Slide 1: Interim Report January-September 2021
Presentation Interim Report January⎼September 2021 22 October 2021
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q321 Q320 Change 2021 LTM 2020 Change Net sales 4,158 3,311 25.6%1 16,279 13,782 18.1%2 EBITA3 862 699 23.3% 3,478 2,702 28.7% EBITA margin3 20.7% 21.1% -0.4 21.4% 19.6% 1.8 Profit before tax 692 576 20.1% 2,880 2,207 30.4% Net profit for the period 518 435 19.
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q321 Q320 Change 2021 LTM 2020 Change Net sales 1,166 1,065 9.5% 5,035 4,290 17.4% EBITA* 239 247 -3.2% 1,105 898 23.1% EBITA margin* 20.5% 23.2% -2.7 21.9% 20.9% 1.0 DEMOLITION & TOOLS MSEK Q321 Q320 Change 2021 LTM 2020 Change Net sales 1,146 7
Slide 4: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH MSEK 2020 2019 2018 2017 2016 2015 EBITA 2,702 2,523 2,168 1,732 1,377 1,186 EBITA from acquisitions 222 221 197 198 152 118 Growth % 9% 10% 11% 14% 13% 12% Of which from previous 115 43 124 68 16 27 year’s acquisitions Of which from current 107 178 73 130 136 91 yea
Slide 5: Net Debt Development and Balance Sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 30 Sep 31 Dec 30 Sep 8000 4 MSEK 2021 2020 2020 MSEK Times Intangible fixed assets 14,513 11,610 11,933 Tangible fixed assets 1,878 1,504 1,514 7000 3,5 Financial assets 245 199 183 Inventory 2,700 1,864 1,920 6000 3 Accounts
Slide 6: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR .9 % 12 M 1 LT .3 % 2 18 – 20 M 0 06 1 LT R2 20 2 EBITA before acquisition costs and CAG 06 – s 0 Sa le R2 non-recurring items (MSEK) G A CA IT EB 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 7: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 22.7% 161% 19.5% 19.6% 139% 108% 12.5% 50% 2019 2020 2021 LTM 2019 2020 2021 LTM Target ranges ROCE has been negatively impacted by the implementation of IFRS 16 as of 1 January 2
Slide 8: Lifco 22 Years
LIFCO 22 YEARS Top Ten Swedish Large Caps 8
Slide 9: Management and Chairman
MANAGEMENT AND CHAIRMAN Per Waldemarson Therése Hoffman Martin Linder Ingvar Ljungqvist Carl Bennet CEO CFO Head of Business Area Head of Acquisitions Chairman Started at Lifco 2006 Started at Lifco 2007 Systems Solutions Started at Lifco 2015 Born: 1951 Born: 1977 Born: 1971 Started at Lifco 2009 B
Slide 10: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES LIFCO Sales 2021 LTM: 16,279 MSEK EBITA 2021 LTM: 3,478 MSEK Dental Demolition & Tools Systems Solutions Leading distributors of dental products in Leading producers of demolition robots and Wide range of leading systems solutions Nordics and Germany attachment
Slide 11: A Safe Haven for Your Business
A SAFE HAVEN FOR YOUR BUSINESS Lifco is a long-term • Lifco basically never sells a company owner • All decisions taken at local management level The business stays • No forced synergies or integration independent and local • Lifco has never moved a business Incremental and continuous • No big shake
Slide 12: Decentralized Profit-Oriented Culture
DECENTRALIZED PROFIT-ORIENTED CULTURE Right person in the right position • Motivated managers who deliver results Continuous pricing optimization • Focus on customers with potential for sustainable profit growth Optimized management structure • Focus on value adding personnel and minimized bureaucra
Slide 13: Sustainability an Integrated Part of Our Business Strategy
SUSTAINABILITY AN INTEGRATED PART OF OUR BUSINESS STRATEGY Code of Conduct Invest in niche All subsidiaries companies UN Global Compact must apply with a sustainable signatory business model All employees must be informed Any deviation to the Code Sustainability part of Conduct is Whistleblower of o
Slide 14: Examples of Organic Development
EXAMPLES OF ORGANIC DEVELOPMENT Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth CAGR CAGR 9% 8% 7% 19% -3% 4% 11% 8% 225 212 198 32% 190 183 169 167 11% 118 79 71 31 14 1997 2006 2013 2015 2017 2019 2000 2006 2013 2015 2017 2019 EBIT EBIT 5% 12% 18% 19% 20%
Slide 15: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway 11% Sweden 15% North Germany Rest of America Europe 16% Demolition & Tools 9% 38% Asia & Australia Rest of 10% World 1% Systems Solutions Note: Geographic split financial year 2020. 15
Slide 16: Dental
DENTAL Sales split by product category 2020 EBITA* and % of total EBITA** 2021 LTM Manufacturing Software Dental 31% Software 3% 1,105 MSEK Manufacturing 15% Distribution 67% Prosthetics 15% Sales split by geography 2020 APAC 1% Rest of world 1% North America 5% Sweden 12% Norway 12% Prosthetics Dis
Slide 17: Strong Foothold in Key Markets
STRONG FOOTHOLD IN KEY MARKETS Lifco’s dental market presence and example of brands used in different markets Lifco’s market positions within dental consumables Sweden Norway Denmark Finland Germany Rest of Europe Distribution of consumables ü ü ü ü ü ü Distribution of FI equipment ü ü ü ü ü Nordics
