Organic initiatives driving profitability improvement Cross sales Larger Solutions customer and base services Customer Private Increased size targeting label and share of customer wallet Leverage Central Customer Sales Pricing Scale sourcing interface efficiency 28
Successful execution on M&A pipeline Experience of Well-defined tracking and acquisition maximising model synergies corresponding to ~19 M&A targets ~1,7 BSEK realized since listing of sales corresponding to ~250 M&A ~53 BSEK targets of varying size in pipeline of sales 29
Meet demand and create customer value by additional services Broad product Precision in Digital Work-site Additional offering and full and quick services logistics value availability delivery enhancing services Ahlsell today and into the future 30
Digital Market Leader in B2B e-commerce and digital services E-commerce of sales, % E-commerce 30 28 26 ~ 28% 25 23 22 22 21 Seamless 20 of sales online offering enables strengthened 15 customer 10 relationships 5 0 2013 2014 2015 2016 2017 2018 H1 E-commerce of group sales 31
Construction site logistics in transformation From this… … to this! Delivery with … lifted directly to marked pallets the assembly place and packages… 32
Work-site logistics safeguards and improves market position Traditional value chain Ahlsell has an important position in the value chain Supplier Distributor Installer Constructor Real estate owner Value chain with work-site logistics Ahlsell will: … …increase …assist with … influence … offer a full efficiency and selection of …decrease cost choice of material installer sustainability assortment Work-site Work-site Work-site Real estate Supplier Distributor Installer Constructor logistics logistics logistics owner 33
Case example: Dalarö Collaboration with BTH Bygg in the construction of 13 multi-family houses in Dalarö, east of Stockholm Small area with limited storage capacity Environmental sensitive area (and roads) that cannot handle too much traffic Tight time schedule Full logistic solution provided by Ahlsell 34
Value-enhancing services to strengthen customer loyalty Ahls lsell ll Aca cadem y Tryckt & Klart Offloading assistance - E.g. co courses to work k safely ly – Prints and embroidery on Kit packing and parcels workwear and PPE Runners – Committed staff on site that perform BEAst label simple tasks Assembling – packaging label G PS-deli livery SERVICES AND VALUE CREATION Customer branding Vending machines Technically integrated logistics Mediate cranes – Ahlsell delivers in the name of the customer Track n’Trace Terminal Consoli lidated pick-up – Notifications on delivery order picki icking Shop on Sit ite 35
Ahlsell at a glance Long track record of profitable growth The Nordics is a good place to be Strategy for future profitable growth 36
Kennet Göransson Chief Financial Officer Joined Ahlsell as CFO in 2014 Previously CFO for Indutrade, Addtech and Bergman & Beving B.Sc. Business and Economics, Linköping University, Sweden 37
Resilient and prepared Room to improve from current levels Committed to financial targets 38
Few financial adjustments and “business cycle resilient” Net sales, EBITA and EBITA margin 29 315 30 000 30 27 484 29 28 24 606 25 000 27 22 586 21 979 21 779 26 21 474 20 639 20 434 20 435 25 18 985 19 256 20 000 18 958 24 ~2/3 16 245 8.7% organic 15 000 8 5yr CAGR 7 11 119 ~6% 6 9 883 10 000 5.7% 5 4 15yr CAGR 3 5 000 ~8% 2 1 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Gross margin, % RTM CAGR is updated yearly. 39
Gross margin realisation impacted by a number of factors Product mix Market share and scale + Tools & Supplies + National market share in segment + Private label + Leverage on logistics + Cross-selling + Local market share in segment + Non-core products + Proximity to customer (geographically) (e.g. infrequent, supplies) Gross margin 26.9% Customer mix Delivery mix + Market dynamics + Branches higher (small vs. large projects) (due to cross-selling and private label) + Customer segment = Warehouse sales at average gross margin (multi-assortment customers) - Direct lower + SME purchasing behaviour (but also lower cost to handle) (also in large companies!) Q22018 RTM 40
Gross margin status per segment Market Product Customer Delivery share and mix mix mix scale Sweden 28.8% Norway 25.4% Finland 18.4% Q22018 RTM 41
