Slide 1: Year-End Report Q4
Year-End Report Q4 1 October – 31 December 2022 Thursday, 16 February 2023 1
Slide 2: Presenters
Presenters Clein Johansson Ullenvik Irene Wisenborn Bellander Group President & CEO CFO 2
Slide 3: Agenda
AGENDA • Highlights Q4 2022 • Business update • Customer strategy • Financials • Summary and outlook • Q&A All figures in the presentation apply to continuing operations unless otherwise stated
Slide 4: Alligo at a glance
Alligo at a glance Alligo is a leading player Alligo creates value by Through our concept brands making companies work and specialist stores, we meet in workwear, personal • Efficient and our customers throughout the protection, tools & supplies sustainable processes Nordic region in whatever in the
Slide 5: Alligo at a glance
Alligo at a glance Revenue EBITA Revenue per geographic area 2022 per geographic area 2022 per brand category 2022 Total revenue: MSEK 9,211 Total EBITA: MSEK 756 (8.2%) Own brands = 18% 17% 8% External brands = 82% 14% 78% 27% 56% Sweden Norway Finland Sweden Norway Finland Number of stores* per ge
Slide 6: Alligo at a glance
Alligo at a glance • Nordic main markets – revenue of approx. SEK 53 billion per year • Customers – a combination of small and medium- sized enterprises, large industrial companies, and the public sector within eight defined segments • Main competitors – chains that focus on industry and constructio
Slide 7: Our desired position – from different perspectives
Our desired position – from different perspectives WE WANT TO BE A FULLY INTEGRATED COMPANY Customers Offering Go-to-market • We focus on professional • We offer a product assortment • We meet our customers where customers in eight defined with focus on consumables and they want to meet us – through
Slide 8: Agenda
AGENDA • Highlights Q4 2022 • Business update • Acquisitions • Financials • Summary and outlook • Q&A All figures in the presentation apply to continuing operations unless otherwise stated
Slide 9: Q4 in brief
Q4 in brief • Profitable growth in all markets, but some tendency to slowdown in Sweden • One acquisition finalized during the quarter: ̶ Profeel, with two stores in Sweden • Signed agreements for additional 3 acquisitions in Sweden (completed January 2, 2023): ̶ Z-Profil AB, Kents Textiltryck and O
Slide 10: Q4 business conditions
Q4 business conditions Market Proactive Delivery Macro- situation management capacity economic factors • Remained positive • Price adjustments • Good and stable • Continued with strong demand • Sensitive categories uncertainty in Norway and • Geopolitical • Reviewing customer Finland turbulence prof
Slide 11: How Alligo responds to a challenging market
How Alligo responds to a challenging market – with on-going and planned actions… Growth initiatives Cost initiatives • Customer mix • Primarily organizational – Norway and Sweden • Service offering • Additional initiatives • Acquisitions Price increases Stock reduction • Target to reduce inventory •
Slide 12: Acquisitions
ACQUISTIONS 12
Slide 13: Acquisitions – an integral part of Alligo's growth strategy
Acquistions – an integral part of Alligo’s growth strategy Focus on acquiring well run companies • Within our main segments to be integrated, profile and media to be kept separately from the fully-integrated business • Add footprint, customers, offerings • Realize synergies – assortment and purchasi
Slide 14: Markets
Alligo’s priority is to “add-on” to the current operation, while exploring opportunities in other areas New First priority: Add-on acquisitions similar to Possible expansion our current operations: Requires deeper analysis and evaluation • Swedol/Tools-like operations to be fully integrated (100 %)
Slide 15: Nine acquisitions signed 2022 – adding MSEK 400 in annual revenues
Nine acquistions signed 2022 – adding 400 MSEK in annual revenues – as well as 115 employees and 13 stores Date Annual Acquisition Product category signing revenue (MSEK)* Employees Stores Liukkosen Pultti Oy Workwear/Tools Feb 2022 47 12 1 Industrial Components/Tools/ Lunna AS Workwear/Protective E
Slide 16: Financials
FINANCIALS 16
Slide 17: Group in summary – Profitable growth in challenging times
