Slide 1: Interim report Q3 1 July – 30 September 2022
Interim report Q3 1 July – 30 September 2022 2022-10-28
Slide 2: Presenters
Presenters Clein Johansson Ullenvik Irene Wisenborn Bellander President & CEO CFO 2
Slide 3: Alligo at a glance
Alligo at a glance Alligo is a leading player Alligo creates value by Through our concept brands in workwear, personal making companies work and specialist stores, we meet protection, tools & supplies • Efficient and sustainable our customers throughout the in the Nordic region processes Nordic regi
Slide 4: Alligo at a glance
Alligo at a glance Revenue EBITA Revenue per geographic area 2021 per geographic area 2021 per brand category 2021 Total revenue: MSEK 8,475 Total EBITA: MSEK 645 (7.6%) Own brands = 20% 15% 12% 3% External brands = 80% 25% 85% 59% Sweden Norway Finland Sweden Norway Finland Number of stores* per ge
Slide 5: Alligo at a glance
Alligo at a glance • The Nordic main markets – revenue of approximately SEK 50 billion per year • Customers – a combination of small and medium-sized Transport enterprises, large industrial Manufacturing Construction Public Sector and Storage companies, and the public sector within eight defined seg
Slide 6: Our desired position – from different perspectives
Our desired position – from different perspectives WE WANT TO BE A FULLY INTEGRATED COMPANY Customers Offering Go-to-market • We focus on professional • We offer a product assortment • We meet our customers where customers in eight defined with focus on consumables and a they want to meet us – throu
Slide 7: Agenda
AGENDA • Highlights Q3 2022 • Business update • Financials • Summary and outlook • Q&A All figures in the presentation apply to continuing operations unless otherwise stated
Slide 8: Q3 in brief
Q3 in brief • Alligo’s integration strategy close to be finalized: ̶ Disturbances in the logistic process in Sweden solved during the quarter. ̶ Roll-out of Nordic standard assortment in all markets started. • Two acquisitions finalized during the quarter: ̶ LVH AS, based in Lillehammer, Norway ̶ Ma
Slide 9: Status of the extensive integration efforts to build Alligo
Status of the extensive integration efforts to build Alligo - Completed activities related to the merger of Swedol and Tools Common strategy and core values Coordination of logistics throughout the entire company - Norway ongoing New financial and non-financial Pricing system targets ERP Store integ
Slide 10: Status of the extensive integration efforts to build Alligo
Status of the extensive integration efforts to build Alligo – Ongoing activities related to the merger of Swedol and Tools Implementation of Nordic standard assortment 10
Slide 11: Q3 in brief
Q3 in brief • Alligo’s integration strategy close to be finalized: ̶ Disturbances in the logistic process in Sweden solved during the quarter. ̶ Roll-out of Nordic standard assortment in all markets started. • Two acquisitions finalized during the quarter: ̶ LVH AS, based in Lillehammer, Norway ̶ Ma
Slide 12: Sustainability is an integral part of Alligo's strategy
Sustainability is an integral part of Alligo’s strategy Vision Strategic objectives Strategies We’re unbeatable • Continuously reduce the environmental impact of • …as a partner to our operations our customers We are known as the leader in sustainable • Work with our suppliers • …as an employer deve
Slide 13: Non-financial targets
Non-financial targets Responsible Customer Sickness-related Share of female Climate supplier relations satisfaction absence managers impact 100% >75 <5% >30% CO2 All significant All concept brands Sickness-related The share of female Carbon dioxide suppliers must have in all Group absence as a manag
Slide 14: Our main impact is outside our own operations
Our main impact is outside our own operations Raw Manu- Transpor- Use Disposal materials facturing tation Upstream activities Downstream activities Likely around 80 % of the total CO2 emissions in our value chain We are initiating a mapping of GHG emissions throughout our value chain as a basis for
Slide 15: Examples of initiatives that aims to use resources more efficiently
Examples of initiatives that aims to use resources more efficiently Our operations Transportation Sales Reduce electricity Increase inbound Design for consumption container fill rate sustainability Reduce Reduce use of Optimise waste air freight packaging Optimise logistics setup and replenishment 1
Slide 16: Financials
FINANCIALS 16
Slide 17: Group in summary – Profitable growth in challenging times
