Storskogen Group Ab Class B · OMXSTO:STOR_B
Storskogen Group Ab Class B — Q1 2024 Earnings Presentation
24 slides from Storskogen Group Ab Class B's earnings presentation, May 7, 2024
Slide 1: Storskogen Q1 2024
Storskogen Q1 2024 TODAY’S PRESENTERS Christer Hansson Lena Glader Interim CEO CFO May 2024 1
Slide 2: Storskogen in brief
Storskogen in brief Storskogen is an international group of businesses with LTM net sales of SEK 35.2bn and Adj. EBITA of SEK 3.1bn, split across three business areas consisting of business units averaging ~280m in sales Services Trade Industry NO. OF BUSINESS UNITS NO. OF BUSINESS UNITS NO. OF BUSI
Slide 3: Highlights
Highlights Sales and EBITA in line with expectations in the seasonally softer first quarter KEY EVENTS NET SALES, Q1: ORGANIC NET SALES GROWTH: • Divestments affected net sales by -5% Y/Y SEK 8,358m -6% • LTM adj. cash conversion ahead of target at (-9%1) (3%2) 104% (71) • Interest-bearing net debt/
Slide 4: Net sales and EBITA margin
Net sales and EBITA margin Sales came down due to negative organic sales growth and divestments – margin in line with historical seasonality Financial development COMMENT 10,000 11% • Sales in line with expectations 9,000 10% as demand has come down 8,000 9.7% 9.4% 9.6% 9.7% 9% Y/Y 9.2% 8.7% 8% 7,00
Slide 5: Services
Services Softer quarter in line with historical seasonality and increased competition NET SALES, Q1: ORGANIC NET SALES GROWTH: COMMENTS SEK 2,490m -3% • Sales affected by divestments -11%, negative organic growth -3% and acquisitions/FX +3% (-11%1) (3%2) • Softer quarter in verticals with exposure t
Slide 6: Trade
Trade Softer Y/Y comparison, as the market remains challenging for several companies NET SALES, Q1: ORGANIC NET SALES GROWTH COMMENTS SEK 2,330m -6% • Sales affected by divestments -6%, negative organic growth -6% and acquisitions/FX +1% (-11%1) (2%2) • Sequential margin improvement from soft Q4 202
Slide 7: Industry
Industry Sales and EBITA coming down vs strong Q1 2023, but the margin improved sequentially NET SALES, Q1: ORGANIC NET SALES GROWTH COMMENTS SEK 3,551m -8% • Sales came down from strong comparable period in line with demand normalizing in H2 (-7%1) (4%2) 2023 • Sequential improvement from Q4 2023 A
Slide 8: Short-term priorities are clear
Short-term priorities are clear Today, we are focused on our priorities, with a clear set of triggers for returning to a growth agenda Triggers • Satisfactory leverage ratio Today Tomorrow • Persistent organic EBITA growth • Organic EBITA growth • Favourable market conditions • Persistent organic EB
Slide 9: Achieving organic growth
Achieving organic growth A number of both defensive and offensive initiatives for improvement today, and for when market demand returns Sales Pricing Investments Cost control Increase sales volume Protect margins Improve scalability Protect margins Gain market shares Strengthen profitability Enhance
Slide 10: Financial summary
Financial summary Divestments and negative organic growth affected the quarter SEKm Q1 24 Q1 23 Chg., % LTM COMMENTS Net sales 8,358 9,213 -9 36,006 • Q1 net sales decreased 9%, whereof C.O.G.S -6,703 -7,321 -8 -28,690 divestments -5%, organic growth -6% and acquisitions/FX +2% Gross profit 1,654 1,
Slide 11: Q1 bridge
Q1 bridge Softer Q1 for Services and Trade as traditional seasonality returned. Industry on a par with recent quarters, as demand normalised after a very strong H1 2023 Net sales, SEKm Adj. EBITA, SEKm 9,213 885 -3% -5% -6% -3% 8,358 -11% 703 -3% 1% Divestments affected total sales by -5% Net sales,
Slide 12: Q1 sales bridge
