Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — IPO Roadshow (October 2019)
53 slides from Relais Group Oyj's IPO roadshow presentation, October 2019
Slide 1: Relais Group Plc – Investor presentation
Relais Group Plc – Investor presentation October 2019 This presentation is not a prospectus in the meaning referred to in the Securities Markets Act (764/2012) and Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securitie
Slide 2: Important information
Important information This presentation does not seek to provide comprehensive information or information that is sufficient for making an investment decision, and investment decisions cannot be made based on the presentation or the information included in it. The information disclosed herein may ch
Slide 3: Agenda
1 This is Relais Page 4 2 Key investment highlights Page 11 3 Business overview Page 21 4 Financial information Page 28 5 Initial public offering Page 35 6 Summary and Q&A Page 39 A Appendix Page 41
Slide 4: This is Relais
1 2 3 4 5 6 7 This is Relais
Slide 5: Relais Group is an importer and technical wholesaler of vehicle electrical equipment
Relais Group is an importer and technical wholesaler that actively develops its vehicle electrical equipment and spare parts business operations in the Nordic and Baltic countries
Slide 6: Leading player in the Nordic and Baltic independent vehicle aftermarket
Relais is one of the leading players in the Nordic and Baltic independent vehicle 1 aftermarket Reported key figures Pro forma key figures 2018 Our Companies Stock keeping units 2018 illustrating ABR/Huzells acquisition over 150,000 Net sales 2018 Pro forma net sales 2018 Customers 72.5 EURm 119.3 E
Slide 7: Focus on the most attractive sector – the aftermarket
We consider the value generated during the whole vehicle life cycle and are focused on 1 the most attractive sector – the aftermarket Pre-market Aftermarket – vehicle life cycle enhancement End-of-life National Customising Local sales of Import and wholesale of Service and Demolition Manufacturing a
Slide 8: Relais as a truly independent player in the aftermarket
Relais has established itself as a truly independent player in the aftermarket space, 1 allowing for excellent relationships with both suppliers and customers Scale enables purchasing directly from global parts manufacturers Large range of SKUs enables next-day delivery to customers Sales through on
Slide 9: Relais has grown profitably to a truly Nordic player
Relais has grown profitably to a truly Nordic player 1 Net sales and profitability 2016-2018, EURm1 Geographical split of net sales Pro forma comparable operating profit (EURm)2, 3 Finland Sweden Other Pro forma comparable EBITA (EURm)2, 3 Operating profit (EURm) 119.3 EBITA2 (EURm) 13 % 8% Net sale
Slide 10: We have created a platform for profitable growth
We have created a platform for profitable growth 1 ▪ New product categories Organic growth ▪ New customers ▪ Cross sales ▪ Actively managed pipeline Acquisition ▪ Target acquisitions with high value creation and good strategic fit driven growth ▪ Company has identified several potential targets ▪ Re
Slide 11: Key investment highlights
1 2 3 4 5 6 7 Key investment highlights
Slide 12: One of the leading actors in the Nordic and Baltic vehicle independent aftermarket
One of the leading actors in the Nordic and Baltic vehicle 1 independent aftermarket Focus on mission critical niche parts, which increase safety 2 and utilisation rate of vehicle Utilisation of state-of-the-art, inhouse developed core digital 3 tools 4 Operative efficiency 5 Market drivers with def
Slide 13: Largest operators in the Nordic and Baltic independent aftermarket
1 One of the leading actors in the Nordic and Baltic vehicle independent aftermarket 2 Largest operators in the Nordic and Baltic vehicle independent aftermarket1 16.0 % Broman Group 14.0 % T. Hansen Average EBITDA-% 2014-2018 12.0 % Mekonomen 10.0 % Koivunen Average 8.0 % 6.0 % KGK Carl Christensen
Slide 14: Focus on mission critical niche parts
2 2 Focus on mission critical niche parts, which increase safety and vehicle utilisation rate Selected products Rationale Key to success Relais delivers the right Auxiliary and alarm part, in the right place, at lighting the right time ▪ Safety Spearhead ▪ Maximisation of utilisation rate products S
Slide 15: State-of-the-art, in-house developed core digital tools
