Storskogen Group Ab Class B · OMXSTO:STOR_B
Storskogen Group Ab Class B — Q4 2022 Earnings Presentation
18 slides from Storskogen Group Ab Class B's earnings presentation, February 2023
Slide 1: Storskogen Q4 2022
Storskogen Q4 2022 TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO February 2022 1
Slide 2: Storskogen in brief
Storskogen in brief Storskogen is an international group of businesses with annual RTM net sales of SEK 37.4bn 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 UNITS NO. OF BUSINESS UNI
Slide 3: Q4 2022 highlights
Q4 2022 highlights Good performance with strong sales and cash flow in a challenging environment KEY EVENTS NET SALES: ORGANIC NET SALES GROWTH FY 22: • Good finish to a challenging year, with full year turnover almost doubling SEK 9,836m 12% • Strategic focus remains on operational excellence, (+63
Slide 4: Net sales and EBITA margin
Net sales and EBITA margin Continued good demand and an increase in profitability despite a challenging inflation environment and the weak Swedish currency Financial development COMMENT 12,000 11.3% • Sales growth driven by 11,000 10.5% 10.4% acquisitions as well as 10.0% 10,000 9.4% 9.7% 10% underl
Slide 5: Market development
Market development Overall good demand with weakness in certain consumer-facing segments. Reasonable short-term outlook and a continued reduction in the acquisition pace in the short to medium term MACRO TRANSACTION MARKET and M&A Good demand in Industry and Services General slowdown in the market S
Slide 6: Overview of financial targets
Overview of financial targets Storskogen’s focus is on operational excellence, the balance sheet and cash flow in the short to medium term MEDIUM- Organic EBITA growth Adjusted Adjusted cash Interest-bearing net TERM EBITA growth: including EBITA margin conversion on an debt / TARGETS Real GDP acqui
Slide 7: Services
Services Good sales growth, +39% in Q4 2022, with a positive margin development NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 14% (FY), organic EBITA growth 12,000 12% of -5% (FY) 11,000 10.4% 10.0% 10.1% 11,351 9.9% 10,000 9.5% 9.6% 9.1% 9.2% 9.5% 10% • Seasonally strong
Slide 8: Trade
Trade Strong sales growth, +62% in Q4 2022, lower margin due to FX headwinds and cost inflation NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS 11.6% • Organic sales growth of 10% (FY), organic EBITA growth 10,000 10.8% 11.4% 10.8% 12% of -14% (FY) 10.5% 10.6% 9,000 9,637 9.9% 10.0% 9.6% 10% • Contin
Slide 9: Industry
Industry Strong sales growth, +92% in Q4 2022, with steady margins above 11% NET SALES AND ADJ. EBITA MARGIN (LTM) COMMENTS • Organic sales growth of 11% (FY), organic EBITA growth 14,000 14% of 1% (FY) 13,000 12.1% 11.9% 13,288 12,000 11.2% 11.3% 11.3% 11.1% 11.0% 12% • Strong underlying market wit
Slide 10: Key financial performance, Q4 2022
Key financial performance, Q4 2022 Adj. EBITA margin improved vs. Q4 2021. Price increases and cost efficiency partly offset cost inflation and currency headwinds. Q4 Q4 FY SEKm 2022 2021 Chg., % 2022 RTM 1) COMMENT Net sales 9,836 6,039 63 34,250 37,371 • Net sales growth of 63% with corresponding
Slide 11: Organic growth
Organic growth Good organic sales growth throughout 2022 Organic growth (QTD1) 30% 25% 24% 20% 17% 20% 16% 15% 17% 11% 10% 6% 4% 5% 0% Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Net sales 1 Comparable sample based on owned portfolio companies as of January the year before, i.e. the same sample
Slide 12: Operating cash flow and cash conversion
Operating cash flow and cash conversion Reduced working capital supported cash flow in Q4. LTM cash conversion improving. Operating cash flow1 (LTM) COMMENTS 2,500 180% • LTM operating cash flow of 2,250 2,397 160% SEK 2.4bn 2,000 140% • LTM cash conversion of 59%. 1,750 1,794 120% Working capital r
Slide 13: Net debt and leverage
Net debt and leverage Leverage decreased to 2.6x, within the target range of 2-3x. Plan to further reduce leverage short to medium term. Leverage ratio COMMENTS 18,000 4 • Interest-bearing net debt of 16,000 3.5 SEK 12.3bn, a decrease of SEK 14,000 2.7 2.6 3 0.4bn during the quarter 2.5 2.5 includin
Slide 14: Completed transactions
Completed transactions Four acquisitions were completed during the quarter, with a further three add-ons acquired since the end of December. One divestment completed. Acquisitions completed during Q4 Acquisitions completed after Q4 Divestments Business units Add-ons Business Units Add-ons EnergiStyr
Slide 15: Operational efficiency
Operational efficiency Storskogen is continuously working with cost efficiency and synergy measures to support margins Group Business Units Procurement operations What What What • Reduced number of • Proactive cost cutting in Assessment of savings through joint procurement in 12 employees cyclical B
Slide 16: Working capital project
Working capital project By means of education, target-setting and provision of analysis tools, several WC-reducing activities have been initiated across the organisation, with a focus on ensuring long-term structural change Education and support Working capital ratio • Cross-organisation education e
Slide 17: Key takeaways
Key takeaways Good finish to a challenging year when our full year turnover nearly doubled Good performance given the challenging macro environment of 2022 Mixed picture with Industry strong, Services improving and Trade weaker. Q1 is seasonally weak Strong cashflow and a SEK 410m reduction of inter
Slide 18: Q&A
Q&A TODAY’S PRESENTERS Daniel Kaplan Lena Glader CEO CFO 18