Slide 1: Presentation January – June 2023
Presentation January – June 2023 14 July 2023
Slide 2: The Group's Financial Performance
THE GROUP’S FINANCIAL PERFORMANCE MSEK Q223 Q222 Change 2023 LTM 2022 Change Net sales 6,206 5,508 12.7%1 23,187 21,552 7.6%2 EBITA3 1,487 1,221 21.8% 5,242 4,662 12.4% EBITA margin3 24.0% 22.2% 1.8 22.6% 21.6% 1.0 Profit before tax 1,176 1,027 14.5% 4,210 3,842 9.6% Net profit for the period 870 77
Slide 3: The Business Areas' Financial Performance
THE BUSINESS AREAS’ FINANCIAL PERFORMANCE DENTAL MSEK Q223 Q222 Change 2023 LTM 2022 Change Net sales 1,504 1,343 12.0% 5,675 5,295 7.2% EBITA 302 266 13.5% 1,126 1,017 10.7% EBITA margin 20.1% 19.8% 0.3 19.8% 19.2% 0.6 DEMOLITION & TOOLS MSEK Q223 Q222 Change 2023 LTM 2022 Change Net sales 1,889 1,
Slide 4: Acquired vs Organic EBITA Growth
ACQUIRED VS ORGANIC EBITA GROWTH CAGR 2015- MSEK 2022 2022 2021 2020 2019 2018 2017 2016 2015 EBITA N/A 4,662 3,709 2,702 2,523 2,168 1,732 1,377 1,186 EBITA from N/A 401 488 222 221 197 198 152 118 acquisitions EBITA growth from 12% 11% 18% 9% 10% 11% 14% 13% 12% acquisitions Organic EBITA growth 8
Slide 5: Development 2015-2022
DEVELOPMENT 2015-2022 CAGR 2015- MSEK 2022 2022 2021 2020 2019 2018 2017 2016 2015 EBITA 22% 4,662 3,709 2,702 2,523 2,168 1,732 1,377 1,186 EPS1 19% 6.13 5.26 3.67 3.31 3.06 2.39 2.00 1.78 Interest-bearing 16% 5,590 4,603 3,242 4,040 3,170 3,536 3,018 1,950 net debt Interest-bearing N/A 1.1 1.1 1.1
Slide 6: Net Debt Development and Balance Sheet
NET DEBT DEVELOPMENT AND BALANCE SHEET Net debt development Balance sheet 30 Jun 31 Dec 30 Jun MSEK Times MSEK 2023 2022 2022 4 Intangible fixed assets 21,247 18,286 16,624 Tangible fixed assets 2,698 2,364 2,101 10000 Financial assets 393 365 357 3,5 Inventory 4,248 3,682 3,542 Accounts receivable
Slide 7: One Target: To Increase Profits Every Year
ONE TARGET: TO INCREASE PROFITS EVERY YEAR .7 % 13 M LT 2 3 .8 % – 20 18 06 M 0 3 LT R2 20 2 AG EBITA before acquisition costs and – s C 0 06 Sa le R2 non-recurring items (MSEK) G A CA IT EB 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 8: Capital Employed
CAPITAL EMPLOYED ROCE including goodwill ROCE excluding goodwill and other intangible assets and other intangible assets 162% 135% 133% 22.5% 22.6% 22.6% 12.5% 50% 2021 2022 2023 LTM 2021 2022 2023 LTM Target range 8
Slide 9: Management and Chairman
MANAGEMENT AND CHAIRMAN Per Waldemarson Therése Hoffman Martin Linder Carl Bennet CEO CFO Head of Business Area Chairman Started at Lifco 2006 Started at Lifco 2007 Systems Solutions Born: 1951 Born: 1977 Born: 1971 Started at Lifco 2009 Other assignments Education Born: 1972 Education • Chairman an
Slide 10: Lifco Develops Leading Niche Companies
LIFCO DEVELOPS LEADING NICHE COMPANIES LIFCO Sales 2023 LTM: 23,187 MSEK EBITA 2023 LTM: 5,242 MSEK Dental Demolition & Tools Systems Solutions Leading distributors of dental products in Leading producers of demolition robots and Wide range of leading systems solutions Nordics and Germany attachment
Slide 11: A Safe Haven for Your Business
A SAFE HAVEN FOR YOUR BUSINESS Lifco is a long-term • Lifco basically never sells a company owner • All decisions taken at local management level The business stays • No forced synergies or integration independent and local • Lifco has never moved a business Incremental and continuous • No big shake
Slide 12: Decentralized Profit-Oriented Culture
DECENTRALIZED PROFIT-ORIENTED CULTURE Right person in the right position • Motivated managers who deliver results Continuous pricing optimization • Focus on customers with potential for sustainable profit growth Optimized management structure • Focus on value adding personnel and minimized bureaucra
