Slide 1: Q1 Report 2020
An entrepreneurial world where people make the difference Bo Annvik, CEO Q1 Report 2020 Patrik Johnson, CFO 27 April 2020
Slide 2: Highlights first quarter 2020
Highlights first quarter 2020 ▪ Strong organic order intake with positive book to bill ▪ Large variations between companies, segments and markets ▪ Record high Q1 EBITA-margin 12.4% ▪ Improved cash flow ▪ Strengthened financial position ▪ Continued high acquisition activity – six companies acquired
Slide 3: Order intake
Order intake QUARTERLY GROWTH Q GROWTH FY GROWTH R3Y CAGR 5,401 MSEK +17% +17% +14% 3
Slide 4: Net sales
Net sales QUARTERLY GROWTH 0% Q GROWTH FY GROWTH R3Y CAGR 4,976 MSEK +14% +14% +12% 4
Slide 5: EBITA
EBITA QUARTERLY GROWTH *) Excluding restructuring costs 2017-Q4 Q GROWTH FY GROWTH R3Y CAGR 616 MSEK +15% +15% +15% 5
Slide 6: Organic sales growth by Business Area
Organic sales growth by Business Area Total growth: +43% +35% +4% +17% +1% 9% +3% +7% ▪ Large variation between companies, segments and markets ▪ Strong comparable numbers ▪ Good demand from companies in the MedTech- and Pharma segments positively effected Business Areas Flow Technology, Benelux and
Slide 7: EBITA margin by Business Area
EBITA margin by Business Area ▪ Improvements in Business Areas Flow Technology, DACH and Industrial Components driven mainly by strong MedTech- and Pharma segments ▪ Good cost control and positive acquisition effect in Business Area Finland ▪ Improvement in valves for power generation in Benelux, bu
Slide 8: Acquisitions & divestments 2020
Acquisitions & divestments 2020 Acquisitions Business Area Annual Sales Q1 STEIN Automation GmbH DACH 110 MSEK VarioDrive BV Benelux 60 MSEK AVA Monitoring AB Measurement & Sensor Technology 45 MSEK Sverre Hellum & Sønn AS Industrial Components 60 MSEK Jouka OY Finland 70 MSEK Nortronic AS Industria
Slide 9: Key data summary
Key data summary MSEK 2020-Q1 2019-Q1 Change Order Intake 5,401 4,410 17% Net Sales 4,976 4,366 14% Gross margin, % 34.0 34.1 EBITA 616 537 15% EBITA-margin, % 12.4 12.3 Net financial items -32 -27 19% Tax -108 -92 17% Earnings per share (before dilution), SEK 3.22 2.90 11% Return On Capital Employe
Slide 10: Cash Flow from operating activities
Cash Flow from operating activities ▪ Cash flow from operating activities grew 151% from 168 MSEK to 421 MSEK ▪ Growth versus last year mainly driven by an improved working capital development and a higher result ▪ Working capital was still on slightly high level, mainly due to earlier inventory bui
Slide 11: Earnings per share
Earnings per share ▪ Q1 earnings per share grew 11% to SEK 3.22 (2.90) ▪ Improvement driven by higher EBITA, but partly offset by increased amortizations of intangibles and financing costs ▪ 3- and 5-year quarterly earnings per share CAGR, were 14% and 19% 11
Slide 12: Net debt
Net debt ▪ The interest-bearing net debt end of Q1 increased to 6,528 (5,089) MSEK ▪ Driven by the high acquisition pace ▪ Net debt/equity ratio increased to 85% (76%) ▪ The long term financing strengthened further in April 12
Slide 13: Limited impact of covid-19 in Q1
Limited impact of covid-19 in Q1 ▪ Minor disruptions in the supply chains ▪ Some production disturbances among manufacturing companies ▪ Strong development with increasing volumes in some of the MedTech companies and some industrial customers building stocks ▪ Country and customer lockdowns in late
Slide 14: Stability based on diverse segments
Stability based on diverse segments Construction/ Engineering Infrastructure Healthcare Energy 19% 17% 13% 12% Net sales per customer segment %, financial year 2019 No/low segment dependency Business cycle “hedging” 14
Slide 15: AGM 2020 and the Board proposes no dividend
AGM 2020 and the Board proposes no dividend The AGM will take place on The Board proposes to the 2 June Annual General Meeting to resolve that no dividend should be paid at 15.00 p.m. CEST in Stockholm 15
Slide 16: Key takeaways
Key takeaways ▪ Strong growth and record margin, but variation in demand ▪ Limited covid-19 effects in Q1 ▪ Large uncertainty ahead ▪ Diversified business group with agile and flexible companies, working closely with their customers ▪ Continued high pace of acquisitions – discussions continue but pr
Slide 17: Thank you! Q&A
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Slide 18: Trusted by entrepreneurs
Trusted by entrepreneurs 18
Slide 19: Financial Calendar & contact details
Financial Calendar & contact details 2 June 2020 Annual General Meeting 17 July 2020 Interim report 1 January – 30 June 2020 20 October 2020 Interim report 1 January – 30 September 2020 Contact: Frida Adrian VP Communications, Sustainability and IR +46 70 930 93 24 frida.adrian@indutrade.com 19 19