Qleanair Ab · OMXSTO:QAIR
Qleanair Ab — Q4 2020 Earnings Presentation
29 slides from Qleanair Ab's earnings presentation, Feb 15, 2021
Slide 1: QleanAir presentation of the Q4 & Year-End Report 2020
QleanAir presentation of the Q4 & Year-End Report 2020 February 15, 2021 1
Slide 2: Today's Agenda & Speakers
TODAY’S AGENDA & SPEAKERS 1. Introduction 5 2. Business Update 9 Christina Lindstedt, CEO 3. Financial Update 34 } CEO since August 31, 2020. } Prior to QleanAir, various global business leadership roles at Electrolux and Sony until 2014. From 2014 Business advisor through own company and several bo
Slide 3: In Brief: A Niche Premium Provider of Clean Indoor Environment
IN BRIEF A NICHE PREMIUM PROVIDER OF CLEAN INDOOR ENVIRONMENT COMPANY MARKET } Global provider of premium indoor clean air solutions } Strong fundamental market drivers from regulatory shift and awareness } Diversified customer base with high retention rate of air pollution as a health concern } Str
Slide 4: Business Update Q4
Business Update Q4 Christina Lindstedt, CEO 4
Slide 5: Improved Margins & Increased Recurring Revenues
KEY FINANCIAL HIGHLIGHTS Q4 IMPROVED MARGINS & INCREASED RECURRING REVENUES } Sales SEKm 106.4 (123.8) down 8.7 % (curr.adj) negatively affected by Corona } Installed units up 14% to 9 551 (8 409) } Recurring revenues SEKm 64.6 (51.8) increase 25% } Order intake SEKm 66.6 (102.5) negatively affected
Slide 6: Facility Solutions: Speedy Innovation to Secure a Healthy Indoor Environment
FACILITY SOLUTIONS SPEEDY INNOVATION TO SECURE A HEALTHY INDOOR ENVIRONMENT Q2 Q3 Q4 } Acting fast - reinventing ourselves } Joint product development } Launch of FS30 HEPA at the end of through existing solutions, launching initiative with healthcare sector Q4 FS70 HEPA and AQ Low HEPA FS 70 HEPA a
Slide 7: Facility Solutions: A Record Year in Bringing New Innovation to Market
FACILITY SOLUTIONS A RECORD YEAR IN BRINGING NEW INNOVATION TO MARKET AirQlean Low 115 HEPA AirQlean Low 115 FS 30 NEW 2020 FS30 HEPA NEW 2020 FS70 HEPA NEW 2020 FS 70 FG NEW 2020 FS 70 FS 90 NEW 2020 NEW 2020 Key • Smoking rooms • Offices • Offices • Healthcare • Healthcare • Food industry • Logist
Slide 8: Facility Solutions: Breaking New Ground
FACILITY SOLUTIONS BREAKING NEW GROUND Q4 2020 ORDER INTAKE } First major order from the school sector in Germany – FS30 & FS70 } Karolinska University Hospital choses FS30 HEPA to protect staff } First order from the healthcare sector in Germany – FS30 HEPA & FS70 HEPA } Third order from Karolinska
Slide 9: Facility Solutions – Customer Cases Healthcare
FACILITY SOLUTIONS – CUSTOMER CASES HEALTHCARE PRODUCT MARKET FIT – HEALTHCARE IN SWEDEN Need: Safe environment for employees and patients Solutions: FS 70 HEPA & FS 30 HEPA Karolinska University Hospital protects staff from the coronavirus During the first outbreak of the corona pandemic, a close c
Slide 10: Facility Solutions – Customer Cases Schools & Offices
FACILITY SOLUTIONS – CUSTOMER CASES SCHOOLS & OFFICES PRODUCT MARKET FIT – SCHOOLS IN GERMANY Need: safe and open schools and offices Solutions: FS30 HEPA & FS70 HEPA German school sector The local government in several German regions are funding investments in air quality in schools, as a complemen
Slide 11: Facility Solutions – Customer Cases Offices
FACILITY SOLUTIONS – CUSTOMER CASES OFFICES PRODUCT MARKET FIT – OFFICE IN JAPAN Need: safe and open offices Solutions: AirQlean Low HEPA Office segment in Japan First significant order intake in November 2020 Tokyo-based gaming company Yostar Limited is committed to creating a healthy environment f
Slide 12: Facility Solutions Q4 Update - Product Launches, Strong Offering
FACILITY SOLUTIONS Q4 UPDATE - PRODUCT LAUNCHES, STRONG OFFERING } Groundbreaking big orders in Q4 for FS will drive growth in 2021 } Growth opportunities within core segments Logistics, Industry and Food – impacted by COVID 19 in 2020 } Developing new markets and customer segments – strong order in
Slide 13: Cabin Solutions: Best Year Ever, Q4 Decline vs a Strong Q4 2019
CABIN SOLUTIONS BEST YEAR EVER, Q4 DECLINE VS A STRONG Q4 2019 } Best year ever in 2020 – driven by the health promotion act implementation in Japan. } Mature market in Europe, growth market in Japan } Innovation supporting Japanese growth KEY MARKETS & TRENDS SALES PERFORMANCE Q4 - SEKm TRACK-RECOR