Resilient business model with flexible cost structure Late cycle, flexible costs Case example: 2009 financial crisis (group) Index (2008=100) 138 In an upturn 123 In a downturn • Increase variable cost • Reduce variable cost • Increase working capital • Reduce working capital • Organic initiatives 98 96 96 93 91 88 87 86 85 72 Profit Resilient profit base Diversified market exposure with considerable renovation exposure Asset light operations Variable cost structure (leased locations and purchased transport) Revenues Gross profit EBITDA Cash Continuous M&A activity with synergy realisation conversion 2009 2010 2011 rate, % 42
Resilient and prepared Room to improve from current levels Committed to financial targets 43
Operational leverage not clearly visible 30 000 10.0 29 000 28 000 9.5 27 000 26 000 9.0 25 000 24 000 8.5 23 000 22 000 8.0 21 000 20 000 7.5 19 000 18 000 7.0 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Adj. EBITA margin, %, RTM Net sales, MSEK, RTM Four rolling quarters 44
Drop through development is similar in main markets Sweden Norway Finland MSEK MNOK MEUR 174 7,2 1.547 -53% -52% 814 91 -64% 4,6 83 733 2,6 Gross profit Cost increase Adj. EBITA Gross proft Cost increase Adj. EBITA Gross profit Cost increase Adj. EBITA increase increase increase increase increase increase ” Drop through ” 2015Q2-2018Q2 (RTM). 45
Growth investments temporarily impacts operational leverage Profitable Profitable Growth Improvement Ahlsell Model Ahlsell Way growth Illustration of EBITA margin and potential impact of growth initiatives Sales T=0 Investing in High pace of Investing in Initiatives (digital etc.) Sales T=1 proven model acquisitions and processes and organic initiatives governance 46
What drives our operational leverage potential? Scale Lower cost to serve advantage Value-added Spreading Scale selling costs advantage EBITA, % Supply chain control Sales force Pricing excellence Cost control Other (organic Full potential effectiveness (variable and fixed) initiatives and M&A) 47
Supply chain control Examples of KPI’s and current trend: Private-label sales, index 100 =2013 160 • Increase of private-label sales 151 (absolute) 139 140 123 • Increase of portfolio effectiveness 120 113 109 (Gross margin / inventory) 100 100 Reduction of number of articles with • 80 low annual turnover 60 • Terms improvement (yearly negotiations) 40 • Continued assessment of suppliers 20 (sustainability goal) 0 2013 2014 2015 2016 2017 H1 2018 48
Sales force effectiveness and pricing excellence Examples of KPI’s and current trend: • SME targeting • Frequency pricing • Sales force efficiency (Customer visits / external sales rep.) (Turnover / external sales rep.) Sales force effectiveness further improved by: • Sales and Leadership training • Role descriptions and KPI’s Coaching and feedback for performance • • Common sales processes • New CRM and telephone system 49
Lean with cost control Increased focus on efficiency measures % of gross profit consumed by costs 100 Sales force efficiency 91 Warehousing capacity utilisation 90 86 Operational Benchmarking and follow up 81 79 80 Harvest synergies from acquisitions expenses 71 Cost-saving and efficiency-improving 68 70 measures 60 58 60 Capital requirements low as we grow further 50 40 Continued investments in efficient 30 Capital warehousing 20 Already upgraded IT infrastructure expenditure Asset-light operations 10 0 Group Sweden Norway Finland 2015Q2 RTM 2018Q2 RTM 50
Other – Organic initiatives and M&A High pace of M&A impacting EBITA margin Average EBITA margin on acquisitions negatively in the short term 9 8,7 8,4 8,1 8,1 8 6,9 6,8 7 6,4 5,9 6 Dilutive 5 Dilutive Dilutive Dilutive 4 3 2 1 0 2015 2016 2017 2018 H1 Ahlsell EBITA margin reported (incl. Acquisitions), RTM Average EBITA margin of acquisitions (when acquired) 51
Resilient and prepared Room to improve from current levels Committed to financial targets 52
IFRS 16 and its impact on Ahlsell’s financial reporting Estimated impact of IFRS 16 What is IFRS 16? IFRS 16 will primarily affect lessees, and the main Gross margin +0,3 percentage points effect is that all leases currently accounted for as operating leases are to be accounted for as finance EBITDA margin +2,0 percentage points leases. EBITA margin +0,3 percentage points When does it come into effect? EBIT margin +0,3 percentage points As of 1 January 2019. Ahlsell figures for 2018 will EPS Marginal impact not be recalculated. Leverage +0,3x How will Ahlsell implement IFRS 16? Balance sheet + BSEK 2,4 Adjustments relating to IFRS 16 will only be made on group level. Segment reporting will be based on Equity/Assets ratio, % -3 percentage points the same principles as today. The above figures are preliminary and may change with changed assumptions about discount rates or when reviewing specific agreements. The above figures reflect the 53 Group's best assessment at the present time.