3 Utilisation of state-of-the-art, inhouse developed core digital tools 2 1 Value added in-house data processing 7.8 million pages loaded in 20181 2 Easy to access, modern digital portals “Part” 1.4 million key-word searches in 20181 3 Identification based on vehicle registration number ABC123 0.5 m
Slide 16: Operative efficiency – Focusing on import and wholesale
4 Operative efficiency – Focusing on import and wholesale enables efficient operations 2 Personnel expenses, % of net sales Net sales per employee, EURk 30% 600 500 25% 400 20% 300 15% 200 10% 100 2016 2017 2018 2016 2017 2018 Source: Companies’ financial statements, consolidated figures are used, w
Slide 17: Market drivers – Technological development driving market growth
5 Market drivers with defensive characteristics – Technological development driving 2 market growth Hybridized drivetrain Rain sensing wipers Electric motor Amount and Automatic AC Dual-clutch transmission complexity of vehicle Pre-collision systems electronics has On-board computers Blind spot Elec
Slide 18: Market drivers – Number of vehicles, mileage and age distribution
5 Market drivers with defensive characteristics – Number of vehicles, mileage and age 2 distribution Number of vehicles1 Vehicle kilometres per year1 Age distribution of passenger cars, end of 2017 7% 4% 5.5 million (2018) 84 billion (2018) 20% 10% 12% 24% 5% 31% 13% 40% 1.6% (CAGR 2010-2018) 1.2% (
Slide 19: Track record of strong profitable growth organically and inorganically
6 Track record of strong profitable growth both organically and inorganically 2 Market entry/ M&A AWIMEX acquired, Startax Latvia and 2019: Combination with Other milestone Lithuania established ABR and Huzells Net sales1 (EURm) Acquisition of Maskin-Teknisk AS Extension of logistics centre Acquisit
Slide 20: Qualified and experienced management and employees
7 Qualified and experienced management and employees 2 Board of Directors Management Team Kari Stadigh, M.Sc. (Eng.), B.Sc. (BA.) (b. 1955, Finnish) Arni Ekholm, M.Sc. (Int. Marketing) (b. 1964, Finnish) Chairman of the Board of Directors ▪ Chief Executive Officer since 2015 ▪ Board member: Nokia, M
Slide 21: Business overview
Ehdottoman luottamuksellinen 1 2 3 4 5 6 7 Business overview
Slide 22: Procurement, logistics and geographical presence
Procurement, logistics and geographical presence 3 Procurement Sundbyberg ▪ Central negotiation of 6 Office and logistics center Lempäälä purchases with suppliers – approx. 7,100 sqm. 1 Office and logistics center Local purchasers operate Huddinge approx. 16,200 sqm. independently within negotiated
Slide 23: Wide selection of strong own brands and global leading brands
Servicing customers with wide selection of strong own brands and global leading 3 brands A selection of strong own brands A selection of global leading brands Spare parts Equipment 23
Slide 24: Wide range of SKUs – Strong cash flow over the year
Wide range of SKUs is in the core of Relais’ business – Strong cash flow over the year 3 Inventories and net working capital Free cash flow and cash conversion Inventories, EURm Net working capital, EURm Free cash flow, EURm Cash conversion % 43 45 7.3 6.8 6.1 29 30 87% 26 26 27 27 76% 70% 55% 2.0 0
Slide 25: Relais responds to the needs of a large customer base
Relais responds to the needs of large customer base with reliability, quick deliveries and 3 agility Customer needs Relais’ solutions Product availability and 1 Quick deliveries assortment ▪ Wide selection enables quick deliveries ▪ Products are often needed immediately – Delay in delivery Accurate
Slide 26: Market development in the Nordics and Baltics
Market development in the Nordics and Baltics 3 Total (approx.) Market driver Development in Vehicle parc 5.5 4.2 3.3 3.2 3.0 19 Basis for the demand for recent years5 (millions)1 spare parts and equipment Growth Use of vehicles 84 50 46 N/A 51 >230 More use – more spare Stable/varies (bn vehicle km
Slide 27: Shareholders
Shareholders 3 Shareholder Role % of shares Shares and option rights 1. Ari Salmivuori 46.8 1 ▪ The number of outstanding shares is 13 508 750 2. Nordic Industry Development AB Jesper Otterbeck, member of BoD 32.4 3. Ajanta Oy2 12.7 ▪ The company has granted option rights to certain key 4. Kari Stad
Slide 28: Financial information
1 2 3 4 5 6 7 Financial information
Slide 29: Strategy
Strategy 4 Relais aims to continue growing at an average pace exceeding the market growth, which is supported by targeted synergies, e.g. cross-sales between the existing and acquired entities Relais aims to create customer value through Relais’ comprehensive product range, digital platform and supe
