair and mainten
Slide 21: IFRS transition in brief
RELAIS IFRS transition in brief
Slide 22: Main impact of IFRS transition on selected P&L figures
Main impact of IFRS transition on selected P&L figures FY 2021 EUR, millions 36.0 31.0 29.3 25.7 23.0 16.4 14.4 7.7 FAS IFRS FAS IFRS FAS IFRS FAS IFRS EBITDA EBITA EBIT Profit for the period
Slide 23: Main impact of IFRS transition on balance sheet
Main impact of IFRS transition on balance sheet 31 December 2021 EUR, millions 308 308 15 235 102 235 2 114 0 0 Other intangible assets 89 Equity 110 5 55 Goodwill Minority interest 54 0 0 Tangible assets Provisions 4 1 Right-of-use assets 96 99 Total lease liabilities Other non-current assets Other
Slide 24: Financial review 1-9/2022
RELAIS Financial review 1-9/2022
Slide 25: Financial result 1-9/2022
Financial result 1-9/2022 ▪ The increasing proportion 17.7 19.6 17.9 12.0% 16.8 10.8% of commercial vehicle 9.1% 9.7% repair and maintenance business led to a shift in the cost structure. ▪ Comparable APMs: Transaction costs and 1-9/2021 1-9/2022 1-9/2021 1-9/2022 certain additional purchase EBITA E
Slide 26: Financial result 1-9/2022, continued
Financial result 1-9/2022, continued 11.1 ▪ In addition to the 6.8% development of the 9.2 5.6% 7.5 business, the decrease in 6.3 4.0% profit for the review period 3.4% was caused by increased financial expenses from acquisition loans and leasing liabilities related to 1-9/2021 1-9/2022 1-9/2021 1-9
Slide 27: Balance sheet and financial position
Balance sheet and financial position The Group's balance- Net debt excl. lease The Group’s The Group’s equity equity sheet total liabilities EUR 318.9 (295.9) 71.9 (63.7) EUR101.4 EUR (99.6) EUR 98.4 (81.1) million million million million Net gearing excl. lease Equity ratio Cash assets liabilities
Slide 28: Cash flow development
Cash flow development Cash flow from operations Cash flow from investments Cash flow from financing EUR 11.6 (4.0) EUR -10.8 (-44.5) EUR 0.1 (25.9) million million million ▪ During Q1 and Q2 cash flow was ▪ Includes additional consideration for ▪ The amount of new acquisition loans significantly bur
Slide 29: Acquisition strategy
RELAIS Acquisition strategy
Slide 30: A disciplined acquisition process
A disciplined acquisition process
Slide 31: Acquisition strategy
Acquisition strategy ▪ We have deliberately been very disciplined when considering potential deals due to the general market situation ▪ We believe the valuations to come down to more moderate levels ▪ We have a healthy pipeline with several discussions ongoing ▪ We will continue the processing of t
Slide 32: Summary: Relais as an investment
Summary: Relais as an investment
Slide 33: Relais as an investment
Relais as an investment Active, sector focused consolidator with a strong track record of successful acquisitions Solid cash flow and profitability track record A growing underlying market with defensive characteristics Growing lighting business with own brands Growth potential with own e- commerce
Slide 34: Q&A
Q&A