Slide 1: Year-End Report January−December 2019
Presentation Year-End Report January−December 2019 31 January 2020
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q419 Q418 Change 2019 2018 Change Net sales 3,741 3,454 8.3%1 13,845 11,956 15.8%2 EBITA*** 651 670 -2.8% 2,523 2,168 16.4% EBITA margin3 17.4% 19.4% -2.0 18.2% 18.1% 0.1 Profit before tax 548 598 -8.4% 1,996 1,858 7.4% Net profit for the period 442 453 -2.4% 1
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q419 Q418 Change 2019 2018 Change Net sales 1,137 1,144 -0.6% 4,393 4,185 5.0% EBITA* 206 219 -5.9% 874 802 9.0% EBITA margin* 18.1% 19.1% -1.0 19.9% 19.2% 0.7 DEMOLITION & TOOLS MSEK Q419 Q418 Change 2019 2018 Change Net sales 886 788 12.4% 3,61
Slide 4: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH MSEK 2019 2018 2017 2016 2015 EBITA 2,523 2,168 1,732 1,377 1,186 EBITA from acquisitions 221 197 198 152 118 % growth 10% 11% 14% 13% 12% Of which from previous year’s 43 124 68 16 27 acquisitions Of which from current year’s 178 73 130 136 91 acquisitions Organic E
Slide 5: Net Debt Development and Balance Sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 31 Dec 31 Dec 30 Sep 6000 4 MSEK 2019 2018 2019 MSEK Times Intangible fixed assets 11,209 9,133 10,969 Tangible fixed assets 1,503 611 1,358 3,5 Financial assets 182 153 196 5000 Inventory 1,997 1,710 2,193 3 Accounts receivab
Slide 6: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR EBITA before acquisition costs and non-recurring items (MSEK) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBITA margin 14.2% 15.0% 15.3% 17.3% 18.1% 18.2% Dental Demolition & Tools Systems So
Slide 7: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 165% 21.0% 150% 19.3% 19.5% 108% 12.5% 50% 2017 2018 2019 2017 2018 2019 Target ranges ROCE has been negatively impacted by the implementation of IFRS 16 as of 1 January 2019. 7
Slide 8: Lifco 21 Years
LIFCO 21 YEARS Top Ten Swedish Large Caps 8
Slide 9: Four Persons at the Head Office
FOUR PERSONS AT THE HEAD OFFICE Per Waldemarson Therése Hoffman Martin Linder Ingvar Ljungqvist Carl Bennet CEO CFO Head of Business Area Head of Acquisitions Chairman Born: 1977 Born: 1971 Systems Solutions Born: 1960 Born: 1951 Education Education Born: 1972 Education Other assignments • MSc in Bu
Slide 10: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES Sales 2019: 13,845 MSEK EBITA 2019: 2,523 MSEK Dental Demolition & Tools Systems Solutions Leading distributors of dental products in Leading producers of demolition robots and Wide range of leading systems solutions Nordics and Germany attachments for excavato
Slide 11: A Safe Haven for Your Business
A SAFE HAVEN FOR YOUR BUSINESS Lifco is a long-term • Lifco basically never sells a company owner • All decisions taken at local management level The business stays • No forced synergies or integration independent and local • Lifco has never moved a business Incremental and continuous • No big shake
Slide 12: Decentralized Profit-Oriented Culture
DECENTRALIZED PROFIT-ORIENTED CULTURE Right person in the right position • Motivated managers who deliver results Continuous pricing optimization • Focus on customers with potential for sustainable profit growth Optimized management structure • Focus on value adding personnel and minimized bureaucra
Slide 13: Sustainability an Integrated Part of Our Business Strategy
SUSTAINABILITY AN INTEGRATED PART OF OUR BUSINESS STRATEGY Code of Conduct Invest in niche All subsidiaries companies UN Global Compact must apply with a sustainable signatory business model All employees must be informed Any deviation to the Code Sustainability part of Conduct is Whistleblower of o
Slide 14: Examples of Organic Development
EXAMPLES OF ORGANIC DEVELOPMENT Dental1 − EBIT (MSEK) and organic EBIT growth Brokk2 − EBIT (MSEK) and organic EBIT growth CAGR CAGR 9% 8% 7% 19% -3% 4% 11% 8% 225 212 198 32% 190 183 169 167 11% 118 79 71 31 14 1997 2006 2013 2015 2017 2019 2000 2006 2013 2015 2017 2019 EBIT EBIT 5% 12% 18% 19% 20%
Slide 15: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway Sweden 12% 15% North Germany Rest of America Europe 16% Demolition & Tools 10% 35% Asia & Australia Rest of 11% World 1% Systems Solutions Note: Geographic split financial year 2019. 15
Slide 16: Dental
