Slide 1: Presentation Year-End Report 2017
Presentation Year-End Report 2017 15 February 2018
Slide 2: Management and Chairman
MANAGEMENT AND CHAIRMAN Fredrik Karlsson Per Waldemarson Therése Hoffman Ingvar Ljungqvist Carl Bennet CEO Deputy CEO CFO Head of Acquisitions Chairman Born: 1962 Born: 1977 Born: 1971 Born: 1960 Born: 1951 Education Education Education Education Other assignments • MSc in Engineering • MSc in Busin
Slide 3: Lifco develops leading niche companies
LIFCO DEVELOPS LEADING NICHE COMPANIES Sales 2017: 10,030 MSEK EBITA 2017: 1,732 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 excavato
Slide 4: 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 • No big shake-outs. We l
Slide 5: One target: to increase profits every year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR EBITA before acquisition costs (MSEK) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 EBITA margin 11.5% 14.2% 15.0% 15.3% 17.3% Dental Demolition & Tools Systems Solutions Note: IFRS accounting since 2012
Slide 6: Acquired vs organic EBITA growth
ACQUIRED VS ORGANIC EBITA GROWTH MSEK 2017 2016 2015 EBITA 1,732 1,377 1,186 EBITA from acquisitions 198 152 118 % growth 14% 13% 12% Of which from previous year’s 68 16 27 acquisitions Of which from current year’s 130 136 91 acquisitions Organic EBITA growth 157 39 102 % growth 11% 3% 11% Acquired
Slide 7: Net debt development and balance sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 30 Dec 31 Dec 30 Sep MSEK 2017 2016 2017 MSEK Times Intangible fixed assets 8,288 6,824 8,017 4000 4 Tangible fixed assets 550 464 530 Financial assets 130 109 113 3500 3,5 Inventory 1,391 1,155 1,353 Accounts receivable 1,274
Slide 8: Maintaining focus on capital employed
MAINTAINING FOCUS ON CAPITAL EMPLOYED EBITA margin ROCE excl. goodwill and other intang. assets x.x% ROCE incl. goodwill and other intangible assets 17.3% 177% 15.0% 15.3% 141% 123% 19.9% 18.7% 19.7% 2015 2016 2017 2015 2016 2017 8
Slide 9: Strong profit oriented culture
STRONG 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 bureaucracy Outs
Slide 10: Examples of value creation
EXAMPLES OF VALUE CREATION Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth CAGR CAGR 7% 8% 19% 4% 11% 8% 190 212 167 32% 183 169 11% 118 71 79 31 14 1997 2006 2013 2015 2017 2000 2006 2013 2015 2017 EBIT EBIT 5% 12% 18% 19% 20% 10% 27% 33% 40% 40% margin ma
Slide 11: Geographic footprint
GEOGRAPHIC FOOTPRINT Dental Norway 11% Sweden 18% North Germany Rest of America 18% Europe Demolition & Tools 10% 32% Asia & Australia Rest of 10% World 1% Systems Solutions Note: Geographic split financial year 2017 11
Slide 12: Dental
DENTAL Sales split by product category 2017 % EBITA* and % of total EBITA** 2017 Manufacturing Software Dental 38% Software 2% 701 MSEK Manufacturing 10% Distribution 69% Prosthetics 18% Sales split by geography 2017 APAC 1% North America 6% Sweden 15% Norway 10% Rest of Prosthetics Distribution Eur
Slide 13: Strong foothold on key markets
STRONG FOOTHOLD ON 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 ✓ ✓ ✓ ✓ ✓ ✓ Distribution of FI equipment ✓ ✓ ✓ ✓ ✓ Nordics
Slide 14: Dental financial overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 800 20,0% 18,0% 700 16,0% 3,817 600 3,590 14,0% 3,435 3,266 500 12,0% 2,840 2,826 2,439 400 10,0% 8,0% 300 1,663 1,674 1,435 6,0% 200 1,048 890 4,0% 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2
Slide 15: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2017 EBITA* and % of total EBITA** 2017 % Demolition machines 598 Demolition MSEK machines 44% Demolition & Tools 33% Sales split by geography 2017 Rest of world 1% Sweden 10% Norway 1% APAC 16% Attachments for Germany excavators and 17% cranes 56% Attachme
Slide 16: Demolition & Tools financial overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 700 35,0% 600 30,0% 2,261 500 25,0% 1,726 1,574 400 20,0% 1,289 1,176 1,189 300 15,0% 1,039 992 862 743 736 200 10,0% 373 100 5,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2007 2008 2009 2
Slide 17: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2017 EBITA* and % of total EBITA** 2017 % Environ- Systems Contract mental Solutions manufacturing technology 29% Contract 537 MSEK Environmental manufacturing 23% technology 29% Construc- tion material Sales split by geography 2017 Rest of world 1%
Slide 18: Systems Solutions financial overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 600 16,0% 3,952 14,0% 3,671 500 12,0% 2,892 400 10,0% 2,428 2,276 2,247 2,168 300 8,0% 2,055 2,014 1,869 1,747 6,0% 1,366 200 4,0% 100 2,0% 0 0,0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2007 200
Slide 19: Strong cash flow generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments 1400 90% 1800 2,0% 1600 1200 85% 1,8% 1400 80% 1000 1200 1,6% 75% 800 1000 70% 1,4% 600 800 65% 600 1,2% 400 60% 400 200 1,0% 55% 200 0 50% 0 0,8% 2014 2015 2016 2017 2014 2015 2016 2017 Operating c
Slide 20: Overview of acquisitions 2006–2012
OVERVIEW OF ACQUISITIONS 2006–2012 Sales at Total sales Segment split - # of acquisitions Year Company Description Type Country acquisition MSEK 2006-2017 Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and servi
Slide 21: 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 22: 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 23: 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 24: The Group's financial performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q417 Q416 Change 2017 2016 Change Net sales 2,789 2,435 14.5%* 10,030 8,987 11.6%** EBITA*** 510 380 34.2% 1,732 1,377 25.8% EBITA margin*** 18.3% 15.6% 2.7 17.3% 15.3% 2.0 Profit before tax 442 330 33.9% 1,473 1,219 20.8% Net profit for the period 329 260 26.5
Slide 25: The business areas' financial performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q417 Q416 Change 2017 2016 Change Net sales 1,008 1,014 -0.6% 3,817 3,590 6.3% EBITA* 184 183 0.5% 701 655 7.0% EBITA margin* 18.3% 18.0% 0.3 18.4% 18.2% 0.2 DEMOLITION & TOOLS MSEK Q417 Q416 Change 2017 2016 Change Net sales 633 441 43.5% 2,261
Slide 26: Highlights
HIGHLIGHTS Strong track • 12.9% annual sales growth rate 2006-2017 record • 18.0% annual EBITA growth rate 2006-2017 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 27: Lifco
LIFCO A SAFE HAVEN FOR YOUR BUSINESS