Slide 1: Q2 2017
Q2 2017 Bo Annvik CEO Jan Öhman CFO
Slide 2: Highlights second quarter 2017
Highlights second quarter 2017 • Strong underlying demand • Easter-effect • Positive momentum in most operations, with growth in order intake, sales and earnings • Good development in Finland • Lower volumes for valves for power generation and continued low volumes in the marine segment having an im
Slide 3: Financial summary second quarter 2017
Financial summary second quarter 2017 • Order intake rose 15% to 3,952 MSEK (3,422) • Net sales rose 13% to 3,749 MSEK (3,317) • EBITA rose 13% to 458 MSEK (405) • EBITA margin 12.2% (12.2%) • Profit after tax rose 17% to 303 MSEK (259) corresponding to earnings per share of SEK 2.52 (2.16) • Return
Slide 4: Market conditions
Market conditions • Sweden: ↗ • Finland: ↗ • Norway: oil & gas → other → • Denmark: → • UK: → • Ireland: → • Benelux: ↗ • Switzerland: → • Germany: → • North America: ↗ • Asia: ↗ 4
Slide 5: Order intake
Order intake Order intake Order intake Order intake Order intake moving 12 mos mov 12m MSEK MSEK MSEK 4 000 16 000 600 growth Q2 2017 3 500 14 000 15% 500 3 000 12 000 2 500 10 000 400 2 000 8 000 9% 300 1 500 6 000 200 1 000 4 000 4% 500 2 000 100 2% 0 0 Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1
Slide 6: Net sales
Net sales Net sales Net sales Net sales Net sales moving 12 mos mov 12m MSEK MSEK MSEK 4 000 16 000 500 growth Q2 2017 3 500 14 000 450 13% 400 3 000 12 000 350 2 500 10 000 300 8% 2 000 8 000 250 1 500 6 000 200 150 1 000 4 000 100 3% 2% 500 2 000 50 0 0 0 Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10
Slide 7: EBITA
EBITA EBITA EBITA EBITA EBITA moving 12 mos mov 12m MSEK MSEK MSEK growth Q2 2017 500 2 000 100 450 1 800 90 400 1 600 80 350 1 400 70 300 1 200 60 13% 250 1 000 50 10% 200 800 40 150 600 30 100 400 20 50 200 3% 10 0% 0 0 0 Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12 Q1 -13 Q1 -14 Q1 -15
Slide 8: Margins
Margins Net sales Net sales GP 2 margin Net sales Net sales EBITA-margin MSEK MSEK 4 000 40,0% 4 000 16,0% 3 500 35,0% 3 500 14,0% 3 000 30,0% 3 000 12,0% 2 500 25,0% 2 500 10,0% 2 000 20,0% 2 000 8,0% 1 500 15,0% 1 500 6,0% 1 000 10,0% 1 000 4,0% 500 5,0% 500 2,0% 0 0,0% 0 0,0% Q1 -12 Q1 -13 Q1 -14
Slide 9: Growth bridge 2017
Growth bridge 2017 Q2 Q2 MSEK 2017 Organic Acquisitions Currency Total 2016 Order intake 3,952 4% 9% 2% 15% 3,422 Net sales 3,749 3% 8% 2% 13% 3,317 EBITA 458 0% 10% 3% 13% 405 YTD June YTD June MSEK 2017 Organic Acquisitions Currency Total 2016 Order intake 7,624 6% 10% 2% 18% 6,488 Net sales 7,282
Slide 10: Acquisitions 2017
Acquisitions 2017 Annual sales Possession 1. RS Technics B.V., NL 20 MSEK January 2. Sunflower Medical Ltd, UK 50 MSEK January 3. Ellard Ltd, UK 100 MSEK February 4. Türenfabrik, CH 70 MSEK March 5. Pro-Flex AS, NO 100 MSEK April 6. MaxxVision, DE 80 MSEK April 7. Wennerström Ljuskontroll AB, SE 110
Slide 11: Engineering & Equipment; Flow Technology
Engineering & Equipment • Net sales: 452 MSEK (397) +14%, whereof organic +9% 500 11,3% • EBITA: 51 MSEK (38) +34% 12, 0% 10,8% 400 9,6% 10, 0% • EBITA-margin: 11,3% (9,6) 8,0% 8,0 % 300 7,0% • Continued growth 6,0 % 200 • All-time high levels in some of the companies 4,0 % 100 2,0 % 0 0,0 % Q2 -16
Slide 12: Fluids & Mechanical Solutions; Industrial Components
Fluids & Mechanical Solutions • Net sales: 487 MSEK (404) +21%, whereof organic 7% 500 • EBITA: 64 MSEK (56) +14% 20, 0% 18, 0% 400 • EBITA-margin: 13,1% (13,9) 16, 0% 13,9% 13,1% 13,1% 14, 0% 300 12,5% 12,1% • Positive demand situation in most segments 12, 0% 10, 0% 200 • Stable performance 8,0 % 6
Slide 13: Measurement & Sensor Technology; Special Products
Measurement & Sensor Technology • Net sales: 385 MSEK (297) +30%, whereof organic +16% 400 • EBITA: 74 MSEK (45) +64% 25, 0% 19,2% • EBITA-margin: 19,2% (15,2) 20, 0% 300 17,3% 16,6% 15,2% 15,1% • Strong momentum in most regions and applicable 15, 0% 200 segments 10, 0% 100 • Improved margins and ch
Slide 14: Income statement
Income statement MSEK Q2 2017 Q2 2016 % Mov 12 m 2016 Net sales 3,749 3,317 13% 13,957 12,955 Gross profit 1,268 1,140 11% 4,678 4,348 % 33.8% 34.4% 33.5% 33.6% Operating expenses -867 -790 10% -3,302 -3,126 % -23.1% -23.8% -23.7% -24.1% Other -1 3 32 50 Operating profit 400 353 13% 1,408 1,272 Fina
Slide 15: Balance sheet
Balance sheet MSEK 30 Jun 2017 31 Dec 2016 30 Jun 2016 Intangible fixed assets 4,420 38% 4,267 39% 4,010 38% Tangible and financial fixed assets 1,603 14% 1,568 14% 1,419 14% Inventories 2,348 20% 2,249 20% 2,111 20% Receivables 2,890 25% 2,637 24% 2,649 25% Cash and cash equivalents 351 3% 332 3% 3
Slide 16: Financial key data
Financial key data Mov 12 m Mov 12 m MSEK 31 Dec 2016 31 Dec 2015 Q2 2017 Q2 2016 EBITA margin, % 11.7 12.0 11.5 12.0 Return on operating capital, % 20 22 20 22 Return on equity, % 24 26 24 26 Interest-bearing net debt, SEK million 3,683 3,719 3,628 2,949 Net debt/equity ratio, % 79 96 82 80 Net deb
Slide 17: Earnings per share
Earnings per share SEK Q2: 17% SEK 2.52 (2.16) 3,00 YTD: 26% SEK 4.69 (3.73) 2,50 2,00 1,50 1,00 0,50 0,00 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12 Q1 -13 Q1 -14 Q1 -15 Q1 -16 Q1 -17
Slide 18: Financial targets
Financial targets YTD 2017 Target Growth 16% >10% EBITA-margin 11.9% >10% Return on operating capital 20% >20% Net debt/equity ratio 79% <100% 18
Slide 19: Q2 2017 Q&A
Q2 2017 Q&A