Slide 1: Lindab Group Q4 2016
lindab | we simplify construction Lindab Group Anders Berg, President and CEO Kristian Ackeby, CFO Q4 2016 We simplify construction
Slide 2: Agenda
lindab | we simplify construction Agenda • Summary and overview • Financials • Highlights • Outlook • Summary and Q&A 2
Slide 3: Summary and overview
lindab | we simplify construction Summary and overview 3
Slide 4: Higher profit but split picture between segments
lindab | we simplify construction Higher profit but split picture between segments Key financial highlights Q4 2016 • Net sales increased to SEK 2,039 m (1,980), organic growth of 1%. • Operating profit amounted to SEK 112 m (124), excluding one-off items of SEK 0 m (-24). • Operating margin amounte
Slide 5: Good growth in all Nordic markets
lindab | we simplify construction Good growth in all Nordic markets ”Products & Solutions show continued strong development in most product areas and markets, Growth 48% while sales declined in Building 9% Systems, mainly related to large shipments to Africa last year.” 18% Anders Berg, Growth Presi
Slide 6: Good growth in Products & Solutions
lindab | we simplify construction Good growth in Products & Solutions Segment/Product areas Growth Comments Products & Solutions Good growth in both Nordic and Western Europe with particularly strong sales Ventilation Products trend in Sweden. Indoor Climate Solutions Stable positive trend with grow
Slide 7: Financials
lindab | we simplify construction Financials 7
Slide 8: Growth despite challenges
lindab | we simplify construction Growth despite challenges Lindab Group financial highlights Q4 2016 SEK m Q4´16 Q4´15 Chg % • Net sales increased to SEK 2,039 m Net Sales 2,039 1,980 3 (1,980) with organic growth of 1%. Organic, % 1 • Continued good development in Structure1, % 0 Products & Soluti
Slide 9: 13th consecutive quarter with organic growth
lindab | we simplify construction 13th consecutive quarter with organic growth Products & Solutions financial highlights Q4 2016 SEK m Q4´16 Q4´15 Chg % • Strong sales development in the Net Sales 1,804 1,698 6 Nordic region and Western Europe. Organic, % 4 Structure1, % 0 • EBIT increased 19% mainl
Slide 10: Sales decline and margin deteriorate
lindab | we simplify construction Sales decline and margin deteriorate Building Systems financial highlights Q4 2016 SEK m Q4´16 Q4´15 Chg % • Sales declined 21% organically in Q4 Net Sales 235 282 -17 due to larger key account shipments to Organic, % -21 Structure1, % 0 Africa and Italy last year.
Slide 11: Stable cash flow and lower net debt
lindab | we simplify construction Stable cash flow and lower net debt Lindab Group cash flow Q4 2016 SEK m Q4´16 Q4´15 • Higher cash flow generated from Cash flow from operating activities. - operating activities1 153 146 - change in working capital 156 145 • Improvements in working capital - invest
Slide 12: Sales growth with operating leverage
lindab | we simplify construction Sales growth with operating leverage Lindab Group financial highlights full year 2016 SEK m 2016 2015 Chg % • Net sales increased to SEK 7,849 m Net Sales 7,849 7,589 3 (7,589) with organic growth of 4%. Organic, % 4 • EBIT adjusted for one-off items Structure1, % 0
Slide 13: Increased earning per share in 2016
lindab | we simplify construction Increased earning per share in 2016 Lindab Group financial highlights full year 2016 • Earnings per share increased SEK 0.03 Earnings per share in 2016 or 1% in 2016. However, one-off items SEK +12% had a positive effect on EPS in 2015 and 4.37 a negative effect in
Slide 14: Improved cash flow and reduced net debt
lindab | we simplify construction Improved cash flow and reduced net debt Lindab Group cash flow full year 2016 SEK m 2016 2015 • Higher cash flow generated from Cash flow from operating activities. - operating activities1 614 582 - change in working capital 25 5 • Investments in fixed assets lower
Slide 15: The Board of Directors proposed dividend
lindab | we simplify construction The Board of Directors proposed dividend • Dividend policy: Lindab will distribute 30% of the company’s profit after tax, taking into account the company’s capital structure, acquisition needs and long term financing requirements. • Proposed dividend per share: SEK
Slide 16: Highlights
lindab | we simplify construction Highlights 16
Slide 17: Continued rapid steel price increases
lindab | we simplify construction Continued rapid steel price increases • Steel prices have increased rapidly for one Steel spot price indices* year and this development is expected to North Europe continue into 2017. Hot-dip galvanized (HDG) Hot-rolled coils (HRC) 800 +66% in last 12m • Large focus
Slide 18: Product and Solutions: UltraLink
lindab | we simplify construction Product and Solutions UltraLink “The introduction of UltraLink for air flow measurement • UltraLink received its first order and without any pressure drop was very convenient and delivery to Norway during Q4. suited directly into this concept for a low energy projec
Slide 19: Product and Solutions: Indoor Climate Solutions projects
lindab | we simplify construction Product and Solutions Indoor Climate Solutions, examples of prestigious projects • In UK we received a break-through order to supply Indoor Climate Solutions for a new state-of-the-art hospital to a value of approximately SEK 2 m. • In Switzerland we received a SEK
Slide 20: Building Systems
lindab | we simplify construction Building Systems Challenges in the quarter • The weak result in Q4 2016 explained by low sales volume combined with low gross margin. • Building Systems has not been able to successfully compensate for the significant increases in raw materials, impacting ‘steel int
Slide 21: Some highlights from the quarter
lindab | we simplify construction Some highlights from the quarter Tightness matters – energy efficiency Buildings Solutions order of 7 MSEK won in Norway to a power plant project. Lindab’s rainwater system has been selected for the inspirational Silverlake project in the UK. Lindab Digitalisation f
Slide 22: Outlook
lindab | we simplify construction Outlook 22
Slide 23: Market development
lindab | we simplify construction Market development Some slowdown forecasted by Euroconstruct in 2017 • The European construction market is Forecast: European construction market estimated to have grown 2.9% in 2016. Source: Euroconstruct (Nov -16) Growth is mainly driven by residential 4 2.9 const
Slide 24: Summary and Q&A
lindab | we simplify construction Summary and Q&A 24
Slide 25: Higher profit but split picture between segments
lindab | we simplify construction Higher profit but split picture between segments Key financial highlights Q4 2016 • Net sales increased to SEK 2,039 m (1,980), organic growth of 1 percent. • Operating profit amounted to SEK 112 m (124), excluding one-off items of SEK 0 m (-24). • Operating margin
Slide 26: Thank you Q&A
lindab | we simplify construction Thank you “Lindab’s innovative solutions create ultimate comfort in the buildings of the future.” Q&A