Slide 1: Year-end Report 2022
Presentation Year-end Report 2022 3 February 2023
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q422 Q421 Change 2022 2021 Change Net sales 6,002 4,952 21.2%1 21,552 17,480 23.3%2 EBITA3 1,322 1,013 30.5% 4,662 3,709 25.7% EBITA margin3 22.0% 20.5% 1.5 21.6% 21.2% 0.4 Profit before tax 1,082 844 28.2% 3,842 3,070 25.1% Net profit for the period 758 760 -0
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q422 Q421 Change 2022 2021 Change Net sales 1,433 1,301 10.1% 5,295 5,123 3.4% EBITA 271 241 12.4% 1,017 1,080 -5.8% EBITA margin 18.9% 18.5% 0.4 19.2% 21.1% -1.9 DEMOLITION & TOOLS MSEK Q422 Q421 Change 2022 2021 Change Net sales 1,767 1,329 33.
Slide 4: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH CAGR 2015- MSEK 2022 2022 2021 2020 2019 2018 2017 2016 2015 EBITA 4,662 3,709 2,702 2,523 2,168 1,732 1,377 1,186 EBITA from 401 488 222 221 197 198 152 118 acquisitions EBITA growth from 12% 11% 18% 9% 10% 11% 14% 13% 12% acquisitions Organic EBITA growth 8% 11% 21
Slide 5: Development 2015-2022
DEVELOPMENT 2015-2022 CAGR 2015- MSEK 2022 2022 2021 2020 2019 2018 2017 2016 2015 EBITA 22% 4,662 3,709 2,702 2,523 2,168 1,732 1,377 1,186 EPS1 19% 6.13 5.26 3.67 3.31 3.06 2.39 2.00 1.78 Interest-bearing 16% 5,590 4,603 3,242 4,040 3,170 3,536 3,018 1,950 net debt Interest-bearing N/A 1.1 1.1 1.1
Slide 6: Net Debt Development and Balance Sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 31 Dec 30 Seo 31 Dec MSEK MSEK Times 2022 2022 2021 Intangible fixed assets 18,286 17,753 15,497 9000 4 Tangible fixed assets 2,364 2,235 2,052 Financial assets 365 376 320 8000 3,5 Inventory 3,682 3,890 2,821 Accounts receiva
Slide 7: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR 4 .1 % 21 02 6– 2 9 .2 % 2 00 21 GR 2 02 A 6– EBITA before acquisition costs and sC 00 Sa le G R2 non-recurring items (MSEK) A CA I T EB 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 8: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 162% 22.5% 22.6% 139% 135% 19.6% 12.5% 50% 2020 2021 2022 2020 2021 2022 Target ranges 8
Slide 9: Management and Chairman
MANAGEMENT AND CHAIRMAN Per Waldemarson Therése Hoffman Martin Linder Carl Bennet CEO CFO Head of Business Area Chairman Started at Lifco 2006 Started at Lifco 2007 Systems Solutions Born: 1951 Born: 1977 Born: 1971 Started at Lifco 2009 Other assignments Education Born: 1972 Education • Chairman an
Slide 10: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES LIFCO Sales 2022: 21,552 MSEK EBITA 2022: 4,662 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 ex
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 Clear prioritized areas Invest in niche with KPIs companies UN Global Compact with a sustainable signatory Regular follow-up business model of subsidiaries Prioritized sustainability areas Motivated employees High standard Reduced climate an
Slide 14: Examples of Organic Development
EXAMPLES OF ORGANIC DEVELOPMENT Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth 10% CAGR CAGR 9% 6% 7% 8% -3% 4% 221 19% 212 11% 198 8% 272 183 169 11% 32% 225 190 167 79 118 71 31 14 1997 2006 2013 2015 2017 2019 2021 2000 2006 2013 2015 2017 2019 2021 EBI
Slide 15: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway 9% Sweden 13% UK North America 7% Germany Rest of Europe 16% Demolition & Tools 11% 29% Italy 6% Asia & Australia Rest of 8% World 1% Systems Solutions Geographic split financial year 2022. 15
Slide 16: Dental
DENTAL Sales split by product category 2022 EBITA and % of total EBITA1 2022 Dental 21% Software 3% 1,017 MSEK Manufacturing 23% Sales split by geography 2022 APAC 2% Distribution North America 6% Sweden 11% 60% Prosthetics Norway 12% 14% Rest of Europe 37% Germany 32% 1Excluding HQ costs. 16
