Slide 1: Interim Report 1 April – 30 September 2020
INTERIM REPORT 1 APRIL – 30 SEPTEMBER 2020 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Net sales ▪ Focusing on efficiency and finishing strongly SEK 2,723 m, -7% ▪ Sharply reduced market for scrubber installations has had a significant impact on the organic decline and margin ▪ Varying business situation depending on geographies and segments EBITA margin ▪ To
Slide 3: Net sales decreased to SEK 2,723 m (2,917), -7%
QUARTER 2: NET SALES NET SALES DECREASED TO SEK 2,723 M (2,917), -7% ▪ A strong ending gave an overall better outcome than initially feared ▪ Of the organic decline of about 10 percent, 8 percent is estimated to be due to negative Covid-19 effects and a significant part of the organic effect was rel
Slide 4: EBITA decreased to SEK 306 m (380), -19%
QUARTER 2: EBITA DEVELOPMENT EBITA DECREASED TO SEK 306 M (380), -19% ▪ The EBITA margin amounted to 11.2 percent, due to short term cost reductions, long term adjustments of operating costs as well as favourable contributions from acquisitions ▪ At the end of the quarter, approximately 200, corresp
Slide 5: Automation
3 months ending 6 months ending 12 months ending AUTOMATION 30 Sept 20 30 Sept 19 Δ 30 Sept 20 30 Sept 19 Δ 30 Sept 20 31 Mar 20 Net Sales, SEK m 562 552 2% 1,145 1,143 0% 2,427 2,425 EBITA, SEK m 60 57 7% 110 117 -6% 260 267 Quarter 2: EBITA-margin, % 10.8 10.3 – 9.6 10.2 – 10.7 11.0 ▪ Net sales in
Slide 6: Components
3 months ending 6 months ending 12 months ending COMPONENTS 30 Sept 20 30 Sept 19 Δ 30 Sept 20 30 Sept 19 Δ 30 Sept 20 31 Mar 20 Net Sales, SEK m 487 511 -5% 983 1,015 -3% 2,050 2,082 EBITA, SEK m 50 58 -15% 100 112 -11% 206 218 Quarter 2: EBITA-margin, % 10.2 11.4 – 10.2 11.0 – 10.0 10.5 ▪ Net sale
Slide 7: Energy
ENERGY Quarter 2: ▪ Net sales increased by 7 percent to SEK 633 m (593) ▪ EBITA increased by 5 percent to SEK 79 m (75) ▪ The business situation in the business area remained highly favourable in the second quarter, affected only marginally negatively by Covid-19 ▪ Sales of infrastructure products f
Slide 8: Industrial Process
3 months ending 6 months ending 12 months ending INDUSTRIAL PROCESS 30 Sept 20 30 Sept 19 Δ 30 Sept 20 30 Sept 19 Δ 30 Sept 20 31 Mar 20 Net Sales, SEK m 680 865 -21% 1,349 1,672 -19% 2,881 3,204 EBITA, SEK m 77 134 -42% 150 237 -37% 358 445 Quarter 2: EBITA-margin, % 11.4 15.4 – 11.1 14.2 – 12.4 13
Slide 9: Power Solutions
3 months ending 6 months ending 12 months ending POWER SOLUTIONS 30 Sept 20 30 Sept 19 Δ 30 Sept 20 30 Sept 19 Δ 30 Sept 20 31 Mar 20 Net Sales, SEK m 365 402 -9% 746 819 -9% 1,557 1,630 EBITA, SEK m 46 62 -25% 96 127 -24% 200 231 Quarter 2: EBITA-margin, % 12.6 15.3 – 12.9 15.5 – 12.9 14.2 ▪ Net sa
Slide 10: Net sales amounted to SEK 5,528 m (5,851)
PERIOD APRIL 1 – SEPTEMBER 30 NET SALES AMOUNTED TO SEK 5,528 M (5,851) ▪ Net sales decreased by 6% to SEK 5,528 m (5,851) ▪ Of the organic decline of about 9 percent, 7 percent is estimated to be due to negative Covid-19 effects ▪ For the group in total EBITA is affected positively by approximately
