THIRD QUARTER 2018 PRESENTATION NOVEMBER 8

Transcription

1 THIRD QUARTER 2018 PRESENTATION NOVEMBER 8

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: 8% M&A: 0% Currency -3% Troax target is to have an operating margin in excess of 20% 20% Adjusted EBITA margin 19,3% 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 NA

4 SUMMARY Q Positive development, similar or better than previous quarters Growth in order intake of 15 per cent, excluding currency changes. - Improvement in all regions. - Continued lower demand from automotive sector. Sales increased 14 per cent, excluding currency changes. - All regions increased excluding UK, which was on same level. Several new important orders received. Manufacturing of Troax products in Chicago, has started and is in a test phase. The new welding line is being commissioned and will be taken into operation in the beginning of January, as informed earlier. The group has also taken a new investment decision based on the good volume development in recent years. We will invest 6,5 MEUR in a new extension of the manufacturing site in Hillerstorp. This extension is aimed to increase the warehouse space and to further increase the efficiency of the picking and packing department. A higher EBIT result and margin Q was recorded compared to LY, mainly due to higher invoicing and good capacity utilization. Higher Net result. Earnings per share was 0,31 (0,27) EUR. Positive development in all regions. Implementation of Folding Guard according to plan, but slightly delayed. The turbulence coming from the implemented custom duties in the US in quarter two has decreased in Q3. Prices have been increased and most of the custom duties have been compensated.

5 FINANCIAL HIGHLIGHTS, GROUP 3 Months 3 Months 9 Months 9 Months 12 Months 12 Months 12 Months Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec Jan-Dec Okt-Sep MEUR /18 Order intake 40,1 35,3 123,3 113,6 152,0 119,6 161,7 Sales 39,7 35,2 117,5 111,1 152,1 115,8 158,5 Gross profit 15,9 14,4 46,2 44,5 60,0 48,8 61,7 Gross margin, % 40,1 40,9 39,3 40,1 39,4 42,1 38,9 Operating profit 8,6 7,5 22,7 22,3 30,6 25,3 31,0 Operating margin, % 21,7 21,3 19,3 20,1 20,1 21,8 19,6 Profit after tax 6,3 5,3 16,5 13,0 17,0 16,3 20,5 EBITDA 9,2 8,3 24,7 24,7 33,7 28,0 33,7 EBITDA margin, % 23,2 23,6 21,0 22,2 22,2 24,2 21,3 Net debt / EBITDA 1,6 2,3 1,6 Earnings per share after dilution in 0,31 0,27 0,82 0,65 0,85 0,82 1,02 Closing rate SEK/EUR 10,29 9,57 10,29 9,57 9,85 9,57 10,29 Earnings per share after dilution in SEK. 1.) 3,24 2,54 8,49 6,22 8,42 7,84 10,69 1) Earnings per share after dilution in SEK, is calculated based on result in Euro at Closing rate SEK/EUR.

6 REGIONAL DEVELOPMENT ORDER INTAKE AND SALES 3 Months 3 Months 9 Months 9 Months 12 Months 12 Months 12 Months Order intake Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec Jan-Dec Okt-Sep MEUR Diff Diff Diff 2017/2018 Continental Europe 21,3 17,7 20% 65,7 57,6 14% 77,5 65,5 18% 85,6 Nordic region 5,9 5,5 7% 19,9 18,8 6% 26,0 22,8 14% 27,1 United Kingdom 4,3 4,1 5% 14,0 12,4 13% 17,0 18,0-6% 18,6 North America 6,4 6,1 5% 19,7 18,6 6% 25,0 5,7 339% 26,1 New Markets 2,7 1,9 42% 6,9 6,2 11% 8,3 7,6 9% 9,0 Total excl Currency and Acq. 40,6 35,3 15% 126,2 113,6 11% 153,8 119,6 29% 166,4 Currency effect -0,5 0,0-1% -2,9 0,0-3% -1,8 0,0-2% -4,7 Order intake acquisitions 0,0 0,0 0% 0,0 0,0 0,0 0,0 0% 0,0 Total Order intake 40,1 35,3 14% 123,3 113,6 9% 152,0 119,6 27% 161,7 3 Months 3 Months 9 Months 9 Months 12 Months 12 Months 12 Months Total Sales Jul-Sep Jul-Sep Jan-Sep Jan-Jun Jan-Dec Jan-Dec Okt-Sep MEUR Diff Diff Diff 2017/2018 Continental Europe 20,8 17,5 19% 62,5 56,1 11% 77,1 63,3 19% 83,5 Nordic region 6,0 5,7 5% 18,8 18,0 4% 25,9 22,4 16% 26,7 United Kingdom 4,2 4,2 0% 13,1 12,4 6% 17,1 17,6-3% 17,8 North America 6,4 5,6 14% 18,9 18,2 4% 25,0 5,2 381% 25,7 New Markets 2,6 2,2 18% 6,8 6,4 6% 8,8 7,3 21% 9,2 Total excl Currency and Acq. 40,0 35,2 14% 120,1 111,1 8% 153,9 115,8 33% 162,9 Currency effect -0,5 0,0-1% -2,8 0,0-3% -1,8 0,0-2% -4,6 Sales acquisitions / IFRS 15 adjustment 0,2 0,0 1% 0,2 0,0 0,0 0,0 0% 0,2 Total Sales 39,7 35,2 13% 117,5 111,1 6% 152,1 115,8 31% 158,5 * Note that we report organic growth excluding currency effect. ** All figures from 2017 and 2018 includes Folding Guard.

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8 CONCLUSION The good development continues also in the third quarter of 2018, even if market demand has levelled out. Good capacity utilization and volumes continue to drive profitability. Continued good and stable cash flow. Lower financial costs, due to refinancing in Folding Guard implementation according to plan, albeit slightly delayed. Troax has started test manufacturing of Troax products in the US during Q Capacity increase in Sweden under implementation. An additional investment has been decided regarding extension of warehouse capacity and improvement.

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.

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