Lindab International Ab · OMXSTO:LIAB
Lindab International Ab — Q4 2014 Earnings Presentation
30 slides from Lindab International Ab's earnings presentation, February 2015
Slide 1: Lindab Group Q4 and Full Year 2014
lindab | we simplify construction Lindab Group Q4 and Full Year 2014 Anders Berg, CEO Per Nilsson, CFO
Slide 2: Highlights
lindab | we simplify construction Highlights 2
Slide 3: First year as One Lindab: key highlights 2014
lindab | we simplify construction First year as One Lindab moving in One direction Some key highlights 2014 Acquisitions Novo Clima, Sweden: in-house production of chilled beams (ICS), improving delivery performance, service and efficiency Klimasystem AS, Norway: adding competence in ICS and str
Slide 4: Lindab Group – Q4 2014 Highlights
lindab | we simplify construction Lindab Group – Q4 2014 Highlights A challenging quarter involving many activities Sales increased by 3% compared to last year, or 1% when adjusted for currency and structure ─ Products & Solutions: 8% (5% adjusted) ─ Building Systems: -23% (-17% adjusted) EBIT a
Slide 5: Lindab Group – Q4 2014 Highlights
lindab | we simplify construction Lindab Group – Q4 2014 Highlights A challenging quarter involving many activities Uncertainty in Russia and Belarus, sharp fall in Rouble ─ Strong impact on Building Systems division ─ Continued cautious outlook for this region Continued positive development in
Slide 6: Financials
lindab | we simplify construction Financials 6
Slide 7: Lindab Group Profit & Loss Q4 2014
lindab | we simplify construction Lindab Group Profit & Loss Q4 2014 SEK m Q4 2014 Q4 2013 Sales growth 3% Sales 1,836 1,786 EBIT* 102 158 Structure 0% EBIT* % 5.6 8.8 Currency effect 2% Fin net -18 -28 Organic 1% Tax -27 -27 Net profit 36 99 *) EBIT excluding one-off items of SEK -21 m in Q4 2014 a
Slide 8: 2012 - 2014: flat sales; increased efficiency
lindab | we simplify construction 2012 - 2014: flat sales; increased efficiency Sales 12m EBIT 12m EBIT 12m Sales 12m (MSEK) (MSEK) EBIT 600 +12% 7,250 550 497 Sales 7,000 498 0% 500 460 6,750 450 407 400 6,500 347 350 6,250 300 6,000 250 0 2010 2011 2012 2013 2014 EBIT L12M SEK 497 m, EBIT margin
Slide 9: Lindab Group Financial net
lindab | we simplify construction Lindab Group Financial net L12M Financial net as % of average Net debt % Actual Actual adj. for release of old agreement costs 9 8 7 6 5 4 0 Dec Dec Dec 2012 2013 2014 Significantly lower financing costs as a result of the new credit agreement, as well as lower in
Slide 10: Lindab Group Cash flow Q4 2014
lindab | we simplify construction Lindab Group Cash flow Q4 2014 SEK m Q4 2014 Q4 2013 Cash flow from - operating activities 106 171 - change in working capital 171 323 - investing activities -47 -35 - financial net paid -10 -19 - tax paid -4 -20 Free cash flow 216 420 Adjusted free cash flow* 226 4
Slide 11: Cash flow Q4 – working capital development
lindab | we simplify construction Lindab Group Cash flow Q4 – working capital development SEK m Q4 2014 Q4 2013 Stock 97 141 Operating receivables 242 249 Operating liabilities -168 -67 Total change in working capital 171 323 The change in cash flow from change in working capital is lower than las
Slide 12: Lindab Group Operating cash flow trend
lindab | we simplify construction Lindab Group Operating cash flow trend Quarterly Quarterly L12M L12M (MSEK) (MSEK) 500 455 800 400 600 324 300 252 263 400 192 200 200 100 0 0 -200 -100 -200 -400 -300 -600 2010 2011 2012 2013 2014 L12M cash flow from operating activities amounted to SEK 278 m 12
Slide 13: Segments
lindab | we simplify construction Segments 13
Slide 14: Products & Solutions
lindab | we simplify construction Products & Solutions Profit & Loss Q4 2014 SEK m Q4 2014 Q4 2013 Sales growth 8% Structure 0% Sales 1,587 1,464 EBIT* 106 92 Currency effect 3% EBIT* % 6.7 6.3 Organic 5% *) excluding one-off items of SEK -13 m in Q4 2014 and SEK -4 m in Q4 2013 All regions within
Slide 15: Building Systems
lindab | we simplify construction Building Systems Profit & Loss Q4 2014 SEK m Q4 2014 Q4 2013 Sales growth -23% Structure 0% Sales 249 322 EBIT* 4 71 Currency effect -6% EBIT* % 1.6 22.0 Organic -17% *) excluding one-off items of SEK -8 m in Q4 2014 and SEK 0 m in Q4 2013 The decline in sales is
Slide 16: Sales development by product areas
