Slide 1: Presentation Year-End Report 2016
PRESENTATION YEAR-END REPORT 2016 15 FEBRUARY 2017
Slide 2: Contents
CONTENTS 1 Business overview 3 2 Dental 13 3 Demolition & Tools 17 4 Systems Solutions 20 5 Group overview 23 2
Slide 3: Management and Chairman
MANAGEMENT AND CHAIRMAN Fredrik Karlsson Per Waldemarson Therése Hoffman Ingvar Ljungqvist Carl Bennet CEO President Dental CFO Head of Acquisitions Chairman Born: 1962 Born: 1977 Born: 1971 Born: 1960 Born: 1951 Education Education Education Education Other assignments • MSc in Engineering • MSc in
Slide 4: Organised in three business areas
ORGANISED IN THREE BUSINESS AREAS Sales 2016: 8,987 MSEK EBITA 2016: 1,377 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 excavators and
Slide 5: Lifco develops leading niche companies
LIFCO DEVELOPS LEADING NICHE COMPANIES Dental Demolition & Tools Systems Solutions 3 MANAGEMENT LAYERS COMPANIES COUNTRIES EMPLOYEES1) All managers have incentives connected to 134 26 3,627 EBITA and working capital development 5 1) 2016-12-31
Slide 6: Lifco's philosophy for value creation
LIFCO’S PHILOSOPHY FOR VALUE CREATION Long-term perspective • Long-term perspective on corporate development Focus on profitability • Good profitability is a prerequisite for sustainable growth • Our subsidiaries have a high degree of independence. That is the foundation Decentralized for the creati
Slide 7: One target: to increase profits every year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR EBITA (MSEK) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dental Demolition & Tools Systems Solutions Note: IFRS accounting since 2012, prior years Swedish GAAP. 7
Slide 8: ...while maintaining focus on capital employed
…WHILE MAINTAINING FOCUS ON CAPITAL EMPLOYED EBITA margin ROCE excl. goodwill and other intang. assets x.x% ROCE incl. goodwill and other intangible assets 141% 15.0% 15.3% 123% 14.2% 105% 18.8% 19.9% 18.7% 2014 2015 2016 2014 2015 2016 8
Slide 9: Actions to create sustainable profit growth
ACTIONS TO CREATE SUSTAINABLE PROFIT GROWTH 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 bur
Slide 10: Examples of value creation
EXAMPLES OF VALUE CREATION Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth CAGR CAGR 19% 11% CAGR 4% CAGR CAGR 8% 183 CAGR 167 11% 169 32% 118 79 71 31 14 1997 2006 2013 2015 2000 2006 2013 2015 EBIT EBIT 5% 12% 18% 19% 10% 27% 33% 40% margin margin 1) Comp
Slide 11: Geographic footprint
GEOGRAPHIC FOOTPRINT Dental Sweden 18% North Germany Rest of America 20% Europe Demolition & Tools 7% 45% Asia & Australia Rest of 9% World 1% Systems Solutions 11 Note: Geographic split per 2016
Slide 12: Contents
CONTENTS 1 Business overview 3 2 Dental 13 3 Demolition & Tools 17 4 Systems Solutions 20 5 Group overview 23 12
Slide 13: Dental
DENTAL Sales split by product category 2016 EBITA and % of total EBITA* 2016 Prosthetics Other 44% Other 655 MSEK Manufacturing 2% 6% Prosthetics 19% Sales split by geography 2016 Other 4% Sweden 73% Rest of 15% Europe Distribution 43% 38% Germany Manufacturing Distribution * Excluding HQ costs 13
Slide 14: 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 15: Dental financial overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 3,590 3,425 3,266 2,840 2,826 2,439 700 20,0% 18,0% 600 16,0% 1,663 1,674 500 14,0% 1,435 400 12,0% 1,048 10,0% 890 300 8,0% 200 6,0% 4,0% 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2
Slide 16: Contents
CONTENTS 1 Business overview 3 2 Dental 13 3 Demolition & Tools 17 4 Systems Solutions 20 5 Group overview 23 16
Slide 17: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2016 EBITA and % of total EBITA* 2016 Demolition machines 27% 398 MSEK Attachments for 47% Demolition excavators and 53% machines Sales split by geography 2016 cranes Rest of World 2% Sweden APAC 7% 19% Germany 19% 17% Americas Attachments 36% Rest of for e
