Slide 1: Interim Report Q3 Jul–Sep 2022
Interim Report Q3 Jul–Sep 2022 Andreas Stenbäck, CEO Martin Aronsson, CFO 25 October 2022 1
Slide 2: Volati is a growing group of well-managed companies with strong earnings
Volati is a growing group of well-managed companies with strong earnings +16% Volati EBITA growth LTM Net sales, LTM Q3 2022 SEK 7,544 m EBITA, LTM Q3 2022 SEK 690 m -3% ~41% +29% +37% Industry ~43% EBITA EBITA ~17% EBITA growth LTM growth LTM growth LTM1 Share of group EBITA, Share of group EBITA,
Slide 3: Track record of strong value creation
Track record of strong value creation +117% SEK 690 m During 2016 – Q3 2022 we have: SEK 318 m Distributed SEK 2.2 billon Made 30+ acquisitions Funded our growth with own cash flow EBITA, EBITA, FY 2016 LTM Q3 2022 Volati Interim Report July – September 2022 3
Slide 4: Q3 in brief - Solid result meeting high comparative figures from last year
Q3 in brief - Solid result meeting high comparative figures from last year • Solid net sales growth of +17% to SEK 1,977 million. All three business areas contributing to the growth • EBITA in line with last year, SEK 203 million compared to SEK 211 in Q3 2021 • The business areas are in different s
Slide 5: Q3 in brief - Solid result meeting high comparative figures from last year (cont.)
Q3 in brief - Solid result meeting high comparative figures from last year (cont.) • Our tied up working capital is higher than desirable. We are starting to see positive effects of our measures, which are expected to contribute to improved cash flows in the coming quarters • During the last twelve
Slide 6: Financial development, Q3 2022
Financial development, Q3 2022 +17% -4% Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 1,977 m SEK 203 m SEK 144 m 2.2 x (Q3 2021: 1,693) (Q3 2021: 211) (Q3 2021: 136) (Q3 2021: 1.4x) Net sales, SEK m EBITA, SEK m 1800 250 1600 1400 200 1200 150 1000 800 100 600 400 50 200 0 0 Q1 Q
Slide 7: Financial development, LTM Q3 2022
Financial development, LTM Q3 2022 Net sales CAGR +16% +40% 7,544 699 690 700 664 665 25% SEK m 597 (Q3 2021: 5,861) 600 20% 500 EBITA 421 15% 690 400 SEK m 312 300 (Q3 2021: 597) 257 10% 10,2% 10,5% 9,9% 9,6% 200 138 9,2% 8,6% Operating cash flow 7,6% 7,5% 5% 5,8% 398 100 SEK m 0 0% (Q3 2021: 450)
Slide 8: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is an average annual growth in The long-term target is a return on The target is a net debt/adjusted EBITDA2) EBITA2) per ordinary share of at least 15 adjusted equity2) of 20 percent1). ratio of 2 to 3 times, and
Slide 9: Three business areas with high growth focus
Three business areas with high growth focus Industry Products in builder’s hardware, Self-adhesive labels and machines for Products and solutions for companies consumables, and materials for various applications; from decorative in grain management, dampness and construction, home and garden, labels
Slide 10: Stable demand in the professional and industrial segments while cautiousness in the consumer segment increase
Stable demand in the professional and industrial segments while cautiousness in the consumer segment increase • Sales growth of 5% and EBITA decrease of 21%, vs. Q3 2021 • Still stable demand in the professional and industrial segments 41% • Increased cautiousness in the consumer segment • Effects f
Slide 11: Financial development, LTM Q3 2022
Financial development, LTM Q3 2022 CAGR +22% -3% 350 335 336 25% 326 329 316 300 265 20% 250 Net sales 15% 200 178 SEK 3,584 m 150 125 158 10% (Q3 2021: 3,140) 10,4% 10,1% 9,9% 9,8% 9,5% 100 8,8% 8,3% 7,8% 7,5% EBITA 5% 50 SEK 316 m 0 2017 2018 2019 2020 LTM Q3 LTM Q4 LTM Q1 LTM Q2 LTM Q3 0% (Q3 202
Slide 12: Strong growth fueled by acquisitions
Strong growth fueled by acquisitions • Sales growth of 25% and EBITA growth of 20%, vs. Q3 2021 • Strong underlying demand and additional pent-up demand from strike at UPM earlier in the year 17% • Low correlation between the market for labels and the general economy • Increased costs for material u
Slide 13: Financial development, LTM Q3 2022
Financial development, LTM Q3 2022 CAGR +26% +29% 25% 140 130 125 120 117 20% 20,6% 110 19,9% 101 18,7% 18,9% Net sales 100 17,1% 15% 16,6% 834 16,3% 78 15,7% 15,6% 80 SEK m (Q3 2021: 606) 60 52 10% 46 43 40 EBITA 5% SEK 130 m 20 0 0% (Q3 2021: 101) 2017 2018 2019 2020 LTM Q3 LTM Q4 LTM Q1 LTM Q2 LT
Slide 14: Industry: Solid performance driven by acquisitions and strong demand
Business area Industry Solid performance driven by acquisitions and strong demand • Sales growth of 28% and EBITA growth of 16%, vs. Q3 2021 • Strong underlying demand for the product in the business units • Diversified business with relatively low exposure to the general economy 43% • Corroventa fa
Slide 15: Financial development, LTM Q3 2022
Financial development, LTM Q3 2022 Business area CAGR Industry 450 +59% 25% +37% 400 20% 350 332 316 Net sales 300 287 280 15% 3,130 242 250 SEK m 200 9,5% 11,9% 10% (Q3 2021: 2,118) 158 11,4% 10,8% 10,8% 10,6% 150 127 98 8,5% EBITA 100 7,0% 7,2% 5% SEK 332 m 50 0 36 0% (Q3 2021: 242) 2017 2018 2019
Slide 16: Acquisitions LTM with a total annual turnover of SEK 1.0 billion, SEK 800 million YTD
Acquisitions LTM with a total annual turnover of SEK 1.0 billion, SEK 800 million YTD EBITA EBITA Industry EBITA ~43% ~41% ~17% Industry SALES Heco SALES Beneli January 2020 183 MSEK June 2020 156 MSEK SALES Pisla SALES Märkas September 2020 260 September 2020 169 MSEK Corroventa Tornum S:t Eriks MS
Slide 17: Well positioned to continue developing the platforms through acquisitions
Well positioned to continue the developing the platforms through acquisitions • Industrial buyer, growing our existing platforms through value adding add on acquisitions • Familiar with the industries we acquire within • Long term relations and dialogues ending up in transactions • Provides deal cer
Slide 18: Summary
Summary Solid development in uncertain times • EBITA in line with last year • EBITA +16% LTM per ordinary share and 40% annual growth since 2017 • ROE of 33% Delivering on our growth journey • Acquisitions the last 12 months have added annual sales of SEK 1.0 billion, SEK 800 million YTD Well positi
Slide 19: volati.
volati.