Slide 1: Lindab Group Q2 2017
lindab | we simplify construction Lindab Group Anders Berg, President and CEO Kristian Ackeby, CFO Q2 2017 We simplify construction
Slide 2: Agenda
lindab | we simplify construction Agenda • Summary and overview • Financials • Highlights • Outlook • Summary and Q&A 2
Slide 3: Summary and overview
lindab | we simplify construction Summary and overview 3
Slide 4: Continued focus on profitability
lindab | we simplify construction Continued focus on profitability Key financial highlights Q2 2017 • Net sales increased to SEK 2,118 m (2,016), organic growth of 2%. • Operating profit amounted to SEK 151 m (139), excluding one-off items of SEK 0 m (-1). • Operating margin amounted to 7.1% (6.9),
Slide 5: Strong growth in CEE & CIS
lindab | we simplify construction Strong growth in CEE & CIS ”Lindab continued its strong Growth focus on margins by balancing 44% volume and profitability” -3% Anders Berg, 19% President and CEO Growth Nordic 11% 34% Growth 2% CEE/CIS Western Europe 3% Growth 30% 5 Other Markets Note: Information r
Slide 6: Strong growth in larger product areas
lindab | we simplify construction Strong growth in larger product areas Segment/Product areas Growth Comments Products & Solutions Continued positive sales trend in all regions with good growth in three largest Ventilation Products markets, Sweden, Denmark and United Kingdom. Double digit growth in
Slide 7: Financials
lindab | we simplify construction Financials 7
Slide 8: Earnings growth and margin improvement
lindab | we simplify construction Earnings growth and margin improvement Lindab Group financial highlights Q2 2017 SEK m Q2´17 Q2´16 Chg % • Net sales increased organically with 2% Net Sales 2,118 2,016 5 to SEK 2,118 m (2,016). Organic, % 2 • Focus to protect margins as raw Structure1, % 0 material
Slide 9: Improved profit despite steel price increases
lindab | we simplify construction Improved profit despite steel price increases Products & Solutions financial highlights Q2 2017 SEK m Q2´17 Q2´16 Chg % • Net sales increased to SEK 1,856 m Net Sales 1,856 1,793 4 (1,793) with organic growth of 1%. Organic, % 1 Structure1, % 0 • Strong sales develo
Slide 10: Improvement since last two quarters
lindab | we simplify construction Improvement since last two quarters Building Systems financial highlights Q2 2017 SEK m Q2´17 Q2´16 Chg % • Net sales increased to SEK 262 m Net Sales 262 223 17 (223) with organic growth of 8%. Organic, % 8 Structure1, % 0 • Margin negatively affected by higher Cur
Slide 11: Stable cash flow with reduced net debt
lindab | we simplify construction Stable cash flow with reduced net debt Lindab Group cash flow Q2 2017 SEK m Q2´17 Q2´16 • Free cash flow at same level as last Cash flow from year. - operating activities1 179 173 - change in working capital 12 43 • Reduced positive cash flow from - investing activi
Slide 12: Improved financial position
lindab | we simplify construction Improved financial position Lindab Group Refinanced two credit agreements • Revolving Credit Facility amounting to 2 000 NET DEBT to EBITDA excl. one-off items 3,2 SEK 1,700 m, replacing current of SEK 1 800 2,8 1,600 m. 1 600 2,4 • Term loan amounting to EUR 50 m,
Slide 13: Highlights
lindab | we simplify construction Highlights 13
Slide 14: Highlights: Lindab UltraLink receives two awards
lindab | we simplify construction Highlights Lindab UltraLink receives two prestigious awards • Product Innovation of the Year Award (UK) “…an unique product that changes measurement of flows and temperatures in ventilation systems.” • Stora Inneklimatpriset 2016 (Sweden) “UltraLink provides new inn
Slide 15: Solution sales – Recipe for profitable growth
lindab | we simplify construction Highlights Solution sales – Recipe for profitable growth Complexity Simplicity Details Office Property Karlskrona, Sweden Complete Solution Ordervalue: SEK >3 m Air Handling Units, Fire Dampers System, Ducts, Silencers, Diffusers, Fire dampers, Pascal 15
Slide 16: Examples of prestigious orders
lindab | we simplify construction Highlights Examples of prestigious orders • Product & Solutions received three larger orders during the quarter – including a second stage warehouse project for Rusta which results in a order value of SEK 9 m. Consists of ceiling and wall solutions (approx. 9000 m2
Slide 17: Building Systems turnaround continues
lindab | we simplify construction Highlights Building Systems turnaround continues • The result in Q2 2017 has improved compared to Q1. • Building Systems is still challenged from not being able to successfully compensate for the significant increases in raw materials, impacting “steel intense” deli
Slide 18: Some highlights from the quarter
lindab | we simplify construction Some highlights from the quarter Digitalisation drives change Product & Solutions Rusta has a continued strong confidence in us, received order worth SEK 9 m Building Systems Receives order worth SEK 13 m in Russia UltraLink Receives Product Innovation of the Year A
Slide 19: Outlook
lindab | we simplify construction Outlook 19
Slide 20: Market development
lindab | we simplify construction Market development Slightly adjusted forecast by Euroconstruct • Euroconstruct forecast the European Forecast: European construction market construction market to grow 3.1% in 2017. Source: Euroconstruct (Jun -17) • 5 Growth mainly driven by residential market. 4 3.
Slide 21: Summary and Q&A
lindab | we simplify construction Summary and Q&A 21
Slide 22: Continued focus on profitability
lindab | we simplify construction Continued focus on profitability Key financial highlights Q2 2017 • Net sales increased to SEK 2,118 m (2,016), organic growth of 2%. • Operating profit amounted to SEK 151 m (139), excluding one-off items of SEK 0 m (-1). • Operating margin amounted to 7.1% (6.9),
Slide 23: Thank you Q&A
lindab | we simplify construction Thank you “Lindab’s innovative solutions create ultimate comfort in the buildings of the future.” Q&A