Q4 2018 Presentation 8 February 2019 Fourth quarter Q4 2018 In - - PowerPoint PPT Presentation

8 February 2019

Q4 2018 Presentation

Fourth quarter

Q4 2018 In Brief

• Continued strong sales growth: 17%
• 10% acquired, 4% organic and 3% currency
• Market demand flat relative Q3, but a little weaker than strong Q4 2018…
• …but: increased market share, good order intake, and strong start to 19Q1
• Acquisitions continue to contribute well
• Operating profit (EBITA) improved by +14%
• Low gross margin, but also lower opex percentage
• Segment International very strong; weak gross margin in Sweden
• Overall strong EBITA growth, but slightly lower margin
• Acquisition of Rudhäll Industri in October
• Board proposes raised dividend to SEK 2.50 SEK per share

2

EBITA Q4 2017 72 Currencies +3 Volume +6 Price/cost/mix/other

• 6

Acquisitions +6 EBITA Q4 2018 82

3

Financial highlights, Group

Fourth quarter

Quarter 4

Δ

Jan-Dec

Δ

SEK million 2018 2017

%

2018 2017

%

Order intake 982 863

14

3,798 3,256

17

Net sales 966 828

17

3,786 3,201

18

Gross profit 271 238

14

1,088 917

19 28.1% 28.7% 28.7% 28.6%

Operating expenses

• 189
• 166

14

• 721
• 606

19 19.6% 20.0% 19.0% 18.9%

Operating profit (EBITA) 82 72

14

367 311

18 8.5% 8.7% 9.7% 9.7%

Financial development, Group

• 10
• 5

5 10 15 20 25

Percent

Quarterly Net Sales growth

Organic growth Acquisitions and currency translation

50 100 150 200 250 300 350 400 500 1000 1500 2000 2500 3000 3500 4000

LTM Adj EBITA, SEK million LTM Net Sales, SEK millions Net Sales EBITA 4

Fourth quarter

Fourth quarter

Segment International

• Net sales grew by 15%, whereof 5% organic and 5% from acquisitions
• Higher market shares and somewhat higher demand
• Best-ever gross margin:

exchange rates and price increases

• Very strong end to a good year, reaching all-time high EBITA

EBITA Q4 2017 54 Currencies +6 Volume +4 Price/cost/mix/other

• 2

Acquisition +6 EBITA Q4 2018 68

5 Quarter 4

Δ

Jan-Dec

Δ

SEK million 2018 2017

%

2018 2017

%

Order intake 668 568

18

2,648 2,172

22

Net sales 644 560

15

2,615 2,144

22

Gross profit 197 164

20

788 623

26 30.6% 29.3% 30.1% 29.1%

Operating expenses

• 129
• 110

16

• 498
• 420

19 20.0% 19.6% 19.1% 19.6%

Operating profit (EBITA) 68 54

28

290 203

43 10.6% 9.7% 11.1% 9.5%

Fourth quarter

Financial development, International

50 100 150 200 250 300 500 1000 1500 2000 2500 3000

LTM Adj EBITA, SEK million LTM Net Sales, SEK millions

Net Sales EBITA

• 10
• 5

5 10 15 20 25 30 35

Percent

Quarterly Net Sales growth

Organic growth Acquisitions and currency translation 6

• Net sales up 20%, whereof 19% due to the acquisition of Rudhäll
• Gross margin down YoY due to purchasing prices, a weak SEK and a

lower gross margin in Rudhäll. However, no organic change since Q3.

• Overall result unsatisfactory.

Strong focus on cost savings and efficiency in 2019.

EBITA Q4 2017

35

Currencies

• 3

Volume

+2

Price/cost/mix/other

• 9

Acquisition

+3

EBITA Q4 2018

28

Segment Sweden

7

Fourth quarter

Quarter 4

Δ

Jan-Dec

Δ

SEK million 2018 2017

%

2018 2017

%

Order intake 314 295

6

1,149 1,089

6

Net sales 322 268

20

1,172 1,057

11

Gross profit 81 79

2

323 312

4 25.1% 29.4% 27.6% 29.5%

Operating expenses

• 53
• 44

19

• 198
• 173

14 16.5% 16.4% 16.7% 16.4%

Operating profit (EBITA) 28 35

• 19

126 139

• 10

8.7% 13.1% 10.7% 13.2%

Fourth quarter

Financial development, Sweden

• 15
• 10
• 5

5 10 15 20 25

Percent

Quarterly Net Sales growth

Organic growth Currency translation effects and acquisition

50 100 150 200 500 1000 1500 2000 LTM Adj EBITA, SEK million

LTM Net Sales, SEK millions

Net Sales EBITA

8

Fourth quarter

Acquisitions since 2014

9

Acquisition of Rudhäll Industri AB in Sweden and China in October

• Strengthens our offering in special products and sourcing capabilities in China
• Sales 2018 of SEK 210 million with an operating margin of 9%
• Price: SEK 100 million on EV basis

EBITA Bridge

10 Group International Sweden Other EBITA in Q4 2017 72 54 35

• 17

Currency +3 +6

• 3

Volume +6 +4 +2 Price/cost/mix/other

• 6
• 2
• 9

+5 Acquisitions +6 +6 +3

• 3

EBITA in Q4 2018 82 68 28

• 15

Group International Sweden Other EBITA in FY 2017 311 203 139

• 31

Currency +18 +27

• 9

Volume +66 +47 +19 Price/cost/mix/other

• 60
• 19
• 27
• 14

Acquisitions +31 +31 +3

• 3

EBITA in FY 2018 367 290 126

• 49

Fourth quarter Full Year

Long-term profitable growth

2018

0% 10% 20% 30% 40% 50% 60% 70% 80% 1 2 3 4 5 6 7 8

• 10%
• 5%

0% 5% 10% 15% 20% 0% 2% 4% 6% 8% 10% 12% 14%

Growth EBITA margin Earnings, Dividend

EPS, SEK DPS, SEK DPS/EPS, % Target DPS/ EPS Target EBITA% 5-year average Target Growth % 5-year average 12 13 14 15 16 17 18 12 13 14 15 16 17 18 13 14 15 16 17 18 12

Fourth quarter

Summary and Outlook

12

2018 in summary

• Continued execution of strategy, and significant investments in Leadership
• Strong growth, driven by acquisitions, increased market share, and good demand
• Stable margins
• Price increases have offset cost increases
• Investment in Leadership paid for by leverage on organic growth
• Sales, operating profit and net profit all all-time-high, by a wide margin

Outlook

• No signs of sharp drop in demand, but customers cautious about inventory, ...
• ...leading to delayed orders over year-end—strong start January 2019
• Raw materials prices leveled off end 2018—favorable for savings this year
• Focus 2019
• Short-term: purchasing savings and cash flow
• Strategy unchanged: Leadership 2020

13

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