Alligo Ab Class B · OMXSTO:ALLIGO_B
Alligo Ab Class B — Q4 2023 Earnings Presentation
36 slides from Alligo Ab Class B's earnings presentation, Feb 16, 2024
Slide 1: Year-End Report Q4 2023
Year-End Report Q4 2023 1 October–31 December Friday, February 16, 2024 1
Slide 2: Presenters
Presenters Clein Johansson Ullenvik Irene Wisenborn Bellander Group President & CEO CFO 2
Slide 3: Agenda
AGENDA • This is Alligo • Highlights Q4 2023 • Update logistics – Örebro (SE) and Vestby (NO) • Financials • Summary and outlook • Q&A
Slide 4: Alligo – a leading player in workwear, personal protection, tools and supplies in the Nordic region
Alligo – a leading player in workwear, personal protection, tools and supplies in the Nordic region Swedol Tools Grolls 9,335 2,443 210 Finland: 41 stores** MSEK Revenue* Employees* Stores* Main concept brands Norway: 57 stores Sweden: 112 stores *FY 2023 ** Including 2 stores in Estonia 4
Slide 5: The origins of Alligo
The origins of Alligo The mail order Components & company Swedol Services (Momentum is established in Swedol is Group) is distributed Tyresö, Sweden. Swedol begins store listed on Momentum Group to shareholders and expansion phase with Nasdaq changes name to separately listed on 11 new stores Stockh
Slide 6: Alligo at a glance
Alligo at a glance Revenue EBITA Revenue per geographic area 2023 per geographic area 2023 per brand category 2023 Total revenue: MSEK 9,335 (9,211) Total adj EBITA: MSEK 827 (8.9%) Share of own brands 16% 4% 19% 19% 77% 26% 58% 81% Own brands External brands Sweden Norway Finland Sweden Norway Finl
Slide 7: Alligo at a glance
Alligo at a glance • Nordic main markets – annual revenue of approximately SEK 59 billion • Customers – a combination of small and Manufacturing Construction Industry Public Sector Transport & Storage medium-sized enterprises (SME), large industrial companies and the public sector all within eight d
Slide 8: Agenda
AGENDA • This is Alligo • Highlights Q4 2023 • Update logistics – Örebro (SE) and Vestby (NO) • Financials • Summary and outlook • Q&A
Slide 9: Q4 business conditions
Q4 business conditions Market Proactive Delivery Macro- situation management capacity economic factors • Continued weak • Cost reductions • Good and stable • Accelerated market development • Price adjustments downturn in the in Sweden and - Sensitive categories business cycle Finland • Geopolitical
Slide 10: Q4 in brief
Q4 in brief – Strong cash flow and increased profitability despite weaker demand • Revenue decreased -6.8 % to MSEK 2,538 (2,723) • Adjusted EBITA increased by 3 % to 308 MSEK (298) - 6.8 % Revenue • Improved operating cash flow MSEK 526 (417) ̶ Still high inventory levels, but positive trend • Sign
Slide 11: 2023 – Six acquisitions signed, adding MSEK in annual revenues
2023 – Six acquisitions signed, adding 330 MSEK in annual revenues – as well as 80 employees and 8 stores Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Kitakone Oy Workwear/Tools April 2023 34 8 1 Topline AB (70%) Workwear/Profile Clothing/Product Media May 2023 6
Slide 12: Increased share of own brands and SME customers in 2023
Increased share of own brands and SME customers in 2023 Sweden Norway Finland SALES PER CHANNEL SALES PER CHANNEL SALES PER CHANNEL ≈ 10% (5%) ≈ 53% (55%) ≈ 75% (80%) Product media ≈ 66% (70%) ≈ 47% (45%) Direct sales ≈ 25% (20%) Direct sales Store channel* Store channel incl web Store channel incl
Slide 13: Building a stronger Alligo Group
Building a stronger Alligo Group Swedol, 2013–2019 Alligo, 2019–2023* MSEK MSEK % % 4000 12 10000 Merge of Swedol 12 Acquisition and Tools of Grolls 10 10 8000 3000 8 8 6000 2000 6 6 4000 4 4 1000 2000 2 2 0 0 0 0 2013 2014 2015 2016 2017 2018 2019 2017 2018 2019 2020 2021 2022 2023 Revenue, MSEK EB
Slide 14: Agenda
AGENDA • This is Alligo • Highlights Q4 2023 • Update logistics – Örebro (SE) and Vestby (NO) • Financials • Summary and outlook • Q&A
Slide 15: Alligo’s integrated Nordic logistics function
Alligo’s integrated Nordic logistics function – increased storage capacity, improved efficiency and logistical offer Skedsmokorset Fully relocated to Vestby Q1/2024 = Centres currently under relocation or previously relocated/discontinued Rosenholm Fully relocated to Vestby Q2/2024 Stavanger Kotka F
Slide 16: Vestby
Vestby – Relocation of Norwegian logistic centers on-going • Increased capabilities, improved efficiency and customer service ̶ New modern premises of 16,000 sqm ̶ Good logistical location – well situated near highways and freight terminals ̶ Capacity for future expansion opportunities • Move from S
Slide 17: Örebro
Örebro – Successful launch of extended automation • Streamlining the packaging process ̶ Increased automation to minimise indirect handling • Improved working environment • Saves time and improved delivery ̶ To customers and our own stores • Improved and standardised quality • Autostore – current ca