Slide 13: Sustainability an Essential Part of Our Business Strategy
SUSTAINABILITY AN ESSENTIAL PART OF OUR BUSINESS STRATEGY Invest in niche companies UN Global Compact with a sustainable signatory since 2016 business model Extended sustainability Increased number of KPIs reporting in 2022 and targets in 2022 13
Slide 14: Prioritized Sustainability Areas and Central Targets
PRIORITIZED SUSTAINABILITY AREAS AND CENTRAL TARGETS Reduced climate Motivated employees Sound business practices and environmental impact and safe workplaces Reduce energy consumption Reduce staff turnover every All employees must be informed in relation to profit of SEK every year about the Code o
Slide 15: Examples of Organic Development
EXAMPLES OF ORGANIC DEVELOPMENT Dental1 - EBIT (MSEK) and organic EBIT growth Brokk2 - EBIT (MSEK) and organic EBIT growth 10% CAGR CAGR 9% 6% 7% 8% -3% 4% 221 19% 212 11% 198 8% 272 183 169 11% 32% 225 190 167 79 118 71 31 14 1997 2006 2013 2015 2017 2019 2021 2000 2006 2013 2015 2017 2019 2021 EBI
Slide 16: Geographic Footprint
GEOGRAPHIC FOOTPRINT Dental Norway 9% Sweden 13% UK North America 7% Germany Rest of Europe 16% Demolition & Tools 11% 29% Italy 6% Asia & Australia Rest of 8% World 1% Systems Solutions Geographic split financial year 2022. 16
Slide 17: Dental
DENTAL Sales split by product category 2022 EBITA and % of total EBITA1 2023 LTM Dental 21% Software 3% 1,126 MSEK Manufacturing 23% Sales split by geography 2022 APAC 2% Distribution North America 6% Sweden 11% 60% Prosthetics Norway 12% 14% Rest of Europe 37% Germany 32% 1Excluding HQ costs. 17
Slide 18: Dental Financial Overview
DENTAL FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 5675 % % 11.5 5295 1200 15.2 25% LTM 5123 LT M 023 202 3 006-2 6- R2 200 CAG 4393 1000 CAG R 4290 20% 4185 3817 3590 800 3435 3266 15% 28402826 600 2439 10% 400 16631674 1435 5% 1048 200 890 0 0% 0 6 0 7 0 8 0 9 1 0 1 1 1 2 1 3 1 4
Slide 19: Demolition & Tools
DEMOLITION & TOOLS Sales split by business 2022 EBITA and % of total EBITA1 2023 LTM Other niche machinery 9% 1,817 Demolition MSEK machines 24% Demolition & Tools 34% Sales split by geography 2022 Rest of world 2% Sweden 6% APAC 14% Germany 14% North Italy 11% Attachments America for excavators 18%
Slide 20: Demolition & Tools Financial Overview
DEMOLITION & TOOLS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin .9 % -2 0 2 3 LTM 17 0 06 8 .8 % CAGR 2 % M1 2000 M 2 0 .9 30% LT 023 LT 6-2 023 2010-2 0 7 .5 % 1800 CAGR R 20 M1 6995 CAG 02 3 LT 1600 25% 01 0-2 6285 AG R2 1400 C 20% 1200 4701 1000 15% 800 3610 3234 10% 600 2820 400
Slide 21: Systems Solutions
SYSTEMS SOLUTIONS Sales split by product category 2022 EBITA and % of total EBITA1 2023 LTM Systems Solutions Contract Transportation 45% manufacturing products 23% 21% 2,446 MSEK Environmental technology 30% Sales split by geography 2022 Rest of world 1% APAC 8% Sweden 18% Special North products Am
Slide 22: Systems Solutions Financial Overview
SYSTEMS SOLUTIONS FINANCIAL OVERVIEW Sales (MSEK) EBITA (MSEK) and EBITA margin 2 .8 % 2 3 LTM 1 2006- 2 0 0. 3% CAGR .4 % LT M2 7% T M 13 3 3. 202 2500 25% 2 3 L M2 06- 0 10517 2010- 2 T 20 3L CAGR 2 9972 GR 0-20 2000 CA 20 1 20% GR CA 7656 1500 15% 6258 5842 1000 10% 4951 3952 3455 500 5% 2892 242
Slide 23: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Operating cash flow after tax, Capex and acquisitions2 before investments1 3500 3500 2,0% 100% 3000 3000 1,8% 2500 90% 2500 1,6% 2000 2000 80% 1,4% 1500 1500 70% 1,2% 1000 1000 60% 1,0% 500 500 0 50% 0 0,8% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017
Slide 24: Overview of Acquisitions 2006–2012