Group in summary – Profitable growth in challenging times Revenues and EBITA Highlights Q4 • Revenue increased by 11.8% – significant inflation effect 2022 2021 2022 2021 ̶ Organic growth of 6.7% MSEK Oct-Dec ∆, % Oct-Dec Jan-Dec ∆, % Jan-Dec ̶ Positive currency effects 2.3% ̶ Same number of trading
Slide 18: Revenues and EBITA per market Q4 – profitable growth
Revenues and EBITA per market Q4 – profitable growth Sweden Norway Finland MSEK % MSEK % MSEK % 1750 18 800 6 500 6 1500 15 5 400 4 600 1250 12 4 300 2 1000 400 3 9 200 0 750 2 500 6 200 100 -2 1 250 3 0 0 0 -4 0 0 Q4 2020 Q4 2021 Q4 2022 Q4 2020 Q4 2021 Q4 2022 Q4 2020 Q4 2021 Q4 2022 Revenue, MSEK
Slide 19: Cash flow impacted by higher inventory levels
Cash flow impacted by higher inventory levels – 50% related to inflation and FX and 50% related to volume increase own brands Q4 Operating activities Q1-Q4 Operating, investing and financing activities • Operating cash flow slightly lower compared to Q4 last year • Investing activities ̶ Implementat
Slide 20: Increased net debt, but still a strong financial position
Increased net debt, but still a strong financial position Overview of the financial position Key figures MSEK 31 Dec 2022 31 Dec 2021 • Ratio of net operational liabilities Non-current interest bearing liabilities 2,410 2,095 to EBITDA (excl. IFRS 16) of 1.8 Current interest bearing liabilities 352
Slide 21: Solid performance in 2022 in relation to Financial Targets
Solid performance in 2022 in relation to Financial Targets 21
Slide 22: Summary and Outlook
SUMMARY AND OUTLOOK 22
Slide 23: 2022 in summary
2022 in summary • Financially stable year despite that we also carried out a large number of integration and improvement projects • New sales organizations • Nine acquisitions • Positive development in Finland • Secured good delivery capacity, but too high stock levels • Increased focus on sustainab
Slide 24: Outlook 2023
Outlook 2023 • Well positioned in an uncertain market • Focus on driving sales, developing our offer, and streamlining our processes ̶ Nordic standard assortment and roll-out of own brands • Good availability for the winter and spring season ̶ Capital reduction • Continued sales and assortment manag
Slide 25: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Attractive Scalable Own brands Sustainability A leader market growth platform is and services as an in the and resilient a foundation increase integrated consolidation customer for continued competitiveness part of the of the segments growth and profitabili
Slide 26: Alligo
ALLGO 26
Slide 27: Appendix
APPENDIX 27
Slide 28: Performance 2022 in relation to Sustainability Targets
Performance 2022 in relation to Sustainability Targets 28
Slide 29: Revenues and EBITA per market FY 2022 – profitable growth
Revenues and EBITA per market FY 2022 – profitable growth Sweden Norway Finland MSEK % MSEK % MSEK % 6000 12 3000 6 2000 6 5000 10 2500 5 5 1500 2000 4 4 4000 8 1500 3 1000 3 3000 6 1000 2 2 2000 4 500 500 1 1 1000 2 0 0 0 0 0 0 2020 2021 2022 2020 2021 2022 2020 2021 2022 Revenue, MSEK EBITA, % Rev
Slide 30: Revenue bridge fourth quarter 2022
Revenue bridge fourth quarter 2022 Revenue year-on-year Q4 +11,8% 2.8% 2 723 -0.0% 2.3% 6.7% 2 436 Revenue Comparable Currency Number of Other Revenue Q4 2021 stores in local effects working days units Q4 2022 currency 30
Slide 31: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2022 2021 2022 2021 MSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec IFRS 16 effects on cash flow from operations 84 103 364 362 IFRS 16 effects on cash flow from financing activities -84 -103 -364 -362 31
Slide 32: Agenda 2030
Agenda 2030 • Alligo supports Agenda 2030 and aims to achieve the UN Global Goals for Sustainable Development • The goals where we have the biggest impact, and can make the greatest difference, are connected to our material sustainability issues • During the fourth quarter of 2022, we reviewed the l
Slide 33: Alligo's material sustainability issues and the UN Global Goals
Alligos material sustainability issues and the UN Global Goals for sustainable development • Customer satisfaction • Product quality and safety • Climat impact • Diversity and equality • Environmental impact and chemicals • Work environment and health • Transparent sustainability communication and •