First quarter 2015 Presentation May 8, 2015 Strictly private and confidential
Troax in brief Financial development, 2011 – 2014PF Overview • Troax is the global market leader of indoor perimeters SALES AND ADJ. EBITA MARGIN ADJ. EBITA AND CASH CONVERSION 2 protection (“mesh panel solutions”) EUR million EUR million • Relative market share is ~2.5x larger than #2 player 113,4% 100 25% 91 20 112,0% 125% 16,7 • Local presence in 31 countries 80 72 20% 86,7% 16 100% 70 82,2% • Troax had a sales CAGR 2011-2014PF of 14.5% and an 12,9 61 organic sales CAGR 2011-2014 of 8.1% 18,4% 18,0% 10,7 60 15% 12 75% 15,2% • Troax had a adj. EBITA CAGR 2011-2014PF of 39.2% and an 40 10% 8 50% 6,2 organic adj. EBITA CAGR 2011-2014 of 29.4% 10,2% • 20 5% 4 25% Strong position in the value chain and low supplier and customer dependency 0 0% 0 0% • 2011 2012 2013 2014 36% of total employees work within sales 2011 2012 2013 2014PF 3 Troax Satech Cash conversion Troax Satech Adj. EBITA margin Product offering Sales by region (2014PF) Sales by end-market (2014PF) Property Machinery and robotics protection New markets Protection 6% A&R Automation & 16% UK Robotics 17% 54% Mainland Warehouse protection and separation Europe MHL 58% Material Nordics Handling & 19% Logistics 30% Residential and commercial safe storage solutions PP Strictly private and confidential 2
60 years of growth provides a solid foundation for future success 91 EUR million 85 72 70 Sales CAGR 1985 – 2014 of 9.4% 66 65 Sales development 61 58 58 56 55 53 52 51 48 48 48 45 42 40 37 Global 29 Streamlining 25 25 financial 22 product 18 14 crisis 11 portfolio 9 8 7 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 PF Sales Acquisition of New market oriented management team and International expansion The four Axelsson C. Lee Certified Certified increased focus on the growing machine accelerated. Acquisition of brothers started Manufacturing according according to protection market. Organizational Revenue: EUR 72 million Satech, #1 in the Company Ltd, UK to ISO 9001 ISO 14001 modifications carried out Adj. EBITA margin: 18% Italy Important events 1955 1972 1991 1995 1998 2003 2008 2010 2012 2013 2014 International Troax' owner Gnosjö- Change of product focus from Company acquired by Company acquired by expansion Gruppen AB became a diversified to a more focused Accent Equity and FSN Capital III and initiated wholly-owned subsidiary of product range Management Management Gunnebo AB, a public company listed on Stockholm stock exchange Source: Company information Note: Yearly figures are based on Troax financials and 2014 PF figures are proforma Strictly private and confidential 3
Proven concept based on modularity One common product… …is combined with smart accessories… METAL-BASED MESH PANELS LARGE PORTFOLIO OF SMART ACCESSORIES HIGH QUALITY PRODUCTS • Various sizes • Durable and solid against impact • Lightweight and easy to install • Smooth edges – to prevent injuries • Best-in-test products Angle bracket Snapper Safe lock …to create tailored solutions for Troax' three core market segments AUTOMATION AND ROBOTICS MATERIAL HANDLING AND LOGISTICS PROPERTY PROTECTION Residential and commercial safe Machinery and robotics protection Warehouse protection and separation storage solutions Source: Company information Strictly private and confidential 4
Troax is the clear market leader in a fragmented market Global market share 1,2 (EUR 850 million) Attractive and fragmented market 1 Troax Troax’ main ~ 10% Axelent markets 350 ~ 4% 100 Troax' presence Blacksmiths Market size 57 ~ 50% (EUR million) 108 Other smaller identified competitors ~ 36% European market share 1 (EUR 400 million) 22 Troax 116 ~ 20% 32 Axelent Blacksmiths ~ 8% ~ 50% 38 Other smaller identified 26 competitors ~ 21% European market leader in target end-markets 1 1 1 1 Troax is the largest player in the fragmented mesh panel market 24% 20% 20% Troax is ~ 2.5x larger than #2 player 50% of the market is held by local blacksmiths Automation & Robotics Material Handling & Logistics Property Protection Troax’ market position 1 Source: Company information and various market reports and analyses by leading strategy and financial consulting firms 1) Based on market analysis conducted in 2012 2) Global market includes addressable markets in Asia, Europe and the US Strictly private and confidential 5
Strong underlying structural growth in Troax’ addressable market Market development and segmentation 1 EUR million EUROPEAN METAL BASED MESH PANEL MARKET 534 CAGR 03 – 13e CAGR 13e – 18e 406 400 396 378 334 4.1% 5.6% 330 309 294 280 271 0.3% 2.3% 1.8% 3.5% 7.2% 7.5% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013e 2018e Automation & Robotics Material Handling & Logistics Property Protection A&R 55% OF MARKET 2013 MHL 31% OF MARKET 2013 PP 14% OF MARKET 2013 Rest of Europe UK 9% Rest of Europe Germany Italy 2% 27% 16% 4% Rest of Europe 35% Germany Germany 39% France 14% 16% UK 3% Nordics Nordics 71% 5% Italy Spain 2% Spain 12% Nordics 5% France Italy UK 7% 6% 15% 12% Source: Company information and various market reports and analyses by leading strategy and financial consulting firms 1) Based on market analysis conducted in 2012 Strictly private and confidential 6
Financial targets Financial targets Actuals 2014PF Sales growth “Troax’ objective is to exceed the growth in the Company’s >Market Organic: 9% current markets through organic growth, as well as selective growth M&A: 12 1 % acquisitions” Sales growth Profitability 20% “Troax’ target is to have an operating margin in excess of 20%” 18.4% Adjusted EBITA margin structure Capital <2.5x “ Net debt in relation to EBITDA, excluding temporary 2.9x deviations, shall not exceed 2.5 times.” Net debt to EBITDA “Troax’ target is to pay approximately 50 percent of its net profit Dividend 50% policy in dividends. The dividend proposal shall take into account - Troax ’ long- term development potential, it’s financial position Pay-out ratio and its investment needs.” Source: Company information 1) Based on Troax 2014 financials Strictly private and confidential 7
Summary Q1 2015 • Positive trend from 2014 continued • Organic sales increase 15 percent - All regions increased • Strong profit development - volume increase - capacity utilization • Integration of Satech according to plan • Troax was listed on NASDAQ Stockholm, end March Strictly private and confidential 8
Financial highlights, Group Strictly private and confidential 9
Regional Development Order Intake and Sales Strictly private and confidential 10
Conclusion • Good start in the first quarter • Growth in all regions • Market shares increase • Good capacity utilization and volumes drive profitability Strictly private and confidential 11
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