Roko Ab Class B · OMXSTO:ROKO_B
Roko Ab Class B — FY2022 Earnings Presentation
25 slides from Roko Ab Class B's earnings presentation, Feb 20, 2023
Slide 1: The Perpetual Owner – Year-end presentation 2022
The Perpetual Owner Year-end presentation 2022 20 February 2023 1
Slide 2: Financial development
Financial development MSEK 2019 2020 2021 2022 Net sales RTM1) 490 1,146 3,136 5,259 Net sales 23 614 2,083 4,316 Organic growth2) n.a. 10% 14% 12% o/w Currency exchange 0% 1% 4% EBITA RTM1) 106 219 606 1,005 EBITA -3 125 403 787 EBITA margin RTM1) 22% 19% 19% 19% Interest-bearing net debt 345 343 7
Slide 3: Business Segment Development
Business Segment Development Reported (MSEK) Q42021 Q42022 FY2021 FY2022 Change B2B Net sales 406 928 1,117 2,965 +152% EBITA 63 172 242 574 +137% B2C Net sales 271 341 906 1,351 +49% EBITA 61 56 190 256 +35% Group HQ Costs -9 -14 -29 -43 +34% Group EBITA 115 215 403 787 +96% Source: Company informa
Slide 4: Röko characteristics
Röko characteristics • Röko is a sector agnostic serial acquirer with focus on ― High margins ― Consecutive earnings growth • Röko invests in founder-owned and family businesses • Local management remains or becomes shareholders in their companies – local ownership average 30% Source: Company inform
Slide 5: Lifco's development since IPO in 2014
Lifco’s development since IPO in 2014 EBITA (MSEK) 2014 2022 Growth multiple Dental 543 1,017 1.9x Demolition & Tools 288 1,607 5.6x System Solutions 211 2,184 10.4x • Sector agnostic serial acquirers have demonstrated higher growth potential than sector focused Source: Lifco annual report 2014 and
Slide 6: Investment criteria
Investment criteria Continuous profit x x x x x x x x x x x x x x x x x x x x x x growth1) EBITA margin >10 % x x x x x x x x - x x x x x x x x x x x x x Management in place2) - x x x x - - x x x x x x x x x x x x x x x Market leader in a - x x x x x x - x x - x - x - - x - x x x x niche CapEx <5 %
Slide 7: Acquisitions since June 2019
Acquisitions since June 2019 Acquired net sales per year has increased since 2019.. ..and with a steady increase in the size of acquired companies 1,997 281 1,684 222 137 549 76 458 2019 2020 2021 2022 2019 2020 2021 2022 Acquired net sales(1) Average company size (2) Source: Company information Not
Slide 8: Portfolio company characteristics
Portfolio company characteristics Management age structure (CEO, years old)1) Organic growth ’221,2) Geographies1) <45 6 <0% 3 UK 7 45-60 15 0-10% 9 Denmark 5 >60 1 >10% 10 Norway 4 Sweden 4 Netherlands 2 Source: Company information Note: 1) As of December 2022; 2) Based on financials from managemen
Slide 9: Key investment highlights
Key investment highlights • Highly experienced acquisitive management team • Stringent investment criteria safeguarding quality investments • Perpetual ownership and decentralised structure is very attractive to private family businesses • The diversified portfolio of European companies creates a ve
Slide 10: Increased commitments with MSEK 1,079 in 2022 and shareholder approval for new share issue
Increased commitments with MSEK 1,079 in 2022 and shareholder approval for new share issue of up to MSEK 1,000 in 2023 or 2024 • More than the MSEK 2,700m in initial capital has been invested and in Q2 2022, the committed capital was increased by 40% to SEK 3,776m through a unanimous shareholder dec
Slide 11: Röko 2030?
