Relais Group Oyj · OMXHEX:RELAIS
Relais Group Oyj — H1 2023 Earnings Presentation
42 slides from Relais Group Oyj's earnings presentation, Aug 10, 2023
Slide 1: Half-year Financial Report January–June 2023
Relais Group Plc Half-year Financial Report January–June 2023 Helsinki, August 10 2023
Slide 2: Presenting today
Presenting today: Arni Ekholm Thomas Ekström CEO CFO 2
Slide 3: Content
Content • Relais in brief • Sustainability • The vehicle aftermarket • Business review • Financial review • Relais as an investment
Slide 4: Relais in brief
RELAIS Relais in brief
Slide 5: Net sales and EBITA Q2/2023 and H1/2023
Net sales Q2/2023 (Q2/2022) MEUR 64.1 (58.6) +9% EBITA Q2/2023 (Q2/2022) MEUR 4.8 (3.4) +42% Net sales 1 HY/2023 (1 HY/2022) MEUR 133.1 (120.7) +10% EBITA 1 HY/2023 (1 HY/2022) MEUR 12.3 (9.1) +35% 5 Change percentages are calculated on exact figures before rounding up to millions of euros
Slide 6: What is Relais all about
What is Relais all about • Relais Group Plc is a consolidator and smart compounder with a sector focus on vehicle aftermarket in the Nordic region • We serve as a growth platform for our group companies and build them into great businesses • We consider the value generated during the whole vehicle l
Slide 7: Relais Group Growth Strategy
Relais Group Growth Strategy Growth by acquisitions Smart compounder: Active consolidation of the Nordic vehicle aftermarket sector Operational Organic growth excellence Faster than the market average earning growth Continuous development supported by synergies of operations to grow earnings and cas
Slide 8: Relais Group value creation model
Relais Group value creation model Smart compounding I L D B U Sector focus N D Competence compounding Y A Add-on acquisitions Accelerating organic growth BU Build great businesses Further development of the acquired companies’ operations and capabilities Full utilization of the synergies Invest righ
Slide 9: Strong growth supported by acquisitions
Strong growth supported by acquisitions Acquisition of: ADITA Oy AutoMateriell Acquisition of: Acquisition of: Nordic Lift A/S Skeppsbrons Strands Group AB Jönköping AB Raskone Oy Ecofoss A/S Lumise Oy S-E-T A/S STS Sydhamnens Trailer Service AB Trucknik AB Acquisition of: ABR move to SEC Scandinavi
Slide 10: Relais Group companies
Relais Group companies Over thousand professionals in 6 countries Technical wholesale and products Commercial vehicle repair and maintenance
Slide 11: Acquisition of AutoMateriell and Nordic Lift
Acquisition of AutoMateriell and Nordic Lift Testing 198 MNOK1 13 MNOK1 Vehicle lifts equipment Net sales in Operating profit in 2022 2022 Tyre & wheel Workshop § New platform for growth within Relais Group equipment tools § Strong market position in Norway. AutoMateriell established in 1939 Brake E
Slide 12: Sustainability
RELAIS Sustainability
Slide 13: Sustainability
For us, sustainability means above all practical and meaningful everyday actions. We take good care of our Sustainability employees, customers, business partners and the environment. We have set clear ESG-related criteria to our global suppliers and several spare parts we sell are covered by a refun
Slide 14: Volta Trucks cooperation
Volta Trucks cooperation Relais Group company STS Sydhamnens Trailer Service has been appointed as a Certified Service Partner in the Swedish market by Volta Trucks, the leading and disruptive all-electric commercial vehicle manufacturer and services provider. Certified Service Partners will play a
Slide 15: The vehicle aftermarket
RELAIS The vehicle aftermarket
Slide 16: Vehicle aftermarket defined
Vehicle aftermarket defined Relais Group target market: vehicle life cycle enhancement Pre-market Vehicle life cycle enhancement End-of-life Import and Customizing and Import & wholesale of Maintenance Operations and Demolition Manufacturing Vehicle reselling of vehicles equipping parts & equipment
