Addtech Ab Class B · OMXSTO:ADDT_B
Addtech Ab Class B — Q3 2020/2021 Earnings Presentation
22 slides from Addtech Ab Class B's earnings presentation, Feb 4, 2021
Slide 1: Interim Report 1 April – 31 December 2020
INTERIM REPORT 1 APRIL – 31 DECEMBER 2020 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS ▪ Clear recovery in demand and Net sales stable margin thanks to efforts to SEK 2,881 m, +1% adjust to lower business volumes ▪ Favourable market development adjusted for the cyber attack and the sharp decline in sales of scrubber related products ▪ Substantial variations be
Slide 3: Net sales increased to SEK 2,881 m (2,846), +1%
QUARTER 3: NET SALES NET SALES INCREASED TO SEK 2,881 M (2,846), +1% ▪ On the whole, the outcome for the third quarter was in line with our expectations ▪ Of the organic decline of about 4 percent, a significant part was related to decreased sales of solutions for scrubber installations. There was s
Slide 4: EBITA increased to SEK 304 m (236), +28%
QUARTER 3: EBITA DEVELOPMENT EBITA INCREASED TO SEK 304 M (236), +28% ▪ The EBITA margin amounted to 10.6 percent, due to short term cost reductions, long term adjustments of operating costs as well as favourable contributions from acquisitions ▪ At the end of the quarter, approximately 240, corresp
Slide 5: Automation
3 months ending 9 months ending 12 months ending 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Mar 20 AUTOMATION Net Sales, SEK m 625 588 6% 1,770 1,731 2% 2,464 2,425 EBITA, SEK m 58 51 13% 168 168 0% 267 267 Quarter 3: EBITA-margin, % 9.2 8.7 – 9.5 9.7 – 10.8 11.0 ▪ Net sales increased
Slide 6: Components
3 months ending 9 months ending 12 months ending 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Mar 20 COMPONENTS Net Sales, SEK m 498 489 2% 1,481 1,504 -2% 2,059 2,082 EBITA, SEK m 37 41 -9% 137 153 -10% 202 218 Quarter 3: EBITA-margin, % 7.5 8.3 – 9.3 10.2 – 9.8 10.5 ▪ Net sales increas
Slide 7: Energy
3 months ending 9 months ending 12 months ending 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Mar 20 ENERGY Net Sales, SEK m 657 596 10% 1,973 1,808 9% 2,577 2,412 EBITA, SEK m 87 62 42% 247 204 21% 325 282 Quarter 3: EBITA-margin, % 13.3 10.3 – 12.5 11.3 – 12.6 11.7 ▪ Net sales increase
Slide 8: Industrial Process
3 months ending 9 months ending 12 months ending 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Mar 20 INDUSTRIAL PROCESS Net Sales, SEK m 707 800 -12% 2,056 2,472 -17% 2,788 3,204 EBITA, SEK m 86 95 -10% 236 332 -29% 349 445 Quarter 3: EBITA-margin, % 12.1 11.9 – 11.5 13.4 – 12.5 13.9 ▪ N
Slide 9: Power Solutions
3 months ending 9 months ending 12 months ending 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Dec 19 Δ 31 Dec 20 31 Mar 20 POWER SOLUTIONS Net Sales, SEK m 398 377 6% 1,144 1,196 -4% 1,578 1,630 EBITA, SEK m 50 36 38% 146 163 -10% 214 231 Quarter 3: EBITA-margin, % 12.6 9.7 – 12.8 13.6 – 13.6 14.2 ▪ Net sales
Slide 10: Net sales amounted to SEK 8,409 m (8,697)
PERIOD APRIL 1 – DECEMBER 31 NET SALES AMOUNTED TO SEK 8,409 M (8,697) ▪ Net sales decreased by 3% to SEK 8,409 m (8,697) ▪ For the Group in total EBITA was affected positively by approximately the equivalent of 0.5% of sales due to governmental support measures ▪ EBITA decreased by 4% and amounted
