Slide 1: Q4 2017
Q4 2017 Bo Annvik CEO
Slide 2: Summary 2017
Summary 2017 • Record high sales and earnings • Favourable market conditions • 12 acquisitions with total annual sales of SEK 1.3 billion • Net sales rose 15% to 14,847 MSEK (12,955) • Adjusted EBITA 11.8% • EBITA rose 9% to 1,613 MSEK (1,484) • EBITA margin 10.9% (11.5) • Earnings per share rose 9%
Slide 3: Highlights fourth quarter 2017
Highlights fourth quarter 2017 • Positive momentum in most operations, with growth in order intake, sales and earnings • Continued good development in the Nordic countries, Benelux and Germany • Lower volumes for valves for power generation having an impact on earnings and EBITA-margin • Restructuri
Slide 4: Financial summary fourth quarter 2017
Financial summary fourth quarter 2017 • Order intake rose 13% to 3,895 MSEK (3,434) • Net sales rose 12% to 3,932 MSEK (3,499) • Restructuring costs of 132 MSEK • Excluding restructuring costs EBITA rose 10% to 431 MSEK, corresponding to an EBITA-margin of 11.0% • EBITA declined 24% to 299 MSEK (391
Slide 5: Market conditions
Market conditions • Sweden: ↗ • Finland: ↗ • Norway: oil & gas → other → • Denmark: → • UK: → • Ireland: → • Benelux: ↗ • Switzerland: → • Germany: ↗ • North America: → • Asia: ↗ 5
Slide 6: Order intake
Order intake Order intake Order intake Order intake Order intake moving 12 mos MSEK mov 12m MSEK MSEK 4 000 16 000 500 growth Q4 2017 13% 3 500 14 000 400 3 000 12 000 8% 2 500 10 000 300 2 000 8 000 6% 200 1 500 6 000 100 1 000 4 000 500 2 000 0 0 0 -1% Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1
Slide 7: Net sales
Net sales Net sales Net sales Net sales Net sales moving 12 mos mov 12m MSEK MSEK MSEK 4 000 16 000 500 12% 3 500 14 000 400 3 000 12 000 300 8% 2 500 10 000 2 000 8 000 200 5% 1 500 6 000 100 1 000 4 000 0 500 2 000 0 0 -1% -100 Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12 Q1 -13 Q1 -14
Slide 8: EBITA
EBITA EBITA EBITA EBITA EBITA moving 12 mos mov 12m MSEK MSEK MSEK 500 2 000 100 growth Q4 2017 450 1 800 400 1 600 50 7% 350 1 400 4% 300 1 200 0 250 1 000 -1% 200 800 -50 150 600 100 400 -100 50 200 -24% 0 0 Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12 Q1 -13 Q1 -14 Q1 -15 Q1 -16 Q1 -17
Slide 9: Growth bridge 2017
Growth bridge 2017 Q4 Q4 MSEK 2017 Org Acq F/X Restruct Total 2016 Order 3,895 6% 8% -1% - 13% 3,434 intake Net sales 3,932 5% 8% -1% - 12% 3,499 EBITA 299 4% 7% -1% -34% -24% 391 9
Slide 10: Acquisitions 2017
Acquisitions 2017 Annual sales Possession 1. RS Technics B.V., NL 20 MSEK January 2. Sunflower Medical Ltd, UK 50 MSEK January 3. Ellard Ltd, UK 100 MSEK February 4. Türenfabrik, CH 70 MSEK March 5. Pro-Flex AS, NO 100 MSEK April 6. MaxxVision, DE 80 MSEK April 7. Wennerström Ljuskontroll AB, SE 110
Slide 11: Engineering & Equipment; Flow Technology
Engineering & Equipment • Net sales: 461 MSEK (415) +11%, whereof organic +11% 500 • EBITA: 43 MSEK (29) +48% 14, 0% 12,8% 12, 0% 400 11,3% • EBITA-margin: 9.3% (7.0) 10, 0% 9,3% 300 8,0% • Positive business climate 8,0 % 7,0% 200 • Stable demand in most customer segments 6,0 % 4,0 % 100 2,0 % 0 0,0
Slide 12: Fluids & Mechanical Solutions; Industrial Components
Fluids & Mechanical Solutions • Net sales: 474 MSEK (445) +7%, whereof organic +5% 500 • EBITA: 52 MSEK (54) -4% 20, 0% 18, 0% 400 • EBITA-margin: 11.0% (12.1) 16, 0% 13,1% 13,1% 14, 0% 12,1% 12,9% 300 11,0% • Stable demand 12, 0% 10, 0% 200 • Higher costs within some units 8,0 % 6,0 % 100 4,0 % 2,0