Cash conversion target unchanged Cash conversion Negative inventory effect due to strong sales (Operating cash flow / EBITDA) growth and growth initiatives (mainly in 2017) Securing deliveries in a strong growth environment 138 140 Branch expansion 130 119 120 Private label expansion 112 110 Strategic purchases 100 96 92 92 Underperformance in some areas 91 90 90 90 Target > 90 84 (e.g. forecasting errors due to cold winter) 78 80 72 70 70 Negative receivables effect (mainly in Q2 2018) 60 56 Strong (accelerating) growth environment 50 Calendar effect in connection with closing of period 40 30 Payables at good level 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Q2 RTM Calculation: From 2019 onwards, the cash conversion calculation will use an EBITDA which is adjusted for IFRS16 impact. I.e. calculated in the same way as of today. 54
Leverage target unchanged Long term financing in place Proven deleveraging capacity Maturity profile Leverage (Net debt/EBITDA) Of total 10 783 MSEK, 3 229 MSEK are unutilised 5,0 4,8 9 000 4,5 8 000 3,9 3,9 4,0 7 000 6 000 3,5 3,3 5 000 2,9 3,0 2,6 4 000 Leverage 2,5 target 2-3x 3 000 2,0 2 000 1,5 1 000 0 1,0 2018 2019 2020 2021 2022 0,5 Term Loan A SEK Term Loan A EUR Term Loan A NOK 0,0 2013 2014 2015 2016 2017 Q2 2018 Term Loan B Revolving facility A Revolving facility B MTN Bond 55
Financial targets and outcome Pay out ratio Total sales growth Adj. EBITA margin Cash conversion rate* Leverage** +2-3% above market Continuous increase Above 90% over time 2-3x 40-60% of net profit 4,0 3,74 14 8,8 92 3,9 50% 8,7 8,7 8,7 8,7 90 8,4 8,3 8,1 3,5 3,28 12 78 3,3 3,0 70 2,9 2,6 9 2,5 7 2,0 6 40% 1,5 1,11 4 4 1,0 3 1,65 0,5 0,21 0,35 0,0 2015 2016 2017 H1 2015 2016 2017 2018Q2 2015 2016 2017 2018Q2 2015 2016 2017 H1 2015 2016 2017 Q2 2018 RTM RTM 2018 2018 RTM * Operating cash flow / EBITDA Ahlsell sales growth, % Adj. EBITA margin, % Cash conversion rate, RTM, % Net debt ratio, RTM DPS, SEK ** Net debt / Adj. EBITDA Target Market growth, % EBITA margin, % Target, % EPS, SEK, RTM 56
Resilient and prepared Room to improve from current levels Committed to financial targets 57
Mikael Falk Head of M&A Joined Ahlsell in 2007. Appointed Sales Director Sweden in 2008 and appointed Head of M&A in 2016 Previously Sales Director Ahlsell Sweden, CEO Comfort and CEO Onninen AB Officer’s degree, Swedish Defence University 58
M&A is in our DNA Some examples M&A onwards 59
>500 MSEK in average turnover acquired p.a. last 10 years Acquisitions 3 500 14 3 256 46 3 000 12 acquisitions in the last ten years 2 500 10 MSEK 2 000 8 1 542 1 504 1 434 1 500 1 359 6 1 278 1 265 964 1 000 4 850 777836 89 600 426 500 2 337 326 since 1996 173 166 138 96 73 30 0 0 0 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Acquired sales Number of acquisitions The acquisitions in 2018 are announced, but in some cases not yet completed. 60
2017: 11 acquisitions totalling 780 MSEK in turnover 61
2018: 7 acquisitions… and more to come! ~Annual revenues Swedish acquisitions YTD: MSEK 306 Norwegian acquisitions YTD: MSEK 495 Finnish acquisitions YTD: MSEK 35 Acquired revenues for Ahlsell Group YTD: MSEK 836 62
