YA Holding AB (publ) Investor presentation Q1 2017 Jan Larsson CEO - - PowerPoint PPT Presentation

YA Holding AB (publ)

Investor presentation Q1 2017 Jan Larsson CEO Mikael Vesterlund CFO Presentation made June 1 2017

2

Participants

CEO Jan Larsson CFO Mikael Vesterlund

3

20000 40000 60000 80000 100000 120000 140000 160000 180000 200000 5000 10000 15000 20000 25000 30000 35000 40000 45000 2014-01 2014-03 2014-05 2014-07 2014-09 2014-11 2015-01 2015-03 2015-05 2015-07 2015-09 2015-11 2016-01 2016-03 2016-05 2016-07 2016-09 2016-11 2017-01 2017-03 In reception system Applications for asylum Granted Right hand scale, stock Left hand scale, per month

Continued stable inflow to labour market:

• 2.300 granted

permissions in March, back to ”normal” pace

• Average handling time in

March was 414 days, increasing with 22 days in one month

• Proportion granted

excluding Dublin cases etc down to 56%

Inflow of asylum seekers continue to be low, but a steady inflow from stock to labour market

Source: The Swedish Migration Board, Migrationsverket

4

50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 450 000 jan mar maj jul sep nov jan mar maj jul sep nov jan mars maj juli sep nov jan mars Open In programmes

2014 2015 2016

Unemployment up for the first time since 2013

Continued need for matching and training:

• Unemployment increased

in April for the first time since 2013 (364.000, +4.000)

• 4.0% unemployment

among born in Sweden. 22.1% among born abroad.

• Unemployment down

among those born i Europe.

• Increases among people

born outside of Europe (169’, +17’)

• Youth unemployment

continues down to 10,2%

• Participants in establishing

program up to 76.000, 62.000 unemployed

Source: The Swedish Public Employment Service, Arbetsförmedlingen

Unemployment Sweden 2014-2017

Huge deficit of skilled labour..

Total private sector Lack of labour (share yes-answers)

• 38% of Swedish

business answer yes to whether they experience shortage of labour

• Demand for skilled

labour higher than ever after the IT crises in 2007

Source: Konjunkturinstitutet

…in both services and manufacturing

Manufacturing industry, Lack off…

Blue collar workers Technical white collar staff Low demand Lack of labour

Private services Largest obstacle for operations

7

• AUB market stabilize at low levels historically
• YA’s volumes and market share is recovering

Source: The Swedish Public Employment Service, Arbetsförmedlingen

Volume of people in labour market education seems to have stabilized

8

Budget frames for unemployment activity confirms role of education in reducing skills deficit

Source: tate budget, ”Utgiftsområde 14” 8,7 9,6 9,4 12,2 15,1 17 17,8 30,1 31,3 30,4 30,4 26,3 24,1 23,9 6,9 7,4 7,4 7,8 7,7 7,7 7,2 10 20 30 40 50 60 2014 2015 2016 2017 2018 2019 2020 AF förvaltningskostnader Bidrag till arbetslöshetsersättning och aktivitetsstöd Arbetsmarknadspolitiska program och insatser

9

Profit & loss Q1 2017

Revenues were SEK 90.6 million (112.4) in the quarter. The average number of students in AUB has been 1433 (1817) for the period. The decline versus prior year is due to terminated business within truck/bus. EBITDA amounted to SEK 6.1 million (21.0)

10

Normalized EBITDA

EBITDA

(SEK million)

Reported EBITDA 21.0 10.0 2.0 7.6 6.1 Non recurring cost +3.0 Other income Normalized EBITDA 21.0 13.0 2.0 7.6 6.1 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

11

Balance sheet & cash flow Q1 2017

Cash balance amounted to SEK 4.8 million (20.8) at the end of the quarter, bank overdraft facility (SEK 30 million) used to SEK 8,6 million. Cash flow amounted to SEK -17.6 million (2.2). Cash flow from operating activities amounted to SEK -24.0 million (10.5). Change in Working capital was SEK -22.4 million (8.9). Net debt amounted to SEK 383.0 million (380.8).

12

Cash flow Q1 2017

(SEK millions) Jan-Mar

EBITDA 6,1 Change in working capital

• 22,4

Cash flow before interest and taxes

• 16,3

Interest paid

• 7,3

Income tax paid

• 0,4

Cash flow from operating activities

• 24,0

Cash flow from investing activities

• 4

Cash flow from financing activities 10,4 Cash flow for the period

• 17,6

13

Covenants

Actual Target Leverage (Net debt/EBITDA) 13.2x <3.0x Interest coverage (EBITDA/Net finance charges) 1.1x >2.5x

14

• 150
• 100
• 50

50 100 150 200 250 300 Q4 2016 Loss Estimated regains:

Truck Bus

+70

• 125

80 +30

Q3 2016

Insulation Fitter

+30 +85 285 +205

Q1 2017 Q2 2016 Q2 2017

After end of quarter: Bus and truck driver tenders resulted in higher volumes than in 2015

• Turn-over value of

more than SEK250m yet to be started

• Start-up costs will

affect results in all

• f 2017
• Bus education in

Östersund is appealed, as is Yrkessvenska.

• Approx SEK50-

100m of turn over value not secured due to court processes or lower than expected student inflow

Truck Bus

15

Thank You!