Volati Ab · OMXSTO:VOLO
Volati Ab — Q3 2020 Earnings Presentation
18 slides from Volati Ab's earnings presentation, Oct 22, 2020
Slide 1: Interim Report Q3 January–September 2020
Interim Report Q3 January–September 2020 Mårten Andersson, CEO Andreas Stenbäck, CFO 22 October 2020 Volati Interim Report January–September 2020 1
Slide 2: Financial development in Q3 2020
Financial development in Q3 2020 Net sales, SEK million 2000 Net sales 1500 SEK 1,828 m (1,711) 1000 2018 2019 2020 500 0 EBITA Q1 Q2 Q3 Q4 SEK 157 m (153) 250 200 EBITA, SEK million 150 2018 2019 100 Return on adjusted equity 2020 20% 50 0 Q1 Q2 Q3 Q4 Volati Interim Report January–September 2020 2
Slide 3: Continued impressive earnings growth
Continued impressive earnings growth • Another quarter of strong earnings growth. EBITA increased by 26 percent to SEK 161 million, excluding Besikta. • Consumer’s EBITA SEK 28 m behind last year, solely because of the so called Omnibus regulation (a temporary EU regulation in response to the corona
Slide 4: Financial development, LTM Q3 2020
Financial development, LTM Q3 2020 Net sales EBITA Operating cash flow Net debt/adjusted EBITDA SEK 7,177 m SEK 594 m SEK 730 m 1.4 x (2019: 6,833) (2019: 513) (2019: 523) (2019: 1.5) 8 000 700 7 000 600 6 000 500 5 000 400 4 000 300 3 000 200 2 000 1 000 100 0 0 Q1 Q2 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3
Slide 5: Financial targets
Financial targets EBITA growth Return on adjusted equity Capital structure The target is average annual growth in The long-term target is a return on adjusted The target is a net debt/adjusted EBITDA* EBITA per ordinary share of at least 15 equity* of 20 percent. ratio of 2 to 3 times as an average
Slide 6: Volati creates long-term value growth
Volati creates long-term value growth Since the IPO in 2016, our average annual EBITA growth has been 18 percent. 33 percent average annual EBITA growth since the 2004. Net sales EBITA 8 000 700 594 7 000 600 513 6 000 433 500 5 000 377 400 326 318 4 000 300 3 000 215 227 142 200 2 000 89 99 60 76 6
Slide 7: Volati divests Besikta to Applus+
Volati divests Besikta to Applus+ • Volati has signed an agreement to sell all shares in Besikta Bilprovning i Sverige Holding AB to Applus Servicios Tecnologicos SLU. • The purchase price is based on an enterprise value of SEK 1,050 million which corresponds to an approximate equity value of SEK 84
Slide 8: A showcase for Volati's value creation agenda
A showcase for Volati’s value creation agenda 1 1 Acquired a good company at a reasonable valuation by exploiting difference between perceived and actual risk. 2 + Large and profitable cluster of stations in a regulated market. - No brand name, no management team, no IT system, no financial history
Slide 9: Trading
Business area Trading Continued growth in Trading • Another quarter with high growth in both sales and earnings. • Trading has benefited from a continued strong market, through its well- known brands and leading market positions. 38% • A strategically important acquisition in Finnish Pisla, which co
Slide 10: Consumer
Business area Consumer Temporary challenges for Consumer • Decrease in sales and earnings compared to last year, which is solely the result of the introduction of a temporary EU regulation due to the corona crisis, the so-called omnibus regulation. 16% • Inspection volumes decreased in July and Augu
Slide 11: Akademibokhandeln
Business area Akademi- bokhandeln Continued strong growth in digital channels • Growth in both sales and earnings. • 20 percent growth in the digital channels Bokus, Akademibokhandeln.se and BokusPlay, in total accounting for 45 percent of sales for the quarter. 13% • Store sales showed a clear reco
Slide 12: Industry
Business area Industry Another good quarter for Industry • Another good quarter with continued sales and earnings growth. • Product leaders in their niches with strong market positions. • The Ettiketto business unit made its second add-on acquisition for the year 34% through the acquisition of Märka
Slide 13: Creating a strong acquisition pipeline
Creating a strong acquisition pipeline Add-on acquisitions Platform acquisitions • A decentralised acquisition organisation. • A centralised acquisition organisation. • All structures and processes in place to • Volati has broad acquisition expertise and manage the entire acquisition process in the
Slide 14: Completed add-on acquisitions since 2019
Completed add-on acquisitions since 2019 Stenentreprenader Mundus Maskin Väggmaterial Swekip April 2019 April 2019 September 2019 December 2019 Add-on acquisition to Add-on acquisition to Add-on acquisition to Add-on acquisition to business area Industry business area Industry business area Trading
Slide 15: Pisla OY – a typical add-on acquisition
Pisla OY – a typical add-on acquisition Pisla at a glance • Headquarted in Viitasaari in central Finland • Nationwide market leader in fittings • Just over 100 employees • Sales of appr. SEK 250 million Acquisition rationale • Expanding geographically – Pisla no. 1 and Habo no. 2 in fittings for hom
Slide 16: Conclusions and steps ahead
Conclusions and steps ahead Giving companies the Continued impressive earnings growth The result for the quarter confirms the positive trend with very right conditions to grow good earnings growth in our operations. Solid financial position • Net debt to EBITDA at 1,4x, well below financial target.
Slide 17: Volati – a growing Swedish Industrial Group
Volati – a growing Swedish Industrial Group Volati Interim Report January–September 2020 17
Slide 18: Volati Interim Report January–September 2020
Volati Interim Report January–September 2020 18