Slide 1: Full-year 2016 presentation
VOLATI Full-year 2016 presentation 21 FEBRUARY 2017 STOCKHOLM
Slide 2: Today's presenters
TODAY’S PRESENTERS. MÅRTEN ANDERSSON MATTIAS BJÖRK CEO and Head of Industry CFO • Joined Volati in 2012 and CEO • Joined Volati in 2009 as CFO since 2014 • Holds 2.6% ordinary shares and • Holds 3.1% ordinary shares and 0.1% preference shares 0.1% preference shares • Background: Modern Times Group •
Slide 3: 2016 Highlights
2016 HIGHLIGHTS. GOOD RESULTS AND WELL POSITIONED FOR FUTURE GROWTH EBITA GROWTH NET CASH POSITION Strong balance sheet post Strong growth in EBITA IPO enabling continued 40% SEK 264m growth through acquisitions ORGANIC EBITA CASH CONVERSION GROWTH Organic growth while Strong organic EBITA growth ma
Slide 4: Financial development 2016
FINANCIAL DEVELOPMENT 2016. Net sales EBITA excl. one-offs SEK 3,206m SEK 352m (2 188) (219) Operating cash flow SEK 343m (290) 2016 4
Slide 5: Financial development in Q4 2016
FINANCIAL DEVELOPMENT IN Q4 2016. Net sales EBITA excl. one-offs SEK 780m SEK 83 m (731m) (76m) Operating Q4 Cash flow SEK 139m (123m) 5
Slide 6: Volati at a glance
VOLATI AT A GLANCE. OVERVIEW ORGANISATIONAL STRUCTURE A diversified Swedish industrial group founded in 2003: • Operating some 40 companies in 16 countries 31% 35% 34% • Organised in 3 business areas consisting of 12 business units Trading Consumer Industry • 22 acquisitions completed since 2004 • 5
Slide 7: Volati has a robust business model
VOLATI HAS A ROBUST BUSINESS MODEL. …is used for Strong operating acquisitions of ...and with a long- …at reasonable cash flow from the additional term approach to valuation multiples... business units… companies with value creation strong cash flows... Operating cash flow Acquired EBITA growth Acqu
Slide 8: Volati's proven and scalable operating model
VOLATI’S PROVEN AND SCALABLE OPERATING MODEL. VOLATI OPERATING MODEL VALUE-ADD EXAMPLE • Common vision and strategic plan for Decentralised leadership each business unit • Recruited a handful of value-adding Corporate governance external board members • Three CEOs recruited internally Strategic HR •
Slide 9: Financial highlights
FINANCIAL HIGHLIGHTS. SALES AND EBITA RETURN ON EQUITY CASH CONVERSION SEKm % % 3 206 110% 111% 103% 106% 2 188 93% 91% 92% 25% 83% 94% 90% 89% 1 656 1 509 62% 43% 1 036 1 045 43% 32% 32% 25% 19% 326 215 3521 142 89 227 1371 2191 318 1151 701 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 20
Slide 10: Overview of business areas
OVERVIEW OF BUSINESS AREAS. TRADING CONSUMER INDUSTRY 130% 11% 11% NET SALES 932 782 1 493 GROWTH 2016 838 648 702 2015 2016 2015 2016 2015 2016 143% 18% 57% EBITA GROWTH 138 135 121 2016 86 50 117 2015 2016 2015 2016 2015 2016 ROCE 196% 2016 79% 41% 10
Slide 11: Financial targets
FINANCIAL TARGETS. METRIC TARGET PERFORMANCE IN 2016 >2.6x 352 SEK 700m Reach an adjusted EBITA of SEK 700m no later than end of 2019, implying close to a doubling of 137 28% EBITA growth current adjusted EBITA, including an annual (by 2019) organic EBITA growth of 5% on average Organic EBITA 2013 2
Slide 12: A growing Swedish industrial group
A growing Swedish industrial group
Slide 13: Appendix
APPENDIX 13
Slide 14: Business area Trading – operational synergies through shared service centre
BUSINESS AREA TRADING – OPERATIONAL SYNERGIES THROUGH SHARED SERVICE CENTRE. An operational business area • Operating some 15 companies in 6 countries • Organised in 6 business units Iceland Integrated business model • Focused on three market segments: – Construction consumables and hardware (primar
Slide 15: Business area Consumer – attractive niches
BUSINESS AREA CONSUMER – ATTRACTIVE NICHES. A strategic business area • Operating some 9 companies in 5 countries • Organised in 3 business units Strong local entrepreneurship • Business units focused on B2C niches • Strong local entrepreneurship combined with collaboration in selected areas such as
Slide 16: Business area Industry – successful expansion
BUSINESS AREA INDUSTRY – SUCCESSFUL EXPANSION. A strategic business area • Operating some 19 companies in 14 countries • Organised in 3 business units Strong local entrepreneurship • Business units focused on B2B niches • Strong local entrepreneurship combined with collaboration in selected areas su
Slide 17: Income statement
INCOME STATEMENT. SEKm 2013 2014 2015 2016 Net sales 1,509 1,656 2,188 3,207 Raw materials and supplies -549 -547 -933 -1,526 Other external costs -274 -347 -413 -516 Personnel costs -518 -513 -582 -771 Other income 3 3 18 4 Other operating costs -2 -2 -3 -12 Realised profit from divestments 189 - -
Slide 18: Balance sheet
BALANCE SHEET. SEKm 31 Dec '13 31 Dec '14 31 Dec '15 31 Dec '16 Intangible fixed assets 860 1,160 1,689 1,840 Tangible fixed assets 141 138 180 191 Financial fixed assets 8 8 13 8 Other non-current marketable securities 4 4 7 - Deferred tax assets 16 21 33 42 Total non-current assets 1,030 1,332 1,9
Slide 19: Net debt and working capital
NET DEBT AND WORKING CAPITAL. SEKm 31 Dec '13 31 Dec '14 31 Dec '15 31 Dec '16 Net debt Cash and cash equivalents -157 -156 -200 -371 Pension liabilities 2 2 2 3 Non-current interest-bearing liabilities 441 1055 908 54 Current interest-bearing liabilities 497 165 133 73 Unrealised derivative instrum
Slide 20: Cash flow statement
CASH FLOW STATEMENT. SEKm 2013 2014 2015 2016 Profit before tax 267 61 161 254 Adjustment for non-cash items -116 172 96 122 Interest paid -24 -58 -45 -39 Interest received 1 3 1 1 Cash taxes -33 -18 -19 -42 Cash flow before changes in working capital 96 160 196 295 Change in inventories 5 -11 18 -2
Slide 21: Definitions of key metrics
DEFINITIONS OF KEY METRICS. Metric Explanation Adjusted Explanation Business area return on capital employed (BA BA EBITA in relation to BA capital employed - - ROCE) Cash conversion excluding capex related to Besikta IT Cash conversion Operating cash flow in relation to EBITDA Adj. cash conversion