Boreo Oyj · OMXHEX:BOREO
Boreo Oyj — Q1 2023 Earnings Presentation
22 slides from Boreo Oyj's earnings presentation, May 5, 2023
Slide 1: Strong growth of earnings
Strong growth of earnings Q123 Webcast | May 5, 2023
Slide 2: Agenda
AGENDA • Q1 2023 highlights • Q1 2023 financials • Q&A
Slide 3: Q123 Highlights
Q123 Highlights operational ebit grew by 81% Roce improved from Q422 to 11.3% 2.1m€ operational EBIT (1.2m€ Q122) R12 month EBIT to 9.6m€, Return on Trade Working Capital* at 28% Margin up to 5.1% (3.6%) Cash conversion** (operative) of 35% (R12 Organic growth 42%, acquired growth 58% 44%) Leverage
Slide 4: Continued earnings growth contributing to uplift in ROCE
continued earnings growth contributing to uplift in roce R12 ebit 5.7% - release of working cap expected in Q223 – leverage stable Operational ebit (€) & ebit%, r12 Roce% net debt/operational ebitda 5.7 % 5.8 % 5.9 % 5.4 % 5.4 % 5.4 % 5.4 % 5.7 % 12.5 % 12.3 % 13.4 % 4.7 % 11.3 % 10.8 % 10.8 % 11.3
Slide 5: Profitability & Capital efficiency improving step-by-step
Profitability & Capital efficiency improving step-by-step Group return on trade working cap. at 28%, work continues in rooting the return on capital -mindset 60 % ROTWC%, R12 EBIT%, R12 49 % 50 % 43 % 44 % 44 % 44 % 42 % 43 % 43 % 40 % 40 % 38 % 29 % 28 % 30 % 27 % 27 % 27 % 19 % 18 % 20 % 16 % 12 %
Slide 6: Continued strong execution & development
Continued strong execution & development We continue to take steps to the right direction acquisitions development People & culture Way 2 acquisitions to technical trade Development of playbook Sustainability in focus • ~15% EBITDA margins & high • Boreo Book in preparation • Trainings of Leadership
Slide 7: Exit from SANY operations in Finland & Sweden
Exit from sany operations in finland & Sweden Expected improved earnings & capital efficiency – positive cash flow impact in q223 Commentary Finnish & swedish sany operations as part of boreo (now exited) • Part of heavy machines business area 1 Capital allocation mindset The business failed to meet
Slide 8: Agenda
AGENDA • Q1 2023 highlights • Q1 2023 financials • Q&A
Slide 9: Q1 2023 | Net sales & operational EBIT
Q1 2023| Net sales & operational ebit Operational ebit growth clearly above strategic target Net sales, r12 * Operational ebit & ebit%, r12 * STR target > 15% p.a. +31% +36% 5.7 % 5.8 % 5.9 % 5.4 % 5.4 % 5.4 % 5.4 % 5.7 % 4.7 % 160 170 9.6 155 8.7 130 140 8.4 122 7.2 7.1 7.6 95 102 5.9 84 5.4 3.9 Q1
Slide 10: Q1 2023 | Net sales & operational EBIT
Q1 2023| Net sales & operational ebit Strong earnings growth, improved profitability Net sales * Operational ebit & ebit% * +29% +81% 6.8 % 5.8 % 4.9 % 5.1 % 3.6 % 43.3 45.0 40.4 41.0 3.0 31.7 2.4 2.2 2.1 1.2 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 2022 2022 2022 2022 2023 *Adjusted f
Slide 11: Q1 2023 | Net sales growth
Q1 2023| net sales growth Sales growth contributed both by acquisitions and the ’old’ business net sales growth 29% growth Q1/23 vs. Q1/22 11
Slide 12: Q1 2023 | EBIT growth
Q1 2023| EBIT growth ebit growth contributed by acquisitions and the ’old’ business Ebit growth 81% growth Q1/23 vs. Q1/22 12
Slide 13: Electronics
Electronics Acquisition of ssn and infradex grew net sales. operational ebit at 5.9% - outlook remains stable Comments – q1 2023 Net sales and operational ebit% Q422 vs. Q421* • Finnish operations (Yleiselektroniikka, Noretron, Milcon, 7.8 % 8.3 % 6.4 % 4.4 % 5.9 % Infradex, SSN) ▪ Strong performanc
Slide 14: Technical trade
Technical trade Net sales grew as a result of pronius, J-Matic & Filterit acquisitions – Operational ebit at 8.8%, stable outlook Comments – q1 2023 Net sales and operational ebit% Q422 vs. Q421 • Machinery Power 12.2 % 12.2 % ▪ Power had a good start in absolute terms – sales 8.8 % 8.8 % and profit
Slide 15: Heavy machines
Heavy machines exit from sany operations in Finland and Sweden proceeds, positive working capital release in q2 Comments – q1 2023 Net sales and operational ebit% • Putzmeister business 5.1 % 3.6 % 1.8 % 2.3 % ▪ Sales increased in Finland and Sweden despite -0.8 % deliveries continuing to be postpon
Slide 16: Other operations
Other operations stable performance in an inflatory environment, short-term margin pressures continue Comments – q1 2023 Net sales and ebit% of operational companies 14 % 11 % 15 % 13 % 4% • Net sales of 1.2m€ and operational EBIT of 13%. Net sales were positively affected by the Vesterbacka Transpo
Slide 17: Q1 2023 | ROCE & ROE
Q1 2023| ROCE & ROE Capital efficiency improved from q4/22 supported by earnings growth Roce% * STR target > 15% Roe% * 12.5 % 12.3 % 13.4 % 33.2 % 27.8 % 28.6 % 11.3 % 10.8 % 10.8 % 11.3 % 25.8 % 9.7 % 10.4 % 13.7 % 11.4 % 13.1 % 12.1 % 12.3 % 37 39 84 85 77 30 70 62 24 48 53 19 41 44 8.7 9.6 3.8 1
Slide 18: Q1 2023 | Net debt and cash conversion
Q1 2023| net debt and CASH CONVERSION Leverage increased to 2.4x due to investments Net debt & net debt/operational ebitda* STR target 2-3X Cash flow (R12) AND CASH CONVERSION, % (R12) ** 2.5 X 2.5 X 2.4 X 74 % 2.2 X 46 % 51 % 1.6 x 44 % 4.4 10 % 4.5 4.4 3.0 34.6 33.9 36.0 30.9 26.7 0.7 Q1 Q2 Q3 Q4
Slide 19: Q1 2023 | EPS and cash flow
Q1 2023| eps and cash flow operational cash FLOW impacted by periodic working capital increase Earnings per share* CASH FLOW** 23% 2.6 0.83 3.7 1.5 0.8 0.8 0.63 (6.5) (1.9) (2.9) (1.1) (3.9) 0.44 (2.1) 0.32 (2.5) 0.28 0.28 (3.2) 0.23 0.16 (4.3) (5.1) 0.05 0.07 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022
Slide 20: Agenda
AGENDA • Q1 2023 highlights • Q1 2023 financials • Q&A
Slide 21: yy yj
We, yy yj Wa e “
Slide 22: Grow & prosper
BOREGS GROW & PROSPER