Slide 1: Q2 Report 2020
An entrepreneurial world where people make the difference Bo Annvik, CEO Q2 Report 2020 Patrik Johnson, CFO 17 July 2020
Slide 2: Highlights second quarter 2020
Highlights second quarter 2020 ▪ Weakened overall demand and uncertain market conditions due to covid-19 ▪ Significant variations between companies, segments and markets ▪ EBITA margin improved by good cost management and positive demand in certain segments ▪ Strengthened financial position and impr
Slide 3: Order intake
Order intake QUARTERLY GROWTH Q GROWTH YTD GROWTH R3Y CAGR 4,604 MSEK -1% +8% +5% 3
Slide 4: Net sales
Net sales QUARTERLY GROWTH Q GROWTH YTD GROWTH R3Y CAGR 4,614 MSEK +1% +7% +7% 4
Slide 5: EBITA
EBITA QUARTERLY GROWTH *) Excluding restructuring costs 2017-Q4 Q2-20 MARGIN Q GROWTH YTD GROWTH 602 MSEK 13.0% +5% +10% 5
Slide 6: Organic sales growth by Business Area
Organic sales growth by Business Area Total growth: +28% +13% +4% +1% -10% -2% -8% -21% ▪ Large variations between companies, segments and markets ▪ All Business Areas negatively effected by the pandemic, especially businesses in General Engineering and Automotive ▪ Business Area Benelux supported b
Slide 7: EBITA margin by Business Area
EBITA margin by Business Area ▪ Five out of eight Business Areas increased the EBITA margin ▪ Improvements in Business Areas Flow Technology and Industrial Components mainly driven by strong performance in MedTech- and Pharma segments in combination with temporary cost measures ▪ Cost reductions and
Slide 8: Acquisitions & Divestments 2020
Acquisitions & Divestments 2020 Acquisitions Business Area Annual Sales STEIN Automation GmbH DACH 110 MSEK VarioDrive BV Benelux 60 MSEK AVA Monitoring AB Measurement & Sensor Technology 45 MSEK Q1 Sverre Hellum & Sønn AS Industrial Components 60 MSEK Jouka OY Finland 70 MSEK Nortronic AS Industria
Slide 9: Key data summary
Key data summary MSEK 2020-Q2 2019-Q2 Change 2020-YTD 2019-YTD Order Intake 4,604 4,653 -1% 10,005 9,263 8% Net Sales 4,614 4,587 1% 9,590 8,953 7% Gross margin, % 33.7 34.4 33.9 34.3 EBITA 602 574 5% 1,218 1,111 10% EBITA-margin, % 13.0 12.5 12.7 12.4 Net financial items -35 -27 30% -67 -54 24% Tax
Slide 10: Cash Flow from operating activities
Cash Flow from operating activities ▪ Cash flow from operating activities grew 65% from 488 MSEK to 806 MSEK ▪ Growth versus last year mainly driven by an improved working capital development and a higher result ▪ Inventories were still on a high level, mainly due to earlier inventory build-up to en
Slide 11: Earnings per share
Earnings per share ▪ Q2 earnings per share grew 1% to SEK 3.05 (3.02) ▪ Improvement driven by higher EBITA, but partly offset by increased amortizations of intangibles, financing costs and taxes ▪ 3- and 5-year rolling 4Q earnings per share CAGR, were 13% and 14% 11
Slide 12: Net debt
Net debt ▪ The interest-bearing net debt decreased to 5,657 (6,422) MSEK ▪ Net debt was positively impacted by a strong cash flow, postponed acquisitions and no dividend for 2019 ▪ Net debt/equity ratio was 72% (99%) ▪ The long-term financing strengthened further during the quarter 12
Slide 13: Effects of covid-19 in Q2
Effects of covid-19 in Q2 Lower demand effected majority of the companies, especially businesses related to General Engineering and Automotive. UK companies impacted by the lock-down. Increasing volumes and strong development in some of the MedTech companies Cost measures implemented by all companie
Slide 14: Diversified business group with flexible and entrepreneurial companies
Proprietary products/ manufacturing Diversified business group with flexible and entrepreneurial companies fully accountable Technical trading
Slide 15: Stable platform for long-term value creation
Stable platform for long-term value creation People Knowledge Sustainability Indutrade talent management sharing as a business opportunity toolbox D I G I TAL I S AT I O N 15
Slide 16: Key takeaways
Key takeaways ▪ Lower demand due to covid-19, but large variations between companies, segments and markets ▪ Improved EBITA margin, effected positively by strong segments and good cost management ▪ We expect gradual improvement as countries open up, but continued uncertainty ahead ▪ Diversified busi
Slide 17: Thank you! Q&A
Thank you! Indutrade
Slide 18: Trusted by entrepreneurs
Our brand promise Trusted by entrepreneurs 18
Slide 19: Financial Calendar & contact details
Financial Calendar & contact details 20 October 2020 Interim report 1 January – 30 September 2020 2 February 2021 Year End Report 1 January – 31 December 2020 Contact: Frida Adrian VP Communications, Sustainability and IR +46 70 930 93 24 frida.adrian@indutrade.com 19