Roko Ab Class B · OMXSTO:ROKO_B
Roko Ab Class B — Jan-Sep 2022 Earnings Presentation
19 slides from Roko Ab Class B's earnings presentation, Nov 4, 2022
Slide 1: The Perpetual Owner – Presentation Jan-Sep 2022
The Perpetual Owner The Perpetual Owner Presentation Jan-Sep 2022 November 4, 2022 1
Slide 2: The Perpetual Owner
The Perpetual Owner • Europe has over 20 million privately owned, small and medium sized businesses1) • Approximately 15,000 companies are sold each year2) • Röko focuses on a small subsection of this large universe – high-quality, sustainable, niche companies with continuous profit growth. Preferab
Slide 3: Financial development
Financial development SEKm 2019 2020 2021 Jan-Sep 2021 Jan-Sep 2022 Net sales RTM1) 490 1,146 3,136 n.a. 4,811 Net sales 23 614 2,083 1,407 3,046 Organic growth2) n.a. 10% 13% n.a. 9% EBITA RTM1) 106 219 606 n.a. 915 EBITA -3 125 403 289 572 EBITA margin RTM1) 22% 19% 19% 21%3) 19% Interest-bearing
Slide 4: Röko characteristics
Röko characteristics • Röko is a sector agnostic serial acquirer with focus on ― High margins ― Consecutive earnings growth • Röko invests in founder-owned and family businesses • Local management remains or becomes shareholders in their companies – local ownership average 30% Source: Company inform
Slide 5: Portfolio company characteristics
Portfolio company characteristics Management age structure (CEO, years old)1) Organic growth ’211,2) Geographies1) <45 6 <0% 1 UK 7 45-60 14 0-10% 10 Denmark 4 >60 1 >10% 10 Norway 4 Sweden 4 Netherlands 2 Source: Company information Note: 1) As of August 2022; 2) Based on financials from management
Slide 6: Key investment highlights
Key investment highlights • Highly experienced acquisitive management team • Stringent investment criteria safeguarding quality investments • Perpetual ownership and decentralised structure is very attractive to private family businesses • The diversified portfolio of European companies creates a ve
Slide 7: Share price development for serial acquirers
Share price development for serial acquirers 10y indexed share price performance – up ~12x, vs. benchmark at ~2-3x 2,000 1,750 1,500 1,250 1,000 750 500 250 0 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Oct-15 Oct-17 Apr-19 Apr-21 Oct-12 Apr-13 Jul-13 Oct-13 Apr-14 Jul-14 O
Slide 8: Financial targets
Financial targets Growth Achieve EBITA growth each year (excluding the impact of acquisitions) Profitability EBITA margin of more than 15% Capital structure Net debt1) in relation to EBITDA RTM2) should be below 3.0x. The net debt may temporarily exceed the target as a result of acquisitions
Slide 9: Appendix
ROKO Appendix
Slide 10: Segment financials
Segment financials B2B (SEKm) Jan-Sep 2021 Jan-Sep 2022 Change FY 2021 Net sales RTM1) n.a. 3,347 n.a. 2,020 Net sales 772 2,037 164% 1,177 EBITA RTM1) n.a. 627 n.a. 399 EBITA 179 402 124% 242 EBITA margin 23% 20% -3 p.p. 21% B2C (SEKm) Jan-Sep 2021 Jan-Sep 2022 Change FY 2021 Net sales RTM1) n.a. 1
Slide 11: Cash flow and capital efficiency
Cash flow and capital efficiency Operating cash flow and cash conversion Capital employed and ROCE SEKm Jan-Sep 2021 Jan-Sep 2022 FY 2021 SEKm Jan-Sep 2021 Jan-Sep 2022 FY 2021 Operating cash flow 203 305 248 Equity 1,786 3,575 1,991 EBITA 289 572 403 Interest-bearing debt 951 1,747 1,087 Cash conve
Slide 12: KPIs
KPIs SEKm Jan-Sep 2021 Jan-Sep 2022 Change FY 2021 Net sales 1,407 3,046 116% 2,083 Net sales RTM1) n.a. 4,811 n.a. n.a. EBITA 289 572 98% 403 EBITA margin, % 21% 19% -2 p.p 19% EBITA RTM1) n.a. 915 n.a. n.a. EBITA RTM1) margin, % n.a. 19% n.a. n.a. EBITDA 329 655 99% 462 EBITDA margin, % 23% 21% -2
Slide 13: Profit and loss statement
Profit and loss statement Full-year Jan-Sep Jan-Sep SEKm 2019 2020 2021 2021 2022 Net sales 23 614 2,083 1,407 3,046 Cost of goods and services sold -15 -310 -1,293 -878 -1,869 Gross profit 8 304 790 529 1,177 Sales and marketing expenses -5 -109 -203 -137 -328 Administrative expenses -4 -98 -248 -1
Slide 14: Balance sheet
Balance sheet Dec-31 Sep-30 Dec-31 Sep-30 SEKm 2019 2020 2021 2022 SEKm 2019 2020 2021 2022 ASSETS EQUITY AND LIABILITIES Fixed assets Equity Intangible assets 955 1,506 3,984 6,037 Equity attributable to Röko’s shareholders 350 719 1,991 3,575 Tangible assets 197 251 506 708 Total equity 350 719 1,
Slide 15: Cash flow statement
Cash flow statement Full-year Jan-Sep Jan-Sep SEKm 2019 2020 2021 2021 2022 Operating activities Operating profit -11 89 312 227 442 Adjustment for non-cash items 2 44 107 88 187 Net financial items -1 -14 -26 -16 -44 Paid tax 0 -40 -86 -38 -93 Cash flow from operating activities before changes in w
Slide 16: Board of Directors – all Directors are shareholders in Röko
Board of Directors – all Directors are shareholders in Röko Tomas Billing Previous experience: CEO Nordstjernan, CEO Hufvudstaden, Chairman NCC. Education: MSc in Business Administration (SSE), Chairman and co-founder Scholarship to Luther College, USA, Other engagements: Co-owner and board member H
Slide 17: The Röko team – all full-time employees are shareholders in Röko
The Röko team – all full-time employees are shareholders in Röko Previous experience Education Type Started Tomas Billing1) CEO Nordstjernan, CEO MSc in Business Administration (SSE), Full-time 2019 Chairman and co-founder Hufvudstaden, Chairman NCC Scholarship to Luther College, USA assignment Fred
Slide 18: Disclaimer
Disclaimer The Manager have not conducted any independent review or verification of the information in the Presentation and although efforts have been made to accurately describe Röko, the Manager disclaims any and all liability for the content being correct, accurate and complete. In addition to in
Slide 19: The Perpetual Owner
ROKO The Perpetual Owner