Slide 1: Interim Report January−September 2018
Presentation Interim Report January−September 2018 25 October 2018
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q318 Q317 Change 9M18 9M17 Change Net sales 2,787 2,365 17.8%* 8,502 7,241 17.4%** EBITA*** 520 404 28.7% 1,498 1,222 22.6% EBITA margin*** 18.7% 17.1% 1.6 17.6% 16.9% 0.7 Profit before tax 436 332 31.3% 1,260 1,031 22.2% Net profit for the period 327 254 28.7%
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q318 Q317 Change 9M18 9M17 Change Net sales 975 848 15.0% 3,041 2,809 8.3% EBITA* 192 155 23.9% 583 517 12.8% EBITA margin* 19.7% 18.2% 1.5 19.2% 18.4% 0.8 DEMOLITION & TOOLS MSEK Q318 Q317 Change 9M18 9M17 Change Net sales 724 569 27.2% 2,032 1,
Slide 4: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH MSEK 2017 2016 2015 EBITA 1,732 1,377 1,186 EBITA from acquisitions 198 152 118 % growth 14% 13% 12% Of which from previous year’s 68 16 27 acquisitions Of which from current year’s 130 136 91 acquisitions Organic EBITA growth 157 39 102 % growth 11% 3% 11% Acquired
Slide 5: Net Debt Development and Balance Sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 30 Sep 31 Dec 30 Sep MSEK 2018 2017 2017 MSEK Times Intangible fixed assets 9,322 8,288 8,017 4500 4 Tangible fixed assets 597 550 530 4000 Financial assets 150 130 113 3,5 Inventory 1,759 1,391 1,353 3500 Accounts receivable
Slide 6: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR EBITA before acquisition costs (MSEK) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM EBITA margin 14.2% 15.0% 15.3% 17.3% 17.8% Dental Demolition & Tools Systems Solutions Note: IFRS accounting s
Slide 7: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 161% 150% 19.3% 20.0% 139% 18.6% 12.5% 50% 2016 2017 2018 LTM 2016 2017 2018 LTM Target ranges 7
Slide 8: Lifco 20 Years
LIFCO 20 YEARS Top Ten Swedish Large Caps 8
Slide 9: Three Persons at the Head Office
THREE PERSONS AT THE HEAD OFFICE Fredrik Karlsson Per Waldemarson Ingvar Ljungqvist Therése Hoffman Carl Bennet CEO Deputy CEO Head of Acquisitions CFO Chairman Born: 1962 Born: 1977 Born: 1960 Born: 1971 Born: 1951 Education Education Education Education Other assignments • MSc in Engineering • MSc
Slide 10: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES Sales 2018 LTM: 11,291 MSEK EBITA 2018 LTM: 2,008 MSEK Dental Demolition & Tools Systems Solutions Leading distributors of dental products in Leading producers of demolition robots and Wide range of leading systems solutions Nordics and Germany attachments for
Slide 11: A Safe Haven for Your Business
A SAFE HAVEN FOR YOUR BUSINESS Lifco is a long-term • Lifco basically never sells a company owner • All decisions taken at local management level The business stays • No forced synergies or integration independent and local • Lifco has never moved a business Incremental and • No big shake-outs. We l
Slide 12: Decentralized Profit Oriented Culture
DECENTRALIZED PROFIT ORIENTED CULTURE Right person in the right position • Motivated managers who deliver results Continuous pricing optimization • Focus on customers with potential for sustainable profit growth Optimized management structure • Focus on value adding personnel and minimized bureaucra
Slide 13: Examples of Value Creation
EXAMPLES OF VALUE CREATION Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth CAGR CAGR 7% 8% 19% 4% 11% 8% 190 212 167 32% 183 169 11% 118 71 79 31 14 1997 2006 2013 2015 2017 2000 2006 2013 2015 2017 EBIT EBIT 5% 12% 18% 19% 20% 10% 27% 33% 40% 40% margin ma
Slide 14: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway 11% Sweden 18% North Germany Rest of America 18% Europe Demolition & Tools 10% 32% Asia & Australia Rest of 10% World 1% Systems Solutions Note: Geographic split financial year 2017 14
Slide 15: Dental
DENTAL Sales split by product category 2017 % EBITA* and % of total EBITA** 2018 LTM Manufacturing Software Dental 36% Software 2% 767 MSEK Manufacturing 10% Distribution 69% Prosthetics 18% Sales split by geography 2017 APAC 1% North America 6% Sweden 15% Norway 10% Rest of Prosthetics Distribution