lindab | we simplify construction Sales development by product areas Organic growth, L3M Products & Solutions Building Systems Ventilation Products Indoor Climate Solutions Building Product Building Solutions 60% 30% 45% 20% 30% 10% 15% 0% 0% -10% -15% -20% -30% Dec Dec Dec Dec Dec Dec 2012 2013 201
Slide 17: Market Development
lindab | we simplify construction Market Development 17
Slide 18: Market Development
lindab | we simplify construction Market Development Economic development in Euro zone Sources: Eurostat & European Comission The economic recovery in the Euro zone has slowed down since spring 2014 Though, the economic recovery remains fairly strong in Lindab’s largest and third largest markets
Slide 19: Worsened conditions in Russia
lindab | we simplify construction Worsened conditions in Russia Lindab’s exposure to Russia Russian GDP growth vs oil price development (2014): Sources: Federal State Statistics Service (RU) & ICE Futures Europe – 4% of Group sales – 27% of Building Systems sales Effect by rouble fall on Lindab
Slide 20: Strategy update
lindab | we simplify construction Strategy update 20
Slide 21: Recap – Our Strategy Model
lindab | we simplify construction Recap – Our Strategy Model Simplifying is our passion, ultimate comfort is our vision 5-8% 10% Annual growth both 2.5 organic and acquired Operating margin Long term Net debt / over a business cycle over a business cycle EBITDA adjusted for seasonality People Produc
Slide 22: Stress-testing the Strategy
lindab | we simplify construction Stress-testing the Strategy ”What gets measured gets done!” • Thorough planning, stress-testing and transformation of the strategy into Strategy Maps using balanced score card methodology. • Visual follow up via large whiteboards and regular pulse meetings. 22
Slide 23: Strategy implementation at Country level
lindab | we simplify construction Strategy implementation at Country level Example from workshop with Management and Middle management in Denmark ”Culture eats strategy for breakfast” • Five Strategy Ambassadors will assist in rolling out the strategy at country level. • Commitment, will-power and c
Slide 24: Efficient Availability – optimising our flows
lindab | we simplify construction Efficient Availability – optimising our flows ”The right product at the right place at the right time” • Logistics Excellence Audits – identify best practise and drives continuous improvements. So far, carried out in Denmark, Norway, Finland, France and Czech Republ
Slide 25: ONE Lindab – fasteners for every need
lindab | we simplify construction ONE Lindab – fasteners for every need • Unite Fasteners: Sales growth by 17 % in 2014 • Strong focus on display and and know-how in Lindab’s Nordic branches has yielded results • Certified, state-of-the art fasteners with perfect colour match to all building product
Slide 26: Acquisitions, part of the strategy, primarily in two areas
lindab | we simplify construction Acquisitions, part of the strategy, primarily in two areas Solutions Leading European companies within categories “Residential and Light Commercial Ventilation”, “Fire and smoke” and “Indoor Climate Solutions” Market excellence Companies that add distribution in new
Slide 27: Adding competitive edge within Ventilation Solutions
lindab | we simplify construction Adding competitive edge within Ventilation Solutions European certified competence within Fire & Smoke solutions • MP3, Italy, Ventilations Solutions Company adding competence and market coverage • Annual turnover approx. SEK 210 m with EBIT approx. SEK 20 million.
Slide 28: Adding profitable growth by strengthening our distribution offering
lindab | we simplify construction Adding profitable growth by strengthening our distribution offering Innovative, several patented, fastening systems for standing seam roofing and different types of roof constructions • Bjarne Systems AB acquired on 14 November • Annual sales: SEK 12 million • Prove
Slide 29: … and bring more value to more people
lindab | we simplify construction Lindab Solus Lindab Fans Lindab Cassette Lindab Residential Lindab Rainline Lindab Pascal Lindab Fire & Smoke Lindab Airy Lindab ADS Installer Lindab Architect Contractor Developer Lindab We simplify … … and bring more value to more people Lindab AHU Lindab IT Solut
Slide 30: CMD May 2015
lindab | we simplify construction CMD 20 May 2015 Mark your calendar 30