Slide 30: Financial targets and dividend policy
Financial targets and dividend policy 4 Growth: Relais aims to double its turnover in five years. The Company aims to grow through a combination of organic growth and acquisitions. ▪ Organic growth: The company targets to continue growing at an average pace exceeding the market growth, which is supp
Slide 31: Financial guidance 2019
Financial guidance 2019 4 Outlook 2019: Relais provides a financial guidance for the six month period of July 1, 2019 to December 31, 2019. This period includes the full impact of the ABR/Huzells transaction. Due to certain degree of seasonality in the Company’s business, the Company has typically g
Slide 32: Net sales
Net sales 4 Reported net sales, EURm1 Pro forma net sales, EURm2 119.3 72.5 58.9 60.4 56.7 37.7 33.7 3 3 3 2016 2017 2018 1-6/18 1-6/19 2018 1-6/19 Notes: 1Current Relais Group Plc (previously SX-Holders Oy) has prepared its consolidated financial statements for the first time for the period ending
Slide 33: Operating profit and EBITA
Operating profit and EBITA 4 EBITA Pro forma comparable operating Reported operating profit and EBITA, EURm1 guidance, profit and EBITA, EURm2 EURm EBITA, EURm Operating profit, EURm 16.9 8.5 9.0 8-10 8.1 8.4 3 6.8 6.8 6.13 5.7 3 3.5 3.9 2.9 2.2 2.2 2016 2017 2018 1-6/18 1-6/19 2018 1-6/19 7-12/19E
Slide 34: Pro forma key figures
Pro forma key figures 4 Unaudited EURm (FAS), unless otherwise indicated 2018 1-6/19 Net sales 119.3 56.7 Net sales 2018 Gross Profit share of net sales 42.0 35.2 % 19.2 33.9 % 119.3 EURm Comparable EBITDA 17.3 7.0 share of net sales 14.5 % 12.3 % Comparable EBITA 2018 Comparable EBITA 16.9 6.8 shar
Slide 35: Initial public offering
Strictly private & confidential 1 2 3 4 5 6 7 Initial public offering
Slide 36: Key information about the IPO (1/2)
Key information about the IPO (1/2) 5 Size of the offering Approximately 30.0 million euros Proceeds for the company Approximately 20.0 million euros (gross before expenses relating to the IPO)1 Number of new shares 2 705 000 pcs. Share sale 1 350 000 pcs. Institutional offering 3 135 000 shares (ap
Slide 37: Key information about the IPO (2/2)
Key information about the IPO (2/2) 5 Aurator Asset Management, Oma Savings Bank and Finnish Industry Investment have Cornerstone investors submitted their pre-commitments, amounting to a total of approximately 6.0 million euros The objective of the contemplated IPO and Listing is to enable Relais t
Slide 38: Important dates
Important dates 5 4 Oct. 15 Oct. Subscription period for the institutional Prospectus available in electronic form 2019 2019 offering ends (on or about) 12.00 Finnish time 7 Oct. Subscription period begins at 10.00 Finnish 16 Oct. The result of the IPO will be announced (on 2019 time 2019 or about)
Slide 39: Summary and Q&A
Strictly private & confidential 1 2 3 4 5 6 7 Summary and Q&A
Slide 40: One of the leading actors in the Nordic and Baltic vehicle independent aftermarket
One of the leading actors in the Nordic and Baltic vehicle 1 independent aftermarket Focus on mission critical niche parts, which increase safety 2 and utilisation rate of vehicle Utilisation of state-of-the-art, inhouse developed core digital 3 tools 4 Operative efficiency 5 Market drivers with def
Slide 41: Appendix
1 2 3 4 5 6 A Appendix
Slide 42: Summary of risk factors
Summary of risk factors A What are the key risks that are specific to the issuer? What are the key risks that are specific to the securities? ▪ Relais is exposed to macroeconomic and other macro trends that could ▪ The Shares of the Company have not been traded on any regulated reduce demand for its
Slide 43: Group structure
Group structure A Group structure1 Relais Group Plc Startax Relais Group Startax Startax Maskin- Sweden AB Finland Oy Sweden AB Teknisk As AWIMEX Aktiebolaget Startax AS International Reservdelar AB (70%) Huzells i Karlstad Aktiebolag Startax Latvia SIA 1Significant subsidiaries. Ownership 100% if n
Slide 44: Key figures, reported
Key figures, reported A Unaudited Unaudited EURm (FAS), except percentages 2016 2017 2018 1-6/18 1-6/193 Net sales 58.91 60.41 72.51 33.7 37.7 Net sales growth, % N/A 2.6 % 19.9 % N/A 12.1 % Gross Profit 20.4 20.9 24.3 11.3 12.4 share of net sales 34.6 % 34.6 % 33.6 % 33.6 % 32.8 % EBITDA 9.0 8.3 8.
