Slides
Page 1
12M-2024 RESULTS CONFERENCE CALL 11 FEBRUARY 2025 Martin Jacobsson, CEO Casper Tamm, CFO Adrian Westman, Head of IR
Page 2
HIGHLIGHTS ▪ Stable development for subsidiaries in Denmark, Norway and Finland ▪ Underperformance in Sweden ▪ Substantial earnings contribution from Clear Line; successful integration underway ▪ Positive development in order backlog with increasing margin compared to Q3 (also excluding Clear Line) ▪ Net debt/adjusted EBITDA pro forma at 3.3x ▪ No dividend proposed and policy removed; focus on taking leverage back below 2.5x FOURTH QUARTER 2024 2 Cities where Fasadgruppen’s subsidiaries are located
Page 3
3 NET SALES ▪ Total decrease of 1.6% ▪ Revenues down 15.6% organically* ▪ Swedish operations continue to decline; low activity in new construction combined with less working days in December and continued tough competition ▪ Stable development in rest of Nordics; organic growth for 2024 as a whole ▪ Clear Line net sales SEK 126.2m (2 months) Q4 2024 0 2000 4000 6000 0 400 800 1200 1600 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 MSEK, LTMMSEK, quarter Net sales per quarter Net sales, LTM +22.6% CAGR (LTM) Q4 2023 Organic FX Acquisitions Q4 2024 800 900 1000 1100 1200 1300 1400 1500 -15.6% -0.1% +14.2% -1.6% net sales growth MSEK *50 subsidiaries included in organic growth calculations
Page 4
4 ADJUSTED EBITA ▪ Adjusted EBITA margin at 6.4% (9.1%) ▪ Weak earnings in Sweden; ▪ Loss related to Serneke bankruptcy approx. 10 million ▪ Unfavourable December ▪ Subsidiary-specific challenges ▪ Overall stable in rest of Nordics with some regional varieties ▪ Clear Line EBITA SEK 57.1 million (2 months) Q4 2024 2024 2023 2024 2023 SEK million Q4 Q4 Δ 12m 12m Δ Adjusted EBITA 88.0 127.9 -31.1% 282.4 448.0 -37.0% Adj. EBITA margin 6.4% 9.1% 5.7% 8.8% 0 100 200 300 400 500 0 20 40 60 80 100 120 140 160 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 MSEK, LTMMSEK, quarter Adj. EBITA per quarter Adj. EBITA, LTM -2.1% CAGR (LTM)
Page 5
5 ORDER BACKLOG ▪ Order backlog decrease of 8% organically ▪ Order backlog at all-time-high at roughly 3.8bn SEK following Clear Line acquisition ▪ Both the order backlog and the margin have increased compared to Q3-2024 (excluding Clear Line) 31 DEC 2024 31 Dec 2023 Organic FX Acquisitions 31 Dec 2024 1500 2000 2500 3000 3500 4000 0 1000 2000 3000 4000 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 MSEK, quarter +32.2% order backlog growth +25.2% CAGR (LTM) -8.0% +39.1% MSEK +1.1% Order backlog per quarter
Page 6
6 CASH FLOW ▪ Decrease in operating cash flow due to lower earnings ▪ Improved working capital thanks to continued focus on cash flow management ▪ Cash conversion above target of 100% Q4 2024 0 100 200 300 400 500 600 -50 0 50 100 150 200 250 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 MSEK, LTMMSEK, quarter Operating cash flow per quarter Operating cash flow, LTM +18.5% CAGR (LTM) 2024 2023 2024 2023 SEK million Q4 Q4 Δ 12m 12m Δ Operating cash flow 184.6 209.8 -12.0% 421.6 547.6 -23.0% Δ Working capital 116.3 82.4 172.7 123.9 Cash conversion 220.3% 131.8% 118.5% 104.7%
Page 7
7 FINANCIAL CAPACITY AND NET DEBT ▪ Average interest rate Jan-Dec 2024: ~6.1% (~5.8%) ▪ Interest period of 1-3 months ▪ Net debt / adjusted EBITDA pro forma approx. 3.3x ▪ Credit facilities agreement converted into sustainability-linked loans 31 DEC 2024 SEK million 31 Dec 2024 31 Dec 2023 Interest-bearing debt 2,426.5 1,539.7 Lease liabilities (+) 197.4 168.1 Cash and cash equivalents (-) 482.3 467.6 Total interest-bearing net debt 2,141.6 1,240.2 Net debt / adjusted EBITDA (x) 5.3x 2.3x 1 2 3 4 5 6 0 500 1000 1500 2000 2500 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 (x)MSEK Net debt Net debt/adj. EBITDA (LTM) Target (2.5x)
