Indutrade Ab · OMXSTO:INDT
Indutrade Ab — Q4 2022 Earnings Presentation
24 slides from Indutrade Ab's earnings presentation, Feb 2, 2023
Slide 1: Q4 Report 2022
An entrepreneurial world where people make the difference Bo Annvik, President and CEO Q4 Report 2022 Patrik Johnson, CFO 2 February 2023
Slide 2: Summary 2022
Summary 2022 ▪ The Indutrade model once again demonstrated its strength ▪ Broad, strong demand with total growth in order intake of 18% and Net Sales 24% for net sales ▪ Record high EBITA margin of 15.2% ‒ New EBITA margin target ≥14% per year over a business cycle 27.0BSEK ▪ Lower operational cash
Slide 3: Highlights fourth quarter 2022
Highlights fourth quarter 2022 ▪ Continued stable demand level, significant sales growth and good profit levels! Net Sales ▪ Majority of companies had positive order development – increased variations between various companies, segments and countries 7.2BSEK ▪ EBITA increased 29% to SEK 1.1 billion
Slide 4: Order intake
Order intake QUARTERLY GROWTH MSEK Q growth 8 000 30 000 7% 6% 7 000 25 000 6% 6% 5% 6 000 4% 5 000 20 000 3% 4 000 2% 15 000 3 000 1% 0% 0% 2 000 10 000 0% 2017 2018 2019 2020 2021 2022 Organic Acquisitions Divestments Currency Q Order intake R12M Order intake Q GROWTH YTD GROWTH R3Y CAGR 7,052 MSE
Slide 5: Net sales
Net sales QUARTERLY GROWTH MSEK Q growth 8 000 30 000 14% 12% 13% 7 000 25 000 10% 6 000 8% 5 000 20 000 6% 7% 4 000 6% 4% 15 000 3 000 2% 0% 2 000 10 000 0% 2017 2018 2019 2020 2021 2022 Organic Acquisitions Divestments Currency Q Net sales R12M Net sales Q GROWTH YTD GROWTH R3Y CAGR 7,228 MSEK +26
Slide 6: Net sales per customer segment 2022
Net sales per customer segment 2022 Share of total sales, % ▪ Good development in almost all customer segments Infrastructure & construction Medical technology & Pharmaceutical ▪ Strongest growth in Medical technology Engineering and Pharmaceutical segment Energy Process Industry ▪ Infrastructure &
Slide 7: Sales Growth – major countries
Sales Growth – major countries ++ ++ Sweden net sales: 6,178 MSEK Germany net sales: 1,711 MSEK +++ ++ UK & Ireland net sales: 3,231 MSEK Norway net sales: 1,638 MSEK ++ - Benelux net sales: 3,013 MSEK Switzerland & Austria net sales: 1,404 MSEK ++ Asia ++ Finland net sales: 2,734 MSEK Asia net sale
Slide 8: Organic Sales Growth trend
Organic Sales Growth trend 20% ▪ Organic growth nine consecutive quarters 15% ▪ Stable high growth rate 10% ▪ Combination of volume and price 5% ▪ Organic growth in all Business Areas and 0% most companies -5% ▪ Strong order back-log -10% 2017 2018 2019 2020 2021 2022 Organic growth Organic growth 5
Slide 9: EBITA
EBITA QUARTERLY GROWTH MSEK Q growth 1 200 18% 16% 16% 14% 15% 1 000 14% 12% 800 12% 10% 10% 600 8% 8% 6% 7% 400 6% 7% 4% 4% 200 2% 2% 0% 0 0% 0% 2017 2018 2019 2020 2021 2022 Organic Acquisitions Divestments Currency Q EBITA* Q EBITA margin* *) Excluding restructuring costs 2017-Q4 Q4-22 MARGIN Q G
Slide 10: EBITA
EBITA QUARTERLY GROWTH MSEK Q growth 1 200 18% 16% NON-RECURRING ITEMS 16% 14% 15% Non-recurring items Q4-22 1 000 +25 (-21) MSEK 14% 12% EBITA margin excluding 800 12% 10% non-recurring items 10% 14.6% (15.0%) 600 8% 8% 400 6% 6% 7% 7% 4% 4% 200 2% 2% 0% 0 0% 0% 2017 2018 2019 2020 2021 2022 Organi
Slide 11: Organic sales growth Q4 by Business Area
Organic sales growth Q4 by Business Area Total growth: +37% +17% +15% +24% +21% +27% +32% +33% ▪ Organic sales growth in all Business Areas 25% ▪ Strongest growth in Business Areas Benelux, Flow Technology and Industrial 20% 21% Components 18% ▪ Positive development in most companies Q organic growt
Slide 12: EBITA margin by Business Area
