Storskogen Group Ab Class B · OMXSTO:STOR_B
Storskogen Group Ab Class B — Q4 2021 Earnings Presentation
31 slides from Storskogen Group Ab Class B's earnings presentation, Feb 23, 2022
Slide 1: Storskogen Year-end 2021
Today’s Today’spresenters presenters Storskogen Storskogen Year-end Year-end2021 Daniel Kaplan Lena Glader 2021 Daniel CEO Kaplan and co-founder Lena CFOGlader CEO and co-founder CFO 23 February 2022 23 February 2022 1
Slide 2: Agenda
1. Storskogen and Q4 in brief Agenda 2. Development by business area 3. Group financial performance 4. Key takeaways 5. Q&A 2
Slide 3: Storskogen in brief
Storskogen in brief Storskogen is an international compounder with an infinite ownership agenda with the vision to be the best owner of small- and medium sized companies Country with business units SME compounder with an Vision to be the best SME presence 1) infinite ownership agenda owner # of busi
Slide 4: Our business areas as of 23 February
Our business areas as of 23 February Highly diversified business split out across 3 business areas, 13 verticals 2), 115 business units and +300 companies SERVICES TRADE INDUSTRY Peter Ahlgren Christer Hansson Fredrik Bergegård No. of Business units 541) No. of Business units 271) No. of Business un
Slide 5: Three business areas further divided into 13 verticals
Three business areas further divided into 13 verticals With 115 business units1) distributed over a wide range of verticals, driven by different macro trends and market characteristics, the portfolio is highly diversified SERVICES TRADE INDUSTRY Contracting Engineering HR & Industrial Infrastructure
Slide 6: Key numbers
Key numbers A strong Q4 with an organic EBITA growth of 55% (141% in total) concluded a successful year for Storskogen. The current acquisition pipeline indicates continued growth in 2022 ORGANIC EBITA NET SALES EBITA GROWTH EBITA MARGIN EBITA RTM 6,039 Q4 542 Q4 55 % Q4 9.0 % Q4, 2,491 2021 reporte
Slide 7: Acquisitions
Acquisitions Significant increase in dealflow driven by internationalization, enabling a broader selection of targets as well as diversification with decreased risks as a result ACQUISITIONS IN THE QUARTER DEALFLOW DEVELOPMENT # of companies 800 3x • 20 acquisitions in Q4, with combined net sales of
Slide 8: Acquisitions during 2021
Acquisitions during 2021 A total of 711) acquisitions, of which 34% add-ons, with an annual total EBITA contribution of approximately SEK 1,440m SERVICES TRADE INDUSTRY Contracting Engineering HR & Industrial Infrastructure Installation Logistics Digital Services Distributors Brands Producers Automa
Slide 9: So far in Q1 2022
So far in Q1 2022 A total of 17 completed acquisitions, of which 47% add-ons, with combined net sales of SEK 2,763m and EBITA of SEK 342m BU/ Business Acquisitions Vertical Add-on area Nimbus Group A/S BU Services Infrastructure Christ & Wirth Haustechnik GmbH 1) BU Services Installation EVIAB BU Se
Slide 10: Being the best SME owner
Being the best SME owner Storskogen's value contribution to its Business Units is all about decreasing risk and increasing upside, illustrated by the 1% organic EBITA growth in 2020 and 36% in 2021 >90 Group operations, 115 BU CEOs and ...driving business improvement with a +10.000 employees provide
Slide 11: International expansion update
International expansion update After a systemic and data-driven analysis, Singapore was identified as a mature and stable market with significant target opportunities. A team is already in place, working on the first acquisition ESTABLISHING SINGAPORE (SG) DIVISION MARKET EXPANSION RATIONALE Maturit
Slide 12: Agenda
1. Storskogen and Q4 in brief Agenda 2. Development by business area 3. Group financial performance 4. Key takeaways 5. Q&A 12
Slide 13: Development by Business Area – Services
Development by Business Area – Services Uplift in Q4 throughout all verticals with underlying positive sentiment in terms of demand, but covid- 19 will likely affect beginning of 2022 due to high absence MARKET DEVELOPMENT IN Q4 ACQUISITIONS IN Q4 Business units Add-ons • Q4 is a strong seasonal per
Slide 14: Financial development – Services
Financial development – Services Continued recovery in Q4 with solid outlook for 2022 NET SALES AND ADJ. EBITA NET SALES AND ADJ. EBITA COMMENT MARGIN (Q) MARGIN (LTM) 3 000 50% 8 000 50% • Q4 net sales increased by 104% to SEK 45% 7 000 6 906 45% 2,336m 2 500 2 336 40% 40% 6 000 5 713 • Q4 adj. EBI
Slide 15: Development by business area – Trade