Slide 17: Large, fragmented market
Vehicle aftermarket Large, Why is the vehicle aftermarket attractive from a value creation perspective? fragmented The Nordic assessed market assessed to be market at least MEUR 20 billion in yearly turnover Large and fragmented market with many companies in different sectors Several interesting acq
Slide 18: Vehicle aftermarket opportunity: Technology trends
Vehicle aftermarket opportunity Why is the vehicle aftermarket attractive from a value creation perspective? Technology trends § Growing number of EV:s à value of spare parts and components increases § Circular economy and sustainability aspects à battery recycling and power train conversion opportu
Slide 19: Vehicle aftermarket opportunity: Value & growth
Vehicle aftermarket opportunity Why is the vehicle aftermarket attractive from a value creation perspective? Value & growth § Large and ‘inert’ installed base, over 19 million vehicles à stable and defensive market § Lower/delayed deliveries of new vehicles means that the existing vehicles are used
Slide 20: Business review: Continued strong and profitable growth
Business review: Continued strong and profitable growth
Slide 21: Q2 – Continued strong and profitable growth
Q2 – Continued strong and profitable growth +9.4% +9.4% 7.5%1 6.7 EURM 64.1 58.6 Group sales Comparable Net cash flow from growth EBITA-% operations § Strong growth: Net sales grew by 15%2 and EBITA by 50% with constant exchange rates § The main growth drivers: continued positive development of the
Slide 22: Technical wholesale and products business area Q2 2023
Technical wholesale and products business area Q2 2023 +9% § Technical Wholesale and Products business in 41.3 Scandinavia grew 10% organically with constant 38.1 exchange rates. Net sales, EURM § The strongly weakened Swedish krona had a negative effect on the reported profitability, which was offs
Slide 23: Repair and maintenance business area Q2 2023
Repair and maintenance business area Q2 2023 +11% § The Commercial Vehicle Repair and Maintenance 22.8 business continued to perform strongly, driven by the 20.5 robust customer demand in both Finland and Sweden combined with the effect of the efficiency measures Net sales, EURM initiated last year.
Slide 24: Reported sales by product group Q2 2023
Reported sales by product group Q2 2023 +11% +1% 22.8 20.7 20.9 20.5 Net sales, EURM +7% +21% 9.2 9.9 9.8 8.1 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 % of group 35 33 16 15 14 15 35 36 Spare parts Lighting Equipment Repair and Maintenance Note: totals may not add up due to minor other sales
Slide 25: Reported sales by segment H1 2023
Reported sales by segment H1 2023 +13% 71.9 +7% 63.6 External revenue, EURM 61.1 57.1 H1/22 H1/23 H1/22 H1/23 % of group 47 46 53 54 Finland & Baltics Scandinavia
Slide 26: Outlook
Outlook Outlook for 2023 • We feel that we have a good possibility to continue implementing our strategy also during the second half of 2023. • We look forward to the important Lighting-season starting in August-September. We have several exciting new products to be launched to the market this autum
Slide 27: Financial review
RELAIS Financial review
Slide 28: Net sales and EBITA development
Net sales and EBITA development Net sales EBITA MEUR +9% MEUR 80 73.5 75.2 10 69.0 +42% 62.1 64.8 64.1 8.0 8.0 58.7 58.6 8 7.7 7.5 60 53.5 52.1 6.2 6 5.7 5.7 40 4.8 4.1 4 3.4 20 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2021 2022 2023 + Significant organic sale
Slide 29: EBITA development Q2/2023