OVERVIEW OF ACQUISITIONS 2006–2012 Sales at Total sales Year Company Description Type Country acquisition MSEK Darda Producer of attachments for demolition robots Demolition & Tools Germany MEUR 8 2006 Dental Prime Distributor of dental equipment and services Dental Finland MEUR 3 132 Elektronikprod
Slide 25: Overview of Acquisitions 2014–2016
OVERVIEW OF ACQUISITIONS 2014–2016 Sales at Total sales Year Company Description Type Country acquisition MSEK 2014 MDH Producer of dental prosthetics Dental Germany MEUR 44 400 Auger Torque Producer of earth drills Demolition & Tools UK MGBP 10 J.H. Orsing Dental products Dental Sweden MSEK 20 Prev
Slide 26: Overview of Acquisitions 2017
OVERVIEW OF ACQUISITIONS 2017 Sales at Total sales Year Company Description Type Country acquisition MSEK Haglöf Sweden Professional forest inventory instruments Systems Solution Sweden MSEK 60 Hultdins Manufactures tools for forest machines Demolition & Tools Sweden MSEK 152 Silvent Energy optimiza
Slide 27: Overview of Acquisitions 2018–2019
OVERVIEW OF ACQUISITIONS 2018–2019 Sales at Total sales Year Company Description Type Country acquisition MSEK Computer konkret Software for dentists Dental Germany MEUR 3.8 Spocs Assembling and testing of electronic products Systems Solutions Sweden MSEK 61 Norway MNOK 95 Dental Direkt - 3D Dental
Slide 28: Overview of Acquisitions 2020
OVERVIEW OF ACQUISITIONS 2020 Sales at Total sales Year Company Description Type Country acquisition MSEK Rönvig Dental Dental Dental Denmark MDKK 30 Manufacturing Workplace Safety Dental Dental Denmark MDKK 79 Dental Grupa Distributor of dental products Dental Croatia MSEK 94 Cramaro Tarpaulin Tarp
Slide 29: Overview of Acquisitions 2021
OVERVIEW OF ACQUISITIONS 2021 Sales at Total sales Year Company Description Type Country acquisition MSEK Kaniedenta1 Manufacturing and sales of dental consumables Dental Germany MEUR 29 Rissmann Dental 1 Prosthetics Dental Germany MEUR 4.1 Manufacturer of cartooning and sleeving T.Freemantle System
Slide 30: Overview of Acquisitions 2022
OVERVIEW OF ACQUISITIONS 2022 Sales at Total sales Year Company Description Type Country acquisition MSEK Develops and manufactures staff attack and Specialists Alarm Services nurse call systems Dental UK MGBP 3.9 BCC Solutions Supplier of fiber equipment Systems Solutions FI MEUR 11 Trevi Benne Man
Slide 31: Overview of Acquisitions 2023
OVERVIEW OF ACQUISITIONS 2023 Sales at Total sales Year Company Description Type Country acquisition MSEK Supplier of high-end coffee machines and Real Spirit of Coffee Systems Solutions UK MGBP 24 consumables Broughton Plant Hire and Provider of plant hire solutions for the Demolition & Tools UK MG
Slide 32: Number of Acquisitions 2006–2023
NUMBER OF ACQUISITIONS 2006–2023 Segment split Country Countrysplit split2006-2021 2006-2023 Country split 2017-2023 CZ EE HK HR NZ CZ FI FR HK HR NZ FR NL2 11111 FI 2 NL 1 1 1 1 1 1 DE 4 US 2 US 4 3 15 28 SE DK DK 8 5 28 51 49 IT 12 NO 10 13 UK 13 NO 15 24 DE 20 12 IT 12 16 UK SE 32
Slide 33: Financial Targets
FINANCIAL TARGETS • Organic growth in EBITA in excess of GDP growth in relevant geographies Growth in EBITA • Acquisitions to add additional growth EBITA/Capital • More than 50% employed1 Net debt/EBITDA • Normally in the range 2-3x Dividend policy • Distribute 30-50% of net profit as % of net profi
Slide 34: Highlights
HIGHLIGHTS Strong track • 13.7% annual sales growth rate 2006-2023 LTM record • 18.8% annual EBITA growth rate 2006-2023 LTM Focus on • Good profitability is a prerequisite for sustainable growth profitability Strong market • Strong market positions in the Nordic markets in the Dental segment (top 2
Slide 35: Lifco
LIFCO A SAFE HAVEN FOR YOUR BUSINESS