Development by business area – Trade Top-line growth driven by strong B2B demand in Distributors and Brands. Supply chain issues and cost levels persist, but price increases have been successful MARKET DEVELOPMENT IN Q4 ACQUISITIONS IN Q4 Business units Add-ons • Strong sales and continued good B2B
Slide 16: Financial development – Trade
Financial development – Trade Non-recurring inventory adjustments negatively impacted Q4 margins, but organic EBITA growth has been extraordinary for the full year NET SALES AND ADJ. EBITA NET SALES AND ADJ. EBITA COMMENT MARGIN (Q) MARGIN (LTM) 2 000 50% 6 000 50% • Q4 net sales increased by 138% t
Slide 17: Development by business area – Industry
Development by business area – Industry Generally good momentum with strong demand and order intake, as well as good pricing power. Expect positive sentiment to continue despite component shortage MARKET DEVELOPMENT IN Q4 ACQUISITIONS IN Q4 Business units Add-ons • Underlying favourable industry mar
Slide 18: Financial development – Industry
Financial development – Industry Continued solid demand and contribution from acquisitions NET SALES AND ADJ. EBITA NET SALES AND ADJ. EBITA COMMENT MARGIN (Q) MARGIN (LTM) 2 000 1 913 50% 6 000 50% • Q4 net sales increased by 178% to SEK 5 500 1 800 45% 5 186 45% 1,913m. 1 608 5 000 1 600 40% 40% 4
Slide 19: Agenda
1. Storskogen and Q4 in brief Agenda 2. Development by business area 3. Group financial performance 4. Key takeaways 5. Q&A 19
Slide 20: Key financial performance Q4 2021
Key financial performance Q4 2021 Net sales increased by 134%, EBITA by 141% • Q4 net sales growth of 134% to SEK 6,039m. Organic sales 2021 2020 growth of 23% in Q4 and 17% in FY 2021 SEKm Q4 Q4 Chg., % 2021 RTM 1) Net sales 6,039 2,581 134 17,496 23,182 • EBITA growth of 141% in Q4, of which 55% o
Slide 21: Net sales and EBITA trend
Net sales and EBITA trend Consistent sales growth demonstrated by a strong M&A engine. Growth-enabling upscaling of organization and transaction costs affected EBITA by SEK 120m in Q4 NET SALES AND ADJUSTED EBITA MARGIN (Q) RTM NET SALES AND RTM ADJ. EBITA 8 000 50% 32 000 50% 45% 45% 7 000 28 000 6
Slide 22: Illustrative EBITA growth bridge
Illustrative EBITA growth bridge Contribution from recent acquisitions has increased EBITA from SEK 854m in FY 2020 to SEK 2,491m RTM EBITA in 2021 and further to SEK 2,833m including 2022 acquisitions to-date Illustrative; numbers based on latest annual financials 1) From companies acquired 15 Jan-
Slide 23: Cash flow
Cash flow Cash conversion of 73%, driven by a slight decrease in inventory build-up OPERATIONAL CASH FLOW AND CASH FLOW BRIDGE COMMENT CASH CONVERSION (LTM) 2 000 200% • Cash flow from operations increased to 1 800 1 695 180% SEK 699m in Q4 1 634 1 600 160% • Cash conversion of 98% in Q4. LTM cash 1
Slide 24: Net debt
Net debt Leverage of 1.3 at end-Q4, below financial targets supporting future growth NET DEBT AND LEVERAGE RATIO COMMENT 8 000 7 434 7 • Net debt decreased to SEK 3.9bn 7 000 6 693 6 • Financial net debt, excluding earn-outs and minority options, 6 000 5 amounted to SEK 1.7bn 5 000 4 • Leverage of 1
Slide 25: Agenda
1. Storskogen and Q4 in brief Agenda 2. Development by business area 3. Group financial performance 4. Key takeaways 5. Q&A 25
Slide 26: Key takeaways
Key takeaways The results in 2021 demonstrated Storskogen’s operational excellence and provides a strong position for continuous growth going forward 98% 36% in FY 2021 EBITA in FY 2021 organic growth EBITA growth Positive outlook despite uncertain context 2,833 963 MSEK in EBITA RTM MSEK in EBITA p
Slide 27: Agenda
1. Storskogen and Q4 in brief Agenda 2. Development by business area 3. Group financial performance 4. Key takeaways 5. Q&A 27
Slide 28: Storskogen Year-end Q&A
Today’s Today’spresenters presenters Storskogen Year-end 2021 Daniel Kaplan Lena Glader Q&A Daniel CEO Kaplan and co-founder Lena CFOGlader CEO and co-founder CFO 23 February 2022 28
Slide 29: Appendix
Appendix 29
Slide 30: Illustrative net sales growth bridge
Illustrative net sales growth bridge Net sales development is driven by organic growth as well as acquisitions. RTM net sales acquired during 2021 contribute with over 160% in growth Illustrative; numbers based on latest annual financials 1) From companies acquired 15 Jan-31 Dec 2020 (M&A Runt Rate,
Slide 31: Overview of financial guidance
Overview of financial guidance Significantly stronger organic EBITA-growth but weaker margins due to non-recurring inventory adjustments MEDIUM TERM VALUE DRIVERS 2021 Acquisitions to make up the largest growth driver which will be funded through cash generation and future debt issuance, taking into