Page 8
NEW ACQUISITIONS Clear Line (Q4 2024) ▪ Strong reputation in complex high rise and façade fire remediation projects ▪ Total solution with design, PCSA, contract delivery and execution ▪ Established customer base with a referrer network that delivers continuous flow of new projects; highly selective project approach ▪ Revenues of approx. GBP 49m GREAT VALUE-ADDS; FOCUS WILL NOW BE ON DELEVERAGING 8 Liab Plåtbyggarna (Q1 2025) ▪ Sheet metal, forging and assembly work as well as steel halls throughout Mälardalen ▪ Acquisition of 80%, existing management holds rest creating strong incentives ▪ Revenues of approx. SEK 80m ▪ Minimal impact on net debt/EBITDA pro forma
Page 9
MOVE TO CREATE A FLATTER ORGANISATION 9 MORE EFFFICIENT GOVERNANCE ▪ One level between Group management and subsidiaries to be removed; each subsidiary will report to a COB ▪ To further optimise governance, a number of smaller subsidiaries will be incorporated as divisions of larger subsidiaries; the number of units in Fasadgruppen will decrease by around 10 ▪ Better opportunities to both reduce costs and increase profitability over time Group management team ▪ Martin Jacobsson, CEO ▪ Casper Tamm, CFO ▪ Daniél Bergman, Head of M&A ▪ Jan Erik Pedersen, Subsidiary Chair ▪ Peter Andersen, Subsidiary Chair ▪ Johan Fägerlind, Subsidiary Chair ▪ Dave Higgins, Director Clear Line ▪ Petri Mahanen, Director Rovakate
Page 10
FINANCIAL TARGETS 10 LONG-TERM VALUE CREATION Net sales growth Cash conversion Profitability Capital structure Dividend policy An average net sales growth of at least 15 percent per year over a business cycle. The growth should be achieved organically as well as through acquisitions. EBITA margin of at least 10 percent per year over a business cycle. Cash conversion of 100 percent. The net debt in relation to adjusted EBITDA shall not exceed a ratio of 2.5. Leverage can temporarily be higher, for example in connection with larger acquisitions. Fasadgruppen’s target is to distribute 30 percent of the Group’s consolidated net income, taking into consideration other factors such as financial position, cash flow and growth opportunities. -3.6% 5.7% 118.5% 3.3x 0% 2024
Page 11
DIVIDEND POLICY REMOVED 11 A CLARIFICATION OF THE GROUP’S CAPITAL ALLOCATION PRIORITIES ▪ Previous policy of distributing 30% of net profit as dividend does not align with overall capital allocation strategy and growth possibilities ▪ The Board believes that greater shareholder value will be created by initially focusing on decreasing the leverage back below 2.5x, then followed by continued focus on growth through acquisitions and other organic initiatives
Page 12
PRIORITIES 2025-2028 FOCUSING ON PROFITABLE GROWTH 12 PROFITABILITY GROWTH LEVERAGE ▪ Grasp organic opportunities ▪ Continued consolidation of Nordic market ▪ Expand UK footprint ▪ Return to net debt/EBITDA below 2.5x ▪ Ensure continuous improvements in subsidiaries ▪ Focus on efficiency in operations ▪ Increase cooperation within the group Main priorities 2025-2028 Focus 2025
Page 13
CONCLUDING REMARKS ▪ A disappointing development in 2024 driven by tough market situation in Sweden ▪ Strategic acquisition of Clear Line ▪ Positive signs from order backlog development ▪ New, flatter organisation with more efficient governance ▪ Profitability improvements and de-leveraging top priorities in 2025 ▪ Segment reporting to be introduced from Q1 2025 2025 A YEAR OF DELEVERAGING AND PROFITABILITY MEASURES 13
Page 14
Q&A PRESENTATION MATERIAL IS AVAILABLE AT CORPORATE.FASADGRUPPEN.SE