Slide 1: Interim Report 1 April – 30 September 2023
INTERIM REPORT 1 APRIL – 30 SEPTEMBER 2023 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
Slide 2: Quarter 2 Highlights
QUARTER 2 HIGHLIGHTS Continued high customer activity Net sales 10% net sales growth of which SEK 4,879 m, +10% 1%pt. was organic EBITA growth of 25% with very high margins 14.9% (13.2) Higher added value, improved product mix and a good contribution from acquisitions EBITA‐margin High cas
Slide 3: Quarter 2: Net Sales Development – High Customer Activity
QUARTER 2: NET SALES DEVELOPMENT HIGH CUSTOMER ACTIVITY Net sales increased by 10% of which 1% organic − Weaker organic sales growth in Energy Stable market situation in most key segments and geographies − No general decline in customer activity Well‐filled order backlog with good quality − A
Slide 4: Quarter 2: EBITA Development – Strong Margins
QUARTER 2: EBITA DEVELOPMENT STRONG MARGINS 25% EBITA growth with very strong margins of 14.9% (13.2) − Contributions from all business areas − Higher added value, improved product mix and good contributions from acquisitions Operating cash flow strengthened over the quarter − P/WC improved from
Slide 5: Strengthened Profitability Across the Line
QUARTER 2: BUSINESS AREA DEVELOPMENT STRENGTHENED PROFITABILITY ACROSS THE LINE AUTOMATION ELECTRIFICATION ENERGY INDUSTRIAL SOLUTIONS PROCESS TECHNOLOGY Net sales SEK 862 m (810) +6% Net sales SEK 1,029 m (958) +7% Net sales SEK 1,297 m (1,256) +3% Net sales SEK 835 m (709) +18% Net sales SEK 863 m
Slide 6: Earnings per Share 3.00 SEK
PERIOD 1 APRIL – 30 SEPTEMBER EARNINGS PER SHARE 3.00 SEK (2.50) Net sales increased by 13% to SEK 9,968 m (8,794) The organic growth amounted to 4 % and acquired growth amounted to 5% EBITA increased by 23% and amounted to SEK 1,423 m (1,152) corresponding to an EBITA margin of 14.3% (13.1)
Slide 7: Our Acquisition Pace Is According to Plan
OUR ACQUISITION PACE IS ACCORDING TO PLAN Acquisition Business area Access Net sales, SEKm* Employees* Six companies acquired during INDAG Maschinenbau GmbH Process Technology April 2023 55 40 first half of the year Clyde Holding Ltd. Process Technology April 2023 150 49 In total about SEK 465 m
Slide 8: The Strong Margin Trend Continues
THE STRONG MARGIN TREND CONTINUES 8
Slide 9: Strong Result and Focus on Working Capital
STRONG RESULT AND FOCUS ON WORKING CAPITAL 9
Slide 10: Improved Cash Conversion
10 IMPROVED CASH CONVERSION 3,000 2,500 2,000 1,500 1,000 500 ° Improved cash conversion 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 R12 mm Cash flow from operating activities ——Cash flow from operating activities/ Opearting profit 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0%
Slide 11: Low Risk Balance Sheet
LOW RISK BALANCE SHEET Equity ratio 36% (32%) Leverage 1.5 (2.2) Gearing 0.8 (1.1) 11
Slide 12: Five Areas for Future Growth
FIVE AREAS FOR FUTURE GROWTH AUTOMATION ELECTRIFICATION ENERGY INDUSTRIAL PROCESS SOLUTIONS TECHNOLOGY MOTION & BATTERY ENERGY MATERIAL PROCESS DRIVES SYSTEMS PRODUCTS PROCESSING SYSTEMS CONNECTIVITY EMISSION INDUSTRIAL IT ENERGY VEHICLE SOLUTIONS CONTROL & SENSORS SUPPLY SOLUTIONS POWER & PROCESS M
Slide 13: Summary
SUMMARY Continued high customer activity Stable market situation in most key segments and geographies EBITA growth of 25% with improved margins 14.9% (13.2) ‐ solid contribution across the line Strong cash conversion and improved P/WC Acquisition pace according to plan – focus on value‐add