Makes it easier to be professional Q2 2018 report presentation July 19, 2018 1
Q2: High demand, successful initiatives and strong results EBITA margin 8.4% (8.2) Strong organic growth at 8% EBITA up by 21% Sales up by 18% to 678 MSEK to 8 056 MSEK • Diluting effect of acquisitions • Strong market • Strong market • Successful initiatives & positive • Continued high pace effect from acquisitions of sales initiatives • “Positive” Easter effect 2
Q2: Strong sales growth, primarily driven by organic growth Sales bridge – Growth in MSEK and % Sales growth / organic +18% +18% / +8% 8 500 +5% +8% +2% +2% 8 056 8 000 136 161 7 500 602 7 157 Sweden 7 000 339 6 818 +16% / +8% • Underlying market conditions MSEK MSEK 0 remained strong Q2 2017 Acquisitions Q1 2017 Pf Organic Trading days Currency Q2 2018 MSEK • Construction still strong, however, declining number Sales bridge per market segment – Growth in MSEK and % of housing starts Norway • Renovation growth +18% +28% / +9% accelerating 8 500 +10% +5% +2% 0% 0% • Industry strong 8 056 34 22 8 000 124 • Growth positively affected by 362 MSEK 7 500 acquisitions, working days and Finland 695 currency 7 000 6 818 +15% / +5% MSEK MSEK 0 Q2 2017 Sweden Norway Finland Denmark Other Q2 2018 3
Q2: Profitability at high level Sales, EBITA and EBITA margin EBITA margin 10 000 16 +8.4% (8.2) 8 056 14 7 606 8 000 7 161 6 902 6 818 6 568 6 492 6 344 12 5 880 5 480 6 000 10 8.4 8.2 4 000 8 MSEK Sweden 2 000 6 560 563 558 597 709 554 678 397 538 530 0 4 +11.7% (12.0) 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 • Gross margin at 26.3% (26.8) • EBITA margin at 8.4% Adjusted EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % • Dilution from acquisitions EBITA bridge – Growth in MSEK and % Norway • Continued high pace of sales initiatives +21% +3.6% (2.0) +59% -7% -31% • Positive currency effect of 1 000 MSEK 5 40 800 171 678 331 558 600 Finland 400 +3.2% (2.6) 200 0 Q2 2017 Net sales effect Gross margin effect Operating expenses Q2 2018 4
H1: Strong sales growth – both organic and acquired Sales bridge – Growth in MSEK and % Total sales growth +14% +14% +5% +8% 0% +1% 15 500 15 217 147 26 15 000 1 097 14 500 13 998 Sweden 14 000 612 13 387 13 500 +14% • Strong sales growth MSEK MSEK 0 MSEK • Both organic and acquired YTD 2017 Acquisitions Q1 2017 Pf Organic Trading days Currency YTD 2018 • Underlying market conditions remained good Sales bridge per market segment – Growth in MSEK and % Norway • Construction still strong, +13% however, declining number +14% of housing starts +9% +3% +1% 0% 0% • Industry remained strong 15 500 15 217 48 28 201 15 000 • Stable development in 361 MSEK Finland infrastructure 14 500 14 000 1 192 +13% 13 387 13 500 MSEK MSEK 0 YTD 2017 Sweden Norway Finland Denmark Other Q2 2018 5
H1: EBITA up by 13%, driven by increased sales Sales, EBITA and EBITA margin EBITA margin 15 217 16 000 16 14 098 13 387 8.1% (8.1) 14 000 14 12 782 11 824 12 000 12 10 000 10 8.1 8.1 8 000 8 6 000 6 4 000 4 Sweden Sweden 2 000 2 1 306 1 231 957 1 101 1 088 +14% 0 0 11.6% (12.0) 2016H1 2016H2 2017H1 2017H2 2018H1 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % • Strong net sales effect EBITA bridge – Growth in MSEK and % Norway Norway • Stable gross margin +15% • Increased operating expenses due +13% 2.8% (2.4) 2 000 +45% -4% -28% to volume increase, acquisitions and market initiatives 40 1 500 310 1 231 493 1 088 1 000 Finland Finland 500 +7% 2.6% (2.3) 0 Q2 2017 Net sales effect Gross margin effect Operating expenses Q2 2018 6
YTD - Acquisitions ~306 MSEK acquired annual sales In total ~796 MSEK in 2018 High acquisition activity in combination with organic ~455 MSEK acquired annual sales initiatives bodes well for future profitable growth ~35 MSEK acquired annual sales Of which 35 MSEK closed in July Estimated net sales (RTM) at acquisition date 7
