Lindab International Ab · OMXSTO:LIAB
Lindab International Ab — Q3 2013 Earnings Presentation
29 slides from Lindab International Ab's earnings presentation, 2013
Slide 1: Lindab Group Q3 2013
lindab | we simplify construction Lindab Group Q3 2013 Anders Berg, CEO Per Nilsson, CFO
Slide 2: Lindab Group – Q3 2013 Highlights
lindab | we simplify construction Lindab Group – Q3 2013 Highlights Small steps in the right direction Sales unchanged compared to last year when adjusted for currency EBIT (excluding one-off items) increased to SEK 195 m in Q3 compared to SEK 190 m last year ─ EBIT margin increased to 11.1% (10
Slide 3: Lindab Group – Q3 2013 Highlights
lindab | we simplify construction Lindab Group – Q3 2013 Highlights Small steps in the right direction Next step on our “Back to Basics – Into the Future” journey ─ ONE Lindab – new organisation structure launched ─ Flat geographical structure supported by product areas ─ Implementation of the new
Slide 4: Lindab Group Profit & Loss Q3 2013
lindab | we simplify construction Lindab Group Profit & Loss Q3 2013 SEK m Q3 2013 Q3 2012 Sales growth -1% Sales 1,753 1,773 Structure 0% EBIT* 195 190 EBIT* % 11.1 10.7 Currency effect -1% Fin net -27 -45 Organic 0% Tax -37 -28 Net profit 101 110 *) EBIT excluding one-off items of SEK -30 m in Q3
Slide 5: 2012 - 2013: weakened sales; increased efficiency
lindab | we simplify construction 2012 - 2013: weakened sales; increased efficiency Sales 12m EBIT 12m EBIT 12m Sales 12m (MSEK) EBIT (MSEK) 0% 500 7,250 460 450 443 440 445 7,000 407 400 6,750 Sales -8% 347 350 6,500 301 300 6,250 250 6,000 0 2009 2010 2011 2012 2013 EBIT LTM SEK 445 m, EBIT marg
Slide 6: Lindab Group Cash flow Q3 2013
lindab | we simplify construction Lindab Group Cash flow Q3 2013 SEK m Q3 2013 Q3 2012 Cash flow from - operating activities 234 219 - change in working capital -36 -132 - investing activities -16 -39 - financial net paid -27 -36 - tax paid -35 -28 Free cash flow 120 -16 Adjusted free cash flow* 120
Slide 7: Cash flow Q3 – working capital development
lindab | we simplify construction Lindab Group Cash flow Q3 – working capital development SEK m Q3 2013 Q3 2012 Stock -3 -15 Operating receivables -40 -41 Operating liabilities 7 -76 Total change in working capital -36 -132 The improved cash flow from change in working capital is mainly due to the
Slide 8: Lindab Group Operating cash flow trend
lindab | we simplify construction Lindab Group Operating cash flow trend Quarterly 12m Quarterly Rolling 12m (MSEK) (MSEK) 400 800 300 600 200 172 136 400 115 100 200 23 0 0 -100 -200 -200 -400 -300 -600 2010 2011 2012 2013 LTM cash flow from operating activities amounted to SEK 357 m
Slide 9: Business Areas
lindab | we simplify construction Business Areas 9
Slide 10: BA Ventilation
lindab | we simplify construction BA Ventilation Profit & Loss Q3 2013 SEK m Q3 2013 Q3 2012 Sales growth 0% Structure 0% Sales 901 904 EBIT* 79 85 Currency effect 0% EBIT* % 8.8 9.4 Organic 0% *) excluding one-off items of SEK -9 m in Q3 2013 and SEK -6 m in Q3 2012 Sales unchanged in the quarter
Slide 11: BA Building Components
lindab | we simplify construction BA Building Components Profit & Loss Q3 2013 SEK m Q3 2013 Q3 2012 Sales growth -1% Structure 0% Sales 571 576 EBIT* 64 67 Currency effect 0% EBIT* % 11.2 11.6 Organic -1% *) excluding one-off items of SEK -1 m in Q3 2013 and SEK -1 m in Q3 2012 Reduced decline ra
Slide 12: BA Building Systems
lindab | we simplify construction BA Building Systems Profit & Loss Q3 2013 SEK m Q3 2013 Q3 2012 Sales growth -4% Structure 0% Sales 281 293 EBIT* 55 48 Currency effect -2% EBIT* % 19.6 16.4 Organic -2% *) excluding one-off items of SEK -1 m in Q3 2013 Lower sales in the quarter as a result of ne
Slide 13: Growth – Operations – Innovation
lindab | we simplify construction Growth – Operations – Innovation
Slide 14: Back to Basics – Into the Future