EBITA margin by Business Area 20% ▪ Majority of the companies increased 18% 17,3% their EBITA-margin versus last year 15,9% 16,2% 16% 14,5% 15,0% 14,9% 15,0% ▪ Margin improvements in Business Areas 14% Flow Technology, Finland and UK ▪ Strong organic growth main driver in Q EBITA margin 12% 10,6% Bu
Slide 13: Acquisitions
Acquisitions Acquisitions 2022 Business Area Annual Sales Acquisitions 2023 Autoroll UK Ltd UK 67 MSEK Q1 Sax Lift A/S NTi Audio AG MST 90 MSEK Business area: FMS Annual sales: 130 MSEK Stabalux GmbH FMS 40 MSEK Hobe GmbH PMH International AB IC 140 MSEK Business area: DACH Q2 acti-Chem A/S Flow 50
Slide 14: Successful acquisition track record
Successful acquisition track record No. of acquired companies Financial effects acquisitions 18 300 25,0% 16 250 14 20,0% 12 200 EBITA (MSEK) EBITA margin 15,0% 10 150 8 10,0% 6 100 4 5,0% 50 2 0 0 0,0% No. of acquired companies No. of acquired companies (3 yr avg) Acquired EBITA Acquired EBITA marg
Slide 15: Key data summary
Key data summary MSEK 2022-Q4 2021-Q4 Change 2022 2021 Change Order Intake 7,052 6,293 12% 27,701 23,474 18% Net Sales 7,228 5,726 26% 27,016 21,715 24% Gross margin, % 34.9 35.9 34.7 35.0 EBITA 1,081 836 29% 4,098 3,202 28% EBITA-margin, % 15.0 14.6 15.2 14.7 Net financial items -66 -22 200% -180 -
Slide 16: Cash Flow from operating activities
Cash Flow from operating activities MSEK ▪ Operating cash flow during the 1 000 quarter was 850 (901) MSEK 900 800 ▪ The decline versus last year was 700 mainly related to working capital 600 changes, driven by supply chain 500 disturbances 400 ▪ Inventory increasing trend leveling off 300 200 ▪ The
Slide 17: Earnings per share
Earnings per share SEK SEK ▪ EPS during the quarter grew 29% to 2,0 8 SEK 1.86 (1.44) per share 1,8 7 1,6 ▪ Improvements mainly driven by 6 1,4 higher EBITA 5 1,2 ▪ 3- and 5-year rolling 1,0 4 4Q earnings per share 0,8 3 CAGR*, were 22% and 19% 0,6 2 0,4 0,2 1 0,0 0 2017 2018 2019 2020 2021 2022 Q E
Slide 18: Net debt
Net debt SEK ▪ The interest-bearing net debt 10 000 120% increased to 8,580 (5,489) MSEK 9 000 8 000 100% ▪ The increase compared to last year is 7 000 mainly due to a continued high 80% 6 000 acquisition pace and a slightly 5 000 60% dampened operational cash flow 4 000 40% ▪ Net debt/equity ratio
Slide 19: Ambitious financial targets
Ambitious financial targets Growth Return On Capital New EBITA-margin target Employed ≥10% ≥20% ≥14% • 13.7% (5-year average, 2018-2022) Net debt/Equity Dividend payout • Balance between profitability ambitions and ratio ability to invest in growth initiatives <100% 30%-50% • Target to be achieved t
Slide 20: Significant progress within sustainability
Significant progress within sustainability Science Based Targets initative Climate and carbon emission reductions are highly prioritised for Indutrade. By joining the SBTi, Indutrade has now formally committed to developing targets and reducing emission in line with climate science. 20
Slide 21: Key takeaways
Key takeaways ▪ The Indutrade model, based on decentralisation and balanced diversification, shows its strength ▪ Stable demand situation in general – lower demand in some customer segments and increased New variations EBITA margin target ▪ Continued sales increase and good profit levels ▪ Strong or
Slide 22: Thank you!
Thank you! Indutrade
Slide 23: Financial calendar & contact details
Financial calendar & contact details Annual Report 2022 Annual General Meeting Interim Report 1 January – 31 March 2023 Interim Report 1 January – 30 June 2023 Interim Report 1 January – 30 September 2023 Contact: ir@indutrade.com +46 8 703 03 00
Slide 24: Trusted by entrepreneurs
MT indutrade Trusted by entrepreneurs