Basics New Focus lindab | we simplify construction Lindab - PowerPoint PPT Presentation

lindab | we simplify construction lindab | we simplify construction A redefined direction for the future of Lindab Same Basics New Focus

lindab | we simplify construction Lindab Simplified * Sales, markets* Simplifying is our passion. Ultimate comfort is our vision 3% 46% 24% Sales, operations* 27% 16% Nordic region Western Europe CEE/CIS 84% Other markets *2013 figures Products and Solutions Building Systems *2013 figures The Lindab brand is a leading and well-known brand throughout Europe. Year 1959 32 countries 126 branches 4,677 employees The majority of the Group’s In 1959 AB Lidhults Plåtindustri Lindab is represented at 157 At the end of Q3 2014 the was registered as a company. locations in 32 countries. sales are made through its Group had 4,677 employees. 126 branches.

lindab | we simplify construction First year as One Lindab moving in One direction Some key highlights 2014 Acquisitions  Novo Clima, Sweden: in-house production of chilled beams (ICS), improving delivery performance, service and efficiency  Klimasystem AS, Norway: adding competence in ICS and strengthening relations to specifiers in Norway  Bjarnes System, Sweden: unique roofing fasteners, important for the established Nordic market and opens new opportunities in other European markets for “roofers”  MP3, Italy : strengthens position as a complete provider of ventilation solutions through key competence within fire and smoke protection and increase market coverage Organic  New country establishments in Istanbul and Moscow with ventilation and ICS  Adding on branches and competence centers in for example France, Switzerland, Sweden, Norway and Estonia Mp3 3

lindab | we simplify construction Lindab has shown great evidence of entrepreneurship over the years Always profitable EBIT 12m Sales 12m (SEK m) (SEK m) 9,840 1,400 10,000 1,200 8,000 6,953 1,000 6,214 6,527 6,000 800 4,415 1,309 600 4,000 400 1,758 2,000 550 553 200 342 347 169 0 0 1959 1980 1990 2000 2005 2010 L12M Sep Sales EBIT* 2014 4 *) EBIT adjusted for larger one-off items

lindab | we simplify construction However, taking a closer look at the clear trend from the last 6 years Rethinking the approach and where Lindab was heading EBIT 12m Sales 12m (SEK m) (SEK m) 1.400 10.000 • The last 11 years can be divided into 2 -6% 1.200 periods with different characteristics +13% 1.000 • 2003 to 2008 saw consistent “price 8.000 driven growth” in Sales and EBIT 800 • 2009 to 2013 saw dramatic loss of 600 sales, however cost measures 6.000 400 secured EBIT 200 • Moving forward, we prioritize a long- term profitable and sustainable growth 0 4.000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 R12 Sep 2014 Sales EBIT 5

lindab | we simplify construction lindab | we simplify construction Building on our basics 6 6

lindab | we simplify construction The starting point is excellent We have a strong foundation to build on Production and Sales and People Products Processes Distributions Our Basics 7

lindab | we simplify construction A matrix organization making it possible to use the full strengths of Lindab One Lindab – Preparing the ground for simplified growth Group functions including Finance, Legal, HR, IR, Sourcing, Market Division Sales Region Sales Region Sales Region Sales Region Group Building Systems North Europe West Europe Mid Europe CEE, Russia Production Ventilations Products Building Products Building Solutions Indoor Climate Solutions ONE Lindab facilitiates growth options in three dimensions: market coverage, portfolio expansion and penetration 8

lindab | we simplify construction lindab | we simplify construction Lindab combine two different characteristics in type of business A combination of growth oriented and project related business Products & Solutions Building Systems Largest customer/project: 2% Largest customer/project: 3-10% Share of sales to developed markets: 98% Share of sales to developed markets: 48% (Western Europe, CEE and US) (Western Europe, CEE and US) Share of renovation: 45% Share of renovation: 0% 9

lindab | we simplify construction lindab | we simplify construction Opportunities and trends

