Slide 1: Financial performance and operating model
Financial performance Patrik Johnson and operating model CFO
Slide 2: Financial performance
IT indutrade Financial performance
Slide 3: Track record of profitable growth
Track record of profitable growth SEK m Net Sales EPS * Dividend per share SEK 5 YEAR SALES DEVELOPMENT +12% 18 000 12 16 000 p.a 14 000 12 000 8 5 YEAR EPS* DEVELOPMENT +15% 10 000 8 000 p.a 6 000 4 4 000 5 YEAR DIVIDEND DEVELOPMENT +10% 2 000 0 0 p.a 2008 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 4: 5 year bridge: net sales and EBITA
5 year bridge NET SALES EBITA * +12% growth p.a. +14% growth p.a. ORGANIC ACQUISITIONS CURRENCY ORGANIC ACQUISITIONS CURRENCY + 3% p.a. + 8% p.a. +1% p.a. + 2% p.a. +11% p.a. +1% p.a. *) Excluding restructuring 4
Slide 5: Operating model
IT indutrade Operating model
Slide 6: Operating model – principles
Operating model – principles Decentralisation Lean head office and no allocations FULL Structured governance through BA’s and Boards ACCOUNTABILITY Common financial scorecard Simple and consistent performance incentives 6
Slide 7: Decentralisation – how it works
Decentralisation – how it works Independent Trust, mandate Sharing and companies and obligation to act learning encouraged Indutrade governance Monthly Bank and through Board financial reporting treasury integration 7
Slide 8: Lean headoffice
Lean headoffice GROUP BUSINESS AREAS ~ 15 FTE ~ 25 FTE • Business development • Business development • Acquisitions • Acquisitions • People Management • Business control • Financing • Business control • Sustainability • Communication 8
Slide 9: Structured governance through company boards
Structured governance through company boards Formal Board meeting 3 times per year ▪ Company Boards the formal governance fora ▪ Monthly Business Reviews with all BA’s Q3-Q4 Q1 meeting meeting ▪ Board composition adopted to (Target / budget (reviewing and closing company needs for coming year) previ
Slide 10: Common financial scorecard to support performance management
Common financial scorecard to support performance management ▪ Common Group reporting system ▪ Full P/L and B/S monthly ▪ Scorecard with standard KPI set ▪ Annual target / budget ▪ Forecasts reported three times per year ▪ Year over year improvements most important 10
Slide 11: Main performance incentives
Main performance incentives ▪ Full “ownership” and accountability ▪ Earn-outs (1-3 year) ▪ Annual bonus scheme based on year over year profit improvement ▪ Long term warrant program ▪ Quarterly financial benchmarking and ranking including annual and 5 year awards 11
Slide 12: Summary
IT indutrade Summary
Slide 13: Summary and key message
Summary and key message ▪ Strong historical financial performance ▪ Potential to improve organic performance ▪ Simple and powerful governance and operating model ▪ Decentralisation and full accountability fundamental ▪ Harmonisation in Finance 13
Slide 14: IIT indutrade
IIT indutrade