Indutrade Ab · OMXSTO:INDT
Indutrade Ab — Investor Day (December 2018)
30 slides from Indutrade Ab's investor day presentation, Dec 4, 2018
Slide 1: Indutrade Capital Markets Day
Indutrade Capital Markets Day Kista 4 December 2018
Slide 2: Agenda
Agenda 09:00 Welcome and agenda – Frida Adrian Indutrade overview and strategy – Bo Annvik Finance – Patrik Johnson Acquisition strategy – Jonas Halvord 10:30 Break 10:40 Business Area Flow Technology and subsidiary ESI – Peter Eriksson and Morgan O’Brien Business Area Measurement & Sensor Technolog
Slide 3: Bo Annvik, President and CEO
Indutrade (6(¢( (Ama Bo Annvik President and CEO
Slide 4: Purpose of the day
Purpose of the day ▪ Present our business model and strategic direction ▪ Initiatives for growth and continues improvement ▪ Our acquisition approach ▪ Indutrade as an owner 4
Slide 5: Net sales, companies and employees
Founded in 1978, average growth of 17 per cent p.a Net sales No companies Employees R12M 2018 Q3 1978 16 BN SEK >200 >6,700 5
Slide 6: Who we are and our history
Who we are and our history Fundamental principles Decentralization Entrepreneurship Profitable growth Long history of adapting to global changes All expansion funded by own cash flow 6
Slide 7: Core Values: People make the difference
Core Values People make the difference Entrepreneurship Decentralisation Long-term with a passion built built on for business on trust profitable growth 7
Slide 8: Stability based on diverse segments
Stability based on diverse segments Construction/ Engineering Infrastructure Energy Healthcare 17% 16% 12% 12% Net sales per customer segment %, financial year 2017 No/low segment dependency Business cycle “hedging” 8
Slide 9: Good balance of companies
Good balance of companies Companies with proprietary brands Companies with trading brands 9
Slide 10: Indutrade's overall strategic direction
Indutrade’s overall strategic direction Sustainable profitable growth through structured development of the portfolio companies and further acquisitions of stable and well managed small and medium sized technical trading and industrial companies Indutrade is a long term owner with a buy and build st
Slide 11: Business objective: Sustainable Profitable Growth
Business objective Sustainable Profitable Growth 11
Slide 12: Business model remains! Develop, Acquire
Business model remains! Develop Acquire 12
Slide 13: Evolution, not revolution…
Evolution, not revolution… 13
Slide 14: Develop
Develop ▪ Right MD/Management ▪ Engage strategic direction ▪ Focused agenda – prioritize initiatives ▪ Talent management ▪ Knowledge sharing – benchmarking ▪ Investments in business-, product development, add-on acquisitions 14
Slide 15: Acquire
Acquire ▪ Profitable and well managed companies ▪ Leading position in niche market with clear offering ▪ Lead by entrepreneurs ▪ No restrictions regarding size ▪ Rationale for selling: ‒ Expansion, investment phase, internationalization, generation shift 15
Slide 16: Opportunistic acquisition approach
Opportunistic acquisition approach Healthy pipeline Add-on acquisition Geographical areas of interest 16
Slide 17: Strategic initiatives
Strategic initiatives ▪ People – talent management ▪ Knowledge sharing ▪ Indutrade tool box ▪ Sustainability as business opportunity Increase efficiency and productivity 17
Slide 18: Leadership and talent management
Leadership and talent management Build Review Recruit Leadership and Talent and Talent acquisition competence succession reviews strategy development offering Embed – in a decentralised context 18
Slide 19: Our platform for active knowledge sharing
our platform for active knowledge sharing 19
Slide 20: Indutrade Toolbox
Indutrade Toolbox ▪ Voluntary – MDs decides if value creating! ▪ Toolbox and best practice to support the companies in various areas ‒ Business Strategy ‒ Digitalization ‒ Sales efficiency ‒ Purchasing etc. 20
Slide 21: Sustainability as a business opportunity
Sustainability as a business opportunity ▪ Framework for our decentralised business model ▪ Incorporated in core processes – due diligence, acquisitions, procurement ▪ Mandatory part of strategic board meetings ▪ “Toolkit” to support the companies 21
Slide 22: Strong platform for long term value creation
Strong platform for long term value creation ▪ New Business Areas established 2018 ▪ Group Management – extended and strengthened ▪ International capabilities within the Group ▪ Reflect international business scope and growth potential ▪ Scalable – new Business Area organization has the structure an
Slide 23: New Management Team established
New Management Team established Peter Eriksson Patrik Johnson Morgan O’Brien Åsa Wirsenius Peter Rowlands Patrik Stolpe Robert Timmer Advisor to CEO CFO Flow Technology Group HR UK Measurement & Benelux Sensor Technology Bo Annvik President and CEO Susann Nyberg Joakim Skantze Markus Rüedin Juha Kuj
Slide 24: Financial targets
Financial targets Measured over a business cycle Return on Growth EBITA margin operating capital Net debt/Equity Dividend ≥10% ≥12% ≥20% ≤100% 30%-60% prev 10% of net profit 24
Slide 25: Financial targets and outcome
Financial targets and outcome Last five-year period Average return Average Net Average Average debt/Equity Dividend on operating annual growth EBITA margin end of the respective payout ratio capital year ranged 12% 11.4% 20% 74-78% 43% Financial year 2013-2017 25
Slide 26: Profitable growth since the IPO
Profitable growth since the IPO Net Sales, SEK m Adjusted EBITA-margin 16 000 16% 14 000 14% 12 000 12% EBITA Financial Target 10 000 10% 8 000 8% 6 000 6% 4 000 4% 2 000 2% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 26
Slide 27: Value creation since the IPO 2005
Value creation since the IPO 2005 SEK 400 350 Indutrade 300 total return 250 200 150 100 SIX return 50 index 0 27
Slide 28: Adapt to changes and ability to handle challenges
Adapt to changes and ability to handle challenges Net Sales, SEK m Adjusted EBITA-margin 14 000 Global Financial 14% crisis 12 000 12% 10 000 10% 8 000 8% 6 000 6% Real Estate IT/Millenium crisis crisis 4 000 4% 2 000 2% 0 0% 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Slide 29: Key takeaways
Key takeaways ▪ Continued execution of successful business model and strategy ▪ Strategic initiatives to increase value creation and business performance ▪ Updated financial target ▪ Diversified conglomerate with agile and flexible companies, working closely with their customers ▪ Platform in place
Slide 30: IIT indutrade
IIT indutrade