Slide 1: Q3 2017
Q3 2017 Bo Annvik CEO Jan Öhman CFO
Slide 2: Highlights third quarter 2017
Highlights third quarter 2017 • Stable market conditions • Positive momentum in most operations, with growth in order intake, sales and earnings • Good development in the Nordic countries • Lower volumes for valves for power generation and continued low volumes in the marine segment having an impact
Slide 3: Financial summary third quarter 2017
Financial summary third quarter 2017 • Order intake rose 15% to 3,532 MSEK (3,082) • Net sales rose 14% to 3,633 MSEK (3,176) • EBITA rose 19% to 450 MSEK (377) • EBITA margin 12.4% (11.9%) • Profit after tax rose 22% to 293 MSEK (239) corresponding to earnings per share of SEK 2.43 (1.99) • Return
Slide 4: Market conditions
Market conditions • Sweden: ↗ • Finland: ↗ • Norway: oil & gas → other → • Denmark: → • UK: → • Ireland: → • Benelux: ↗ • Switzerland: → • Germany: ↗ • North America: → • Asia: ↗ 4
Slide 5: Order intake
Order intake Order intake Order intake Order intake Order intake moving 12 mos MSEK mov 12m MSEK MSEK 4 000 16 000 500 growth Q3 2017 15% 3 500 14 000 400 3 000 12 000 300 2 500 10 000 8% 7% 2 000 8 000 200 1 500 6 000 100 1 000 4 000 500 2 000 0 0 0 0% Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1 -
Slide 6: Net sales
Net sales Net sales Net sales Net sales Net sales moving 12 mos mov 12m MSEK MSEK MSEK 4 000 16 000 500 growth Q3 2017 14% 3 500 14 000 400 3 000 12 000 2 500 10 000 300 8% 7% 2 000 8 000 200 1 500 6 000 100 1 000 4 000 0 500 2 000 -1% 0 0 -100 Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12
Slide 7: EBITA
EBITA EBITA EBITA EBITA EBITA moving 12 mos mov 12m MSEK MSEK MSEK 500 2 000 100 growth Q3 2017 450 1 800 400 1 600 80 19% 350 1 400 60 300 1 200 12% 250 1 000 40 9% 200 800 150 600 20 100 400 0 50 200 -2% 0 0 -20 Q1 -05 Q1 -06 Q1 -07 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12 Q1 -13 Q1 -14 Q1 -15 Q1 -16 Q1
Slide 8: Growth bridge 2017
Growth bridge 2017 Q3 Q3 MSEK 2017 Organic Acquisitions Currency Total 2016 Order intake 3,532 7% 8% 0% 15% 3,082 Net sales 3,633 7% 8% -1% 14% 3,176 EBITA 450 12% 9% -2% 19% 377 YTD Sept YTD Sept MSEK 2017 Organic Acquisitions Currency Total 2016 Order intake 11,156 7% 9% 1% 17% 9,570 Net sales 10,
Slide 9: Acquisitions 2017
Acquisitions 2017 Annual sales Possession 1. RS Technics B.V., NL 20 MSEK January 2. Sunflower Medical Ltd, UK 50 MSEK January 3. Ellard Ltd, UK 100 MSEK February 4. Türenfabrik, CH 70 MSEK March 5. Pro-Flex AS, NO 100 MSEK April 6. MaxxVision, DE 80 MSEK April 7. Wennerström Ljuskontroll AB, SE 110
Slide 10: Engineering & Equipment / Flow Technology
Engineering & Equipment • Net sales: 415 MSEK (389) +7%, whereof organic +6% 500 12,8% • EBITA: 53 MSEK (42) +26% 14, 0% 12, 0% 400 10,8% 11,3% • EBITA-marginal: 12.8% (10.8) 10, 0% 300 8,0% • Positive business climate 8,0 % 7,0% 200 • Stable demand in most customer segments 6,0 % 4,0 % 100 2,0 % 0
Slide 11: Fluids & Mechanical Solutions / Industrial Components
Fluids & Mechanical Solutions • Net sales: 441 MSEK (385) +15%, whereof organic +7% 500 • EBITA: 57 MSEK (48) +19% 20, 0% 18, 0% 400 • EBITA-marginal: 12.9% (12.5) 16, 0% 13,1% 13,1% 12,9% 14, 0% 300 12,5% 12,1% • Stable demand 12, 0% 10, 0% 200 • Stable performance 8,0 % 6,0 % 100 • Acquisitions 4,
Slide 12: Measurement & Sensor Technology / Special Products
Measurement & Sensor Technology • Net sales: 340 MSEK (295) +15%, whereof organic +14% 400 • EBITA: 58 MSEK (51) +14% 25, 0% 19,2% • EBITA-marginal: 17.1% (17.3) 20, 0% 300 17,3% 16,6% 17,1% 15,1% • Stable demand in most regions and applicable 15, 0% 200 segments 10, 0% 100 • Changed mix 5,0 % 0 • H
Slide 13: Earnings per share
Earnings per share Q3: 22% SEK 2.43 (1.99) SEK YTD: 24% SEK 7.12 (5.73) 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Q1 -08 Q1 -09 Q1 -10 Q1 -11 Q1 -12 Q1 -13 Q1 -14 Q1 -15 Q1 -16 Q1 -17 13
Slide 14: Financial targets
Financial targets September Target 2017 Growth 15% >10% EBITA-margin 12.0% >10% Return on operating capital 21% >20% Net debt/equity ratio 77% <100% 14
Slide 15: Income statement
Income statement MSEK Q3 2017 Q3 2016 % Mov 12 m 2016 Net sales 3,633 3,176 14% 14,414 12,955 Gross profit 1,202 1,054 14% 4,826 4,348 % 33.1% 33.2% 33.5% 33.6% Operating expenses -816 -737 11% -3,381 -3,126 % -22.5% -23.2% -23.5% -24.1% Other 4 5 31 50 Operating profit 390 322 21% 1,476 1,272 Finan
Slide 16: Balance sheet
Balance sheet MSEK 30 Sept 2017 31 Dec 2016 30 Sept 2016 Intangible fixed assets 4,686 39% 4,267 39% 4,266 39% Tangible and financial fixed assets 1,617 13% 1,568 14% 1,574 14% Inventories 2,466 20% 2,249 20% 2,238 20% Receivables 3,013 25% 2,637 24% 2,693 24% Cash and cash equivalents 375 3% 332 3%
Slide 17: Financial key data
Financial key data Mov 12 m Mov 12 m MSEK 31 Dec 2016 31 Dec 2015 Q3 2017 Q3 2016 EBITA margin, % 11.8 11.8 11.5 12.0 Return on operating capital, % 21 21 20 22 Return on equity, % 24 25 24 26 Interest-bearing net debt, SEK million 3,775 3,992 3,628 2,949 Net debt/equity ratio, % 77 98 82 80 Net deb
Slide 18: Margins
Margins Net sales Net sales GP 2 margin Net sales Net sales EBITA-margin MSEK MSEK 4 000 40,0% 4 000 16,0% 3 500 35,0% 3 500 14,0% 3 000 30,0% 3 000 12,0% 2 500 25,0% 2 500 10,0% 2 000 20,0% 2 000 8,0% 1 500 15,0% 1 500 6,0% 1 000 10,0% 1 000 4,0% 500 5,0% 500 2,0% 0 0,0% 0 0,0% Q1 -12 Q1 -13 Q1 -14
Slide 19: Q3 2017 Q&A
Q3 2017 Q&A