Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — FY2024 Earnings Presentation
39 slides from Relais Group Oyj's earnings presentation, Feb 13, 2025
Slide 1: Financial Statements Review 2024
FINANCIAL STATEMENTS REVIEW 2024 Relais Group Plc 13 February 2025
Slide 2: Presenting Today
PRESENTING TODAY Arni Ekholm Thomas Ekström CEO CFO 2
Slide 3: Year 2024: Highest net sales, EBITA, net profit and EPS in history
YEAR 2024: HIGHEST NET SALES, EBITA, NET PROFIT AND EARNINGS PER SHARE IN THE HISTORY OF RELAIS GROUP PLC 3
Slide 4: The Relais Growth Story
THE RELAIS GROWTH STORY Acquisition of: Adita Acquisition of: AutoMateriell Strands Group Nordic Lift Acquisition of: Raskone JTC Asennustyö M. Lumise STS Sydhamnens Trailer Ahlqvist Acquisition of: Team Verkstad Service Skeppsbrons Sverige Trucknik Ecofoss Acquisition of: SEC Scandinavia S-E-T Acqu
Slide 5: Substantial Shareholder Value Creation
SUBSTANTIAL SHAREHOLDER VALUE CREATION Relais’ absolute total shareholder return (TSR) vs. market index ✓Relais shares have delivered Outperforming OMX Helsinki by ~3.4x since IPO1 significant shareholder returns since ~101% total shareholder return the IPO in October 2019, since IPO1 outperforming
Slide 6: Relais Group Companies
RELAIS GROUP COMPANIES Technical Wholesale and Products (67% of Net Sales) Over 1,200 Spare Parts professionals in 6 countries 29% Lighting and Equipment 38% Commercial Vehicle Repair and Maintenance (33% of Net Sales) 33% 6
Slide 7: Consolidating the Vehicle Aftermarket in the Nordics
CONSOLIDATING THE VEHICLE AFTERMARKET IN THE NORDICS Relais Group Target Market Pre-market Aftermarket – Vehicle Life Cycle Enhancement End-of-life Import and Import & Customizing and Maintenance Supporting Demolition Manufacturing Reselling of Wholesale of Parts Equipping and Repair Services and Re
Slide 8: Business Review
BUSINESS REVIEW 8
Slide 9: 2024: A Record Year for Relais Group
2024: A RECORD YEAR FOR RELAIS GROUP • Comparable EBITA was 36.8 MEUR (28.9 ), a growth of 27%. Comparable EBITA-% grew from last year’s 10.1% to 11.4%. • Net sales grew with 13% from 284 MEUR to 323 MEUR. • Gross Margin grew from 45.4% to 46.9% • During the last five years, we have tripled our net
Slide 10: Financial Year 2024
Financial Year 2024 Net sales 322.6 MEUR +13% vs. FY/2023 Comparable EBITA 36.8 MEUR +27% vs. FY/2023 Earnings per share, 1.02 basic (EUR) 0.76 in FY 2023 (growth: +35%) Profit for the period 18.5 MEUR +35% vs. FY 2023 Return on capital 13.2% employed (ROCE) 10.0% in FY/2023 (growth: +32%) Return on
Slide 11: FY 2024: Technical Wholesale and Products
FY 2024: TECHNICAL WHOLESALE AND PRODUCTS • Technical Wholesale and Products grew significantly reaching a net sales growth of 13%, organic +9%. • The demand for spare parts and equipment was strong in all our operating countries, demonstrating the defensive nature of the vehicle aftermarket. • The
Slide 12: FY 2024: Lighting
FY 2024: LIGHTING • Year 2024 was yet another year of net sales growth for Lighting product group • The export success of our Strands brand continued, especially in the Central European markets. • In the Nordic markets we relaunched our Optibeam brand and introduced several new products into that ra
Slide 13: FY 2024: Repair and Maintenance
