Nilfisk Holding A/s · OMXCOP:NLFSK
Nilfisk Holding A/s — Investor Day (April 2022)
101 slides from Nilfisk Holding A/s's investor day presentation, Apr 5, 2022
Slide 1: Capital Markets Day 2022
Insert your presentation title here Capital Markets Day 2022 5 April, 2022
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements, including statements regarding Nilfisk’s future operating profit, financial position, inventory, cash flows, strategic priorities as well as plans for the future. Forward-looking statements include, without limitation,
Slide 3: Agenda
Agenda Topic 1 Business Plan 2026 Presenter Strategic direction and Business Plan 2026 Torsten Türling CEO Financials and building the execution engine Reinhard Mayer CFO Culture for successful strategy execution Jacob Blom EVP, Head of HR Topic 2 Growth platforms for long-term sustainable value cre
Slide 4: Strategic direction and Business Plan 2026
Strategic direction and Business Plan 2026 CEO Torsten Türling
Slide 5: Growth focus towards 2026 based on a strong execution engine
Nilfisk – a resilient company founded on entrepreneurship in 1906 A global market leader with Danish roots sets out to win in 2026 with Business Plan 2026 Growth focus towards 2026 based on a strong execution engine 2021 2026 Revenue Revenue 995 mEUR 1.2 1.3 to bnEUR 115 years 120 years Founder: P.
Slide 6: Nilfisk is a global company
Nilfisk is a global company US is our largest revenue country with underrepresented market share Our geographies Total revenue 2021 995 mEUR Share of revenue 2021 Our key markets Share of revenue 2021 USA 25% 61% 30% Germany 12% 9% France 11% United Kingdom 5% Denmark 5% 0 10 20 30 6 CAPITAL MARKETS
Slide 7: Professional cleaning equipment is an attractive market
Professional cleaning equipment is an attractive market 91% of Nilfisk revenue is within professional cleaning Nilfisk revenue split Global market value of the professional cleaning 2021 2021 Consumer 9% APAC 1.6 bnEUR Americas 995 mEUR Professional 7.5 bnEUR 3.0 2021 bnEUR 2021 2.9 91% bnEUR Europe
Slide 8: Professional cleaning is a long-term growth market
Professional cleaning is a long-term growth market Developed countries are the key drivers for growth due to rising salaries and labor shortages Market size of professional cleaning equipment/GVA Global market value % bnEUR 0.30 +1.2 Denmark >8.7 0.25 Sweden Germany 7.5 France 0.20 0.15 United State
Slide 9: Key trends and market drivers further accelerating market growth
Key trends and market drivers further accelerating market growth Industry has a high proportion in the premium market segment 1 Increasing importance of clean providing healthier and safer environments (regulatory) Entry 15% Premium 2 Labor shortage and rising labor costs in developed countries Larg
Slide 10: Important application segments are growing faster than average
Important application segments are growing faster than average Nilfisk is well placed to gain share in focused segments Contract cleaners Logistic & warehouse Healthcare Retail Manufacturing Education % of global market 29% 18% 11% 7% Growth potential ++ +++ ++ + 10 CAPITAL MARKETS DAY 2022
Slide 11: Nilfisk with widest breadth of product solutions in the industry
Nilfisk with widest breadth of product solutions in the industry Unparallel capability to provide comprehensive product and service solutions to our customer base Floorcare Vacuum cleaners High-pressure washers Parts & Services Commercial Industrial Proportion of sales 2021 34% 22% 14% 30% 11 CAPITA
Slide 12: Preparing for long-term, sustainable growth
Preparing for long-term, sustainable growth Nilfisk demonstrated a remarkable financial recovery in 2021 Revenue Strategy review H2 2021 mEUR 1.2-1.3 bn Create fact base: what went wrong? 1.082 1.054 967 995 833 Assess value creation potential 2017 2018 2019 2020 2021 2026 Identify underutilized opp
Slide 13: Our ambition is to become the recognized leader
Nilfisk strategy is focused on long-term, sustainable growth Future Nilfisk value proposition based on Customer focus and Sustainability Our ambition is to become the recognized leader in the professional cleaning equipment industry 13 CAPITAL MARKETS DAY 2022
Slide 14: Nilfisk strategy is focused on long-term, sustainable growth
Nilfisk strategy is focused on long-term, sustainable growth Focus on long-term sustainable growth 14 CAPITAL MARKETS DAY 2022
Slide 15: Investments to enable long-term sustainable growth
