Slide 1: Interim Report 1 April – 30 June 2020
INTERIM REPORT 1 APRIL – 30 JUNE 2020 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Good cost control gave Net sales stable margins despite COVID-19 effects SEK 2,805 m, -4% Varying business situation depending on geographies and segments Three acquisitions made with annual sales of approximately SEK 465 m EBITA margin Continued tough market conditi
Slide 3: Net sales decreased to SEK 2,805 m (2,934), -4%
QUARTER 1: NET SALES NET SALES DECREASED TO SEK 2,805 M (2,934), -4% Lower business volumes due to COVID-19, however better outcome than initially feared Of the sales decrease, the organic decrease amounted to approximately 7 percent and the aqcuired growth contributed with 4 percent compared to
Slide 4: EBITA decreased to SEK 306 m (341), -10%
QUARTER 1: EBITA DEVELOPMENT EBITA DECREASED TO SEK 306 M (341), -10% The EBITA margin amounted to 10.9 percent, a decrease with only 0.7 percentage points compared to the same period last year, due to short term cost reductions Operating profit decreased during the period with 17 percent to SEK
Slide 5: Automation
3 months ending 12 months ending AUTOMATION 30 Jun 20 30 Jun 19 Δ 30 Jun 20 31 Mar 20 Net Sales, SEK m 583 591 -1% 2,417 2,425 EBITA, SEK m 50 60 -17% 257 267 EBITA-margin, % 8.5 10.2 – 10.6 11.0 Quarter 1: Net sales decreased by 1 percent to SEK 583 m (591) EBITA decreased by 17 percent to SEK
Slide 6: Components
3 months ending 12 months ending COMPONENTS 30 Jun 20 30 Jun 19 Δ 30 Jun 20 31 Mar 20 Net Sales, SEK m 496 504 -2% 2,074 2,082 EBITA, SEK m 50 54 -6% 214 218 EBITA-margin, % 10.2 10.7 – 10.3 10.5 Quarter 1: Net sales decreased by 2 percent to SEK 496 m (504) EBITA decreased by 6 percent to SEK 5
Slide 7: Energy
3 months ending 12 months ending ENERGY 30 Jun 20 30 Jun 19 Δ 30 Jun 20 31 Mar 20 Net Sales, SEK m 683 619 10% 2,476 2,412 EBITA, SEK m 81 67 21% 296 282 EBITA-margin, % 11.9 10.9 – 12.0 11.7 Quarter 1: Net sales increased by 10 percent to SEK 683 m (619) EBITA increased by 21 percent to SEK 81
Slide 8: Industrial Process
3 months ending 12 months ending INDUSTRIAL PROCESS 30 Jun 20 30 Jun 19 Δ 30 Jun 20 31 Mar 20 Net Sales, SEK m 669 807 -17% 3,066 3,204 EBITA, SEK m 73 103 -29% 415 445 EBITA-margin, % 10.9 12.8 – 13.5 13.9 Quarter 1: Net sales decreased by 17 percent to SEK 669 m (807) EBITA decreased by 29 per
Slide 9: Power Solutions
3 months ending 12 months ending POWER SOLUTIONS 30 Jun 20 30 Jun 19 Δ 30 Jun 20 31 Mar 20 Net Sales, SEK m 381 417 -9% 1,594 1,630 EBITA, SEK m 50 65 -23% 216 231 EBITA-margin, % 13.1 15.7 – 13.6 14.2 Quarter 1: Net sales decreased by 9 percent to SEK 381 m (417) EBITA decreased by 23 percent t
Slide 10: Summary of Effects from COVID-19
SUMMARY OF EFFECTS FROM COVID-19 Current situation − Net sales in the first quarter is estimated to have been impacted negatively by the pandemic with approximately 7 percent, compared to the same period previous year − Business situation during the first quarter was weakest during April, improved
Slide 11: Sustainable, Profitable Growth Over Time
SUSTAINABLE, PROFITABLE GROWTH OVER TIME CAGR 20% 9/11, IT Crisis Finance crisis Oil crisis Cyber attack 11
