YEAR-END REPORT JANUARY – DECEMBER 2018 Strictly private and confidential February 12, 2019
Today’s presenters JAKOB HOLM, CEO BENGT LEJDSTRÖM, CFO • • Joined Sdiptech in 2014 Joined Sdiptech in 2018 • • Holds 258,749 ordinary shares, 1,040 Holds 25,200 ordinary shares and 57,600 buy options preference shares, 189,000 buy options • • Background: Axholmen (founder), Background: CFO Lagercrantz Group, Interim Justitia, Acando General Electric, Accenture • • Education: M.Sc. in Systems Education: M.Sc. in Business Engineering from KTH Royal Institute of Economics from Stockholm School of Economics Technology 2
Today’s presentation MARKET TRENDS NEW BUSINESS AREAS YEAR-END UPDATE 3
■ Aging infrastructure and a need to rebuild ■ Urbanization increases shortage & strain ■ Capacity requirements continue to grow UNDER-INVESTMENTS DRIVE ■ Investment priority for nations worldwide LONG-TERM VOLUME DEMAND $2.000 billion in UK & Sweden coming 20 years
■ We expect and demand increasing Sustainability, Efficiency & Safety ■ Consumer expectations rise ■ Policy-makers adapt with regulations ■ Implemented in infrastructure A STRIVE FOR BETTER SOCIETIES DRIVES TECHNICAL IMPROVEMENTS ■ Specialists and niche companies ideal home for the technical advancements
Infrastructure technology group OFFERING Niched solutions for infrastructures MARKET Strong underlying trends – volume and improvements – drive long-term growth Employees Net Sales 1 050 1 500 1 000 Units 500 29 0 2017 2016 2018 6
Today’s presentation MARKET TRENDS NEW BUSINESS AREAS YEAR-END UPDATE 7
Three new Business Areas from January 2019 TAILORED NICHED PRODUCTS INSTALLATIONS & SERVICES NEW BUSINESS AREAS SPECIAL INFRASTRUCTURE PROPERTY TECHNICAL WATER & ENERGY SOLUTIONS SERVICES 8
SALES (2018): 427.9 MSEK WATER & ENERGY EBITA*-% (2018): 15.0 % Sub-segments: • NO. OF UNITS: 12 Water & Sanitation • Power & Energy ACQUISITIONS: 6 (past 15 mths) 9
SPECIAL INFRASTRUCTURE SOLUTIONS SALES (2018): 319.6 MSEK Sub-segments: EBITA*-% (2018): 22.1 % • Air & Climate control NO. OF UNITS: 9 • Safety & Security • Transportation ACQUISITIONS: 4 (past 15 mths) 10
SALES (2018): 749.0 MSEK PROPERTY TECHNICAL SERVICES EBITA*-% (2018): 8.2 % Sub-segments: • NO. OF UNITS: 8 Elevator • Other ACQUISITIONS: 0 (past 15 mths) 11
Today’s presentation MARKET TRENDS NEW BUSINESS AREAS YEAR-END UPDATE 12
Quarterly highlights ▪ Net sales increased 27% to SEK 419.2m Continued strong growth ▪ EBITA* in the quarter increased with 19% to SEK 56.5m and EBITA* margin to 13.5% ▪ Improvement program have led to both nominal EBITA* improvements as well as on the EBITA* margin Elevator improvement ▪ Activities focused primarily on price increases and measures to strengthen the aftermarket offering, but also successful measures to reduce expenses ▪ Coming quarters, unchanged positive view on growing profit levels Outlook is positive ▪ Newly added acquisitions contribute with results 13
Growth in 2018 +43% and organic growth +5% Group Net sales Group EBITA* Net Sales (SEK m) EBITA* (SEK m) 2018 Jan-Dec, organic growth 5% +43% +45% 1496 177 1408 168 1291 153 1153 128 1045 123 108 745 2016 2017 RTM Q1 RTM Q2 RTM Q3 RTM Q4 2016 2017 RTM Q1 RTM Q2 RTM Q3 RTM Q4 2018 2018 2018 2018 2018 2018 2018 2018 14
Quarter and FY Financial development Group - remaining operations Jan-Dec 2018 Q4 2018 (Jan-Dec 2017) (Q4 2017) Net Sales (SEKm) +27% 419 (331) +43% 1 496 (1 045) EBITA* (SEKm) +19% 57 (48) +45% 177 (122) EBITA* margin 13.5% (14.3%) 11.8% (11.7%) Net bank debt/EBITDA 0.59 (-0.25) Net debt/EBITDA1) 3.02 (1.37) 1) Comment on the Net debt/EBITDA ratio. At a share of 49%, Net debt consists of debt related to “conditional considerations for acquisitions” (Swe: tilläggsköpeskillingar). These debts are sized for profit growth, i.e. current Net debt is based on future EBITDA levels higher than the current EBITDA levels used in the ratio. 15