Investments to enable long-term sustainable growth Business Plan 2026 caters for the necessary investments creating scalable growth platforms Enhance supply Lead with Digitally-enabled WoW chain robustness sustainable products Growth capacity in Product upgrades & kick-off IT systems & manufacturing
Slide 16: Build execution strength by forming new Ways of Working
Nilfisk strategy focused on long-term, sustainable growth Build execution strength by forming new Ways of Working (WoW) ‘People are the most essential part in successful execution’ ‘Empowered people are the pre-requisite for an execution-focused organization’ 16 CAPITAL MARKETS DAY 2022
Slide 17: Mobilizing the entire organization for successful execution
Mobilizing the entire organization for successful execution Empowering the people who drive front line execution to success 1 Add EVP Service Business position to executive leadership External appointment announced today Nilfisk ONE company approach Delegate holistic responsibility to Americas regio
Slide 18: Empowered people thrive in an enabling culture
Empowered people thrive in an enabling culture We are evolving towards a culture of Growth Mindset, Collaboration, and Sustainability The culture we want to build “The fundamental belief that capabilities can grow over time and that any setback is an opportunity to learn, adapt, and grow” 1 Growth M
Slide 19: Business Plan 2026
Business Plan 2026 Focus on long-term sustainable growth 19 CAPITAL MARKETS DAY 2022
Slide 20: We focus on long term, sustainable growth
We focus on long term, sustainable growth Improved execution performance from revised strategic focus and the new Ways-of-Working Nilfisk Next Multiple directions at the same time: Simplify – Digitize – Focus on Growth and its respective enablers Grow - Lead • build scalable growth platforms ➢ Dives
Slide 21: Nilfisk Leadership Team
Nilfisk Leadership Team Sharing the vision and jointly focused on execution Hans Flemming Jensen Torsten Türling Reinhard Mayer Jacob Blom EVP Specialty Business & Corporate CEO – Joined 2021 CFO – Joined 2021 EVP HR – Joined 2016 Affairs – Joined 2016 Steen Lindbo Camilla Ramby Pierre Mikaelsson Sø
Slide 22: Financials and building the execution engine
Financials and building the execution engine CFO Reinhard Mayer
Slide 23: A strong financial foundation for future growth
A strong financial foundation for future growth 2021 was a record-setting year 994.9 mEUR 20.7 % 43.6 % 14.5 % Revenue Organic revenue growth EBITDA growth bsi EBITDA margin bsi 23 CAPITAL MARKETS DAY 2022
Slide 24: Financial targets for 2026
Financial targets for 2026 Sustainable long-term growth LONG-TERM GROWTH ENSURING PROFITABLE GROWTH INVESTING IN GROWTH AND SUSTAINABILITY INVESTMENT GRADE COMPANY 1.2 to 1.3 bnEUR Above 16% 3% to 4% 1.5x to 2.0x Revenue in 2026 EBITDA margin before special items CAPEX in % of sales Gearing 24 CAPIT
Slide 25: Financial targets for 2026: Revenue by Business Unit
Financial targets for 2026: Revenue by Business Unit Business focus and rigorous execution to drive revenue growth towards 2026 Growth platforms to generate solid revenue increase in 5 years mEUR 1.2 to 1.3 bnEUR Total revenue in 2026 80-120 20-30 5-15 1,200 – 1,300 100-140 995 Business units to dri
Slide 26: Financial targets for 2026: Revenue by geography
Financial targets for 2026: Revenue by geography Business focus and rigorous execution to drive revenue growth towards 2026 Growth platforms to generate solid revenue increase in 5 years mEUR 1.2 to 1.3 bnEUR Total revenue in 2026 85-125 20-30 1,200 – 1,300 100-150 995 Markets to drive revenue • Eur
Slide 27: Financial targets for 2026: EBITDA margin improvement
Financial targets for 2026: EBITDA margin improvement Gross profit margin expansion to drive profitability improvement leading to EBITDA margin increase Revenue increase from growth platforms to drive margin Above 16% EBITDA margin before special items (%) 0.8-1.0% >16% EBITDA margin bis in 2026 Dri
Slide 28: Financial targets for 2026: Invest to improve
Financial targets for 2026: Invest to improve Investments into innovation, processes, manufacturing capacities, digitization and people CAPEX to be phased in Business Plan 2026 % of revenue 3 to 4 % CAPEX in % of sales CAPEX to increase within ~3% • R&D • Operations • IT & Data 1.8% 2021 2022 2023 2
Slide 29: Financial targets for 2026: Invest to improve