M&A is in our DNA Some examples M&A onwards 63
Example: Add on Hjelmbergs Hjelmbergs (nowadays Ahlsell) is a distributor towards professional customers in Karlshamn, south of Sweden. It has a strong position within tools and supplies – both with well-known brands and private label. Acquired 2014 with revenues ~55 MSEK and 22 employees. Rationale To strengthen position of the Ahlsell brand in the region whilst broadening the product range to attract more customers. Pre-valuation Post-valuation EV/EBITA 7,9 EV/EBITA 2,2 Strategy Increase level of cross-sales, private label and increase sales efficiency – in accordance with the Ahlsell strategy. 64
Example: Increasing presence Prevex is a specialized wholesaler with a strong market position in Gothenburg and Malmö, south of Sweden. Acquired 2016 with revenues ~350 MSEK and 102 employees. Rationale To strengthen position in tools & personal protective equipment (PPE) in a geographical area with strong growth. Pre-valuation Post-valuation EV/EBITA 9,0 EV/EBITA 5,8 Strategy Expand the number of units in strategic locations and offer high service and accessibility to customers. 65
Example: Broadening product offering HauCon is a leading supplier of specialty products and technical know-how for construction fastening. Acquired 2014 with revenues ~148 MSEK and 20 employees. Rationale Strengthening position and offering in Sweden while generating synergies in sales, customer base and logistics. Adding products for the early stages of construction projects. Strategy Pre-valuation Post-valuation Gain lead position towards customers by providing a product assortment that is EV/EBITA: EV/EBITA: used already in the beginning of the construction projects. 6,4 3,8 66
Example: Extending customer portfolio Viacon supplies several major infrastructure customers with products within water and sewage, such as pipes, pumps, dwells, manholes, valves and fittings. Acquired 2017 with revenues ~320 MSEK and 81 employees. Rationale Valuable expertise in Water & Sewage operations. Strengthens initiatives to attractive customer segments. Pre-valuation Post-valuation Strategy EV/EBITA: 6,9 To be evaluated Strengthen position in HVAC further. Restructuring started in Q3 with full effect as of beginning of 2019. 67
Example: Key strategic move 100% online business directed towards professionals 17 000 articles upon acquisition Strong correlation between amount of products and increased sales Ahlsell can provide better sourcing and more products 30-40% growth p.a Achieved by attractive sales channel, analytics and targeting Ahlsell will gain full insight and apply superior digital knowledge on current Ahlsell channel 68
M&A is in our DNA Some examples M&A onwards 69
Current pipeline stronger than ever ” Strong reputation, • HVAC & Plumbing experienced team and • Electrical • Tools & Supply a structured process enables a steady flow of ~2,000 potential candidates opportunities ~250 selected candidates M&A targets of varying size in pipeline corresponding to: ~35-40 contacted DK & ~20 ongoing discussions Other 10 000 19 000 MSEK 53 000 in target turnover 13 000 11 000 MSEK of sales 70
