Slide 1: Interim Report January – June 2018
Bo Annvik CEO Patrik Johnson CFO Presentation Interim Report January – June 2018 25 July 2018
Slide 2: Highlights second quarter 2018
Highlights second quarter 2018 • Positive business climate with stable demand on high level • Improved profitability and EPS development • Good performance in most business areas, particularly in Industrial Components and UK • Acquisition of Precision UK, Digitrade and Norsecraft • Restructuring of
Slide 3: Financial summary second quarter 2018
Financial summary second quarter 2018 • Order intake rose 11% to 4,391 MSEK (3,952) • Net sales rose 17% to 4,390 MSEK (3,749) • EBITA rose 19% to 543 MSEK (458), corresponding to an EBITA-margin of 12.4% (12.2) • Earnings per share rose 19% to 3.01 SEK (2.52) • Return on operating capital 19% (20)
Slide 4: Order intake
Order intake • Order intake rose 11% to 4,391 MSEK (3,952) whereof organic 2% • Book to bill 1.00 • Strongest development in the Business Area Flow Technology • Order intake for valves for power generation improved versus Q1 but slightly lower than previous year • Organic growth rate impacted negati
Slide 5: Net sales
Net sales • Net sales rose 17% to 4,390 MSEK (3,749) whereof organic 6% • Number of working days impacted somewhat positively • Strongest development in the Business Areas Industrial Components and UK • Invoicing for valves for power generation higher than last year 5
Slide 6: EBITA
EBITA • EBITA rose 19% to 543 MSEK (458), corresponding to an EBITA-margin of 12.4% (12.2) • Strongest organic development in Industrial Components and UK Business Areas • Strategic investments in a few companies, holding back organic EBITA increase slightly 6
Slide 7: Acquisitions / divestments 2018
Acquisitions / divestments 2018 7
Slide 8: Business area results
• Net sales: 556 MSEK (430) +29%, whereof organic +6% • Book to bill 0.90 • EBITA: 85 MSEK (60) +42% • EBITA-margin: 15.3% (14.0) • Positive business climate • Invoicing for valves for Power Generation slightly higher than Q1 and last year • Slight EBITA margin drop from Q1 due to mix changes. Impro
Slide 9: Business area results
• Net sales: 483 MSEK (452) +7%, whereof organic +5% • Book to bill 1.01 • EBITA: 53 MSEK (51) +4% • EBITA-margin: 11.0% (11.3) • Positive business climate with high capacity utilization at many customers • Slight cost increases at a few companies impacting organic EBITA development due to strategic
Slide 10: Business area results
• Net sales: 519 MSEK (487) +7%, whereof organic +6% • Book to bill 1.06 • EBITA: 70 MSEK (64) +9% • EBITA-margin: 13.5% (13.1) • Continued positive and stable business climate • EBITA margin improvement mainly driven by the companies in the automotive aftermarket, hydraulics and filter segments. •
Slide 11: Business area results
• Net sales: 435 MSEK (434) 0%, whereof organic -2% • Book to bill 1,00 • EBITA: 73 MSEK (80) -9% • EBITA-margin: 16.8% (18.4) • Continued stable market situation with high capacity utilization • Organic growth rates impacted negatively by large orders and projects last year • Slightly lower profita
Slide 12: Cash Flow
Cash Flow • Cash Flow from operating activities in Q2 declined 13% to 290 MSEK (334) • Decline mainly driven by higher volumes and additional inventory to safeguard delivery service 12
Slide 13: Margins
Margins Gross profit 33.6% of sales (33.8) EBITA margin 12.4% of sales (12.2) 13
Slide 14: Financial key data, rolling 12 months
Financial key data, rolling 12 months *) Adjusted – excluding restructuring costs 14
Slide 15: Earnings per share
Earnings per share • Earnings per share rose 19% to SEK 3.01 (2.52) • 12 months rolling earnings per share rose 6% to SEK 9.28 (8.76) • Excluding restructuring 12 months rolling earnings per share rose 16% to SEK 10.13 (8.76) • 5 year earnings per share CAGR, excluding restructuring is 16% 15
Slide 16: Financial targets
Financial targets Q2 2018 Target Growth 17% >10% EBITA-margin 12.4% >10% Return on operating capital 19% >20% Net debt/equity ratio 79% <100% 16 sae JF ndutrade
Slide 17: Thank you! Q&A
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Slide 18: Enclosures
Enclosures 18
Slide 19: Income statement
Income statement MSEK Q2 2018 Q2 2017 % Net sales 4,390 3,749 17% Gross profit 1,476 1,268 16% % 33.6% 33.8% Operating expenses -1,001 -867 15% % -22.8% -23.1% Other (0) -1 Operating profit 475 400 19% Financial net -18 -16 Earnings before tax (EBT) 457 384 19% % 10.4% 10.2% EBITA 543 458 19% % 12.4
Slide 20: Balance sheet
Balance sheet MSEK 30 Jun 2018 31 Dec 2017 Intangible fixed assets 5,289 38% 4,947 39% Tangible and financial fixed assets 1,872 13% 1,757 14% Inventories 2,833 20% 2,517 20% Receivables 3,521 25% 2,881 23% Cash and cash equivalents 534 4% 464 4% Total assets 14,049 12,566 Equity 5,616 40% 5,168 41%