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

Årsstämma Sdiptech 20 juni, 2017 Strictly private and confidential

Delivery example Production of Electrical automation systems to control traffic lights automation Strictly private and confidential 2

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Reconstruction of Urban Escape in Stockholm Delivery example As subcontractor to global elevator company, installation of new Elevators elevators Delivery example As a full service provider, delivery Shell of inner walls completion Strictly private and confidential 5

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Delivery example Design and installation of tailored cooling rooms in retail stores Cooling Strictly private and confidential 8

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Delivery example Provisioning of real time vibration monitoring of surrounding environ- Vibration ments during blasting monitoring works Strictly private and confidential 11

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Delivery example Provides advanced ventilation solutions to Ventilation secure healthy working healthcare environments Strictly private and confidential 14

Delivery example Power grid Cloud based solution quality to monitor electrical quality in power grids monitoring Strictly private and confidential 15

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At home Delivery example Renovation and calibration of water meters Water metering Delivery example Installation and service of treatment plants outside Waste water central sewage systems treatment Delivery example Installation and service of UPS to ensure 24/7 power Uninterrupted availability in fiber power supply network node stations Strictly private and confidential 18

Deeply niched services and products for urban infrastructures Tailored installations Niched products and services Elevators (local) – Renovation Electrical power quality and service Elevators (global) – New Shell completion installations Vibration monitoring Cooling Gas evacuation Uninterrupted power supply District heating and water metering Wastewater treatment Electrical automation Strictly private and confidential 19

Business clusters create synergies and added organic growth Elevator modernization and service Sdiptech’s growing elevator cluster • Large customer base of property owners High price points • Stockholm Cross-selling of products and services Vienna, Austria (June 2017) Neutal, Austria (June 2017) Own elevator product for export • Compact elevator for existing property stocks Design, development and serial production • Zagreb, Croatia Skilled elevator technicians • Mobile teams with global coverage • School and recruitment bases Local businesses, growing urban areas Supply centers, exporting businesses Strictly private and confidential 20

Own methodology and internal team to ensure a large pipeline and a solid growth rate from acquisitions Volumes in Sdiptechs M&A process Acquisition criteria (Total volumes 2016) • Entrepreneur-owned companies • Low cyclicality  Predictable income Initial Contact: ~300 models EBIT margin >15% • First meetings: 90 Net profit >10MSEK • Operating in deep niches with high entry • barriers Bid discussions: 35 Low dependence on individual customers • and suppliers Letter of intent signed: 9 Acquisition – Financial goal Acquisitions: 7 • Acquisitions corresponding to a yearly average of 90 MSEK EBITA Strictly private and confidential 21

Sdiptechs model provides a strong growth rate and track record… Net sales EBITA and EBITA margin SEK million SEK million 132% 140% 150 944 899 132 CAGR CAGR 775 111 412 34 136 18 2014 2015 2016 2017 Q1 Run-rate 2014 2015 2016 2017 Q1 LTM Run-rate LTM Source: Company information Strictly private and confidential 22

…and a clear strategy to continue a solid growth rate Capital injection Acquiring at Supported by a To become a to finance attractive growing underlying leading European multiples … continued market and internal actor within growth… revenue synergies… niche urban infrastructures MSEK 500 6.0x 5-10% MSEK 600-800 Acquired through EV/EBITA Organic EBITA in 2021 by emission of acquisition yearly growth continuing on set path B-shares multiple 14% yearly organic growth 2011-2016 Source: Company information Strictly private and confidential 23 23

AGENDA 1. Company introduction 2. Financial overview 3. Note from main owner Ashkan Pouya Strictly private and confidential 24

Financial targets Metric Target Q1 2017 2016 2015 Organic EBITA Maintain a 5-10% EBITA 55% 39% Neg. 5-10% growth organic growth CAGR Return on capital Return on capital employed 14.4% 13.6% 8.7% >15% employed to exceed 15 percent Net debt / adjusted EBITDA 3.1 2.6 0.5 Capital structure <2.5x (LTM) not to exceed 2.5 times Source: Company information Strictly private and confidential 25

Underlying sales and EBITA development of Sdiptech’s acquired subsidiaries Sales development by subsidiaries EBITA development by subsidiaries SEK million SEK million CAGR CAGR 2011- 16’ 2011- 16’ 13.0% 916 872 759 149 14.7% 149 675 409 16.5% 374 133 585 125 312 496 257 100 17.7% 221 97 101 79 64 75 191 55 498 507 43 10.7% 447 417 364 305 61 10.0% 54 51 48 45 32 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Tailored installations Niched products and services Tailored installations Niched products and services YoY growth 2011 2012 2013 2014 2015 2016 EBITA margin 2011 2012 2013 2014 2015 2016 Tailored installations - 19.1% 14.8% 7.1% 11.3% 1.8% Tailored installations 10.4% 12.2% 14.5% 12.1% 9.5% 10.1% Niched products and Niched products and - 15.9% 16.2% 21.2% 19.9% 9.5% 22.6% 24.9% 24.9% 25.3% 27.1% 23.8% services services Total sales - 17.9% 15.4% 12.5% 14.8% 5.1% Total EBITA 15.1% 17.1% 18.5% 17.5% 17.1% 16.2% 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 Strictly private and confidential 26

Capital structure development before and after IPO Net debt and net debt / EBITDA LTM development and composition Illustration of post-IPO leverage including primary SEK million Net debt / EBITDA LTM 732 732 687 4,8x 238 7,1x Cash 5,8x 175 Sellers 4,8x reinvestment Preference 260 share 2,0x Interest-bearing 434 debt SEK ~0.5bn 39 2014 2015 2016 2017 Q1 -114 Net debt Net debt / EBITDA LTM ~1.7x • 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 31 Mar 2017 Primary 31 Mar 2017 post-primary ‒ Cash of SEK 114 million Note: Pro forma including acquired companies during 2016 as if fully owned and consolidated for the full period. Source: Company information Strictly private and confidential 27

Current trading – Q1 2017 Group Comments Overall activity in line with expectations • SEK million 2016 FY 2017 Q1 LTM 2016 Q1 2017 Q1 Acquisition of Topas Vatten & Service completed • Net sales 775.5 899.4 113.3 237.2 Stable margins expected from the underlying companies since they operate • EBITA 110.9 132.3 6.3 27.8 in mature markets. Q1 margins for Niched products and services are in line with expectations given historical seasonality patterns in the underlying EBITA-margin 14.3% 14.7% 5.6% 11.7% companies Tailored installations Comments Strong margins due to high utilization in the elevator niches from increased • SEK million 2016 FY 2017 Q1 LTM 2016 Q1 2017 Q1 co-operation between the local and global businesses Net sales 461.8 499.0 98.7 135.9 Overall a strong quarter • EBITA 44.1 53.3 6.4 15.6 EBITA-margin 9.5% 10.7% 6.5% 11.5% Niched products and services Comments • Lower margin in Q1 compared to full year 2016 is in line with expectations SEK million 2016 FY 2017 Q1 LTM 2016 Q1 2017 Q1 due to seasonality Net sales 286.3 370.4 10.2 94.3 • The order book within the Shell Completion business has been good and is higher compared to the same period 2016 EBITA 66.4 80.1 3.5 17.2 • Not comparable to 2016 Q1 since net sales then was SEK ~10 million EBITA-margin 23.2% 21.6% 33.9% 18.2% compared to SEK ~94 million in 2017 Q1 Strictly private and confidential 28

AGENDA 1. Company introduction 2. Financial overview 3. Note from main owner Ashkan Pouya Strictly private and confidential 29