Fourth quarter 2017 Presentation February 12

Transcription

1 Fourth quarter 2017 Presentation February 12

2 Overview Troax is the global market leader of indoor perimeters protection ( mesh panel solutions ) Relative market share is ~2.5x larger than #2 player Local presence in 36 countries Troax had a sales CAGR of 16,5% and an organic sales CAGR of 11,6% Strong position in the value chain and low supplier and customer dependency Approx. 36% of total employees work within sales Product offering Troax in brief Financial development, ,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 SALES AND ADJ. EBITA MARGIN 10,2% 60,8 71,7 18,0% 70,1 14,7% 91,2 17,9% 103,7 21,6% 115,8 22,0% 152, Sales MEUR EBITA Margin 25,0% 20,2% 20,0% 15,0% 10,0% 5,0% 0,0% Machine guarding Sales by region (2017) Sales by end-market (2017) Warehouse partitioning Property protection New markets 22% UK 10% Nordics 17% Mainland Europe 51% Warehouse partitioning 21% Property Protection 13% Machine guarding 66%

3 Dividend policy Capital structure Profitability Sales growth Financial targets Financial targets Actuals 2017 YTD Troax objective is to exceed the growth in the Company s current markets through organic growth, as well as selective acquisitions >Market growth Sales growth Organic: 17% M&A: 14% Currency -2% Troax target is to have an operating margin in excess of 20% 20% Adjusted EBITA margin 20,1% Net debt in relation to EBITDA, excluding temporary deviations, shall not exceed 2.5 times. <2,5x Net debt to EBITDA 1,6x Troax target is to pay approximately 50 percent of its net profit in dividends. The dividend proposal shall take into account Troax long-term development potential, it s financial position and its investment needs. 50% Pay-out ratio 50%

4 Summary Q Positive trend from previous quarters continued. Growth in order intake of 17 per cent, or 4 per cent adjusted for acquisition and currency. - Improvement in all regions except UK. Sales increased 29 per cent, or 15 per cent adjusted for acquisition and currency. - All regions increased except UK. Several new important orders received, however less than corresponding quarter last year. Important investment finalised. New PC panel developed and introduced to the market. The group has also decided to increase the manufacturing capacity in Hillerstorp, Sweden. This is due to the good volume development in recent years. Lower result in Q due to less positive impact of sale of bond and pension debt. Lower financial cost in Q4 due to that the group changed existing bond to ordinary bank loan during Q2. One time cost of 2,3 MEUR, accounted for in quarter two. Earnings per share was 0,21 (0,32) EUR, excluding the tax adjustment for US the result per share was 0,32 EUR. Started again to increase market investments. Positive development in all regions excluding UK. Implementation of Folding Guard according to plan. Increase of dividend proposed to 4.25 SEK (3.75) per share.

5 Financial highlights, Group 3 Months 3 Months 12 Months 12 Months 12 Months Oct-Dec Oct-Dec Jan-Dec Jan-Dec Jan-Dec MEUR Order intake 38,4 32,8 152,0 119,6 104,4 Sales 41,0 31,9 152,1 115,8 103,7 Gross profit 15,6 14,0 60,0 48,8 44,6 Gross margin, % 38,0 43,9 39,4 42,1 43,0 Operating profit 8,3 9,4 30,6 25,3 22,4 Operating margin, % 20,2 29,5 20,1 21,8 21,6 Profit after tax 4,1 6,4 17,1 16,3 13,7 EBITDA 9,0 10,4 33,7 28,0 24,6 EBITDA margin, % 22,0 32,6 22,2 24,2 23,7 Net debt / EBITDA 1,6 2,3 1,6 2,3 2,1 Earnings per share after dilution in 0,21 0,32 0,86 0,82 0,69 Closing rate SEK/EUR 9,85 9,57 9,85 9,57 9,14 Earnings per share after dilution in SEK. 1.) 2,02 3,06 8,42 7,80 6,26 All figures from Jan 2017 includes Folding Guard. 1) Earnings per share after dilution in SEK, is calculated based on result in Euro at Closing rate SEK/EUR. 2) Earnings per share 2017 excluding the impact from the lowering of the corporation tax in the USA is 0,32 (Oct-Dec) and 0,97 (Jan-Dec) 3) Earnings per share 2017 excluding the impact from the lowering of the corporation tax in the USA is 3,10 (Oct-Dec) and 9,51 (Jan-Dec)

6 Regional Development Order Intake and Sales 3 Months 3 Months 12 Months 12 Months 12 Months 12 Months Order intake Oct-Dec Oct-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec MEUR Diff Diff Diff Continental Europe 20,0 18,6 8% 77,5 65,5 18% 65,5 56,2 17% Nordic region 7,0 6,2 13% 26,0 22,8 14% 21,4 20,9 2% United Kingdom 3,5 4,5-22% 17,0 18,0-6% 20,3 17,4 17% New Markets 3,5 3,5 0% 14,3 13,3 8% 13,5 9,5 42% Total excl Currency and Acq. 34,0 32,8 4% 134,8 119,6 13% 120,7 104,0 16% Currency effect -0,4 0,0-1% -1,8 0,0-2% -2,8 0,0-3% Acquisitions 4,8 0,0 19,0 0,0 1,7 0,4 Total Order intake 38,4 32,8 17% 152,0 119,6 27% 119,6 104,4 15% 3 Months 3 Months 12 Months 12 Months 12 Months 12 Months Total Sales Oct-Dec Oct-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec MEUR Diff Diff Diff Continental Europe 20,9 17,4 20% 77,1 63,3 22% 63,4 56,0 13% Nordic region 7,7 6,3 22% 25,9 22,4 16% 20,9 20,5 2% United Kingdom 3,6 4,5-20% 17,1 17,6-3% 19,8 17,4 14% New Markets 4,4 3,7 19% 15,0 12,5 20% 12,8 9,4 36% Total excl Currency and Acq. 36,6 31,9 15% 135,1 115,8 17% 116,9 103,3 13% Currency effect -0,4 0,0-1% -1,8 0,0-2% -2,8 0,0-3% Acquisitions 4,8 0,0 18,8 0,0 1,7 0,4 Total Sales 41,0 31,9 29% 152,1 115,8 31% 115,8 103,7 12%

7 Folding Guard Inc. A leading US manufacturer of wire partitions and security solutions. Strong player in the central parts of the US. Folding Guard has as per end of Q4 146 employees. Head office and manufacturing facilities in Chicago. Troax distribution has been moved to FG facilities. Net sales in 2017 amounted to about 19 MEUR. Good distribution network, will give volume opportunities for Troax Group. The two brands will be maintained. Integration so far, is working in a good way. Will though take some time to get the sales synergies we aim for.

8 Conclusion The good development continues also in the fourth quarter. Growth in all regions except UK. Good capacity utilization and volumes continue to drive profitability. Continued good and stable cash flow. Lower financial costs, but higher tax cost due to change of tax rate in the US. Folding Guard implementation according to plan. They will bring a stronger market foothold and local production in USA. Troax will start manufacturing in the US during 2018 of Troax products.

9 Making your world safe. Business Concept To develop innovative safety solutions that protect people, property and processes. Mission Troax is dedicated to exceeding its customers expectations within all areas. Troax s mission is to develop innovative safety solutions that protect people, property and processes. Vision Troax should be the No. 1 choice of innovative safety solutions, the worldleading supplier of mesh panels and have a global presence in all major channels.