Slide 14: Room Solutions Q4 Update - Challenging Market, Big Win in December
ROOM SOLUTIONS Q4 UPDATE - CHALLENGING MARKET – FINALLY A BIG WIN IN DECEMBER } Challenging quarter with key customers segments in the US in healthcare, largely impacted by Corona } Focus on closing ongoing customer opportunities, strong pipeline } Big win in Q4 2020 – largest order intake to date a
Slide 15: Breaking New Ground #2 – Cleanroom Ordered to Date
BREAKING NEW GROUND #2 – FINISHING 2020 WITH THE LARGETS CLEANROOM ORDERED TO DATE PRODUCT MARKET FIT – COMPLIANCE REGULATIONS HOSPITAL PHARMACIES US MARKET Need – cleanroom compliant with USP 797 and USP 800, maintaining compounding during the renovation Solutions – USP 797 and USP 800 compliant cl
Slide 16: Our Business Model & Performance 2020
OUR BUSINESS MODEL & PERFORMANCE 2020 INSTALLED BASE, SALES, RECURRING REVENUES & ORDER INTAKE STEP 1 – ORDER INTAKE STEP 2 – SALES MIX STEP 3 INCREASED RECURRING REVENUES } Order intake rental contracts – longer } The number of installed units } Acquisition SFS Finance in Dec 2019 contracts and dir
Slide 17: Installed Base Drives Sales & Visibility into 2021
INSTALLED BASE DRIVES SALES & VISIBILITY INTO 2021 } Installed units* gives visibility into 2021 } Recurring revenues from units own balance } Sales rental contracts to Finance companies } Typically 3-year rental contracts } High extension and renewal rate for rental contracts >75% } Service & Maint
Slide 18: In Summary: Delivery of Cleaned Air Up 13%
IN SUMMARY CONTINUED INCREASED AWARENESS AIR CLEANING DELIVERY OF CLEANED AIR UP 13% } Increased delivery of cleaned air to the volume cleaned air increased with 13% and corresponded to 9,77 (8,65) Ericsson Globe Arenas per hour or 4,26 (3,77) billion m3 cleaned air per month at the end of 2020. } T
Slide 19: Financials Q4 & Year-End
Financials Q4 & Year-End Henrik Resmark, CFO 19
Slide 20: Stable and Diversified Revenue Base
STABLE AND DIVERSIFIED REVENUE BASE > 2,500 CUSTOMERS PORTFOLIO SUMMARY RECURRING REVENUES Recurring Revenues, SEKm Share of total Sales, % 300 + 2,500 Global customers + 9,551 Installed units1 + 20 Countries customer base 250 191 259 200 165 150 122 133 110 52% 100 39% 40% 41% 41% 42% 61% Recurring
Slide 21: Order Intake and Sales Affected by Covid-19
ORDER INTAKE AND SALES AFFECTED Covid-19 FOURTH QUARTER 2020 } New sales hit by Corona Order i ntake SEKm Sal es SEKm } Sales Q4 vs Q3 2020 +2%, vs Q4 2019 -9% 160 145 137 } Order intake Q4 vs Q3 2020 +22%, vs Q4 2019 -35% 140 124 124 119 120 105 105 109 106 } Improved EBIT-margin 19.3% (15.6) 103 1
Slide 22: Stable Margins and Increased Recurring Revenue
STABLE MARGINS AND INCREASED RECURRING REVENUE P&L COMMENTS SALES & ADJ. EBIT-MARGIN QUARTER BY QUARTER Q4 Sal es SEKm Adj. EBIT-margin } EBTIDA SEKm 28.2 (adj.24.9) } Improved EBIT-margin 19.3 % (15.6) 200 } EBIT SEKm 20.5 (adj.19.3) 145 150 124 137 119 } Cash-flow SEKm 19.7 (10.2) 105 103 105 109
Slide 23: Improved Cash-Flow and Reduced Net Debt
IMPROVED CASH-FLOW AND REDUCED NET DEBT CASH-FLOW IN SUMMARY BALANCE SHEET IN SUMMARY } Strong operative cash flow in the fourth quarter and 2020 } Equity ratio improved to 27% (16%) } Net debt reduced to 199 MSEK (237) } Dividend proposal SEK 1.30 per share, total SEKm 19.3 23
Slide 24: Financial Targets & Dividend vs Performance 2020
FINANCIAL TARGETS & DIVIDEND VS PERFORMANCE 2020 MEDIUM-TERM FINANCIAL TARGETS AND DIVIDEND POLICY 1 2 3 Organic sales growth Profitability Dividend policy ~10% 15-20% 30-50% Net sales CAGR EBIT margin Payout ratio } Average annual organic sales } EBIT margin of 15-20 percent } 30-50 percent of net
Slide 25: In Summary: QleanAir as an Investment
IN SUMMARY QLEANAIR AS AN INVESTMENT Unique service offering based on holistic approach to clean air as a service with full- service rental contracts Proprietary air cleaning technology and back-office solutions providing substantial barriers to entry Long contracts with high degree of extensions ac
Slide 26: Q&A session
Q&A session Christina Lindstedt, CEO Henrik Resmark, CFO 26 Qleanair.com | QleanAir Holding AB | Torggatan 13 | 171 54 Solna
Slide 27: Appendix
APPENDIX 27
Slide 28: Appendix | Key ratios and Quarterly Development
Appendix | Key ratios and Quarterly Development 28
Slide 29: Appendix | Largest shareholders
Appendix |Largest shareholders Euroclear data & Company information 29