19 slides from Coor Service Management Holding Ab's earnings presentation, Apr 26, 2023
Slide 1: Interim report Q1 2023
Interim report Q1 2023 April 26, 2023
Slide 2: Agenda
1. Key highlights in the quarter 2. Coor’s triple bottom line Agenda 3. Financial performance 4. Sum-up and Q&A AnnaCarin Grandin, President and CEO Andreas Engdahl, CFO and IR Director
Slide 3: Agenda
1. Key highlights in the quarter 2. Coor’s triple bottom line Agenda 3. Financial performance 4. Sum-up and Q&A
Slide 4: High business activity and recovery of variable volumes
High business activity and recovery of variable volumes Important business Accelerated Growth opportunities activities sustainability efforts ahead • Focus on contract start-ups • Commitment to net zero • Strong sales pipeline across the greenhouse gas emissions by Nordics both in IFM and Single • W
Slide 5: Our M&A approach
Our M&A approach Strategic fit Financials Integration Value creation • Nordic companies • Solid finances • Full integration • Build scale • Cleaning and Property • Margin accretive • Realizing synergies • Synergies • Rationale type: • No turn-arounds • Competence • Multiple expansion • Service densi
Slide 6: Skaraborgs städ
Skaraborgs städ 800 employees • Reputable company with more than 50 years in business New geography and increased • Cleaning services density • New geography and increased density in Midwest Sweden • Value creation trough synergies and multiple expansion Multiple FY22 7x, post-synergies 6x • Long-st
Slide 7: Agenda
1. Key highlights in the quarter 2. Coor’s triple bottom line Agenda 3. Financial performance 4. Sum-up and Q&A
Slide 8: Stable development in the first quarter
Stable development in the first quarter Business responsibility Q1 2023 Q1 2022 LTM Mid-long term target 4-5% Organic Growth -1% 11% 2% Organic net sales growth over a business cycle Acquired Growth 0% 13% 6% n/a Adj. EBITA-Margin 5,1% 6,3% 5,1% ~5,5% Adj. EBITA margin >90% Cash Conversion1 95% 93%
Slide 9: Commitment to net zero by 2040
Commitment to net zero by 2040 Social and environmental responsibility Q1 2023 Q1 2022 LTM Mid-long term target Engaged and motivated employees1 N/A N/A 76 ≥70 Employee motivation index (EMI) Safe work environment2 ≤3,5 Total Recorded Injury Frequency (TRIF) 7,0 8,1 7,0 Total number of accidents x 1
Slide 10: Agenda
1. Key highlights in the quarter 2. Coor’s triple bottom line Agenda 3. Financial performance 4. Sum-up and Q&A
Slide 11: Quarterly Net Sales and organic growth
Quarterly Net Sales and organic growth 3,5 20,0% 3,1 2,9 3,0 3,0 3,0 15,0% 3 2,7 2,8 2,5 2,6 2,5 2,5 2,5 2,4 2,4 11,1% Key comments 10,0% 2,5 10,0% 2,3 2,3 2,3 9,5% • Negative organic growth in Q1 7,6% 7,8% 5,0% 2023 driven by ended contracts 2 4,8% 4,5% 5,0% in 2022 and completed large 2,6% mainten
Slide 12: Net Sales segmentation
Net Sales segmentation Turnover by Turnover by Turnover by contract type service customer segment Net Sales (LTM) 11.8 bnSEK IFM 57% Cleaning 38% Public 31% Single services 43% Property 30% Manufacturing 22% Workplace 17% Energy 15% Food & Beverage 11% IT & Telecom 10% Other 4% Real estate & Constru
Slide 13: Quarterly EBITA and margin
Quarterly EBITA and margin 200 0,1 187 180 174 172 0,09 167 160 152 153 150 153 152 0,08 140 141 140 139 140 131 0,07 127 122 6,8% 122 Key comments 120 0,06 6,2% 6,1% 6,2% 6,2% 6,0% 6,3% • EBITA and margin in line 6,0% 5,8% with previous quarter 100 5,5% 5,6% 0,05 5,2% 5,1% 4,8% 5,0% 5,1% • Normaliz
Slide 14: By geographic region
By geographic region SWEDEN DENMARK NORWAY FINLAND Share of Net Sales Share of Net Sales Share of Net Sales Share of Net Sales 53% 24% 18% 5% • Negative organic growth where • Strong organic growth from new • Negative organic growth • Negative organic growth new contracts and recovery of contract wi
Slide 15: Stable cash conversion
Stable cash conversion Cash conversion (LTM) 123% 114% 108% 105% 104% 107% 108% 100% 98% 94% 94% 98% 93% 97% 91% 94% 95% 90% Key comments Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Continued strong contribution from 2019 2020 2021 2022 2023 operations, cash conversion at 95% (LTM) in Q1 20
Slide 16: Balance sheet
Balance sheet NWC, % of Net Sales (LTM) -6,6%-5,7%-5,6%-7,5% -7,0% -7,4% -6,9%-7,6% -8,3% -8,4%-9,2% -8,4%-9,3%-8,5% -8,6%-8,4% -9,5% Key comments Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Net Working Capital as % of Net Sales 2019 2020 2021 2022 2023 (LTM) stable at around -8% • Balance
Slide 17: Agenda
1. Key highlights in the quarter 2. Coor’s triple bottom line Agenda 3. Financial performance 4. Sum-up and Q&A
Slide 18: High business activity and recovery of variable volumes
High business activity and recovery of variable volumes Growth EBITA Cash flow Sustainability Acquisitions “Continued organic “Normalized volume mix “Continued solid cash flow “Net Zero commitment by “Acquisition of Skaraborgs growth in Denmark” and large start-ups” generation and stable 2040” städ”
Slide 19: Q&A
Q&A Coor aims to create the happiest, healthiest and most prosperous workplace environments in the Nordic region We strive tirelessly to build the teams and full-service solutions that enable our customers to do what they do best