Slide 1: Year-End Report 1 April 2023 – 31 March 2024
YEAR-END REPORT 1 APRIL 2023 – 31 MARCH 2024 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: Quarter 4 Highlights
QUARTER 4 HIGHLIGHTS Net sales Solid end to a strong year SEK 5,091 m, -3% Continued stable business situation in key segments Net sales down 3% Order backlog remained at a high level and of good quality EBITA-margin Record high EBITA-margin at 15.0% 15.0% Negative one-off result effect
Slide 3: Quarter 4: Net Sales Development
QUARTER 4: NET SALES DEVELOPMENT UNDERLYING A SOLID QUARTER Net sales decreased by 3% − Organic net sales decreased by 7% − Order backlog remained at a high level − Weaker sales in Battery Systems and decreased volume business within Energy − Negative sales effects from customer claim within Energ
Slide 4: Quarter 4: EBITA Development
QUARTER 4: EBITA DEVELOPMENT IMPROVED PROFITABILITY Stable EBITA with a record high margin of 15.0% − Increased value add, improved product mix and strong contributions from acquisitions − Negative one-off effect of SEK 39 m in business area Energy − P/WC 68% (66) 4
Slide 5: Quarter 4: Business Area Development
QUARTER 4: BUSINESS AREA DEVELOPMENT STABLE MARKET CONDITIONS AT HIGH LEVELS AUTOMATION ELECTRIFICATION ENERGY INDUSTRIAL SOLUTIONS PROCESS TECHNOLOGY Net sales SEK 957 m (962) +/-0% Net sales SEK 1,040 m (1,149) -10% Net sales SEK 1,276 m (1,355) -6% Net sales SEK 930 m (937) -1% Net sales SEK 899
Slide 6: Steady Increase in Profitability
QUARTER 4 STEADY INCREASE IN PROFITABILITY 6
Slide 7: Inventory Levels Continue to Come Down
QUARTER 4 INVENTORY LEVELS CONTINUE TO COME DOWN 7
Slide 8: Low Risk Balance Sheet
QUARTER 4 LOW RISK BALANCE SHEET Equity ratio 39% (36%) Leverage 1.4 (1.5) Gearing 0.7 (0.8) 8
Slide 9: Highlights 2023/2024
FULL YEAR 2023/2024 HIGHLIGHTS High customer activity and increased profitability in all business Net sales areas SEK 20,019 m +7% Net sales up 7% and a very satisfying EBITA growth of 13% Strengthened cashflow and improved inventory levels Ten carefully selected acquisitions to strengthen a
Slide 10: A Successful Year
FULL YEAR 2023/2024 A SUCCESSFUL YEAR Net sales increased by 7% to SEK 20,019 m (18,714) The organic sales were flat, the acquired growth 5% and the currency effect was 2% EBITA increased by 13% and amounted to SEK 2,860 m (2,540) corresponding to an EBITA margin of 14.3% (13.6) Operating pr
Slide 11: Automation: Solid Year with Improved Margins
FULL YEAR 2023/2024: AUTOMATION SOLID YEAR WITH IMPROVED MARGINS Net sales increased by 5% − Tough start but with sequentially improvements during the Strong position to capture the year potential of strong driving EBITA growth of 8% forces such as Industry 4.0, − EBITA-margin 12.8% (12.5) smart
Slide 12: Electrification: Weak End to the Year
FULL YEAR 2023/2024: ELECTRIFICATION WEAK END TO THE YEAR Net sales increased by 2% − Overall stable but with variations between segments Well positioned to respond to − Challenging year for Battery Systems the strong drivers of EBITA growth of 2% electrification and carbon reduction − EBITA-mar
Slide 13: Energy: Continued High Demand in Key Segments
FULL YEAR 2023/2024: ENERGY CONTINUED HIGH DEMAND IN KEY SEGMENTS Net sales increased by 3% − Strong demand among grid owners throughout the year Strong offering that contributes − Negative effects from customer claim to the expansion of the infrastructure that will EBITA growth of 4% constitute
Slide 14: Industrial Solutions: Record Year
FULL YEAR 2023/2024: INDUSTRIAL SOLUTIONS RECORD YEAR Net sales increased by 11% − Entered the year with a very solid order backlog Creates value linked to the EBITA growth of 29% increased use of fiber- − EBITA-margin 21.0% (18.1) based materials, ergonomic products and − High margins on comple
Slide 15: Process Technology: Strong Year with Variations Between Segments
FULL YEAR 2023/2024: PROCESS TECHNOLOGY STRONG YEAR WITH VARIATIONS BETWEEN SEGMENTS Net sales increased by 18% − Good demand within energy and process industry Capturing the potential of the − Marine segment improved from low levels green energy transition and increasingly stringent emission EB
Slide 16: Focus on More Value-Add and Higher Profitability
FULL YEAR 2023/2024 FOCUS ON MORE VALUE-ADD AND HIGHER PROFITABILITY Acquisition Business area Access Net sales, SEKm* Employees* Ten companies acquired INDAG Maschinenbau GmbH Process Technology April 2023 55 40 during the fiscal year – three Clyde Holding Ltd. Process Technology April 2023 150 4
Slide 17: High Potential from International Expansion
FULL YEAR 2023/2024 HIGH POTENTIAL FROM INTERNATIONAL EXPANSION Increased sales outside the Nordics Almost half of the acquired sales during the year came from companies outside the Nordic region Strong focus on strategic and culture match regardless of geography 17
Slide 18: Highly Diversified Business
HIGHLY DIVERSIFIED BUSINESS Sales per customer segments Sales per geographic market Building & Installation 8% (9) Data & Telecom 4% (4) Sweden 26% (26) Electronics 7% (8) Denmark 12% (13) Energy 19% (19) Finland 12% (13) Vehicles 12% (12) Norway 12% (12) Medical technology 6% (7) Other Europe 30% (
Slide 19: Long-Term Shareholder Value Creation
LONG-TERM SHAREHOLDER VALUE CREATION 19
Slide 20: Summary
SUMMARY A solid Q4 concludes a strong year with high customer activity and increased profitability in all business areas Order backlog remained at a high level and of good quality Strengthened cashflow and strong financial position Strong start of the new year in M&A activities - the interna