lindab | we simplify construction More than 20 000 customers in Lindabs Ecosystem for simplified construction and energy efficient solutions Many and close customer relations USERS CUSTOMERS STRENGTHEN DISTRIBUTION Residential Our 126 branches and Added sales offices Core Optimized product products logistics range Installers OEM Industrial ALWAYS Our production facilities CLOSE, ALWAYS Contractors Distributors Commercial AVAILABLE DEVELOP SOLUTIONS THE INFLUENCERS R&D facilities Marine Research Solutions Project facilities and Our 126 branches support and systems and sales offices knowledge Public sector Our e-Business, software Property Specifiers, Regulatory solutions and distribution centers and Facility architects bodies and Management consultants and Owners 11

lindab | we simplify construction lindab | we simplify construction Five clear trends in the world today impacting Lindabs business We see global drivers for growth Environment, legislation and energy saving Intelligent buildings Innovation in materials and processes Growing population and urbanization Global economy patterns 12

lindab | we simplify construction lindab | we simplify construction Environmental aspects are drivers in all trends Intense pressure for Innovations 13

lindab | we simplify construction lindab | we simplify construction A strategic shift in our direction

lindab | we simplify construction lindab | we simplify construction New focus same basics Transformation into a fully integrated company From selling what we produce … … to capturing trends and fulfilling customers ’ needs … Business Area driven sales units in each country New flat, matrix organisation BA driven R&D/Product production unit management connected to factory

lindab | we simplify construction Our formula for success Five clear strategic focus areas . Leveraging local Optimising the flow Creating offers of Finding new ways Having the right stars to global from purchase to complete ventilation to increase team for our standards. delivery. solutions. customer value. business. • • • • • Initiatives Strengthen Enhance our A strong Enhance Create a long- for 2015: Marketing and offering in relevant employer brand inventory term, Sales (Solution areas of HVAC and management innovative • strengthen Roll-out and Distribution) culture in order “technology content” • Leverage groupwide to generate • Geographic system to purchasing ideas, both • presence Solutions in Indoor identify power ground- Climate, Marine, competences breaking and • • Residential and make Strategic Improve incremental product ventilation and Light processes more distribution improvements management commercial industry efficient 16

lindab | we simplify construction With the strategy we are refining our long term financial targets Three financial targets supported by the new strategy The dividend target is 30% of the company’s 5-8 % 10 % 2.5 profit after tax considering opportunities for strategic acquisitions, Annual growth based on the financial position of organic growth and Operating margin over a Long term Net debt / the company and long growth from acquisitions EBITDA adjusted for business cycle term need for financing over a business cycle seasonality 17

lindab | we simplify construction There are areas we want to strengthen Potential for acquisitions, primarily in two areas Solutions Leading European companies within categories “Residential and Light Commercial Ventilation”, “Fire and smoke” and “Indoor Climate Solutions” Market excellence Companies that add distribution in new and existing geographies 18

lindab | we simplify construction There are areas we want to strengthen First significant acquisition in line with the strategy announced on 16 December 2014  Mp3 – Italian Ventilations Solutions Company adding competence and market coverage  Annual turnover approx. SEK 210 m with EBIT approx. SEK 20 million  95 employees  Adds in- house competence in certified “Fire & Smoke” range – important part of complete offering to strengthen competitiveness  Strong customer relations and distribution in Southern Europe, as well as other European and new markets 19

lindab | we simplify construction Latest Reported Financials Q3 14

lindab | we simplify construction Lindab Group – Q3 2014 Highlights An important quarter showing the way  Sales increased by 9% compared to last year, or 5% when adjusted for currency and structure ─ Products & Solutions: 11% (6% adjusted) ─ Building Systems: -1% (-3% adjusted)  EBIT amounted to SEK 210 m in Q3 compared to SEK 195 m last year (excluding one-off items) ─ EBIT margin amounted to 11.0% (11.1) ─ Product & Solutions: 10.7% (9.7) ─ Building Systems: 12.6% (19.6)  Cash flow from operations amounted to SEK 153 m compared to SEK 136 m in Q3 2013 21