Slide 17: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1200 25% % 2 11.8 2 15.5% 2 6-2 0 5295 6- 202 R 200 5123 1000 200 CAG CAG R 20% 43934290 4185 800 3817 3590 15% 3435 3266 600 28402826 2439 10% 400 16631674 1435 1048 5% 890 200 0 0% 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Slide 18: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2022 EBITA and % of total EBITA1 2022 Other niche machinery 9% 1,607 Demolition MSEK machines 24% Demolition & Tools 33% Sales split by geography 2022 Rest of world 2% Sweden 6% APAC 14% Germany 14% North Italy 11% Attachments America for excavators 18% and
Slide 19: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin % % 1 8 .2 1 9 .3 6-2022 -2 022 R 200 1. 5% 2 006 1800 CAG 02 22 30% R .0 % -2 CAG 2 18 010 -202 6285 2 10 1600 GR R 20 CA CAG 25% 1400 4701 1200 20% 3610 1000 3234 15% 800 2820 2261 600 10% 1725 1574 400 117611891289 5
Slide 20: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2022 EBITA and % of total EBITA1 2022 Systems Contract Solutions Environmental manufacturing 46% Technology 20% 29% 2,184 MSEK Forest 6% Sales split by geography 2022 Rest of world 1% APAC 8% Sweden 18% North America 9% Construction material 16% Norw
Slide 21: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 3 .2 % 2500 25% 2022 1 2006- 8% CAGR .1 % 22 0. 20 22 14 -20 2 4 .7 % 2010- 0 6 2 20 022 9972 CAG R 2000 20% GR -2 CA 2 010 GR CA 7656 1500 15% 6258 5842 4951 1000 10% 3952 3455 2892 2428 22762168 2247 2055 2014 500 5% 1
Slide 22: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments1 3500 3500 2,0% 100% 3000 3000 1,8% 2500 90% 2500 1,6% 2000 2000 80% 1,4% 1500 1500 70% 1,2% 1000 1000 60% 1,0% 500 500 0 50% 0 0,8% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017
Slide 23: Overview of Acquisitions 2006–2012
OVERVIEW OF ACQUISITIONS 2006–2012 Sales at Total sales Year Company Description Type Country acquisition MSEK Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and services Dental Finland MEUR 3 132 Elektronikprod
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 2018–2019
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 27: Overview of Acquisitions 2020
OVERVIEW OF ACQUISITIONS 2020 Sales at Total sales Year Company Description Type Country acquisition MSEK Rönvig Dental Dental Dental Denmark MDKK 30 Manufacturing Workplace Safety Dental Dental Denmark MDKK 79 Dental Grupa Distributor of dental products Dental Croatia MSEK 94 Cramaro Tarpaulin Tarp
Slide 28: Overview of Acquisitions 2021
OVERVIEW OF ACQUISITIONS 2021 Sales at Total sales Year Company Description Type Country acquisition MSEK Kaniedenta1 Manufacturing and sales of dental consumables Dental Germany MEUR 29 Rissmann Dental 1 Prosthetics Dental Germany MEUR 4.1 Manufacturer of cartooning and sleeving T.Freemantle System
Slide 29: Overview of Acquisitions 2022
OVERVIEW OF ACQUISITIONS 2022 Sales at Total sales Year Company Description Type Country acquisition MSEK Develops and manufactures staff attack and Specialists Alarm Services nurse call systems Dental UK MGBP 3.9 BCC Solutions Supplier of fiber equipment Systems Solutions FI MEUR 11 Trevi Benne Man
Slide 30: Number of Acquisitions 2006–2022
NUMBER OF ACQUISITIONS 2006–2022 Segment split Country Countrysplit split2006-2021 2006-2022 Country split 2017-2022 CZ EE HK HR NZ CZ FI FR HK HR NZ FR NL 11111 111 FI 2 1 DE 4 2 NL 11 US 2 13 4 US 3 DK 7 28 SE DK 4 28 46 46 IT 10 12 SE UK 9 18 UK 12 13 22 DE 9 14 NO 10 NO IT 30
Slide 31: 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 32: Highlights
HIGHLIGHTS Strong track • 14.1% annual sales growth rate 2006-2022 record • 19.2% annual EBITA growth rate 2006-2022 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 2-3) and
Slide 33: Lifco
LIFCO A SAFE HAVEN FOR YOUR BUSINESS