Slide 1: Strong Growth & Improved Profitability
STRONG GROWTH & IMPROVED PROFITABILITY Investor Presentation | Q2 | August 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 Andreas Göth, CEO 3. Financial Update 34 } CEO since 2018. Andreas tenure at QleanAir spans over eighteen years being CFO 2001–2007 and head of operations and deputy CEO since 2007 } Prior to QleanAir, Andreas held finance management
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 Andreas Göth, CEO 4
Slide 5: Key Highlights Q2 – Strong Growth & Increased Profitability
KEY HIGHLIGHTS Q2 – STRONG GROWTH & INCREASED PROFITABILITY } Sales increased 26% to SEKm 137.0 (108.9), organic growth 24% } EBITDA-margin increased to 23.6% (23.0), EBITDA amounted to SEKm 32.4 (25.1) }Operating cash-flow increased to 34.9 (20.2) }Order intake affected by COVID-19, decrease 29% to
Slide 6: Cabin Solutions – Exceptionally Strong Quarter
CABIN SOLUTIONS – EXCEPTIONALLY STRONG QUARTER } The health promotion act in force from April 1 in Japan continued to benefit sales } Strong and broad customer base in the office segment in Europe and Japan KEY MARKETS & TRENDS SALES PERFORMANCE Q2 - SEKm TRACK-RECORD SALES - SEKm } Increased regula
Slide 7: Room Solutions – Continued to Develop Positively
ROOM SOLUTIONS – CONTINUED TO DEVELOP POSITIVELY } Lockdowns in several US states affected order intake, volatile markets with rapid changes } Dependent on open and functioning markets to enable us to drive active sales work KEY MARKETS & TRENDS SALES PERFORMANCE Q2 - SEKm TRACK-RECORD SALES - SEKm
Slide 8: Facility Solutions – Continued Investment in New Products
FACILITY SOLUTIONS – CONTINUED INVESTMENT IN NEW PRODUCTS } Launch of FS 70 food graded version for the food and beverage industry } Launch of upgraded FS70 with HEPA filter, products in development and one scheduled launch during the autumn } Air cleaning solutions for different sized industrial sp
Slide 9: The COVID-19 Impact – Resilient Business Model
THE COVID-19 IMPACT – RESILIENT BUSINESS MODEL Negative impact in the short-term Probably a market driver in the mid to perspective longer-term perspective } Substantially lower activity in most markets since } The virus risk puts a general focus on the need to late March 2020 and throughout Q2 with
Slide 10: Upgraded Facility Solutions Including HEPA Filter
UPGRADED FACILITY SOLUTIONS INCLUDING HEPA FILTER } QleanAir works with mechanical filters throughout all product areas and has Hepa 14 filter as standard in many applications such as clean rooms and cabins. All products in the QleanAir product range can be configured with hepa 14 filters if request
Slide 11: 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, % 250 228 + 2,500 Global customers + 9,200 Installed units1 + 20 Countries customer base 200 165 191 150 122 133 110 100 40% 41% 41% 42% 43% 39% 47% Recurring rev
Slide 12: Financials
Financials Henrik Resmark, CFO 12
Slide 13: Strong Sales Growth & Order Intake Affected by COVID-19
STRONG SALES GROWTH & ORDER INTAKE AFFECTED COVID-19 SECOND QUARTER 2020 } Order intake -29% clearly hit by Covid-19 Order i ntake SEKm Sal es SEKm } Strong performance with +26% sales growth 160 145 137 } Good growth in all product categories 140 124 124 119 } Sales growth Facility Solutions +10% 1
Slide 14: Increased Sales Is Driving the Profitability
INCREASED SALES IS DRIVING THE PROFITABILITY P&L COMMENTS SALES & ADJ. EBIT-MARGIN QUARTER BY QUARTER } Retention rate >75%1 contracts extended or renewed Sal es SEKm Adj. EBIT-margin } Recurring rental revenues from units in own balance sheet 47 200 (43)% 145 } EBITDA amounted to SEKm 32.4 (25.1) +
Slide 15: Cash-Flow & Balance Sheet
CASH-FLOW & BALANCE SHEET CASH-FLOW BALANCE SHEET April-June April-June Jan-June Jan-June FY TSEK 2020 2019 2020 2019 2019 TSEK 2020-06-30 2019-06-30 2019-12-31 ASSETS Operating activities Capitalized development cost 7 005 6 381 5 934 Operating income 25 308 19 786 56 659 43 407 32 073 Customer con
Slide 16: 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 17: QleanAir as Investment
QleanAir as investment Unique service offering based on holistic approach to clean air as a service with full-service rental contracts Strong second quarter 2020 – Resilient business model Proprietary air cleaning technology and back-office solutions providing substantial barriers to entry Continued
Slide 18: Q&A
Q&A Andreas Göth, CEO Henrik Resmark, CFO 18
Slide 19: Appendix
APPENDIX 19
Slide 20: Appendix | Key Ratios and Quarterly Development
Appendix | Key ratios and Quarterly Development April-June April-June Jan-June Jan-June FY 2020 2019 2020 2019 2019 Order intake, TSEK 62 424 87 618 185 930 173 977 365 979 Sales, TSEK 137 002 108 863 281 683 214 013 456 993 Recurring revenue from units in own balance sheet, % 47% 43% 45% 42% 42% EB
Slide 21: Appendix | Largest Shareholders
Appendix | Largest shareholders Shareholder %, capital and votes Qevirp 41 Ltd 40,7% IKC Fonder 3,4% Livförsäkringsbolaget Skandia 3,2% LGT Bank Ltd 2,7% Taaleri Nordic Value Equity Fund 2,7% Handelsbanken Microcap 2,3% Skandia Fonder 2,1% Sensor Fonder 2,0% Avanza Pension 1,9% Enter Småbolagsfond 1
Slide 22: Qleanair.com | QleanAir Holding AB
22 Qleanair.com | QleanAir Holding AB | Torggatan 13 | 171 54 Solna