Quarter and FY Financial development in Tailored Installations Tailored Installations Quarter Net Sales (SEK m) EBITA* margin (%) 850 20% • Continued strong growth in sales, in the 801 744 quarter increased with 28% to 229.6 SEKm 672 15% • EBITA* increased with 730% to 22.4 SEKm 610 • EBITA* margin increased to 9.8% (1.5%) 462 10% 7,4% Elevators 9,2% 5,5% 5,4% 4,7% • Successful improvement program has resulted 3,8% 5% in increased profitability • Strong growth and demand in non-Nordic units 0% 2016 2017 RTM Q1 RTM Q2 RTM Q3 RTM Q4 Other 2018 2018 2018 2018 • Other companies in the business area are in line with previous year Jan-Dec 2018 Q4 2018 (Jan-Dec 2017) (Q4 2017) • Acquisitions during 2018: Net Sales (SEKm) 229.6 850.3 (179.9) (609.5) Centralmontage i Nyköping AB in Q1, Optyma Security Systems in Q1 EBITA* (SEKm) 22.4 63.1 (2.7) (33.8) • Total number of units: 13 EBITA* margin 9.8% 7.4% (1.5%) (5.5%) 16
Quarter and FY Financial development in Niched Products & Services Niched Products & Services Quarter Quarter Net Sales (SEK m) EBITA* margin (%) 50% 646 • Sales in the quarter increased with 60% to 608 • Continued strong growth in sales, in the 159.1 MSEK 548 quarter increased with 25% to 189.6 SEKm 40% 480 • EBITA* increased with 20% to 28.7 MSEK • The profitability last year was exceptionally 436 supported by strong market positions and strong at 27.8% and during 2018 we have 30% 24,8% 24,7% good demand 23,7% 23,7% guided a normalized profit level at ca. 20% 22,2% 20,6% 286 • EBITA* margin increased from last quarter 20% • EBITA* margin for the quarter came in better than expected at 21.3%. In total EBITA* for the to 20.3%, but decreased compared to RTM, quarter decreased to 40.4 SEKm (42.1). due to very good profitability in the last 10% three months 2017. A normalization to current levels in the third quarter has Other 0% occurred. 2016 2017 RTM Q1 RTM Q2 RTM Q3 RTM Q4 • Acquisitions during 2018: 2018 2018 2018 2018 Other Storadio Aero AB in Q1, Multitech Site Services Ltd in Q1, Jan-Dec 2018 Q4 2018 • Acquisitions: KSS Klimat- & Styrsystem AB in Q2, (Jan-Dec 2017) (Q4 2017) KSS Klimat- & Styrsystem AB in Q2 Rogaland Industri Automasjon AS early in Q3, Net Sales (SEKm) 189.6 646.0 Rogaland Industri Automasjon AS early in (151.2) (435.7) Vera Klippan AB in Q4 and Q3 Pure Water Scandinavia AB in Q4 EBITA* (SEKm) 40.4 133.3 (42.1) (104.2) • Total number of companies: 13 • Total number of units: 15 EBITA* margin 21.3% (27.8%) 20.6% (23.9%) 17
Acquisitions Eight acquisitions completed in 2018 Completed Company Business area Country Q1-19 RedSpeed International Ltd Special Infrastructure Solutions UK Q4-18 Pure Water Scandinavia AB Water & Energy SE Q4-18 Vera Klippan AB Water & Energy SE Q3-18 Rogaland Industri Automasjon AS Water & Energy NO Q2-18 KSS Klimat- & Styrsystem AB Special Infrastructure Solutions SE Q1-18 Centralmontage i Nyköping AB Water & Energy SE Q1-18 Storadio Aero AB (former Aviolinx) Special Infrastructure Solutions SE Q1-18 Optyma Security systems Ltd Special Infrastructure Solutions UK Q1-18 Multitech Site services Ltd Water & Energy UK 18
Acquisitions Recent acquisitions Pure Water Scandinavia AB RedSpeed International Ltd ▪ Pure Water Scandinavia is a leading product ▪ RedSpeed International is a leading supplier of company in the niche of ultrapure water. The solutions to the traffic enforcement industry, company’s products are used by companies such as specialising in the development, manufacturing and hospitals, energy companies and laboratories. maintenance of digital enforcement cameras. ▪ Through the acquisition, we complement the ▪ Through the acquisition, we complement the Group’s offering within the water segment. Group’s offering in the special infrastructure solution segment. ▪ Net Sales: SEK 32m ▪ Net Sales: GBP 5.6m 19
Summary Group EBITA* ▪ Niched technology, solutions and services to the Infrastructure sector EBITA* (SEK m) +45% Growth driven by urbanization as well as ▪ 177 177 improvements for increased sustainability, 168 efficiency and safety 153 128 123 Outlook is positive 108 ▪ The fourth quarter of the year underscored the positive trend and growth in the Group. ▪ Unchanged positive view on growing profit levels 2016 2017 RTM Q1 RTM Q2 RTM Q3 RTM Q4 ▪ Newly added acquisitions contribute with results 2018 2018 2018 2018 20
Thank you for listening. 21
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