Slide 1: Year-End Report 2020
An entrepreneurial world where people make the difference Bo Annvik, President and CEO Year-End Report 2020 Patrik Johnson, CFO 2 February 2021
Slide 2: Summary 2020
Summary 2020 ▪ Strong year despite challenging conditions – resilient and successful business model ▪ Significant variations between companies, segments and countries with strongest development in MedTech/Pharma ▪ Good cost management by our agile companies ▪ Strong financial performance with all ti
Slide 3: Highlights fourth quarter 2020
Highlights fourth quarter 2020 ▪ Improved demand situation, supported by a very strong development in the MedTech/Pharma segment ▪ Organic order intake +7% and net sales +3% ▪ Continued variations between companies, segments and countries ▪ Record high EBITA margin, driven by increased demand and go
Slide 4: Order intake
Order intake QUARTERLY GROWTH MSEK Q growth 6 000 22 000 8% 5 500 20 000 6% 7% 5 000 18 000 4% 5% 4 500 16 000 4 000 2% 14 000 3 500 0% 12 000 3 000 -2% -1% 2 500 10 000 -4% -4% 2 000 8 000 2015 2016 2017 2018 2019 2020 -6% Q Order intake R12M Order intake Organic Acquisitions Divestments Currency Q
Slide 5: Net sales
Net sales QUARTERLY GROWTH MSEK Q growth 5 500 20 000 6% 5% 5 000 18 000 4% 5% 4 500 3% 16 000 2% 3% 4 000 14 000 1% 3 500 0% 12 000 -1% 3 000 -1% 10 000 -2% 2 500 -3% 2 000 8 000 -4% -4% 2015 2016 2017 2018 2019 2020 -5% Q Net sales R12M Net sales Organic Acquisitions Divestments Currency Q GROWTH
Slide 6: EBITA
EBITA QUARTERLY GROWTH MSEK Q growth 800 16% 12% 700 14% 10% 11% 600 12% 8% 500 10% 6% 6% 400 8% 4% 300 6% 2% 0% 200 4% 0% 100 2% -2% 0 0% -4% -4% 2015 2016 2017 2018 2019 2020 -6% Q EBITA* Q EBITA margin* Organic Acquisitions Divestments Currency *) Excluding restructuring costs 2017-Q4 Q4-20 MARGI
Slide 7: Organic sales growth Q4 by Business Area
Organic sales growth Q4 by Business Area Total growth: +1% -3% -4% +6% +1% +23% -9% -10% 20% ▪ Continued large variations between companies, segments and countries 15% 16% ▪ MedTech/Pharma sectors driving growth in Business Area Industrial Components and 10% Flow Technology Q organic growth ▪ Positi
Slide 8: EBITA margin by Business Area
EBITA margin by Business Area 18% 17,1% 16,3% ▪ Six out of eight Business Areas 16% increased the EBITA margin 14,4% 14,6% 14,6% ▪ MedTech/Pharma customer segment 14% 13,0% main driver of the improvement in combination with good cost 12% 10,8% management ▪ Record high margin in Business Area Q EBITA
Slide 9: Acquisitions & Divestments 2020
Acquisitions & Divestments 2020 Acquisitions Business Area Annual Sales STEIN Automation GmbH DACH 110 MSEK VarioDrive B.V. Benelux 60 MSEK AVA Monitoring AB Measurement & Sensor Technology 45 MSEK Q1 Sverre Hellum & Sønn AS Industrial Components 60 MSEK Jouka OY Finland 70 MSEK Nortronic AS Industr
Slide 10: Acquisitions 2021
Acquisitions 2021 Acquisitions Business Area Annual Sales Pistesarjat Oy Finland 90 MSEK Q1 Tecno Plast Industrietechnik GmbH Benelux 240 MSEK Fire Proof BV Benelux 70 MSEK 10
Slide 11: Key data summary
Key data summary MSEK 2020-Q4 2019-Q4 Change 2020-YTD 2019-YTD Order Intake 5,104 4,752 7% 19,595 18,653 5% Net Sales 5,028 4,863 3% 19,217 18,411 4% Gross margin, % 34.7 34.2 34.0 34.1 EBITA 712 631 13% 2,615 2,330 12% EBITA-margin, % 14.2 13.0 13.6 12.7 Net financial items -33 -37 -11% -126 -124 2
Slide 12: Cash Flow from operating activities
Cash Flow from operating activities MSEK 900 ▪ Cash flow from operating activities 800 in Q4 grew 8% from 732 MSEK to 792 MSEK 700 ▪ The cash flow supported slightly by 600 lower working capital but the 500 improvement versus last year mainly driven by the higher result 400 ▪ Inventories still on a
Slide 13: Earnings per share
Earnings per share SEK SEK 1,4 5 ▪ Q4 EPS grew 13% to SEK 1.24 (1.10) 1,2 4,5 ▪ Improvement mainly driven by 4 higher EBITA 1,0 3,5 ▪ 3- and 5-year R4Q* EPS growth, 3 0,8 were 14% and 13% 2,5 0,6 2 0,4 1,5 1 0,2 0,5 0,0 0 2015 2016 2017 2018 2019 2020 * Adjusted with the Meson restructuring in 2017-
Slide 14: Net debt
Net debt SEK 7 000 120% ▪ The interest-bearing net debt decreased to 4,878 (6,130) MSEK 6 000 100% ▪ The decline during the quarter 5 000 80% primarily related to the strong cash 4 000 flow 60% ▪ The full year decline also attributed 3 000 to postponed acquisitions and no 40% 2 000 dividend for 2019
Slide 15: Financial targets and outcome 2020
Financial targets and outcome 2020 Return Proposed Growth EBITA margin on capital Net debt/Equity dividend employed payout ratio 4% 13.6% 19% 56% 39% TARGET ≥ 10% TARGET ≥ 12% TARGET ≥ 20% TARGET ≤ 100% 30%-50% OF NET PROFIT Targets measured over a business cycle 15
Slide 16: Effects of covid-19 in Q4
Effects of covid-19 in Q4 Demand improved gradually, A few MedTech/Pharma Cost measures continued but many companies still companies with large in all companies with noted some negative effects covid-19 related orders decreasing volumes by the pandemic Short-time work declined Governmental support P
Slide 17: Indutrade's sustainability strategy towards 2030
Indutrade’s sustainability strategy towards 2030 ─ Long term objectives People Environment Profitable Growth 100% CO2 100% Contributing to Engaged People Neutral sustainable development 17
Slide 18: Key takeaways
Key takeaways ▪ Strong 2020 with record high profitability ▪ Improved demand situation, primarily related to customers within MedTech/Pharma ▪ Continued large variations between companies, segments and countries ▪ Record high earnings – positively effected by strong segments and good cost management
Slide 19: Thank you! Q&A
Thank you! Q&A 19
Slide 20: Financial Calendar & contact details
Financial Calendar & contact details Annual General Meeting 2021 Interim Report 1 January – 31 March 2021 Interim Report 1 January – 30 June 2021 Interim Report 1 January – 30 September 2021 Contact: Frida Adrian VP Communications, Sustainability and IR +46 70 930 93 24 ir@indutrade.com 20
Slide 21: IT indutrade
IT indutrade