Slide 12: Three Acquisitions During First Quarter
THREE ACQUISITIONS DURING FIRST QUARTER SEK 465 m Number of Acquisitions Business Area Access Net Sales, SEK m* employees* Elkome Group Oy Automation April, 2020 85 38 Yearly net sales Peter Andersson AB Energy April, 2020 30 9 Valutec Group AB Industrial Process April, 2020 350 45 92 New employees
Slide 13: Financial Position
FINANCIAL POSITION 13
Slide 14: Income Statement, Condensed
INCOME STATEMENT, CONDENSED 3 months ending 12 months ending (SEKm) 30 Jun 20 30 Jun 19 30 Jun 20 31 Mar 20 Net Sales 2,805 2,934 11,606 11,735 Cost of sales & op. expenses -2,556 -2,659 -10,561 -10,664 Other operating items -6 17 67 90 Operating profit 243 292 1,112 1,161 Financial income & expense
Slide 15: Balance Sheet, Condensed
BALANCE SHEET, CONDENSED (SEKm) 30 Jun 20 30 Jun 19 31 Mar 20 Goodwill 2,442 1,896 1,997 Other intangible non-current assets 1,673 1,272 1,243 Property, plant and equipment 900 816 936 Non-current financial assets 61 57 64 Inventories 1,765 1,580 1,642 Current receivables 2,020 2,058 2,261 Cash and
Slide 16: Cash Flow Statement, Condensed
CASH FLOW STATEMENT, CONDENSED 3 months ending 12 months ending (SEKm) 30 Jun 20 30 Jun 19 30 Jun 20 31 Mar 20 Profit after financial items 233 286 1,052 1,105 Adj. for non cash items 129 74 409 354 Income tax paid -60 -45 -288 -273 Changes in working capital 22 -62 15 -69 Cash flow from operating a
Slide 17: Cash Flow
CASH FLOW Cash flow from operating and investing activities 17
Slide 18: Approach to Net Debt / Equity Ratio
APPROACH TO NET DEBT / EQUITY RATIO Besides P/WC, no specific targets for gearing and debt Debt rate bound to move up and down periodically with business like ours Our target to acquire on our own cashflow is working well 18
Slide 19: Key Financial Indicators
KEY FINANCIAL INDICATORS (SEKm) 30 Jun 20 31 Mar 20 30 Jun 19 Total equity (SEKm) 3,150 3,076 2,782 Equity per share, SEK 44.00 44.95 40.60 Equity ratio, % 34 36 35 Return on working capital (P/WC), % 54 56 54 Return on equity, % 29 32 31 Return on capital employed, % 19 21 21 Financial net debt (SE
Slide 20: Our Sustainability Visions for 2030
Our sustainability visions for 2030 SUSTAINABLE BUSINESS SUSTAINABLE ORGANIZATION SUSTAINABLE SUPPLY CHAIN 100% 50% 40% 80% sales contributing to reduced Co2 women in of purchase volume assessed sustainable development intensity leading positions by Code of Conduct 20
Slide 21: Sustainability Is a Central Part of Our Business
SUSTAINABILITY IS A CENTRAL PART OF OUR BUSINESS BUSINESS AREAS Automation Energy Industrial Power Components process solutions GROWTH DRIVERS • Industry 4.0 • Electrification • Renewable energy • Environmental • Electrification • Smart cities • Environmental • Grid development regulations • Increas
Slide 22: Network for Growth
Entrepreneurship 2.0 Digitalisation Leadership development Sustainability Addtech is a (technology Equal NETWORK FOR GROWTH Treasury and niche market) network opportunities Addtech where people and Academy companies grow New talent Financial support Co-creation Increased decentralisation Internation
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