Slide 1: Year End Report 1 April 2020 – 31 March 2021
YEAR END REPORT 1 APRIL 2020– 31 MARCH 2021 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: Clear Vision for Future Growth
CLEAR VISION FOR FUTURE GROWTH Leading technical solutions for a sustainable tomorrow ▪ Increased share of value-add ▪ Catalyst for sustainable growth ▪ Adding passion for people and entrepreneurship 2
Slide 3: Full Year 2020/2021 Highlights
FULL YEAR 2020/2021 HIGHLIGHTS Net sales ▪ Favourable business spread gave stable outcome SEK 11,336 m, -3% ▪ Adjusted for scrubber-related volumes, both sales and earnings increased with improved margin ▪ Measures implemented to adapt cost level to current sales volumes ▪ Strong cash flow from stab
Slide 4: Quarter Highlights
QUARTER 4 HIGHLIGHTS Net sales ▪ Continued favourable demand with SEK 2,927 m, -4% positive trends in most key segments ▪ Fewer project deliveries and decreased inflow of new projects related to power grids affected sales negatively ▪ Operating margin almost in line with last year’s strong closing a
Slide 5: Recovery in Demand Continues
QUARTER 4 RECOVERY IN DEMAND CONTINUES ▪ Net sales decreased compared to last year’s strong closing ▪ All business areas developing according to plan. Limited effect in the quarter from component shortage ▪ Favourable market situation in forest industry and wind power – clear recovery in the enginee
Slide 6: EBITA Decreased to SEK 335 m (407)
QUARTER 4 EBITA DECREASED TO SEK 335 M (407) ▪ EBITA margin amounted to 11.4 percent compared to a very strong margin last year ▪ EBITA was affected positively by cost- and efficiency measures and favourable contribution from acquisitions ▪ The EBITA margin was affected negatively by revaluations of
Slide 7: Good Hedge Gave Stable Outcome
FULL YEAR 2020/2021 GOOD HEDGE GAVE STABLE OUTCOME ▪ The pandemic has posed challenges for our units operating in the marine, special vehicles and mechanical industry segments ▪ The business situation has generally been stable in electronics, data & telecom and medical technology ▪ The demand from t
Slide 8: High Pace of Business and Good Cost Control
FULL YEAR 2020/2021 HIGH PACE OF BUSINESS AND GOOD COST CONTROL ▪ Net sales decreased by 3% to SEK 11,336 m (11,735) ▪ Weak business climate in several markets with demand varying between quarters ▪ Positive trend in most key segments during second half of the year ▪ Strong cost control. In total, a
Slide 9: Automation
3 months ending 12 months ending AUTOMATION 31 Mar 21 31 Mar 20 Δ 31 Mar 21 31 Mar 20 Δ Net Sales, SEK m 614 694 -11% 2,384 2,425 -2% Quarter 4 EBITA, SEK m 77 99 -22% 245 267 -8% ▪ Net sales decreased to SEK 614 m (694) EBITA-margin, % 12.5 14.3 – 10.3 11.0 – ▪ EBITA decreased to SEK 77 m (99) ▪ Ve
Slide 10: Components
3 months ending 12 months ending COMPONENTS 31 Mar 21 31 Mar 20 Δ 31 Mar 21 31 Mar 20 Δ Net Sales, SEK m 534 578 -8% 2,015 2,082 -3% Quarter 4 EBITA, SEK m 59 65 -8% 196 218 -10% ▪ Net sales decreased to SEK 534 m (578) EBITA-margin, % 11.1 11.2 – 9.7 10.5 – ▪ EBITA decreased to SEK 59 m (65) ▪ Soli
Slide 11: Energy
