Green Landscaping Group Ab · OMXSTO:GREEN
Green Landscaping Group Ab — Q4 2023 Earnings Presentation
21 slides from Green Landscaping Group Ab's earnings presentation, Feb 8, 2024
Slide 1: Q4 Report October – December 2023
Q4 Report October – December 2023 8 February 2024 Page 1
Slide 2: A home for entrepreneurs
A home for entrepreneurs A leading company in the ground maintenance and landscaping industry Entry 2021 Entry 2020 Founded 2010 The leading industrial consolidator in Europe Entry 2022 Well proven and successful Entry 2023 decentralized business model Announced Page 2
Slide 3: Summary full year 2023
Summary full year 2023 We followed through on the plain laid out Consolidated the acquisitions from late 2022 Extensive preparation work for expansion into DACH Monitoring and navigating tightening macro environment Increased M&A pace in the second half of the year Three acquisitions clo
Slide 4: Summary Q4 2023
Summary Q4 2023 Net sales increased by 2% to SEK 1,656 million Organic growth decreased by 6% Acquisitions contributed by 10% Majority of the companies increased net sales EBITA decreased by 4% and amounted to SEK 159 million EBITA-margin of 9.6% (10.2) in the quarter Positive mix effe
Slide 5: Strong growth
Strong growth Strong growth of net sales and EBITA over time Trending well above financial targets Page 5
Slide 6: Order backlog stable at SEK 8.3 billion
Order backlog stable at SEK 8.3 billion Growth of 6% compared with Q4 2022 Increase attributable to acquisitions and new contracts. Majority of order book consists of contracts with public sector customers Page 6
Slide 7: Sweden
Sweden 48% Share of net sales 31% Share of EBITA Net sales SEK 2,838 million, 4% for 2023 Organic growth contributed 1% Acquisitions contributed 3% Net sales SEK 800 million, -2% for Q4 Stable demand for ground maintenance Strong demand for road- and winter services offset by weaker conditio
Slide 8: Norway
Norway 41% Share of net sales 41% Share of EBITA Net sales SEK 2,385 million, 29% for 2023 Organic growth contributed 6% Acquisitions contributed 28% Changed exchanged rates -5% Net sales SEK 679 million, -4% for Q4 Organic decline offset by acquisitions High comparables EBITA SEK 242 mi
Slide 9: Finland and rest of Europe
Finland and rest of Europe 10% Share of net sales 25% Share of EBITA Net sales SEK 610 million, 168% for 2023 Organic growth contributed 5% Acquisitions contributed 155% Changed exchanged rates 8% Net sales SEK 179 million, 78% for Q4 Early arrival of winter impacting the Finnish companies
Slide 10: Acquired company in October 2023
Acquired company in October 2023 Rainer Gartengestaltung & Landschaftsbau GmbH Founded in 2005 Operates around Ulm and Stuttgart Offers services in ground maintenance and landscaping for outdoor environments Annual sales of EUR 3 million 24 employees Page 10
Slide 11: Acquired company in December 2023
Acquired company in December 2023 Hartmann Ingenieure GmbH Founded in 1985 Operates in central Berlin Offers landscaping services for outdoor environments Annual sales of EUR 4.5 million 55 employees Page 11
Slide 12: Acquisition announced in December 2023
Acquisition announced in December 2023 Viva Gartenbau AG Founded in 1992 Operates around Basel Offers services in ground maintenance and landscaping for outdoor environments Annual sales of EUR 3.2 million 20 employees Page 12
Slide 13: Financials
Financials Page 13
Slide 14: Strong finish to the year
Strong finish to the year Key financials Q4 2023 Net sales at SEK 1.7 billion for the quarter and SEK 5.8 billion for the full year Q4 Q4 Full year SEK million EBITA and EBITA-margin second-highest ever 2023 2022 2023 Cash flow impacted by NWC build-up NET SALES 1,656 1,625 5,831 Solid order
Slide 15: Cash flow
Cash flow Cash flow from operating activities amounting to SEK 379 (431) million in 2023 Cash flow from operating activities amounting to SEK 80 (215) million in Q4 Cash and cash equivalents at the end of the period amounted to SEK 459 (526) million Page 15
Slide 16: Cash Flow Bridge, Q4
Cash Flow Bridge, Q4 High demand for snow & ice removal services at the end of the quarter Because of this, accounts receivable and accrued income increased Strong cash flow in January Page 16
Slide 17: Financial leverage
Financial leverage Financial leverage amounted to 2.5X (2.4X) Level in line with financial target Steady state means deleveraging through cash flow from operating activities Page 17
Slide 18: Loan maturity profile
Loan maturity profile Loan facility maturity extended during the quarter, moved from 2025 to 2026 Total maturities amounting to about SEK 1,975 million No maturities until 2026 Only covenant being Net debt / EBITDA pro forma. Current level of 2.5 leaves plenty of headroom Page 18
Slide 19: Financial targets
Financial targets Growth EBITA margin Leverage (ND/EBITDA) Dividend (% of NI) 10% 8% 2.5x 40% Approximately 40% of profit for the year shall be distributed as dividends to shareholders. The Sales shall, on average, Net debt in relation to EBITDA EBITA margin shall, on average, dividend proposal shal
Slide 20: Summary
Summary We followed through on the plain laid out Consolidated the acquisitions from late 2022 Extensive preparation work for expansion into DACH Monitoring and navigating tightening macro environment Increased M&A pace in the second half of the year Three acquisitions closed and one ann
Slide 21: Page 21
landscaping group. ”
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