Boreo Oyj · OMXHEX:BOREO

Boreo Oyj — Q1 2022 Earnings Presentation

20 slides from Boreo Oyj's earnings presentation, May 5, 2022

  1. Slide 1: Q1 2022 interim report

    Q1 2022 interim report Webcast | May 5, 2022

  2. Slide 2: Agenda

    AGENDA • Q1 2022 highlights • Q1 2022 financials • Q&A

  3. Slide 3: Highlights of Q1 2022

    Highlights of Q1 2022 Net sales grew by 30% and Discplined execution of strategy operational ebit 22% Continued successful execution of the acquisition program 38m€ net sales (29m€ Q121) Continuous development of operating model 2.0m€ operational EBIT (1.6m€ Q121) and Improved financial position Ukr

  4. Slide 4: Steady financial performance & improved financial position

    Steady financial performance & improved financial position Strong growth in net sales and operational EBIT continued Net sales, (m€) Operational ebit, (m€,%)* Leverage 7,7% 7,8% 5,9% 6,6% 5,6% 7,1% 6,0% 5,2% 3,6% 2,6 X 2,5 X 2,6 x 46,6 2,7 2,8 1,6 x 2,5 36,0 35,0 37,8 2,1 1,8 2,0 37,9 29,0 35,9 25,0

  5. Slide 5: Growth in all business areas

    Growth in all business areas net sales grew in all business areas Q1 2022 vs q1 2021 Electronics, (m€,%) Technical trade, (m€,%) HEAvy machines, (m€,%) 25 8,8 % 9,3 % 10,0 % 15 12,4 % 14,0 % 14,7 % 16,0 % 8,1 % 8,0 % 10,1 % 12,0 % 14,0 % 7,4 %7,1 % 10 20 8,0 % 8,5 % 11,4 6,5 % 7,8 % 7,1 %10,0 % 12,0

  6. Slide 6: Diverse impacts on businesses due to decentralized model

    Diverse impacts on businesses due to decentralized model Operating environment shadowed by the impacts of Ukrainian crisis Measures initiated to exit the component distribution business in Russia, inc. divestiture process I. Direct impact on our Russian component distribution business Improved deman

  7. Slide 7: Successful execution of acquisitions continues

    Successful execution of acquisitions continues Signed May 2, 2022 Pronius Infradex Vesterbacka transport Signal solutions Add-on to Technical Trade BA Add-on to Electronics BA Add-on to ESKP Add-on to Electronics BA Distributor of welding Distributor of thermal imaging Specializes logistics provider

  8. Slide 8: Continuous improvement of the business model

    Continuous improvement of the business model significant steps taken in developing our compounder business model Operating model M&A Boreo 2.0. Three acquisitions Decentralization & entrepreneurship Developing M&A capabilities 2.0 Operational excellence People & Culture Strategy concept pilots boreo

  9. Slide 9: Agenda

    AGENDA • Q1 2022 highlights • Q1 2022 financials • Q&A

  10. Slide 10: Q1 2022 | key figures

    Q1 2022 | key figures Strong growth in net sales and operational ebit continued EUR million Q1 2022 Q1 2021 Change 2021 Net sales 37.8 29.0 30% 146.5 Operational EBIT* 2.0 1.6 22% 9.6 relative to net sales, % 5.2% 5.6% - 6.6% EBIT 1.4 2.2 -37% 8.1 Profit before taxes 1.3 2.0 -33% 6.8 Profit for the

  11. Slide 11: Q1 2022 | growth of net sales

    Q1 2022 | growth of net sales Strong organic growth as well as growth via acquisitions Growth of net sales q1 22 vs. Q1 20, (m€) 30% growth Q1/22 vs. Q1/21 11

  12. Slide 12: Electronics

    Electronics Good start for the year, Net sales continued in growth path, profitability in par with last year Allocation situation continues, measures and evaluation to exit the russian operations ongoing Comments – q1 2022 Net sales and operational ebit % Q1 22 vs. Q1 22, (m€,%) • Finnish operations

  13. Slide 13: Technical trade

    Technical trade Net sales grew and profitability improved clearly from Q1/21 Geopolitical uncertainty started to impact investment decisions Comments – q1 2022 Net sales and operational ebit Q1 22 vs. Q1 21, (m€,%) • Organic growth continued vs. previous year driven by 12,4 % Machinery’s power busin

  14. Slide 14: Heavy machines

    Heavy machines Strong growth continued – profitability still below targets High level of orderbooks in putzmeister business Comments – q1 2022 Net sales and operational ebit Q1 22 vs. Q1 21, (m€,%) • Net sales grew strongly, supported by organic and inorganic growth • Profitability was negatively im

  15. Slide 15: Other operations

    Other operations Good performance in eskp despite of inflation Comments – q1 2022 Net sales Q1 21 – Q1 22, (m€) • In spite of increasing costs (e.g. fuel) ESKP’s performance continued to be strong 1,2 • Net sales of 1.1m€ and operational EBIT 12% 1,0 1,1 1,0 • Despite the cost pressures, profitabili

  16. Slide 16: Q1 2022 | net debt and equity ratio

    Q1 2022| net debt and equity ratio Net debt / operational ebitda at 1,6x – below the strategic target range Improved equity ration due to Financing arrangements in Q1 Net debt, (m€) & net debt/operational ebitda, (x) Equity ratio, (%) Strategic target 2-3x 2.6X 2.5x 2.6x 1.6x 35,9% 35,9 37,9 32,8 26

  17. Slide 17: Q1 2022 | cash flow and EPS

    Q1 2022| cash flow and eps Eps grew, solid cash FLOW generation as net working capital intact Earnings per share, (€) Cash flow, (m€) 0,75 0,71 0,7 0,8 0,61 0,61 (4.9) 1,7 0,6 0,53 0,9 1,5 - ( 0,3) 0,48 ( 0,2) ( 4,9) ( 6,5) 0,45 0,45 ( 3,4) 0,40 0,36 ( 2,1) 0,33 0,30 (0.2) ( 3,7) ( 4,9) ( 5,1) Q4 20

  18. Slide 18: Q1 2022 | cost efficiency

    Q1 2022| cost efficiency Stable development of gross margin during challenging market environment Development of indirect cost ratio reflects scalability of the business model Direct cost ratio, (r12m) Indirect cost ratio, (r12m) 73,9 % 73,3 % 73,6 % 73,9 % 73,9 % 74,7 % 74,4 % 18,8 % 19,0 % 19,1 %

  19. Slide 19: Financing structure and debt maturity

    Financing structure and debt maturity Executed financing arrangements in Q1/22 debt maturity structure • In February 2022, we executed with OP Corporate Bank a facilities 70 agreement concerning a 35m€ term loan facility for refinancing, 10 60 10,0 M€ undrawn acquisition loan facility and 10 M€ revo

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Boreo — Q1 2022 Earnings Presentation on 6ix