Slide 1: Year End Report 1 April 2022 – 31 March 2023
YEAR END REPORT 1 APRIL 2022 – 31 MARCH 2023 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: Quarter 4 Highlights
QUARTER 4 HIGHLIGHTS Very strong quarter with solid contributions from all business Net sales areas SEK 5,267 m, +34% Continued high customer activity Organic sales growth of 21% Order backlog remains at a high level and is of good quality EBITA growth of 47% EBITA-margin Profit margin i
Slide 3: Quarter 4: Net Sales Development – High Customer Activity
QUARTER 4: NET SALES DEVELOPMENT HIGH CUSTOMER ACTIVITY Net sales increased by 34% of which 21% was organic growth − High customer activity in most customer segments and geographies − Overall good delivery capacity − Order backlog remains at a high level despite strong invoicing in the quarter − C
Slide 4: Quarter 4: EBITA Development – Strong Quarterly Result
QUARTER 4: EBITA DEVELOPMENT STRONG QUARTERLY RESULT 47% EBITA growth with a margin of 14.4% − Solid contribution from, and margins increased, in all business areas − Continued focus on cost control and active customer and supplier dialogue − Operating cash flow strengthened over the quarter − P/W
Slide 5: Solid Contribution Across the Board
QUARTER 4: BUSINESS AREA DEVELOPMENT SOLID CONTRIBUTION ACROSS THE BOARD AUTOMATION ELECTRIFICATION ENERGY INDUSTRIAL SOLUTIONS PROCESS TECHNOLOGY Net sales SEK 962 m (828) +16% Net sales SEK 1,149 m (732) +57% Net sales SEK 1,355 m (992) +37% Net sales SEK 937 m (720) +30% Net sales SEK 875 m (649)
Slide 6: Full Year 2022/2023 Highlights
FULL YEAR 2022/2023 HIGHLIGHTS Very strong year with a high level of growth and profitability in all Net sales business areas SEK 18,714 m, +33% Strong demand and favourable order situation in all key customer segments Record high organic sales growth of 17% Very satisfying EBITA growth of 4
Slide 7: Record Year
FULL YEAR 2022/2023 RECORD YEAR Net sales increased by 33% to SEK 18,714 m (14,038) The organic growth amounted to 17% and acquired growth amounted to 12% EBITA increased by 41% and amounted to SEK 2,540 m (1,803) corresponding to an EBITA margin of 13.6% (12.8) Operating profit increased by
Slide 8: Automation: Cutting-Edge Expertise in Automated Processes
AUTOMATION CUTTING-EDGE EXPERTISE IN AUTOMATED PROCESSES Very solid year with improved margins Net sales increased by 26% The companies within Automation − High customer activity are well positioned to capture the − Positive impact from value chain disruptions easing potential of strong driving fo
Slide 9: Electrification: Broad Offering for Customers' Technical Leap
ELECTRIFICATION BROAD OFFERING FOR CUSTOMERS’ TECHNICAL LEAP Strong growth in all business units Net sales increased by 54% The companies within Electrification − High demand in all customer segments are already well positioned to respond to the strong drivers of − Mix of both organic and acquired
Slide 10: Energy: Technical Expertise for the Electrification of Society
ENERGY TECHNICAL EXPERTISE FOR THE ELECTRIFICATION OF SOCIETY High customer activity in key segments One of the key drivers right now is Net sales increased by 37% the ongoing electrification of society. − The will to invest among grid owners remains – the positive trend expected to continue With
Slide 11: Industrial Solutions: Expertise That Mitigates Environmental Impact
INDUSTRIAL SOLUTIONS EXPERTISE THAT MITIGATES SOCIETY´S ENVIRONMENTAL IMPACT Strong growth despite challenging comparisons Net sales increased by 21% Future growth areas are the − Solid growth across segments increased use of wood, ergonomic − Large number of project deliveries products and waste
Slide 12: Process Technology: Reduced Environmental Impact from Industry
PROCESS TECHNOLOGY FOR A REDUCED ENVIRONMENTAL IMPACT FROM INDUSTRY Another strong year We see great business opportunities in Net sales increased by 27% the industry's challenge to reduce its − High activity across the board environmental impact. There is an − Solid recovery in the marine segment
Slide 13: Strong Demand in Key Segments and Geographies
FULL YEAR 2022/2023 STRONG DEMAND IN KEY SEGMENTS AND GEOGRAPHIES Sales of input components and solutions to manufacturing Stable and well-diversified customer segments companies in special vehicles, electronics and medical- and mechanical industry remains highly favourable Continued strong dema
Slide 14: 10 Companies Acquired – Another Four After Closing
10 COMPANIES ACQUIRED – ANOTHER FOUR AFTER CLOSING Acquisition Business area Access Net sales, SEKm* Employees* In total, all fourteen adding Intertrafo Oy Energy April 2022 30 15 SEK 1,200 m and 382 new Electric Control Systems Automation AS Process Technology April 2022 75 31 employees to the Gr
Slide 15: Accelerated International Expansion
ACCELERATED INTERNATIONAL EXPANSION Increased sales outside the Nordics Sales per geographic market 2022/2023 • As a whole, the Nordic markets developed strongly over the year • Our important markets, DACH, the UK and Benelux strengthened over the year 15
Slide 16: Continued Strong Shareholder Value Creation
CONTINUED STRONG SHAREHOLDER VALUE CREATION 16
Slide 17: Strict Cost Control and Good Leverage on Organic Growth and Acquisitions
STRICT COST CONTROL AND GOOD LEVERAGE ON ORGANIC GROWTH AND ACQUISITIONS 17
Slide 18: Improved Inventory Levels
IMPROVED INVENTORY LEVELS 18
Slide 19: Improved Cash Conversion
IMPROVED CASH CONVERSION Cash flow per share 7.10 SEK (4.15) Strong growth and improved cash conversion 19
Slide 20: Low Risk Balance Sheet
LOW RISK BALANCE SHEET Equity ratio 36% (34%) Leverage 1.5 (2.0) Gearing 0.8 (1.0) 20
Slide 21: Well Positioned for Future Growth
WELL POSITIONED FOR FUTURE GROWTH AUTOMATION ELECTRIFICATION ENERGY INDUSTRIAL PROCESS SOLUTIONS TECHNOLOGY MOTION & BATTERY ENERGY MATERIAL PROCESS DRIVES SYSTEMS PRODUCTS PROCESSING SYSTEMS CONNECTIVITY EMISSION INDUSTRIAL IT ENERGY VEHICLE SOLUTIONS CONTROL & SENSORS SUPPLY SOLUTIONS POWER & PROC
Slide 22: Summary
SUMMARY A very strong Q4 concludes a successful year with high growth and profitability in all business areas Record-high full year organic sales growth of 17% The high customer activity remains in all key segments and geographies - no clear signs of a general slowdown in demand Despite high