rsstmma Sdiptech 20 juni, 2017 Strictly private and confidential - - PowerPoint PPT Presentation

Strictly private and confidential

Årsstämma Sdiptech

20 juni, 2017

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Electrical automation

Delivery example

Production of automation systems to control traffic lights

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Elevators

Delivery example

As subcontractor to global elevator company, installation of new elevators Reconstruction of Urban Escape in Stockholm

Shell completion

Delivery example

As a full service provider, delivery

• f inner walls

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Cooling

Delivery example

Design and installation

• f tailored cooling

rooms in retail stores

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Vibration monitoring

Delivery example

Provisioning of real time vibration monitoring of surrounding environ- ments during blasting works

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Ventilation healthcare

Delivery example

Provides advanced ventilation solutions to secure healthy working environments

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Power grid quality monitoring

Delivery example

Cloud based solution to monitor electrical quality in power grids

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Water metering

Delivery example

Renovation and calibration

• f water meters

At home Uninterrupted power supply

Delivery example

Installation and service of UPS to ensure 24/7 power availability in fiber network node stations

Waste water treatment

Delivery example

Installation and service of treatment plants outside central sewage systems

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Deeply niched services and products for urban infrastructures

Cooling Uninterrupted power supply Wastewater treatment Electrical automation Elevators (local) – Renovation and service Electrical power quality Gas evacuation Shell completion Vibration monitoring District heating and water metering Elevators (global) – New installations

Tailored installations Niched products and services

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Business clusters create synergies and added organic growth

Stockholm Zagreb, Croatia Local businesses, growing urban areas Supply centers, exporting businesses

Skilled elevator technicians

• Mobile teams with global coverage
• School and recruitment bases

Neutal, Austria (June 2017)

Own elevator product for export

• Compact elevator for existing property stocks
• Design, development and serial production

Elevator modernization and service

• Large customer base of property owners
• High price points

Vienna, Austria (June 2017)

Cross-selling of products and services Sdiptech’s growing elevator cluster

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Own methodology and internal team to ensure a large pipeline and a solid growth rate from acquisitions

Initial Contact: ~300 First meetings: 90 Bid discussions: 35 Letter of intent signed: 9 Acquisitions: 7

Volumes in Sdiptechs M&A process (Total volumes 2016)

• Entrepreneur-owned companies
• Low cyclicality  Predictable income

models

• EBIT margin >15%
• Net profit >10MSEK
• Operating in deep niches with high entry

barriers

• Low dependence on individual customers

and suppliers

• Acquisitions corresponding to a yearly

average of 90 MSEK EBITA

Acquisition criteria Acquisition – Financial goal

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Source: Company information

Sdiptechs model provides a strong growth rate and track record…

EBITA and EBITA margin Net sales

SEK million

18 34 111 132 150 2014 2015 2016 2017 Q1 LTM Run-rate 136 412 775 899 944

2014 2015 2016 2017 Q1 LTM Run-rate

132%

CAGR

140%

CAGR

SEK million

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Source: Company information

…and a clear strategy to continue a solid growth rate

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Capital injection to finance continued growth… Acquiring at attractive multiples… Supported by a growing underlying market and internal revenue synergies… To become a leading European actor within niche urban infrastructures

MSEK 500

Acquired through emission of B-shares

6.0x

EV/EBITA acquisition multiple

5-10%

Organic yearly growth 14% yearly organic growth 2011-2016

MSEK 600-800

EBITA in 2021 by continuing on set path

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AGENDA

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• 1. Company introduction
• 2. Financial overview
• 3. Note from main owner Ashkan Pouya

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Financial targets Metric Target

Organic EBITA growth Maintain a 5-10% EBITA

• rganic growth CAGR

5-10%

Capital structure Net debt / adjusted EBITDA (LTM) not to exceed 2.5 times

<2.5x

Source: Company information

Return on capital employed Return on capital employed to exceed 15 percent

>15%

Q1 2017 2016 2015 55% 14.4% 3.1 39% Neg. 13.6% 2.6 0.5 8.7%

Strictly private and confidential 305 364 417 447 498 507 191 221 257 312 374 409 496 585 675 759 872 916 2011 2012 2013 2014 2015 2016 Tailored installations Niched products and services 26

Underlying sales and EBITA development of Sdiptech’s acquired subsidiaries

Note: Figures show underlying development of acquired companies on non-consolidated basis. Wastewater treatment (acquired 2017) 2015 sales is included in 2016. Source: Company information