Slide 18: Agenda
AGENDA • This is Alligo • Highlights Q4 2023 • Update logistics – Örebro (SE) and Vestby (NO) • Financials • Summary and outlook • Q&A
Slide 19: Improved profitability in a weaker market
Improved profitability in a weaker market – Strong gross margin and reduced cost base Revenues and EBITA Highlights Q4 2023 2022 2023 2022 • Revenue decreased by -6.8 % MSEK Oct-Dec ∆, % Oct-Dec Jan-Dec ∆, % Jan-Dec ̶ Organic growth of -7.5 % ̶ Acquisition-driven growth of 3,0 % Revenue 2,538 -6.8 2
Slide 20: Q4 – Norway: Increased profitability; Sweden and Finland: weak volumes
Q4 – Norway: Increased profitability; Sweden and Finland: weak volumes Sweden Norway Finland MSEK % MSEK % MSEK % 500 6 1750 18 800 10 1500 15 400 4 600 8 1250 12 300 2 1000 6 9 400 200 0 750 4 500 6 100 -2 200 2 250 3 0 -4 0 0 0 0 Q4 2021 Q4 2022 Q4 2023 Q4 2021 Q4 2022 Q4 2023 Q4 2021 Q4 2022 Q4 2
Slide 21: Improved operating cash flow in Q4 and for the full year
Improved operating cash flow in Q4 and for the full year Q4 Operating activities Q1-Q4 Operating, investing and financing activities • Seasonally the strongest quarter • Investing activities • Operating cash flow amounted to 526 MSEK (417) ̶ E-commerce solutions, service concepts, store modification
Slide 22: Strong financial position
Strong financial position Overview of the financial position Highlights 31 Dec 31 Dec • Ratio of net operational liabilities to MSEK 2023 2022 EBITDA (excl. IFRS 16) of 1.6 Non-current interest 2,624 2,410 bearing liabilities • Cash and unutilized granted credit facilities Current interest 398 352 o
Slide 23: Solid performance in 2023 in relation to Financial Targets
Solid performance in 2023 in relation to Financial Targets 23
Slide 24: Performance 2023 in relation to Sustainability Targets
Performance 2023 in relation to Sustainability Targets 24
Slide 25: Agenda
AGENDA • This is Alligo • Highlights Q4 2023 • Update logistics – Örebro (SE) and Vestby (NO) • Financials • Summary and outlook • Q&A
Slide 26: Q4 in summary
Q4 in summary • Strong cash flow and increased profitability in a weaker market • Improved operating cash flow ̶ Inventory reduction actions yield positive results • Strengthened competitiveness, by continued focus on ̶ Price- and cost adjustments ̶ Supplier negotiations ̶ Sales and assortment manag
Slide 27: Three overarching themes for 2024
Three overarching themes for 2024 Get on track Make our Improve with growth people collaboration and margins grow and processes in all parts of our business 27
Slide 28: Outlook 2024
Outlook 2024 • Alligo is well-positioned in a weaker market • Focus on driving sales, developing our offer and streamline our processes ̶ Brand consolidation and roll-out of own brands ̶ Refining our sales work • Increase the share of SME • Decrease inventory levels – improve capital efficiency • Ad
Slide 29: Alligo
29 ALLIGO
Slide 30: Appendix
APPENDIX 30
Slide 31: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Attractive Scalable Own brands Sustainability A leader market growth platform is and services as an in the and resilient a foundation increase integrated consolidation customer for continued competitiveness part of the of the segments growth and profitabili
Slide 32: Revenue bridge fourth quarter 2023
Revenue bridge fourth quarter 2023 Revenue year-on-year Q4 -6,8% 2 723 -7.5% 3.0% 2 538 -0.9% -1.4% Revenue Comparable Currency Number of Other Revenue Q4 2022 stores in local effects working days units Q4 2023 currency 32
Slide 33: 2023 – Increased profitability in Norway and stable profitability in Sweden
2023 – Increased profitability in Norway and stable profitability in Sweden Sweden Norway Finland MSEK % MSEK % MSEK % 5000 12 3000 8 2000 6 4000 10 2500 6 1500 8 2000 4 3000 1000 6 1500 4 2000 1000 2 4 2 500 1000 2 500 0 0 0 0 0 0 2021 2022 2023 2021 2022 2023 2021 2022 2023 Revenue, MSEK Adj.EBITA
Slide 34: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2023 2022 2023 2022 MSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec IFRS 16 effects on cash flow from operations 121 84 365 364 IFRS 16 effects on cash flow from financing activities -121 -84 -365 -364 34
Slide 35: 2022 – Nine acquisitions signed, adding MSEK in annual revenues
2022 – Nine acquisitions signed, adding 400 MSEK in annual revenues – as well as 115 employees and 13 stores Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Liukkosen Pultti Oy Workwear/Tools Feb 2022 47 12 1 Industrial Components/Tools/ Lunna AS Workwear/Protective
Slide 36: Read more: alligo.com/en/report/year-end-report-2023/
Read more: alligo.com/en/report/year-end-report-2023/