DENTAL Sales split by product category 2019 EBITA* and % of% total EBITA** 2019 Manufacturing Software Dental 33% Software 3% 874 MSEK Manufacturing 12% Distribution 66% Prosthetics 19% Sales split by geography 2019 North America 6% APAC 1% Sweden 13% Norway 12% Prosthetics Distribution Rest of Euro
Slide 17: Strong Foothold in Key Markets
STRONG FOOTHOLD IN KEY MARKETS Lifco’s dental market presence and example of brands used in different markets Lifco’s market positions within dental consumables Sweden Norway Denmark Finland Germany Rest of Europe Distribution of consumables ✓ ✓ ✓ ✓ ✓ ✓ FI ✓ Distribution of equipment ✓ ✓ ✓ ✓ Nordics
Slide 18: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1000 20,0% 4393 900 18,0% 4185 800 16,0% 3817 3590 3435 700 14,0% 3266 2840 2826 600 12,0% 2439 500 10,0% 400 8,0% 1663 1674 1435 300 6,0% 1048 890 200 4,0% 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 19: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2019 EBITA* and % of total EBITA** 2019 % Demolition machines 834 Demolition MSEK machines 35% Demolition & Tools 32% Sales split by geography 2019 Rest of world 1% Sweden 8% Norway 1% APAC 19% Attachments for Germany excavators and 16% cranes 65% Attachmen
Slide 20: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 900 30,0% 4000 3610 800 3500 25,0% 700 3000 2820 600 20,0% 2500 2261 500 2000 15,0% 1725 400 1574 1500 1289 1176 1189 300 10,0% 1039 992 1000 862 743 736 200 5,0% 500 373 100 0 0 0,0% 2006 2007 2008 2009 2010 2011 2012
Slide 21: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2019 EBITA* and % of total EBITA** 2019 % Environ- Systems Contract mental Solutions manufacturing technology 35% Contract 909 MSEK Environmental manufacturing 18% technology 32% Construc- tion material Forest 15% Sales split by geography 2019 Rest o
Slide 22: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1000 18,0% 900 16,0% 5842 800 14,0% 4951 700 12,0% 3952 600 3671 10,0% 500 2892 8,0% 2428 400 2276 2168 2247 2055 2014 6,0% 1869 1747 300 1366 4,0% 200 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 23: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments1 2500 90% 2000 2,0% 1800 85% 1,8% 2000 1600 80% 1400 1,6% 1500 75% 1200 70% 1000 1,4% 1000 800 65% 1,2% 600 60% 500 400 1,0% 55% 200 0 50% 0 0,8% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 20
Slide 24: Overview of Acquisitions 2006–2012
OVERVIEW OF ACQUISITIONS 2006–2012 Sales at Total sales Year Company Description Type Country acquisition MSEK Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and services Dental Finland MEUR 3 132 Elektronikprod
Slide 25: Overview of Acquisitions 2014–2016
OVERVIEW OF ACQUISITIONS 2014–2016 Sales at Total sales Year Company Description Type Country acquisition MSEK 2014 MDH Producer of dental prosthetics Dental Germany MEUR 44 400 Auger Torque Producer of earth drills Demolition & Tools UK MGBP 10 J.H. Orsing Dental products Dental Sweden MSEK 20 Prev
Slide 26: Overview of Acquisitions 2017
OVERVIEW OF ACQUISITIONS 2017 Sales at Total sales Year Company Description Type Country acquisition MSEK Haglöf Sweden Professional forest inventory instruments Systems Solution Sweden MSEK 60 Hultdins Manufactures tools for forest machines Demolition & Tools Sweden MSEK 152 Silvent Energy optimiza
Slide 27: Overview of Acquisitions 2018–2020
OVERVIEW OF ACQUISITIONS 2018–2020 Sales at Total sales Year Company Description Type Country acquisition MSEK Computer konkret Software for dentists Dental Germany MEUR 3.8 Spocs Assembling and testing of electronic products Systems Solutions Sweden MSEK 61 Norway MNOK 95 Dental Direkt - 3D Dental
Slide 28: Number of Acquisitions 2006–2020
NUMBER OF ACQUISITIONS 2006–2020 Segment split Country split HK NZ EE HR FR US 11 1 21 IT 2 3 FI 3 SE 23 28 30 30 UK 5 DK 6 13 13 12 13 NO DE 28
Slide 29: Financial Targets
FINANCIAL TARGETS • Organic growth in EBITA in excess of GDP growth in relevant geographies Growth in EBITA • Acquisitions to add additional growth EBITA/Capital • More than 50% employed1 Net debt/EBITDA • Normally in the range 2−3x Dividend policy • Distribute 30−50% of net profit as % of net profi
Slide 30: Highlights
HIGHLIGHTS Strong track • 13.6% annual sales growth rate 2006−2019 record • 18.4% annual EBITA growth rate 2006−2019 Focus on • Good profitability is a prerequisite for sustainable growth profitability Strong market • Strong market positions in the Nordic markets in the Dental segment (top 2−3) and
Slide 31: Lifco
LIFCO A SAFE HAVEN FOR YOUR BUSINESS