Financial targets for 2026: Invest to improve Investments into innovation, processes, manufacturing capacities, digitization and people OPEX to be phased in Business Plan 2026 Initiatives BP26 mEUR Baseline 32% 319 Overhead in % of sales 2021 Overhead to increase within • Service-as-a-business • Sal
Slide 30: Cash flow generation to benefit from profitable growth
Cash flow generation to benefit from profitable growth Free cash flow to improve towards 2026 mEUR 58.5 mEUR Free cash flow 2021 Actions - tailwinds • Revenue • EBITDA • Finance expense 58.5 • Tax ratio Actions - headwinds • CAPEX • Working capital • Paid tax 2021 Volume EBITDA Financial Tax CAPEX N
Slide 31: Capital structure and financial gearing
Capital structure and financial gearing Capital allocation principles towards 2026 Financial gearing Capital allocation policy “When the gearing is sustainably within 2.3x 1.5 - 2x the target range, distributions by way of dividends are expected at around one Financial gearing Financial gearing targ
Slide 32: Ways of working: Nilfisk Operating System (NOS)
Ways of working: Nilfisk Operating System (NOS) Building the execution engine to harvest our growth and profitability potential Shortcomings The way to improve Identified during the strategy review To harvest growth and profitability potential • Re-align executive team around Business Plan 2026 • Re
Slide 33: Nilfisk Operating System (NOS)
Nilfisk Operating System (NOS) Used to track value drivers and initiatives Top level strategy deployment Manage projects and resources Manage projects and resources Nilfisk Operating System Act Plan Learning Organization Check Do Manage daily business Manage business improvement 33 CAPITAL MARKETS D
Slide 34: Nilfisk Operating System (NOS): Culture
Nilfisk Operating System (NOS): Culture Culture to ensure that we get better every day Nilfisk Operating System Continuous improvement 80/20 mindset • Acknowledging gaps • Identify the critical gaps • Kaizen mentality • Focus efforts on activities with significant • Across all business processes imp
Slide 35: Nilfisk Operating System (NOS): Tools
Nilfisk Operating System (NOS): Tools Powerful tools helping us getting better every day Nilfisk Operating System Root cause counter measure (RCCM) RCCM is a problem solving methodology in which deviations of business performance from standards (i.e. problems) are identified. Analysis of problems is
Slide 36: Nilfisk Operating System (NOS): Impact
Nilfisk Operating System (NOS): Impact Impact from focus on value add to Business Plan 2026 Nilfisk Operating System Driving results and measuring what matters to achieve BP26 ! Impact Nilfisk Operating System Practice Maturity Core Business Processes & Operational Metrics Growth Above Market & Marg
Slide 37: NOS output: Workstream mapping to achieve Business Plan 2026
NOS output: Workstream mapping to achieve Business Plan 2026 Execution example: Action plans are in place for strategic priorities 37 CAPITAL MARKETS DAY 2022
Slide 38: Ways of Working: Nilfisk Operating System (NOS)
Ways of Working: Nilfisk Operating System (NOS) Learn, teach, and grow “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” Colin Powel 38 CAPITAL MARKETS DAY 2022
Slide 39: Ways of Working: Digitally enabled
Ways of Working: Digitally enabled Strong execution requires real-time data and transparency The building blocks on our digitally enabled journey in Business Plan 2026 ERP Systems Global SAP roll out to reach >90% business coverage by 2025 Business Systems Expand CRM and service system globally with
Slide 40: Business Plan 2026
Business Plan 2026 Focus on long-term sustainable growth 40 CAPITAL MARKETS DAY 2022
Slide 41: Culture for successful strategy execution
Culture for successful strategy execution Head of HR, Jacob Blom
Slide 42: Developing the culture needed to realize strategy
Developing the culture needed to realize strategy ”Culture eats strategy for breakfast” Peter Drucker Translating broad statements… … into actions Empowerment Clear accountabilities and a license to act Growth Mindset Nilfisk Operating System to enable execution Execution Staffing plans and stepping
Slide 43: Building critical capabilities
Building critical capabilities Improve Enhance Strengthen Become Elevate solution selling business mindset software more execution in service and digital data driven capabilities competences through more thorough follow up 43 CAPITAL MARKETS DAY 2022
Slide 44: Core initiatives and planned actions