Slide 11: Thirteen acquisitions so far this year
THIRTEEN ACQUISITIONS SO FAR THIS YEAR Number of Acquisitions Business Area Access Net Sales, SEK m* employees* Elkome Group Oy Automation April, 2020 85 38 Peter Andersson AB Energy April, 2020 30 9 Valutec Group AB Industrial Process April, 2020 350 45 Fluidcontrol Oy Components September, 2020 41
Slide 12: Financial Position
FINANCIAL POSITION 12
Slide 13: Income Statement, Condensed
INCOME STATEMENT, CONDENSED 3 months ending 9 months ending 12 months ending (SEKm) 31 Dec 20 31 Dec 19 31 Dec 20 31 Dec 19 31 Dec 20 31 Mar 20 Net Sales 2,881 2,846 8,409 8,697 11,447 11,735 Cost of sales & op. expenses -2,633 -2,668 -7,668 -7,928 -10,404 -10,664 Other operating items -10 10 -18 40
Slide 14: Balance Sheet, Condensed
BALANCE SHEET, CONDENSED (SEKm) 31 Dec 20 31 Dec 19 31 Mar 20 Goodwill 2,604 1,896 1,997 Other intangible non-current assets 1,728 1,183 1,243 Property, plant and equipment 965 824 936 Non-current financial assets 61 60 64 Inventories 1,716 1,623 1,642 Current receivables 1,835 2,126 2,261 Cash and
Slide 15: Cash Flow Statement, Condensed
CASH FLOW STATEMENT, CONDENSED 3 months ending 9 months ending 12 months ending (SEKm) 31 Dec 20 31 Dec 19 31 Dec 20 31 Dec 19 31 Dec 20 31 Mar 20 Profit after financial items 226 179 686 772 1,019 1,105 Adj. for non cash items 133 93 400 278 476 354 Income tax paid -100 -71 -239 -187 -325 -273 Chan
Slide 16: Cash Flow R12
CASH FLOW R12 Cash flow from operating and investing activities 16
Slide 17: Key Financial Indicators
KEY FINANCIAL INDICATORS (SEKm) 31 Dec 20 31 Mar 20 31 Dec 19 Total equity (SEKm) 3,084 3,076 2,710 Equity per share, SEK 10.60 11.25 9.90 Equity ratio, % 33 36 34 Return on working capital (P/WC), % 54 56 54 Return on equity, % 27 32 31 Return on capital employed, % 17 21 20 Financial net debt (SEK
Slide 18: Approach to Net Debt / Equity Ratio
APPROACH TO NET DEBT / EQUITY RATIO ▪ Besides P/WC, no specific targets for gearing and debt ▪ Debt rate bound to move up and down periodically with business like ours ▪ Our target to acquire on our own cashflow is working well 18
Slide 19: Key Take Aways
KEY TAKE AWAYS ▪ Clear recovery in demand and continued cost control create resilicence in earnings performance − Recovery in most market segments − Long term cost reductions gradually replace short term savings ▪ Successful work with aquisitions − Thirteen acquistions so far this year − Strong pipe
Slide 20: Network for Growth
Entrepreneurship 2.0 Digitalisation Leadership development Sustainability Addtech is a (technology Equal Treasury NETWORK FOR GROWTH and niche market) network opportunities Addtech where people and Academy companies grow New talent Financial support Co-creation Increased decentralisation Internation
Slide 21: Efficient Organisational Structure
EFFICIENT ORGANISATIONAL STRUCTURE AUTOMATION COMPONENTS ENERGY INDUSTRIAL PROCESS POWER SOLUTIONS MOTION & DRIVES DENMARK ENERGY PROCESS BATTERY PRODUCTS TECHNOLOGY SYSTEMS INDUSTRIAL IT FINLAND ENERGY INDUSTRIAL CUSTOMISED & SENSORS SUPPLY SOLUTIONS SOLUTIONS NORWAY FIBER-OPTIC POWER COMMUNICATION
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