Makes it easier to be professional. Q report presentation July 19, 2018

Transcription

1 Makes it easier to be professional Q2 218 report presentation July 19, 218 1

2 Q2: High demand, successful initiatives and strong results Strong organic growth at 8% EBITA margin 8.4% (8.2) Sales up by 18% to 8 56 MSEK EBITA up by 21% to 678 MSEK Strong market Successful initiatives & positive effect from acquisitions Positive Easter effect Diluting effect of acquisitions Strong market Continued high pace of sales initiatives 2

3 Q2: Strong sales growth, primarily driven by organic growth Sweden +16% / +8% Norway +28% / +9% Finland +15% / +5% Sales growth / organic +18% / +8% Underlying market conditions remained strong Construction still strong, however, declining number of housing starts Renovation growth accelerating Industry strong Growth positively affected by acquisitions, working days and currency MSEK MSEK Sales bridge Growth in MSEK and % +18% % +8% +2% +2% MSEK Q2 217 Acquisitions Q1 217 Pf Organic Trading days Currency MSEK Q2 218 Sales bridge per market segment Growth in MSEK and % +18% % +5% +2% % % MSEK MSEK Q2 217 Sweden Norway Finland Denmark Other Q

4 Q2: Profitability at high level Sweden +11.7% (12.) Norway +3.6% (2.) Finland +3.2% (2.6) EBITA margin +8.4% (8.2) Gross margin at 26.3% (26.8) EBITA margin at 8.4% Dilution from acquisitions Continued high pace of sales initiatives Positive currency effect of MSEK 5 Sales, EBITA and EBITA margin Q2 218Q1 217Q4 217Q3 217Q2 217Q1 216Q4 216Q3 216Q2 216Q1 Adjusted EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % EBITA bridge Growth in MSEK and % +21% +59% -7% -31% Q2 217 Net sales effect Gross margin effect Operating expenses Q MSEK 6 4 4

5 H1: Strong sales growth both organic and acquired Sweden +14% Norway +13% Finland +13% Total sales growth +14% Strong sales growth Both organic and acquired Underlying market conditions remained good Construction still strong, however, declining number of housing starts Industry remained strong Stable development in infrastructure MSEK Sales bridge Growth in MSEK and % +14% +5% +8% % +1% MSEK MSEK MSEK YTD 217 Acquisitions Q1 217 Pf Organic Trading days Currency YTD 218 Sales bridge per market segment Growth in MSEK and % +14% +9% +3% +1% % % MSEK MSEK YTD 217 Sweden Norway Finland Denmark Other Q

6 H1: EBITA up by 13%, driven by increased sales Sweden 11.6% (12.) +14% EBITA margin 8.1% (8.1) Sales, EBITA and EBITA margin H1 216H2 216H H H Norway 2.8% (2.4) +15% Finland Finland 2.6% (2.3) +7% Strong net sales effect Stable gross margin Increased operating expenses due to volume increase, acquisitions and market initiatives Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA bridge Growth in MSEK and % +13% 2 +45% -4% -28% EBITA margin, % Q2 217 Net sales effect Gross margin effect Operating expenses Q

7 In total ~796 MSEK in 218 YTD - Acquisitions ~36 MSEK acquired annual sales ~455 MSEK acquired annual sales ~35 MSEK acquired annual sales Of which 35 MSEK closed in July High acquisition activity in combination with organic initiatives bodes well for future profitable growth 7 Estimated net sales (RTM) at acquisition date

8 Sweden Highlights Q2 Strong demand and continued high growth in all product segments Strong development in all product segments Remained high demand in new construction Growth rate in renovation increasing Strong demand from industry customers Successful customer initiatives within SME, private label and PPE One acquisition within Tools & Supplies with ~3 MSEK in annual sales: Bygg & Industripartner Sales, EBITA and EBITA margin , 11, Q2 218Q1 217Q4 217Q3 217Q2 217Q1 216Q4 216Q3 216Q2 216Q1 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Sales bridge Growth in MSEK and % EBITA up 13% Higher sales growth in segments with lower margins % +8% +5% +2% Acquisitions, growth initiatives and a high level of activity impacted negatively EBITA margin at 11.7% (12.%) Q2 217 Organic Acquisitions Trading days Q

9 Norway Highlights Q2 Strong growth and successful customer targeting Sales up 28%, of which 9% organic - Two more trading days and lack of Easter effect contributed Strong demand from industry Positive trend in construction Strong organic growth in Electrical The acquisition of Bekken & Strøm developed well One acquisition within Tools & Supplies with ~4 MSEK in annual sales: Sentrum Motor og Verktøy EBITA margin at 3.6% (2.) Strong sales in segments with lower gross margin Two more trading days and lack of Easter effect had a significant positive impact of MSEK +14 Positive effect from sale of property: MSEK +13 and positive currency translation: MSEK +2 Transaction costs of MSEK -3 related to acquisitions Sales, EBITA and EBITA margin Q1 216Q2 216Q3 216Q4 217Q1 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % 217Q2 Sales bridge Growth in MSEK and % +28% +9% +9% +4% +5% Q3 217Q4 218Q1 218Q Q2 217 Organic Acquisitions Trading days Currency Q

