Lindab Group We simplify construction 1 lindab | we simplify - - PowerPoint PPT Presentation

lindab | we simplify construction

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Lindab Group

“We simplify construction”

lindab | we simplify construction

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One Lindab

Sales, markets Sales, segments

CEE/CIS

21%

Western Europe

30%

Nordic region

46%

Other markets

3%

Building Systems

13%

Products & Solutions

87%

Simplifying is our passion, ultimate comfort is our vision

Lindab employees Architect Contractor/Installer Developer

lindab | we simplify construction

Contractor/Installer Lindab employees

1 2 14

Rainwater and Building products

• 1. Lindab Rainline
• 2. Lindab Seamline
• 3. Lindab Topline
• 4. Lindab IT Solutions

Building solutions

• 5. Lindab Construline
• 6. Lindab Facade Casette
• 4. Lindab IT Solutions

Air Movement

• 7. Air Handling Unit
• 8. Fans

Indoor climate solutions

• 9. Lindab Pascal
• 10. Lindab Airy
• 11. Lindab Solus
• 4. Lindab IT Solutions

Ventilation products

• 12. Lindab ADS
• 13. Lindab Indomo
• 4. Lindab IT Solutions

Fire and Smoke

• 14. Lindab Smoke control system
• 14. Lindab Fire dampers

5 7 11 9 10 6 3 13 8 12 4 1

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Sales Region North Europe Joakim Lönnberg Sales Region West Europe Mette Bröndum Sales Region Mid Europe Pascal Gelugne Sales Region CEE, Russia and New Markets Rickard Lindqvist Building Systems Kenneth Johnsson Strategy execution and governance CEO Anders Berg Rainwater and Building Products Ioan Farcas Ventilation Products Torbjörn Bruzelius Indoor Climate Solutions Niels Christensen Air Movement Jan Hesel Fire and Smoke Eros Peronato Strategic Product and Marketing Management Bengt Andersson Building Solutions Johan Andersson Executive Management Team Operational Management Team Division, Product Management and Country Management

General management, group Market and product, group Sales regions Building Systems, Astron Group structure

Business Excellence and IT / IS Christian Svensson Operations Magnus Grönborg Finance, Controlling, IR / Communication Acting CFO Linda Kjellgren Legal, HR and M&A Fredrik Liedholm Astron Group board

Driving our strategy

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A long and successful history …

The foundation of the company in Grevie, Sweden Establishment in CEE IPO, OMX Nasdaq Stockholm The extended Yaroslavl facility opens its doors New CEO. ONE Lindab replaces 3 Business Areas Focus on complete ventilation solutions

2013 2015 2010 1990 2006 1959

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… based on a strong foundation

Customer success Down-to-earth Neatness and order

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Our business

Environmental impact of products & services Customer health & safety Product content declarations Financial stability Supplier requirements

Employees

Health & safety Diversity & equality

Environment

Materials used in production Greenhouse gas emissions Waste Energy consumption

Society

Fair competition Anti-corruption

… with key responsibilities

Our most important sustainability aspects

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… and always profitable

Sales 12m

(MSEK)

EBIT 12m

(MSEK)

EBIT Sales

2000 1990 1980 1959 2014 2010 2005

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The largest shareholders

10.3 % CREADES AB 9.1 % Lannebo fonder 6.4 % HANDELSBANKEN FONDER AB RE JPMEL 6.0 % Swedbank Robur fonder 6.2 % Skandia

31 March 2015

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2014

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Sales, SEK m EBIT, SEK m Cash Flow, SEK m

7,003

(6,523)

497

(498)

278

(620)

+7 % 0 % –55 %

Difference vs last year

Growth in core business

Large investment in Karlovarska property Unrest in Russian market – Building Systems heavily affected Increased sales activities and market share gain

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New Strategy 5–8 %

10 % 2.5

Annual growth Operating margin Net debt/EBITDA

Important steps towards a leading position

New Financial Targets Extended Footprint

4 acquisitions 8 new branches in 6 countries

NovoClima Klimasystem A/S

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Building Systems

A combination of growth oriented and project related business

Largest customer/project: 3–10 % Share of sales to developed markets: 48 %

(Western Europe, CEE and US)

