Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q4 2022 Earnings Presentation
35 slides from Relais Group Oyj's earnings presentation, Mar 2, 2023
Slide 1: Q4/2022 Interim Management Report
Relais Group Plc Q4/2022 Interim Management Report 2 March 2023
Slide 2: Presenting today
Presenting today: Arni Ekholm Pekka Raatikainen CEO CFO 2
Slide 3: Content
Content • Relais in brief • The vehicle aftermarket opportunity • Sales by segment and business area • Business review Q4/2022 • Financial review 2022 • Relais as an investment
Slide 4: Relais in brief
RELAIS Relais in brief
Slide 5: Net sales, comparable EBITDA and EBITA 2022
Net sales 2022 (2021) MEUR 260.7 (237.8) +9.6% Comparable EBITDA 2022 (2021) MEUR 39.4 (38.6) +2.1% Comparable EBITA 2022 (2021) MEUR 25.8 (28.3) -8.9% 5
Slide 6: What is Relais all about
What is Relais all about • Relais Group Plc is a consolidator and smart compounder with a sector focus on vehicle aftermarket in the Nordic region • We serve as a growth platform for our group companies and build them into great businesses • We consider the value generated during the whole vehicle l
Slide 7: Relais Group Growth Strategy
Relais Group Growth Strategy Growth by acquisitions Smart compounder: Active consolidation of the Nordic vehicle aftermarket sector Operational Organic growth excellence Faster than the market average earning growth Continuous development supported by synergies of operations to grow earnings and cas
Slide 8: Relais Group strategy defined
Relais Group strategy defined The strong earnings growth is to come from a combination of organic growth and acquisitions Organic: ▪ Faster than average market, supported by synergies (cross sales, combined purchase power) ▪ Focus on operational excellence (NWC, cash flow, systems, pricing, synergie
Slide 9: Relais Group value creation model
Relais Group value creation model Smart compounding Sector focus Competence compounding Add-on acquisitions Accelerating organic growth Build great businesses Further development of the acquired companies’ operations and capabilities Full utilization of the synergies Invest right Increase focus on e
Slide 10: Updated financial target
Updated financial target We accelerate our growth plan and aim to reach a pro forma EBITA of 50 MEUR by end of 2025 • We consider a profit target to be more relevant in describing the shareholder value creation potential of the Company, as opposed to a net sales target. • We see a large amount of po
Slide 11: Strong growth supported by acquisitions
Strong growth supported by acquisitions Acquisition of: Strands Group AB Raskone Oy Lumise Oy STS Sydhamnens Acquisition of: Trailer Service AB Skeppsbrons Trucknik AB Ecofoss S-E-T Acquisition of: ABR move to SEC Scandinavia A/S new premises Acquisition of AWIMEX TD Tunga Delar Sverige AB 261 Start
Slide 12: Relais Group companies
Relais Group companies 1,000 professionals in 6 countries Technical wholesale and products Commercial vehicle repair and maintenance
Slide 13: The vehicle aftermarket opportunity
The vehicle aftermarket opportunity
Slide 14: Vehicle aftermarket defined
Vehicle aftermarket defined Overall framework combined with the vehicle categories Pre-market Vehicle life cycle enhancement End-of-life Import and Customizing and Distribution of Maintenance Operations and Demolition Manufacturing Vehicle reselling equipping parts & equipment and repair supporting
Slide 15: Vehicle aftermarket defined
Vehicle aftermarket defined An overall vehicle life cycle framework relevant for Relais Group Vehicle life cycle enhancement Pre-market End-of-life Import and Customizing and Distribution of Maintenance Operations and Demolition Manufacturing reselling equipping parts & equipment and repair supporti
Slide 16: Vehicle aftermarket defined: why attractive
Vehicle aftermarket defined Why is the vehicle aftermarket attractive from a value creation perspective? ▪ Sweden (excl. vehicle sales) account for MEUR +17 billion in yearly turnover across +16000 companies Large, and +57 000 employees fragmented ▪ All of Nordic assessed to be 2.5x this, or MEUR +4
Slide 17: Sales by segment and business area
Sales by segment and business area
Slide 18: Reported sales by business area full year 2022
Reported sales by business area full year 2022 -2% 177.8 175.1 Net sales, EURM +43% 85.6 60.0 FY2021 FY2022 FY2021 FY2022 % of group 75 67 25 33 Technical wholesale and products Repair and Maintenance Technical wholesale and products includes spare parts, equipment, lighting and other sales.
