Slide 1: Strong result & update of strategy
Strong result & update of strategy Q3 2022 Interim Report | Webcast | November 3, 2022
Slide 2: Agenda
AGENDA • Q3 2022 highlights • Q3 2022 financials • Q&A
Slide 3: Strong financial performance continued
Strong financial performance continued Net sales grew by 50% Operational ebit grew by 38% 43.3m€ net sales (28.8m€ Q321) 3.0m€ (6.8%) operational EBIT (2.2m€ Q321) Organic growth 7.4m€* New strategic target: minimum 15% average Growth via acquisitions 7.3m€ annual operational EBIT growth Stable fina
Slide 4: Profitability driven by electronics & technical trade
Profitability driven by electronics & technical trade Outlook broadly stable in spite of uncertainties in the general operating environment Electronics (cont.oper.), (m€,%), r12* Technical trade, (m€,%), r12 HEAvy machines, (m€,%), r12 6.4 % 9.2 % 9.6 % 9.6 % 10.2 % 8.4 % 6.7 % 6.2 % 6.0 % 8.5 % 5.5
Slide 5: Updated strategy & targets pave the way for value creation
Updated strategy & targets pave the way for value creation continuation of work to create a long-term successful company 1 2 Strategy update Strategy M&A update earnings growth and Crystallized strategy new strategic financial targets Execution Development return on capital Lessons learned Earnings
Slide 6: We continue to build a long-term successful company
We continue to build a long-term successful company Phase 1 | 2020-H1/2022 Phase 2 | H2/2022 and beyond Building the foundation Focused long-term value creation Sales (m€) and operational ebit (%) Sales (m€) and operational ebit (%) 155m€ (5,4%) 122m€ R12 (6,0%) months 72m€ (Q3/22) 37m€ (5,4%) (3,9%
Slide 7: Our business model
Our business model We own and acquire Great entrepreneurial companies with strong profits and cash flows Ultimate objective is We enable earnings growth by Shareholder Supporting & value creation coaching our companies & in the long-term developing people we Re-invest capital with attractive returns
Slide 8: Focus on earnings growth and return on capital
Focus on earnings growth and return on capital Updated long-term strategic financial targets to better reflect shareholder value creation 15% 15% 2-3x minimum annual minimum net debt / operational average operational ROCE EBITDA EBIT growth Dividend policy target to annually increase dividend per sh
Slide 9: Development | Short-term focus areas
Development| Short-term focus areas Focus on steering the ship towards strategic targets & developing the boreo way 1 2 3 Ways of working Common financial kpis Development of operations S A T M R ’Game plan concept’ Way Operating model & governance Measuring shareholder value drivers Simple, efficie
Slide 10: M&A | execution & development
M&A| execution & development Attractive opportunities to continue allocating capital to acquisitions Lackmästarn add-on to floby nya bilverkstad 1 completed acquisition of a specialist in painting, surface treatment and varnishing of heavy vehicles Russian exit 2 Completed exit from electronics dist
Slide 11: Agenda
AGENDA • Q3 2022 highlights • Q3 2022 financials • Q&A
Slide 12: Q3 2022 | Net sales & operational ebit
