Slide 1: Q1 Interim Report January–March 2021
Interim Report Q1 January–March 2021 Mårten Andersson, CEO Andreas Stenbäck, CFO and incoming CEO 27 April 2021 Volati Interim Report January–March 2021 1
Slide 2: All financial targets reached in Q1 2021
All financial targets reached in Q1 2021 Net sales EBITA SEK 1,254 m SEK 102 m Net sales (Q1 2020: 1,028) (Q1 2020: 59) +22% Q1 2021 vs. Q1 2020 EBITA growth per ord. share Operating cash flow 39% SEK -35 m (Q1 2020: 35%) (Q1 2020: -9) EBITA Return on adjusted equity Net debt/adjusted EBITDA +74% 52
Slide 3: Strong earnings growth
Strong earnings growth • Sales increased in both business areas during the quarter, vs Q1 2020 ─ Salix Group +24% ─ Industry +20% • A very strong increase in EBITA ─ Salix Group +70% ─ Industry +63% • EBITA growth +74% to SEK 102 million (59), excl. Bokusgruppen • Two add-on acquisitions: ─ The Torn
Slide 4: Bokusgruppen as a separate listed company
Bokusgruppen as a separate listed company • Strong growth in digital channels (37%) contributed to Q1 sales increase of 4%, despite pandemic affecting physical stores. • EBITA slightly weaker than last year at SEK -7 million (-3). • Separate listing expected to better position Bokusgruppen in order
Slide 5: Events after end of Q1
Events after end of Q1 • Martin Aronsson appointed as the new Chief Financial Officer starting in Oct. at the latest • Experience incl. Chief Strategy and M&A Officer at Sweco, and McKinsey & Company • Volati intends to resolve the existing SEK 600 m bond loan in June 2021, provided that the AGM on
Slide 6: Financial development, LTM Q1 2021
Financial development, LTM Q1 2021 Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 5,147 m SEK 464 m SEK 524 m 0.8 x (2020: 4,921) (2020: 421) (2020: 550) (2020: -0.8) 6 000 500 450 5 000 400 4 000 350 300 3 000 250 200 2 000 150 1 000 100 50 0 0 Q1 Q3 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 7: Volati creates long-term value growth
Volati creates long-term value growth* EBITA growth of 38% CAGR since 2004. Net sales EBITA 8 000 1 400 1 229 1 263 7 000 1 200 6 000 1 000 5 000 800 4 000 600 3 000 433 377 326 318 513 400 2 000 215 227 142 89 1 000 99 60 76 69 200 7 16 28 - - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 8: Two business areas with high growth focus
Two business areas with high growth focus Industry Products and solutions for Products in builder’s hardware, companies in grain consumables, and materials for management, dampness and construction, home and garden, water damage management, packaging and forestry along labels, stone products and wit
Slide 9: Continued strong DIY trend propelled sales
Continued strong DIY trend propelled sales Previously • Sales increased by 24 percent over Q1 2020 while EBITA increased by 70 business area Trading percent. • Trading has benefited from a strong DIY trend in home renovations and 53% gardening, propelled by Covid related restrictions and lock-downs.
Slide 10: Industry
Business area Industry Strong demand, improved productivity and cost control • Operations continued to develop positively with sales growth of 20 percent and an EBITA increase of 63 percent, vs. Q1 2020. • The Tornum business unit made an add-on acquisition of JPT-Industria OY. 47% • The integration
Slide 11: Focus on building an acquisitions pipeline
Focus on building an acquisitions pipeline Add-on acquisitions Platform acquisitions • A decentralised acquisition organisation. • A centralised acquisition organisation. • All structures and processes in place to manage • Wide acquisition expertise and experience with a the entire acquisition proce
Slide 12: Add-on acquisitions 2020 – Q1 2021 with a total turnover of SEK 1 billion
Add-on acquisitions 2020 – Q1 2021 with a total turnover of SEK 1 billion Heco Nordiska Pisla Add-on acquisition Reason for acquisition Add-on acquisition Reason for acquisition for business area • Creates Sweden’s second-largest company SALES for business area • Market leadership in fittings in Fin
Slide 13: Increased central focus on acquisitions creates better conditions for new platforms
Increased central focus on acquisitions creates better conditions for new platforms • Structural changes enable increased central focus on M&A ─ Separate listing of Bokusgruppen Acquisition capacity ─ More decentralised Salix Group ─ New acquisition-oriented CEO and CFO SEK 2,0+ Bn. • Significant fi
Slide 14: Volati has a strong position as an acquirer of medium sized companies
Volati has a strong position as an acquirer of medium sized companies Volati as an owner • Long-term, responsible and sustainable • In the case of platform acquisitions, Volati can offer co-ownership and that the business remains independent and local Volati as an acquirer • Reliable, quick, fair an
Slide 15: Capital structure
Capital structure • Equity of SEK 2,456 million, of which preference shares amount to SEK 828 million • Unutilised revolving credit facility of SEK 900 million • Unutilised overdraft facility of SEK 300 million • Bond of SEK 600 million that will be repaid in June 2021 if a decision is made on the d
Slide 16: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is an average annual growth The long-term target is a return on The target is a net debt/adjusted EBITDA* in EBITA per ordinary share of at least 15 adjusted equity* of 20 percent. ratio of 2 to 3 times as an avera
Slide 17: Summary
Giving companies the Summary right conditions to grow A very strong first quarter • EBITA growth of 74 percent to SEK 102 m, excl Bokusgruppen Solid financial position • Net debt to EBITDA at 0.8x Offering shareholder value • SEK 843 m distributed to ordinary and preference shareholders Taking our n
Slide 18: Volati – a growing Swedish Industrial Group
Volati – a growing Swedish Industrial Group Volati Interim Report January–March 2021 18
Slide 19: Volati Interim Report January–March 2021
Volati Interim Report January–March 2021 19