Slide 1: Lindab Group Q2 2014
lindab | we simplify construction Lindab Group Q2 2014 Anders Berg, CEO Per Nilsson, CFO
Slide 2: Highlights
lindab | we simplify construction Highlights 2
Slide 3: Lindab Group – Q2 2014 Highlights
lindab | we simplify construction Lindab Group – Q2 2014 Highlights Preparing the ground for the future Sales increased 4% compared to last year when adjusted for currency and structure ─ Products & Solutions: 8% ─ Building Systems: -16% EBIT amounted to SEK 125 m in Q2 compared to SEK 132 m las
Slide 4: Lindab Group – Q2 2014 Highlights
lindab | we simplify construction Lindab Group – Q2 2014 Highlights Preparing the ground for the future Positioning Lindab for future growth ─ Growth initiatives on plan ─ ONE Lindab – organisation in place and generating results ─ Good organic growth within Products & Solutions ─ Focus on process
Slide 5: Financials
lindab | we simplify construction Financials 5
Slide 6: Lindab Group Profit & Loss Q2 2014
lindab | we simplify construction Lindab Group Profit & Loss Q2 2014 SEK m Q2 2014 Q2 2013 Sales growth 7% Sales 1,757 1,643 EBIT* 125 132 Structure 0% EBIT* % 7.1 8.0 Currency effect 3% Fin net -13 -35 Organic 4% Tax -29 -30 Net profit 82 61 *) EBIT excluding one-off items of SEK -1 m in Q2 2014 an
Slide 7: 2012 - 2014: weakened sales; increased efficiency
lindab | we simplify construction 2012 - 2014: weakened sales; increased efficiency Sales 12m EBIT 12m EBIT 12m Sales 12m EBIT (MSEK) +21% (MSEK) 545 538 550 7,000 Sales -3% 500 6,750 444 440 450 415 400 6,500 350 6,250 300 6,000 250 239 0 2010 2011 2012 2013 2014 EBIT L12M SEK 538 m, EBIT margin
Slide 8: Lindab Group Financial net
lindab | we simplify construction Lindab Group Financial net L12M Financial net as % of average Net debt % Actual Actual adj. for release of old agreement costs 9 8 7 6 5 0 Jun Jun Jun 2012 2013 2014 Net financial cost as percent of Net debt continues to improve explained by the new credit agreeme
Slide 9: Lindab Group Cash flow Q2 2014
lindab | we simplify construction Lindab Group Cash flow Q2 2014 SEK m Q2 2014 Q2 2013 Cash flow from - operating activities 157 145 - change in working capital -34 -74 - investing activities -35 -32 - financial net paid -13 -30 - tax paid -22 -15 Free cash flow 53 -6 Adjusted free cash flow* 53 -1
Slide 10: Cash flow Q2 – working capital development
lindab | we simplify construction Lindab Group Cash flow Q2 – working capital development SEK m Q2 2014 Q2 2013 Stock -31 10 Operating receivables -142 -82 Operating liabilities 139 -2 Total change in working capital -34 -74 The improvement in cash flow from change in working capital is explained
Slide 11: Lindab Group Operating cash flow trend
lindab | we simplify construction Lindab Group Operating cash flow trend Quarterly L12M Quarterly L12M (MSEK) (MSEK) 500 800 400 600 300 217 400 200 97 200 67 88 100 26 0 0 -200 -100 -200 -400 -300 -600 2010 2011 2012 2013 2014 L12M cash flow from operating activities amounted to SEK 453 m 11
Slide 12: Segments
lindab | we simplify construction Segments 12
Slide 13: Products & Solutions
lindab | we simplify construction Products & Solutions Profit & Loss Q2 2014 SEK m Q2 2014 Q2 2013 Sales growth 11% Structure 0% Sales 1,545 1,392 EBIT* 120 104 Currency effect 3% EBIT* % 7.8 7.5 Organic 8% *) excluding one-off items of SEK -6 m in Q2 2013 All regions and product areas within the
Slide 14: Building Systems
lindab | we simplify construction Building Systems Profit & Loss Q2 2014 SEK m Q2 2014 Q2 2013 Sales growth -16% Structure 0% Sales 212 251 EBIT* 16 33 Currency effect 0% EBIT* % 7.5 13.1 Organic -16% *) excluding one-off items of SEK -1 m in Q2 2014 and SEK 0 m in Q2 2013 The decline in sales is
Slide 15: Sales development by product areas
