Slide 1: Interim Report January−September 2019
Presentation Interim Report January−September 2019 23 October 2019
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q319 Q318 Change 2019 LTM 2018 Change Net sales 3,211 2,787 15.2%1 13,558 11,956 13.4%2 EBITA*** 596 520 14.6% 2,542 2,168 17.3% EBITA margin3 18.6% 18.7% -0.1 18.7% 18.1% 0.6 Profit before tax 473 436 8.5% 2,046 1,858 10.1% Net profit for the period 355 327 8.
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q319 Q318 Change 2019 LTM 2018 Change Net sales 1,004 975 3.0% 4,400 4,185 5.1% EBITA* 203 192 5.7% 887 802 10.6% EBITA margin* 20.2% 19.7% 0.5 20.2% 19.2% 1.0 DEMOLITION & TOOLS MSEK Q319 Q318 Change 2019 LTM 2018 Change Net sales 901 724 24.4%
Slide 4: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH MSEK 2018 2017 2016 2015 EBITA 2,168 1,732 1,377 1,186 EBITA from acquisitions 197 198 152 118 % growth 11% 14% 13% 12% Of which from previous year’s 124 68 16 27 acquisitions Of which from current year’s 73 130 136 91 acquisitions Organic EBITA growth 239 157 39 102
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 6000 4 MSEK 2019 2018 2018 MSEK Times Intangible fixed assets 10,969 9,133 9,322 Tangible fixed assets 1,358 611 597 3,5 Financial assets 196 153 150 5000 Inventory 2,193 1,710 1,759 3 Accounts receivable
Slide 6: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR EBITA before acquisition costs and non-recurring items (MSEK) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM EBITA margin 14.2% 15.0% 15.3% 17.3% 18.1% 18.7% Dental Demolition & Tools System
Slide 7: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 165% 21.0% 20.9% 150% 19.3% 122% 12.5% 50% 2017 2018 2019 LTM 2017 2018 2019 LTM Target ranges ROCE has been negatively impacted by the implementation of IFRS 16 as of 1 January 2
Slide 8: Lifco 20 Years
LIFCO 20 YEARS Top Ten Swedish Large Caps 8
Slide 9: Four Persons at the Head Office
FOUR PERSONS AT THE HEAD OFFICE Per Waldemarson Therése Hoffman Martin Linder Ingvar Ljungqvist Carl Bennet CEO CFO Head of Business Area Head of Acquisitions Chairman Born: 1977 Born: 1971 Systems Solutions Born: 1960 Born: 1951 Education Education Born: 1972 Education Other assignments • MSc in Bu
Slide 10: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES Sales 2019 LTM: 13,558 MSEK EBITA 2019 LTM: 2,542 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 continuous • No big shake
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: Sustainability an Integrated Part of Our Business Strategy
SUSTAINABILITY AN INTEGRATED PART OF OUR BUSINESS STRATEGY Code of Conduct Invest in niche All subsidiaries companies UN Global Compact must apply with a sustainable signatory business model All employees must be informed Any deviation to the Code Sustainability part of Conduct is Whistleblower of o
Slide 14: 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 32% 167 183 169 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 15: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway Sweden 12% 16% North Germany Rest of America Europe 18% Demolition & Tools 10% 33% Asia & Australia Rest of 10% World 1% Systems Solutions Note: Geographic split financial year 2018 15
Slide 16: Dental
DENTAL Sales split by product category 2018 % EBITA** 2019 LTM EBITA* and % of total Manufacturing Software Dental 34% Software 3% 887 MSEK Manufacturing 11% Distribution 67% Prosthetics 19% Sales split by geography 2018 APAC 2% North America 6% Sweden 13% Norway 12% Prosthetics Distribution Rest of
Slide 17: Strong Foothold in Key Markets
STRONG FOOTHOLD IN 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 ✓ ✓ ✓ ✓ ✓ ✓ FI ✓ Distribution of equipment ✓ ✓ ✓ ✓ Nordics
Slide 18: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1000 20,0% 4,400 900 18,0% 4,185 800 16,0% 3,817 3,590 3,435 700 14,0% 3,266 2,840 2,826 600 12,0% 2,439 500 10,0% 400 8,0% 1,663 1,674 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
Slide 19: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2018 EBITA* and % of total EBITA** 2019 LTM % Demolition machines 882 Demolition MSEK machines 40% Demolition & Tools 33% Sales split by geography 2018 Rest of world 2% Sweden 8% Norway 1% APAC 18% Attachments for Germany excavators and 18% cranes 60% Attac
Slide 20: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1000 30,0% 4000 3,512 900 3500 25,0% 800 3000 2,820 700 20,0% 2500 600 2,261 2000 500 15,0% 1,726 1,574 400 1500 1,289 1,176 1,189 10,0% 1,039 992 300 1000 862 743 736 200 5,0% 500 373 100 0 0 0,0% 2006 2007 2008 2009 2
Slide 21: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2018 EBITA* and % of total EBITA** 2019 LTM % Environ- Systems Contract mental Solutions manufacturing technology 33% Contract 873 MSEK Environmental manufacturing 19% technology 30% Construc- tion material Sales split by geography 2018 Rest of world
Slide 22: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 5,646 1000 18,0% 900 16,0% 4,951 800 14,0% 3,952 700 3,671 12,0% 600 10,0% 2,892 500 2,428 8,0% 2,276 2,247 2,055 2,168 400 2,014 1,869 6,0% 1,747 300 1,366 4,0% 200 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 201
Slide 23: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments 1800 90% 1800 2,0% 1600 1600 85% 1,8% 1400 1400 80% 1200 1200 1,6% 75% 1000 1000 70% 1,4% 800 800 65% 600 600 1,2% 400 60% 400 1,0% 200 55% 200 0 50% 0 0,8% 2014 2015 2016 2017 2018 2014 2015 2016 2
Slide 24: 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 2006−2019 Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and servi
Slide 25: 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 26: 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 27: Overview of Acquisitions 2018–2019
OVERVIEW OF ACQUISITIONS 2018–2019 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
Slide 28: 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 29: Highlights
HIGHLIGHTS Strong track • 13.4% annual sales growth rate 2006−2019 LTM record • 18.5% annual EBITA growth rate 2006−2019 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 30: Lifco
LIFCO A SAFE HAVEN FOR YOUR BUSINESS