Roko Ab Class B · OMXSTO:ROKO_B
Roko Ab Class B — FY2023 Earnings Presentation
23 slides from Roko Ab Class B's earnings presentation, Feb 16, 2024
Slide 1: The Perpetual Owner – Fourth quarter and full year 2023
The Perpetual Owner Fourth quarter and full year 2023 16 February 2024 1
Slide 2: Financial development
Financial development MSEK 2019 2020 2021 2022 2023 Q4’22 Q4’23 Net sales RTM1) 490 1,146 3,136 5,259 5,842 Net sales 23 614 2,083 4,316 5,614 1,270 1,478 Organic growth2) n.a. 10% 14% 12% 2% 12% 0% o/w Currency 0% 1% 4% 4% 5% 2% exchange EBITA RTM1) 106 219 606 1,005 1,069 EBITA -3 125 403 787 1,04
Slide 3: 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 4: 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 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 x Management in - x x x x - - x x x x x x x x x x x x x x x x place2) Market leader in a - x x x x x x - x x - x - x - - x - x x x - x niche Cap
Slide 5: 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 1 684 222 161 137 549 76 458 483 2019 2020 2021 2022 YTD 2023 2019 2020 2021 2022 2023 Acquired net sales(1) Average company size (2) Source: C
Slide 6: Portfolio company characteristics
Portfolio company characteristics Management age structure (CEO, years old)1) Organic growth in SEK ’231,2) Geographies1) <45 7 <0% 8 UK 8 45-60 15 0-10% 13 Denmark 6 >60 2 >10% 3 Norway 4 Sweden 4 Netherlands 2 Source: Company information Note: 1) As of December 2023; 2) Based on financials from ma
Slide 7: 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 8: Röko’s shareholders have contributed MSEK 1,189 in equity during June and July 2023
Röko’s shareholders have contributed MSEK 1,189 in equity during June and July 2023 • From the start in June 2019 until today, Röko has raised SEK 4.5bn of equity capital and invested in 24 business units • During June 2023, Röko drew all the outstanding committed capital from shareholders and added
Slide 9: 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 1,005 631 715 692 412 453 511 305 998 1,069 280 606 106 219 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 2
Slide 10: Appendix
ROKO Appendix
Slide 11: 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 12: Cash flow and capital efficiency
Cash flow and capital efficiency Cash flow from operations and cash conversion Capital employed and ROCE SEKm FY 2022 FY 2023 SEKm FY 2022 FY 2023 Operating cash flow 515 932 Equity 3,653 4,942 Adj. EBITA 787 1,047 Interest-bearing debt 2,145 910 Cash conversion1) 65% 89% Leasing 518 483 Put/call de
Slide 13: KPIs
KPIs SEKm YTD 2022 YTD 2023 Change Net sales 4,316 5,614 30% Net sales RTM1) 5,259 5,842 21% Adj. EBITA 787 1,047 33% Adj. EBITA margin, % 18% 19% 1 p.p Adj. EBITA RTM1) 1,005 1,069 6% Adj. EBITA RTM1) margin, % 19% 18% -1 p.p Adj. EBITDA 902 1,186 32% Adj. EBITDA margin, % 21% 21% 0 p.p Capital emp
Slide 14: Profit and loss statement
Profit and loss statement Full-year SEKm 2019 2020 2021 2022 2023 Net sales 23 614 2,083 4,316 5,614 Cost of goods and services sold -15 -310 -1,293 -2,668 -3,343 Gross profit 8 304 790 1,648 2,271 Sales and marketing expenses -5 -109 -203 -474 -634 Administrative expenses -4 -98 -248 -482 -714 Othe
Slide 15: Balance sheet
Balance sheet Dec-31 Dec-31 SEKm 2019 2020 2021 2022 2023 SEKm 2019 2020 2021 2022 2023 ASSETS EQUITY AND LIABILITIES Fixed assets Equity Intangible assets 955 1,506 3,984 7 339 7,481 Equity attributable to Röko’s shareholders 350 719 1,991 3,653 4,942 Tangible assets 197 251 506 747 697 Total equit
Slide 16: Cash flow statement
Cash flow statement Full-year SEKm 2019 2020 2021 2022 2023 Operating activities Operating profit -11 89 312 612 821 Adjustment for non-cash items 2 44 107 262 358 Net financial items -1 -14 -26 -67 -106 Paid tax 0 -40 -86 -189 -224 Cash flow from operating activities before changes in working capit
Slide 17: 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 18: Overview of acquisitions
Overview of acquisitions Röko has made 24 platform acquisitions to date Year Company Description Business area Country Ownership1) Net sales at acquisition2) Segment split – no. of Companies H2 2019 Arboritec3) Varnish and floor maintenance products B2B Sweden 67% SEK 30m H2 2019 Hot Screen Heat tra
Slide 19: 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 20: 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 21: Ownership structure
Ownership structure The A/B-share structure will remain at IPO Overview of Röko’s largest shareholders and management’s shareholdings Commitment Number of A1) Number of B Person / Company Share of A shares Share of B shares Share of votes (SEKm) shares shares Trift Capital II Limited 504 0 1,359,751
Slide 22: 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 23: The Perpetual Owner
ROKO The Perpetual Owner