Core initiatives and planned actions 1 Expand talent acquisition capabilities 2 Employer branding 3 Onboarding 4 Competence development 5 Organizational development 6 Incentives 44 CAPITAL MARKETS DAY 2022
Slide 45: Optimize European leadership position
Optimize European leadership position Head of Sales, Steen Lindbo
Slide 46: We build on a leading position to drive further growth
We build on a leading position to drive further growth 61% of Nilfisk 2021 revenue comes from our solid position on the European markets Revenue Market size 2021 professional 2021* 2026 ambition Top 10 Nilfisk markets ~2.9 bnEUR 603 mEUR ~700 750 to mEUR Germany France UK * Including revenue from Co
Slide 47: We have been winning substantial shares in strategic accounts
We have been winning substantial shares in strategic accounts Focus and activity level has proven succesful and shown untapped potential Sharpening the hunter mentality • Our competitive advantage • Long-standing customer relationships • Broad product solution portfolio • Wide service network close
Slide 48: Large opportunities for business optimization across channels
Large opportunities for business optimization across channels and customer sizes Segmented go-to market approach reflecting growth and profitability potential of segments Sales by channel and customer size Key optimization opportunities • Substantially reduce cost-to-serve for 44% 56% Micro customer
Slide 49: Optimization opportunity Europe: Untapped pricing potential
Optimization opportunity Europe: Untapped pricing potential Renewed pricing focus to harvest growth and profitability potential Untapped pricing potential Improvement levers Examples Value based pricing • Cost plus Pricing corridors • Wide price spread between comparable markets Deal pricing • Smart
Slide 50: Key value drivers for Europe optimization
Key value drivers for Europe optimization Targets in place for both revenue growth and profitability improvement Five key value drivers Revenue impact 2021-26 Direct channel equipment revenue growth Revenue growth Grow above market growth with direct accounts ++++ Service business revenue growth (CA
Slide 51: Strengthened commercial focus
Strengthened commercial focus Five key initiatives that are driving value creation throughout 2026 2022 2023 2024 2025 2026 Key milestone (Next steps) Pricing project completed Sales excellence & pricing initiative CRM process revamped Expand training organization Sales training and capability build
Slide 52: Grow in large-scale markets: US
Grow in large-scale markets: US Head of US Sales, Jamie O’Neill
Slide 53: Growing in the large-scale US market is a strategic priority
Growing in the large-scale US market is a strategic priority US is our largest country business by far with strong growth momentum in 2021 Revenue 2021 professional cleaning equipment US market Nilfisk US 2026 ambition US is expected ~2.6 253 mEUR to grow above 3% p.a. bnEUR ~340 to 380 over the nex
Slide 54: We are well positioned for long-term, sustainable growth in the US
We are well positioned for long-term, sustainable growth in the US Success factors have been implemented over the last 3 years People, Culture, Process Products and Operations Getting the right people in place Widest product offer in the industry • 2019 new commercial leader • Commercial & Industria
Slide 55: Nilfisk is a leader in the dealer channel
Nilfisk is a leader in the dealer channel Successful implementation of a revised dealer strategy Nilfisk evolution over time • Re-organized dealer channel to avoid channel conflict • Systematic dealer development program Dealer enablement / growth plans Inside sales support Sales, Marketing and Serv
Slide 56: Successful growth with Strategic Accounts
Successful growth with Strategic Accounts We have been successful in winning large key accounts Implemented changes Case study United Rentals • Focus on fewer, but larger targets • Largest rental company: + 1.100 locations nationwide • Strengthen account development plans • New concept: Facilities &
Slide 57: Business Plan 2026 makes growth in the US a top priority
Business Plan 2026 makes growth in the US a top priority Key Implementation Streams initiated 2022 2023 2024 2025 2026 Continued roll-out of commercial strategy Dealers / Strategic Accounts / Autonomous / IVS / Service High Pressure Washer business unit Capacity expansion Americas operations Innovat
Slide 58: Unleash IVS growth potential