Slide 16: Strong Foothold on Key Markets
STRONG FOOTHOLD ON KEY MARKETS Lifco’s dental market presence and example of brands used in different markets Lifco’s market positions within dental consumables Sweden Norway Denmark Finland Germany Rest of Europe Distribution of consumables Distribution of FI equipment Nordics
Slide 17: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 900 20,0% 4,049 3,817 800 18,0% 3,590 3,435 16,0% 3,266 700 14,0% 2,840 2,826 600 12,0% 2,439 500 10,0% 400 1,663 1,674 8,0% 1,435 300 6,0% 1,048 890 200 4,0% 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 18: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2017 EBITA* and % of total EBITA** 2018 LTM % Demolition machines 685 Demolition MSEK machines 44% Demolition & Tools 32% Sales split by geography 2017 Rest of world 1% Sweden 10% Norway 1% APAC 16% Attachments for Germany excavators and 17% cranes 56% Atta
Slide 19: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 3000 800 30,0% 2,666 700 2500 25,0% 2,261 600 2000 20,0% 1,726 500 1,574 1500 400 15,0% 1,289 1,176 1,189 1,039 992 300 1000 862 10,0% 743 736 200 500 373 5,0% 100 0 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 20: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2017 EBITA* and % of total EBITA** 2018 LTM % Environ- Systems Contract mental Solutions manufacturing technology 32% Contract 668 MSEK Environmental manufacturing 23% technology 29% Construc- tion material Sales split by geography 2017 Rest of world
Slide 21: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 800 16,0% 4,576 700 14,0% 3,952 3,671 600 12,0% 2,892 500 10,0% 2,428 2,276 2,247 400 8,0% 2,168 2,055 2,014 1,869 1,747 300 6,0% 1,366 200 4,0% 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 22: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments 1400 90% 1800 2,0% 1600 1200 85% 1,8% 1400 80% 1000 1200 1,6% 75% 800 1000 70% 1,4% 600 800 65% 600 1,2% 400 60% 400 200 1,0% 55% 200 0 50% 0 0,8% 2014 2015 2016 2017 2014 2015 2016 2017 Operating c
Slide 23: Overview of Acquisitions 2006–2012
OVERVIEW OF ACQUISITIONS 2006–2012 Sales at Total sales Segment split - # of acquisitions Year Company Description Type Country acquisition MSEK 2006-2018 Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and servi
Slide 24: Overview of Acquisitions 2014–2016
OVERVIEW OF ACQUISITIONS 2014–2016 Sales at Total sales Year Company Description Type Country acquisition MSEK 2014 MDH Producer of dental prosthetics Dental Germany MEUR 44 400 Auger Torque Producer of earth drills Demolition & Tools UK MGBP 10 J.H. Orsing Dental products Dental Sweden MSEK 20 Prev
Slide 25: Overview of Acquisitions 2017
OVERVIEW OF ACQUISITIONS 2017 Sales at Total sales Year Company Description Type Country acquisition MSEK Haglöf Sweden Professional forest inventory instruments Systems Solution Sweden MSEK 60 Hultdins Manufactures tools for forest machines Demolition & Tools Sweden MSEK 152 Silvent Energy optimiza
Slide 26: Overview of Acquisitions 2018
OVERVIEW OF ACQUISITIONS 2018 Sales at Total sales Year Company Description Type Country acquisition MSEK Computer konkret Software for dentists Dental Germany MEUR 3.8 Spocs Assembling and testing of electronic products Systems Solutions Sweden MSEK 61 Norway MNOK 95 Dental Direkt - 3D Dental Distr
Slide 27: Financial Targets
FINANCIAL TARGETS • Organic growth in EBITA in excess of GDP growth in relevant geographies Growth in EBITA • Acquisitions to add additional growth EBITA/Capital • More than 50% employed1 Net debt/EBITDA • Normally in the range 2-3x Dividend policy • Distribute 30-50% of net profit as % of net profi
Slide 28: Highlights
HIGHLIGHTS Strong track • 12.9% annual sales growth rate 2006-2018 LTM record • 17.9% annual EBITA growth rate 2006-2018 LTM Focus on • Good profitability is a prerequisite for sustainable growth profitability Strong market • Strong market positions in the Nordic markets in the Dental segment (top 2
Slide 29: Lifco – A Safe Haven for Your Business
LIFCO A SAFE HAVEN FOR YOUR BUSINESS