Slide 1: Year-End Report 2018
Year-End Report 2018 Bo Annvik, CEO Patrik Johnson, CFO 13 February 2019 1
Slide 2: Summary 2018
Summary 2018 ▪ Strong year with focus on profitable growth - continued execution of successful business model and strategy ▪ Strong financial performance with all time high EBITA margin ▪ Strategic initiatives to increase value creation and business performance ▪ Updated financial targets ▪ Platform
Slide 3: Stability based on diverse segments
Stability based on diverse segments Construction/ Engineering Infrastructure Energy Healthcare 19% 17% 12% 11% Net sales per customer segment %, financial year 2018 No/low segment dependency Business cycle “hedging” 3
Slide 4: Highlights fourth quarter 2018
Highlights fourth quarter 2018 ▪ High stable demand with improved organic growth rates ▪ EBITA margin improvement both organically and through acquisitions ▪ Good performance in most business areas, particularly in UK and Fluids & Mechanical Solutions ▪ Acquisition of Thermo Electric and NRG - attra
Slide 5: Order intake
Order intake MSEK Q growth 5 000 18 000 7% 17 000 6% 4 500 6% 6% 16 000 5% 15 000 4% 4 000 4% 14 000 3% 3 500 13 000 2% 12 000 1% 3 000 11 000 0% 10 000 -1% 2 500 9 000 -2% 2 000 8 000 -3% -3% 2014 2015 2016 2017 2018 -4% Q Order intake R12M Order intake Organic Acquisitions Divestments Currency Q G
Slide 6: Net sales
Net sales MSEK Q growth 8% 5 000 18 000 17 000 7% 4 500 6% 16 000 15 000 5% 4 000 4% 14 000 4% 3 500 13 000 2% 12 000 3 000 11 000 0% 10 000 2 500 9 000 -2% 2 000 8 000 -3% 2014 2015 2016 2017 2018 -4% Q Net sales R12M Net sales Organic Acquisitions Divestments Currency Q GROWTH YTD GROWTH R3Y CAGR
Slide 7: EBITA adjusted
EBITA adjusted * MSEK Q growth 600 14% 16% 12% 14% 500 14% 10% 12% 400 8% 10% 300 8% 9% 6% 200 4% 6% 100 2% 4% 5% 4% 0 0% 2% 2014 2015 2016 2017 2018 0% Q EBITA Q EBITA margin Organic Acquisitions Divestments Currency Q GROWTH YTD GROWTH R3Y CAGR 568 MSEK +32% +20% +13% *) Excluding restructuring co
Slide 8: Organic sales growth by Business Area
Organic sales growth by Business Area 12% 11% ▪ All Business Areas grew organically in 10% the quarter 10% 9% ▪ Broad strong demand in UK – both 8% domestic and export oriented 8% companies developed positively Q organic growth 6% 7% ▪ Industry and infrastructure segment companies performed strong i
Slide 9: EBITA margin by Business Area
EBITA margin by Business Area 20% ▪ EBITA margin improved in seven out of 18% 17,2% eight Business Areas, both organically and through structural activities 16% 14,7% ▪ Benelux and DACH improvements 14% 13,8% 13,8% 13,2% primarily driven by acquisitions 13,0% 11,6% ▪ Finland benefited from restructu
Slide 10: Acquisitions/divestments 2018
Acquisitions/divestments 2018 Acquisitions BA Annual Sales Zijtveld Gripers B.V. Benelux 130 MSEK RA Howarth Engineering Ltd UK 20 MSEK Gaveco AB Flow Technology 15 MSEK Precision UK Ltd UK 130 MSEK Digitrade GmbH DACH 15 MSEK Norsecraft Tec AS Industrial Components 55 MSEK TXRX Measurement & Sensor
Slide 11: Key data summary
Key data summary MSEK 2018-Q4 2017-Q4 Change 2018 YTD 2017 YTD Change Order Intake 4,403 3,895 13% 17,073 15,051 13% Net Sales 4,446 3,932 13% 16,848 14,847 13% Gross margin, % 34.2 33.0 34.1 33.4 EBITA 568 299 90% 2,087 1 613 29% EBITA-margin, % 12.8 7.6 12.4 10.9 Net financial items -16 -17 -6% -7
Slide 12: Cash Flow from operating activities
Cash Flow from operating activities MSEK 700 ▪ Cash Flow from operating activities 600 grew with 16% to 594 MSEK, mainly 500 driven by increased profits ▪ Full year Cash Flow from operating 400 activities lower than last year due to 300 higher working capital 200 ▪ Working capital increase relates t
Slide 13: Earnings per share
Earnings per share SEK SEK 3,5 12 ▪ Q4 earnings per share rose 115% to SEK 3.05 (1.42) 3,0 10 ▪ Full year earnings per share rose 2,5 8 32% to SEK 11.31 (8.54) 2,0 ▪ Excluding restructuring 6 full year earnings per share rose 1,5 20% 4 1,0 ▪ 5 year earnings per share CAGR, 0,5 2 excluding restructur
Slide 14: Net debt
Net debt SEK 5 000 120% ▪ The interest bearing net 4 500 debt end of Q4 increased 100% 4 000 with 2% versus last year to 3 500 3,909 MSEK (3,829) 80% 3 000 ▪ Net debt/equity ratio 2 500 60% 63% (74%) – lower than 2 000 last year and quarter 40% 1 500 1 000 20% 500 0 0% 2014 2015 2016 2017 2018 Net d
Slide 15: Core Values
Core Values People make the difference Entrepreneurship Decentralisation Long-term with a passion built built on for business on trust profitable growth 15
Slide 16: Financial targets and outcome 2018
Financial targets and outcome 2018 Return Proposed Growth EBITA margin on operating Net debt/Equity dividend capital payout ratio 13% 12.4% 21% 63% 40% TARGET ≥ 10% TARGET ≥ 12% TARGET ≥ 20% TARGET ≤ 100% 30%-60% OF NET PROFIT Targets measured over a business cycle 16
Slide 17: Key takeaways and outlook
Key takeaways and outlook ▪ Continued execution of successful business model and strategy ▪ Strong quarter with stable, high demand and improved profitability and good organic growth ▪ ‘All time high’ EBITA margin for full year 2018 ▪ Diversified group with agile and flexible companies, working clos
Slide 18: Thank you! Q&A
Thank you! Thank you! Q&A Q&A 18
Slide 19: Financial Calendar & Contact details
Financial Calendar & Contact details • 25 April 2019 Interim report 1 January – 31 March 2019 • 18 July 2019 Interim report 1 January – 30 June 2019 • 25 October 2019 Interim report 1 January – 30 September 2019 Contact: Frida Adrian VP Communications, Sustainability and IR +46 70 930 93 24 frida.ad
Slide 20: Indutrade
IIT indutrade