10 Finland Highlights Q2 Good growth Sales up 15%, of which 5% organic Good overall market Strong growth for construction and industry Good demand for HVAC & P. and Tools & S. Initiatives to strengthen position in fast growing regions One acquisition signed within Tools & Supplies with ~35 MSEK in annual sales - Kahipa Oy Sales, EBITA and EBITA margin Q1 216Q4 216Q3 216Q2 216Q Q3 217Q Q Q2 218Q Adj. EBITA down 9% Negative impact by increased sales level with weaker gross margin Operating expenses increased, partly due to investments in branch network and sales initiatives EBITA margin at 3.2% (2.6) Adj. EBITA margin at 3.2% (4.%) Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Sales bridge Growth in MSEK and % % +5% +2% +2% +7% Q2 217 Organic Acquisitions Trading days Currency Q

11 Denmark and Other - Highlights Q2 Denmark Sales up 22%, of which 11% organic Strong refrigeration business driven by higher prices for refrigerants DIY business stable +2 trading days vs. comparative period EBITA margin strong at 16.% (1.3) Sales, EBITA and EBITA margin Q2 218Q1 217Q4 217Q3 217Q2 217Q1 216Q4 216Q3 216Q2 216Q Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Other Sales, EBITA and EBITA margin Sales up 31%, of which 24% organic Strong organic growth in all regions Good market conditions Successful activities to increase sales efficiency and broaden the product offering Adj. EBITA margin at 3.4% (2.3) Q2 218Q1 217Q4 217Q3 217Q2 217Q1 216Q4 216Q3 216Q2 216Q1 Adj. EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % 11

12 12 Financials

13 Sales, profitability and cash conversion Net sales Q2 (SEKbn) Profitability Q2 (SEKbn) Cash conversion Q2 (Operating cash flow / EBITDA) ,4 2,6 2,4 21,8 22,6 24,6 27,5 29, ,% 7,8% 8,8% 8,1% 8,3% 8,7% 8,8% 8,7% 1% 8% 6% 72% 91% 112% 9% 92% 9% 78% 7% 12% 15% 9% 75% 6% % 45% % 3% 15% Q Q2 % Q2 % Net Sales Adj. EBITA Adj. EBITA margin EBITA margin Cash conversion Target 13 Q2 218 is a RTM figure (Rolling twelve months)

14 Other performance measures Leverage External net debt/adjusted EBITDA Q2 RTM Jan-Dec Jan-Dec Equity/Assets ratio, % Investments, % of sales Average working capital, % of sales Return on operating capital, % excluding intangible fixed assets Return on equity, % Return on working capital % Basic earnings per share, SEK Dividend na

15 Near term outlook Overall demand is expected to remain favourable for Ahlsell in the coming quarters Strong demand within industry and infrastructure Increasing activity level in renovation Remained high activity level within new construction, despite declining building starts in new residential Johan Nilsson, CEO 15

16 Registration open! Capital Markets Day September 4, 218 Stockholm 16

17 17 Q&A

18 18 Appendix

19 Q2 overview RTM 217 Q2 Q2 H1 H1 FY Net sales, MSEK 8,56 6,818 18% 15,217 13,387 14% 29,315 27,484 Operating profit, EBIT % 1, % 2,172 2,43 Profit (EBITA), MSEK % 1,231 1,88 13% 2,537 2,394 Adjusted EBITA, MSEK % 1,231 1,99 12% 2,537 2,45 EBITA margin, % 8.4% 8.2% 8.1% 8.1% 8.7% 8.7% Adjusted EBITA margin, % 8.4% 8.4% 8.1% 8.2% 8.7% 8.8% Profit after tax (profit for the period), MSEK % % 1,616 1,428 Diluted earnings per share, SEK Operating cash flow % % 1,893 1,991 Operating cash flow/ebitda (Cash conversion) 7% 78% External net debt/adjusted EBITDA Sales, EBITA and EBITA margin Q2 218Q1 217Q4 217Q3 217Q2 217Q1 216Q4 216Q3 216Q2 216Q1 Adjusted EBITA margin, % Net sales, MSEK EBITA, MSEK EBITA margin, % Organic growth, % % 8% 8% 5% Q2 218Q1 217Q4 217Q3 217Q2 217Q1 216Q4 216Q3 216Q2 216Q1 215Q4 215Q3 215Q2 215Q1 214Q4 214Q3 214Q2 214Q1 Group Sweden Norway Finland 19 RTM = Rolling twelve months