Ahlsell has a clear competitive advantage in M&A Ahlsell Target Strong reputation Smooth transactions Join a winning team and presence and able to pay cash Best synergies and Selective choices Chances to grow integration according to strategy further 71
Well-developed and documented acquisition Proven M&A strategy and strong track-record of integration and integration model Pre valuation Due diligence Post valuation Integration Timing Synergy Almost immediate ~5-10% of sales Purchasing Thorough process ~4-5% EBITA margin ~3 months EBITA margin Administration – Cost reduction: in line with Group ~20-40% of costs 3-6 months including Logistics ~3-4 ~7-8 sustainability metrics EV/EBITA valuation EV/EBITA valuation ~30% of working 3-6 months Working capital capital Additional cross- ~3 months Sales selling 72
M&A is in our DNA Some examples M&A onwards 73
74
Claes Seldeby Head of Operations Sweden Joined Ahlsell in 2016 as Head of Operations Sweden Previously President and CEO at FM Mattsson Mora Group and CEO Schneider Electric Sweden M. Sc. Business and Economics in Lund University, Sweden 75
Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth 76
Long track record of profitable growth Net sales, EBITA and EBITA margin 25 000 20 18 20 000 19 280 16 18 087 14 15 874 12,0% 14 328 15 000 12 13 210 12 398 12 134 12 040 10 11 245 10 989 10 715 10 076 9 875 10 000 8 8 873 ~2/3 7,9% 6 organic 5 000 4 5yr CAGR 2 ~8% 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018 RTM Adj. EBITA margin, % EBITA, MSEK Net sales, MSEK EBITA margin, % CAGR is updated yearly 77
Sweden at a glance Distribution form in % of sales, RTM Sales in % per product segment, RTM Direct from suppliers Tools & Supplies 25% E-commerce HVAC & Plumbing 32% 37% 30% 54% Central warehouse 21% of sales Branches 31% Electrical Employees, FTE, end of period Branches, end of period 133 4 000 140 3 632 3 522 121 3 500 120 3 154 110 102 2 886 100 2 834 3 000 2 683 94 100 2 500 80 2 000 60 1 500 40 1 000 20 500 0 0 2013 2014 2015 2016 2017 Q2 2018 2013 2014 2015 2016 2017 Q2 2018 RTM = Rolling twelve months 78
Success starts with our people Loyalty-index Motivation-index 82 74 Sound values Accountability Openness Simplicity We are continuously investing in leadership training and product competence Employee survey 2018 made by Ennova. External benchmark (GELx) for motivation and loyalty are 66 and 74 respectively. 79
Strongest brand in the market Spontaneous brand awareness Electricity Heating & Plumbing Facility Mgmt Sewage, infra Construction Industry # 1 # 1 # 1 # 1 # 1 # 5 Trustful Well-recognised Safe Structured Authoritarian Brand awareness study made in spring 2018 with more than 1000 respondents. 80
High customer satisfaction Customer Net Satisfaction Promoter Index Score 82 40 NPS: In a rating between 1-10; those voting 0- 6 are “Detractors”, 7 - 8 are “Passives” and CSI: The scale covers values between 1-100 on several metrics. 81 9- 10 are “Promoters”. In the calculation, the Detractors are detracted from the The higher the better, why 82 is a good result for Ahlsell. Promoters. A NPS of 40 is hence considered to be a strong result.
