Qleanair Ab · OMXSTO:QAIR
Qleanair Ab — Q3 2020 Earnings Presentation
24 slides from Qleanair Ab's earnings presentation, Nov 12, 2020
Slide 1: QleanAir presentation of the Q3 Interim Report 2020
QleanAir presentation of the Q3 Interim Report 2020 November 12 2020 1 QleanAir - A strong position in the market niche indoor air cleaning
Slide 2: Today's agenda and speakers
TODAY’S AGENDA AND SPEAKERS 1. Introduction 5 2. Business Update 9 Christina Lindstedt, CEO 3. Financial Update 34 } CEO since August 31, 2020. } Prior to QleanAir, various global business leadership roles at Electrolux and Sony until 2014. From 2014 Business advisor through own company and several
Slide 3: In brief - a niche premium provider of clean indoor environment solutions
IN BRIEF - A NICHE PREMIUM PROVIDER OF CLEAN INDOOR ENVIRONMENT SOLUTIONS COMPANY MARKET } Global provider of premium indoor clean air solutions } Strong fundamental market drivers from regulatory shift and awareness } Diversified customer base with high retention rate of air pollution as a health c
Slide 4: Business Update
BUSINESS UPDATE Christina Lindstedt, CEO 4
Slide 5: Key operational highlights Q3 – launch of new products
KEY OPERATIONAL HIGHLIGHTS Q3 – LAUNCH OF NEW PRODUCTS § High activity level in the company. § Continued strong focus on launching new products in Facility Solutions; § Launch of the FS90 § Q4 launch of FS30, developed in close co-operation with the healthcare sector. § Launch of Facility Solutions
Slide 6: Key financial highlights Q3 – stable margins & increased EPS
KEY FINANCIAL HIGHLIGHTS Q3 – STABLE MARGINS & INCREASED EPS § EBIT-margin slightly decrease 17.0% (17.7) § EBIT SEKm 17.8 (21.0) § Sales SEKm 104.9 (119.0) -4.6% (currency adjusted) § Order intake SEKm 54.4 (89.5) -39% § Strong increase in recurring revenues SEK 64.9 (48.3) +35% § Improved operatin
Slide 7: Cabin Solutions – stable cash generating base
CABIN SOLUTIONS – STABLE CASH GENERATING BASE } The positive effect (Q3 2019 and H1 2020) from the health promotion act in force from April 1 in Japan – normalized in Q3 } Strong and broad customer base in Europe and Japan. Mature market in Europe, growth market in Japan. } Cross selling opportuniti
Slide 8: Room Solutions – challenges in the US market
ROOM SOLUTIONS – CHALLENGES IN THE US MARKET } Challenging quarter with key customers segments in the US in healthcare, largely impacted by Corona } Focus on closing ongoing customer opportunities, strong pipeline } Reinforce channel co-operations and marketing activities KEY MARKETS & TRENDS SALES
Slide 9: Facility Solutions – many new product launches, introduction in Japan
FACILITY SOLUTIONS – MANY NEW PRODUCT LAUNCHES, INTRODUCTION IN JAPAN } Launch of FS 90 targeting larger areas within the warehousing, logistics and industry sectors } Increased demand for air cleaning solutions from Corona. New FS30 launch in Q4 as a respons. } First sale into Japan and the Office
Slide 10: FS – product line
FS – product line AirQlean Low 115 FS 30 FS 70 FG FS 70 FS 90 Key segments • Smoking rooms • Offices • Food industry • Logistics • Logistics • Offices • Health care • Cosmetics industry • Warehousing • Ware housing • Hotels • Hotels • Production industry • Production industry • Schools • Automotive
Slide 11: The COVID-19 impact
