Slide 1: Interim Report January-September 2018
Presentation Bo Annvik, CEO Interim Report January-September 2018 Patrik Johnson, CFO 8 November 2018 1
Slide 2: Highlights Q3 2018
Highlights Q3 2018 ▪ Continued stable demand on a high level with improved organic order intake ▪ EBITA margin improvement both organically and through acquisitions ▪ Improved cash flow during the quarter ▪ Good performance in most business areas, particularly in UK, Measurement & Sensor Technology
Slide 3: Order intake
Order intake MSEK Q growth 5 000 17 000 7% 16 000 6% 6% 6% 4 500 6% 15 000 5% 4% 4 000 14 000 3% 13 000 3 500 2% 12 000 1% 3 000 11 000 0% 10 000 2 500 -1% 9 000 -2% -2% 2 000 8 000 -3% 2014 2015 2016 2017 2018 Organic Acquisitions Divestments Currency Q Order intake R12M Order intake Q GROWTH YTD G
Slide 4: Net sales
Net sales MSEK Q growth 7% 5 000 17 000 6% 16 000 4 500 6% 6% 5% 15 000 4 000 14 000 4% 13 000 3% 3% 3 500 12 000 2% 3 000 11 000 1% 10 000 0% 2 500 9 000 -1% -2% 2 000 8 000 -2% 2014 2015 2016 2017 2018 -3% Q Net sales R12M Net sales Organic Acquisitions Divestments Currency Q GROWTH YTD GROWTH R3Y
Slide 5: EBITA
EBITA MSEK 600 14,0% 500 12,0% 10,0% 400 8,0% 300 6,0% 200 4,0% 100 2,0% 0 0,0% 2014 2015 2016 2017 2018 Q EBITA Q EBITA margin Q GROWTH YTD GROWTH R3Y CAGR 525 MSEK +17% +16% +8% 5
Slide 6: Organic sales growth by Business Area
Organic sales growth by Business Area ▪ All Business Areas grew organically in the quarter ▪ Broad strong demand in UK – both domestic and export oriented companies developed positively ▪ Automotive after sales and industry segment companies performed strong in Fluids & Mechanical Solutions ▪ Genera
Slide 7: EBITA margin by Business Area
EBITA margin by Business Area ▪ EBITA margin improved in seven out of eight Business Areas ▪ Benelux and DACH improvements primarily driven by acquisitions ▪ Finland benefited from restructuring and divestments ▪ Improvements in restructured Sander Meson supported Business Area Flow ▪ Good price man
Slide 8: Acquisitions/divestments 2018
Acquisitions/divestments 2018 Acquisitions BA Annual Sales Zijtveld Gripers B.V. Benelux 130 MSEK RA Howarth Engineering Ltd UK 20 MSEK Gaveco AB Flow Technology 15 MSEK Precision UK Ltd UK 130 MSEK Digitrade GmbH DACH 15 MSEK Norsecraft Tec AS Industrial Components 55 MSEK TXRX Measurement & Sensor
Slide 9: Key data summary
Key data summary MSEK 2018-Q3 2017-Q3 Change 2018YTD 2017YTD Change Order Intake Net Sales Gross margin, % EBITA EBITA-margin, % Net financial items Tax Earnings per share (before dilution), SEK Return On Operating Capital, % Cash Flow from operating activities Net debt / EBITDA, times 4106 4115 34,
Slide 10: Cash Flow from operating activities
Cash Flow from operating activities ▪ Cash Flow from operating activities grew with 23% to 472 MSEK, mainly driven by increased profits ▪ Accumulated Cash Flow from operating activities still behind last year due to higher working capital ▪ Working capital increase relates to higher volumes and inve
Slide 11: Earnings per share
Earnings per share ▪ Earnings per share rose 16% to SEK 2.83 (2.43) ▪ 12 months rolling earnings per share rose 5% to SEK 9.68 (9.20) ▪ Excluding restructuring 12 months rolling earnings per share rose 14% to SEK 10.53 (9.20) ▪ 5 year earnings per share CAGR, excluding restructuring is 16% 11
Slide 12: Net debt
Net debt ▪ The interest bearing net debt end of Q3 increased with 15% to 4,324 MSEK (3,775) ▪ Net debt / equity ratio 73% (77%) – slightly down versus last year and last quarter 12
Slide 13: Changed financial target
Changed financial target ▪ Growth ≥ 10% ▪ EBITA margin ≥ 12% (prev. 10%) ▪ Return on operating capital ≥ 20% ▪ Net debt/Equity ≤ 100% ▪ Dividend 30-60% of net profit Measured over a business cycle 13
Slide 14: Welcome to our Capital Markets Day
Welcome to our Capital Markets Day ▪ 4 December 2018 ▪ Starting at 09.00 am to approximately 02.00 pm (registration from 08.30 am) ▪ Location: Indutrades head office Raseborgsgatan 9 in Kista ▪ Registration latest 25 November: CMD2018@indutrade.com 14
Slide 15: Key takeaways and outlook
Key takeaways and outlook ▪ Solid quarter with continued stable, high demand and improved profitability ▪ Uncertain macro ahead but no clear sign of a changed demand situation ▪ Diversified structure with agile and flexible companies, working closely with their customers ▪ Continued execution of suc
Slide 16: Thank you! Q&A
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