Slide 1: Interim report January-June 2024
Presentation Interim report January-June 2024 12 July 2024
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE SECOND QUARTER SIX MONTHS MSEK 2024 2023 Change 2024 2023 Change Net sales 6,725 6,206 8.4%1 12,731 12,165 4.6%2 EBITA3 1,608 1,487 8.1% 2,886 2,817 2.5% EBITA margin3 23.9% 24.0% -0.1 22.7% 23.2% -0.5 Profit before tax 1,234 1,176 5.0% 2,175 2,233 -2.6% Net profit
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL SECOND QUARTER SIX MONTHS MSEK 2024 2023 Change 2024 2023 Change Net sales 1,639 1,504 9.0% 3,208 3,029 5.9% EBITA 364 302 20.4% 691 630 9.7% EBITA margin 22.2% 20.1% 2.1 21.5% 20.8% 0.7 DEMOLITION & TOOLS SECOND QUARTER SIX MONTHS MSEK 2024 2023 Chan
Slide 4: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH Average MSEK 2015-2023 2023 2022 2021 2020 2019 2018 2017 2016 2015 EBITA 5,664 4,662 3,709 2,702 2,523 2,168 1,732 1,377 1,186 EBITA from 536 401 488 222 221 197 198 152 118 acquisitions EBITA growth from 12% 12% 11% 18% 9% 10% 11% 14% 13% 12% acquisitions Organic E
Slide 5: Development 2015-2023
DEVELOPMENT 2015-2023 CAGR 2015- MSEK 2023 2023 2022 2021 2020 2019 2018 2017 2016 2015 EBITA 22% 5,664 4,662 3,709 2,702 2,523 2,168 1,732 1,377 1,186 EPS1 19% 7.21 6.13 5.26 3.67 3.31 3.06 2.39 2.00 1.78 Interest-bearing 17% 6,849 5,590 4,603 3,242 4,040 3,170 3,536 3,018 1,950 net debt Interest-b
Slide 6: Strong Growth in Cash Flow per Share Since IPO
STRONG GROWTH IN CASH FLOW PER SHARE SINCE IPO Free cash flow per share after capex and before dividends and acquisitions 10 9.2 8.8 9 T M 23.7% 8 24 L 2014-20 R CAG 7 6.1 5.6 5.8 6 5 3.8 4 3.0 3 2.6 2.1 1.9 2 1.1 1 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 LTM 6
Slide 7: Net Debt Development and Balance Sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 30 Jun 31 Dec 30 Jun MSEK MSEK Times 2024 2023 2023 Intangible fixed assets 23,524 21,927 21,247 12000 4 Tangible fixed assets 2,931 2,723 2,698 Financial assets 411 380 393 3,5 Inventory 4,298 3,906 4,248 10000 Accounts recei
Slide 8: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR .3 % 13 M 4 LT .3 % 2 18 – 20 M 0 06 4 LT R2 20 2 EBITA before acquisition costs and CAG 06 – s 0 Sa le R2 non-recurring items (MSEK) G A CA IT EB 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 M LT 19 19 20 20 20 20 20 20 20
Slide 9: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 25 160 22.6% 22.6% 21.6% 135% 139% 134% 140 20 120 100 15 12.5% 80 10 60 50% 40 5 20 0 0 2022 2023 2024 LTM 2022 2023 2024 LTM Target ranges 9
Slide 10: Management and Chairman
MANAGEMENT AND CHAIRMAN Per Waldemarson Therése Hoffman Martin Linder Carl Bennet CEO CFO Head of Business Area Chairman Started at Lifco 2006 Started at Lifco 2007 Systems Solutions Born: 1951 Born: 1977 Born: 1971 Started at Lifco 2009 Other assignments Education Born: 1972 Education • Deputy Chai
Slide 11: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES LIFCO Sales 2024 LTM: 25,019 MSEK EBITA 2024 LTM: 5,733 MSEK Dental Demolition & Tools Systems Solutions Leading distributors of dental products in Leading producers of demolition robots, forest Wide range of leading systems solutions Nordics and Germany machin
Slide 12: 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 13: 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 14: Sustainability an Essential Part of Our Business Strategy
SUSTAINABILITY AN ESSENTIAL PART OF OUR BUSINESS STRATEGY Invest in niche companies UN Global Compact with a sustainable signatory since 2016 business model Extended sustainability Preparing for CSRD/ESRS reporting in 2023 14
Slide 15: Prioritized Sustainability Areas and Central Targets
PRIORITIZED SUSTAINABILITY AREAS AND CENTRAL TARGETS Reduced climate Motivated employees Sound business practices and environmental impact and safe workplaces Reduce energy consumption Reduce staff turnover every All employees must be informed in relation to profit of SEK every year about the Code o
Slide 16: Examples of Organic Development
EXAMPLES OF ORGANIC DEVELOPMENT Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth 10% 10% CAGR CAGR 6% -1% 9% 8% -3% 7% 4% 221 217 212 19% 11% 198 337 183 8% 169 11% 272 32% 225 190 167 79 118 31 71 14 1997 2006 2013 2015 2017 2019 2021 2023 2000 2006 2013 20
Slide 17: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway 9% Sweden 11% UK North America 11% Germany Rest of Europe 17% Demolition & Tools 10% 28% Italy 5% Asia & Australia Rest of 8% world 1% Systems Solutions Geographic split financial year 2023. 17
Slide 18: Dental
