YA Holding AB (publ) Investor presentation Q3 2016 Jan Larsson CEO - - PowerPoint PPT Presentation

YA Holding AB (publ)

Investor presentation Q3 2016 Jan Larsson CEO Mikael Vesterlund CFO Presentation made 25/11/2016

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Participants

CEO Jan Larsson CFO Mikael Vesterlund

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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 In reception system Applications for asylum Granted Right hand scale, stock Left hand scale, per month

Delayed effect on market:

• Inflow lower than before

the asylum wave

• Average handling time

361 days, 124 days longer than in January

• # of decisions continues to

increase to >10.000 per month

• # of granted permits stays
• high. 61% (6.000) in

September, and increasing

• >50% granted on average
• 138.000 asylum seekers

in system, 115.000 with no asylum decision

Inflow of asylum seekers low, but increase in decision speed will lead to more job seekers

Source: The Swedish Migration Board, Migrationsverket

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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 sept Open In programmes

2014 2015 2016

Unemployment down, but increases among those born outside of Europe

Continued need for matching and training:

• 76.000 vacant positions,

+27% in 12 months

• # of unemployed who got a

job in Sep: 40.000 (-5.4%)

• Youth unemployment 61.000

(11.7%), lowest since 2008

• Primarilly youth w/out

secondary education

• Unemployed born out of

Europe up 16.000 to 155.000

• 52.000 unemployed in

”Establishing mission” (+10.000)

Source: The Swedish Public Employment Service, Arbetsförmedlingen

Unemployment

Number of people

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Same market share in labour training as 12 months ago despite close-down of warehouse and transport courses

Volume growth

• Participants in labour

education down 12 %

• YA’s participants down

by 14%.

• > ½ of turnover effect

from close-down of warehouse and transport counteracted by increasing participation in existing courses:

• machine
• perator/excavator
• real estate
• industry

Source: The Swedish Public Employment Service, Arbetsförmedlingen

Labour training participants

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Profit & loss Q3 2016

Revenues were SEK 67.7 million (77.1) in the quarter. The average number of students in AUB has been 1125 (1171) for the period. A decline in truck and bus education compared to prior year. EBITDA amounted to SEK 2.0 million (7.8) Decreased revenue due to terminated business has generated a lower result during the quarter.

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Normalized EBITDA

EBITDA

(SEK million)

Reported EBITDA 13.2 10.0 7.8 9.2 21.0 10.0 2,0 Non recurring cost +1.6 +2.1 +3.0 Other income Normalized EBITDA 14.8 10.0 7.8 11.3 21.0 13.0 2,0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

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Balance sheet & cash flow Q3 2016

Cash balance amounted to SEK 18.5 million (9.8) at the end of the quarter, bank overdraft facility (SEK 30 million) not used. Cash flow amounted to SEK -10.3 million (0.1). Cash flow from operating activities amounted to SEK -9.8 million (-0.4). Change in Working capital was SEK -3.3million (1.0). Net debt amounted to SEK 378.2 million (403.2).

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Cash flow Q3 2016

(SEK millions)

EBITDA 2,0 Change in working capital

• 3,3

Cash flow before interest and taxes

• 1,3

Interest paid

• 8,0

Income tax paid

• 0,6

Cash flow from operating activities

• 9,9

Cash flow from investing activities 1,4 Cash flow from financing activities

• 1,8

Cash flow for the period

• 10,3

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Key Ratios (Covenants)

Actual Target Leverage (Net debt/EBITDA) 8.0x <3.0x Interest coverage (EBITDA/Net finance charges) 1.8x >2.5x

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After the truck and bus tender, a combined cost reduction and growth plan has been executed

New educations H2 2016:

• Construction
• Vehicle mechanics
• Chef and restaurant worker
• Professional cleaner

New customers H2 2016:

• Municipalities
• Industrial corporates
• Penitentiary education
• Vaasa, Finland

Legal appeal:

• Supreme Court
• Decision Dec-Feb
• If new tender, earliest start

in September Profitable growth program

• Losses of turn-over and regain plan:
• 140
• 120
• 100
• 80
• 60
• 40
• 20

20 40 60

Potential regain Decisions Q4* Loss in transport tender Regain Decisions Q2

Truck Bus Vehicle Mechanics 30-40 VUX Tenders 30-40 Cons- truction

+60-70

• 125

~80*

* Estimate based on historic win-ratio and expected number of bidders. Restaurant education decision in Q4 included under the assumption that volumes will be as today

+20-30

Other

Regain Decisions Q3

Other & Vux AF

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Thank You!