Hi, welcome to Storskogen and our quarterly presentation for the second quarter in 2021. My name is Daniel Kaplan, I'm the CEO and co-founder of Storskogen. Together with me, I have Lena Glader, CFO. Today we'll, as usual, have three sections, a presentation of the quarterly report. We'll go deeper into our business area trade together with Christer Hansson, who's heading that business area, as well as with Jonas Cedås, who's the CEO of Båstad-Gruppen and one of our business units. How did we perform in the second quarter? We had a very strong quarter. We had a 32% organic EBITDA growth. We did 25 acquisitions. The focus for the quarter has been truly the organic growth. We had a high acquisition activity in general, both internationally with a significant increase in deal flow. We also conducted, like we told you in the last quarterly report, a capital injection during the later part of the spring, and in the end it turned out to be SEK 3.7 billion in new equity being brought into the company. We're continuing our international expansion, setting up our teams in DACH and the U.K., and through the acquisitions we're currently active with 7,000 employees in 21 countries. Things are really moving along. If you take the quarter in numbers, we had a turnover of SEK 3.8 billion, and an EBITDA of SEK 383 billion adjusted. This actually brings us up together with all the acquisitions, including a few that are not yet closed but signed up to SEK 2.25 billion in run rate as if we would have owned all of these companies for 12 months. Moving ahead, Lena? Thank you, Daniel. Well, as you heard already, it was a very active quarter for Storskogen, to say the least. Activity was seen basically in two areas. One is the organic operational activity that resulted in, with strong pent-up demand among customers, strengthened market positions in almost all business segments, and then work with cost control and cash flow management that resulted in very strong cash flow and solid profitability as well. You can see this in the organic sales growth, that was 21% in the second quarter compared to the second quarter last year. We had, as Daniel said, a total revenue of SEK 3.8 billion in Q2, in the last 12 months, our owned period, the revenue was SEK 11.5 billion. The work with the cost control and profitability and the strong tailwind that the companies had also resulted in a solid EBITDA margin, adjusted EBITDA margin of 10% in the second quarter. It might seem here as though the margin actually fell compared to last year, bear in mind that the profit last year included some government grants related to COVID-19 that actually represent approximately 1 percentage point of margins in Q2 last year. Actually, fundamentally, it was a margin improvement compared to last year. Finally, we had very strong cash flow, as you can see here. We have worked hard with cash flow throughout this year and last year, and it resulted in a cash conversion rate of 175%. Now, this is an exceptionally high cash conversion in Q2. Looking at the last 12 months, the cash conversion was 111%. That's also very strong and stronger than, I would say, a normal year. Overall, good growth, organic growth in revenue, organic growth also at 32% in EBITDA, solid margins. Then the other part of the activity is the M&A activity that Daniel mentioned here. This can be seen in the RTM column here to the right. RTM is, as you said, that is as if Storskogen had owned all subsidiaries during the entire last 12-month period. Here we can actually see what the acquisition activity has resulted in. This is the run rate of Storskogen's earnings capacity. That run rate is, per the end of Q2, a revenue of SEK 18.6 billion and an EBITDA level of SEK 2.1 billion, as if we'd owned all these companies. Just as you said, we've made some acquisitions also after Q2, and if we add those, then we would add another SEK 1 billion to revenue, and we would have an EBITDA of roughly SEK 2.25 billion. Finally, the net debt to EBITDA, which has remained on a comfortable level at around 2.6 times the RTM EBITDA. That's been kept under control despite these acquisitions, thanks to share issues and that Daniel, I think we'll come back to later. On this page, we show the quarter-on-quarter performance or development of the revenue to the left, where you can see that the bar to the right there has grown significantly from Q1, and that's partly thanks to acquisitions, obviously, but also to the strong organic growth. The EBITDA margin has been kept at around 10% throughout the periods. To the right here, we show the LTM EBITDA, that's our owned 12-month period on a rolling basis. You can see that the LTM is SEK 1.1 billion per the end of Q2. As I just previously said, if we'd owned all the companies that entire 12-month period, EBITDA would have been roughly SEK 2.1 billion, as you can see here. Now, that's almost twice as high as the owned period EBITDA. That's the earnings capacity of Storskogen today. How are the operations doing, Daniel? Exactly. The answer is, they're doing quite well. If you look at our three business areas, I think in general, they were very proactive during COVID, being very careful with cost control and monitoring cash flows, which you've seen on our great cash conversion. We bring that with us into 2021. In addition to that, we can see, of course, that demand is increasing, and you have a good sentiment in almost all sub-sectors. If we look at trade with SEK 3.5 billion in turnover, we see a very strong organic growth, 51%. Trade actually delivered even last year. They had a decent growth even then. This year, the companies are well-positioned, they are really appreciated by their customers, and they have a strong market position in most of their areas. It's a healthy growth, and we'll go into a little bit more about the fantastic work that's being done out in the business units to create this organic growth. Of