Lifco Ab Class B · OMXSTO:LIFCO_B
Lifco Ab Class B — Q4 2018 Earnings Presentation
29 slides from Lifco Ab Class B's earnings presentation, Feb 8, 2019
Slide 1: Presentation Year-End Report 2018
Presentation Year-End Report 2018 8 February 2019
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q418 Q417 Change 2018 2017 Change Net sales 3,454 2,789 23.8%* 11,956 10,030 19.2%** EBITA*** 670 510 31.4% 2,168 1,732 25.2% EBITA margin*** 19.4% 18.3% 1.1 18.1% 17.3% 0.8 Profit before tax 598 442 35.3% 1,858 1,473 26.1% Net profit for the period 453 329 37.
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q418 Q417 Change 2018 2017 Change Net sales 1,144 1,008 13.5% 4,185 3,817 9.6% EBITA* 219 184 19.0% 802 701 14.4% EBITA margin* 19.1% 18.3% 0.8 19.2% 18.4% 0.8 DEMOLITION & TOOLS MSEK Q418 Q417 Change 2018 2017 Change Net sales 788 633 24.5% 2,82
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 31 Dec 31 Dec 30 Sep MSEK 2018 2017 2018 MSEK Times Intangible fixed assets 9,133 8,288 9,322 4000 4 Tangible fixed assets 611 550 597 Financial assets 153 130 150 3500 3,5 Inventory 1,710 1,391 1,759 Accounts receivable 1,550
Slide 6: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR EBITA before acquisition costs (MSEK) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITA margin 14.2% 15.0% 15.3% 17.3% 18.1% Dental Demolition & Tools Systems Solutions Note: IFRS accounting since
Slide 7: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 165% 21.0% 150% 19.3% 139% 18.6% 12.5% 50% 2016 2017 2018 2016 2017 2018 Target ranges 7
Slide 8: Lifco 20 Years
LIFCO 20 YEARS Top Ten Swedish Large Caps 8
Slide 9: Three Persons at the Head Office
THREE PERSONS AT THE HEAD OFFICE Per Waldemarson Ingvar Ljungqvist Therése Hoffman Carl Bennet CEO Head of Acquisitions CFO Chairman Born: 1977 Born: 1960 Born: 1971 Born: 1951 Education Education Education Other assignments • MSc in Business • MSc in Aeronautical • International Marketing, • Chairm
Slide 10: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES Sales 2018: 11,956 MSEK EBITA 2018: 2,168 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 excavato
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 • No big shake-outs. We l
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: 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% 190 212 167 32% 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 14: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway 12% Sweden 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 14
Slide 15: Dental
DENTAL Sales split by product category 2018 % EBITA* and % of total EBITA** 2018 Manufacturing Software Dental 35% Software 3% 802 MSEK Manufacturing 11% Distribution 67% Prosthetics 19% Sales split by geography 2018 APAC 2% North America 6% Sweden 13% Norway 12% Rest of Prosthetics Distribution Eur
Slide 16: 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 ✓ ✓ ✓ ✓ ✓ ✓ FI ✓ Distribution of equipment ✓ ✓ ✓ ✓ Nordics
Slide 17: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 900 20,0% 4,185 3,817 800 18,0% 3,590 3,435 16,0% 3,266 700 14,0% 2,840 2,826 600 12,0% 2,439 500 10,0% 400 1,663 1,674 8,0% 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 2015 2016 2
Slide 18: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2018 EBITA* and % of total EBITA** 2018 % Demolition machines 724 Demolition MSEK machines 40% Demolition & Tools 32% Sales split by geography 2018 Rest of world 2% Sweden 8% Norway 1% APAC 18% Attachments for Germany excavators and 18% cranes 60% Attachmen
Slide 19: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 3000 800 30,0% 2,820 700 2500 25,0% 2,261 600 2000 20,0% 1,726 500 1,574 1500 400 15,0% 1,289 1,176 1,189 1,039 992 300 1000 862 10,0% 743 736 200 500 373 5,0% 100 0 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 20: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2018 EBITA* and % of total EBITA** 2018 % Environ- Systems Contract mental Solutions manufacturing technology 33% Contract 756 MSEK Environmental manufacturing 19% technology 30% Construc- tion material Sales split by geography 2018 Rest of world 1%
Slide 21: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 800 18,0% 700 16,0% 4,951 14,0% 600 3,952 3,671 12,0% 500 10,0% 2,892 400 2,428 8,0% 2,276 2,247 2,168 2,055 2,014 300 1,869 6,0% 1,747 1,366 200 4,0% 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 22: 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 23: 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 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: 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: Highlights
HIGHLIGHTS Strong track • 13.5% annual sales growth rate 2006−2018 record • 18.6% annual EBITA growth rate 2006−2018 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 29: Lifco
LIFCO A SAFE HAVEN FOR YOUR BUSINESS