Volati Annual report 2021

2021Volati in brief �� 3 A stronger Volati �� 4 Comments from the CEO �� 6 Long-term value growth �� 10 Financial targets �� 14 Acquisitions �� 16 Comments from the Chairman �� 20 A value-creating business model �� 22 Case: Ettiketto Group �� 28 Case: Volati Management Program �� 30 Business Area Salix Group �� 32 Business Area Industry �� 38 Share information �� 42 Administration Report �� 47 Sustainability Report �� 51 Risks and uncertainties �� 66 Corporate Governance Report �� 70 Financial Statements – Group �� 86 Notes – Group �� 90 Financial Statements – Parent Company �� 133 Notes – Parent Company �� 137 Auditor’s Report �� 142 About the Annual Report: In Q2 2021, a separate listing of the Bokusgruppen business area was carried out. In Q4 2020, the Consumer business area was closed down after its operations were divested. This means that the income statements for 2020 and 2021 have been restated, in accordance with applicable ﬁnancial reporting standards, and exclude the Consumer and Bokusgruppen business areas. The descriptions of operations and companies in the annual report focus on continuing operations unless otherwise stated. The formal annual report is on pages 47–141. The statutory sustainability report can be found on pages 51–65. This report is a translation of the Swedish original. In the event of discrepancies, the Swedish version shall prevail. contents1,800 employees 18 countries Home markets Presence through subsidiariesVolati in brief Volati acquires and develops strong, successful businesses, with a focus on creating long-term value growth. Through an active acquisition strategy and its vision to be regarded as Sweden’s best owner of medium-sized companies, Volati has delivered strong and sustainable growth in proﬁtability since the start in 2003. Volati primarily owns Nordic companies, predominantly in Sweden. Volati has been listed on Nasdaq Stockholm since 2016. Salix Group A Nordic market-leading trading group with a hundred-year history. Industry Five platforms with market-leading positions and high growth potential. two business areas 3 EBITA growth per ordinary share Return on adjusted equity, continuing operations Net debt/ EBITDA Q3 2020 LTM 2021 Despite the discontinuation of two business areas and a total distribution of SEK 1.7 billion to Volati’s shareholders, Volati has increased EBITA by 12 percent and strengthened all key ﬁgures compared with Q3 2020 when the Company consisted of four business areas. A stronger Volati Over the last 15 months, we have focused the business and built a stronger Volati. • The closure of the Consumer business area was completed at the end of 2020. • In June, the distribution of Bokusgruppen to Volati’s ordinary shareholders was completed. • During the year, shareholders received a total of SEK 1.7 billion in cash dividend payments and the in-kind distribution of Bokusgruppen. • Eight acquisitions added 1.1 billion in annual sales. Seven of these were add-on acquisi- tions with synergies that will eventually increase EBITA by 50 percent in the acquired companies. • During the year, appointments were made under our management succession plan – Andreas Stenbäck, President and CEO, Martin Aronsson, CFO, and Martin Hansson, CEO and Head of Business Area Salix Group. • Volati has successfully dealt with the challenges in the wake of the pandemic and these have had only a limited impact on margins. SEK 594 million SEK 664 million 21%58% 20%38% 1.4x1.3x We have distributed SEK 1.7 billion while making 8 acquisitions and increasing EBITA by 12% 2021 in brief 4Key ﬁgures Full year 2021 Full year 2020 Full year 2019 Full year 2018 Full year 2017 Net sales*6,3094,9214,1456,0844,356 EBITA*664421312433377 EBIT*620394292366345 Net proﬁt522977–2274241 Proﬁt for the year from continuing operations*442246184–– Operating cash ﬂow*487550310475513 Net debt/adjusted EBITDA, x 1.3–0.81.51.71.2 Earnings per ordinary share, SEK 5.4211.370.132.582.19 Earnings per ordinary share, continuing operations, SEK*4.422.151.42–– Return on adjusted equity, %4051–41312 * The years 2019–2020 do not include discontinued operations. For the years 2020–2021, see also note 5. EBITA by business areaNet sales by business area 52%48% The distribution by business area is not calculated proforma for the year’s acquisitions. Acquired companies are included in the above calculation from the acquisition closing date. The business areas’ shares are calculated excluding central costs. Divested operations are included in the relevant business area up to the divestment date. Distribution by business area Salix Group, SEK 3,262 million Industry, SEK 3,050 million Salix Group, SEK 329 million Industry, SEK 397 million 45%55% 5 2021 in brief2021 was an eventful and successful year for Volati. We implemented a clear streamlining of the Group during the year, and Volati is currently very well positioned with two fast-growing business areas, Salix Group and Industry, and an acquisition model that creates long-term value. A strong Group in great shape We can look back on an intense year in which we completed the streamlining of Volati and at the same time created signiﬁcant value by successfully growing and developing the Group. The results of these efforts speak for themselves. Compared with rolling 12-month ﬁgures for Q3 2020 – when the Group still consisted of four business areas – we have signiﬁcantly strengthened key performance measures. EBITA is higher and the growth rate has increased from an EBITA growth per ordinary share of 21 to 58 percent. Our growth is also clearly value-creating, with a return on equity that has increased from 20 to 38 percent. Despite eight completed acquisitions and a distribution of SEK 1.7 billion to share- holders – in the form of cash dividends and the Bokusgruppen distribution – we have a low and unchanged net debt/EBITDA ratio of 1.3 times. This is a development we are proud of. Creating value through active ownership Volati’s vision is to be regarded as Sweden’s best owner of medium-sized companies. What Comments from the CEO 7 Comments from the CEONext >