Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — Q3 2023 Earnings Presentation
36 slides from Relais Group Oyj's earnings presentation, Nov 2, 2023
Slide 1: Q3/2023 Interim Management Statement
Relais Group Plc Q3/2023 Interim Management Statement 2 November 2023
Slide 2: Presenting today
Presenting today: Arni Ekholm Thomas Ekström CEO CFO 2
Slide 3: Content
Content • Relais in brief • Business review • Financial review • Relais as an investment
Slide 4: Relais in brief
RELAIS Relais in brief
Slide 5: Net sales and EBITA Q3/2023
Net sales Q3/2023 (Q3/2022) MEUR 70.3 (64.8) +9% (in comparable xr: +14%) EBITA Q3/2023 (Q3/2022) MEUR 8.4 (7.7) +9% (in comparable xr: +15%) Net sales 1-9/2023 (1-9/2022) MEUR 203.3 (185.5) +10% (in comparable xr: +15%) EBITA 1-9/2023 (1-9/2022) MEUR 20.7 (16.8) +23% (in comparable xr: +31%) 5 Chan
Slide 6: Relais Group Growth Strategy
Relais Group Growth Strategy Growth by acquisitions Smart compounder focusing on 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 cash flow
Slide 7: Relais Group value creation model
Relais Group value creation model L D Smart compounding B UI • Sector focus N D • Competence compounding Y A • Add-on acquisitions BU • Accelerating organic growth Build great companies • Further development and professionalization of the acquired companies • Full utilization of possible synergies •
Slide 8: Strong and profitable growth supported by acquisitions
Strong and profitable growth supported by acquisitions Acquisition of: ADITA Oy Acquisition of: AutoMateriell Acquisition of: Skeppsbrons Nordic Lift A/S Strands Group AB Jönköping AB Jyväskylä Raskone Oy Ecofoss A/S Truck Center Lumise Oy S-E-T A/S STS Sydhamnens Trailer Service AB Trucknik AB Acqu
Slide 9: Relais Group companies
Relais Group companies Over thousand Technical wholesale and products professionals in 6 countries Commercial vehicle repair and maintenance
Slide 10: Business review: double-digit EBITA growth
Business review: “Double-digit EBITA growth percentage for the third quarter in a row this year*” *In comparable exchange rates
Slide 11: Technical Wholesale and Products business area
Technical Wholesale and Products business area +9% • Performance was strong especially in the Scandinavian 134.5 124.0 markets due to robust customer demand, acquisitions and the effect of price increases carried out through the Net sales, EURM year +12% 48.9 • The market situation in Finland and Ba
Slide 12: Commercial Vehicle Repair and Maintenance business area
Commercial Vehicle Repair and Maintenance business area +11% • The main growth drivers were the solid customer 68.8 61.9 demand in both Finland and Sweden combined with the effect of the efficiency measures carried Net sales, EURM out last year. +1% • The capacity utilization of the workshops was at
Slide 13: Sales by product group – Lighting
Sales by product group – Lighting +0% +6% 40.1 40.3 40.3 38.2 Net sales, EURM -8% -3% 17.0 15.6 16.1 15.6 1-9/22 1-9/23 1-9/22 1-9/23 Q3/22 Q3/23 Q3/22 Q3/23 % of group 22 20 22 20 26 22 26 22 Net sales Net sales Net sales Net sales YTD – Reported YTD – Comparable FX Quarter 3 – Reported Quarter 3 –
Slide 14: Reported sales by segment
Reported sales by segment Finland & Baltics Scandinavia +14% 110.7 +5% 92.7 97.2 88.3 Net sales, EURM +15% +1% 33.7 38.7 31.1 31.5 1-9/22 1-9/23 Q3/22 Q3/23 1-9/22 1-9/23 Q3/22 Q3/23 % of group 48 46 48 45 52 54 52 55 Net sales, YTD Net sales, Quarter Net sales, YTD Net sales, Quarter
Slide 15: Outlook 2023
Outlook 2023 • The outlook is largely dependent on external, macroeconomic and market demand factors: • Inflation, interest rates, purchase power, unemployment and layoffs • Weak SEK/EUR exchange rate • Vehicle aftermarket is defensive and less cyclical • Our inventory and resource situation is good
Slide 16: Financial review
RELAIS Financial review
Slide 17: Net sales and EBITA
Net sales and EBITA Stable and profitable growth continues Net sales EBITA MEUR MEUR +8% 80 75.2 10 +9% 1,0 73.5 69.0 70.3 70 64.8 8.4 62.1 64.1 8.0 8.0 7.7 58.7 58.6 8 7.5 0,8 60 53.5 52.1 6.2 50 6 5.7 5.7 0,6 4.8 40 4.1 30 4 3.4 0,4 20 2 0,2 10 0 0 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4
Slide 18: Gross profit and gross margin
Gross profit and gross margin Improvement despite increased sourcing costs and weak krona ½ Improved business mix MEUR MEUR 35 100 93.6 32.3 90 83.5 28.8 30 80 + Increase in gross profit and 25.7 25 67.8 gross margin despite increase 70 45.9 46.1 in sourcing costs of goods and 60 20 45.0 weak Swedis
Slide 19: Operating expenses
Operating expenses Increase mostly driven by acquisitions ½ Stable opex% during January-September 2023 MEUR MEUR 25 70 63.7 20.6 59.1 60 20 18.3 50 45.0 14.9 15 40 30 31.8 31.3 10 29.4 28.3 20 27.4 25.4 5 10 0 0 Q3 21 Q3 22 Q3 23 1-9 21 1-9 22 1-9 23 Opex Opex% Opex Opex%
Slide 20: Net working capital
