Slide 1: Interim Report 1 April – 30 September 2021
INTERIM REPORT 1 APRIL – 30 SEPTEMBER 2021 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: Strong quarter with high demand
STRONG QUARTER WITH HIGH DEMAND Strong underlying demand Net sales with high activity in all business areas 3,257 SEKm, +20% Organic sales growth of 10% EBITA growth of 39% and record high margins Record high R/RK of 61% EBITA-margin 13.1% Sharpened organisation from From 11.2% October 1st
Slide 3: Quarter 2: Net sales development
QUARTER 2: NET SALES DEVELOPMENT STRONG UNDERLYING DEMAND WITH HIGH GROWTH IN ALL BUSINESS Good growth and high acquisition rate in all business areas - net sales up with 20% of which organic growth amounted to 10% The market situation was highly favourable in all major customer segments and geo
Slide 4: EBITA increased 39% with record high margins
QUARTER 2: EBITA DEVELOPMENT EBITA INCREASED 39% WITH RECORD HIGH MARGINS EBITA amounted to 425 MSEK (306) Strong market situation, continued good cost control and well-handled price increases from suppliers The record high EBITA-margin amounted to 13.1% (11.2) Cost levels expected to gradua
Slide 5: High activity in all business areas
QUARTER 2: BUSINESS AREA DEVELOPMENT HIGH ACTIVITY IN ALL BUSINESS AREAS AUTOMATION COMPONENTS ENERGY INDUSTRIAL PROCESS POWER SOLUTIONS Net sales 657 SEKm (562) +17% Net sales 572 SEKm (487) +17% Net sales 674 SEKm (633) +6% Net sales 855 SEKm (680) +26% Net sales 507 SEKm (365) +39% EBITA 81 SEKm
Slide 6: Net sales increased by 18%
PERIOD APRIL 1 – SEPTEMBER 30 NET SALES INCREASED BY 18 % Net sales increased by 18% to SEK 6,536 m (5,528) The organic growth amounted to 11 percent and acquired growth amounted to 9 percent EBITA increased by 35% and amounted to SEK 827 m (612) corresponding to an EBITA margin of 12.7% (11.1
Slide 7: Carefully selected acquisitions
CAREFULLY SELECTED ACQUISITIONS 5 ACQUISITIONS IN THE SECOND QUARTER Acquisition Business area Access Net sales, Employee MSEK* s* 365 SEKm ESi Controls Ltd. Power Solutions April 2021 95 15 Total annual turnover Hydro-Material Oy IETV Elektroteknik AB Components Energy April 2021 May 2021 50 80 5 3
Slide 8: Financial position
FINANCIAL POSITION 8
Slide 9: Income statement, condensed
INCOME STATEMENT, CONDENSED 3 months ending 6 months ending 12 months ending (SEKm) 30 Sept 21 30 Sept 20 30 Sept 21 30 Sept 20 30 Sept 21 31 Mar 21 Net Sales 3,257 2,723 6,536 5,528 12,344 11,336 Cost of sales & op. expenses -2,915 -2,479 -5,866 -5,035 -11,174 -10,343 Other operating items 9 -2 13
Slide 10: Net sales & margin
30/9 2021 R12 NET SALES & MARGIN Net Sales EBITA EBITA margin 12,344 kSEK 1,466 kSEK 11.9 % Operating profit 1,187 kSEK Operating margin 9.6 % 10
Slide 11: Cash flow statement, condensed
CASH FLOW STATEMENT, CONDENSED 3 months ending 6 months ending 12 months ending (SEKm) 30 Sept 21 30 Sept 20 30 Sept 21 30 Sept 20 30 Sept 21 31 Mar 21 Profit after financial items 337 227 655 460 1,132 937 Adj. for non cash items 142 138 273 267 557 551 Income tax paid -88 -79 -165 -139 -346 -320 C
Slide 12: P (EBITA) / WC
P (EBITA) / WC Record high P/WC 61% − Positive effect from improved margins and EBITA − Negative effects from necessary working capital increases 12
Slide 13: Key financial indicators
KEY FINANCIAL INDICATORS (SEKm) 30 Sept 21 31 Mar 21 30 Sept 20 Total equity (SEKm) 3,563 3,450 3,028 Back to satisfactory levels Equity per share, SEK 12.30 11.95 10.40 of key ratios despite high Equity ratio, % 32 35 32 acquisition pace and Return on working capital (P/WC), % 61 52 51 dividend R
Slide 14: Strategic mix for sustainable growth
STRATEGIC MIX FOR SUSTAINABLE GROWTH 14
Slide 15: Adding passion for people and entrepreneurship
ADDING PASSION FOR PEOPLE AND ENTREPRENEURSHIP FINANCIAL STRENGTH ACADEMY GROUP FUNCTIONS CULTURE STRATEGY CORE VALUES SUSTAINABILITY ACQUISITION NETWORK ACTIVE OWNERSHIP MODEL TALENT MANAGEMENT 15
Slide 16: Solid track record of EBITA growth
SOLID TRACK RECORD OF EBITA GROWTH 8% AG R1 C 9/11, IT crisis Finance crisis Oil crisis Cyber attack Covid-19 16
Slide 17: Five areas for future growth
FIVE AREAS FOR FUTURE GROWTH AUTOMATIO ELECTRIFICA ENER PROCESS INDUSTRIAL N TION GY TECHNOLOG SOLUTIONS BATTERY ENERGY Y PROCESS MOTION & MATERIAL SYSTEMS PRODUCT SYSTEMS DRIVES PROCESSING S CONNECTIVITY EMISSION INDUSTRIAL IT ENERGY VEHICLE SOLUTIONS CONTROL & SENSORS SUPPLY SOLUTIONS POWER & PROC
Slide 18: Summary
SUMMARY Strong underlying demand with high activity in all business areas − Net sales increased with 20% of which 10% organic growth − Limited effect from component shortage − High acquisition pace remains – eleven acquisitions completed so far this financial year EBITA growth of 39% with record
Slide 19: Q&A
Q&A 19