Q1 sales bridge Negative organic growth and divestments the primary drivers of the Y/Y decline SEKm -9% 9,213 -6% -5% 8,358 1% 1% Net sales, Q1 23 Organic growth Divestments Acquisitions FX Net sales, Q1 24 12
Slide 13: Condensed cash flow
Condensed cash flow Focus on cash flow have yielded significant results SEKm Q1 24 Q1 23 Chg., % LTM COMMENTS Profit before tax 198 638 -69 881 • Cash flow from change in WC of SEK -163m (-110) in Q1 Adjustment for non-cash items 461 370 25 2,148 Income tax paid -387 -431 -10 -770 • Cash flow from o
Slide 14: Operating cash flow and cash conversion
Operating cash flow and cash conversion Cash flow remains at strong levels with LTM cash conversion well ahead of target Operating cash flow1 (LTM) 5,000 140% 4,500 120% 4,000 104% 104% 95% 100% 3,500 87% 3,000 71% 80% 2,500 55% 59% 50% 60% 2,000 1,500 32% 40% 1,000 20% 500 1,454 1,051 1,794 2,397 3
Slide 15: Debt maturities
Debt maturities A balanced and diversified debt portfolio with an evenly distributed maturity profile Bond Bond Unutilised bank credit RCF Term-loan Cash and cash equivalents 1 SEKm 2 RCF extension option 3,711 1,700 2,304 3,803 3,000 2,000 1,700 1,407 Liquidity 2024 2025 2026 2027 2028 2029 15 1. A
Slide 16: Condensed balance sheet
Condensed balance sheet Debt significantly reduced since Q1 2023 SEKm Mar 24 Mar 23 Chg., % COMMENTS Total non-current assets 30,880 30,979 Unch. Total current assets 14,192 16,224 -13 • Balance sheet 5% lighter at SEK 45bn Total assets 45,072 47,203 -5 • Divestments • Working capital reduction Tota
Slide 17: Key takeaways
Key takeaways Performance in line with our expectations in the seasonally softer first quarter Tough comparison to strong Q1 2023 affected by divestments, and return to traditional seasonality Bank financing better suited to current needs, and extends maturity profile significantly Prioritising orga
Slide 18: Q&A
Q&A TODAY’S PRESENTERS Christer Hansson Lena Glader Interim CEO CFO 18
Slide 19: Appendix
Appendix 19
Slide 20: Financial development per segment
Financial development per segment Industry stabilising as demand has normalised; continued soft demand in Trade; increased competition Y/Y in Services Services Trade Industry 12,000 12% 12,000 12% 15,000 12% 11,000 11,000 14,000 13,000 10,000 10% 10,000 10% 10% 12,000 9,000 9,000 11,000 8,000 8% 8,0
Slide 21: Organic sales growth
Organic sales growth Negative organic sales growth compared to Q1 2023 as demand has weakened across all business areas Organic growth (QTD1) 30% 25% 24% 20% 20% 15% 17% 17% 16% 10% 11% 5% 6% 4% 3% 0% -2% -5% -7% -6% -6% -5% -10% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 2
Slide 22: Cash flow bridge, Q1
Cash flow bridge, Q1 Continued strong cash flow after leasing and capex Y/Y increase LTM, SEKm SEK 803m 3,004 745 589 2,259 63 196 589 500 1,889 785 1,408 Cash flow Change Cash flow Capex Net Leasing Free cash flow Acquisitions Acquired Paid Cash flow from in working from investments after leasing a
Slide 23: Net debt and leverage
Net debt and leverage Net debt reduced Y/Y but leverage ratio affected by negative organic EBITA growth Leverage ratio 18,000 4 16,000 14,000 3 12,000 2-3x leverage 2.7 2.6 2.6 2.6 2.6 2.8 target range 10,000 2.5 2.5 2 8,000 1.8 6,000 1 4,000 2,000 7,524 12,096 12,670 12,260 12,125 11,896 11,706 10,
Slide 24: Overview of financial targets
Overview of financial targets Focus is on organic EBITA growth, cash flows and improving the leverage ratio MEDIUM- Organic Adjusted EBITA growth Adjusted Adjusted cash Interest-bearing net TERM EBITA growth: including EBITA margin conversion on an debt / TARGETS Real GDP acquisitions: (over time):