Slide 1: Q3 Report 2023
An entrepreneurial world where people make the difference Bo Annvik, President and CEO Q3 Report 2023 Patrik Johnson, CFO 27 October 2023
Slide 2: Highlights third quarter 2023
Highlights third quarter 2023 ▪ Continued high demand – order intake up 11% in total of which -2% organically. Net Sales ‒ Strongest order development in Medical technology/Pharmaceutical and Water/wastewater. ‒ Weaker demand in infrastructure/construction and engineering 7.9BSEK ▪ Strong sales with
Slide 3: Order intake
Order intake QUARTERLY GROWTH MSEK Q growth 9 000 35 000 8% 7% 8 000 6% 7% 30 000 7 000 5% 6% 4% 6 000 25 000 3% 2% 5 000 20 000 1% 0% 4 000 0% 15 000 -1% -2% 3 000 -2% 2 000 10 000 -3% 2019 2020 2021 2022 2023 Organic Acquisitions Divestments Currency Q Order intake R12M Order intake Q GROWTH YTD G
Slide 4: Net sales
Net sales QUARTERLY GROWTH MSEK Q growth 9 000 35 000 8% 7% 8 000 30 000 6% 7% 7% 7 000 5% 6 000 25 000 4% 5 000 20 000 3% 4 000 2% 3% 15 000 3 000 1% 0% 2 000 10 000 0% 2019 2020 2021 2022 2023 Organic Acquisitions Divestments Currency Q Net sales R12M Net sales Q GROWTH YTD GROWTH R3Y CAGR 7,851 M
Slide 5: Sales Growth – major countries
Sales Growth – major countries + ++ +++ -- +++ - -- North America +++ - Asia --- 5 +/- = Organic growth Q323 vs Q322
Slide 6: Organic Sales Growth trend
Organic Sales Growth trend 20% ▪ Organic growth twelve consecutive quarters 15% ▪ Majority of companies grew in the 10% quarter but growth rate declining slightly 5% ▪ Organic growth in 6 out of 8 Business 0% Areas -5% ▪ Back-log is normalised -10% 2019 2020 2021 2022 2023 Organic growth Organic gro
Slide 7: EBITA
EBITA QUARTERLY GROWTH MSEK Q growth 1 400 16% 8% 15% 7% 1 200 6% 7% 14% 1 000 5% 6% 13% 800 12% 4% 600 11% 3% 400 10% 2% 200 9% 2% 1% 0% 0 8% 0% 2019 2020 2021 2022 2023 Organic Acquisitions Divestments Currency Q EBITA Q EBITA margin Q3-23 MARGIN Q GROWTH YTD GROWTH 1,190 MSEK 15.2% +15% +20% 7
Slide 8: Organic sales growth Q3 by Business Area
Organic sales growth Q3 by Business Area Total growth: +24% +24% +9% +9% +28% +16% +17% +11% ▪ Organic sales growth in 6 out of 8 Business Areas 14% 12% ▪ Strongest growth in Business Areas 10% 12% Industrial Components and Fluids & Mechanical Solutions 8% ▪ MedTech and automotive aftermarket Q orga
Slide 9: EBITA margin by Business Area
EBITA margin by Business Area 20% ▪ Improved EBITA margin in 4 Business 18% 17,4% Areas – largest improvements in Fluids & 17,0% 17,1% 16,1% 16,3% 16,5% Mechanical Solutions and Flow 16% Technology 14% 12,3% ▪ Strong price management improves gross margins Q EBITA margin 12% 10,1% 10% ▪ Higher expen
Slide 10: Acquisitions
Acquisitions Acquisitions 2023 Business Area Annual Sales Sax Lift A/S FMS 130 MSEK Q1 Hobe GmbH DACH 80 MSEK Siersema Komponenten Service B.V. Benelux 390 MSEK Safematic A/S FMS 55 MSEK Q2 Labema Oy Finland 70 MSEK I-tronik S.r.l. DACH 165 MSEK Q3 Noby A/S IC 60 MSEK Powerpoint Engineering UK 150 M
Slide 11: Successful acquisition track record
Successful acquisition track record No. of acquired companies per year Quarterly financial effects acquisitions* 18 100 25% 16 90 14 80 20% 70 12 EBITA (MSEK) EBITA margin 60 15% 10 50 8 40 10% 6 30 4 20 5% 2 10 0 0 0% Acquired EBITA Acquired EBITA margin No. of acquired companies No. of acquired co
Slide 12: Key data summary
Key data summary MSEK 2023-Q3 2022-Q3 Change 2023-YTD 2022-YTD Change Order Intake 7,262 6,535 11% 23,167 20,649 12% Net Sales 7,851 6,707 17% 24,014 19,788 21% Gross margin, % 34.8 34.2 34.7 34.6 EBITA 1,190 1,035 15% 3,628 3,017 20% EBITA-margin, % 15.2 15.4 15.1 15.2 Net financial items -134 -42
Slide 13: Cash Flow from operating activities
Cash Flow from operating activities MSEK ▪ All-time-high operating cash flow 1 400 during the quarter, 1,227 (624) MSEK 1 200 ▪ The increase versus last year was 1 000 mainly related to a more favorable working capital development 800 ▪ Inventory reduced slightly during the 600 quarter 400 ▪ The wor
Slide 14: Earnings per share
Earnings per share SEK SEK ▪ EPS declined 2% in the quarter to SEK 2,5 9 1.87 (1.90) per share 8 2,0 ▪ The improvement in EBITA was offset 7 by higher interest costs and 6 1,5 amortisations in combination with an 5 increased tax rate 4 1,0 3 ▪ 3- and 5-year rolling 4Q earnings per share CAGR, were 2
Slide 15: Net debt
Net debt SEK ▪ The interest-bearing net debt declined 12 000 120% sequentially to 9,403 (7,267) MSEK 10 000 100% ▪ The increase compared to last year is mainly due to a high acquisition pace 8 000 80% and a dampened operational cash flow 6 000 60% during last year 4 000 40% ▪ Net debt/equity ratio w
Slide 16: Balanced diversification
Balanced diversification No of companies No of product areas ~ 200 14+ ~9,300 56% Of net sales employees in 2022 44% Companies with proprietary brands Of net sales >30 2022 8,200 Technical trading companies No of customer 10 largest companies segments Countries employees 12+ ~ 20% Of annual sales 16
Slide 17: Key takeaways
Key takeaways ▪ Continued high demand situation, although somewhat dampened. The uncertainty around the general state of the economy remains for the coming quarters. ▪ Several of our companies are well positioned in structurally growing market areas with good opportunities for continued growth. ▪ So
Slide 18: Thank you!
Thank you! Indutrade
Slide 19: Financial calendar & contact details
Financial calendar & contact details Year-end report 2023 AGM 2024 Interim Report Q1 2024 Interim Report Q2 2024 Interim Report Q3 2023 Contact: ir@indutrade.com +46 8 703 03 00
Slide 20: Trusted by entrepreneurs
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