Q1 2018 PPT External...A market leading position. 6. Number of branches. Local shops with warehouse,...
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lindab | we simplify construction Lindab Group Leading solutions for buildings of the future
Transcript of Q1 2018 PPT External...A market leading position. 6. Number of branches. Local shops with warehouse,...
lindab | we simplify construction
Lindab GroupLeading solutions for
buildings of the future
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A long and successful history
1959 1970 2006 2013 2016 2017
1959The foundation of the company in Grevie, Sweden
1970Continental expansion
2006IPO, OMX Nasdaq, Stockholm
2016UltraLink and Digitisation &Connectivity
2017Focus on Energy & Climate Solutions
2013ONE Lindab replaces 3 business areas
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Digitalising and transforming our business is underwayEnabling the transformation
Products
Manual
Commoditise
Product centric
Fragmented
From
Solutions
Digitalised
Value creating
Customer centric
Integrated
To
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Our long-term targetsFinancial Targets
5–8%
Annual growth1
10%
Operating margin
<2,5
Net debt to EBITDA
Attractive employer
Lower carbon emissions
Better working environment
2015 2016 2017
2.23.1
2.56.26.1
2015 2016
6.5
2017
6.2
2015 2016 2017
3.74.3
20172015 2016
9.47.99.1
0.54
2015 2016
0.68
2017
0.54
2015 20172016
11.69.38.8
Gender structure management/employees
Tonnes of CO2/SEK m (Base year: 2009 =10.7)
Lost Time Injury Frequency (LTIF)2Dividend policy 30% of the company's net profit
Non-financial Targets
1) Organic growth + structure2) LTIF: The number of lost time injuries occurring in a workplace per 1 million hours worked
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135 branches
32 countries
3,000 retailers
We are alwaysnearby
Expandingthe valueproposition
A new way ofThinking
24,000unique customers each year
New ways to Increase
customer value
5,100number ofemployees
Having the best team
Efficient distribution that simplifies for our customers
On-timeDeliveries
A market leading position
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Number of branchesLocal shops with warehouse, sales office and competence centre for our products, systems and solutions.
Central productionStrategically located production units that also double as logistics centres.
Local productionSmaller units adapted to meet local customer requirements with a great deal of flexibility.
Market overview
252
16
31
309
8
6
5
1
11
1
1
21
1
43
2
1
1
1
2
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Growth
3% 46%
Nordic
Growth
4% 33%
Western Europe
Growth
13% 18%
CEE/CIS2
3%
Other Markets
Growth
10%
Share of net sales by segment3
Products & Solutions 89%
Building Systems 11%
Sales growth 20171
Share of net sales
Non-residential construction 80%
Residential construction 20%
1) Information refers to growth in net sales and sales in share of total net sales.2) CEE = Central and Eastern Europe, CIS = Commonwealth of Independent States (former republics of the Soviet Union).3) Lindab’s business is divided into two separate segments with different business models, brands and customer groups.
Our customer offering
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Global mega trends supports growth
High population growth and continued
urbanisation
High focus on energy regulations, IAQ1 and
environmental requirements
Fast development of new materials and processes
New technology paves the way for
intelligent buildings
New global economic patterns
are emerging
1) IAQ = Indoor Air Quality
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4. Complete HVAC1-solutions0. Products
2. Smart connected products1. Smart products
3. Customer segment solutions
Complete solutions and preferred partner
Quality and service
Products that communicate
with each other
Products that work together
New business models
From products to complete solutionsFrom traditional products to complete solutions developed through platform thinking
1) HVAC: Heating, Ventilation, and Air conditioning.
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1.0
2.0
3.0
4.0
• Products that work together• Faster installation
• Complete HVAC solutions• Zero energy consumption
Deg
ree
of V
alue
Degree of Solution
• Products that communicate with each other• System integration
• New business models• Higher digitalisation
Our strategy is built on 4 platforms
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Offices and schools
Complete solutions for specific customer segments
Residential Marine sector Industrial premises Shopping malls
Hospitals Hotels Leisure activities
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Value-creating ventilation
solutions and an industry-
leading brand
Build strong market
positions in prioritised markets
New business models for intelligent buildings
HVAC growth driven by mega
trends
Strong driving forces for profitable growth
Financial information 2017
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Share of net sales by region
Nordic region 46%
Western Europe 33%CEE/CIS 18%
Other markets 3%
Cash flow
SEK 410MCash flow from operating activities fell by 17.8% to SEK 410 m (499).
