Slide 1: Presentation Year-End Report 2020
Presentation Year-End Report 2020 2 February 2021
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q420 Q419 Change 2020 2019 Change Net sales 3,751 3,741 0.3%1 13,782 13,845 -0.5%2 EBITA3 782 651 20.1% 2,702 2,523 7.1% EBITA margin3 20.8% 17.4% 3.4 19.6% 18.2% 1.4 Profit before tax 654 548 19.3% 2,199 1,996 10.2% Net profit for the period 518 442 17.2% 1,67
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q420 Q419 Change 2020 2019 Change Net sales 1,213 1,137 6.7% 4,290 4,393 -2.3% EBITA* 266 206 29.1% 898 874 2.7% EBITA margin* 21.9% 18.1% 3.8 20.9% 19.9% 1.0 DEMOLITION & TOOLS MSEK Q420 Q419 Change 2020 2019 Change Net sales 856 886 -3.4% 3,234
Slide 4: COVID-19 Pandemic
COVID-19 PANDEMIC • The Dental business area was positively impacted during the second half of the year by the recovery of the European dental markets back to more normal levels following a decline in April-May due to the pandemic. • The Systems Solutions business area as a whole was relatively unaf
Slide 5: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH MSEK 2020 2019 2018 2017 2016 2015 EBITA 2,702 2,523 2,168 1,732 1,377 1,186 EBITA from acquisitions 222 221 197 198 152 118 Growth % 9% 10% 11% 14% 13% 12% Of which from previous 115 43 124 68 16 27 year’s acquisitions Of which from current 107 178 73 130 136 91 yea
Slide 6: Net Debt Development and Balance Sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 30 Dec 31 Dec 30 Sep 6000 4 MSEK 2020 2019 2020 MSEK Times Intangible fixed assets 11,610 11,209 11,933 Tangible fixed assets 1,504 1,503 1,514 3,5 Financial assets 199 182 183 5000 Inventory 1,864 1,997 1,920 3 Accounts recei
Slide 7: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR 2 .6 % 01 02 6– 2 7 .6 % 2 00 01 GR 2 02 A 6– EBITA before acquisition costs and sC 00 Sa le G R2 non-recurring items (MSEK) A CA I T EB 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EBITA
Slide 8: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 165% 21.0% 19.5% 19.6% 139% 108% 12.5% 50% 2018 2019 2020 2018 2019 2020 Target ranges ROCE has been negatively impacted by the implementation of IFRS 16 as of 1 January 2019. 8
Slide 9: Lifco 22 Years
LIFCO 22 YEARS Top Ten Swedish Large Caps 9
Slide 10: Management and Chairman
MANAGEMENT AND CHAIRMAN Per Waldemarson Therése Hoffman Martin Linder Ingvar Ljungqvist Carl Bennet CEO CFO Head of Business Area Head of Acquisitions Chairman Born: 1977 Born: 1971 Systems Solutions Born: 1960 Born: 1951 Education Education Born: 1972 Education Other assignments • International Mar
Slide 11: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES LIFCO Sales 2020: 13,782 MSEK EBITA 2020: 2,702 MSEK Dental Demolition & Tools Systems Solutions Leading distributors of dental products in Leading producers of demolition robots and Wide range of leading systems solutions Nordics and Germany attachments for ex
Slide 12: A Safe Haven for Your Business
A SAFE HAVEN FOR YOUR BUSINESS Lifco is a long-term • Lifco basically never sells a company owner • All decisions taken at local management level The business stays • No forced synergies or integration independent and local • Lifco has never moved a business Incremental and continuous • No big shake
Slide 13: Decentralized Profit-Oriented Culture
DECENTRALIZED PROFIT-ORIENTED CULTURE Right person in the right position • Motivated managers who deliver results Continuous pricing optimization • Focus on customers with potential for sustainable profit growth Optimized management structure • Focus on value adding personnel and minimized bureaucra
Slide 14: Sustainability an Integrated Part of Our Business Strategy
SUSTAINABILITY AN INTEGRATED PART OF OUR BUSINESS STRATEGY Code of Conduct Invest in niche All subsidiaries companies UN Global Compact must apply with a sustainable signatory business model All employees must be informed Any deviation to the Code Sustainability part of Conduct is Whistleblower of o
Slide 15: Examples of Organic Development
EXAMPLES OF ORGANIC DEVELOPMENT Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth CAGR CAGR 9% 8% 7% 19% -3% 4% 11% 8% 225 212 198 32% 190 183 169 167 11% 118 79 71 31 14 1997 2006 2013 2015 2017 2019 2000 2006 2013 2015 2017 2019 EBIT EBIT 5% 12% 18% 19% 20%
Slide 16: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway 11% Sweden 15% North Germany Rest of America Europe 16% Demolition & Tools 9% 38% Asia & Australia Rest of 10% World 1% Systems Solutions Note: Geographic split financial year 2020. 16
Slide 17: Dental
DENTAL Sales split by product category 2020 EBITA* and % of% total EBITA** 2020 Manufacturing Software Dental 32% 898 Software 3% MSEK Manufacturing 15% Distribution 67% Prosthetics 15% Sales split by geography 2020 APAC 1% Rest of world 1% North America 5% Sweden 12% Norway 12% Prosthetics Distribu
