Slide 1: Q1 Report 2019
Q1 Report 2019 Bo Annvik, CEO Patrik Johnson, CFO 25 April 2019 1
Slide 2: Highlights first quarter 2019
Highlights first quarter 2019 ▪ Stable demand on a high level with strong organic growth rates ▪ Record high Q1 EBITA margin with good organic operating leverage ▪ Cash flow improved during the quarter, however, working capital increased ▪ Acquisition of Weldability Sif and STRIHL during Q1, and Acu
Slide 3: Order intake
Order intake MSEK Qgrowth 5.000 18.000 6% va 17 000 5% 4500 +6000 4% 4000 45.000 3% 14.000 3500 13.000 2% 12.000 1% 3000 +1000 0% 2500 10 000 9.000 % 200 BEB RB RRR RERERRR SSE 2000 -2% 2014 2015 2016 2017 2018 2019 -3% mmm Q Order intake =——=R12M Order intake Organic Acquisitions Divestments Curren
Slide 4: Net sales
MSEK 5000 4500 4000 3500 3000 2500 2000 Net sales 18000 17000 16 000 15000 atl 2014 2015 2016 mmm Q Net sales 14000 13.000 12.000 11000 10000 9000 8000 2017 2018 2019 ——R12M Net sales QGROWTH 4,366 MSEK | +12% | +12% +11% Q growth 6% 3% -3% Organic YTD GROWTH R3Y CAGR 4 Acquisitions Divestments Curr
Slide 5: EBITA
EBITA MSEK Qgrowth 9% 600 14% f— 12% 8% 10% 400 6% 8% 300 5% 6% 4% 200 4% 3% 100 2% 2% 0 0% 1% 2014 2015 2016 2017 2018 2019 me 0% ME QEBITA ——QEBITA margin Organic Acquisitions Divestments Currency QGROWTH = YTDGROWTH —R3Y CAGR 537 MSEK —-+19% | +19% | +20% ; JF ndutrade
Slide 6: Organic sales growth by Business Area
Organic sales growth by Business Area ▪ Most Business Areas grew organically in the quarter ▪ Broad strong demand in Business Area UK – both domestic and export oriented companies developed positively ▪ Brexit impacting customer behaviour – net effect estimated to be minor ▪ Hydraulics, process, che
Slide 7: EBITA margin by Business Area
EBITA margin by Business Area ▪ EBITA margin improved in most Business Areas, both organically and through structural activities ▪ Good organic operating leverage main driver of margin improvement in Flow Technology, Industrial Components, Fluids & Mechanical Solutions and Measurement & Sensor Techn
Slide 8: Acquisitions/divestments 2019
Acquisitions/divestments 2019 Acquisitions Business Area Annual Sales Weldability Sif UK 100 MSEK STRIHL Fluids & Mechanical Solutions 60 MSEK Acumo AB Industrial Components 60 MSEK Divestments Business Area Annual Sales Wilhelm Sander Fertigung GmbH Flow Technology 60 MSEK 8
Slide 9: Key data summary
Key data summary MSEK 2018-Q1 2017-Q1 Change Order Intake 4,610 4,173 10% Net Sales 4,366 3,897 12% Gross margin, % 34.1 34.6 EBITA 537 299 19% EBITA-margin, % 12.3 11.6 Net financial items -27 -20 35% Tax -92 -78 18% Earnings per share (before dilution), SEK 2.90 2.42 20% Return On Capital Employed
Slide 10: Overview IFRS 16 effects
Overview IFRS 16 effects Item / KPI Estimated impact Comment Net debt +842 MSEK Opening balance Finance net -5 MSEK Increased costs in Q1-2019 Depreciation -67 MSEK Increased costs in Q1-2019 EBITA +5 MSEK Increased result in Q1-2019 EBITDA +72 MSEK Increased result in Q1-2019 Net debt / equity +12%
Slide 11: Cash Flow from operating activities
Cash Flow from operating activities ▪ Cash Flow from operating activities grew from 4 MSEK to 168 MSEK, mainly driven by increased profits ▪ Cash flow impacted negatively by increased working capital since year end. The increase is partly seasonal and volume related, but partly also because of high
Slide 12: Earnings per share
Earnings per share ▪ Q1 earnings per share rose 20% to SEK 2.90 (2.42) ▪ 3 and 5 year earnings per share CAGR, are 23% 12
Slide 13: Net debt
Net debt ▪ The interest bearing net debt end of Q1 increased to 5,089 (4,078) MSEK ▪ The major part (approx. 820 MSEK) of the increase relates to the implementation of IFRS 16 ▪ Net debt / equity ratio increased to 76% (72%). The ratio would have been approx. 64% excluding IFRS16 effects 13
Slide 14: Our Core Values & Business Model stand strong
Our Core Values & Business Model stand strong People make the difference Entrepreneurship Decentralisation Long-term with a passion built built on for business on trust profitable growth 14
Slide 15: Sustainability as a business opportunity
Sustainability as a business opportunity ▪ Indutrade signed UN Global Compact (UNGC) ▪ Framework for our decentralised business model ▪ Updated materiality analysis on Group level ▪ Workshop and training for all MDs ▪ Mandatory part of the strategic board meeting for all companies ▪ “Toolkit” to sup
Slide 16: Key takeaways
Key takeaways ▪ Our values, business model and strategy stand strong ▪ Good quarter with continued strong organic growth and operating leverage ▪ Record Q1 EBITA margin ▪ Diversified group with agile and flexible companies, working closely with their customers ▪ Acquisition pace increasing and pipel
Slide 17: Thank you! Q&A
IIT indutrade Thank you! Q&A
Slide 18: Financial Calendar & Contact details
Financial Calendar & Contact details • 9 May 2019 Annual General Meeting • 18 July 2019 Interim report 1 January – 30 June 2019 • 25 October 2019 Interim report 1 January – 30 September 2019 Contact: Frida Adrian VP Communications, Sustainability and IR +46 70 930 93 24 frida.adrian@indutrade.com 18
Slide 19: IIT indutrade
IIT indutrade