Operating margin
6,2%Operating margin excluding one-off items and restructuring costs amounted to 6.2% (6.5).
Operating profit
SEK 511MExcluding one-off items and restructuring costs of SEK –19 m (–28) the operating profit amounted to SEK 511 m (511).
Net sales
SEK 8,2BNNet sales increased by 5.0% to SEK 8,242 m (7,849). Organic growth amounted to 4.0 percent.
0
5,02.0004.0006.0008.000
2,5
7,5
10,0
2014
MSEK
2013
%
2015 2016 2017
Net sales Operating margin (EBIT)
Net sales, operating margin2013-2017
Lindab Group 2017
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Nordic region 51%
Western Europe 32%CEE/CIS 15%
Other markets 2%
Operating margin
8,0%Operating margin excluding one-off items and restructuring costs amounted to 8.0% (8.1).
Number of branches
135branchesLindab’s European branch network is an important competitive advantage. At the year end 2017, the network comprised 135 branches (136).
Share of net sales by regionOperating profit
SEK 590MExcluding one-off items and restructuring costs of SEK –0 m (–24) the operating profit increased to SEK 590 m (565).
Net sales
SEK 7,4BNNet sales increased by 5.9% to SEK 7,360 m (6,949). Growth in all regions, strongest in the CEE region.
Net sales, operating margin2013-2017
2,52.000
7,56.000
0
4.000
8.000
5,0
10,0
2014
MSEK %
2013 2015 2016 2017
Net sales Operating margin (EBIT)
Products & Solutions 2017
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Operating margin
-4,8%Operating margin excluding one-off items and restructuring costs decreased to –4.8% (–1.3).
Net sales
SEK 0,9MNet sales decreased by 2.0% to SEK 882 m (900). Strong in the CIS region, weak in Western Europe.
Nordic region 1%
Western Europe 38%CEE/CIS 50%
Other markets 11%
Number of countries
34countriesContinued market diversification meant that sales covered 34 countries (33) in 2017.
Share of net sales by regionOperating profit
SEK -42MExcluding one-off items and restructuring costs of SEK 0 m (0) the operating profit decreased to SEK –42 m (–12).
Net sales, operating margin2013-2017
3000
900
-5
1.200
600051015
2016
MSEK %
2013 2014 2015 2017
Net sales Operating margin (EBIT)
Building Systems 2017
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Our short term focus – Prioritised areas
Price increases1
Turnaround Building Systems2
Address low performing units 3
Energy & Climate Solutions4
Strategic assessment5
Our strategy
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Market excellence
Through our distribution network and broad offering, we will advance our positions in prioritised markets.
EfficientAvailability
We must build an efficient supply chain, from raw material purchases to the delivery of finished products.
Solutions
In our prioritised markets we must be the leading supplier of ventilation and indoor climate solutions.
Innovation
In all areas of the business, we aim to create a culture of innovation in order to generate ideas and improvements.
People
Through leadership and a strong corporate culture, we will ensure that we have the best team for our business.
Strategic Drives - 5 Focus Areas
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StreamliningFocus on our core business.
Complete solution SalesFrom traditional products to complete solutions and preferred partner.
AcquisitionsMarket-leading positions and complementary products/technology.
Cost efficiency An efficient business platform.
Our strategy for profitable growth
Organisation
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Lindab’s largest shareholders
Shareholders SharesCapital &votes, %
Creades AB 7,929,322 10.4
Fjärde AP-fonden 7,516,491 9.8
Lannebo Fonder 6,970,113 9.3
Handelsbanken Fonder 6,215,982 7.9
IF Skadeförsäkring 3,890,055 5.1
Skandia 3,884,146 5.1
The largest shareholders1 Distribution of ownership, %
Sweden, 72 (76)
Rest of the world, 28 (24)
Financial companies, 38 (41)
Other legal entities, 15 (18)
Foreign shareholders, 28 (24)
Private individuals, 7 (7)
Pension funds, 10 (8)
Associations, 2 (2)
1) As of 31 December 2017
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Executive management
Malin Samuelsson
Executive Vice President and CFO
Ola Ringdahl
President and CEO
Olof Christensson
Executive Vice President of Energy and Climate Solutions
Bengt Andersson
Executive Vice President of Corporate Development
Fredrik Liedholm
Executive Vice President and General Counsel, M&A and HR Director.
