Slide 1: Q2 2024 presentation
Q2 2024 presentation July 19, 2024 www.fagerhultgroup.com
Slide 2: Return to growth in Q2
Return to growth in Q2 ─ Return to order intake and net sales growth. ─ Continued growth in the renovation market where we secure many projects. ─ Improvement in the gross profit margin, operating margin impacted by higher operating costs. ─ Since 2021, the Group has reduced GHG emissions by 24%. ─
Slide 3: Q2 2024 in figures
Q2 2024 in figures Order intake: 2 131 MSEK (2 107) +0,8% organic Net sales: 2 167 MSEK (2 147) +0,9% organic Operating profit: 196 MSEK (202) Operating margin: 9,1% (9,4%) Earnings per share: 0,62 SEK (0,68) Q2 2024 presentation 3
Slide 4: YTD 2024 in figures
YTD 2024 in figures Order intake: 4 233 MSEK (4 286) -1,3% organic Net sales: 4 347 MSEK (4 371) -0,7% organic Operating profit: 417 MSEK (446) Operating margin: 9,6% (10,2%) Earnings per share: 1,40 SEK (1,57) Q2 2024 presentation 4
Slide 5: Our operating model
Our operating model Business Collection Premium Professional Infrastructure areas Smart lighting Strategic People & Innovation Sustainability focus areas Culture Q2 2024 presentation 5
Slide 6: Our sustainability agenda makes good progress
Our sustainability agenda makes good progress During 2023, the Group’s climate goals were validated by the Science Based Targets initiative (SBTi) Since our baseline year, 2021, the Group has reduced GHG emissions by 24 % By 2045 the Group will have net-zero green-house gas emissions Q2 2024 present
Slide 7: Our footprint
Our footprint Owned Energy Supply chain Use phase Scope 1 Scope 2 Scope 3 Scope 3 Direct Indirect Indirect Indirect Own operations Downstream activities Non-use phase 12% Use phase 88% Materials 8% Logistics 1% Other 2% Energy 1% 1500 kiloton CO2e Q2 2024 presentation 7
Slide 8: Our roadmap to reach our net-zero target
Our roadmap to reach our net-zero target Current focus areas: To address scopes 1 and 2 we focus on the operational painting process For scope 3 we expand our capability for smart lighting solutions portfolio Q2 2024 presentation 8
Slide 9: X Hydro
X Hydro ─ Close cooperation with Hydro Extrusion Sweden ─ Pilot project exploring circularity for aluminium extrusion ─ 100% reuse, example case Telenor, Oslo Q2 2024 presentation
Slide 10: Trick em
Trick em ─ Pushing the boundaries in lighting with revolutionary adjustable illumination ─ Demonstrating iGuzzini’s excellence in optics Q2 2024 presentation
Slide 11: VFL LED upgrade kit
VFL LED upgrade kit ─ The VFL LED upgrade kit is a tailormade retrofit solution for WE-EF luminaires ─ Replacement takes only 5 minutes and gives the luminaire a second life whilst increasing the light output or reducing the energy consumption by 40% Q2 2024 presentation 11
Slide 12: Collection: Riddarholmen LED upgrade, Stockholm
Stockholm, Sweden Collection Riddarholmen LED upgrade
Slide 13: Financial summary Q2
Financial summary Q2 Q2 2024 presentation 13
Slide 14: Financial summary YTD
Financial summary YTD Q2 2024 presentation 14
Slide 15: Sales development
Sales development Net sales R12 Net sales R12, MSEK Q2 2024 presentation 15
Slide 16: Margin development
Margin development Operating margin by quarter and R12 Operating margin,% Rolling 12 months Q2 2024 presentation 16
Slide 17: Collection
Collection Financials Q2 ─ Order intake 894 (907) MSEK, organic -1,9% ─ Net sales 1 017 (947) MSEK, organic +6,9% ─ Operating margin 11,1% (6,8%) Business update ─ Organic growth of +6,9% in net sales for the quarter ─ Second consecutive quarter with record high operating margin ─ Projects; WE-EF, G
Slide 18: Premium
Premium Financials Q2 ─ Order intake 735 (733) MSEK, organic -0,3% ─ Net sales 743 (755) MSEK, organic -2,1% ─ Operating margin 9,5% (13,0%) Business update ─ The year-to-date order intake in Premium remains ─ Operating margin lower due to volumes and investments in smart lighting ─ Projects; Fagerh
Slide 19: Professional
Professional Financials Q2 ─ Order intake 269 (240) MSEK, organic +13,8% ─ Net sales 277 (266) MSEK, organic +8,7% ─ Operating margin 8,8% (7,8%) Business update ─ Organic growth of +8,7% in net sales ─ The operating margin trend remains positive for the quarter and year to date ─ Projects; Whitecro
Slide 20: Infrastructure
Infrastructure Financials Q2 ─ Order intake 233 (227) MSEK, organic +1,8% ─ Net sales 205 (257) MSEK, organic –20,9% ─ Operating margin 4,9% (16,5%) Business update ─ The business area is currently experiencing softer market conditions, net sales impacted by the low Q1 order intake, Q2 order intake
Slide 21: Cash flow
Cash flow Operating cash flow by quarter and R12 Cash flow by quarter, MSEK Rolling 12 months Q2 2024 presentation 21
Slide 22: Net debt development
Net debt development Net debt and Net debt/EBITDA ratio Net debt, MSEK Net debt/EBITDA* Q2 2024 presentation *EBITDA adjusted for acquisitions/divestments on a proforma basis 22
Slide 23: Earnings per share
Earnings per share Earnings per share by quarter and R12 Earnings per share by quarter, SEK Rolling 12 months * Q2 2024 presentation 23
Slide 24: Conclusions and recap Q2
Conclusions and recap Q2 ─ We return to growth for order intake and net sales ─ We see continued growth in the renovation market where our solutions secure many projects ─ We are well positioned for when the markets pick-up and there is less uncertainty Q2 2024 presentation 24
Slide 25: Collection: Tokyu Kabukicho Tower, Tokyo
Tokyo, Japan Collection Tokyu Kabukicho Tower