Slide 19: Reported sales by product group full year 2022
Reported sales by product group full year 2022 -1% +43% 85.6 80.1 78.9 +0% 62.1 Net sales, EURM 61.9 60.0 -0% 33.2 33.1 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 % of group 34 30 26 24 14 13 25 33 Spare parts Lighting Equipment Repair and Maintenance Note: totals may not add up due to
Slide 20: Reported sales by segment full year 2022
Reported sales by segment full year 2022 -4% 130.9 +27% 135.6 125.0 External revenue, EURM 107.0 FY2021 FY2022 FY2021 FY2022 % of group 55 48 45 52 Finland & Baltics Scandinavia
Slide 21: Business review Q4 2022
Business review Q4 2022: Strong cash flow growth and a solid sales result
Slide 22: Q4 – Strong cash flow growth and a solid sales result
Q4 – Strong cash flow growth and a solid sales result +2.2% +5% 75.2 +2.2% Group sales growth 73.5 Group sales growth with comparable exchange rates 10.5%1 17.2 EURM Comparable EBITA-% Net cash flow from operations ▪ Organic growth in Scandinavia was +5% and -8% in Finland & Baltics, compared to rec
Slide 23: Solid sales and stabilizing profitability
Solid sales and stabilizing profitability • The sales growth was strong especially in ▪ After the challenging first half of the year, the Scandinavia. profitability of the Group started to recover • Finland faced some challenges due to weak during the third quarter consumer demand and relatively mil
Slide 24: Reported sales by product group Q4/2022
Reported sales by product group Q4/2022 -3% +22% -4% 22.6 23.6 21.9 20.7 19.9 19.4 Net sales, EURM +2% 9.3 9.5 Q4/21 Q4/22 Q4/21 Q4/22 Q4/21 Q4/22 Q4/21 Q4/22 % of group 28 29 31 27 13 13 26 31 Spare parts Lighting Equipment Repair and Maintenance Note: Excluding minor other sales
Slide 25: Buy and build strategy in action
Buy and build strategy in action • A core component of Relais Group’s strategy is the • An important part of our acquisition consolidation of the vehicle aftermarket in the Nordic region. driven strategy is also building and developing the operations of • During 2022 we felt that the market environm
Slide 26: Operational excellence
Operational excellence Operational efficiency actions as described in Impact Q3 report ▪ Program within the Finnish wholesale operations Several price increases carried out. targeting at lowering the level of net working capital and increasing the efficiency of the pricing process P NWC and pricing
Slide 27: Outlook
Outlook Outlook for 2023 We feel we are well prepared to continue the implementation of our strategy during 2023. The solid financial position of the Group is also reflected in the Board of Director’s dividend proposal of EUR 0.40 per share to be paid in two equal instalments in April and November.
Slide 28: Financial review 2022
RELAIS Financial review 2022
Slide 29: EBITA development
EBITA development 28.3 ▪ The increasing proportion 11.9% of commercial vehicle 25.7 25.8 10.8% repair and maintenance 23.0 9.9% business led to a shift in the cost structure. 8.8% ▪ Comparable APMs: Transaction costs and certain additional purchase price items of company acquisitions as well as list
Slide 30: Profit development
Profit development 17.0 ▪ In addition to the 7.1% 14.4 6.0% development of the 12.9 5.0% business, the decrease in 10.1 3.9% profit for the review period was caused by increased financial expenses from acquisition loans and leasing liabilities related to 2021 2022 2021 2022 acquisitions, as well as
Slide 31: Balance sheet and financial position
Balance sheet and financial position The Group's balance- Net debt excl. lease TheTotal Group’s equity equity sheet total liabilities EUR 309.2 (310.5) EUR EUR 71.9 (104.5) 104.0 (63.7) EUR 90.1 (84.8) million million million million Net gearing excl. lease Equity ratio Cash assets liabilities 33.6
Slide 32: Cash flow development
Cash flow development Cash flow from operations Cash flow from investments Cash flow from financing EUR 28.8 (13.2) EUR -16.2 (-55.2) EUR -10.5 (19.3) million million million ▪ During the first and second quarters ▪ Includes additional consideration for ▪ The amount of new acquisition loans cash flo
Slide 33: Summary: Relais as an investment
Summary: Relais as an investment
Slide 34: Relais as an investment
Relais as an investment Active, sector focused consolidator with a strong track record of successful acquisitions Solid cash flow and profitability track record A growing underlying market with defensive characteristics Growing lighting business with own brands Growth potential with own e- commerce
Slide 35: Q&A
Q&A