3 months ending 12 months ending ENERGY 31 Mar 21 31 Mar 20 Δ 31 Mar 21 31 Mar 20 Δ Net Sales, SEK m 593 604 -2% 2,566 2,412 6% Quarter 4 EBITA, SEK m 82 78 4% 329 282 16% ▪ Net sales decreased to SEK 593 m (604) EBITA-margin, % 13.8 13.0 – 12.8 11.7 – ▪ EBITA increased by 4 percent to SEK 82 m (78)
Slide 12: Industrial Process
3 months ending 12 months ending INDUSTRIAL PROCESS 31 Mar 21 31 Mar 20 Δ 31 Mar 21 31 Mar 20 Δ Net Sales, SEK m 729 732 -1% 2,785 3,204 -13% Quarter 4: EBITA, SEK m 52 113 -54% 288 445 -35% ▪ Net sales decreased marginally to SEK 729 m (732) EBITA-margin, % 7.1 15.4 – 10.3 13.9 – ▪ EBITA decreased
Slide 13: Power Solutions
3 months ending 12 months ending POWER SOLUTIONS 31 Mar 21 31 Mar 20 Δ 31 Mar 21 31 Mar 20 Δ Net Sales, SEK m 462 434 6% 1,606 1,630 -1% Quarter 4: EBITA, SEK m 63 68 -8% 209 231 -10% ▪ Net sales increased by 6 percent to SEK 462 m (434) EBITA-margin, % 13.5 15.7 – 13.0 14.2 – ▪ EBITA decreased to S
Slide 14: 14 Acquisitions Since Beginning of Business Year
Acquisitions Business Area Access Net Sales, SEK m* Number of employees* Elkome Group Oy Automation April, 2020 85 38 Peter Andersson AB Energy April, 2020 30 9 ▪ 14 acquisitions since Valutec Group AB Industrial Process April, 2020 350 45 beginning of business year Fluidcontrol Oy Components Septem
Slide 15: Financial Position
FINANCIAL POSITION 15
Slide 16: Income Statement, Condensed
INCOME STATEMENT, CONDENSED 3 months ending 12 months ending (SEKm) 31 Mar 21 31 Mar 20 31 Mar 21 31 Mar 20 Net Sales 2,927 3,038 11,336 11,735 Cost of sales & op. expenses -2,675 -2,737 -10,343 -10,664 Other operating items 14 51 -4 90 Operating profit 266 352 989 1,161 Financial income & expenses
Slide 17: Cash Flow Statement, Condensed
CASH FLOW STATEMENT, CONDENSED 3 months ending 12 months ending (SEKm) 31 Mar 21 31 Mar 20 31 Mar 21 31 Mar 20 Profit after financial items 251 333 937 1,105 Adj. for non cash items 151 76 551 354 Income tax paid -81 -86 -320 -273 Changes in working capital 132 127 335 -69 Cash flow from operating a
Slide 18: Cash Flow Recovery
18 CASH FLOW RECOVERY 140% 130% 120% 110% 100% 90% 80% 70% 60% 50% Cash flow from operating activities / Operating profit 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021
Slide 19: Cash Flow R12
CASH FLOW R12 Cash flow from operating and investing activities 19
Slide 20: Key Financial Indicators
KEY FINANCIAL INDICATORS (SEKm) 31 Mar 21 31 Mar 20 Total equity (SEKm) 3,450 3,076 Equity per share, SEK 11.95 11.25 Equity ratio, % 35 36 Return on working capital (P/WC), % 52 56 Return on equity, % 23 32 ▪ Strong acquisition pace and lower Return on capital employed, % 15 21 EBITDA but still sat
Slide 21: Approach to Net Debt / Equity Ratio
APPROACH TO NET DEBT / EQUITY RATIO ▪ Besides P/WC, no specific targets for gearing and debt ▪ Debt rate bound to move up and down periodically with business like ours ▪ Our target to acquire on our own cashflow is working well 21
Slide 22: Key Take Aways
KEY TAKE AWAYS ▪ The recovery in demand continued in the fourth quarter − Positive trend in most key segments ▪ Efficiency measures support earnings performance − Long-term cost reductions gradually replace short-term savings ▪ High pace of business − Fourteen acquisitions with a strong pipeline ▪ S
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