Group in summary – Profitable growth in challenging times Revenues and EBITA Highlights Q3 • Revenue increased by 14.1% to MSEK 2,118 MSEK (1,856) 2022 2021 2022 2021 ̶ Organic growth of 10.2% Jul- Jul- Jan- Jan- ̶ Positive currency effects 2.9% MSEK Sept ∆, % Sep Sep ∆, % Sep ̶ Same number of tradi
Slide 18: Revenues and EBITA per market Q3
Revenues and EBITA per market Q3 Sweden Norway Finland MSEK % MSEK % MSEK % 1250 18 700 7 400 8 15 600 6 6 1000 300 500 5 4 12 750 400 4 200 2 9 300 3 500 0 6 200 2 100 -2 250 3 100 1 0 0 0 -4 0 0 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Revenue, MSEK EBITA, % Revenue,
Slide 19: Cash flow temporarily impacted by higher inventory levels
Cash flow temporarily impacted by higher inventory levels due to assortment-merge and roll out of own brands Q3 Operating activities Q1-Q3 Operating, investing and financing activities • Operating cash flow lower compared to Q3 last year • Investing activities ̶ Implementation of new ERP, e-commerce
Slide 20: Increased net debt, but still a strong financial position
Increased net debt, but still a strong financial position Overview of the financial position Key figures MSEK 30 Sep 2022 31 Dec 2021 • Ratio of net operational liabilities Non-current interest bearing liabilities 2,298 2,095 to EBITDA (excl. IFRS 16) of 2.2 Current interest bearing liabilities 483
Slide 21: Summary and outlook
SUMMARY AND OUTLOOK 21
Slide 22: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Attractive Scalable Own brands Sustainability A leader market growth platform is and services as an in the and resilient a foundation increase integrated consolidation customer for continued competitiveness part of the of the segments growth and profitabili
Slide 23: Outlook
Outlook • Majority of the integration work completed – focus on driving sales, developing our offer and streamlining our processes. ̶ Nordic standard assortment and roll-out of own brands • Good availability for the autumn and winter season ̶ Capital reduction • Continued sales- and assortment manag
Slide 24: Four overarching themes for 2022
Four overarching themes for 2022 Make our Continue the Ensure profitable Improve people grow integration work and growth in all parts collaboration and ascertain impact of of our business processes ongoing activities 24
Slide 25: From now on, there will be three overarching themes
From now on, there will be three overarching themes Make our Ensure profitable Improve people grow growth in all parts collaboration and of our business processes 25
Slide 26: Outlook
Outlook • Majority of the integration work completed – focus on driving sales, developing our offer and streamlining our processes. ̶ Nordic standard assortment and roll out of own brands • Good availability for the autumn and winter season ̶ Capital reduction • Continued sales- and assortment manag
Slide 27: Alligo
27 ALLIGO
Slide 28: Appendix
APPENDIX 28
Slide 29: Our material sustainability issues support the global goals
Our material sustainability issues support the global goals We’re unbeatable …as a leader in sustainable development in our industry Vision …as a partner to …as a partner to …as an employer our customers our suppliers • Product quality and safety • Diversity and equality • Working conditions • Custo
Slide 30: Financial targets
Financial targets Dividend Organic growth EBITA margin Indebtedness >5% >10% <3X 30-50% of net profit Average organic growth EBITA margin shall be Ratio of net operational Dividend as a percentage shall exceed 5 per cent more than 10 per cent liabilities to EBITDA of net profit shall amount per year
Slide 31: Four overarching themes for 2022
Four overarching themes for 2022 Continue the Get on track with Improve Make our coordination work and growth and margins collaboration and people grow ascertain impact of in all parts of our processes ongoing activities business • Continue work with • Assortment harmonisation • Clear view of what •
Slide 32: Revenue bridge third quarter 2022
Revenue bridge third quarter 2022 Revenue year-on-year Q3 +14,1% -0.0% 2 118 2.9% 1.0% 10.2% 1 856 Revenue Comparable Currency Number of Other Revenue Q3 2021 stores in local effects working units Q3 2022 currency days 32
Slide 33: Condensed consolidated income statement
Condensed consolidated income statement 33
Slide 34: Condensed consolidated balance sheet
Condensed consolidated balance sheet 34
Slide 35: Condensed consolidated statement of cash flows
Condensed consolidated statement of cash flows 35
Slide 36: Key performance indicators
Key performance indicators 36