Slide 18: Demolition & Tools financial overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1,726 1,574 450 35,0% 400 1,289 30,0% 1,176 1,189 350 1,039 25,0% 992 300 862 20,0% 250 743 736 200 15,0% 373 150 10,0% 100 5,0% 50 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010
Slide 19: Contents
CONTENTS 1 Business overview 3 2 Dental 13 3 Demolition & Tools 17 4 Systems Solutions 20 5 Group overview 23 19
Slide 20: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2016 EBITA and % of total EBITA* 2016 Environ- Contract mental manufacturing technology 29% 421 MSEK Environmental technology Contract manufacturing 27% Construc- tion material 23% Construction Sales split by geography 2016 15% material Rest of World
Slide 21: Systems Solutions financial overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 450 14,0% 3,671 400 12,0% 350 2,892 10,0% 300 2,428 2,276 2,247 2,168 250 8,0% 2,055 2,014 1,869 1,747 200 6,0% 1,366 150 4,0% 100 2,0% 50 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009
Slide 22: Contents
CONTENTS 1 Business overview 3 2 Dental 13 3 Demolition & Tools 17 4 Systems Solutions 20 5 Group overview 23 22
Slide 23: Lifco Group financial overview
LIFCO GROUP FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1600 18,0% 1400 16,0% 14,0% 1200 12,0% 8,987 1000 7,901 10,0% 6,802 800 6,184 6,030 8,0% 5,707 4,901 600 4,591 6,0% 4,146 3,660 Pro forma 2014 400 2016 LTM 2,629 4,0% 200 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 24: Strong cash flow generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and depreciation2 before investments 114 105 1,084 102 94 948 81 67 586 80% 79% 1,5% 61% 1,3% 1,3% 1,0% 1,0% 1,0% 2014 2015 2016 2014 2015 2016 Capex (MSEK) Depreciation (MSEK) Operating cash flow Cash flow conversion (%) 1 Capex as %
Slide 25: 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 2006-2017 Producer of attachments for demolition Demolition & Darda Germany MEUR 8 robots Tools Distributor of dental equipment and 2006 Dental Prime servi
Slide 26: Overview of acquisitions 2014-
OVERVIEW OF ACQUISITIONS 2014- 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 Auto-Maskin Diesel control units for marine use Systems So
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: The Group's financial performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK 2016 2015 Change Q416 Q415 Change Net sales 8,987 7,901 13.7%* 2,435 2,121 14.8%* EBITA** 1,377 1,186 16.1% 380 323 17.8% EBITA-margin** 15.3% 15.0% 0.3 15.6% 15.2% 0.4 Profit before tax 1,219 1,082 12.7% 330 288 14.6% Net profit for the period 927 825 12.4% 26
Slide 29: The business areas' financial performance
THE BUSINESS AREA’S FINANCIAL PERFORMANCE DENTAL MSEK 2016 2015 Change Q416 Q415 Change Net sales 3,590 3,435 4.5% 1,014 922 9.9% EBITA* 655 614 6.6% 183 164 11.0% EBITA-margin* 18.2% 17.9% 0.3 18.0% 17.9% 0.1 DEMOLITION & TOOLS MSEK 2016 2015 Change Q416 Q415 Change Net sales 1,726 1,574 9.7% 441 4
Slide 30: Lifco Group balance sheet
LIFCO GROUP BALANCE SHEET Comments Balance sheet 31 Dec 30 Sep 31 Dec MSEK 2016 2016 2015 • Interest bearing net debt increased 1,068 MSEK in 2016 Intangible fixed assets 6,824 6,756 5,010 to 3,018 MSEK due to acquisitions of 1.6 BSEK Tangible fixed assets 464 459 417 Financial assets 109 105 87 • A
Slide 31: Growth or profit? Profit growth!
GROWTH OR PROFIT? PROFIT GROWTH! 31
Slide 32: Disclaimer
DISCLAIMER Important information This material (the “Material”) has been prepared by Lifco AB (publ) (“Lifco”) in good faith and for information purposes only. Unless otherwise stated, Lifco is the source of all data contained in the Material. All data contained herein is provided as of the date of
Slide 33: Lifco
LIFCO