Slide 45: Pro forma income statement (unaudited)
Pro forma –income statement (unaudited) A Unaudited EUR thousand 1-6/19 2018 NET SALES 56,671 119,259 Other operating income 265 556 Materials and services Materials, supplies and goods Purchases during the period - 38,805 - 79,324 Increase/decrease in inventories 1,356 2,076 External services - 15
Slide 46: Reported income statement
Reported income statement A Six months ended June 30, Year ended December 31, 2019 2018 2018 2017 2016 FAS, (EUR thousands) (unaudited) (audited) Net sales 37,720 33,657 72,452 60,442 58,908 Other operating income 210 163 367 212 46 1 Materials and services - 25,353 - 22,342 - 48,136 - 39,500 - 38,5
Slide 47: Reported balance sheet
Reported balance sheet A June 30 December 31 June 30 December 31 2019 2018 2017 2016 2019 2018 2017 2016 FAS, (EUR thousands) (unaudited) (audited) FAS, (EUR thousands) (unaudited) (audited) Non-current assets Equity Immaterial rights 151 164 167 72 Share capital 3 3 10 3 Goodwill 55,648 4,947 6,976
Slide 48: Reported cash flow statement
Reported cash flow statement A Six months ended June 30, Year ended December 31, 2019 2018 2018 2017 2016 FAS, (EUR thousands) (unaudited) (audited) Cash flow used in/ from operations - 2,493 960 3,383 5,465 3,710 Cash flow used in investing activities - 61,732 - 889 - 941 - 6,057 - 700 Cash flow fr
Slide 49: Calculation of Pro forma key figures
Calculation of Pro forma key figures A Gross profit1 = Net sales – Materials and services EBITDA1 = Operating profit + Depreciation, amortisation and impairments EBITA1 = Operating profit + amortisation of consolidated goodwill Items affecting comparability included in operating profit = Material it
Slide 50: Calculation of key figures
Calculation of key figures A EBITA1 = Operating profit + amortisation of consolidated goodwill EBITDA1 = Operating profit + depreciation, amortisation and impairments Gross profit = Net sales - materials and services Items affecting comparability included in profit = Items affecting comparability in
Slide 51: Reconciliation of pro forma key figures
Reconciliation of pro forma key figures A 1 Jan –30 Jun 1 Jan –31 Dec 1 Jan –30 Jun 1 Jan –31 Dec 2019 2018 2019 2018 (EUR thousand) Pro forma total Pro forma total (EUR thousand) Pro forma total Pro forma total OPERATING PROFIT 2,931 7,788 Items affecting comparability Items affecting comparability
Slide 52: Reconciliation of reported key figures
Reconciliation of reported key figures A Six months ended June 30, Year ended December 31, 20192 2018 2018 2017 2016 (unaudited, unless otherwise (unaudited) indicated) Former Former Relais Relais (EUR thousand, unless otherwise indicated) Relais Relais Relais Group Group Net sales 37,720 33,657 72,
Slide 53: RELAIS
RELAIS