Röko 2030? EBITA development SEKm Lifco EBITA1) 4,662 Röko EBITA RTM2) 3,709 2,702 2,523 2,168 1,732 1,377 1,186 1,005 631 715 692 412 453 511 280 305 998 606 106 219 Lifco year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Röko year 2019 2020 2021 2022 2023 20
Slide 12: Financial targets
Financial targets Growth Achieve EBITA growth each year (excluding the impact of acquisitions) Profitability EBITA margin of more than 15% Capital structure Net debt1) in relation to EBITDA RTM2) should be below 3.0x. The net debt may temporarily exceed the target as a result of acquisitions
Slide 13: Appendix
ROKO Appendix
Slide 14: Cash flow and capital efficiency
Cash flow and capital efficiency Cash flow from operations and cash conversion Capital employed and ROCE SEKm Q4 2021 Q4 2022 FY 2022 SEKm FY 2021 FY 2022 Operating cash flow 46 210 515 Equity 1,991 3,653 EBITA 115 215 787 Interest-bearing debt 1,087 2,109 Cash conversion1) 40% 98% 65% Leasing 316 5
Slide 15: KPIs
KPIs SEKm FY 2021 FY 2022 Change Net sales 2 083 4 316 107% Net sales RTM1) 3 136 5 259 68% EBITA 403 787 95% EBITA margin, % 19% 18% -1 p.p EBITA RTM1) 606 1 005 66% EBITA RTM1) margin, % 19% 19% -0 p.p EBITDA 462 902 95% EBITDA margin, % 22% 21% -1 p.p Capital employed 4 259 7 909 86% Return on ca
Slide 16: Profit and loss statement
Profit and loss statement Full-year SEKm 2019 2020 2021 2022 Net sales 23 614 2,083 4,316 Cost of goods and services sold -15 -310 -1,293 -2,668 Gross profit 8 304 790 1,648 Sales and marketing expenses -5 -109 -203 -474 Administrative expenses -4 -98 -248 -482 Other operating income and expenses -9
Slide 17: Balance sheet
Balance sheet Dec-31 Dec-31 SEKm 2019 2020 2021 2022 SEKm 2019 2020 2021 2022 ASSETS EQUITY AND LIABILITIES Fixed assets Equity Intangible assets 955 1,506 3,984 7 339 Equity attributable to Röko’s shareholders 350 719 1,991 3,653 Tangible assets 197 251 506 747 Total equity 350 719 1,991 3,653 Othe
Slide 18: Cash flow statement
Cash flow statement Full-year SEKm 2019 2020 2021 2022 Operating activities Operating profit -11 89 312 612 Adjustment for non-cash items 2 44 107 262 Net financial items -1 -14 -26 -67 Paid tax 0 -40 -86 -189 Cash flow from operating activities before changes in working capital -10 79 307 618 Cash
Slide 19: Acquisitions since 2019
Acquisitions since 2019 Year Company Description Segment Country Net Sales Acquired net assets(1) Arboritec Manufacturer of floor finishes B2B Sweden 30 MSEK Hot Screen Heat transfer (textile printing) manufacturer B2B Sweden 94 MSEK Addedo VAR and consultant focused on consolidation software B2B Sw
Slide 20: Overview of acquisitions
Overview of acquisitions Röko has made 22 platform acquisitions to date Year Company Description Business area Country Ownership1) Net sales at acquisition2) Segment split – no. of Companies 3) H2 2019 Arboritec Varnish and floor maintenance products B2B Sweden 67% SEK >30m H2 2019 Hot Screen Heat t
Slide 21: Board of Directors – all Directors are shareholders in Röko
Board of Directors – all Directors are shareholders in Röko Tomas Billing Previous experience: CEO Nordstjernan, CEO Hufvudstaden, Chairman NCC. Education: MSc in Business Administration (SSE), Chairman and co-founder Scholarship to Luther College, USA, Other engagements: Co-owner and board member H
Slide 22: The Röko team – all full-time employees are shareholders in Röko
The Röko team – all full-time employees are shareholders in Röko Previous experience Education Type Started Tomas Billing1) CEO Nordstjernan, CEO MSc in Business Administration (SSE), Full-time 2019 Chairman and co-founder Hufvudstaden, Chairman NCC Scholarship to Luther College, USA assignment Fred
Slide 23: Ownership structure
Ownership structure The A/B-share structure will remain at IPO Overview of Röko’s largest shareholders and management’s shareholdings Number of A1) Number of B Commitment Person / Company shares shares Share of A shares Share of B shares Share of votes (SEKm) (thousands) (thousands) Trift Capital II
Slide 24: Disclaimer
Disclaimer The Manager have not conducted any independent review or verification of the information in the Presentation and although efforts have been made to accurately describe Röko, the Manager disclaims any and all liability for the content being correct, accurate and complete. In addition to in
Slide 25: The Perpetual Owner
ROKO The Perpetual Owner