Volati Ab · OMXSTO:VOLO
Volati Ab — Q4 2019 Earnings Presentation
27 slides from Volati Ab's earnings presentation, Feb 20, 2020
Slide 1: Year-end Report Q4 January–December 2019
Year-end Report Q4 January–December 2019 Mårten Andersson, CEO Andreas Stenbäck, CFO 20 February 2020
Slide 2: Financial development in Q4 2019
Financial development in Q4 2019 Net sales 2000 1800 Net sales, SEK m SEK 1,801 m (1,831) 1600 1400 1200 2017 1000 2018 800 2019 EBITA 600 400 SEK 194 m (173) 200 0 Q1 Q2 Q3 Q4 250 Organic EBITA growth EBITA, SEK m 200 + 3% 150 2017 2018 100 2019 50 0 Q1 Q2 Q3 Q4 2
Slide 3: Q4 2019 in brief
Q4 2019 in brief • EBITA increased by 12 percent of which 3 percent was organic growth. Good underlying operating performance in all business areas. • A strong operating cash flow in Q4 – SEK 439 million – meant that net debt at year-end was low. • Continued good inflow of potential acquisition targ
Slide 4: Financial development, full year 2019
Financial development, full year 2019 Net sales 8 000 7 000 Net sales LTM, SEK m SEK 6,833 m 6 000 5 000 4 000 (6,084 full-year 2018) 3 000 2 000 1 000 EBITA 0 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 SEK 513 m 2016 2017 2018 2019 (433 full-year 2018) EBITA LTM, SEK m 600 Cash conversion 500
Slide 5: Long-term perspective
Long-term perspective • Compound Annual Growth Rate of EBITA 2004-2019: 33 percent. 8 000 600 513 7 000 500 433 6 000 377 400 5 000 326 318 Net sales EBITA 4 000 300 215 227 3 000 200 142 2 000 89 99 76 69 100 60 1 000 28 7 16 - - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 6: A value-adding business model
A value-adding business model Volati’s success has been created with a tried and tested business model that is the same today as when the company was founded in 2003. It is based on four mutually reinforcing fundamental principles. …is used for A strong operating further acquisitions …at reasonable
Slide 7: New financial targets
New financial targets Volati’s overall objective is to generate long-term value growth by building an industrial group of profitable companies with solid cash flows and capacity for continuous development. Volati has the following financial targets, which should be evaluated as a whole. The target i
Slide 8: Business area Trading
Business area Trading Q4 2019 in brief • The business area ended the year strongly with improved profitability, despite challenges in the form of a weak Swedish krona. • One add-on acquisition was completed during the quarter. In addition, Heco Nordiska was acquired in January 2020. • A strong struc
Slide 9: Business area Consumer
Business area Consumer Q4 2019 in brief • EBITA growth of 34 percent. • We have managed the challenges from the changed car inspection regulations in a good way. Profitability in the business has developed positively and the market position is strong. • Volati changed its ownership of the me&i busin
Slide 10: Business area Akademibokhandeln
Business area Akademibokhandeln Q4 2019 in brief • The business area has shown a very positive development in the first 9 months of the year and had strong fourth quarter sales in its stores. • Unfortunately, e-commerce was affected by temporary delivery problems in the important fourth quarter as t
Slide 11: Business area Industry
Business area Industry Q4 2019 in brief • Strong profit development with EBITA growth of 54 percent. • Contribution from all business units. • After an intensive year at St Erik´s we have laid the foundation to profitably grow that business unit. Oct–Dec Oct–Dec Full-year Full-year 2019 2018 2019 20
Slide 12: Well-positioned for further acquisitions
Well-positioned for further acquisitions Successful acquirer • Proven ability to make major acquisitions, integrate acquired companies and deliver on the investment hypothesis. 523 Operating cash flow, 2019 (SEK million) Ready for further acquisitions • Volati’s acquisition agenda is run both centra
Slide 13: Add-on acquisitions in 2019 and beginning of 2020
Add-on acquisitions in 2019 and beginning of 2020 Add-on acquisitions are an important part of Volati’s strategy to create long-term value. They reinforce the existing business units’ market positions and add further value through synergies. One of the major natural stone Stenentreprenader Business
Slide 14: Key financial performance
Key financial performance Cash conversion Sales and EBITA Net debt % SEK m SEK m 112% 6,833 2,8 1500 6,084 94% 1300 2.3 2,3 89% 86% 949 83% 1100 907 85% 1.7 1,8 4,356 900 619 1.5 756 1,3 700 1.2 3,206 0,8 500 2,188 (265) 0,3 300 -0,2 100 433 513 (0.6) 377 -0,7 227 318 -100 -300 -1,2 2015 2016 2017 2
Slide 15: Financial targets until 2019
Financial targets until 2019 EBITA growth Cash Capital structure Return on Common equity conversion adjusted equity dividend policy SEK 700m >85% <3.0x >20% ~10-30% (by 2019) (long-term) (long-term) Reach an adjusted Annual cash Volati’s long-term Long-term reach a Distribute 10-30% of EBITA of SEK
Slide 16: Conclusions and steps ahead
Conclusions and steps ahead Stable finish to a good year • 18 percent growth in EBITA in 2019 • Overall, operations developed positively Strong business area organisation • Provides management resources to achieve strategic plans and value creation in the business units • Enables efficient managemen
Slide 17: A growing Swedish industrial group
A growing Volati – a growing Swedish Swedish Industrial industrial Group group 17
Slide 18: Appendix
Appendix volati.
