Slide 1: MEKO January – December 2024
MEKO January – December 2024 February 13, 2025
Slide 2: 2024 – We continue to build a stronger MEKO
2024 – We continue to build a stronger MEKO All time high for adjusted EBIT – up 13 percent compared to 2023 Solid financial position – leverage well within the target range Stronger cash flow thanks to improved results and favorable working capital development The Board proposes a dividend of SEK 3
Slide 3: Intense launch year 2025 – preparations according to plan
Intense launch year 2025 – preparations according to plan • Denmark: New central warehouse, automated • Ten times increase in orderline handling/worker • Keys will be handed over at the end of February Move-in starts within 14 days • Operational in Q2 3
Slide 4: On schedule in Norway
On schedule in Norway • New central warehouse, automated • Strategically located near Oslo • Expected 100 percent productivity gain/worker • Keys will be handed over tomorrow Largest new-built Autostore facility in Norway 4
Slide 5: On schedule in Finland
On schedule in Finland • Renovated central warehouse, automated • Strategically located in Helsinki • Efficiency expected to increase 80 percent • Will start to be used in February 65 000 bins in the system 5
Slide 6: Strengthened Board of Directors
Strengthened Board of Directors - Jörn Werner o Extensive experience from the automotive aftermarket o Former CEO of several large companies within trade and industry - Marie Björklund o Deep expertise within finance and auditing o CFO at Knowit, listed on Nasdaq Stockholm 6
Slide 7: Solid development in the fourth quarter
Solid development in the fourth quarter Comparably strong quarter in a weak market – limited Group organic growth Gross margin improvement - driven by most business areas Robust adjusted EBIT development, while EBIT comparison affected by one-time effects 12M 12M SEK M Q4 2024 Q4 2023 Change %
Slide 8: Positive gross margin development in the fourth quarter
Positive gross margin development in the fourth quarter Gross margin (%) bridge 2023 Q4 to 2024 Q4 42,6 • Earlier price adjustments, purchasing 42,0 0,7 0,2 0,1 0,2 efforts and positive currency effects contribute to gross margin improvement • Slightly negative customer and product mix • “Other” mai
Slide 9: Improved profitability driven by Sweden/Norway and Finland
Improved profitability driven by Sweden/Norway and Finland Adjusted EBIT (SEK M) bridge 2023 Q4 to 2024 Q4 • Strong profitability improvement in Sweden/Norway driven by successful efficiency measures 41 47 • Profitability in Finland improved 12 45 9 189 significantly but negatively 3 175 affected by
Slide 10: Strong financial position – leverage well within target range
Strong financial position – leverage well within target range Net debt Net debt/ MSEK EBITDA 5,000 12,00 x 11,00 10,00 Net debt at 2,602 (2,980) MSEK 4,000 9,00 Leverage of 2.6 times (incl IFRS 16), 8,00 3,000 driven by solid operational cash flow 6.4 7,00 generation in 2024 6,00 2,000 3.6 5,00
Slide 11: With several factors at play, net interest expense remained flat
With several factors at play, net interest expense remained flat Net interest expense*, MSEK Net debt** Interest rates Lease Liabilities 248 247 2023 2024 * Interest expense + interest income, excluding other financial items ** Excl. IFRS16 11
Slide 12: Denmark – Improved gross margin despite slow sales development
Denmark – Improved gross margin despite slow sales development • Reported net sales growth of -2 per cent, of which -1 per cent organic. Sales development suppressed by tough competition, a milder winter season and calendar effects • Adjusted EBIT somewhat lower, when a slightly improved gross margi
Slide 13: Finland – Continued initiatives for future profitable growth
Finland – Continued initiatives for future profitable growth • Reported net sales growth of 2 per cent, of which 2 per cent organic. Growth burdened by continued cautious market development and an unusually mild winter season 8% • Adjusted EBIT improved compared to Q4 last year, which was burdened b
Slide 14: Poland/The Baltics – Focus on integration to capture future growth
Poland/The Baltics – Focus on integration to capture future growth • Reported net sales growth of 38 per cent, mainly driven by the acquisition of Elit Polska. Organic growth of 1 per cent, impacted by intense price competition • Adjusted EBIT development temporarily burdened by acquired Elit Polska
Slide 15: Sweden/Norway – Continued strong profitability improvement
Sweden/Norway – Continued strong profitability improvement • Reported net sales growth of -4 per cent, of which -2 percent organic. Growth primarily burdened by the phase-out of the consumer business in Norway, as well as calendar effects and a 36 % mild winter season • Adjusted EBIT improved signif
Slide 16: Sørensen og Balchen – Robust sales growth and solid EBIT margin
Sørensen og Balchen – Robust sales growth and solid EBIT margin • Reported net sales growth of 6 per cent, of which 8 per cent organic. Growth driven by new customers and solid volume growth combined 5% with earlier implemented price adjustments • Adjusted EBIT margin of 15.7 per cent, with the heal
Slide 17: 2024 – We continue to build a stronger MEKO
2024 – We continue to build a stronger MEKO All time high for adjusted EBIT – up 13 percent compared to 2023 Solid financial position – leverage well within the target range Stronger cash flow thanks to improved results and favorable working capital development The Board proposes a dividend of SEK 3
Slide 18: Q&A
Q&A 18
Slide 19: We enable mobility - today, tomorrow and in the future
WE ENABLE MOBILITY - TODAY, TOMORROW AND IN THE FUTURE 19
Slide 20: Appendix
APPENDIX 20
Slide 21: Strong Group footprint
Strong Group footprint Market shares per geography Net sales per geography, 2024Q4 Denmark 28% Number of branches: 48 (24Q3: 48) Number of affiliated workshops: 944 (24Q3: 972) Finland 25% Number of branches: 162 (24Q3: 169) Number of affiliated workshops: 390 (24Q3: 380) Norway 25% Number of branch
Slide 22: Largest owners 2024-12-31
Largest owners 2024-12-31 Voting rights and share capitals, % LKQ Corporation 26,6 Swedbank Robur Fonder 9,0 Fjärde AP-fonden 7,9 Nordea Funds 4,5 Carnegie Fonder 3,3 Unionen 3,3 Eva Fraim Påhlman 3,1 AFA Försäkring 3,1 Vanguard 2,8 Dimensional Fund Advisors 2,7 Total 10 largest shareholders 66,3 Ot
Slide 23: Long term financial targets
Long term financial targets Sales growth Adjusted EBIT growth Annual sales growth of at least 5 percent Annual adjusted EBIT growth of at least 10 percent. - through a combination of organic growth and smaller acquisitions, but excluding selective M&A Net debt/EBITDA Dividend policy Net debt/EBITDA