Slide 1: Q2 Report 2019
Q2 Report 2019 Bo Annvik, CEO Patrik Johnson, CFO 18 July 2019
Slide 2: Highlights second quarter 2019
Highlights second quarter 2019 ▪ Good and stable demand with positive book to bill ▪ Increasing variation in demand between companies, segments and markets ▪ High acquisition pace – 10 companies acquired so far during the year ▪ EBITA margin improved slightly ▪ Cash flow improved during the quarter,
Slide 3: Order intake
Order intake Q GROWTH YTD GROWTH R3Y CAGR 4,653 MSEK +6% +8% +11% 3
Slide 4: Net sales
Net sales Q GROWTH YTD GROWTH R3Y CAGR 4,587 MSEK +4% +8% +11% 4
Slide 5: EBITA*
EBITA* Q GROWTH YTD GROWTH R3Y CAGR 574 MSEK +6% +12% +12% *) Excluding restructuring costs 2017-Q4 5
Slide 6: Organic sales growth by Business Area
Organic sales growth by Business Area Total growth: -2% +10% -14% +7% +3% -1% +23% +24% ▪ Variation increasing between companies, segments and markets ▪ Continued strong development in Business Areas UK and Flow Technology, but uncertainty surrounding Brexit affecting to a greater extent than during
Slide 7: EBITA margin by Business Area
EBITA margin by Business Area ▪ EBITA margin improved in 5 out of 8 Business Areas ▪ Strongest development in UK and Flow Technology driven by higher sales, favourable mix and good cost control ▪ Finland benefited from efficiency measures and divestments ▪ Benelux declined mainly due to the Power Ge
Slide 8: Acquisitions & divestments 2019
Acquisitions & divestments 2019 Acquisitions Business Area Annual Sales Q1 Weldability Sif UK 100 MSEK STRIHL Scandinavia AB Fluids & Mechanical Solutions 60 MSEK Q2 Acumo AB Industrial Components 60 MSEK QbiQ Group B.V. Benelux 320 MSEK Adam Equipment Co Ltd Measurement & Sensor Technology 150 MSEK
Slide 9: Key data summary
Key data summary MSEK 2019-Q2 2018-Q2 Change 2019-YTD 2018-YTD Change Order Intake 4,653 4,391 6% 9,263 8,564 8% Net Sales 4,587 4,390 4% 8,953 8,287 8% Gross margin, % 34.4 33.6 34.3 34.1 EBITA 574 543 6% 1,111 994 12% EBITA-margin, % 12.5 12.4 12.4 12.0 Net financial items -27 -18 50% -54 -38 42%
Slide 10: Overview IFRS 16 effects
Overview IFRS 16 effects Item / KPI Impact Comment Net debt +842 MSEK Opening balance Finance net -10 MSEK Increased costs YTD-2019 Depreciation -140 MSEK Increased costs YTD-2019 EBITA +10 MSEK Increased costs YTD-2019 EBITDA +150 MSEK Increased result YTD-2019 Net debt / equity +14%-points Approxi
Slide 11: Cash Flow from operating activities
Cash Flow from operating activities ▪ Cash Flow from operating activities grew 68% from 290 MSEK to 488 MSEK, mainly driven by lower working capital build up and increased profit ▪ Working capital still on slightly high level due to high capacity utilization in our companies and long lead times from
Slide 12: Earnings per share
Earnings per share ▪ Q2 earnings per share in line with last year, SEK 3.02 (3.01) ▪ 3- and 5-year earnings per share CAGR, are 12% respectively 16% 12
Slide 13: Net debt
Net debt ▪ The interest-bearing net debt end of Q2 increased 6,422 (4,451) MSEK ▪ Driven by the high acquisition pace and the implementation of IFRS 16 ▪ Net debt/equity ratio increased to 99% (79%). The ratio would have been approximately 85% excluding IFRS 16 effects ▪ Long-term financing strength
Slide 14: Stability based on diverse segments
Stability based on diverse segments Construction/ Engineering Infrastructure Energy Healthcare 19% 17% 12% 11% Net sales per customer segment %, financial year 2018 No/low segment dependency Business cycle “hedging” 14
Slide 15: Strategic initiatives
People – talent management Sustainability as business opportunity STRATEGIC INITIATIVES Knowledge sharing Indutrade tool box 15
Slide 16: Key takeaways
Key takeaways ▪ Good and stable demand, but with increased variation between companies, segments and markets ▪ Solid profitability ▪ High pace of acquisitions and opportunities remain good ▪ Diversified Group with agile and flexible companies, working closely with the customers ▪ Stable platform in
Slide 17: Thank you! Q&A
Thank you! Q&A
Slide 18: Financial Calendar & contact details
Financial Calendar & contact details • 25 October 2019 Interim Report 1 January – 30 September 2019 • 5 February 2020 Year End Report 1 January – 31 December 2019 Contact: Frida Adrian VP Communications, Sustainability and IR +46 70 930 93 24 frida.adrian@indutrade.com 18
Slide 19: IIT indutrade
IIT indutrade