Green Landscaping Group Ab · OMXSTO:GREEN
Green Landscaping Group Ab — Q4 2022 Earnings Presentation
20 slides from Green Landscaping Group Ab's earnings presentation, Feb 16, 2023
Slide 1: Q4 Report January – December 2022
Q4 Report January – December 2022 16 February 2023 Page 1
Slide 2: Green Landscaping Group
Green Landscaping Group A leading landscaping services group Founded 2009 in Sweden The leading consolidator of the landscaping market in Northern Europe Business model based on trust and local accountability to promote agility Focus on strong local presence and identity Net sales of SEK
Slide 3: Summary
Summary Turbulent economy, yet solid market conditions for Green Landscaping Group Net sales increased by 74% to SEK 1,625 (935) million Acquisitions contributed significantly, +59% Organic growth of 14% EBITA increased by 98% and amounted to SEK 166 million (84) EBITA-margin of 10.2% (8
Slide 4: Strong growth in the quarter, in 2022, and over time
Strong growth in the quarter, in 2022, and over time Strong growth in the quarter Steady long-term growth Net sales Q4 74% Net sales full year 2022 53% Organic growth 14% Organic growth 7% Acquisition growth 59% Acquisition growth 45% Net sales, SEK million Net sales, last 12 months, SEK
Slide 5: Order backlog increased to SEK 7.8 billion
Order backlog increased to SEK 7.8 billion 8 000 7 000 Growth of 51% compared with Q4 2021 6 000 5 000 Increase attributable to acquisitions and new 4 000 contracts. High retention rate. 3 000 2 000 Majority of order book consists of contracts 1 000 with public sector customers - 2019 2020 2021 2022
Slide 6: Resilient customer base
Resilient customer base Stable market and sustainable growth Addressable market ranging between 5-6% of total municipality spend since 2011 Municipality spend on addressable market Total municipality spend and addressable market SEK billion SEK billion 1 000 100% 60 900 90% 50 CAGR: 4% 800 80% 700 7
Slide 7: Steady increase of EBITA and EBITA-margin
Steady increase of EBITA and EBITA-margin Strong growth in the quarter, +98% Steady growth over time Existing businesses increased EBITA by 27% EBITA increased eleven consecutive quarters and improved margins EBITA margin at record-high level, 8.5% for 2022 Acquired companies contributed sig
Slide 8: Performance by segment Q4 (1/2)
Performance by segment Q4 (1/2) Region Norway Net sales SEK 740 (320) million. Significant contribution from acquisitions. Good organic growth. EBITA-margin 13.4% (20.1). Negative mix effect as companies joining during the year have lower margins. Net sales per segment Region Mid Region Norway, 36%
Slide 9: Performance by segment Q4 (2/2)
Performance by segment Q4 (2/2) Region Stockholm Net sales SEK 201 (159) million. Organic growth and acquisition of Sorex Entreprenad during Q3 contributed positively. EBITA-margin 8.7% (6.6). Good project execution, several larger alterations and additional works contributed positively. Net sales p
Slide 10: Acquired companies in Q4
Acquired companies in Q4 H&K Sandnes AS Stebule UAB Founded in 1972 in Norway Founded in 1993 in Lithuania Offers complete groundwork services within Leading landscaping service company in Lithuania. infrastructure. Through subsidiary the company Provides services and maintenance of urban ro
Slide 11: Acquired companies in Q4
Acquired companies in Q4 Taimisto Huutokoski Oy H.T. Vike AS Founded in 1952 in Finland Founded in 2012 in Norway Plant nursery of trees and shrubs. Provides high- Provides groundwork mainly to fuel companies in quality plants and a high service level. Constitutes a Norway and has a central
Slide 12: Financials
Financials Page 12
Slide 13: Key financials Q4 and full year 2022
Strong development across the line Key financials Q4 and full year 2022 Net sales increased significantly EBITA almost doubled Q4 Q4 FULL YEAR SEK million 2022 2021 2022 EBITA-margin increased to new record-high level NET SALES 1,625 935 4,810 Strong cash flow EBITA 166 84 407 Solid order
Slide 14: Cash flow
Cash flow SEK million 250 Record-strong cash flow from operating activities, amounting to SEK 215 (47) million 200 EBITA contributed significantly 150 Working capital had a limited effect as increases in inventory and accounts receivable were more 100 than offset by increased accounts payables
Slide 15: Cash Flow Bridge
Cash Flow Bridge Strong EBIT contribution Acquisitions largely met by new loans SEK million 250 EBITA 166 14 70 200 36 150 29 150 136 326 100 215 -289 50 0 -50 -32 -100 -150 EBIT Amortization Depreciation & non- Change in NWC Cash flow from Acquisitions Capex & other New loans Other financial Cash f
Slide 16: Financial leverage
Financial leverage 4 3,6 3,5 Financial leverage amounted to 2.4X (2.4X) Level below financial target 3 2,9 2,9 2,8 2,7 Strong generation of cash flow from operating 2,5 2,6 2,4 2,4 2,4 2,4 activities 2,3 2,3 2 1,5 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 17: Loan maturity profile
Loan maturity profile No maturities until 2025, one year extension optional Total maturities amounting to SEK 1,700 million Bank loans only Only covenant being Net debt / EBITDA pro forma. Current level of 2.4 leaves plenty of headroom SEK million 1 800 1 600 1 400 1 200 1 000 800 600 400 20
Slide 18: Financial targets
Financial targets Growth EBITA margin Leverage (ND/EBITDA) Dividend (% of NI) 10% 8% 2.5x 40% Approximately 40% of profit for the year shall be distributed as dividends to shareholders. The Sales shall, on average, Net debt in relation to EBITDA EBITA margin shall dividend proposal shall take into g
Slide 19: Summary
Summary Turbulent economy, yet solid market conditions for Green Landscaping Group Net sales increased by 74% to SEK 1,625 (935) million Acquisitions contributed significantly, +59% Organic growth of 14% EBITA increased by 98% and amounted to SEK 166 million (84) EBITA-margin of 10.2% (8
Slide 20: Page 20
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Green Landscaping Group — Q4 2022 Earnings Presentation on 6ix