Makes it easier to be professional Q3 2018 report presentation October 26, 2018 1
Q3: Strong sales and strengthened positions Sales Adj. EBITA Sales up by 15% Adj. EBITA up by 9% to 7 458 MSEK to 650 MSEK • Successful initiatives • Strong market • Strong market • Diluting effect of acquisitions • Positive effect from • Continued high pace of acquisitions sales initiatives Strong organic Adj. EBITA margin growth at 7% 8,7% (9,2) 2
Q3: Strong sales growth, primarily driven by organic growth Sales bridge – Growth in MSEK and % Sales growth / organic +15% +15% / +7% +5% +7% 0% +3% 7 458 7 500 192 1 446 7 000 6 822 Sweden 330 +11% / +6% 6 492 6 500 MSEK MSEK • Underlying market conditions MSEK 0 remained strong Q3 2017 Acquisitions Q3 2017 Pf Organic Trading days Currency Q3 2018 • Construction still strong Sales bridge per market segment – Growth in MSEK and % despite declining number of Norway housing starts +15% +24% / +7% • Strong infrastructure and +7% +5% +3% 0% 0% industry 7 458 7 500 6 23 • Growth positively affected by 166 MSEK acquisitions and currency 300 7 000 Finland 470 +20% / +8% MSEK MSEK 6 492 6 500 0 Q3 2017 Sweden Norway Finland Denmark Other Q3 2018 3
Q3: Acquisitions and initiatives affect the margin Sales, EBITA and Adj. EBITA margin Adj. EBITA margin 10 000 16 8 056 +8.7% (9.2) 14 7 606 7 458 8 000 7 161 6 902 6 818 6 568 6 492 6 344 12 5 880 5 480 6 000 9.3 9.3 9.2 9.2 9.1 10 8.8 8.7 8.4 8.4 8.1 4 000 7.7 7.3 8 Gross margin at 26.7% (27.0) 2 000 MSEK 6 Sweden • Stronger growth pace in customer 709 560 538 563 530 558 597 554 678 620 397 0 4 +12.1% (12.2) segments with lower gross margin 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 EBITA impacted by restructuring costs of Adjusted EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % MSEK 30 related to Swedish acquisition Adj. EBITA bridge – Growth in MSEK and % Norway Adj. EBITA margin weaker +9% +3.2% (5.2) +44% -4% -31% • Dilution from acquisitions 1 000 23 • Continued high pace of sales 800 185 261 650 initiatives 597 600 • High activity level Finland 400 +5.4% (5.6) 200 Cost-saving measures intensified with 0 expected savings of MSEK 160 in 2019 Q3 2017 Net sales effect Gross margin effect Operating expenses Q3 2018 4
First nine months: Strong sales growth Sales bridge – Growth in MSEK and % Total sales growth / organic +14% +14% / 7% +5% +7% +2% 0% 23 000 22 675 339 26 22 000 1 540 20 823 21 000 Sweden 944 19 879 • Strong organic sales growth +13% / 8% 20 000 MSEK MSEK • High contribution from acquisitions 0 MSEK YTD 2017 Acquisitions YTD 2017 Pf Organic Trading days Currency YTD 2018 • Underlying market conditions still strong Sales bridge per market segment – Growth in MSEK and % Norway • Construction activity still high, despite declining +17% / 6% +14% number of housing starts +8% +3% +2% 0% 0% • Industry remained strong 22 675 23 000 54 • Good development in 51 367 infrastructure 22 000 661 MSEK Finland 21 000 1 662 +16% / 6% 19 879 20 000 MSEK MSEK 0 YTD 2017 Sweden Norway Finland Denmark Other YTD 2018 5
First nine months: Adj. EBITA up by 11% driven by strong sales Sales, EBITA and Adj. EBITA margin Adj. EBITA margin 25 000 16 22 675 8.3% (8.5) 14 19 879 20 000 17 704 12 16 550 8.5 8.5 10 15 000 8.3 8.0 8 10 000 6 4 5 000 Sweden Sweden 2 1 852 1 496 1 685 1 291 0 0 +14% 11.7% (12.1) YTD 2015 YTD 2016 YTD 2017 YTD 2018 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % • Strong net sales effect Adj. EBITA bridge – Growth in MSEK and % Norway Norway • Somewhat weaker gross margin +15% • Increased operating expenses due 2.9% (3.3) +11% to market initiatives, acquisitions +44% -4% -30% and volumes 2 500 62 507 1 882 754 2 000 1 697 1 500 Finland Finland 1 000 +7% 500 3.6% (3.9) 0 YTD 2017 Net sales effect Gross margin effect Operating expenses YTD 2018 6
YTD - Acquisitions ~306 MSEK acquired annual sales In total ~886 MSEK in 2018 High acquisition activity in combination with organic ~ 545 MSEK acquired annual sales initiatives Of which 45 MSEK is expected to be closed in November bodes well for future profitable growth ~35 MSEK acquired annual sales Estimated net sales (RTM) at acquisition date 7