Slide 18: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1200 25% % % M 12.3 M 17.2 21 LT 5035 1000 1 LT 06-20 6- 202 20% R 20 200 CAG 4185 4393 4290 CAG R 3817 800 3590 3435 15% 3266 28402826 600 2439 10% 400 16631674 1435 1048 5% 890 200 0 0% 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2
Slide 19: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2020 EBITA* and % of total EBITA** 2021 LTM Demolition machines 1,120 Demolition MSEK machines 35% Demolition & Tools 31% Sales split by geography 2020 Rest of world 2% Sweden 8% Norway 1% APAC 20% Attachments for Germany excavators and 16% cranes 65% Attac
Slide 20: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin % % 1 6 .7 1 7 .6 TM 21 L 7% LTM 6-20 9. 20 2 1 R2 0 0 M1 00 6- 5 .6 % 1200 CAG 1 LT 35% R2 M1 02 CAG 21 L T 01 0-2 -2 0 2 010 4228 GR R 2 1000 CA 30% CAG 3610 25% 3234 800 2820 20% 2261 600 15% 1725 1574 400 1289 10% 1
Slide 21: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2020 EBITA* and % of total EBITA** 2021 LTM Environ- Systems Contract mental Solutions manufacturing technology 38% Contract 1,374 Environmental MSEK manufacturing 19% technology 27% Construc- tion material Forest 12% Sales split by geography 2020 Re
Slide 22: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 1 .5 % 0 2 1 LTM 1 1600 20% 200 6- 2 8. 6% CAGR 8% M1 1 LT M 11. 1 LT 2. 0% 202 18% 0-202 M2 06- 1400 R 201 T CAG 20 2 1L 7016 CA GR 1 0-20 16% 1200 20 6258 GR 5842 CA 14% 1000 12% 4951 800 10% 3952 3455 8% 600 2892 2428
Slide 23: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments1 3000 2000 2,0% 100% 1800 2500 1,8% 1600 90% 1400 2000 1,6% 1200 80% 1500 1000 1,4% 800 70% 1,2% 1000 600 60% 400 500 1,0% 200 0 50% 0 0,8% 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 201
Slide 24: Overview of Acquisitions 2006-2012
OVERVIEW OF ACQUISITIONS 2006–2012 Sales at Total sales Year Company Description Type Country acquisition MSEK Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and services Dental Finland MEUR 3 132 Elektronikprod
Slide 25: Overview of Acquisitions 2014-2016
OVERVIEW OF ACQUISITIONS 2014–2016 Sales at Total sales Year Company Description Type Country acquisition MSEK 2014 MDH Producer of dental prosthetics Dental Germany MEUR 44 400 Auger Torque Producer of earth drills Demolition & Tools UK MGBP 10 J.H. Orsing Dental products Dental Sweden MSEK 20 Prev
Slide 26: Overview of Acquisitions 2017
OVERVIEW OF ACQUISITIONS 2017 Sales at Total sales Year Company Description Type Country acquisition MSEK Haglöf Sweden Professional forest inventory instruments Systems Solution Sweden MSEK 60 Hultdins Manufactures tools for forest machines Demolition & Tools Sweden MSEK 152 Silvent Energy optimiza
Slide 27: Overview of Acquisitions 2018-2019
OVERVIEW OF ACQUISITIONS 2018–2019 Sales at Total sales Year Company Description Type Country acquisition MSEK Computer konkret Software for dentists Dental Germany MEUR 3.8 Spocs Assembling and testing of electronic products Systems Solutions Sweden MSEK 61 Norway MNOK 95 Dental Direkt - 3D Dental
Slide 28: Overview of Acquisitions 2020
OVERVIEW OF ACQUISITIONS 2020 Sales at Total sales Year Company Description Type Country acquisition MSEK Rönvig Dental Dental Dental Denmark MDKK 30 Manufacturing Workplace Safety Dental Dental Denmark MDKK 79 Dental Grupa Distributor of dental products Dental Croatia MSEK 94 Cramaro Tarpaulin Tarp
Slide 29: Overview of Acquisitions 2021
OVERVIEW OF ACQUISITIONS 2021 Sales at Total sales Year Company Description Type Country acquisition MSEK Kaniedenta1 Manufacturing and sales of dental consumables Dental Germany MEUR 29 Rissmann Dental 1 Prosthetics Dental Germany MEUR 4.1 Manufacturer of cartooning and sleeving T.Freemantle System
Slide 30: Number of Acquisitions 2006-2021
NUMBER OF ACQUISITIONS 2006–2021 Segment split Country Countrysplit split2006-2021 2006-2021 Country split 2017-2021 CZ EE HK HR NZ HR NZ FR 11 1 FR HK 1 1 FI 2 11 CZ 1 SE 3 11 11 US US 4 3 DK 6 27 SE DK 3 28 39 40 IT 8 UK 6 9 DE 9 15 UK 13 18 DE 7 12 8 NO NO IT 30
Slide 31: Financial Targets
FINANCIAL TARGETS • Organic growth in EBITA in excess of GDP growth in relevant geographies Growth in EBITA • Acquisitions to add additional growth EBITA/Capital • More than 50% employed1 Net debt/EBITDA • Normally in the range 2-3x Dividend policy • Distribute 30-50% of net profit as % of net profi
Slide 32: Highlights
HIGHLIGHTS Strong track • 12.9% annual sales growth rate 2006-2021 LTM record • 18.3% annual EBITA growth rate 2006-2021 LTM Focus on • Good profitability is a prerequisite for sustainable growth profitability Strong market • Strong market positions in the Nordic markets in the Dental segment (top 2
Slide 33: Lifco - A Safe Haven for Your Business
LIFCO A SAFE HAVEN FOR YOUR BUSINESS