DENTAL Sales split by product category 2023 EBITA and % of total EBITA1 2024 LTM Dental 22% Software 4% 1,309 MSEK Manufacturing 24% Sales split by geography 2023 APAC 2% Distribution North America 6% Sweden 10% 57% Prosthetics Norway 11% 15% Rest of Europe 37% Germany 34% 1Excluding HQ costs. 18
Slide 19: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin % % 11.4 15.3 TM M 24 L LT 6209 0 4 2 202 6030 6- - R 200 1400 200 6 25% CAG R 5123 5295 CAG 1200 4393 4290 20% 4185 3817 1000 3590 3435 3266 15% 800 2840 2826 2439 600 10% 1663 1674 1435 400 1048 890 5% 200 0 0% 06 07 08 09 10 11
Slide 20: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2023 EBITA and % of total EBITA1 2024 LTM Other niche machinery 17% XXXX 1,638 Demolition MSEK MSEK machines 24% Demolition & Tools 28% Sales split by geography 2023 Rest of world 2% Sweden 5% APAC 14% Germany 13% North Italy 10% Attachments America for exc
Slide 21: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin % 1 5 .7 % 1 7 .3 4 LTM LTM 20 0 6-202 % 202 4 CAGR T M 1 8 .8 6- 1 5 .7 % 1 0-2024 L 00 2000 2 0 30% R2 TM CAGR CAG 0 24 L 7097 0-2 1800 R 201 6632 25% CAG 6285 1600 1400 20% 1200 4701 1000 15% 800 3610 10% 3234 600 28
Slide 22: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2023 EBITA and % of total EBITA1 2024 LTM Systems Solutions Contract Transportation 50% manufacturing products 24% 20% 2,945 MSEK Environmental technology 28% Sales split by geography 2023 Rest of world 1% APAC 8% Sweden 16% Special North products Am
Slide 23: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin LT M 1 2 .9 % 02 4 3% 2 006-2 0. R M2 3500 30% CAG .6 % T M 13 4 LT 12178 % 2 4 L 2 2 3 .4 2010- 20 11328 6-20 TM CA G R 3000 20 0 2 4L -20 25% GR 0 9972 CA 20 1 GR 2500 CA 20% 7656 2000 15% 6258 5842 1500 4951 10% 1000
Slide 24: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments1 5000 4000 2,0% 4500 100% 3500 1,8% 4000 3000 90% 3500 1,6% 2500 3000 80% 2500 2000 1,4% 2000 1500 70% 1,2% 1500 1000 1000 60% 1,0% 500 500 0 50% 0 0,8% 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 25: 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 26: 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 27: 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 28: Overview of Acquisitions 2018-2019
OVERVIEW OF ACQUISITIONS 2018–2019 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 29: Overview of Acquisitions 2020
OVERVIEW OF ACQUISITIONS 2020 Sales at Total sales Year Company Description Type Country acquisition MSEK Rönvig Dental Dental Dental Denmark MDKK 30 Manufacturing Workplace Safety Dental Dental Denmark MDKK 79 Dental Grupa Distributor of dental products Dental Croatia MSEK 94 Cramaro Tarpaulin Tarp
Slide 30: Overview of Acquisitions 2021
OVERVIEW OF ACQUISITIONS 2021 Sales at Total sales Year Company Description Type Country acquisition MSEK Kaniedenta1 Manufacturing and sales of dental consumables Dental Germany MEUR 29 Rissmann Dental 1 Prosthetics Dental Germany MEUR 4.1 Manufacturer of cartooning and sleeving T.Freemantle System
Slide 31: Overview of Acquisitions 2022
OVERVIEW OF ACQUISITIONS 2022 Sales at Total sales Year Company Description Type Country acquisition MSEK Develops and manufactures staff attack and Specialists Alarm Services nurse call systems Dental UK MGBP 3.9 BCC Solutions Supplier of fiber equipment Systems Solutions FI MEUR 11 Trevi Benne Man
Slide 32: Overview of Acquisitions 2023
OVERVIEW OF ACQUISITIONS 2023 Sales at Total sales Year Company Description Type Country acquisition MSEK Supplier of high-end coffee machines and Real Spirit of Coffee Systems Solutions UK MGBP 24 consumables Broughton Plant Hire and Provider of plant hire solutions for the Demolition & Tools UK MG
Slide 33: Overview of Acquisitions 2024
OVERVIEW OF ACQUISITIONS 2024 Sales at Total sales Year Company Description Type Country acquisition MSEK Manufacturer of electric drive systems for CFR Systems Solutions Italy MEUR 38.5 industrial applications Manufacturer of high-end professional tile Brevetti Montolit Demolition & Tools Italy MEU
Slide 34: Number of Acquisitions 2006-2024
NUMBER OF ACQUISITIONS 2006–2024 Segment split Country Countrysplit split2006-2021 2006-2024 Country split 2017-2024 CZ EE HK HR NZ CZ FI FR HK HR NZ 1 FR NL 2 11111 FI 4 US 1 1 11 1 1 4 SE 3 DE NL US 4 28 4 17 DK 10 DK 7 57 51 28 IT 15 NO 10 15 IT 26 DE 13 23 15 NO 12 18 SE 15 UK UK 34
Slide 35: 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 36: Highlights
HIGHLIGHTS Strong track • 13.3% annual sales growth rate 2006-2024 LTM record • 18.3% annual EBITA growth rate 2006-2024 LTM 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
Slide 37: Lifco - A Safe Haven for Your Business
LIFCO A SAFE HAVEN FOR YOUR BUSINESS