Slide 11: Nine acquisitions so far this year
NINE ACQUISITIONS SO FAR THIS YEAR Number of Acquisitions Business Area Access Net Sales, SEK m* employees* Elkome Group Oy Automation April, 2020 85 38 Peter Andersson AB Energy April, 2020 30 9 Valutec Group AB Industrial Process April, 2020 350 45 Fluidcontrol Oy Components September, 2020 41 20
Slide 12: Financial Position
FINANCIAL POSITION 12
Slide 13: Income Statement, Condensed
INCOME STATEMENT, CONDENSED 3 months ending 6 months ending 12 months ending (SEKm) 30 Sept 20 30 Sept 19 30 Sept 20 30 Sept 19 30 Sept 20 31 Mar 20 Net Sales 2,723 2,917 5,528 5,851 11,412 11,735 Cost of sales & op. expenses -2,479 -2,601 -5,035 -5,260 -10,439 -10,664 Other operating items -2 13 -8
Slide 14: Balance Sheet, Condensed
BALANCE SHEET, CONDENSED (SEKm) 30 Sept 20 30 Sept 19 31 Mar 20 Goodwill 2,553 1,917 1,997 Other intangible non-current assets 1,725 1,246 1,243 Property, plant and equipment 883 873 936 Non-current financial assets 66 62 64 Inventories 1,810 1,632 1,642 Current receivables 2,053 2,150 2,261 Cash an
Slide 15: Cash Flow Statement, Condensed
CASH FLOW STATEMENT, CONDENSED 3 months ending 6 months ending 12 months ending (SEKm) 30 Sept 20 30 Sept 19 30 Sept 20 30 Sept 19 30 Sept 20 31 Mar 20 Profit after financial items 227 307 460 593 972 1,105 Adj. for non cash items 138 111 267 185 436 354 Income tax paid -79 -71 -139 -116 -296 -273 C
Slide 16: Cash Flow R12
CASH FLOW R12 Cash flow from operating and investing activities 16
Slide 17: 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 17
Slide 18: Key Financial Indicators
KEY FINANCIAL INDICATORS (SEKm) 30 Sept 2020 31 Mar 2020 30 Sept 2019 Total equity (SEKm) 3,028 3,076 2,627 Equity per share, SEK 10.40 11.25 9.60 Equity ratio, % 32 36 32 Return on working capital (P/WC), % 51 56 56 Return on equity, % 26 32 33 Return on capital employed, % 17 21 22 Financial net d
Slide 19: Network for Growth
Entrepreneurship 2.0 Digitalisation Leadership development Sustainability Addtech is a (technology Equal Treasury NETWORK FOR GROWTH and niche market) network opportunities Addtech where people and Academy companies grow New talent Financial support Co-creation Increased decentralisation Internation
Slide 20: Efficient Organisational Structure
EFFICIENT ORGANISATIONAL STRUCTURE AUTOMATION COMPONENTS ENERGY INDUSTRIAL PROCESS POWER SOLUTIONS MOTION & DRIVES DENMARK ENERGY PROCESS BATTERY PRODUCTS TECHNOLOGY SYSTEMS INDUSTRIAL IT FINLAND ENERGY INDUSTRIAL CUSTOMISED & SENSORS SUPPLY SOLUTIONS SOLUTIONS NORWAY FIBER-OPTIC POWER COMMUNICATION
Slide 21: Key Take Aways
KEY TAKE AWAYS ▪ Gradual recovery and cost control create resilicence in earnings performance − Recovery and stabilisation in most market segments − Long term cost reductions gradually replace short term savings ▪ Successful work with aquisitions − Nine acquistions so far this year − Strong pipeline
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