Sales development by subsidiaries

YoY growth 2011 2012 2013 2014 2015 2016 Tailored installations

• 19.1%

14.8% 7.1% 11.3% 1.8% Niched products and services

• 15.9%

16.2% 21.2% 19.9% 9.5% Total sales

• 17.9%

15.4% 12.5% 14.8% 5.1% SEK million

EBITA development by subsidiaries

32 45 61 54 48 51 43 55 64 79 101 97 75 100 125 133 149 149 2011 2012 2013 2014 2015 2016 Tailored installations Niched products and services EBITA margin 2011 2012 2013 2014 2015 2016 Tailored installations 10.4% 12.2% 14.5% 12.1% 9.5% 10.1% Niched products and services 22.6% 24.9% 24.9% 25.3% 27.1% 23.8% Total EBITA 15.1% 17.1% 18.5% 17.5% 17.1% 16.2% SEK million CAGR 2011-16’ 13.0% 16.5% 10.7% CAGR 2011-16’ 14.7% 17.7% 10.0%

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Note: Pro forma including acquired companies during 2016 as if fully owned and consolidated for the full period. Source: Company information

Capital structure development before and after IPO

Illustration of post-IPO leverage including primary

4,8x ~1.7x 31 Mar 2017 Primary 31 Mar 2017 post-primary

Net debt / EBITDA LTM SEK ~0.5bn

Net debt and net debt / EBITDA LTM development and composition

39 260 687 732 2,0x 7,1x 5,8x 4,8x 2014 2015 2016 2017 Q1 Net debt Net debt / EBITDA LTM

• Preference shares were raised in March 2015 raising a total of SEK 175 million
• EBITDA drop in 2015 contributing to large increase in net debt / EBITDA
• Net debt in March 2017 amounts to SEK 732 million and consists of:

+ Interest bearing debt of SEK 434 million + Preference share of SEK 175 million + Seller’s reinvestment of SEK 238 million ‒ Cash of SEK 114 million 434 175 238

• 114

732 Cash Sellers reinvestment Preference share Interest-bearing debt SEK million

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Current trading – Q1 2017

• Strong margins due to high utilization in the elevator niches from increased

co-operation between the local and global businesses

• Overall a strong quarter
• Overall activity in line with expectations
• Acquisition of Topas Vatten & Service completed
• Stable margins expected from the underlying companies since they operate

in mature markets. Q1 margins for Niched products and services are in line with expectations given historical seasonality patterns in the underlying companies

SEK million 2016 FY 2017 Q1 LTM 2016 Q1 2017 Q1 Net sales 461.8 499.0 98.7 135.9 EBITA 44.1 53.3 6.4 15.6 EBITA-margin 9.5% 10.7% 6.5% 11.5% SEK million 2016 FY 2017 Q1 LTM 2016 Q1 2017 Q1 Net sales 286.3 370.4 10.2 94.3 EBITA 66.4 80.1 3.5 17.2 EBITA-margin 23.2% 21.6% 33.9% 18.2% SEK million 2016 FY 2017 Q1 LTM 2016 Q1 2017 Q1 Net sales 775.5 899.4 113.3 237.2 EBITA 110.9 132.3 6.3 27.8 EBITA-margin 14.3% 14.7% 5.6% 11.7%

• Lower margin in Q1 compared to full year 2016 is in line with expectations

due to seasonality

• The order book within the Shell Completion business has been good and is

higher compared to the same period 2016

• Not comparable to 2016 Q1 since net sales then was SEK ~10 million

compared to SEK ~94 million in 2017 Q1

Group Comments Tailored installations Comments Niched products and services Comments

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AGENDA

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• 1. Company introduction
• 2. Financial overview
• 3. Note from main owner Ashkan Pouya

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Source: Company information

Preferensaktiekapitalets utveckling

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EBITDA/Preferens- aktieutdelning Preferens- aktiekvot Eget kapital Preferens- aktiekapital

Notering av preferensaktie Efter sak- utdelning Senaste rapportering Efter notering av stamaktie

175 Mkr 175 Mkr 175 Mkr 175 Mkr 130 Mkr 200 Mkr 443 Mkr >900 MKr 57% 47% 28% <16% ~3 X ~4.0 X ~10 X ~11 X

Tidpunkt 31 mars 2015 30 sept 2016 31 mars 2017 Idag

Händelse

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Utveckling av preferensaktie

75 80 85 90 95 100 105

SIX Preferensaktieindex SDIP Pref

Thank you!