Slide 1: Q4 Year-end report 2022
Q4 Year-end report 2022 Andreas Stenbäck, CEO Martin Aronsson, CFO 10 February 2023 Volati Year-end report October – December 2022 1
Slide 2: Volati is a growing group of well-managed companies with strong earnings
Volati is a growing group of well-managed companies with strong earnings +16% +39% Volati EBITA EBITA CAGR growth LTM since 2017 Net sales, 2022 SEK 7,751 m EBITA, 2022 SEK 710 m +19% ~37% +26% +58% Industry ~45% EBITA CAGR EBITA CAGR ~17% EBITA CAGR since 2017 since 2017 since 20171 Share of group
Slide 3: Proven track record of long-term value creation
Proven track record of long-term value creation CAGR +23% CAGR • Average annual growth of 21% in sales and 23% in +14% EBITA last 10 years 710 664 • SEK 1,8 billion distributed to common shareholders since IPO in 2016 490 488 433 • Average annual growth in continued operations of 377 27% in sales an
Slide 4: Business model & platforms in place for continued growth
Business model & platforms in place for continued growth Development in recent years • Focusing on platforms with intrinsic possibilities for strong continued growth • Increased focus on operational performance, including synergies within the natural business units • Further developing our initiativ
Slide 5: Q4 and 2022 in brief – Continued growth and strong position going into 2023
Q4 and 2022 in brief – Continued growth and strong position going into 2023 • Solid Q4 for Volati with net sales growth of +12% and EBITA increase of +12% • Industry delivers a strong fourth quarter across all four platforms which summarizes a good 2022 and an EBITA growth of 25% in the year • Ettik
Slide 6: Financial development, Q4 2022
Financial development, Q4 2022 +12% +12% Net sales LTM EBITA LTM Operating cash flow Net debt/adjusted EBITDA SEK 1,930 m SEK 179 m SEK 323 m 1.9 x (Q4 2021: 1,722) (Q4 2021: 159) (Q4 2021: 290) (Q4 2021: 1.3x) Net sales, SEK m EBITA, SEK m 2 250 250 2 000 1 750 200 1 500 150 1 250 1 000 100 750 500
Slide 7: Financial development 2022
Financial development 2022 Net sales SEK 7,751 m 800 CAGR +39% +7% 710 25% (FY 2021: 6,309) 700 664 20% 600 EBITA 710 500 15% 421 SEK m 400 (FY 2021: 664) 312 10% 300 257 10,5% 9,2% 138 8,6% Operating cash flow 200 7,6% 7,5% 5% 431 100 5,8% SEK m 0 0% (FY 2021: 487) 2017 2018 2019 2020 2021 2022 EBI
Slide 8: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is an average annual growth in The long-term target is a return on The target is a net debt/adjusted EBITDA2) EBITA2) per ordinary share of at least 15 adjusted equity2) of 20 percent1). ratio of 2 to 3 times, and
Slide 9: Three business areas with growth focus
Three business areas with growth focus Industry Products and materials for Self-adhesive labels and Four businesses with leading builder’s hardware, machines for various market positions in their niches; consumables, construction, home applications; from decorative Products and solutions for grain &
Slide 10: Salix Group
Salix Group CAGR • Annual sales growth of 10% +17% • Stable demand in the industrial and professional segments – +10% cautiousness in the consumer segment • Margins 3 pp lower in the quarter due to high material prices, 4 000 25% electricity cost and unfavorable currency – however freight costs are
Slide 11: Ettiketto Group
Ettiketto Group CAGR • Best quarter in the history of Ettiketto Group, achieving 24% sales +31% growth • Good demand, expanding with new customers in the quarter +36% • Industry leading margins – but as expected, full year margins lower than last year affected by acquisitions 900 879 25% • Stable ma
Slide 12: Industry
Industry CAGR • Strong quarter with 21% sales growth +45% • Margin increase of 0,9 pp in the quarter - positively affected by strong results in MAFI +36% • Margin decline of 1 pp during the year - predominantly due to tough comparables in Corroventa from 2021 • Good underlying demand and a diversifi
Slide 13: Acquisitions LTM with a total annual turnover of SEK 820 million
Acquisitions LTM with a total annual turnover of SEK 820 million EBITA EBITA Industry EBITA ~45% ~37% ~17% Industry SALES Heco SALES Beneli January 2020 183 MSEK June 2020 156 MSEK SALES Pisla SALES Märkas September 2020 242 September 2020 168 MSEK Corroventa Tornum S:t Eriks MSEK Communication Dusc
Slide 14: Recent acquired annual turnover of SEK 800-1,200 million
Recent acquired annual turnover of SEK 800-1,200 million 1 170 1 125 1 086 • M&A have over time contributed with 1 021 1 017 annual sales of SEK 800–1,200 million • Annual pace of 6–8 acquisitions 867 770 823 • Majority of the acquisitions are value 749 742 8 8 8 creating add-on acquisitions, enabli
Slide 15: Strong position for acquired growth
Strong position for acquired growth Net debt, SEK m 1 988 1 888 1 632 1 344 • Net debt decreased with SEK 256 million in the quarter due 1 175 1 017 1 049 1 024 907 to strong operating cash flow 893 844 561 • Net debt increased by SEK 608 million compared to same period last year -485 - Operating ca
Slide 16: Summary
Summary Strong last quarter concludes a solid 2022 • Volati shows EBITA growth of 12% in the quarter • Business area Industry and Ettiketto Group developing very well, EBITA growth of 25% in the year • Salix Group delivers a sales growth of 10% in the year. Cost control and pricing to improve margin
Slide 17: volatl.
volatl.