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Makes it easier to be professional Q4 2018 report presentation January 24, 2019 1 Q4: Strong growth and intensified focus on increased profitability Sales Adj. EBITA Sales up by 13% Adj. EBITA to 8 616 MSEK 705 MSEK Gross margin mix


  1. Makes it easier to be professional Q4 2018 report presentation January 24, 2019 1

  2. Q4: Strong growth and intensified focus on increased profitability Sales Adj. EBITA Sales up by 13% Adj. EBITA to 8 616 MSEK 705 MSEK • Gross margin mix negative • Increased costs due to high activity • Successful growth • Cost-savings showing effect in initiatives Sweden • High market activity • Fewer trading days affecting EBITA • Positive effect from with MSEK -34 acquisitions • Items affecting comparability of MSEK -37 Strong organic Adj. EBITA margin growth at 8% 8,2% (9,3) The Board proposes a dividend of SEK 1.84 (1.65) per share for 2018, corresponding to a payout ratio of 50% 2

  3. Q4: Strong sales growth Sales bridge – Growth in MSEK and % Sales growth / organic +13% +13% / +8% +5% +8% -2% +2% 8 800 8 616 8 600 148 118 8 400 620 8 200 7 966 Sweden 8 000 7 800 360 +9% / +7% 7 606 • Favourable market conditions MSEK MSEK MSEK 0 • Construction still strong Q4 2017 Acquisitions Q4 2017 Pf Organic Trading days Currency Q4 2018 despite declining number of housing starts Sales bridge per market segment – Growth in MSEK and % Norway • Increased growth rate in +26% / +9% renovation +13% • Strong infrastructure and 9 000 +6% +5% +2% 0% 0% industry 8 616 MSEK 9 8 • Growth positively affected by 166 8 500 acquisitions and currency Finland 355 8 000 472 +20% / +10% MSEK MSEK 7 606 0 Q4 2017 Sweden Norway Finland Denmark Other Q4 2018 3

  4. Q4: Sales initiatives and increased costs affect the margin Sales, EBITA and Adj. EBITA margin Adj. EBITA margin 10 000 16 8 616 8 056 8.2% (9.3) 14 7 606 7 458 8 000 7 161 6 902 6 818 6 568 6 492 6 344 12 5 880 5 480 6 000 9.3 9.3 9.2 9.2 9.1 10 8.8 8.7 8.4 8.4 8.2 8.1 4 000 7.7 7.3 8 Gross margin at 25.9% (27.1) 2 000 MSEK 6 Sweden • Organic growth with lower margin 709 560 538 563 530 558 597 554 678 620 668 397 0 4 12.0% (12.7) 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 EBITA impacted by restructuring costs of MSEK 37 (Norway) Adjusted EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Adj. EBITA bridge – Growth in MSEK and % Norway Adj. EBITA margin weaker 1.6% (3.4) • Fewer trading days affecting EBITA -1% with MSEK -34 +39% -15% -24% 1 000 • Increased costs due to high activity 107 274 800 709 171 705 600 Finland Cost-saving measures further intensified. 400 Positive effect already achieved in Sweden. 2.8% (4.4) 200 0 Q4 2017 Net sales effect Gross margin effect Operating expenses Q4 2018 4

  5. 2018: Strong organic growth and several acquisitions Sales bridge – Growth in MSEK and % Total sales growth / organic +14% +14% / 7% +5% +7% 0% +2% 32 000 31 291 488 31 000 133 30 000 2 148 28 788 • Strong organic sales growth 29 000 Sweden 1 304 • Significant contribution from 28 000 27 484 +12% / 8% acquisitions MSEK MSEK 0 MSEK • Underlying market conditions still 2017 Acquisitions 2018 Pf Organic Trading days Currency 2018 strong • Construction activity still Sales bridge per market segment – Growth in MSEK and % Norway high, despite declining number of housing starts +19% / 7% +14% • Growth rate in renovation +8% +4% +2% 0% 0% increased in H2 32 000 31 291 63 61 • Industry remained strong 31 000 533 MSEK 1 017 30 000 Finland • Good development in 29 000 infrastructure 2 134 +17% / 7% 28 000 27 484 MSEK MSEK 0 2017 Sweden Norway Finland Denmark Other 2018 5

  6. 2018: Adj. EBITA up by 8% driven by strong sales Sales, EBITA and Adj. EBITA margin Adj. EBITA margin 35 000 16 31 291 8.3% (8.8) 14 30 000 27 484 24 606 12 25 000 22 586 8.8 8.7 10 8.3 20 000 8 15 000 8.3 6 10 000 4 Sweden 5 000 Sweden 2 2 520 1 837 2 058 2 394 0 0 +14% 11.8% (12.2) 2015 2016 2017 2018 • Strong growth in customer and product segments with lower gross Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % margin Adj. EBITA bridge – Growth in MSEK and % Norway Norway • Profitability level for acquisitions in line with group +15% 2.6% (3.3) • Increased costs for handling high +8% +43% -7% -28% volumes in Norway 4 000 169 • Operating expenses in % of sales 3 000 2 587 1 028 677 2 405 in line with last year Finland 2 000 Finland 1 000 +7% 3.4% (4.0) 0 2017 Net sales effect Gross margin effect Operating expenses 2018 6

