Slide 1: Storskogen Q2 2023
Storskogen Q2 2023 TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO August 2023 1
Slide 2: Storskogen in brief
Storskogen in brief Storskogen is an international group of businesses with annual LTM net sales of SEK 36.9bn and EBITA of SEK 3.5bn, split across three business areas and 14 verticals Services Trade Industry Peter Ahlgren Christer Hansson Fredrik Bergegård NO. OF BUSINESS UNITS1 NO. OF BUSINESS UN
Slide 3: Q2 2023 highlights
Q2 2023 highlights Strong cash flow from operations and margin protection in challenging environment KEY EVENTS NET SALES: ORGANIC NET SALES GROWTH, YTD: • Successful issuance of SEK 2bn bonds and repurchase of SEK 3bn bonds – maturity extended SEK 9,462m -2% from 2024 to 2027 (+4%1) (16%2) • EBITA
Slide 4: Update on strategic priorities
Update on strategic priorities Solid delivery on strategic priorities as set out at the Capital Markets Day in September 2022 Priorities Status Comment LTM Operating cash flow1 has Improve cash flow improved by SEK 2.1bn since Q3’22 Adj EBITA margin at 9.7% in Protect profitability challenging marke
Slide 5: Empowering businesses
Case study Empowering businesses • Offering a complete, innovative range of cable By increasing the upside and limiting the risk, Storskogen carved out Wibe ladders, cable trays and mesh trays trough four Group and increased sales by 27%1 with an improved EBITA-margin globally leading brands: Wibe,
Slide 6: Net sales and EBITA margin
Net sales and EBITA margin Margin protection despite continued uncertainty Financial development COMMENT 10,000 • Margin protection across 9,000 10% diversified portfolio 8,000 9.7% 9.0% 9.6% 9.7% 9.2% 9.4% 9% • EBITA growth in Services 7,000 offset by decline in Trade 6,000 8.2% 8% • Continued focu
Slide 7: Market development
Market development Solid demand in Industry and Services, but softer in Trade. Reduced M&A pace with strong focus on selected high value cases. MACRO TRANSACTION MARKET AND M&A Solid demand in Industry and Services Decent deal flow with stabilised multiples Stabilised cost situation, and supply chai
Slide 8: Overview of financial targets
Overview of financial targets Focus is on operational excellence, balance sheet and cash flow in the short to medium term MEDIUM- Organic Adjusted EBITA growth Adjusted Adjusted cash Interest-bearing net TERM EBITA growth: including EBITA margin conversion on an debt / TARGETS Real GDP acquisitions:
Slide 9: Services
Services Strong quarter with significant margin improvement Y/Y NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 0% (YTD), organic EBITA 12,000 12% growth of 8% (YTD) 11,000 10.1% 10.0% 10,000 9.6% 9.1% 9.2% 9.5% 9.7% 10% • Seasonally strong quarter, with improved sales 9,000
Slide 10: Trade
Trade Key focus to improve working capital position and protect profitability NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of -3% (YTD), organic 12,000 10.8% 10.6% 12% EBITA growth of -22% (YTD) 11,000 10.5% 10.0% 10,000 9.6% 9.3% 10% • Continued soft demand within consumer-
Slide 11: Industry
Industry Sales growth of +9% in Q2 2023 and margin expansion NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of -1% (YTD), organic EBITA 15,000 12.1% 11.5% growth of 1% (YTD) 14,000 11.3% 11.3% 11.6% 12% 11.1% 11.0% 13,000 • Continued strong underlying market with good 12,000 1
Slide 12: Completed transactions
Completed transactions Four acquisitions and several divestments completed since Q1 Acquisitions completed in Q2 Acquisitions completed after Q2 Divestments Business units Add-ons Business units Add-ons AC Electrical Swiss Medical Jobs1 Dextry Group1 joins Installation joins Vokus Personal within wi
Slide 13: Key financial performance, Q2 2023
Key financial performance, Q2 2023 Adj. EBITA margin improved vs. Q2 2022. Price increases and cost efficiency partly offset cost inflation and currency headwinds. Q2 Q2 LTM Q2 SEKm 2023 2022 Chg., % 2023 RTM 1) COMMENT Net sales 9,462 9,059 4 36,929 36,080 • Net sales growth of 4% with an adj. EBIT
Slide 14: Organic sales growth
Organic sales growth Organic sales growth in negative territory, primarily driven by business area Trade Organic growth (QTD1) 30% 25% 24% 20% 20% 15% 17% 17% 16% 10% 11% 5% 6% 4% 3% 0% -5% -7% -6% -10% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 1 Comparable sample based on po
Slide 15: Operating cash flow and cash conversion
Operating cash flow and cash conversion Cash flow improvement supported by working capital efficiency – close to LTM SEK 4bn Operating cash flow1 (LTM) COMMENTS 4,000 140% • LTM operating cash flow of SEK 3,500 3.9bn 120% 3,000 • LTM cash conversion of 87% - 100% 86.9% well above target level 2,500
Slide 16: Net debt and leverage
Net debt and leverage Debt maturities significantly extended. Leverage unchanged at 2.6x with further reduction in short to medium term being a key priority Leverage ratio COMMENTS 18,000 4 • Interest-bearing net debt of SEK 16,000 11.9bn, a decrease of SEK 229m 14,000 3 • Gross interest-bearing deb
Slide 17: Continued strong diversification effect
Continued strong diversification effect The diversified business model continues to show low correlation – pickups in Services and Trade as Industry levelled out EBITA margin, QTD 14% 12% 10% 8% 6% 4% 2% 0% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Services Trade Industry Storskogen Group, exc
Slide 18: Key takeaways
Key takeaways Delivery on strategic priorities Strong cash flow and margin despite macro uncertainty Seasonally strong performance in Services – diversified portfolio delivers Maturity profile extended as 2024 bonds were refinanced with a smaller 2027 issue Continued focus on operational excellence,
Slide 19: Q&A
Q&A TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO 19