Roko Ab Class B · OMXSTO:ROKO_B
Roko Ab Class B — H1 2022 Earnings Presentation
19 slides from Roko Ab Class B's earnings presentation, Aug 31, 2022
Slide 1: The Perpetual Owner – Presentation Jan-Jun 2022
The Perpetual Owner The Perpetual Owner Presentation Jan-Jun 2022 August 31, 2022 1
Slide 2: The Perpetual Owner
The Perpetual Owner • Europe has over 20 million privately owned, small and medium sized businesses1) • Approximately 15,000 companies are sold each year2) • Röko focuses on a small subsection of this large universe – high-quality, sustainable, niche companies with continuous profit growth. Preferab
Slide 3: Financial development
Financial development SEKm 2019 2020 2021 H1 ’21 H1 ’22 Net sales RTM1) 490 1,146 3,136 n.a. 4,019 Net sales 23 614 2,083 792 1,889 Organic growth2) n.a. 10% 13% n.a. 9% EBITA RTM1) 106 219 606 n.a. 779 EBITA -3 125 403 150 348 EBITA margin RTM1) 22% 19% 19% 19%3) 19% Interest-bearing net debt 345 3
Slide 4: 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 5: Portfolio company characteristics
Portfolio company characteristics Management age structure (CEO, years old)1) Organic growth ’211,2) Geographies1) <45 6 <0% 1 UK 7 45-60 14 0-10% 10 Denmark 4 >60 1 >10% 10 Norway 4 Sweden 4 Netherlands 2 Source: Company information Note: 1) As of August 2022; 2) Based on financials from management
Slide 6: 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 7: Share price development for serial acquirers
Share price development for serial acquirers 10y indexed share price performance – up ~12x, vs. benchmark at ~3x 2 000 1 750 1 500 1 250 1 000 750 500 250 0 Feb-14 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20 May-21 May-22 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Nov
Slide 8: 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 9: Appendix
ROKO Appendix
Slide 10: Segment financials
Segment financials B2B (SEKm) H1 ‘21 H1 ‘22 Change FY 2021 Net sales RTM1) n.a. 2,825 n.a. 2,020 Net sales 446 1,256 182% 1,177 EBITA RTM1) n.a. 573 n.a. 399 EBITA 100 254 154% 242 EBITA margin 22% 20% -2.0 p.p. 21% B2C (SEKm) H1 ‘21 H1 ’22 Change FY 2021 Net sales RTM1) n.a. 1,194 n.a. 1,115 Net sa
Slide 11: Cash flow and capital efficiency
Cash flow and capital efficiency Operating cash flow and cash conversion Capital employed and ROCE SEKm H1 ’21 H1 ‘22 FY 2021 SEKm H1 ‘21 H1 ‘22 FY 2021 Operating cash flow 120 212 248 Equity 1,701 2,703 1,991 EBITA 150 348 403 Interest-bearing debt 980 1,402 1,087 Cash conversion1) 80% 61% 62% Leas
Slide 12: KPIs
KPIs SEKm H1 '21 H1 '22 Change FY 2021 Net sales 792 1,889 139% 2,083 Net sales RTM1) n.a. 4,019 n.a. n.a. EBITA 150 348 132% 403 EBITA margin, % 19% 18% -1 p.p 19% EBITA RTM1) n.a. 779 n.a. n.a. EBITA RTM1) margin, % n.a. 19% n.a. n.a. EBITDA 175 399 128% 462 EBITDA margin, % 22% 21% -1 p.p 22% Cap
Slide 13: Profit and loss statement
Profit and loss statement Full-year H1 H1 SEKm 2019 2020 2021 2021 2022 Net sales 23 614 2,083 792 1,889 Cost of goods sold -15 -310 -1,293 -514 -1,163 Gross profit 8 304 790 277 727 Sales and marketing expenses -5 -109 -203 -50 -207 Administrative expenses -4 -98 -248 -92 -212 Other operating incom
Slide 14: Balance sheet
Balance sheet Dec-31 Jun-30 Dec-31 Jun-30 SEKm 2019 2020 2021 2022 SEKm 2019 2020 2021 2022 ASSETS EQUITY AND LIABILITIES Fixed assets Equity Intangible assets 955 1,506 3,984 4,838 Shareholders' equity 350 719 1,991 2,699 Tangible assets 197 251 506 610 Total equity attributable to Röko’s sharehold
Slide 15: Cash flow statement
Cash flow statement Full-year H1 H1 SEKm 2019 2020 2021 2021 2022 Operating activities Operating profit -11 89 312 111 271 Adjustment for non-cash items 2 44 107 59 114 Net financial items -1 -14 -26 -9 -20 Paid tax 0 -40 -86 -22 -68 Cash flow from operating activities before changes in working capi
Slide 16: 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 17: 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 18: 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 19: The Perpetual Owner
ROKO The Perpetual Owner