Roko Ab Class B · OMXSTO:ROKO_B
Roko Ab Class B — Q3 2024 Earnings Presentation
22 slides from Roko Ab Class B's earnings presentation, Oct 25, 2024
Slide 1: The Perpetual Owner – Third quarter 2024
The Perpetual Owner Third quarter 2024 25 October 2024 1
Slide 2: Financial development
Financial development MSEK 2019 2020 2021 2022 2023 9M’23 9M’24 Net sales RTM1) 490 1,146 3,136 5,259 5,842 5,634 6,244 Net sales 23 614 2,083 4,316 5,614 4,137 4,513 Organic growth2) n.a. 10% 14% 12% 2% 2% 2% o/w Currency 0% 1% 4% 4% 3% 0% exchange EBITA RTM1) 106 219 606 1,005 1,069 1,027 1,212 EB
Slide 3: 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 Source: Company information 3
Slide 4: Core criteria consistently fulfilled by acquired companies
Core criteria consistently fulfilled by acquired companies Disciplined investment criteria Yes No Core criteria Continuous Profit Growth(1) 27 27 EBITA Margin above 10% 26 1 27 Management in place(2) 24 3 27 Market leader in a niche 18 9 27 CAPEX less than 5% of net sales 25 2 27 EBITA 2-10 MEUR 24
Slide 5: Acquisitions since June 2019
Acquisitions since June 2019 Acquired net sales per year averages 1BSEK Acquisitions (excl. add-ons) average close to 200 MSEK in net sales(2) 1,997 1,684 281 222 200 1,100 175 137 549 458 483 76 77 2019 six 310 months and 2024 nine months 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024
Slide 6: Portfolio company characteristics
Portfolio company characteristics Management age structure (CEO, years old)1) Organic growth in SEK ’241,2) Geographies1) <45 9 <0% 10 UK 8 45-60 15 0-10% 8 Denmark 6 >60 3 >10% 9 Norway 4 Sweden 4 Netherlands 3 Germany 1 Belgium 1 Source: Company information Note: 1) As of September 2024 for the YT
Slide 7: 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 8: Appendix
ROKO Appendix
Slide 9: 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 10: Cash flow and capital efficiency
Cash flow and capital efficiency Cash flow from operations and cash conversion Capital employed and ROCE SEKm 9M 23 9M 24 SEKm 9M 23 9M 24 Operating cash flow less CAPEX 607 709 Equity 5,176 5,405 Adj. EBITA 774 889 Interest-bearing debt 980 858 Cash conversion1) 78% 80% Leasing 506 498 Put/call deb
Slide 11: KPIs
KPIs SEKm YTD 2023 YTD 2024 Change Net sales 4,137 4,513 9% Net sales RTM1) 5,634 6,244 11% Adj. EBITA 604 706 15% Adj. EBITA margin, % 19% 20% +1 p.p Adj. EBITA RTM1) 1,027 1,212 18% Adj. EBITA RTM1) margin, % 18% 19% +1 p.p Adj. EBITDA 881 1,004 14% Adj. EBITDA margin, % 21% 22% +1 p.p Capital emp
Slide 12: Profit and loss statement
Profit and loss statement Full-year Nine months Nine months SEKm 2019 2020 2021 2022 2023 2023 2024 Net sales 23 614 2,083 4,316 5,614 4,137 4,513 Cost of goods and services sold -15 -310 -1,293 -2,668 -3,343 -2,479 -2,586 Gross profit 8 304 790 1,648 2,271 1,657 1,927 Sales and marketing expenses -
Slide 13: Balance sheet
Balance sheet December September December September SEKm 2019 2020 2021 2022 2023 2024 SEKm 2019 2020 2021 2022 2023 2024 ASSETS EQUITY AND LIABILITIES Fixed assets Equity Intangible assets 955 1,506 3,984 7 339 7,481 8,058 Equity attributable to Röko’s 350 719 1,991 3,653 4,942 5,405 shareholders T
Slide 14: Cash flow statement
Cash flow statement Full-year Nine months Nine months SEKm 2019 2020 2021 2022 2023 2023 2024 Operating activities Operating profit -11 89 312 612 821 604 706 Adjustment for non-cash items 2 44 107 262 358 273 293 Net financial items -1 -14 -26 -67 -106 -82 -45 Paid tax 0 -40 -86 -189 -224 -153 -156
Slide 15: Acquisitions since 2019
Acquisitions since 2019 Year Company Description Segment Country Net Sales Acquired net assets(1) Arboritec Manufacturer of floor finishes B2B Sweden 30 MSEK Hot Screen Heat transfer (textile printing) manufacturer B2B Sweden 94 MSEK Addedo VAR and consultant focused on consolidation software B2B Sw
Slide 16: Acquisitions since 2019
Acquisitions since 2019 Year Company Description Segment Country Net Sales Acquired net assets(1) Brownell Developer of humidity and moisture protection products. B2B UK 9 MGBP ETB Technologies Reseller specialised in refurbishment of IT hardware. B2B UK 15 MGBP Supplier of niched brickwork building
Slide 17: Overview of acquisitions
Overview of acquisitions Röko has made 25 platform acquisitions to date Year Company Description Business area Country Ownership1) Net sales at acquisition2) Segment split – no. of Companies H2 2019 Arboritec3) Varnish and floor maintenance products B2B Sweden 96% SEK 30m H2 2019 Hot Screen Heat tra
Slide 18: 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 19: 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 20: Ownership structure
Ownership structure The A/B-share structure will remain at IPO Overview of Röko’s largest shareholders and management’s shareholdings Commitment Number of A1) Number of B Person / Company Share of A shares Share of B shares Share of votes (SEKm) shares shares Trift Capital II Limited 504 0 1,359,751
Slide 21: 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 22: The Perpetual Owner
ROKO The Perpetual Owner