Slide 1: Q1 2018
Q1 2018 Bo Annvik CEO Patrik Johnson CFO
Slide 2: Highlights first quarter 2018
Highlights first quarter 2018 • Continued positive demand, particularly in Sweden, UK and Benelux operations • Easter effect and cold winter impacting invoicing and earnings negatively versus last year • Invoicing for valves for power generation remains low • Restructuring of Sander Meson group acco
Slide 3: Financial summary first quarter 2018
Financial summary first quarter 2018 • Order intake rose 14% to 4,173 MSEK (3,672) • Net sales rose 10% to 3,897 MSEK (3,533) • EBITA rose 11% to 451 MSEK, corresponding to an EBITA- margin of 11.6% (11,5) • Earnings per share rose 11% to 2,42 SEK (2,18) • Return on operating capital 19% (20) 3
Slide 4: Market conditions
Market conditions • Sweden: ↗ • Finland: → • Norway: ↗ • Denmark: → • UK: ↗ • Benelux: ↗ • Switzerland: → • Germany: ↗ • North America: → • Asia: ↗ 4
Slide 5: Order intake
Order intake • Order intake rose 14% to 4,173 MSEK (3,672) whereof organic 3% • Book to bill 1,07 • Negative impact from fewer working days and cold winter • Strong organic development specifically in Benelux and UK Business Areas 5
Slide 6: Net sales
Net sales • Net sales rose 10% to 3,897 MSEK (3,533) whereof organic 0% • Negative impact from fewer working days and cold winter • Invoicing for valves for power generation remains low • Strongest organic development in Measurement & Sensor Technology, UK and Fluids & Mechanical Solutions Business
Slide 7: EBITA
EBITA • EBITA rose 11% to 451 MSEK, corresponding to an EBITA-margin of 11.6% (11.5) • The organic development held back slightly by fewer working days and cold winter • Strongest organic development in Finland and Industrial Components Business Areas 7
Slide 8: Acquisitions / divestments 2018
Acquisitions / divestments 2018 BA Annual sales Acquisitions 1. Zijtveld Gripers B.V Benelux 130 2. RA Howarth Engineering Ltd UK 20 3. Gaveco AB Flow Technology 15 Divestments 1. Tecalimit companies Finland / Fluids & 120 Mechanical Solutions 8
Slide 9: • Net sales: 480 MSEK (458) +5%, whereof organic -12% • Book to bill
• Net sales: 480 MSEK (458) +5%, whereof organic -12% • Book to bill 1,10 • EBITA: 77 MSEK (76) +1% • EBITA-margin: 16,0% (16,6) • Positive business climate • Organic growth excluding valves for Power Generation slightly positive. • Mix changes impacting EBITA margin compared to last year • Net sale
Slide 10: • Net sales: 397 MSEK (401) -1%, whereof organic +1% • Book to bill
• Net sales: 397 MSEK (401) -1%, whereof organic +1% • Book to bill 1,00 • EBITA: 38 MSEK (32) +19% • EBITA-margin: 9,6% (8,0) • Positive business climate with high capacity utilization at many customers • Cold winter impacting companies in Construction segment • Positive mix changes increasing EBIT
Slide 11: • Net sales: 477 MSEK (457) +4%, whereof organic +4% • Book to bill
• Net sales: 477 MSEK (457) +4%, whereof organic +4% • Book to bill 1,05 • EBITA: 65 MSEK (60) 8% • EBITA-margin: 13,6% (13,1) • Continued positive business climate • Cold winter impacting companies in water & waste water segment • Strong development for companies in the Industrial sector • Net sale
Slide 12: • Net sales: 418 MSEK (395) +6%, whereof organic +5% • Book to bill
• Net sales: 418 MSEK (395) +6%, whereof organic +5% • Book to bill 1,05 • EBITA: 65 MSEK (66) -2% • EBITA-margin: 15,6% (16,7) • Continued stable market situation with strong sales development • High capacity utilization • Slightly weaker EBITA margin due to unfavorable mix changes • Net sales: 280
Slide 13: Earnings per share
Earnings per share • Earnings per share rose 11% to SEK 2.42 (2.18) • 12 months rolling Earnings per share rose 5% to SEK 8.79 (8.40) 13
Slide 14: Margins
Margins Gross profit 34.6% of sales (33.9) EBITA margin 11.6% of sales (11.5) 14
Slide 15: Financial key data, rolling 12 months
Financial key data, rolling 12 months MSEK 31 Mar 2018 31 Dec 2017 31 Mar 2017 EBITA margin, % 10.9 10.9 11.7 Return on operating capital, % 19 19 20 Return on equity, % 21 22 24 Interest-bearing net debt, SEK million 4,078 3,829 3,474 Net debt/equity ratio, % 72 74 74 Net debt/EBITDA, times 2.1 2.1
Slide 16: Financial targets
Financial targets 2018-Q1 Target Growth 10% >10% EBITA-margin 11.6% >10% Return on operating capital 19% >20% Net debt/equity ratio 72% <100% 16
Slide 17: Thank you! Q&A
Thank you! Q&A 17
Slide 18: Enclosures
ENCLOSURES 18
Slide 19: Income statement
Income statement MSEK Q1 2018 Q1 2017 % Net sales 3,897 3,533 10% Gross profit 1,348 1,197 13% % 34.6% 33.9% Operating expenses -955 -847 13% % -24.5% -24.0% Other -2 1 Operating profit 391 351 11% Financial net -20 -18 Earnings before tax (EBT) 371 333 11% % 9.5% 9.4% EBITA 451 406 11% % 11.6% 11.5
Slide 20: Balance sheet
Balance sheet MSEK 31 Mar 2018 31 Dec 2017 Intangible fixed assets 5,200 38% 4,947 39% Tangible and financial fixed assets 1,842 14% 1,757 14% Inventories 2,719 20% 2,517 20% Receivables 3,232 24% 2,881 24% Cash and cash equivalents 511 4% 464 3% Total assets 13,504 12,566 Equity 5,654 42% 5,168 41%