20 Condensed Income Statement Rolling Full year MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun 12 months 217 Net sales 8,56 6,818 15,217 13,387 29,315 27,484 Cost of goods sold -5,94-4,994-11,155-9,778-21,438-2,62 Gross profit 2,116 1,825 4,62 3,68 7,876 7,423 Selling expenses -1,431-1,257-2,87-2,493-5,276-4,962 Administration expenses Other operating income and expenses Operating profit, EBIT , ,172 2,43 Net financial items Profit before tax ,952 1,834 Income tax Profit/loss for the period ,616 1,428 Attributable to - Owners of the parent company ,616 1,428 - Non-controlling interests Basic earnings per share, SEK Diluted earnings per share, SEK

21 Condensed Balance Sheet MSEK 3 Jun % 3 Jun 31 Dec ASSETS Customer relationships 3,2 11% 3,86 2,929 Trademark 3,837 14% 3,837 3,837 Goodwill 7,836 29% 7,64 7,26 Other intangible assets 149 1% Property, plant and equipment 91 3% Financial assets 13 % 78 1 Deferred tax assets 9 % 7 8 Total non-current assets 15,756 58% 15,2 14,98 Inventories 4,174 15% 3,36 3,888 Trade receivables 4,384 16% 3,6 3,491 Other receivables 1,434 5% 1,143 1,22 Cash and cash equivalents 1,355 5% 957 1,295 Total current assets 11,348 42% 9,6 9,894 TOTAL ASSETS 27,14 1% 24,61 24, MSEK 3 Jun % 3 Jun 31 Dec EQUITY AND LIABILITIES Equity 9,49 35% 8,568 9,4 Non-current interest-bearing liabilities 8,87 32% 7,93 7,934 Provisions 56 % Deferred tax liabilities 1,42 5% 1,392 1,494 Other non-current liabilities 41 % Total non-current liabilities 1,36 38% 9,45 9,512 Current interest-bearing liabilities 57 2% Trade payables 5,627 21% 4,78 5,218 Provisions 8 % 19 1 Other current liabilities 1,246 5% 961 1,79 Total current liabilities 7,388 27% 6,88 6,358 TOTAL EQUITY AND LIABILITIES 27,14 1% 24,61 24,874 21

22 Condensed Cash Flow Statement Rolling Full year MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun 12 months 217 Profit after financial items ,952 1,834 Adjustments for non-cash items Tax paid Cash flow from operating activities before changes in working capital ,286 2,193 Change in inventories Change in operating receivables Change in operating liabilities Cash flow from changes in working capital Cash flow from operating activities ,721 1,861 Cash flow from investing activities , Cash flow before financing activities ,32 Dividend paid Issued warrants Repurchase of shares Proceeds from borrowings 75 1,225 2, Repayment of borrowings ,392-1,712 Cash flow from financing activities ,235 CASH FLOW FOR THE PERIOD Cash and cash equivalents at beginning of period 1,88 1,375 1,295 1, ,29 Exchange differences Cash and cash equivalents at end of period 1, , ,355 1,295 22

23 Market development GDP growth Per country, fixed prices, calendar-adjusted ,21,1 -,8 2,7 2,1 -,6 4,3 1,8,1 3, 1, 2,3 2,7 2,5 2,5 2, 2,9 1,8 1,9 1,9 1, e 219e Sweden Norway Finland Industrial indicators Sweden PMI 54.2 (62.4) Norway PMI 55.8 (56.1) Finland Manufacturing confidence 14 (9) Manufacturing next 3 months 26 (22) Total construction investments Infrastructure, residential and commercial, index 215= Sweden Norway Finland e 219e 23 Konjunkturinstitutet , konj.se Sweden: Swedbank & Silf, Source: The Swedish Construction Federation Norway: DNB & Nima For Norway and Finland: Sveriges Byggindustrier Nordisk Byggkonjunktur Finland: Confederation of For Sweden: Sveriges Byggindustrier Byggkonjunkturen Finnish industries

24 Shareholders sorted by Euroclear s official share register for directly and trustee registered shareholders + known custody names Investor Name Position % 1 CVC / Keravel SARL ,1% 2 Norges Bank ,5% 3 AMF Försäkring ,1% 4 JP Chase NA ,9% 5 Odin Fonder ,8% 6 Alecta Pensionsförsäkring 11 2,5% 7 SEB Investment Management ,5% 8 Handelsbanken Fonder ,8% 9 Swedbank Robur fonder ,7% Ahlsell AB 7 1,6% 1 Afa försäkring ,3% 11 Kirkbi Invest ,1% 12 Nordea Investment Funds ,1% 13 Lannebo fonder ,% 14 Andra AP-fonden ,% 15 Folksam ,8% 16 JP Morgan Bank Luxembourg ,8% 17 Danica Pension ,8% 18 Profun Förvaltning ,7% 19 Catella Fondförvaltning ,7% 2 Skarvhagen Förvaltnings AB 2 9,7% 21 Kuwait Investment Authority ,6% 22 Nordea ,6% 23 Tredje AP-fonden ,5% 24 Threadneedle LUX ,4% 25 Kammarkollegiet ,4% 26 Bodenholm ,3% 27 Skandia Fonder ,3% 28 Berenberg Gossler ,3% 29 Länsförsäkringar fondförvaltning AB ,3% 3 SPP fonder ,3% Other ,4% Shares outstanding % % of capital Sweden Luxembourg UK US Other 13% 3% 14% 15% 28% 24