  7. 2018: 9 acquisitions announced, of which 8 finalised ~Annual revenues Swedish acquisitions 2018: MSEK 306 Norwegian acquisitions 2018: MSEK 545 Finnish acquisitions 2018: MSEK 35 (Another MSEK 75 in 2019) Acquired revenues for Ahlsell Group 2018: MSEK 886 (Another MSEK 75 finalised in 2019) 7

  8. Sweden – Highlights Q4 Sales, EBITA and EBITA margin 6 000 22 5 612 5 180 5 140 20 Continued high market activity in all segments 4 758 5 000 4 672 4 501 4 484 18 4 261 4 202 4 102 • Growth 9%, of which 7% organic 3 699 4 000 16 3 572 • Remained strong demand in construction and industry 12.7 12.7 12.7 14 12.2 12.2 12.1 12.0 12.0 12.0 3 000 11.7 11.5 10.9 12 • Further strengthened positions 2 000 10 8 1 000 6 651 605 671 522 573 510 537 515 545 535 451 391 Adj. EBITA margin at 12.0% (12.7) 0 4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 • Strong organic growth • Diluting effect from acquisitions Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % • Gross margin somewhat weaker Sales bridge – Growth in MSEK and % • Costs as a proportion of sales lower than previous year +9% +7% +4% +-2% 5 800 Further efficiency measures 5 612 91 175 5 600 • Initiated cost-savings gave effect by the end of Q4 • MSEK 90 in savings expected in 2019 5 400 387 5 200 5 140 0 2017Q4 Organic Acquisitions Trading days 2018Q4 8

  9. Norway – Highlights Q4 Sales, EBITA and EBITA margin Strong growth and strengthened market position 2 000 10 1 748 1 674 9 • Growth 26%, of which 9% organic 1 555 8 1 390 1 393 1 389 1 375 1 500 1 312 1 267 1 254 • High market activity 1 185 7 1 082 5.2 6 5.1 1 000 • Strong sales towards infrastructure, construction and industry 5 3.7 3.6 3.4 3.2 4 2.8 500 Acquisitions and currency contributed positively • 3 2.0 2.0 1.8 1.6 1.2 2 • Sprinkler operations acquired from Øglænd System 53 51 39 65 48 60 50 0 13 25 26 25 -8 1 0 (MSEK 45) -500 -1 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 Adj. EBITA margin at 1.6% (3.4) Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % • Additional volumes with lower gross margin Sales bridge – Growth in MSEK and % • High activity level led to higher costs in logistics and transport +26% +9% +13% -2% +6% Cost-saving measures are intensified 1 800 1 748 • Intensifying our focus on improved sales mix and profitability 86 1 700 27 161 • Restructuring costs of MSEK 37 to reduce cost and improve 1 600 efficiency 1 500 135 1 393 • Annual savings of MSEK 60 are expected in 2019 1 400 100 2017Q4 Organic Acquisitions Trading days Currency 2018Q4 9

  10. Finland – Highlights Q4 Sales, EBITA and EBITA margin 1 200 10 1 014 9 979 937 1 000 8 848 824 789 813 812 803 787 7 800 727 5.7 5.6 5.4 651 6 4.4 600 4.3 5 Strong growth at 20% 4.0 3.2 4 3.1 2.8 10% organic growth and strengthened positions • 400 3 2.0 1.9 2 200 • All product segments developed well 1 1.5 53 34 45 45 37 25 14 21 16 30 28 0 10 0 • Strong sales development towards several customer 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 segments • PJ-Control Oy acquired with MSEK ~75 in annual sales Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Sales bridge – Growth in MSEK and % EBITA margin at 2,8% (4,4) • Gross margin was somewhat lower +20% • Costs as a proportion of sales in line with previous year 1 050 +10% +3% +0% +6% 1 014 1 000 53 0 950 23 900 90 848 850 150 2017Q4 Organic Acquisitions Trading days Currency 2018Q4 10

  11. Denmark and Other - Highlights Q4 Sales, EBITA and EBITA margin Denmark • Sales up 9%, of which 6% organic 140 25 122 • Organic growth in both refrigeration and DIY, however 112 120 107 101 20 100 98 96 95 93 16.0 100 89 growth rate for refrigeration has declined somewhat y-oy 88 88 12.9 15 17.1 80 11.6 11.3 as a result of reduced refrigerant prices 10.3 9.4 8.8 60 7.9 12.5 7.8 10 7.3 • EBITA margin at 7.8% (12.9), weakened by reduced 40 5 refrigerant margins 20 20 19 13 10 10 11 11 7 9 8 8 6 0 0 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Sales, EBITA and EBITA margin Other • Total sales growth of 7%, of which organic 2% 143 141 150 6.0 135 134 • Organic growth in both the Polish and Estonian operations 126 120 115 5.0 110 109 3.7 • EBITA margin at 1.5% (2.5) 95 93 100 3.4 4.0 3.3 82 4.1 3.0 1.5 50 2.0 2.5 2.3 1.1 1.1 1.9 1.8 1.0 1.5 6 5 5 2 4 2 3 3 2 2 0 1 1 0.0 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % 11

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