Boreo Oyj · OMXHEX:BOREO
Boreo Oyj — Q2 2022 Earnings Presentation
21 slides from Boreo Oyj's earnings presentation, Aug 10, 2022
Slide 1: Q2 2022 half year report
q2 2022 half year report Webcast | August 10, 2022
Slide 2: Agenda
AGENDA • Q2 2022 highlights • Q2 2022 financials • Q&A
Slide 3: Highlights of Q2 2022 (continued operations)
Highlights of Q2 2022 (continued operations) Net sales grew by 34% Operational ebit grew by 34% 40.4m€ net sales (30.2m€ Q221) 2.4m€ (5.8%) operational EBIT (1.8m€ Q221) Organic growth 5.7m€* Stable profitability development, successful Growth via acquisitions 4.7m€ performance in an inflatory envir
Slide 4: Stable financial performance in Q2 (continued operations)
stable financial performance in q2 (continued operations) continued growth in net sales and operational EBIT Net sales, (m€)* Operational ebit, (m€,%)* Leverage* 7.8 % 8.5 % 6.1 % 4.8 % 5.8 % 5.1 % 5.5 % 2.6 X 2.6 x 3.6 % 2.5 X 2.5 X 1.3 % 2.4 1.6 x 2.2 39.2 40.4 1.9 1.9 1.9 30.2 28.8 31.7 35.9 37.9
Slide 5: All business areas continued to operate well
all business areas continued to operate well Outlook stable in spite of uncertainties in the general operating environment Electronics (cont.oper.), (m€,%)* Technical trade, (m€,%) HEAvy machines, (m€,%) 10.6 % 12.4 % 12.5 % 14.7 % 9.2 % 10.1 % 8.5 % 7.5 % 8.5 % 7.1 % 7.8 % 5.1 % 4.5 % 9.1 % 12.5 5.
Slide 6: Exit from Russia completed
Exit from Russia completed Sale to management completes the process started in march 2022 Full exit for boreo, the best available long-term solution for the business and its employees 1 Scope: Sale of 90% shares in electronic component distribution business in Russia 2 Buyer: Mr. Yrjö Pönni, current
Slide 7: Strategic agenda | key events in Q2 2022
Strategic agenda | key events in q2 2022 Gradual small steps towards the ultimate objective of long-term shareholder value creation 1 M&A: Value creation via M&A continues, 3 acquisitions completed 2 Development: gradual steps taken in companies on strategic plans and improvement initiatives 3 Peopl
Slide 8: Value creation via M&A continued in Q2
Value creation via M&A continued in Q2 Signal solutions Led systems Gt motor & Campus extension Add-on to Electronics BA Add-on to Yleiselektroniikka Add-on to Machinery Power One-stop-shop for wireless, A supplier of circuit board Acquired machining operations and fiber optics and EMC needs connect
Slide 9: Demonstrated commitment of key people to Boreo journey
Demonstrated commitment of key people to boreo journey - 1.5m€ invested by personnel as part of share issue ownership structure, july 29, 2022 Personnel Share Issue • 40 000 new shares subscribed (1.5% of shares) Preato • Investments in a total amount of c. 1.5m€ 20.6 % • 41 employees subscribed for
Slide 10: Coming soon: Strategy update & capital markets day
coming soon Strategy update & capital markets day in fall 2022
Slide 11: Agenda
AGENDA • Q2 2022 highlights • Q2 2022 financials • Q&A
Slide 12: Q2 2022 | key figures (Continued operations)
Q2 2022 | key figures (Continued operations) Strong growth in net sales and operational ebit continued EUR million Q2 2022 Q2 2021 Change 2021 Net sales 40.4 30.2 34 % 122.0 Operational EBIT 2.4 1.8 34 % 7.2 relative to net sales, % 5.8 % 5.8 % - 5.9 % EBIT 1.8 1.5 21 % 5.8 Profit before taxes 1.3 1
Slide 13: Q2 2022 | growth of net sales
Q2 2022 | growth of net sales Strong organic growth as well as growth via acquisitions Growth of net sales q2 22 vs. Q2 21, (m€), continued operations (0.3) 5.7 4.7 40.4 30.2 34% growth Q2/22 vs. Q2/21 Q2 2021 M&A Organic Growth FX Q2 2022 13
Slide 14: Electronics (continued operations)
Electronics (continued operations) Performance stable and at expected level, operational ebit at 4.4% Comments – q2 2022 Net sales and operational ebit % Q2 22 vs. Q2 21, (m€,%) * • Finnish operations (YE, Noretron, Milcon, Infradex, SSN) 10.6 % 5.2 % ▪ Stable operational performance 3.3 % 4.4 % 3.4
Slide 15: Technical trade
Technical trade Net sales grew as a result of pronius acquisition Operational ebit at 12%, outlook stable except for metal machines Comments – q2 2022 Net sales and operational ebit Q2 22 vs. Q2 21, (m€,%) • Machinery Power business 12.4 % 12.5 % 10.1 % 8.5 % ▪ Machinery’s Power business continued t
Slide 16: Heavy machines
Heavy machines Strong sales growth driven by fnb acquisition and estonian business Profitability trailing behind expectations, outlook stable Comments – q2 2022 Net sales and operational ebit Q2 22 vs. Q2 21, (m€,%) • Putzmeister business 6.5 % 5.1 % ▪ Estonia with strong performance as a result of
Slide 17: Other operations
Other operations Continued good performance although result somewhat below expectations inflation puts pressure on margins in the short-term Comments – q2 2022 Net sales Q2 22 – Q2 21, (m€) • In spite of increasing costs (e.g. fuel) ESKP’s and Vesterbacka Transport’s performance continued to be 1.2
Slide 18: Q2 2022 | net debt and equity ratio
Q2 2022| net debt and equity ratio Net debt / operational ebitda at 2,5x impacted by the classification of russian business as discontinued operations Net debt, (m€) & net debt/operational ebitda, (x) * Equity ratio, (%)* Strategic target 2-3x 2.6 X 2.6 x 2.5 X 2.5 X 1.6 x 35.9% 32.5% 35.9 37.9 27.0
Slide 19: Q2 2022 | cash flow and EPS
Q2 2022| cash flow and eps Operational Eps in par with LY, cash FLOW generation impacted by net working capital movement Earnings per share, (€)* Cash flow, (m€), includes discontinued operations 0.62 0.8 0.53 (4.9) 1.7 0.6 0.45 0.45 0.44 ** - 1.5 ( 0.3) 0.37 0.38 ( 4.9) ( 3.4) ( 6.5) ( 1.9) 0.35 (
Slide 20: Q2 2022 | cost efficiency
Q2 2022| cost efficiency Stable development of gross margin during challenging market environment Development of indirect cost ratio reflects scalability of the business model Direct cost ratio, (r12m) Indirect cost ratio, (r12m) 20.2 % 76.2 % 75.5 % 75.0 % 75.0 % 74.8 % 74.8 % 18.8 % 19.0 % 18.4 %
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