First quarter 2015 Presentation May 8, 2015 Strictly private and - - PowerPoint PPT Presentation

Strictly private and confidential

First quarter 2015 Presentation

May 8, 2015

Strictly private and confidential 6,2 12,9 10,7 16,7 113,4% 86,7% 112,0% 82,2% 0% 25% 50% 75% 100% 125% 4 8 12 16 20 2011 2012 2013 2014

Troax Satech Cash conversion

• Troax is the global market leader of indoor perimeters

protection (“mesh panel solutions”)

• Relative market share is ~2.5x larger than #2 player
• Local presence in 31 countries
• Troax had a sales CAGR 2011-2014PF of 14.5% and an
• rganic sales CAGR 2011-2014 of 8.1%
• Troax had a adj. EBITA CAGR 2011-2014PF of 39.2% and an
• rganic adj. EBITA CAGR 2011-2014 of 29.4%
• Strong position in the value chain and low supplier and

customer dependency

• 36% of total employees work within sales

Troax in brief

Financial development, 2011 – 2014PF Overview

Sales by end-market (2014PF) Sales by region (2014PF) Product offering

Machinery and robotics protection Warehouse protection and separation Residential and commercial safe storage solutions

A&R MHL PP

EUR million EUR million

SALES AND ADJ. EBITA MARGIN

• ADJ. EBITA AND CASH CONVERSION2

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Mainland Europe 58% Nordics 19% UK 17% New markets 6% Automation & Robotics 54% Material Handling & Logistics 30% Property Protection 16% 61 72 70 91 10,2% 18,0% 15,2% 18,4% 0% 5% 10% 15% 20% 25% 20 40 60 80 100 2011 2012 2013 2014PF Troax Satech

• Adj. EBITA margin

2

Strictly private and confidential

Sales development

3

60 years of growth provides a solid foundation for future success

EUR million

Source: Company information Note: Yearly figures are based on Troax financials and 2014 PF figures are proforma

Important events

The four Axelsson brothers started the Company Acquisition of Satech, #1 in Italy Certified according to ISO 9001 Certified according to ISO 14001 Change of product focus from diversified to a more focused product range New market oriented management team and increased focus on the growing machine protection market. Organizational modifications carried out International expansion accelerated. Revenue: EUR 72 million

• Adj. EBITA margin: 18%

Company acquired by FSN Capital III and Management Company acquired by Accent Equity and Management Acquisition of

• C. Lee

Manufacturing Ltd, UK International expansion initiated

2010 2013 1955 1991 1972 1995 1998 2003

Troax' owner Gnosjö- Gruppen AB became a wholly-owned subsidiary of Gunnebo AB, a public company listed on Stockholm stock exchange

2008 2012 2014

Sales CAGR 1985–2014 of 9.4%

7 8 9 11 14 18 22 25 25 29 37 40 42 45 48 51 56 53 48 55 58 58 65 66 48 52 61 72 70 85 91 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 PF Sales

Streamlining product portfolio Global financial crisis

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One common product… …is combined with smart accessories…

Proven concept based on modularity

Source: Company information

…to create tailored solutions for Troax' three core market segments

METAL-BASED MESH PANELS AUTOMATION AND ROBOTICS MATERIAL HANDLING AND LOGISTICS PROPERTY PROTECTION Machinery and robotics protection Warehouse protection and separation Residential and commercial safe storage solutions LARGE PORTFOLIO OF SMART ACCESSORIES Angle bracket Snapper Safe lock

• Various sizes
• Durable and solid against

impact

• Lightweight and easy to

install

• Smooth edges – to prevent

injuries

• Best-in-test products

HIGH QUALITY PRODUCTS

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20% 20% 24%

Automation & Robotics Material Handling & Logistics Property Protection 5

Source: Company information and various market reports and analyses by leading strategy and financial consulting firms 1) Based on market analysis conducted in 2012 2) Global market includes addressable markets in Asia, Europe and the US

Troax is the clear market leader in a fragmented market

Attractive and fragmented market1

350 100 116 32 26 38 22 108

1 1

 Troax is ~2.5x larger than #2 player  50% of the market is held by local blacksmiths  Troax is the largest player in the fragmented mesh panel market

Troax’ main markets Troax' presence Market size (EUR million)

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Global market share1,2 (EUR 850 million) European market share1 (EUR 400 million) European market leader in target end-markets1

1

Troax’ market position

57

Troax ~ 10% Axelent ~ 4% Other smaller identified competitors ~ 36% Blacksmiths ~ 50% Troax ~ 20% Axelent ~ 8% Other smaller identified competitors ~ 21% Blacksmiths ~ 50%

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EUROPEAN METAL BASED MESH PANEL MARKET

A&R  55% OF MARKET 2013 MHL  31% OF MARKET 2013 PP  14% OF MARKET 2013

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Strong underlying structural growth in Troax’ addressable market

Market development and segmentation1

Source: Company information and various market reports and analyses by leading strategy and financial consulting firms 1) Based on market analysis conducted in 2012

EUR million Germany 39% Italy 15% France 6% Spain 5% Nordics 5% UK 3% Rest of Europe 27% Germany 16% France 16% Spain 12% UK 12% Nordics 7% Italy 2% Rest of Europe 35% Nordics 71% Germany 14% Italy 4% UK 2% Rest of Europe 9% CAGR 03–13e 4.1% 0.3% 1.8% 7.2% CAGR 13e–18e 5.6% 2.3% 3.5% 7.5% 271 294 309 334 378 400 280 330 396 406 534 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013e 2018e Automation & Robotics Material Handling & Logistics Property Protection

Strictly private and confidential

“Troax’ target is to pay approximately 50 percent of its net profit in dividends. The dividend proposal shall take into account Troax’ long-term development potential, it’s financial position and its investment needs.”

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Source: Company information 1) Based on Troax 2014 financials

Financial targets

“Troax’ objective is to exceed the growth in the Company’s current markets through organic growth, as well as selective acquisitions” “Troax’ target is to have an operating margin in excess of 20%” “Net debt in relation to EBITDA, excluding temporary deviations, shall not exceed 2.5 times.” Sales growth Profitability Capital structure Dividend policy Organic: 9% M&A: 121% 18.4% 2.9x

• >Market

growth Sales growth 20% Adjusted EBITA margin <2.5x Net debt to EBITDA 50% Pay-out ratio Actuals 2014PF Financial targets

Strictly private and confidential

• Positive trend from 2014 continued
• Organic sales increase 15 percent
• All regions increased
• Strong profit development
• volume increase
• capacity utilization
• Integration of Satech according to plan
• Troax was listed on NASDAQ Stockholm,

end March

Summary Q1 2015

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Financial highlights, Group

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Regional Development Order Intake and Sales

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• Good start in the first quarter
• Growth in all regions
• Market shares increase
• Good capacity utilization and volumes drive profitability

Conclusion

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