Slide 18: Strong Foothold in Key Markets
STRONG FOOTHOLD IN KEY MARKETS Lifco’s dental market presence and example of brands used in different markets Lifco’s market positions within dental consumables Sweden Norway Denmark Finland Germany Rest of Europe Distribution of consumables ü ü ü ü ü ü Distribution of FI equipment ü ü ü ü ü Nordics
Slide 19: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 0 16.8% 4393 1000 6- 202 25% .9% 4290 200 0 11 4185 R 6- 202 CAG R 200 3817 900 CAG 3590 3435 800 20% 3266 700 2840 2826 2439 600 15% 500 1663 1674 400 10% 1435 300 1048 890 200 5% 100 0 0% 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Slide 20: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2020 EBITA* and % of total EBITA** 2020 % Demolition machines 750 Demolition MSEK machines 35% Demolition & Tools 27% Sales split by geography 2020 Rest of world 2% Sweden 8% Norway 1% APAC 20% Attachments for Germany excavators and 16% cranes 65% Attachmen
Slide 21: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin % % 1 4 .6 1 6 .7 6-2020 -2 020 900 R 200 7. 1% 35% 006 CAG 01 R 2 4 .1 % - 202 CAG 202 01 800 2 010 10- 3610 AGR 30% AG R 20 C C 3234 700 25% 2820 600 500 20% 2261 1725 400 15% 1574 1289 300 1176 1189 1039 10% 992 862
Slide 22: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2020 EBITA* and % of total EBITA** 2020 % Environ- Systems Contract mental Solutions manufacturing technology 41% Contract 1,166 Environmental MSEK manufacturing 19% technology 27% Construc- tion material Forest 12% Sales split by geography 2020 Rest
Slide 23: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin % 202 0 11.5 2006- CAGR 8. 7% 1 .8 % 01 2020 1 02 2010- 006 -2 .4 % CAGR 6258 R2 02 2 1400 G 02 20% 5842 CA -2 0 10 R2 18% 4951 1200 G CA 16% 1000 14% 3952 3455 12% 800 2892 10% 2428 600 2276 2168 2247 8% 2055 2014 1869
Slide 24: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments1 3000 2000 2,0% 100% 1800 2500 1,8% 1600 90% 1400 2000 1,6% 1200 80% 1500 1000 1,4% 800 70% 1,2% 1000 600 60% 400 500 1,0% 200 0 50% 0 0,8% 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 201
Slide 25: Overview of Acquisitions 2006–2012
OVERVIEW OF ACQUISITIONS 2006–2012 Sales at Total sales Year Company Description Type Country acquisition MSEK Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and services Dental Finland MEUR 3 132 Elektronikprod
Slide 26: Overview of Acquisitions 2014–2016
OVERVIEW OF ACQUISITIONS 2014–2016 Sales at Total sales Year Company Description Type Country acquisition MSEK 2014 MDH Producer of dental prosthetics Dental Germany MEUR 44 400 Auger Torque Producer of earth drills Demolition & Tools UK MGBP 10 J.H. Orsing Dental products Dental Sweden MSEK 20 Prev
Slide 27: Overview of Acquisitions 2017
OVERVIEW OF ACQUISITIONS 2017 Sales at Total sales Year Company Description Type Country acquisition MSEK Haglöf Sweden Professional forest inventory instruments Systems Solution Sweden MSEK 60 Hultdins Manufactures tools for forest machines Demolition & Tools Sweden MSEK 152 Silvent Energy optimiza
Slide 28: Overview of Acquisitions 2018–2019
OVERVIEW OF ACQUISITIONS 2018–2019 Sales at Total sales Year Company Description Type Country acquisition MSEK Computer konkret Software for dentists Dental Germany MEUR 3.8 Spocs Assembling and testing of electronic products Systems Solutions Sweden MSEK 61 Norway MNOK 95 Dental Direkt - 3D Dental
Slide 29: Overview of Acquisitions 2020–2021
OVERVIEW OF ACQUISITIONS 2020–2021 Sales at Total sales Year Company Description Type Country acquisition MSEK Rönvig Dental Dental Dental Denmark MDKK 30 Manufacturing Workplace Safety Dental Dental Denmark MDKK 79 Dental Grupa Distributor of dental products Dental Croatia MSEK 94 Cramaro Tarpaulin
Slide 30: Number of Acquisitions 2006–2021
NUMBER OF ACQUISITIONS 2006–2021 Segment split Country split HK NZ EE HR FR US 1 11 1 2 FI 3 3 IT 5 SE 25 28 32 37 DK 6 UK 7 14 13 12 16 NO DE 30
Slide 31: Financial Targets
FINANCIAL TARGETS • Organic growth in EBITA in excess of GDP growth in relevant geographies Growth in EBITA • Acquisitions to add additional growth EBITA/Capital • More than 50% employed1 Net debt/EBITDA • Normally in the range 2-3x Dividend policy • Distribute 30-50% of net profit as % of net profi
Slide 32: Highlights
HIGHLIGHTS Strong track • 12.6% annual sales growth rate 2006-2020 record • 17.6% annual EBITA growth rate 2006-2020 Focus on • Good profitability is a prerequisite for sustainable growth profitability Strong market • Strong market positions in the Nordic markets in the Dental segment (top 2-3) and
Slide 33: Lifco
LIFCO A SAFE HAVEN FOR YOUR BUSINESS