Ahlsell is the overall market leader in Sweden Est. additional market size based on current Ahlsell is the only B2B-distributor with a growth strategy strong offering within three product segments Company POTENTIAL FOR FURTHER GROWTH HVAC & P Electrical T&S Ahlsell Dahl Onninen Ahlsell 27% Solar Dahl Ahlsell 33% Est. market size 2015: Elektroskandia BSEK ~50 Selga and Storel Elektroskandia Momentum Ahlsell 30% Momentum Onninen Swedol Selga and Storel Swedol Solar Solar Other Onninen Other Other HVAC & P Electrical Tools & S Arrow indicates if Ahlsell has been gaining or loosing market share since 2015 82 Major owners of competitors in brackets: Dahl (St. Gobain), Onninen (Kesko), Elektroskandia (Sonepar), Selga and Storel (Rexel)
Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth 83
Forecast slowdown in the construction investments from 2019 Total construction investments Is there a reason to worry about anticipated Infrastructure, residential and commercial, BSEK slowdown? 600 507 499 491 500 458 420 387 400 353 300 200 Not really. 100 0 Sweden 2013 2014 2015 2016 2017 2018e 2019e Sveriges Byggindustrier 2018-02-22 – ByggKonjunkturen 84
The Swedish business is well diversified New construction Renovation Industrial Infrastructure Production Residential Non-residential Residential Non-residential ~20% ~35% ~30% ~15% of Sales of Sales of Sales of Sales Management’s best estimate of market exposure in 2018 85
Demand looks promising in most markets looking forward… Outlook for industrial Renovation is Infrastructure spend activity and investments less cyclical and expected to continue driven remains strong outlook remains strong by underlying need Some ~300,000 apartments Continued expansionary Population growth adds to an are in acute need of renovation development in the manufacturing already existing investment industry with a PMI of 57.4 overhang in roads, power, trans- (of a total 2,6 million apartments in multi-family houses). mission, and water and sewage (60.3 in previou s year) systems The government's long-term goal of zero GHG emissions in 2050 Examples: requires energy efficiency • Water and sewage systems: renovations Technical life ~80-100 years. Current replacement cycle is 260 years* • Huge infrastructure projects expected to start in coming years Report ”Vi lagar när det går sönder ” published by Report ”Renoveringskompetens” published July 2018 report by Swedbank and Silf 86 VA-Fakta in 2014 . 2017-11-17 by SBUF and Industrifakta.
…And we remain optimistic on new construction in the long term Population increase, finalised housing units and unit starts Fundamental drivers remain in place for long term growth in new construction 160 000 140 000 Increasing need for new homes 120 000 Around 93 000 new homes needed until 2020 to cover underlying need (67 000 p.a. until 2025) 100 000 Urbanisation continuing with significant urban migration 80 000 57 800 in to cities and suburbs expected to 2025 2018Q2 (RTM) 60 000 Social housing and rental apartments will be key drivers in the coming years 40 000 Large public investment need to accommodate migration 20 000 and urbanisation 0 Schools, hospitals, nurseries, elderly homes, etc. 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Commercial investment level expected to remain high Finalised apartments Unit starts Population increase Report ”Behov av nya bostäder”, Boverket 2018:24 Population increase, unit starts and finalised units; 2018-08-21 - http://www.scb.se 87
Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth 88
Swedish management priorities Added-value services (e.g work-site logistics) … to be the Invest in initiatives … Private labels and sustainability innovation leader Integrate acquisitions and realise synergies … to maximise Acquire … Further acquisitions synergies Improve cost efficiency Invest in processes … to increase Competence development in leadership and sales and governance … efficiency Expansion and modernisation of central warehouse in Hallsberg Invest in multi-channel customer interface Further invest in … to meet future with goal to boost sales in all sales channels proven model … demand Increase cross-sales 89
Strengthen our unique multichannel by being innovation leader Pioneering new concepts with our customers Construction logistics / Logistical services (service platform) / Industry Vendor Managed Inventory (VMI) Branch sales up by E-commerce growing by ~50% 25%* since 2014 Investing in smooth buying process, Higher activity level to attract traffic better product data and new digital services Refurbished branches Experimenting with agile New branches development methods to increase Even broader and more complete throughput of new development assortment Launched innovation lab to drive … all while our competitors are exploration closing branches Acquisition of Proffsmagasinet * In 2017 90
Maximise acquisition synergies Experience of Well-defined tracking and acquisition maximising model synergies corresponding to ~13 M&A targets ~1,1 BSEK realized since listing of sales corresponding to M&A targets of ~19 BSEK varying size in pipeline of sales 91
We are capitalising on our strong position to drive efficiency Operational efficiency realised but partially masked by investment and integration of acquisitions Realising operational leverage Increasing cross sales Revenues per sales FTE Sales efficiency up by Increasing penetration Increased number of of our customers to: multi-category 35% up 30% customers to: Lower cost to same period since 2016 service Increase profitability Increase loyalty Cross sales stable at Costs will consume a lower share of 68% gross profit onwards At constant level despite acquired volumes Sales force efficiency is measured by, among others, Customer visits / external sales Cross sales = customers with at least 5% of their purchases in more 92 rep. and Turnover / external sales rep. than one product segment
Expansion of central warehouse is key to meet future demand Progress according to plan Pipe storage hall finalised Increased capacity for both inventory and production flow Maximum utilization of storage space achieved The current automation system is robust and future-proof The “turn” will be done 2019 New! Plan to further develop the automation system to expand production capacity and efficiency Additional 150 MSEK investments finalisation beginning of 2020 Payback period for full project four years Annual net savings of MSEK 60 when finalized, at current volumes The total investment in the central warehouse will thus amount to approximately 450 MSEK, of which the property owner will finance approximately 200 MSEK. Of the part that will be 93 financed by Ahlsell; MSEK 250, approximately MSEK 15 has already been invested. Of the part that will be financed by the property owner, approximately MSEK 95 has been invested so far.
