Slide 1: Q3 Report 2020
An entrepreneurial world where people make the difference Bo Annvik, President and CEO Q3 Report 2020 Patrik Johnson, CFO 20 October 2020
Slide 2: Highlights third quarter 2020
Highlights third quarter 2020 ▪ Gradually improved market situation, but overall demand still impacted negatively by the covid-19 situation ▪ Organic order intake -2% and net sales unchanged ▪ Significant variations between companies, segments and markets ▪ Record-high EBITA margin, driven by positi
Slide 3: Effects of covid-19 in Q3
Effects of covid-19 in Q3 Demand improved gradually, but majority of the companies were still to some extent negatively impacted by the pandemic Some MedTech companies positively impacted by covid-19 Cost measures implemented by all companies with decreasing volumes Short time work declining, approx
Slide 4: Order intake
Order intake QUARTERLY GROWTH MSEK Q growth 6 000 22 000 4% 5 500 20 000 3% 3% 5 000 2% 18 000 4 500 16 000 1% 4 000 14 000 0% 3 500 12 000 -1% 3 000 -2% -1% 10 000 -2% 2 500 -3% 2 000 8 000 -3% 2015 2016 2017 2018 2019 2020 -4% Q Order intake R12M Order intake Organic Acquisitions Divestments Curre
Slide 5: Net sales
Net sales QUARTERLY GROWTH MSEK Q growth 4% 5 500 20 000 5 000 3% 18 000 3% 4 500 2% 16 000 4 000 1% 14 000 0% 0% 3 500 0% 12 000 3 000 -1% 2 500 10 000 -2% -3% 2 000 8 000 -3% 2015 2016 2017 2018 2019 2020 -4% Q Net sales R12M Net sales Organic Acquisitions Divestments Currency Q GROWTH YTD GROWTH
Slide 6: EBITA
EBITA QUARTERLY GROWTH MSEK Q growth 800 16% 20% 700 14% 600 12% 15% 16% 500 10% 10% 400 8% 300 6% 5% 200 4% 100 2% 3% 0% 0% 0 0% -3% 2015 2016 2017 2018 2019 2020 -5% Q EBITA* Q EBITA margin* Organic Acquisitions Divestments Currency *) Excluding restructuring costs 2017-Q4 Q3-20 MARGIN Q GROWTH YT
Slide 7: Organic sales growth by Business Area
Organic sales growth by Business Area Total growth: +21% -4% -6% +5% -4% +2% -10% -15% 20% ▪ Large variations between companies, segments and markets 15% 16% ▪ All Business Areas negatively effected by the pandemic, especially businesses in General 10% Engineering and Automotive segments Q organic g
Slide 8: EBITA margin by Business Area
EBITA margin by Business Area 20% 18,3% 18,4% 18% ▪ Seven out of eight Business Areas 16,3% 16% increased the EBITA margin 14,5% 14% 13,8% ▪ The MedTech, Pharma and Energy 12,9% 12,5% customer segments main driver for the 12% 11,7% improvement in several Business Areas Q EBITA margin 10% ▪ Strong co
Slide 9: Acquisitions & Divestments 2020
Acquisitions & Divestments 2020 Acquisitions Business Area Annual Sales STEIN Automation GmbH DACH 110 MSEK VarioDrive B.V. Benelux 60 MSEK AVA Monitoring AB Measurement & Sensor Technology 45 MSEK Q1 Sverre Hellum & Sønn AS Industrial Components 60 MSEK Jouka OY Finland 70 MSEK Nortronic AS Industr
Slide 10: Key data summary
Key data summary MSEK 2020-Q3 2019-Q3 Change 2020-YTD 2019-YTD Order Intake 4,486 4,638 -3% 14,491 13,901 4% Net Sales 4,599 4,595 0% 14,189 13,548 5% Gross margin, % 33.6 33.9 33.8 34.1 EBITA 685 588 16% 1,903 1,699 12% EBITA-margin, % 14.9 12.8 13.4 12.5 Net financial items -26 -33 -21% -93 -87 7%
Slide 11: Cash Flow from operating activities
Cash Flow from operating activities MSEK 900 ▪ Cash flow from operating activities 800 grew 43% from 534 MSEK to 761 MSEK 700 ▪ Improvement mainly driven by an 600 improved working capital 500 development and a higher result 400 ▪ Inventories were still on a high level, mainly due to earlier invento
Slide 12: Earnings per share
Earnings per share SEK SEK 4,0 16 ▪ Q3 earnings per share grew 24% to SEK 3.80 (3.05) 3,5 14 ▪ Improvement mainly driven by 3,0 12 higher EBITA 2,5 10 ▪ 3- and 5-year rolling 4Q earnings per 2,0 8 share CAGR, were 12% and 13% 1,5 6 1,0 4 0,5 2 0,0 0 2015 2016 2017 2018 2019 2020 Q EPS R4Q EPS 12
Slide 13: Net debt
Net debt SEK 7 000 120% ▪ The interest-bearing net debt decreased to 5,088 (6,130) MSEK 6 000 100% ▪ Net debt was positively impacted 5 000 80% by a strong cash flow, postponed 4 000 acquisitions and no dividend for 60% 2019 3 000 ▪ Net debt/equity ratio was 40% 2 000 61% (85%) 20% 1 000 0 0% 2015 2
Slide 14: Stability based on diverse segments
Stability based on diverse segments Infrastructure Engineering Healthcare Energy 19% 17% 13% 12% Net sales per customer segment %, financial year 2019 No or low segment dependency Business cycle ”hedging” 14
Slide 15: Focus on Digitalisation & Sustainability
Focus on Digitalisation & Sustainability ▪ Increase customer value by offering solutions that reduce environmental impacts and enhances efficiency ▪ ESG-related KPI’s for the Group as of 2020 ▪ Long-term Sustainability Vision including measurable goals for the Indutrade Group soon to be launched 15
Slide 16: Key takeaways
Key takeaways ▪ Gradual improvements during the quarter, but majority of the companies were still impacted negatively by the pandemic ▪ Large variations between companies, segments and markets ▪ Record high earnings – positively effected by strong segments and good cost management ▪ Continued uncert
Slide 17: Thank you! Q&A
Thank you! Q&A “adie “— \ 2 E fie Pe 3 és $ pecscas Indutrade
Slide 18: Trusted by entrepreneurs
Our brand promise Trusted by entrepreneurs 18
Slide 19: Financial Calendar & contact details
Financial Calendar & contact details Year End Report 1 January – 31 December 2020 Annual General Meeting 2021 Interim Report 1 January – 31 March 2021 Interim Report 1 January – 30 June 2021 Interim Report 1 January – 30 September 2021 Contact: Frida Adrian VP Communications, Sustainability and IR +