Lindab International Ab · OMXSTO:LIAB
Lindab International Ab — Q4 2023 Earnings Presentation
16 slides from Lindab International Ab's earnings presentation, Feb 7, 2024
Slide 1: Lindab Group Q4 and 2023 report
For a better climate TM Lindab Group Q4 and 2023 report 7 February 2024 Ola Ringdahl President & CEO Lars Ynner CFO
Slide 2: Q4 highlights
Q4 highlights Improved profitability despite challenging Q4/23 Q4/22 market conditions • Highest Q4 sales ever for Lindab Group and Ventilation Systems. Sales (SEK m) 3,274 3,223 • Year-on-year margin improvement was Organic growth -5% +1% achieved for the first time in 2023. Acquired growth +4% +20
Slide 3: Full year highlights
Full year highlights Successful acquisition journey continues 2023 2022 • Full-year sales exceeded SEK 13 billion for the first time. • Ventilation Systems reached an operating Sales (SEK m) 13,114 12,366 margin of 10.1%. Organic growth -9% +11% Record high cash flow Acquired growth +10% +13% • Cash
Slide 4: Ventilation revenue is growing as share of total revenue
Ventilation revenue is growing as share of total revenue Sales per year, SEK m SEK m Ventilation Systems SEK m Lindab Group SEK m Profile Systems Sales, SEK m Comparison numbers exclude the divested business area Building Systems.
Slide 5: Ventilation Systems above 10% operating margin in 2023
Ventilation Systems above 10% operating margin in 2023 Adj. EBIT per quarter and 12 months SEK m Ventilation Systems % SEK m Lindab Group % SEK m Profile Systems % Adj. EBIT, SEK m Adj. EBIT R12 months, % Comparison numbers exclude the divested business area Building Systems.
Slide 6: Strong cash flow supports continued growth
Strong cash flow supports continued growth Record high cash flow in 2023 Cash flow from operating activities • Cash flow from operating activities increased to SEK 589 m (527) in +148% 1,711 SEK m Q4, resulting in a record high cash flow for 2023; SEK 1,711 m (691). • The improved cash flow mainly r
Slide 7: Net debt
Net debt • Net debt amounted to SEK 3,264 m (3,310), 1.9 Net debt / EBITDA Financial Net debt / EBITDA 1.4 of which SEK 1,370 m (1,212) is related to leasing liabilities. • Net debt/EBITDA amounted to 1.9 (1.6). (Financial) Net debt /EBITDA MSEK • Financial Net debt/EBITDA amounted to 2.5 4,000 1.4
Slide 8: Financial targets 2023
Financial targets 2023 Growth rate (continued business from 2021) % 30 24.3 25 19.6 20 The annual growth rate should exceed 10 percent, 15 >10% as a combination of organic and acquired growth. 10 5 3.3 -5.2 1.4 0 -5 -10 2019 2020 2021 2022 2023 Adj. EBIT % (continued business from 2021) % 16 14 13.1
Slide 9: Increased dividend
Increased dividend • Dividend policy of at least 40% SEK per Dividend of net profit. share • Strong cash flow and a solid financial position. • Board of Directors proposes a dividend of SEK 5.40 (5.20). • To be paid on two occasions. • The Board of Director’s proposal is a 4% increase and equals 49%
Slide 10: Building a stronger Lindab
Building a stronger Lindab 10
Slide 11: Accelerating profitable growth
Accelerating profitable growth 2009-2017 2018-2023 2024-2027 Debt reduction Investing in the Accelerating business profitable growth Generated profits and cash flow Focus on fewer markets and With the investment program was used to pay off debt and get product areas. Investments in implemented and w
Slide 12: Short term focus areas
Short term focus areas Profitability and Competitive Efficiency from Sustainability Benefits from cost control products investments improvements acquisitions Implement actions to Increased focus on Ensure that the Increase the pace Improve support to reduce sensitivity to R&D and product implemented
Slide 13: Investments to increase efficiency, capacity and safety
Investments to increase efficiency, capacity and safety • SEK 21 m (82) invested in Q4 and SEK 294 m (359) invested in total for 2023. • The strategic investment program, running since 2019, will be completed during 2024. • The investment level in 2025 is expected to be approximately SEK 250 m. Gros
Slide 14: Acquisitions of high-quality companies
Acquisitions of high-quality companies • Five acquisitions in 2023 and two signed at the beginning of 2024. • The acquisition of Vicon in USA doubles the global sales of ventilation automation solutions for Lindab Group. Lindab establishes a platform for further acquisitions in North America. • The
Slide 15: Market outlook
Market outlook Market outlook • The European ventilation market is estimated to have declined by 5% in volume during 2023. • We expect the market demand to remain weak for the next 6-12 months. If interest rates are lowered early, this could trigger increased demand during the second half of 2024. •
Slide 16: Thank you! Questions?
©lLindab’ Thank you! Questions?