Safeguard profitable growth while increasing efficiency Tightening the organisation further Prioritise and being smarter: Do more with less – staff, replacements etc. Harvest on acquisitions to realise synergies – e.g. ViaCon Investment in Hallsberg – to increase productivity considerably New telephone system – less resources while offering better customer availability Increase level of smart meetings and conferencing … and much more 94
Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth 95
Rune Flengsrud Head of Operations Norway Joined Ahlsell as Head of Operations Norway in 2015 Previously CEO and SVP Nordics and Baltics at Schneider Electric Engineering degree, NTNU in Gjovik, Norway 96
Ahlsell Norway at a glance Norway is a good place to be Action plan for profitable growth 97
Norway at a glance Sales in % per product segment Distribution form in % of sales Net sales, EBITA and EBITA margin Tools & Supplies 6 000 8 5 710 5 349 5 500 17% Direct from suppliers 5 050 7 4 909 30% 5 000 4 690 4 498 4 500 6 50% Central warehouse 52% HVAC & Plumbing 4 000 5 31% 3 500 Electrical 20% 3 000 4 3,5% Branches 2 500 3 2 000 Branches, end of period Employees, FTE, end of period 1 500 2 1 000 1 400 76 1 80 1 220 1,7% 500 1 200 1 082 1 036 1 012 1 004 1 044 70 61 0 0 1 000 60 55 2013 2014 2015 2016 2017 Q2 2018 51 49 48 50 RTM 800 Adj. EBITA margin, % EBITA, MSEK 40 600 30 Net sales, MSEK EBITA margin, % 400 20 200 E-commerce 29% of sales 10 0 0 2013 2014 2015 2016 2017 Q2 2013 2014 2015 2016 2017 Q2 2018 2018 All figures RTM, if not otherwise stated 98
Proud and engaged employees Motivation Loyalty index index 76 87 Employee survey 2018 made by Ennova. External benchmark (GELx) for motivation and loyalty are 66 and 74 respectively. 99
Position to capitalise on the Ahlsell model Est. additional market size based on current Ahlsell is the only B2B-distributor with an offering growth strategy covering three product segments POTENTIAL FOR FURTHER GROWTH HVAC & P Electrical T&S Company Ahlsell Dahl Heidenreich Elektroskandia Momentum Elektroskandia Est. market size 2015: Dahl Onninen Onninen Würth BSEK ~33 Solar Ahlsell 10% Solar BA Ahlsell 23% Motek Sonepar BA AEO Heidenreich Momentum Ahlsell 10% Sonepar Other Würth Other Other Motek HVAC & P Electrical Tools & S AEO Arrow indicates if Ahlsell has been gaining or loosing market share since 2015 100 Major owners of competitors in brackets: Dahl (St. Gobain), Elektroskandia (Rexel), Onninen (Kesko)
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