Unleash IVS growth potential Head of IVS & Corporate Affairs, Hans Flemming Jensen
Slide 59: IVS is an attractive market with high value-creation & growth potential
IVS is an attractive market with high value-creation & growth potential Our IVS customers operate in environments with hazardous material and strict hygiene requirements where our products are vital to protect the health and safety of their people and customers Market size Highly specialized and reg
Slide 60: Nilfisk is already a global leader in the fragmented IVS market
Nilfisk is already a global leader in the fragmented IVS market With an estimated playing field of more than 600 mEUR we target a 40% growth of this business by 2026 Revenue (mEUR) “To a clear 2021 2026 ambition niche leader position, 64 mEUR +20 to 30 mEUR significantly outgrowing the market” Key C
Slide 61: Nilfisk IVS is regaining momentum as a focused business unit
Nilfisk IVS is regaining momentum as a focused business unit From ‘lost in the matrix’ to an entrepreneurial stand-alone unit, leveraging the full strength of Nilfisk global sales force Point of departure Investing in an IVS focused business unit setup NLT Specialty Leadership focus and Business spo
Slide 62: Our IVS growth plan is centered around 4 key building blocks
Our IVS growth plan is centered around 4 key building blocks Refocusing on IVS, rebuilding capabilities and leveraging our competitive strengths will drive the plan to success 1 2 3 4 Expand Increase Playing to Leveraging our sales coverage sales efficiency our strengths product leadership Increase
Slide 63: Strengthened commercial execution fueled by entrepreneurial speed
Strengthened commercial execution fueled by entrepreneurial speed Five key initiatives that are driving IVS value creation throughout 2026 2022 2023 2024 2025 2026 Key milestone (Next steps) Business unit leadership team in place Strengthen sales team in selected countries Recruiting of sales specia
Slide 64: Enhance supply chain robustness
Enhance supply chain robustness Head of Operations, Søren Pap-Tolstrup
Slide 65: Global coverage and regional presence
Global coverage and regional presence Our manufacturing- and distribution base is a strong foundation Priorities 1 Capacity for growth 2 Supply robustness 3 Cost competitiveness Manufacturing Distribution 65 CAPITAL MARKETS DAY 2022
Slide 66: US Distribution Center partly destroyed by a tornado
US Distribution Center partly destroyed by a tornado Damage currently under assessment, business continuation plan activated Plant Direct shipment 30 March: Tornado hit US Distribution BKP Center in Springdale, AK • US DC distributes spare parts and imported products in North America Site • Main bui
Slide 67: Supply capacity in place to accommodate long-term growth
Supply capacity in place to accommodate long-term growth Moderate and targeted capacity investments to drive volume, efficiency, quality, and customer service Asset-light manufacturing model: 2022 2023 2024 2025 2026 Mainly assembly operation Existing infrastructure can largely Support growth of Ind
Slide 68: Material supply is a key challenge
Material supply is a key challenge The global supply crisis has stress-tested our supply chain Unbalanced materials markets … combined with scarce freight … led to severe material shortages with scarcity and rising cost… capacity and long transit times… since early 2021 + Examples: Raw material indi
Slide 69: Strengthening supply robustness
Strengthening supply robustness Factors within our control can – and must – increase our resilience in the face of external supply challenges Dual sourcing • Establish alternative or redundant suppliers How we source Consolidation • Gain clout and priority at key suppliers Localization • Shorten lea
Slide 70: Pilot initiative to drive robustness and pricing
Pilot initiative to drive robustness and pricing A pilot initiative has been launched to confirm potential and approach to improving robustness and pricing 7 cross functional workshops conducted +25 different participants 3 sites visited Gross list of 284 ideas ~ 36 ideas currently prioritized and t
Slide 71: Gross margin improvement through material cost reduction
Gross margin improvement through material cost reduction Material cost is a key driver of margin improvement, but requires a broad-based effort to realize Analyses indicate opportunities on selected high-potential components Broad set of levers to realize opportunity Selected best-case opportunities