THE COVID-19 IMPACT Mixed impact in the short-term perspective, but A market driver in the mid to longer-term, with strong increase in awareness of IAQ increased demand for air cleaning } Continued lower activity level in most markets. } The virus risk puts a general focus on the need to QA sales pr
Slide 12: Stable and diversified revenue base > 2,500 customers
STABLE AND DIVERSIFIED REVENUE BASE > 2,500 CUSTOMERS PORTFOLIO SUMMARY RECURRING REVENUES Recurring Revenues, SEKm Share of total Sales, % 300 + 2,500 Global customers + 9,400 Installed units1 + 20 Countries customer base 250 191 246 200 165 150 122 133 110 48% 100 39% 40% 41% 41% 42% 62% Recurring
Slide 13: Financials
Financials Henrik Resmark, CFO 13
Slide 14: Order intake and sales affected by Covid-19
ORDER INTAKE AND SALES AFFECTED Covid-19 THIRD QUARTER 2020 } Order intake -39% clearly hit by Corona Order i ntake SEKm Sal es SEKm } Organic sales growth -4.6% 160 145 137 } Cabin Solutions -11% 140 124 124 119 } Product launches in FS – Sales growth +14% 120 105 103 105 109 103 105 } Sales Room S
Slide 15: Stable margins and increased recurring revenue
STABLE MARGINS AND INCREASED RECURRING REVENUE P&L COMMENTS SALES & ADJ. EBIT-MARGIN QUARTER BY QUARTER } Recurring revenues +34%, SEKm 65 (48) Sal es SEKm Adj. EBIT-margin } Recurring rental revenues from units in own balance sheet 200 62% (41%) of total sales 145 } EBITDA amounted to SEKm 24.9 (ad
Slide 16: Improved cash-flow and reduced net debt
IMPROVED CASH-FLOW AND REDUCED NET DEBT CASH-FLOW IN SUMMARY BALANCE SHEET IN SUMMARY July-Sept July-Sept Jan-Sept Jan-Sept Full year TSEK 2020-09-30 2019-09-30 2019-12-31 TSEK 2020 2019 2020 2019 2019 ASSETS Operating activities Capitalized development cos t 7 741 6 128 5 934 Cus tomer contracts 0
Slide 17: Financial targets and dividend policy
Financial targets and dividend policy MEDIUM-TERM FINANCIAL TARGETS AND DIVIDEND POLICY 1 2 3 Organic sales growth Profitability Dividend policy ~10% 15-20% 30-50% Net sales CAGR EBIT margin Payout ratio } Average annual organic sales } EBIT margin of 15-20 percent } 30-50 percent of net profit grow
Slide 18: Continuous increased delivery of indoor clean air
Continuous increased delivery of indoor clean air 18
Slide 19: In summary - QleanAir as investment
In summary - QleanAir as investment Unique service offering based on holistic approach to clean air as a service with full-service rental contracts Proprietary air cleaning technology and back-office solutions providing substantial barriers to entry Long contracts with high degree of extensions acro
Slide 20: Q&A
Q&A Christina Lindstedt, CEO Henrik Resmark, CFO 20
Slide 21: Appendix
APPENDIX 21
Slide 22: Appendix | Key ratios and Quarterly Development
Appendix | Key ratios and Quarterly Development Jul y-Sept Jul y-Sept Ja n-Sept Ja n-Sept Ful l yea r 2020 2019 2020 2019 2019 Order i ntake, TSEK 54 442 89 540 240 372 263 516 365 979 Sa l es , TSEK 104 851 119 018 386 534 333 032 456 879 Recurri ng revenue from uni ts i n own ba l a nce s heet, %
Slide 23: Appendix | Largest shareholders
Appendix |Largest shareholders Sha rehol der %, ca pi ta l a nd votes Qevi rp 41 Ltd 40,7% JP Morga n Ba nk Lux. 8,2% Li vförs ä kri ngs bol a get Ska ndi a 3,3% JP Morga n Cha s e Ba nk London 3,2% Nordnet Pens i on 3,0% LGT Ba nk Ltd 2,7% Ta a l eri Nordi c Va l ue Equi ty Fund 2,7% Ava nza Pens i
Slide 24: Qleanair.com | QleanAir Holding AB
24 Qleanair.com | QleanAir Holding AB | Torggatan 13 | 171 54 Solna