Storskogen Group Ab Class B · OMXSTO:STOR_B
Storskogen Group Ab Class B — Q3 2021 Earnings Presentation
22 slides from Storskogen Group Ab Class B's earnings presentation, Nov 18, 2021
Slide 1: Storskogen Q3 2021
Today’s presenters Storskogen Q3 2021 Daniel Kaplan Lena Glader CEO and co-founder CFO 18 November 2021 1
Slide 2: Agenda
Agenda 1. Storskogen and Q3 in brief 2. Financial performance 3. Strategic development 4. Q&A 2
Slide 3: Storskogen in brief as of 18 November
Storskogen in brief as of 18 November Storskogen is an international compounder with an infinite ownership agenda with the vision to be the best owner of small- and medium sized companies Country with business units SME compounder with an Present 2) Vision to be the best SME owner infinite ownership
Slide 4: Our business areas as of 18 November
Our business areas as of 18 November Highly diversified business split out across 3 business areas, 12 verticals, 102 business units and +300 companies in more than 21 countries SERVICES TRADE INDUSTRY Peter Ahlgren Christer Hansson Fredrik Bergegård No. of Business units 50 No. of Business units 24
Slide 5: In summary
In summary IN NUMBERS A strong EBITA development, a successful IPO and a new credit facility paves the way for future growth Net sales (SEKm) Adj. EBITA (SEKm) 4,744 in Q3 and 492 in Q3 and • Reported net sales of SEK 4,744m (118% growth) and Adj. EBITA of SEK 492m (100% growth) 11,457 YTD 1,145 YTD
Slide 6: Acquisitions
Acquisitions Limited M&A in Q3 due to the IPO but with 14 acquisitions so far in Q4 and a strong pipeline going forward the Storskogen’s M&A engine is up to speed ACQUISITIONS IN THE QUARTER ACQUIRED ANNUAL REVENUE BY QUARTER • Marwell AG and Frigo AG acquired in Q3, with 487 combined net sales in 2
Slide 7: Storskogen’s recent acquisitions
Storskogen’s recent acquisitions 45 acquisitions during Jan-Sep, with combined 2020 net sales of SEK 8.4 bn Acquisitions Jan-Sep Net sales, Acquisitions Jan-Sep Net sales, Acquisitions Jan-Sep Net sales, (1/3) SEKm 2020 (2/3) SEKm 2020 (2/3) SEKm 2020 Pierre Entreprenad i Gävle AB 177 Mattbolaget i
Slide 8: Operational development by business area
Operational development by business area 70% net sales CAGR since 2017 and a strong organic EBITA growth momentum makes Storskogen well positioned for the rest of 2021 ORGANIC ADJ. EBITA GROWTH NET SALES BY BUSINESS AREA NET SALES (%) LTM REVENUE (SEKm) YTD (%) 16 000 14 000 12 000 28 3,961 42 10 00
Slide 9: Financial performance
1. Storskogen and Q3 in brief 2. Financial performance 3. Strategic development 4. Q&A 9
Slide 10: Key financial performance Q3 2021
Key financial performance Q3 2021 Net sales increased 118% - Adj. EBITA growth 100% • Significant net sales growth in all business areas, group net 2021 2020 sales increased by 118% to SEK 4,744m SEKm Q3 Q3 Chg., % LTM RTM 1) Net sales 4,744 2,176 118 14,037 19,381 • Organic net sales growth was 16%
Slide 11: Net sales and EBITA trend
Net sales and EBITA trend Consistent sales growth and stable profitability combined with a strong M&A engine NET SALES AND ADJUSTED EBITA MARGIN (Q) RTM NET SALES AND RTM ADJ. EBITA 6 000 50% 24 000 50% 21 307 45% 45% 5 000 4 744 20 000 19 381 18 679 40% 40% 35% 35% 4 000 3 821 16 000 30% 30% 12 274
Slide 12: Financial development – Services
Financial development – Services Organic Y/Y growth despite an exceptionally strong Q3 2020 NET SALES AND ADJ. EBITA NET SALES AND ADJ. EBITA COMMENT MARGIN (Q) MARGIN (LTM) 2 000 50% 6 000 5 713 50% • Net sales increased by 65% to SEK 5 500 1 800 45% 5 071 45% 1,634m. 1 621 1 634 5 000 1 600 40% 40
Slide 13: Financial development – Trade
Financial development – Trade Net sales increased by 152% and improved margins – fuelled by increased demand in the verticals Brands and Distributors NET SALES AND ADJ. EBITA NET SALES AND ADJ. EBITA COMMENT MARGIN (Q) MARGIN (LTM) 2 000 50% 6 000 50% • Net sales increased by 152% to SEK 5 500 1 800
Slide 14: Financial development – Industry
Financial development – Industry Strong growth driven by organic performance and M&A NET SALES AND ADJ. EBITA NET SALES AND ADJ. EBITA COMMENT MARGIN (Q) MARGIN (LTM) 2 000 50% 6 000 50% • Net sales increased by 183% to SEK 5 500 1 800 45% 45% 1,608m. 1 608 5 000 1 600 40% 40% 4 500 1 400 35% 3 961
Slide 15: Cash flow
Cash flow LTM cash conversion 63% affected by strategic inventory build-up, approx. 71% on a normalised inventory level OPERATIONAL CASH FLOW AND CASH FLOW BRIDGE COMMENT CASH CONVERSION (LTM) 2 000 200% • Cash flow from operations decreased to 1 800 1 695 180% SEK -410m, driven by inventories and n
Slide 16: Net debt
Net debt Leverage of 2.8 at end-Q3, in line with financial target of 2-3. Post IPO leverage close to zero NET DEBT AND LEVERAGE RATIO COMMENT 8 000 7 7 434 • Net debt increased to SEK 7.4bn. 7 000 6 693 6 6 000 • Financial net debt, excluding earn-outs and minority 5 options, amounted to SEK 5.9bn.
Slide 17: Strategic development
1. Storskogen and Q3 in brief 2. Financial performance 3. Strategic development 4. Q&A 17
Slide 18: Strategic development
Strategic development The aim of the business development is to become the best SME owner and to capture international business opportunities Focus on • Strategic initiatives to enhance Storskogen’s existing value contribution to portfolio companies such companies as Business Excellence Groups M&A •
Slide 19: Overview of financial guidance
Overview of financial guidance Significantly stronger EBITA-growth but weaker cash conversion due to inventory build up compared to guidance MEDIUM TERM VALUE DRIVERS 2021 Acquisitions to make up the largest growth driver which will be funded through cash generation and future debt issuance, taking
Slide 20: Key takeaways
Key takeaways Well-positioned financially and operationally for continued acquisitions and expansion • Strong growth continued in Q3 • Profitability in line with targets • Temporary lower cash-conversion due to strategic inventory build-up • Secured financing for a continued high acquisition activit
Slide 21: Q&A
1. Storskogen and Q3 in brief 2. Financial performance 3. Strategic development 4. Q&A 21
Slide 22: Today’s presenters Q&A
Today’s presenters Q&A Daniel Kaplan Lena Glader CEO and co-founder CFO 22