Slide 13: Measurement & Sensor Technology; Special Products
Measurement & Sensor Technology • Net sales: 387 MSEK (338) +14%, whereof organic +14% 400 • EBITA: 65 MSEK (51) +27% 25, 0% 19,2% • EBITA-margin: 16.8% (15.1) 20, 0% 300 16,6% 17,1% 16,8% 15,1% • Stable demand in most regions and applicable 15, 0% 200 segments 10, 0% 100 • Healthy margins 5,0 % 0 0
Slide 14: Earnings per share
Earnings per share Q4: -32% SEK 1.42 (2.08) SEK YTD: 9% SEK 8.54 (7.80) 3,00 Proposed dividend: SEK 3.75 (3.20) +17% 2,50 2,00 1,50 1,00 0,50 0,00 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12 Q1 -13 Q1 -14 Q1 -15 Q1 -16 Q1 -17 14
Slide 15: Financial targets
Financial targets 2017 Target Growth 15% >10% EBITA-margin 10.9% >10% Return on operating capital 19% >20% Net debt/equity ratio 74% <100% 15
Slide 16: Income statement
Income statement MSEK Q4 2017 Q4 2016 % 2017 2016 Net sales 3,932 3,499 12% 14,847 12,955 Gross profit 1,299 1,159 12% 4,966 4,348 % 33.0% 33.1% 33.4% 33.6% Operating expenses -1,004 -851 18% -3,534 -3,126 % -25.5% -24.3% -23.8% -24.1% Other -56 27 -52 50 Operating profit 239 335 -29% 1,380 1,272 Fi
Slide 17: Balance sheet
Balance sheet MSEK 31 Dec 2017 31 Dec 2016 Intangible fixed assets 4,947 39% 4,267 39% Tangible and financial fixed assets 1,757 14% 1,568 14% Inventories 2,517 20% 2,249 20% Receivables 2,881 23% 2,637 24% Cash and cash equivalents 464 4% 332 3% Total assets 12,566 11,053 Equity 5,168 41% 4,399 40%
Slide 18: Financial key data
Financial key data MSEK 31 Dec 2017 31 Dec 2016 31 Dec 2015 Adjusted EBITA margin, % 11.8 11.5 12.0 EBITA margin, % 10.9 11.5 12.0 Return on operating capital, % 19 20 22 Return on equity, % 22 24 26 Interest-bearing net debt, SEK million 3,829 3,628 2,949 Net debt/equity ratio, % 74 82 80 Net debt/
Slide 19: Margins
Margins Net sales Net sales GP 2 margin Net sales Net sales EBITA-margin MSEK MSEK 4 000 40,0% 4 000 16,0% 3 500 35,0% 3 500 14,0% 3 000 30,0% 3 000 12,0% 2 500 25,0% 2 500 10,0% 2 000 20,0% 2 000 8,0% 1 500 15,0% 1 500 6,0% 1 000 10,0% 1 000 4,0% 500 5,0% 500 2,0% 0 0,0% 0 0,0% Q1 -12 Q1 -13 Q1 -14
Slide 20: New Business Areas 2018
New Business Areas 2018 • New Business Areas established – to strengthen platform for continued profitable growth of current portfolio companies – to maintain a high acquisition pace – to better utilize the international skills within the Group • Business Area ‘Special Products’, with a majority of
Slide 21: New Business Areas 2018
New Business Areas 2018 • Flow Technology (Product/technology commonalities) • Measurement & Sensor Technology (Product/technology commonalities) • Fluids & Mechanical Solutions • Industrial Components • Finland (Engineering & Equipment) • Benelux 30% 16% • DACH 20% 10% • UK 21
Slide 22: Management Group extended and strengthened
Management Group extended and strengthened • As a result of the new Business Areas, the existing Group Management is extended and strengthened • Better utilize the international skills within the company • Reflect our international business scope and growth potential 22
Slide 23: Business objective
Business objective » Growth » Profitable » Sustainable
Slide 24: Thank you! Q&A
Thank you! Q&A 24