lindab | we simplify construction Sales development by product areas Organic growth, L12M Ventilation Products Indoor Climate Solutions Building Systems % Building Product Building Solutions 20 10 0 -10 -20 Jun Jun Jun 2012 2013 2014 All product areas within Products & Solutions show positive long
Slide 16: Back to Basics – Into the Future
lindab | we simplify construction Back to Basics – Into the Future Comprehensive action programme 16
Slide 17: Growth
lindab | we simplify construction Growth Focus on Organic Growth Back to Basics – Into the Future 17
Slide 18: Close to the customer – recap on developments H1
lindab | we simplify construction Close to the customer – recap on developments H1 14 19
Slide 19: Lindab group presentation
lindab | group presentation ÅLESUND Lindab branch and sales office UPPSALA Upgraded Lindab branch and sales office MOSCOW Lindab Knowledge and MALMÖ Distribution Upgraded center PARIS Lindab branch NOVOCLIMA and sales office Lindab branch (Lindab Götene) and sales office BASEL Lindab branch and sale
Slide 20: Growth by strengthening Solutions
lindab | we simplify construction Growth by strengthening Solutions Large Building Solutions orders: Baku, Azerbajdzjan, SEK 28 m Norrköping, Sweden, SEK 20 m Ängelholm, Sweden, SEK 10 m Indoor Climate Solutions: Order for Russia’s largest shopping mall in Moscow, SEK 1.8 m Several significa
Slide 21: More Growth Activities – Products & Solutions
lindab | we simplify construction More Growth Activities – Products & Solutions Large ventilation orders: Tapiola Parking, Finland, SEK 6 m Espoo hospital Finland, SEK 5 m Swiss shopping centre, SEK 4 m Belgian hospital, SEK 3 m Sharpening our competitive edge: New 2 year-distribution agre
Slide 22: Growth Activities – Building Systems
lindab | we simplify construction Growth Activities – Building Systems Large orders Astron Buildings: Continued Marketing efforts: Warehouse, Russia, SEK 12 m Participation in 6 exhibitions in Russia/CIS Data center, Switzerland, SEK 20 m Targeted campaigns Production unit, Algeria, SEK 19
Slide 23: Operations
lindab | we simplify construction Operations Efficiency and controlled cost levels Back to Basics – Into the Future 23
Slide 24: Continuous Improvements within Operations
lindab | we simplify construction Continuous Improvements within Operations Action programme database in place with 100+ activities (Plan – Do – Check – Act) Masterplan for Lean (11 main production units) Good example working with Lean in Karlovarska ICS production: − Value stream mapping − Li
Slide 25: Innovation
lindab | we simplify construction Innovation Release creativity, speed and execution Back to Basics – Into the Future 25
Slide 26: Innovations with customer focus
lindab | we simplify construction Innovations with customer focus Chilled beams with integrated LED lighting, and complete Indoor climate solution to DSV’s new HQ outside Copenhagen order value, SEK 4.5 m. Making things easy for our customers: Roof system Wall selector Vent tools New ”heavy st
Slide 27: Innovation - successful launch of Lindab Airy
lindab | we simplify construction Innovation - successful launch of Lindab Airy Lindab Airy, the innovative, silent air valve was launched at the Nordbygg Trade fair at the beginning of April. 27
Slide 28: Outlook
lindab | we simplify construction Outlook 28
Slide 29: Market Outlook
lindab | we simplify construction Market Outlook GDP Rebased seasonally adjusted volume index Sources: The national statistical offices European economy continue to recover – GDP growth, unemployment rates and consumer confidence improving in most markets However, some industrial indicators have
Slide 30: Market Outlook
lindab | we simplify construction Market Outlook Construction Output & Sentiment in EU European construction output has slowed Source: Eurostat & European Commission down slightly in Q2, which was expected considering the strong growth seen in winter related to the favourable winter weather Euro
Slide 31: Thank You
lindab | we simplify construction Thank You