SECOND QUARTER 2018 PRESENTATION AUGUST 15

Transcription

1 SECOND QUARTER 2018 PRESENTATION AUGUST 15

2 SALES AND ADJ. EBITA MARGIN TROAX IN BRIEF FINANCIAL DEVELOPMENT, 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 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 25,0% 22,0% 20,2% 21,6% 20,0% 18,0% 17,9% 152,1 115,8 14,7% 103,7 15,0% 10,2% 91,2 10,0% 70,1 60,8 71,7 5,0% 0,0% Approx. 36% of total employees work within sales Sales MEUR EBITA Margin PRODUCT OFFERING Machine guarding SALES BY REGION (2017) SALES BY END-MARKET (2017) Warehouse partitioning Property protection

3 Dividend policy Capital structure Profitability Sales growth FINANCIAL TARGETS Financial targets Actuals 2018 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: 6% M&A: 0% Currency -3% Troax target is to have an operating margin in excess of 20% 20% Adjusted EBITA margin 18,1% Net debt in relation to EBITDA, excluding temporary deviations, shall not exceed 2.5 times. <2,5x Net debt to EBITDA 1,8x 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 NA

4 SUMMARY Q Positive trend from previous quarters continued. Growth in order intake of 10 per cent, excluding currency changes. - Improvement in all regions, including UK. - Lower demand from automotive sector compared to Q Sales increased 5 per cent, excluding currency changes. - All regions increased excluding new markets. Several new important orders received. Manufacturing of Troax products in Chicago, under implementation. The group is investing to increase the manufacturing capacity in Hillerstorp, Sweden. This is due to the good volume development in recent years. Slightly lower EBIT result and margin Q compared to LY. Higher Net result. Earnings per share was 0,28 (0,19) EUR. Positive development in all regions. Implementation of Folding Guard according to plan, but slightly delayed. Turbulent quarter in the USA related to steel price increases because of import duties.

5 FINANCIAL HIGHLIGHTS, GROUP

6 REGIONAL DEVELOPMENT ORDER INTAKE AND SALES 3 Months 3 Months 6 Months 6 Months 12 Months 12 Months 12 Months Order intake Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Jan-Dec Jul-Jun MEUR Diff Diff Diff 2017/2018 Continental Europe 22,2 21,0 6% 44,4 39,9 11% 77,5 65,5 18% 82,0 Nordic region 7,3 6,8 7% 14,0 13,3 5% 26,0 22,8 14% 26,7 United Kingdom 5,4 3,8 42% 9,7 8,3 17% 17,0 18,0-6% 18,4 North America 6,7 6,0 12% 13,3 12,5 6% 25,0 5,7 339% 25,8 New Markets 2,3 2,2 5% 4,2 4,3-2% 8,3 7,6 9% 8,2 Total excl Currency and Acq. 43,9 39,8 10% 85,6 78,3 9% 153,8 119,6 29% 161,1 Currency effect -1,0 0,0-3% -2,4 0,0-3% -1,8 0,0-2% -4,2 Order intake acquisitions 0,0 0,0 0% 0,0 0,0 0,0 0,0 0% 0,0 Total Order intake 42,9 39,8 8% 83,2 78,3 6% 152,0 119,6 27% 156,9 3 Months 3 Months 6 Months 6 Months 12 Months 12 Months 12 Months Total Sales Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Jan-Dec Jul-Jun MEUR Diff Diff Diff 2017/2018 Continental Europe 21,4 20,4 5% 41,7 38,6 8% 77,1 63,3 19% 80,2 Nordic region 6,7 6,5 3% 12,8 12,3 4% 25,9 22,4 16% 26,4 United Kingdom 4,9 4,1 20% 8,9 8,2 9% 17,1 17,6-3% 17,8 North America 6,2 6,0 3% 12,5 12,6-1% 25,0 5,2 381% 24,9 New Markets 2,5 2,6-4% 4,2 4,2 0% 8,8 7,3 21% 8,8 Total excl Currency and Acq. 41,7 39,6 5% 80,1 75,9 6% 153,9 115,8 33% 158,1 Currency effect -1,0 0,0-3% -2,3 0,0-3% -1,8 0,0-2% -4,1 Sales acquisitions / IFRS 15 adjustment 0,4 0,0 1% 0,0 0,0 0,0 0,0 0% -0,4 Total Sales 41,1 39,6 4% 77,8 75,9 3% 152,1 115,8 31% 153,6 * Note that we report organic growth excluding currency effect. ** All figures from 2017 and 2018 includes Folding Guard.

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 Q2 127 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 slightly longer time to get the sales synergies we aim for. The new organisation is starting to get formed.

8 CONCLUSION The good development continues also in the second quarter of 2018, even if market demand has levelled out. Good capacity utilization and volumes continue to drive profitability. Extra costs in the manufacturing units due to excess volume demand. Continued good and stable cash flow. Lower financial costs, due to refinancing in Folding Guard implementation according to plan, albeit slightly delayed. Troax will start manufacturing Troax products in the US during Q Capacity increase in Sweden under implementation.

9 MAKING YOUR WORLD SAFE. BUSINESS CONCEPT To develop innovative safety solutions that protect people, property and processes. MISSION 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. 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.