Slide 72: Three significant changes to enable us to grow
Three significant changes to enable us to grow We will be driving fundamental changes of focus and way of working Processes and Consolidation & restructuring continuous improvement Global & functional Regional & close to customers Fragmented Robust 72 CAPITAL MARKETS DAY 2022
Slide 73: Leading with sustainability
Leading with sustainability Head of Marketing, Camilla Ramby
Slide 74: Sustainability is anchored in our business plan and value proposition
Sustainability is anchored in our business plan and value proposition Lifecycle service Customer centric innovation Sustainability commitment Optimizing customer Ensuring technology- Creating value for value creation enabled value creation all stakeholders 74 CAPITAL MARKETS DAY 2022
Slide 75: Scope covers 99% of Nilfisk's greenhouse gas emissions
Scope 3 covers 99% of Nilfisk’s greenhouse gas emissions Scope 1&2 GHG emissions Scope 3 GHG emissions by type 12% by product category 11% 19% 30% Sales & employee fleet Production facilities Vac Other facilities 13% 45% HPW Service fleet Floorcare 70% 1% of GHG emissions 99% of GHG emissions 75 CAP
Slide 76: We are already in the leading field of our industry
We are already in the leading field of our industry Our sustainability performance and program is acknowledged by reputable organizations 14% 19% Target commitment audited 15% and approved by SBTi 53% Only 38 companies in Denmark Leadership (A/A-) and 1,270 globally have targets Implementing current
Slide 77: We have set ambitious targets to underline our ambition
We have set ambitious targets to underline our ambition to be the Sustainability leader in our industry GHG EMISSIONS SCOPE 1 AND 2 GHG EMISSIONS SCOPE 3 DIVERSITY 35% reduction 48% reduction 25% women Of direct and indirect carbon emissions Per unit of gross profit of carbon emissions In senior lea
Slide 78: Commitment to reduce Scope 3 GHG emissions by 48% in 2030
Commitment to reduce Scope 3 GHG emissions by 48% in 2030 Clear roadmap toward significant reduction of our scope 3 emissions Scope 3 GHG emission reduction pathways Key actions to meet our 2030 commitment • >25% GHG emission reduction target on all new product platforms • Mix management towards mod
Slide 79: Female share of senior leadership to increase to 25% by 2026
Female share of senior leadership to increase from 14% to 25% by 2026 Committing to diversity targets Gender split total company Key actions to meet Women Men our 2026 commitment 1.350 = 29% 3.304 = 71% • Global leadership training • Mentor program for female talents Gender split (women / men) • Rev
Slide 80: Strengthening the organizational set-up, governance and tracking
We are strengthening the organizational set-up, governance and tracking Implementation • New sustainability leadership position created • Sustainability KPIs tracked and monitored alongside business KPIs • Sustainability governed at market level to the boardroom 80 CAPITAL MARKETS DAY 2022
Slide 81: Leading with sustainable products
Leading with sustainable products Head of R&D, Pierre Mikaelsson
Slide 82: Nilfisk with widest breadth of product solutions in the industry
Nilfisk with widest breadth of product solutions in the industry Unparallel capability to provide comprehensive product and service solutions to our customer base Floorcare Vacuum Cleaners High-pressure washers Parts & Services Commercial Industrial Proportion of sales 2021 34% 22% 14% 30% 82 CAPITA
Slide 83: Nilfisk with world class R&D centers in key market geographies
Nilfisk with world class R&D centers in key market geographies Substantial investments in new product development as well as software & technology development 3% Revenue invested in R&D EUROPE FTE: 80 R&D 2021 AMERICAS FTE: 50 R&D 2021 APAC/MEA FTE: 120 R&D 2021 R&D investments 2022 to 2026 Floorcar
Slide 84: Lead with sustainable products
Lead with sustainable products Establish industry leading Value of Clean Nilfisk Value Proposition provides guiding principles Optimized for lifecycle service Differentiated by customer-centric Innovation Leading sustainability commitment 1 Upgrade existing range Connectivity & customer interface 2
Slide 85: Upgrade existing range
Upgrade existing range Enhance customer value and sustainability – immediately with upgrades User interface Connectivity Cost reduction Sustainability Battery technology 85 CAPITAL MARKETS DAY 2022