course, one of the deliverables of this, one of the results is, of course, a higher EBITDA margin. In addition to that, 11 acquisitions, lots of add-on acquisitions, strengthening each and every company significantly. If we look at services had a 29% EBITDA growth during the first half of the year, which is very strong being services companies. We see a mixed performance where some aspects, some segments such as installation, have more difficulties, but as a rule across digital services, education and HR, logistics, engineering, most of these areas go very well and perform extremely well. With a total of nine acquisitions, it remains also our biggest business area with almost SEK 5 billion in LTM revenue. If we take industry of course had a poor performance last year in the second quarter, even though we actually had an organic growth on the total. With SEK 2.9 billion in turnover and extremely good, strong organic growth compared to last year, not only because of the comparison to last year, but also because a lot of the companies are performing really well. Once again, the product companies especially, I think are growing very well. We've done a number of acquisitions. We'll get into that later. Five significant acquisitions, industry is growing very quickly. Very strong margins as well. Going deeper into the acquisitions we've made, 25 acquisitions, 32 if you include the ones that we've signed. We'll close them in the second quarter, a few of them at least, in the third quarter, sorry, or fourth quarter. We have an increase in deal flow, a significant increase, especially internationally. We just started off, but already more than 1/3 of our entire deal flow is from our new geographies. I think as we're really getting our teams into place now in the U.K. and DACH, I think that will increase significantly over time. I think we've shown that we are more and more able to handle complex transactions. We've done a few significant and bigger acquisitions. We talked last quarter about Wibe Group. This time it's Brenderup, another great company with a market-leading position. We did our first German acquisition of Roleff, and then we followed up with the acquisition of Artum. Artum is basically a Storskogen based in Switzerland and Germany. We're getting a full team with 10 years of experience, and it's a strategic game changer for us in that region. They have a very strong brand name, and culturally, they are very similar to us. We're really looking forward to this partnership together with Artum. Of course, a portfolio of great companies that we already see that are performing. That's fantastic. In addition to that, we've bought another portfolio, which we will close in October. How come we're so successful? Well, it all boils down to culture. I think as we grow, when we recruit a lot of people, the cultural fit is the key. What has driven our success so far, if you talk about our core values, it's entrepreneurship, it's looking and finding opportunities, driving profitability, but also daring to make decisions without necessarily having all information, and being curious and developing the business. In addition to that, we believe that one of our core strengths is that we are respectful of the entrepreneurs and the CEOs and the management teams are part of our decentralized model, and also towards each other, being careful and humble in our approach towards the challenges that we face. We are truly long-term. We have done 142 acquisitions. We've never divested any. We have never discontinued operations. We don't give up easily. We see to it, and almost all of our business units are in fact profitable. We have a great responsibility when we buy a company. We intend to fulfill that for our employees and society as a whole, and of course to our shareholders to create value. In addition to that, this is where it becomes interesting, I think the friction between the different value words, professional, to always hunt for that operational excellence to improve just a little bit every day, measuring, reporting, and being a big company and a small one as well. I think that combination, if we manage to see the opportunities, we put in the hard work, and we're really prioritizing long-term decisions and being respectful of the challenges and each other, I think that will be the grounds for continuous success. If you talk about strategic developments, well, as you've seen, we've grown from 12 countries of operations to 21. We are seeing significantly a bigger team, both in Stockholm, U.K., and DACH. A lot of our work now is about consolidating, understanding, and running, managing our internationalization and our organization so that we can continue to scale operations and do acquisitions and be successful with quality. We're looking at a calmer third quarter as always. It's seasonal. We don't do as many acquisitions during autumn. This will give us time to really focus on our companies and operational improvements going forward. We talked about the private placement we did. These were necessary for us to enable us to do the acquisitions that we've done with a decent net debt to EBITDA multiple. It's very important for us, and we thank you for that support. Most of that capital injection actually came from company sellers in addition to big investors. Unfortunately, employees and current shareholders were not invited, but this was in fact a must for us, so we couldn't do it in other way. We're continuing to evaluate the IPO opportunity, and we'll continue, and if the market allows and so, we'll go forward with those plans. That was that about Storskogen this far. I think we're happy with another strong quarter. Great operations, organic growth, great acquisitions, and I think the team both in Sweden and internationally are really performing. Exciting times indeed. Agreed. Exactly. Thank you very much. Thank you. Bye.
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