FY 2024: REPAIR AND MAINTENANCE • The net sales grew with +15% , organic +7% • Both Raskone and STS continued their strong performance. • The acquisition of M. Ahlqvist in Finland and Team Verkstad in Sweden further strengthened our competitiveness and service offering to our customers. • The contin
Slide 14: Sales by Segment FY 2024
SALES BY SEGMENT FY 2024 FY 2023 FY 2024 % of Net Sales % of Net Sales Finland & Baltics Finland & Baltics 45% 45% 55% 55% Scandinavia Scandinavia EURm EURm Scandinavia ◼ 155.9 ◼ 178.9 + 15% Finland & Baltics ◼ 128.4 ◼ 143.7 + 12% 14
Slide 15: Sales by Business Area FY 2024
SALES BY BUSINESS AREA FY 2024 FY 2023 FY 2024 % of Net Sales % of Net Sales Repair and Maintenance Repair and Maintenance 32% 33% 68% 67% Technical Wholesale and Products Technical Wholesale and Products EURm EURm Technical Wholesale and Products ◼ 192.4 ◼ 217.1 +13% Repair and Maintenance ◼ 91.9 ◼
Slide 16: Sales Split by Product Group FY 2024
SALES SPLIT BY PRODUCT GROUP FY 2024 FY 2023 FY 2024 % of Net Sales % of Net Sales Repair and Maintenance Spare Parts Repair and Maintenance Spare Parts 32% 30% 33% 31% 17% 21% 17% 19% Equipment Lighting Equipment Lighting 16 * S T A T U S N O T E : T O T A L S O F P R O D U C T G R O UP S M A Y N O
Slide 17: Acquisitions
ACQUISITIONS • Two well-targeted acquisitions strengthened our commercial vehicle repair and maintenance business area with M. Ahlqvist and Team Verkstad joining our team in 2024. • We continued to scan the market for good acquisition targets and were engaged in several discussions and negotiations
Slide 18: Acquisition Pipeline Metrics
ACQUISTION PIPELINE METRICS Actively evaluate large pipeline of potential ~550 companies monitored ✓ opportunities – number of companies monitored constantly growing ~170 identified acquisition Targeted list of companies that are identified ✓ to be interesting and potentially actionable candidates P
Slide 19: Sustainability
SUSTAINABILITY 19
Slide 20: Sustainability Report
SUSTAINABILITY REPORT • In the last quarter of 2024, we continued our preparations for reporting in accordance with the Sustainability Reporting Directive, CSRD. • We finalised the Group-level GHG protocol emissions calculations, including scope 3 emissions, and for the first time conducted a Group-
Slide 21: Outlook 2025
OUTLOOK 2025 21
Slide 22: Outlook 2025
OUTLOOK 2025 • Relais Group's strong performance in 2024 creates a solid platform to continue the positive trend also during the year 2025. We expect the market demand to be on a stable level in our operating countries. • We aim to increase the pace of acquisitions and continue to create value for o
Slide 23: Relais Group as an Investment
RELAIS GROUP AS AN INVESTMENT
Slide 24: Relais Group as an Investment
RELAIS GROUP AS AN INVESTMENT Active consolidator with a clear focus on the vehicle aftermarket Track record of successful M&A in a highly fragmented industry with significant acquisition opportunities Exposure to large, resilient and structurally growing markets Scalable platform across diversified
Slide 25: Financial Review
FINANCIAL REVIEW RELAIS
Slide 26: Net Sales and EBITA
NET SALES AND EBITA HIGHEST IN HISTORY OF RELAIS GROUP Net sales EBITA +12% +28% MEUR MEUR 100 9.7 10.0 90.7 10 90 9.1 80.9 82.8 8.4 80 73.5 75.2 74.3 74.9 8.0 8.0 7.7 7.8 69 70.3 8 7.5 7.3 70 62.1 64.8 64.1 58.7 58.6 6.2 60 53.5 52.1 5.7 5.7 6 50 4.8 4.1 40 4 3.4 30 20 2 10 0 0 Q121 Q221 Q321 Q421