Sweden – Highlights Q3 Sales, EBITA and EBITA margin Continued high market activity in all segments 6 000 22 • Growth 11%, of which 6% organic 5 180 5 140 20 4 758 5 000 4 672 4 501 4 484 18 4 261 4 202 • Remained strong demand in construction and industry 4 102 3 699 4 000 16 3 572 • Strengthened positions 12.7 12.7 12.7 14 12.2 12.2 12.1 12.0 12.0 3 000 11.7 11.5 10.9 12 2 000 10 8 Adj. EBITA up 10% 1 000 6 • Adj. EBITA margin at 12.1% (12.2) 651 605 522 573 510 537 515 545 535 451 391 0 4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 • Strong organic growth with higher sales growth in segments with lower gross margins Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % • Increased cost level attributable to acquisitions, Sales bridge – Growth in MSEK and % growth initiatives and a high level of activity • Revaluation of additional purchase consideration +11% +6% +5% +0% of Prevex of MSEK 16 4 672 4 700 0 • ViaCon restructuring costs of MSEK 30* 4 600 204 4 500 4 400 Further efficiency measures 266 4 300 • Additional MSEK 60 in savings expected in 2019 4 202 100 2017Q3 Organic Acquisitions Trading days 2018Q3 8 *ViaCon restructuring costs of MSEK 30 not incl. in Adj. EBITA
Norway – Highlights Q3 Sales, EBITA and EBITA margin Strong growth and strengthened market shares • Growth 24%, of which 7% organic 1 800 10 1 674 1 555 9 1 600 • Favourable market conditions and successful initiatives 1 390 1 393 1 389 1 375 8 1 312 1 400 (electrical, industry and construction) 1 267 1 254 1 185 7 1 200 1 082 6 5.2 • Acquisitions and currency contributed positively 5.1 1 000 5 800 3.7 3.6 • Two acquisitions with combined annual sales of MSEK 90 3.4 4 3.2 2.8 600 3 1.8 • Bygg & Industrisalg 400 2 1.2 2.0 2.0 200 1 • Øglænd System’s sprinkler operations 53 51 65 48 60 50 0 13 25 39 26 25 0 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 EBITA margin at 3.2% (5.2) Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % • Sales growth strong, with highest growth in low margin segments Sales bridge – Growth in MSEK and % • High activity level led to higher cost (to safeguard service level) +24% • Currency had a positive impact +7% +9% +0% +8% 1 600 1 555 Cost-saving measures are intensified 95 1 500 0 • Annual savings of MSEK 60 are expected in 2019. Restructuring 106 1 400 costs of MSEK 35 in Q4 100 1 300 1 254 100 2017Q3 Organic Acquisitions Trading days Currency 2018Q3 9
Finland – Highlights Q3 Sales, EBITA and EBITA margin 979 1 000 10 937 848 9 824 813 812 803 787 789 800 8 727 651 7 5.7 5.6 5.4 600 6 Strong overall growth at 20% 4.4 4.3 5 4.0 • 8% organic growth and strengthened positions 400 3.2 4 3.1 3 2.0 1.9 Strongest growth achieved to customers in climate- and • 200 2 facility management, installation and construction 1 1.5 45 45 53 34 37 30 10 25 14 21 16 0 0 • Kahipa Oy acquired with ~35 MSEK in annual sales 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Adj. EBITA up 18% to MSEK 53 Sales bridge – Growth in MSEK and % • Driven by increased sales and currency • The gross margin was somewhat lower +20% • Costs as a proportion of sales decreased +8% +3% +0% +10% 1 000 979 • Adj. EBITA margin of 5.4% (5.6) 950 79 900 0 21 850 67 812 150 2017Q3 Organic Acquisitions Trading days Currency 2018Q3 10
Denmark and Other - Highlights Q3 Sales, EBITA and EBITA margin Denmark • Sales up 26%, of which 16% organic 140 25 122 • Strong refrigeration business driven by 112 120 101 20 100 98 96 95 93 16.0 100 89 higher prices for refrigerants 88 88 12.9 15 17.1 80 11.6 11.3 10.3 • DIY business growing 9.4 8.8 60 7.9 12.5 10 7.3 40 • EBITA margin strong at 17.1% (12.5) 5 20 20 19 13 10 10 11 11 7 9 8 6 0 0 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Sales, EBITA and EBITA margin Other • Total sales growth of 4% 143 141 150 6.0 135 • Overall good market conditions 126 120 115 5.0 110 109 3.7 • Strong organic growth in Russia and Poland 95 93 100 3.4 4.0 3.3 82 4.1 3.0 • Adj. EBITA margin at 3.3% (4.1) 50 2.0 2.5 2.3 1.1 1.1 1.9 1.8 1.0 1.5 6 5 5 2 4 2 3 3 2 0 1 1 0.0 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % 11
Financials 12
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