Share of renovation: 0 % Largest customer/project: 2 % Share of sales to developed markets: 98 %

(Western Europe, CEE and US)

Share of renovation: 45 %

Products & Solutions

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6,750 6,250 6,000

600

550 500 300

7,250

7,000 6,500 450 400 350 250 EBIT 12m (MSEK) Sales 12m (MSEK) Sales 0% EBIT +12% 497 460 347 498 407 EBIT 12m Sales 12m

Note: EBIT excl one-off items

2010 2011 2012 2013

• EBIT L12M SEK 497 m, EBIT margin 7.1%

2014

2012–2014: flat sales; increased efficiency

lindab | we simplify construction

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Two different stories…

400 300 5,750 6,000 6,250 5,000 5,250 5,500 500 374 Q4 2012 Sales +11% EBIT +111 MSEK Q4 2013 360 398 Q4 2011 413 Q4 2010 Q4 2014 471 MSEK EBIT 12m Sales 12m 52 159 100 38 18

• 100

100 200 700 500 900 1,100 Q4 2013 Q4 2011 Q4 2010 Q4 2014 MSEK Q4 2012 Sales

• 11%

EBIT

• 107 MSEK

EBIT 12m Sales 12m

Products & Solutions Building Systems

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Lindab Life

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The best work environment in the industry

LTIF specifies the number of accidents per million hours worked.

17.1

Jan 2012

14.9

Jan 2013

12.3

Jan 2014

9.5

Jan 2015

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Our market

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20 000 customers in 60 countries 46% 30% 21% 3%

USA

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29

9 7

22

2

15

1 8 7 3 3 1 3 1 2 1 2 1 1 1 2 6

Number of knowledge and distribution centers Central production Regional production

LINDAB DISTRIBUTION:

Always close, available and knowledgeable

LINDAB PRODUCTION:

Always ready, flexible and reliable

Footprint for customer success

USA

1 2

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Our top 10 markets*

• 1. Sweden
• 2. Denmark
• 3. UK
• 4. Germany
• 5. Norway
• 6. France
• 7. Russian
• 8. Poland
• 9. Finland
• 10. Switzerland

*2014

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Our products and solutions

lindab | we simplify construction

22 Ventilation products Rainwater and Building products Indoor climate solutions Complete steel building systems Building solutions

Broad offering of products and solutions

Air movement Fire and Smoke

Share of Group sales

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Our Routes to Market

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Many and close customer relations

Added product range Residential Industrial Commercial Marine Public sector

Our production facilities Our e-Business, software solutions and distribution centers

Core products Optimized logistics

Our branches and sales offices

CUSTOMERS THE INFLUENCERS END USERS

Project support Research facilities and knowledge Solutions and systems

STRENGTHEN DISTRIBUTION DEVELOP SOLUTIONS

Building specifiers and consultants Authorities Property managers & property owners Installers OEM Contractors Distributors

ALWAYS CLOSE, ALWAYS AVAILABLE

R&D facilities

40% 25% 10% 25%

Note: % in routes to market refer to Products & Solutions and 15 main markets

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Our branch strategy – quick, close and complete

”Easy access to the branch with competent staff, here I find all the quality products that I need for my work”

New branches Showroom New store concept Broad range… Knowledge hub New technology Good locations …available from stock

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Working with the influencers

”Unique project planning software makes it easy to visualise and plan the project”

Solutions for End users Building Project Tools Ventilation Project Tools

Lindab Revit Tools DIMsilencer Lindab ADT Tools Structural Designer LindQST CADvent Residential Solutions Industrial Solutions Commercial Solutions

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Our Strategy

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28 Business Areas created Dramatic decline in sales Sales acceleration with increased demand for steel roofs, rain water systems and air ducts Cost-saving programmes

2000 2015

New flat, matrix

• rganisation

World Economic crisis Clear global trends (2006–2007) “Super cycle peak” Strengthen distribution and develop solutions Back to Basics – Into the Future Launch of Gold Strategy Fittings, distribution and rainline growth main themes Astron acquired (Building Systems) Butler Europe acquired (Building Systems) CCL Veloduct acquired

