Slide 1: Interim Report January-September 2019
An entrepreneurial world where people make the difference Interim Report Bo Annvik, CEO Patrik Johnson, CFO January-September 2019 25 October 2019
Slide 2: Highlights Q3 2019
Highlights Q3 2019 ▪ Order intake and sales grew organically with positive book to bill ▪ Demand remained at good level, but flattening out and increased variation between companies, segments and markets ▪ Stable EBITA margin ▪ Solid cash flow during the quarter, working capital still on high level
Slide 3: Order intake
Order intake ORGANIC ACQUISITIONS + 5% +8% Q GROWTH YTD GROWTH R3Y CAGR 4,638 MSEK +13% +10% +15% 3
Slide 4: Net sales
Net sales Q GROWTH YTD GROWTH R3Y CAGR 4,595 MSEK +12% +9% +13% 4
Slide 5: EBITA
EBITA* Q GROWTH YTD GROWTH R3Y CAGR 588 MSEK +12% +12% +16% *) Excluding restructuring costs 2017-Q4 5
Slide 6: Organic sales growth by Business Area
Organic sales growth by Business Area Total growth: ▪ Sales grew organically in 7 of our 8 Business Areas ▪ Variation increasing between companies, segments and markets ▪ Growth in Business Area DACH supported by demand from Swiss process industry ▪ The MedTech segment driving Business Area Industri
Slide 7: EBITA margin by Business Area
EBITA margin by Business Area ▪ Strongest development in Finland and Fluids & Mechanical Solutions driven by organic growth in several companies, cost efficiency measures and divestments ▪ Lower sales in the Netherlands and Germany impacting profitability of Business Area Benelux and DACH ▪ Margins
Slide 8: Acquisitions 2019
Acquisitions 2019 Acquisitions Business Area Annual Sales Q1 Weldability Sif UK 100 MSEK STRIHL Scandinavia AB Fluids & Mechanical Solutions 60 MSEK Q2 Acumo AB Industrial Components 60 MSEK QbiQ Group B.V. Benelux 320 MSEK Adam Equipment Co Ltd Measurement & Sensor Technology 150 MSEK Datum Equipme
Slide 9: Key data summary
Key data summary MSEK 2019-Q3 2018-Q3 Change 2019-YTD 2018-YTD Change Order Intake 4,638 4,106 13% 13,901 12,670 10% Net Sales 4,595 4,115 12% 13,548 12,402 9% Gross margin, % 33.9 34.1 34.1 34.1 EBITA 588 525 12% 1,699 1,519 12% EBITA-margin, % 12.8 12.8 i725) 12.2 Net financial items -33 -21 57% -
Slide 10: Overview IFRS 16 effects
Overview IFRS 16 effects Item / KPI Net debt Finance net Depreciation EBITA EBITDA Net debt / equity Impact +842 MSEK -15 MSEK -210 MSEK +15 MSEK +210 MSEK +13%-points Comment Opening balance Increased costs YTD-2019 Increased costs YTD-2019 Increased result YTD-2019 Increased result YTD-2019 Approx
Slide 11: Cash Flow from operating activities
Cash Flow from operating activities ▪ Cash flow from operating activities grew 13% from 472 MSEK to 534 MSEK ▪ High level from historical perspective, but growth versus last year driven from IFRS 16 ▪ Working capital still on high level, mainly due to inventory build-up to ensure delivery service an
Slide 12: Earnings per share
Earnings per share ▪ Q3 earnings per share grew 8% to SEK 3.05 (2.83) ▪ Improvement driven by higher EBITA, but slightly offset by increased amortizations and financing costs ▪ 3- and 5-year earnings per share CAGR, were 15% respectively 12
Slide 13: Net debt
Net debt ▪ The interest-bearing net debt end of Q3 increased to 6,342 (4,324) MSEK ▪ Driven by the high acquisition pace and the implementation of IFRS 16 ▪ Net debt/equity ratio increased to 91% (73%). The ratio would have been approximately 78% excluding IFRS 16 effects. 13
Slide 14: Successful business model stands firm: Develop, Acquire
Successful business model stands firm Develop Acquire 14
Slide 15: Strategic initiatives
Strategic initiatives ▪ People ▪ Indutrade toolbox ▪ Active Knowledge Sharing ▪ Sustainability as business opportunity 15
Slide 16: Key takeaways
Key takeaways ▪ Stable level of earnings ▪ Order intake and sales grew organically ▪ Demand at good level, but flattening out with increased variation between companies and segments ▪ Continued high pace of acquisitions and opportunities remain good ▪ Diversified Group with agile and flexible compan
Slide 17: Thank you! Q&A
Thank you! Q&A
Slide 18: Trusted by entrepreneurs
Trusted by entrepreneurs IF indutrade
Slide 19: Financial Calendar & contact details
Financial Calendar & contact details 5 February 2020 Year End Report 1 January – 31 December 2019 27 April 2020 Interim Report 1 January – 31 March 2020 6 May 2020 - Annual General Meeting 17 July 2020 Interim report 1 January – 30 June 2020 20 October 2020 Interim report 1 January – 30 September 20