Q3 2022| Net sales & operational ebit Record-level operational ebit of 3m€ (6.8%) Net sales * Operational ebit & ebit% * +50% +38% 7.5 % 6.2 % 5.8 % 6.8 % 5.5 % 4.8 % 3.6 % 43.3 3.0 39.2 40.4 31.7 2.4 30.2 28.8 2.2 1.9 1.9 23.8 1.3 1.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2021 2021 2021 20
Slide 13: Q3 2022 | rolling 12 Net sales & operational ebit
Q3 2022| rolling 12 Net sales & operational ebit Operational ebit growth clearly above strategic target Net sales, r12 * Operational ebit & ebit%, r12 * STR target > 15% p.a. +52% +40% 5.8 % 5.8 % 5.9 % 5.4 % 5.4 % 5.4 % 4.7 % 155 130 140 8.3 122 7.2 7.0 7.5 95 102 5.5 6.0 84 4.0 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 14: Q3 2022 | growth of net sales
Q3 2022| growth of net sales Strong organic growth as well as growth via acquisitions Growth of net sales q3/22 vs. Q3/21, (m€), continued operations (0.2) 7.4 7.3 43.3 28.8 50% growth Q3/22 vs. Q3/21 Q3 2021 M&A Organic Growth FX Q3 2022 14
Slide 15: Electronics (continued operations)
Electronics (continued operations) Growth in all dimensions, operational ebit at 7.8% Comments – q3 2022 Net sales and operational ebit% Q322 vs. Q321 • Finnish operations (YE, Noretron, Milcon, Infradex, SSN) 9.9 % 7.8 % ▪ Improved operational performance 3.3 % 4.4 % 5.2 % ▪ Order book has remained
Slide 16: Technical trade
Technical trade Net sales grew as a result of pronius acquisition and organic development Operational ebit at 12.2%, stable outlook Comments – q3 2022 Net sales and operational ebit% Q322 vs. Q321 • Machinery Power business 10.2 % 8.5 % 12.5 % 12.2 % 7.1 % ▪ Machinery’s Power business continued to d
Slide 17: Heavy machines
Heavy machines significant sales growth driven by fnb acquisition and estonian business Profitability lacking, strong order books and stable outlook Comments – q3 2022 Net sales and operational ebit% Q322 vs. Q321 • Putzmeister business 4.6 % 6.5 % 5.1 % 1.7 % 2.3 % ▪ All countries performed slightl
Slide 18: Other operations
Other operations good performance in inflatory environment, short-term margin pressures continue Comments – q3 2022 Net sales Q322 vs. Q321 • Despite increasing costs (e.g. fuel) ESKP’s and Vesterbacka Transport’s performance continued to be 1.2 1.1 1.2 1.2 1.0 strong • Net sales of 1.2m€ and operat
Slide 19: Q3 2022 | ROCE & ROE
Q3 2022| ROCE & ROE room to improve in capital efficiency Roce% * STR target > 15% Roe% * 12.5 % 13.4 % 33.2 % 28.6 % 12.3 % 27.8 % 11.3 % 25.8 % 10.8 % 10.8 % 9.7 % 13.7 % 13.1 % 11.4 % 30 77 24 70 62 19 48 53 41 44 12 13 10 11 4.0 5.5 6.0 7.2 7.0 7.5 8.3 2.7 3.8 3.5 3.9 2.7 2.7 4.0 Q1 Q2 Q3 Q4 Q1
Slide 20: Q3 2022 | net debt and equity ratio
Q3 2022| net debt and equity ratio Net debt / operational ebitda stable at 2,5x. Equity ratio improved from q2. Net debt & net debt/operational ebitda* STR target 2-3X Equity ratio, % * 2.6 X 2.5 X 2.6 x 2.5 X 2.5 X 1.6 x 35.9% 35.1% 32.5% 35.9 37.9 34.6 32.8 33.9 25.7% 25.5% 24.8% 24.3% 26.1 26.7 Q
Slide 21: Q3 2022 | eps and cash flow
Q3 2022| eps and cash flow Operational Eps clearly above LY. cash FLOW generation impacted by net working capital movement. Earnings per share* CASH FLOW*** +19% 0.8 0.1 1.7 1.5 0.83 ** 0.6 0.8 - (0.3) 0.70 (4.9) (3.7) (6.5) (2.9) 0.63 (3.4) (1.9) (2.1) (2.1) 0.53 0.45 0.45 0.44 ** (2.5) 0.35 0.38 (
Slide 22: yy yj
We, yy yj Wa e “
Slide 23: Grow & prosper
BOREGS GROW & PROSPER