Sweden – Highlights Q2 Sales, EBITA and EBITA margin 6 000 16 Strong demand and continued high growth in all 5 180 5 140 product segments 4 758 5 000 14 4 501 4 484 4 261 4 202 4 102 11,7 • Strong development in all product segments 3 699 4 000 12 3 572 12,0 • Remained high demand in new construction 3 000 10 • Growth rate in renovation increasing 2 000 8 1 000 6 • Strong demand from industry customers 651 605 522 573 510 537 515 545 451 391 0 4 • Successful customer initiatives within SME, private label and 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 PPE • One acquisition within Tools & Supplies with ~30 MSEK in Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % annual sales: Bygg & Industripartner Sales bridge – Growth in MSEK and % +16% EBITA up 13% +8% +5% +2% 5 180 5 200 • Higher sales growth in segments with lower margins 86 5 000 • Acquisitions, growth initiatives and a high level of activity 216 impacted negatively 4 800 393 • EBITA margin at 11.7% (12.0%) 4 600 4 484 0 Q2 2017 Organic Acquisitions Trading days Q2 2018 8
Norway – Highlights Q2 Sales, EBITA and EBITA margin Strong growth and successful customer targeting • Sales up 28%, of which 9% organic - Two more trading days 1 800 8 1 674 and lack of Easter effect contributed 1 600 7 1 390 1 393 1 389 1 375 1 312 1 400 1 267 1 254 6 • Strong demand from industry 1 185 1 200 1 082 5 • Positive trend in construction 1 000 3.6 4 800 • Strong organic growth in Electrical 3 600 2 • The acquisition of Bekken & Strøm developed well 400 2.0 1 200 • One acquisition within Tools & Supplies with ~40 MSEK in 53 51 65 48 60 0 13 25 39 26 25 0 annual sales: Sentrum Motor og Verktøy 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % EBITA margin at 3.6% (2.0) Sales bridge – Growth in MSEK and % • Strong sales in segments with lower gross margin +28% • Two more trading days and lack of Easter effect had a +9% +9% +4% +5% significant positive impact of MSEK +14 1 674 1 700 66 • Positive effect from sale of property: MSEK +13 and positive 1 600 54 currency translation: MSEK +2 1 500 111 • Transaction costs of MSEK -3 related to acquisitions 1 400 131 1 312 100 Q2 2017 Organic Acquisitions Trading days Currency Q2 2018 9
Finland – Highlights Q2 Sales, EBITA and EBITA margin Good growth 1 000 10 937 • Sales up 15%, of which 5% organic 848 9 824 813 812 803 787 789 800 8 727 • Good overall market 651 7 600 6 • Strong growth for construction and industry 5 400 3.2 4 • Good demand for HVAC & P. and Tools & S. 3 Initiatives to strengthen position in fast growing regions • 200 2 2.6 1 • One acquisition signed within Tools & Supplies with ~35 45 45 34 37 30 10 25 14 21 16 0 0 MSEK in annual sales - Kahipa Oy 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Adj. EBITA down 9% Sales bridge – Growth in MSEK and % • Negative impact by increased sales level with weaker gross margin +15% Operating expenses increased, partly due to • +5% +2% +2% +7% 950 937 investments in branch network and sales initiatives 58 • EBITA margin at 3.2% (2.6) 900 14 • Adj. EBITA margin at 3.2% (4.0%) 12 850 40 813 150 Q2 2017 Organic Acquisitions Trading days Currency Q2 2018 10
Denmark and Other - Highlights Q2 Sales, EBITA and EBITA margin Denmark • Sales up 22%, of which 11% organic 140 25 122 120 • Strong refrigeration business driven by 101 20 100 98 96 95 93 16.0 100 89 88 88 higher prices for refrigerants 15 80 10.3 • DIY business stable 60 10 40 • +2 trading days vs. comparative period 5 20 20 13 10 10 11 11 • EBITA margin strong at 16.0% (10.3) 7 9 8 6 0 0 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Sales, EBITA and EBITA margin Other • Sales up 31%, of which 24% organic 143 150 5.0 135 126 • Strong organic growth in all regions 120 115 110 109 4.0 3.4 95 93 • Good market conditions 100 82 3.0 • Successful activities to increase sales 2.0 2.3 50 efficiency and broaden the product offering 1.0 • Adj. EBITA margin at 3.4% (2.3) 6 5 2 4 2 3 3 2 0 1 1 0.0 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % 11
Financials 12
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