2010 2005 Profitable every year since 1959

The journey towards becoming an integrated company

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Environmental aspects

are drivers in all trends Intense pressure for

Innovations

Global economy patterns Growing population and urbanization Innovation in materials and processes Intelligent buildings Environment, legislation and energy saving

Five clear trends in the world today impacting Lindabs business

We see global drivers for growth

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Simplifying is

• ur passion,

ultimate comfort is our vision

Our Basics

People Products Production and Processes Sales and Distributions

Supported by Strategic Intiatives

Building on our strengths

Developing a strategy to reach

• ur wanted position

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5-8%

Annual growth based on

• rganic growth and

growth from acquisitions

• ver a business cycle

10%

Operating margin over a business cycle

2.5

The average Net debt / EBITDA not to exceed 2.5 in the long term

30%

The dividend target is 30%

• f the company’s profit after

tax considering

• pportunities for strategic

acquisitions, the financial position of the company and long term need for financing

The targets stretch over a business cycle

Three financial targets supported by the new strategy

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Leveraging local stars to global standards. Optimising the flow from purchase to delivery. Creating offers of complete ventilation solutions. Finding new ways to increase customer value. Having the best team for our business.

Our formula for success

Five clear strategic focus areas

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• To develop marketing and sales competence within the Group
• To strengthen Lindab’s position in local markets by utilising

the entire offering

• To further reinforce strategic product and marketing

development

Lindab shall be the obvious choice for customers in the various market segments and in order to grow successfully, needs to become even better at adapting its offering to each individual market, as well as strengthening the brand and making selective acquisitions.

3 important initiatives for 2015

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• To improve systems for inventory control and thereby

increase availability for customers

• To use Lindab's combined purchasing power and establish

a strong network of buyers within the Group

• To become better at assessing supply and demand – to

produce the right quantities of each product

In a market undergoing rapid transformation, customers are increasingly demanding greater simplification, speed, flexibility and reliability. Lindab is meeting these demands while strengthening the supply chain process.

3 important initiatives for 2015

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• To develop the offering of complete ventilation solutions for

homes, offices and hospitals

• To develop expertise and technical solutions in VAV

systems and Fire and Smoke

• To strengthen communications about Lindab as a turnkey

supplier

The new strategy has a clear business goal. The aim is for Lindab to be the leading European company offering complete ventilation solutions for all customer categories including end-users, property owners, regulators, installers and contractors in selected segments.

3 important initiatives for 2015

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• To implement workshops on innovation within the Group
• To introduce processes for handling the flow from concept

to innovation

• To create Innovation Hotspots – places where good ideas

as well as problems can be raised

To take advantage of strong global trends while meeting increasingly tough competition, Lindab needs to promote the power of innovation throughout the Group and develop a culture of innovation that makes Lindab the best in the industry at understanding customers' future needs.

3 important initiatives for 2015

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• To develop the quality and content of employee appraisals
• To develop a Group-wide HR system that will closely

examine skills and streamline processes

• To implement Group-wide training programmes for

leadership development and Lean Management

New expertise is needed to develop a variety of skills and meet the challenges of the market. The successful development of employees is a key issue for Lindab to be able to implement strategies in all focus areas and achieve its goals.

3 important initiatives for 2015

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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

With the strategy we also acknowledge the potential for acquisitions

Primarily in two areas

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From selling what we produce … … to capturing trends and fulfilling customers’ needs

Business Area driven sales and production units

New flat matrix

• rganisation

Back to Basics Into the Future

New strategy

New focus same basics

Transformation into a fully integrated company

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Kristian Ackeby CFO Fredrik Liedholm General Counsel and HR Director Anders Berg President and CEO The operational management team for the Group comprising the Executive management plus six senior executives. Bengt Andersson Product & Marketing Director

Executive management

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Summary

We provide our customers with a broad offering of

leading, high quality solutions, our

extensive distribution network and many, close

customer relations giving us the opportunity to take a

leading position within complete Ventilation solutions.

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Thank You!