Slide 1: Q4 Interim Report Oct-Dec 2023
Q4 Interim Report okt-dec 2023 Andreas Stenbäck, CEO Martin Aronsson, CFO 9 February 2024 Volati Year-end report October – December 2023 1
Slide 2: Volati is a growing group of well-managed companies with strong earnings
Volati is a growing group of well-managed companies with strong earnings +32% EBITA CAGR Volati since 2017 Net sales, 2023 SEK 7,796 m EBITA, 2023 SEK 733 m +14% +24% Ettiketto ~20% +48% Industri ~47% EBITA CAGR ~33% EBITA CAGR EBITA CAGR since 2017 Group since 2017 since 20171 Share of group EBITA,
Slide 3: Q4 not reflecting our average earnings potential
Q4 not reflecting our average earnings potential • Four out of six platforms showed improved margins and an EBITA in line with or better than last year ─ Salix Group's EBITA remained at the same level as last year despite an 8% decrease in revenue. Margin increased due to stronger gross margins, str
Slide 4: Financial development, Q4 2023
Financial development, Q4 2023 Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 1,808 m SEK 134 m SEK 300 m 2.0x (Q4 2022: 1,930) (Q4 2022: 179) (Q4 2022: 323) (Q4 2022: 1.9x) Net sales, SEK m EBITA, SEK m 2 250 250 2 000 1 750 200 1 500 150 1 250 1 000 100 750 500 50 250 0 0 Q1 Q2 Q
Slide 5: Leaving 2023 with a strong position for long term value creation
Leaving 2023 with a strong position for long term value creation • In 2023 we have focused on long term structurally sound measures ─ Avoid taking measures that improve profitability in the short term but are damaging in a longer perspective ─ Have been a good time to address structural sound measur
Slide 6: Financial development 2023
Financial development 2023 +1% LTM Net sales SEK 7,796 m CAGR +32% +3% 733 750 25 (FY 2022: 7,751) 710 700 664 650 +3% EBITA 600 20 LTM 550 SEK 733 m 500 450 400 421 15 (FY 2022: 710) 350 312 300 10 257 10.5% +94% Operating cash flow 250 5.8% 9.2% 9.4% LTM 200 8.6% 7.6% 836 138 7.5% 150 5 SEK m 100
Slide 7: Proven track record of long-term value creation
Proven track record of long-term value creation Continued operations, Growth, Percent 86% 58% EBITA growth 35% Ø 41% 21% 2018 to 2022 7% 3% 2023 2022 2021 2020 2019 2018 Organic net sales 10% 8% growth 3% 4% Ø 5% -2% -5% 2022 2021 2020 2019 2018 2023 41% 36% Organic EBITA growth 18% Ø 19% 6% -5% -8%
Slide 8: Proven track record of long-term value creation (cont.)
Proven track record of long-term value creation (cont.) SEKm EBITA Discontinued Operations EBITA Continued Operations CAGR 18% 733 710 664 490 488** 433 377 318 215 227 137* 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Excluding capital gain of SEK 189 m ** For years 2012-2019 EBITA is e
Slide 9: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is an average annual growth in The long-term target is a return on The target is a net debt/adjusted EBITDA2) EBITA2) per ordinary share of at least 15 adjusted equity2) of 20 percent1). ratio of 2 to 3 times, and
Slide 10: Three business areas with growth focus
Three business areas with growth focus Industry Products and materials for Self-adhesive labels and Four businesses with leading builder’s hardware, machines for various market positions in their niches; consumables, construction, home applications; from decorative Products and solutions for grain &
Slide 11: Salix Group
Salix Group EBITA • Q4 EBITA in line with Q4 last year, despite a sales decline of 8%. CAGR -5% vs 2022 +14% • Increased margin by 1pp in the quarter which marks the second quarter with higher margin compared to last year. 4 000 11 • The demand in the quarter continues to be hampered due to the 10.1
Slide 12: Ettiketto Group
Ettiketto Group • Net sales decline of 7% in the quarter compared to a strong EBITA -2% vs 2022 CAGR comparative quarter in 2022 +24% • Demand still relatively good, but the company is experiencing some 900 879 25 859 volume declines, especially in Norway. 800 • The EBITA margin for Q4 increased by
Slide 13: Industry
Industry • Sales declined by 5% in the quarter, and EBITA margin by 3pp, while sales for full year is up 8% and EBITA margin flat. EBITA +8% vs 2022 CAGR • Corroventa positively affected by several late storms in Europe +48% 4 000 25 • Tornum Group increases both the margin and result in the quarter
Slide 14: 23 acquisitions totalling SEK 3.3 billion of annual sales since 2020
23 acquisitions totalling SEK 3,3 billion of annual sales since 2020 EBITA EBITA Industry EBITA ~47% ~33% ~20% SALES Heco SALES Beneli January 2020 180 MSEK June 2020 160 MSEK Pisla SALES 240 SALES Märkas 170 September 2020 MSEK September 2020 MSEK Duschy SALES March 2021 100 MSEK Strongpoint SALES
Slide 15: Case SIMEZA Silos
Case SIMEZA Silos • Spanish company, founded in 1975 • Annual sales of ~ EUR 10 million • Leading European manufacturer of storage silos for the grain industry • SIMEZA and Tornum Group complement each other and strengthening Tornum Groups product range and adds access to in-house manufactured stora
Slide 16: Add-on acquisitions are an important value driver for Volati and our platforms
Add-on acquisitions are an important value driver for Volati and our platforms 1 170 1 125 1 086 • M&A have over time contributed with 1 021 1 017 annual sales of SEK 700–1,200 million • Annual pace of 6–8 acquisitions 867 770 823 • Majority of the acquisitions are value 749 753 742 8 8 8 creating a
Slide 17: Summary
Summary • Q4 and 2023 not reflecting our average earnings potential. More platforms than normal are below what we see as their average earnings • Structurally sound measures taken during 2023. Leaving us with a strong position for long term value creation once conditions improve • Two add-on acquisi
Slide 18: Volati
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