Net working capital Reduced inventory levels and increased trade and other payables caused by operative efficiency improvement measures MEUR -16% MEUR 09 2023 09 2022 12 2022 67.8 69.7 70 67.1 65.0 62.7 62.6 Inventories 73.9 77,0 67.8 59.2 58.4 60 56.2 54.3 50 45.0 Trade and other receivables 42.7 3
Slide 21: Cash flow from operations and cash conversion
Cash flow from operations and cash conversion Significant increase in Jan-Sept ½ Acquisition of and investments in inventories in Q3 MEUR Q3 Jan-Sept FY 2023 2022 2023 2022 2022 MEUR -27% CF before change in NWC 12.3 11.2 32.5 26.8 38.6 20 17.2 Change in NWC -6.8 -3.3 -3.5 -9.1 -0.1 15 CF from net f
Slide 22: Cash flow summary January-September 2023
Cash flow summary January-September 2023 Significant increase in cash flow from operations Cash flow from investing Cash flow from financing Cash flow from operations activities activities EUR 22.2 (11.6) EUR -6.6 (-10.8) EUR -16.6 (-0.1) million million million + Improved profitability especially i
Slide 23: Interest-bearing net debt
Interest-bearing net debt Normal amortisation of interest-bearing loans and stable cash and liquidity Relais Group (IFRS) MEUR -5.8% MEUR 09 2023 09 2022 12 2022 160 156.5 153.3 143.5 139.3 143.9 144.4 Loans from financial institutions, l-t 91.2 100.0 95.7 139.7 142.4 140 129.9 132.4 Loans from fina
Slide 24: Net debt/LTM EBITDA
Net debt/LTM EBITDA Clear year-on-year reduction 5,5 5.0 5,0 4.8 4,5 4.3 4.2 4.1 3.9 3.8 3.9 4,0 3.6 3.5 3.5 3,5 2.9 3.0 3,0 2.6 2.7 2.6 2.4 2.3 2.5 2,5 2.2 2.1 2.1 2,0 1,5 1,0 0,5 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Net debt / LTM EBITDA Net debt (excl lease liabilities) / LTM EBITD
Slide 25: Net financials
Net financials Increase in net interest expenses offset by FX net gains in Q3 2023 MEUR Q3 Jan-Sept FY § Net interest expenses 2023 2022 2023 2022 2022 increased due to the Interest income and expenses -1.5 -0.8 -4.0 -2.1 -2.6 increase in reference interest rates on interest-bearing loans Interest e
Slide 26: Balance sheet and financial position 30.9.2023
Balance sheet and financial position 30.9.2023 The Group's balance- Net debt excl. lease TheTotal Group’s equity equity sheet total liabilities EUR 322.7 (318.8) EUR EUR 71.9 (101.3) 102.0 (63.7) EUR 87.1 (98.4) million million million million Net gearing excl. lease Equity ratio Cash assets liabili
Slide 27: Dividend for the financial year 2022
Dividend for the financial year 2022 Second instalment to be paid on 9 November • The Annual General Meeting held on 5 April 2023 decided that the dividend will be paid in two instalments • The second instalment, EUR 0.20 per share, will be paid to shareholders who, on the record date of 2 November
Slide 28: Long term financial target
Long term financial target Relais Group aims to reach a pro forma* EBITA of 50 MEUR by end of 2025 * Including latest twelve months EBITA of acquired businesses
Slide 29: Financial review – Additional slides
Financial review Additional slides
Slide 30: EBITA and comparable EBITA Q3/2023
EBITA and comparable EBITA Q3/2023 Significant improvement in euros EBITA EBITA % + Improvement in the Commercial 8.6 12.3 Vehicle Repair and Maintenance 8.4 11.9 11.9 12.2 7.7 7.9 business continued + Acquisitions made in 2022 and 2023 - Heavy competition in the spare parts market in the Technical
Slide 31: EBITA and comparable EBITA January-September 2023
EBITA and comparable EBITA January-September 2023 Significant improvement in both euros and relative terms EBITA EBITA % + Improvement in the Commercial 20.7 21.0 10.2 10.3 Vehicle Repair and Maintenance 9.7 business continued 17.9 9.1 16.8 + Acquisitions made in 2022 and 2023 - Heavy competition in
Slide 32: Net profit and EPS development Q3/2023
Net profit and EPS development Q3/2023 Improved EBIT and stable net financial items sources of improvement 4.3 4.5 6.2% 6.5% 3.7 3.9 5.7% 6.1% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Profit for the period, MEUR Profit for the period-% Comparable profit for the period, MEUR Comparable profit for the period-%
Slide 33: Net profit and EPS development January-September 2023
Net profit and EPS development January-September 2023 Improvement despite significantly increased net financial items 7.5 7.5 7.8 4.0% 3.4% 3.7% 3.8% 6.3 1-9 2022 1-9 2023 1-9 2022 1-9 2023 Profit for the period, MEUR Profit for the period-% Comparable profit for the period, MEUR Comparable profit f
Slide 34: Relais as an investment
RELAIS Relais as an investment
Slide 35: Relais as an investment
Relais as an investment • Sector focused consolidator with a long ownership perspective • Long track record of making successful acquisitions and developing our companies • Solid cash flow and profitability track record • Aftermarket is a growing, defensive market with less cyclicality • Growing veh
Slide 36: Q&A
Q&A