Slide 19: Business area Trading
Business area Trading Integrated business model Island • Focused on four market segments: – Construction consumables and hardware (primarily B2B) o Clients include companies within the Nordic professional and do-it-yourself markets such as Ahlsell, Byggmax, Coop, DT Group, Woody Bygghandel and XL By
Slide 20: Business area Consumer
Business area Consumer Strong local entrepreneurship • Business units focused on B2C niches • Strong local entrepreneurship combined with collaboration in selected areas such as database marketing, digitalisation and e-commerce • Business area head responsible for implementing Volati’s central initi
Slide 21: Business area Akademibokhandeln
Business area Akademibokhandeln Sweden’s leading book retailer • The only successful omni-channel player – # 1 in physical bookstores – # 2 online retailer • Sales from own and franchise stores together with e-commerce channels (akademibokhandeln.se) – 104 profitable physical stores across Sweden (7
Slide 22: Business area Industry
Business area Industry Overview • Organised in 4 business units Thailand Strong local entrepreneurship • Business units focused on B2B niches • Strong local entrepreneurship combined with collaboration in selected areas such as international expansion, lean manufacturing and HR • Business area head
Slide 23: Income statement
Income statement SEKm Q4 2019 2019 2018 Net sales 1,801 6,833 6,084 Raw materials and supplies -955 -3,756 -3,375 Other external costs -166 -672 -853 Personnel costs -405 -1,533 -1,318 Other income -1 30 18 Other operating costs 3 -5 -4 Result of divestment 13 13 - EBITDA 291 909 552 Depreciation -9
Slide 24: Balance sheet
Balance sheet SEKm 31 Dec 2019 31 Dec 2018 Intangible fixed assets 2.853 3,126 Tangible fixed assets 336 404 Right-of-use assets 832 - Financial fixed assets 7 8 Deferred tax assets 58 59 Total non-current assets 4,086 3,597 Inventory 865 895 Current assets 758 839 Current interest-bearing securitie
Slide 25: Cash flow statement
Cash flow statement SEKm Q4 2019 2019 2018 Profit before tax 149 34 316 Adjustment for depreciation and impairments 112 779 186 Adjustment for other non-cash items 8 39 18 Interest paid -22 -85 -39 Interest received 0 1 2 Cash taxes 24 -40 -53 Cash flow before changes in working capital 271 728 430
Slide 26: Net debt and working capital
Net debt and working capital SEKm 31 dec 2019 31 Dec 2018 Net debt Cash and cash equivalents -447 -241 Unrealised derivate instruments assets - 0 Pension liabilities 2 2 Non-current interest-bearing liabilities 642 974 Current interest-bearing liabilities 711 241 Unrealised derivative instruments li
Slide 27: Definitions of key metrics
Definitions of key metrics Metric Explanation Adjusted Explanation Business area return on BA EBITA excluding IFRS16 in relation to BA capital employed capital employed (BA - - excluding IFRS16 ROCE) Cash conversion Operating cash flow in relation to EBITDA excluding IFRS16 - - Operating profit befo