lindab group presentation Lindab Group presentation Q3 2010 David Brodetsky, CEO Nils-Johan Andersson, CFO
Agenda Highlights Group Business Areas Strategy Trends and outlook Q & A 2
Lindab Group Highlights Q3 Financial Profit & loss Sales increased 8% (adjusted for structure and currency) EBIT up 46% from SEK 145 m to SEK 212 m, excluding one time items, mainly due to sales increase Steel cost increases recovered in sales prices Cash Operational Cash flow was SEK 172 m (SEK 329 m). Lower inflow due to stock increase (steel prices) 3
Lindab Group Highlights Q3 Market Confirmation of previous trends Ventilation Markets weak but stable Building Components Good demand in residential segment. Sweden stands out. Best month on record in Sweden in September Building Systems Improved sales due to CEE and Russia/CIS. Signals in Russia remain good 4
Lindab Group Profit & Loss Q3 2010 - Group Period SEK m 10 09 Sales 1 881 1 825 EBIT* ) 212 145 EBIT margin %* ) 11.3 7.9 Fin. net -46-34 Tax -45-39 Net profit +114 +37 Sales growth 3% Structure 1% Currency effect -6% Volume / price 8% * ) Q3 2010 EBIT excludes one offs of SEK -7 m and 2009 EBIT excludes one-offs of SEK -35 m Main explanation higher profit: increased volume Financial net higher due to higher interest rates Tax level normalised 27% 5
Lindab Group Quarterly operating profit (EBIT) SEK m 600 400 200 0-200 20 130 365 286 235 283 330 424 376 396458 174 185 207 218 85 25 97 145 34-50 110 212 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2007 2008 2009 2010 1500 1000 500 0-500 Quarterly LTM Seasonal impact Q1 lowest result, Q3 highest result EBIT LTM SEK 306 m, EBIT margin 4.8% Note. figures excl. one time items 6
Lindab Group Cash flow Q3 2010 July - Sept 2010 July - Sept 2009 Cash flow from - operating activities 324 201 - change in working capital -92 176 - investing activities -43-7 - financial net paid -47-14 - tax paid -13-34 Free cash flow 129 322 1) Proforma free cash flow 129 308 1) Free cash flow 2009 adjusted for additional divestment Folke Perforering SEK 14 m 7
Lindab Group Cash flow Q3 working capital development 2010 2009 July - Sep July - Sep Stock -141 171 Operating receivables 28 8 Operating liabilities 21-3 Total change in working capital -92 176 Stock higher mainly because increased steel prices 8
Quarter 700 600 500 400 300 200 100 0-100 -200-300 Lindab Group Cash flow trend Operating cash flow, SEK m Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2003 2004 2005 2006 2007 2008 2009 2010 Rolling 12 month 1400 1200 1000 800 600 400 200 0-200 -400-600 LTM cash flow from operating activities amounted to SEK 312 m 9
Lindab Group Steel Business Briefing Ltd (SBB) 900 800 HDG SBB NE & CRU DE /ton 700 600 500 400 300 200 100 0 Substantial steel price increases in Q3 for Lindab 10
Business Areas 11
BA Ventilation Profit & Loss Q3 2010 Period SEK m 10 09 Sales 924 953 EBIT *) 70 76 EBIT margin % 7.6 8.0 Sales growth -3% Structure 2% Currency effect -6% Volume / price 1% * ) excluding one time cost of SEK 7 m in Q3 2010 and SEK 19 m in Q3 2009 Lower gross margin partially compensated by lower cost One time cost, restructuring production in US 12
BA Building Components Profit & Loss Q3 2010 Period SEK m 10 09 Sales 695 650 EBIT 123 93 EBIT margin % 17.7 14.3 Sales growth 7% Structure 0% Currency effect -6% Volume / price 13% Main explanation improved result, higher volumes Good operating leverage, cost under control 13
BA Building Systems Profit & Loss Q3 2010 Period SEK m 10 09 Sales 262 219 EBIT *) 28-12 EBIT margin % 10.7-5.5 Sales growth 20% Structure 0% Currency effect -9% Volume / price 29% * ) excluding one time cost of SEK 26 m in Q3 2009 Higher result due to higher volumes and margin Cost unchanged compared to Q3 2009 14
Strategy 15
Revised strategy action examples Ventilation Improve profitability. Additional10 000 m 2 production space in Czech Republic to move labor intensive products from Q2 2011 16
Revised strategy action examples Building Components Focus on residential 10 Rainline centers opened in Q3 (>40YTD) 17
Revised strategy action examples Building Systems Focus on Russia. Capacity and efficiency improvement - Yaroslavl, Russia 18
Trends and outlook 19
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep l i n d a b Lindab Group Seasonally adjusted sales trend by month Q3 higher than same period last year and seasonally adjusted sales level has stabilised since May Q2 was boosted by catch-up effect underlying sales trend still positive The currency effect was -6% in Q3 vs. same period last year 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 Monthly Sales Seasonally and calendar adjusted The Swedish market continues to lead the recovery 0 2009 2010 20
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep l i n d a b BA Ventilation Seasonally adjusted sales trend by month Stable overall sales trend, though large variations between individual markets Positive trend in Sweden and Finland. Stable in Germany and UK. Weak in Denmark. The currency effect was -6% in Q3 vs. same period last year 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 Monthly Sales Seasonally and calendar adjusted The non-residential market remains weak 500 0 2009 2010 21
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep l i n d a b BA Building Components Seasonally adjusted sales trend by month Sales level clearly above last year mainly residential Q2 was boosted by catch-up effect underlying sales trend still positive Strong sales development in the Nordic region while CEE/CIS is improving more slowly The Swedish market leads the recovery; best ever sales month in September 3 000 2 500 2 000 1 500 1 000 500 Monthly Sales Seasonally and calendar adjusted Estimated underlying trend Danish market starting to show signs of improvement The currency effect was -6% in Q3 vs. same period last year 0 2009 2010 22
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep l i n d a b BA Building Systems Seasonally adjusted sales trend by month Improved sales, bookings remains on a good level, especially in CIS Continued positive signals from the Russian market The currency effect was -9% in Q3 vs. same period last year 1 800 1 600 1 400 1 200 1 000 800 600 400 Monthly Sales Seasonally adjusted 200 0 2009 2010 23
Market Outlook Residential (20%) expected to continue recovery, mainly in Nordic Mainly affects Building Components Non-residential (80%) expected to remain stable. External indicators point to the start of a recovery in 2 nd half 2011 First affected should be Building Components and Building Systems Ventilation products later in the building process 24
lindab group presentation