Slide 27: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN CONTINUED SIGNIFICANT IMPROVEMENT IN BOTH GROSS PROFIT AND GROSS MARGIN MEUR MEUR + Strong organic net sales growth 60 160 151.2 especially in Technical Wholesale 140 50 128.9 and Products 117.2 41.6 120 + Increased weight of Repair and 40 99.6 35.3 100 Maintenance 33.7
Slide 28: Operating Expenses
OPERATING EXPENSES INCREASE MOSTLY DRIVEN BY ACQUISITIONS STABLE OPEX% MEUR MEUR 30 27.9 120 102.2 24.3 24.4 25 100 21.7 88.0 83.3 20 80 66.6 15 30.8% 60 32.0% 32.4% 29.5% 30.1% 31.0% 31.7% 10 40 28.0% 5 20 0 0 Q4 21 Q4 22 Q4 23 Q4 24 1-12/21 1-12/22 1-12/23 1-12/24 Opex Opex%
Slide 29: Net Working Capital
NET WORKING CAPITAL INVENTORY & NWC TURNOVER CONTINUED TO BE ABOVE PRY HIGHER INVENTORIES IN TECHNICAL WHOLESALE, INVENTORY INVESTMENTS AND INFLATION INCREASED NWC EURO VALUE +2% MEUR 12/24 12/23 MEUR Inventories 83.7 74.1 69.7 68.8 67.1 67.8 67.1 67.4 68.2 70 Trade and other receivables 42.2 45.4
Slide 30: Cash Flow and Cash Conversion
CASH FLOW AND CASH CONVERSION CF FROM OPERATIONS BEFORE CHANGE IN NWC IMPROVED CHANGE IN NWC POSITIVE IN Q4, NEGATIVE IN JAN-DEC HIGHER INTEREST AND TAX PAYMENTS IN JAN-DEC MEUR MEUR 10-12/ 10-12/ 2024 2023 24 23 18 +194% 17.2 CF before change in NWC 13.9 11.9 52.5 44.4 16.4 16 Change in NWC 6.8
Slide 31: Cash Flow Summary 2024
CASH FLOW SUMMARY 2024 Cash flow from Cash flow from Cash flow from operations investing activities financing activities 34.8 -7.2 -27.7 EUR million EUR million EUR million (30.6) (-8.0) (-27.0) + Improved profitability · Decrease due to lower investments ± Normal repayments of lease − Development i
Slide 32: Interest-Bearing Net Debt
INTEREST-BEARING NET DEBT CLEARLY LOWER LEVERAGE DUE TO INCREASED LTM EBITDA AND LOWER NET DEBT STABLE CASH & UNUSED CREDIT FACILITIES MEUR 12/24 12/23 -7% Loans from financial institutions, l-t 83.8 88.8 MEUR Loans from financial institutions, s-t 7.0 7.1 160 156 157 151 146 147 143 144 144 145 1
Slide 33: Net Financials
NET FINANCIALS NET INTEREST EXPENSES HIGHER IN JAN-DEC, Q4 FLAT FX NET EXPENSE IN Q4 AND JAN-DEC (EUR 1,000) 10-12/2024 10-12/2023 1-12/2024 1-12/2023 • Net interest expenses increased in Jan-Dec Financial income due to the increase in reference interest Foreign exchange gains/losses 887 -780 2,364
Slide 34: Balance Sheet and Financial Position December 2024
BALANCE SHEET AND FINANCIAL POSITION 31 DECEMBER 2024 Total assets Total equity Interest-bearing net debt 330.2 117.6 141.3 EUR million EUR million EUR million (329.1) (110.7) (151.0) Net gearing Equity ratio Cash assets 120.1 35.6 9.6 % % EUR million (136.5) (33.6) (9.7) 34
Slide 35: Return
RETURN SIGNIFICANT IMPROVEMENTS IN ALL KEY CAPITAL RETURN METRICS RONWC 53.4% (44.0%) ROCE 13.2% (10.0%) ROE 16.2% (12.8%) 35
Slide 36: Long Term Financial Target
LONG TERM FINANCIAL TARGET Relais Group aims to reach a pro forma* comparable EBITA of 50 MEUR by the end of 2025 * IN C LU D IN G L A TES T 12 M O N TH S ( =" R U N R A TE" ) C O MPA R A B LE 36 E B I T A O F A C Q U I RE D B U S IN E S S E S 7-NOV-24
Slide 37: Board of Directors Dividend Proposal for 2024
BOARD OF DIRECTORS DIVIDEND PROPOSAL FOR 2024 Dividend | AGM • The Board of Directors will propose to the Annual General Meeting to be held on 10 April 2025 that a dividend of maximum EUR 0.50 (0.44) per share to be paid for the financial year ended 31 December 2024. Of this dividend, EUR 0.30 per s
Slide 38: Q&A
Q&A 38 13-Feb-25
Slide 39: Relais
RELAIS