Slide 86: Establish modular product architectures
Establish modular product architectures Based on market driven, sustainable and scalable product architectures Higher sales Components Modules Module variants Product configurations 1 • Wider product offer • Configurable to customer needs • Faster innovation cycle Interface Traction Better serviceab
Slide 87: Integrate Autonomous platform
Integrate Autonomous platform Seamless integration of Autonomous functionality in portfolio for maximum customer value creation SC 50 SC 60 New services Agility Productivity Rental Precision Simplicity Data portal Customizable Large Digital task surfaces management Integration of a
Slide 88: Lead with sustainable products
Lead with sustainable products World leading sustainability performance with current portfolio 48% reduction* by 2030 Ambitious further CO2 reduction targets >25% emission reduction target with each new platform Enable customers sustainability targets through integrated process improvement 2021 2030
Slide 89: What is different
What is different We are building on existing strengths From To Autonomous dominated Autonomous integrated Catching up on sustainability Sustainability leadership Single product focused Modular architecture 89 CAPITAL MARKETS DAY 2022
Slide 90: Develop service-as-a-business
Develop service-as-a-business CEO Torsten Türling
Slide 91: Business Plan 2026
Business Plan 2026 Customer value creation with lifecycle services and developing service-as-a-Business is core to our strategy 91 CAPITAL MARKETS DAY 2022
Slide 92: Service-as-a-business
Service-as-a-business A fundamental mindset change in Nilfisk … from traditional product-centric Key benefits model of selling with reactive • Non-cyclical sales repair service • Stable growth rates at high margins … to focus on selling a total • Higher customer retention solution combining a range
Slide 93: Service at Nilfisk so far – a neglected opportunity
Service at Nilfisk so far – a neglected opportunity Benchmarking has identified significant step-change improvement opportunity Declining revenue from Service Benchmarking underlines opportunities Ambition 2026 until 2020 mEUR Service in % of total sales 30% 375-415 Industry benchmark Forklift truck
Slide 94: Nilfisk customers are professional cleaning service providers
Nilfisk customers are professional cleaning service providers Lifecycle services can have a major contribution to the customer’s profitability equation Customer P&L Contract profitability • 75 – 85% cost of cleaning is labor High Other costs + margin ~15% • Cost of cleaning equipment only 5%, typica
Slide 95: Lifecycle services for maximum customer value creation
Lifecycle services for maximum customer value creation The Diamond Model: Drive customers productivity and enhance asset value over lifecycle New equipment Service contract Success factors • Service contract attachment • Connectivity - Remote monitoring - Preventive maintenance Customer process Equi
Slide 96: Key value drivers with targets to improve for both growth and margin
Key value drivers with targets to improve for both growth and margin Monthly progress tracking using a clearly defined performance scorecard Theme Key value drivers Key metrics 2021 2026 Direct channel attach rate Low +++ 1 Grow revenue Contract attach rate on new equipment Indirect channel attach r
Slide 97: Service-as-a-business implementation along defined workstreams
Service-as-a-business implementation along defined workstreams Key milestones set to track successful execution 2022 2023 2024 2025 2026 Key milestone (2022) New contract types / pricing launched Commercial activation: Contract selling New incentive scheme implemented Hire critical resource Capabili
Slide 98: Experience in Service Business Model transformations
Experience in Service Business Model transformations We have done this before, and have demonstrated its value creation potential Torsten Türling Anupam Bhargava CEO EVP Global Service Business Refrigeration/HVAC Forklift trucks Elevators Water solutions Jet Engines 98 CAPITAL MARKETS DAY 2022
Slide 99: Closing remarks
Closing remarks CEO Torsten Türling
Slide 100: Closing remarks
Closing remarks Business Plan 2026 sets course for successful execution 1 Strategy focused on long-term, sustainable growth 2 We build on existing strengths 3 New Ways of Working secure successful implementation 100 CAPITAL MARKETS DAY 2022
Slide 101: NILFISK
NILFISK