lindab | we simplify construction Back to Basics – Into the Future Organic growth Comprehensive action programme Operational leverage Cost programme on plan Innovation Release creativity, speed and execution 14
Slide 15: Profitable Growth: One Lindab = One bottom line
lindab | we simplify construction Profitable Growth: One Lindab = One bottom line
Slide 16: Organic Growth
lindab | we simplify construction Organic Growth Simplify execution Strengthen distribution Develop project business Leverage culture and capabilities Close to the customer – Business is local Deliver more value to customers both in distribution and project business Increase our offering (impr
Slide 17: Organic Growth Activities
lindab | we simplify construction N:Shared branches Organic Growth Activities in SE, NO Simplify cross-selling and up-selling The new organisational structure will simplify WE: 80 ventilation cross-selling, leveraging on positions of strength branches N: Shared branch network – develop, expand our
Slide 18: Q3 Organic Growth Activities
lindab | we simplify construction Q3 Organic Growth Activities Distribution: Mobile shop launched in Sweden Nordic distribution agreement for Rainline, roof and wall-claddings in 300 XL-Bygg outlets in Sweden, Denmark and Norway – sales increase for the coming three years. SEK 12 m ventilation
Slide 19: Operating Leverage
lindab | we simplify construction Operating Leverage 19
Slide 20: Operating Leverage
lindab | we simplify construction Operating Leverage Platform for growth and increased profitability Cost programme full effect Focus on ROCE ”World-class” efficient production units, IT, Purchasing/sourcing, Marketing = central functions Lean management throughout – simplify execution 20
Slide 21: Simplifying Operations
lindab | we simplify construction Simplifying Operations Improving efficiency through Lean Examples: . Karlovarska production unit: Rectangular duct production output increased by 60% through re- arranging the layout and simplifying process and support flow (Q3 Increased demand for e.g. smoke evac
Slide 22: Innovation
lindab | we simplify construction Innovation 22
Slide 23: Pull-driven customer offerings
lindab | we simplify construction Pull-driven customer offerings Residential ventilation Our customers face the challenge of meeting tough European energy targets Ventilating the house with heat recovery is an easy way to meet the ventilation and energy requirements Strong potential: estimated
Slide 24: Two successful concepts
lindab | we simplify construction Two successful concepts InCapsa = simplifying energy-efficient refurbishment ─ Kalmar, 84 flats InDomo = concept for integrated duct system in new buildings ─ Copenhagen, 418 + 128 flats ─ Dublin, nursing home with 50 bedrooms and other living/working spaces. 24
Slide 25: Innovation – Q3 examples
lindab | we simplify construction Innovation – Q3 examples Lindab Construline – for energy- efficiency and sustainability ─ Concept Passive House in Poland ready, campaign in Czech Republic ─ 12% sales increase in Q3 in CEE and Nordics ─ New Wall-selector App – to help professionals quickly find t
Slide 26: Innovation – Q3 examples
lindab | we simplify construction Innovation – Q3 examples New Builders EcoBuild configurator launched as “App”. Application available on website, tablets and mobile- phones. ─ 5 orders already booked in Q3 ─ New Builders recruited ─ Some EcoBuild leads turned into larger Astron buildings CE-mar
Slide 27: Outlook
lindab | we simplify construction Outlook 27
Slide 28: Outlook – comment from the CEO
lindab | we simplify construction Outlook – comment from the CEO Slightly brighter for European construction market However, still many uncertainties in the macro-economic outlook We focus on creating offerings that are attractive irrespective of market conditions = Customer success = Our succ
Slide 29: lindab | we simplify construction
lindab | we simplify construction