EBITA development Q2/2023 4.8 4.8 7.5 7.5 + Profitability improvement in the Commercial Vehicle Repair and 6.5 Maintenance business 3.8 5.8 + Acquisitions made in 2022 and 3.4 2023 - Sluggish consumer demand in Finland and the Baltics impacted negatively on the Technical Wholesale and Products busin
Slide 30: EBITA development H1/2023
EBITA development H1/2023 12.3 12.4 9.3 9.3 + Profitability improvement in the Commercial Vehicle Repair and 8.3 Maintenance business 10.0 7.5 + Acquisitions made in 2022 and 9.1 2023 - Sluggish consumer demand in Finland and the Baltics impacted negatively on the Technical Wholesale and Products bu
Slide 31: Net financials
Net financials MEUR Q2 H1 FY 2023 2022 2023 2022 2022 § Net interest expenses increased due to the Interest income and expenses -1.3 -0.7 -2.5 -1.2 -2.6 increase in reference interest rates on loans Interest expenses, lease liabilities -0.4 -0.4 -0.8 -0.7 -1.4 from financial institutions Foreign exc
Slide 32: Net profit and EPS development Q2/2023
Net profit and EPS development Q2/2023 0.4 0.7% § Net profit for the period and EPS were 0.2 0.2 0.3% 0.3% approximately at previous year's level 0.0 0.0% due to increased net Q2 2022 Q2 2023 Q2 2022 Q2 2023 financial expenses and Profit for the period, MEUR Profit for the period-% Comparable profit
Slide 33: Net profit and EPS development H1/2023
Net profit and EPS development H1/2023 3.5 3.2 2.9% § Net profit for the period 3.1 2.7 2.2% 2.3% 2.4% and EPS were approximately at previous year's level due to increased net H1 2022 H1 2023 H1 2022 H1 2023 financial expenses and Profit for the period, MEUR Profit for the period-% Comparable profit
Slide 34: Net working capital
Net working capital MEUR -17% 67.8 69.7 70 65.0 67.1 62.7 62.6 MEUR 06 2023 06 2022 12 2022 59.2 60 54.3 56.2 50 Inventories 68.6 75.5 67.8 45.0 40 Trade and other receivables 35.9 33.0 36.9 30 20 Trade and other payables 48.3 40.6 41.9 10 Total net working capital 56.2 67.8 62.7 0 Q1 Q2 Q3 Q4 Q1 Q2
Slide 35: Cash flow from operations and cash conversion
Cash flow from operations and cash conversion MEUR +130% MEUR Q2 H1 FY 20 2023 2022 2023 2022 2022 17.2 CF before change in NWC 8.8 6.5 20.2 15.7 38.6 15 Change in NWC 1.3 -0.9 3.3 -5.8 -0.1 11.0 10 7.7 CF from net financials -3.4 -2.7 -5.8 -4.6 -9.7 6.2 6.7 5.3 5 2.9 CF from operations 6.7 2.9 17.7
Slide 36: Cash flow summary H1/2023
Cash flow summary H1/2023 Cash flow from investing Cash flow from financing Cash flow from operations activities activities EUR 17.7 (5.3) EUR -4.0 (-9.6) EUR -13.4 (-0.7) million million million + Improved profitability especially in the § Acquisition of the shares in Adita Oy – Repayments of lease
Slide 37: Balance sheet and financial position 30.6.2023
Balance sheet and financial position 30.6.2023 The Group's balance- Net debt excl. lease TheTotal Group’s equity equity sheet total liabilities EUR 307.3 (308.8) EUR 71.9 (98.5) EUR 96.3 (63.7) EUR 85.3 (101.3) million million million million Net gearing excl. lease Equity ratio Cash assets liabilit
Slide 38: Interest-bearing net debt
Interest-bearing net debt MEUR -8.0% Relais Group (IFRS) MEUR 06 2023 06 2022 12 2022 160 156.5 153.3 143.5 139.3 143.9 Loans from financial institutions, l-t 90.3 101.3 95.7 139.7 142.4 140 129.9 132.4 Loans from financial institutions, s-t 6.9 6.5 7.2 120 112.2 Lease liabilities 58.6 55.4 53.5 100
Slide 39: Long term financial target
Long term financial target Relais Group aims to reach a pro forma EBITA of 50 MEUR by end of 2025
Slide 40: Summary: Relais as an investment
Summary: Relais as an investment
Slide 41: Relais as an investment
Relais as an investment Active, sector focused consolidator with a strong track record of successful acquisitions Solid cash flow and profitability track record A growing underlying market with defensive characteristics Growing lighting business with own brands Efficient and decentralized operating
Slide 42: Q&A
Q&A