25 Trading days 217 Q1 Q2 Q3 Q4 H1 H2 FY Sweden Norway Finland Denmark * Q1 Q2 Q3 Q4 H1 H2 FY Sweden Norway Finland Denmark * Q1 Q2 Q3 Q4 H1 H2 FY Sweden Norway Finland Denmark

26 Merger & Acquisitions 217-present Closing Acquisitions Country Product segment Annual sales SEK million a Number of employees b 28/2/217 G-ESS Yrkeskläder AB Sweden Tools & Supplies Strengthen position in professional workwear position in the Stockholm area 2/5/217 C.J. Järn & Maskin AB Sweden Tools & Supplies Strengthens position in the region of Vårgårda. Good opportunities for cross-selling to mainly industrial customers Rationale 1/6/217 Svensk Industri & Kommunservice AB Sweden Tools & Supplies Attractive customer base with many customers within public administration. Broaden offer in PPE. 2/1/217 Lenson Elektro AS Norway Electrical 23 5 Increase exposure to electrical installations such as power, lighting and climate. 1/11/217 ViaCon VA (assets and liabilities) Sweden HVAC & Plumbing Valuable expertise in Water & Sewage operations. Strengthens initiatives to attractive customer segments. 1/12/217 Gehås AB (assets and liabilities) Sweden Tools & Supplies 15 6 Strengthen position within PPE in Värmland 4/12/217 Infästningsspecialisten Göteborg AB Sweden Tools & Supplies 28 8 Strong position within fastening solutions and related tools to SMID customers 28/12/217 Nordic Sprinkler AB, Enexia AB, Prepipe Construction AB Sweden HVAC & Plumbing 8 21 Ahlsell is a relatively small player in sprinkler systems, and the acquisition will strengthen our presence 28/12/217 Enexia Oy Finland HVAC & Plumbing 4 8 Same as Nordic Sprinkler 29/12/217 Jobline i Umeå AB Sweden Tools & Supplies 26 8 Strengthen position within PPE in Umeå and surroundings, north of Sweden 29/12/217 SAFE Workwear Sweden AB Sweden Tools & Supplies 24 9 Safe Workwear strengthens our presence in both Stockholm and the region of Mälardalen 217: 777 MSEK 16/1/218 Proffsmagasinet AB Sweden Tools & Supplies 26 5 Leading Nordic e-commerce business - we get further knowledge on new ways of meeting professional customers 1/2/218 HMK i Västerås AB Sweden Tools & Supplies 16 8 Wide range of well-known brands in workwear and personal protection in Västerås 2/2//218 Bekken & Strøm AS Norway Tools & Supplies Leading Norwegian supplier of workwear and personal protective equipment (PPE) 2/5/218 Sentrum Motor och Verktøy AS Norway Tools & Supplies 4 9 Gives Ahlsell a strong foothold in Tools & Supplies and improves the conditions for growth within HVAC & Plumbing in the Finnmark region 31/5/218 Bygg & IndustriPartner Skaraborg AB Sweden Tools & Supplies 3 7 Strengthen position in tools and supplies in Skövde with surroundings 2/7/218 Kahipa Oy Finland Tools & Supplies 35 7 Gain specialist competence within HVAC brackets in Southern parts of Finland 218 YTD: 796 MSEK 26 Full list of acquisitions can be found on

27 Introduction to the presenting team Johan Nilsson CEO Appointed Group CEO in 215 CEO Ahlsell Sweden Joined Ahlsell in 28 Previously: CCO of Sanitec, CEO of IFÖ Sanitär and IDO Kennet Göransson CFO Joined Ahlsell in 214 Held equivalent positions with Indutrade, Addtech and Bergman & Beving Karin Larsson Head of IR Joined Ahlsell in 217 Previous positions: IRO at Atlas Copco Stockholm, equity sales at SEB Enskilda and Baclays capital, Frankfurt 27

28 Disclaimer Some statements are forward-looking and the actual outcome can be different. In addition to the factors explicitly commented upon, the actual outcome may be affected by other factors such as macroeconomic conditions, movements in foreign exchange- and interest-rates, political risks, competitor behaviour, supply- and IT-disturbances. 28