Slides
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INTERIM REPORT 1 APRIL – 31 DECEMBER 2024 Niklas Stenberg, President and CEO, and Malin Enarson, CFO
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QUARTER 3 HIGHLIGHTS Net sales SEK 5,481 m, +11% EBITA-margin 14.4% From 13.6% Activity remained high Net sales up 11% of which 3% organic EBITA growth of 17% with improved margin Record high P/WC of 74% High acquisition pace 2
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QUARTER 3: NET SALES DEVELOPMENT SOLID TOP-LINE GROWTH 3 Net sales increased by 11% of which 3% organic − Overarching customer activity was stable at a high level, with continued clear variations between segments − Sales growth in all business areas, with very strong growth in Energy − Well-filled order backlog with solid order intake during Q3
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QUARTER 3: EBITA DEVELOPMENT STRONG RESULT 4 17% EBITA growth with a margin of 14.4% (13.6) − All business areas contributed to the EBITA growth, with a very strong development in Energy − EBITA margin increased due to good leverage on organic growth and margin accretive acquisitions − Stable operating cash flow − P/WC 74% (68)
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QUARTER 3: BUSINESS AREA DEVELOPMENT CLEAR VARIATIONS BETWEEN SEGMENTS 5 AUTOMATION ELECTRIFICATION ENERGY INDUSTRIAL SOLUTIONS PROCESS TECHNOLOGY Net sales SEK 920 m (868) +6% EBITA SEK 105 m (104) +1% EBITA-margin 11.3% • Good market situation in general with solid top-line growth • Medical technology-, mechanical- and defense industry segments showed stable demand • Negative impact on margins from calendar effects and a weaker product mix Net sales SEK 1,072 m (1,007) +7% EBITA SEK 129 m (112) +15% EBITA-margin 12.0% • Strong business situation but with variations between segments • Strongest development within mechanical industry, medical technology, and defense segments • Building and installation remained weak while data and telecom improved during the period • Stable demand within energy, special vehicles and electronics Net sales SEK 1,599 m (1,306) +22% EBITA SEK 245 m (171) +43% EBITA-margin 15.3% • Very strong sales development • Demand for infrastructure products for electric transmission, niche products for electric power distribution and products and solutions towards data halls was strong • The market situation was positive within wind power and traffic safety and remained weak in building and installation • Stable demand for fiber installations and within the mechanical industry Net sales SEK 968 m (906) +7% EBITA SEK 195 m (188) +4% EBITA-margin 20.2% • Overarching the business situation was good during the period with solid contributions from newly acquired companies • The weak demand within the forest- and sawmill industry as well as special vehicles remained • Waste management and subsea remained good while mechanical industry weakened somewhat during the quarter Net sales SEK 930 m (878) +6% EBITA SEK 122 m (119) +3% EBITA-margin 13.2% • Stable in general but with variations between segments • Weak business situation for companies operating in aftermarket and service to the forest industry • Stable demand within medical technology, mechanical- and process industry • The marine segment remains favorable while energy and special vehicles weakened
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PERIOD 1 APRIL – 31 DECEMBER 2024 STEADY GROWTH Net sales increased by 7% to SEK 16,046 m (14,928) The organic growth amounted to 2 % and acquired growth amounted to 6% EBITA increased by 14% and amounted to SEK 2,385 m (2,097) corresponding to an EBITA margin of 14.9% (14.0) Operating profit increased by 13% and amounted to SEK 2,014 m (1,777) corresponding to an operating margin of 12.6% (11.9) Profit after tax increased by 13% and amounted to SEK 1,397 m (1,240) Cash flow from operating activities amounted to SEK 1,848 m (1,894) Earnings per share before dilution amounted to SEK 5.05 (4.45) 6
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IMPROVED MARGINS 7
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STABLE CASH FLOW AT HIGH LEVELS 8
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LOW RISK BALANCE SHEET 9 Equity ratio 38% (38%) Leverage 1.6 (1.5) Gearing 0.8 (0.8)
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HIGH PACE OF ACQUISITIONS Three acquisitions completed during the quarter followed by one more after closing In total 11 new companies welcomed during the fiscal year, of which 8 outside the Nordics, adding about SEK 1,450 m and 300 new employees *Refers to assessed situation on a full-year basis at the time of acquisition 10 Acquisition Business area Access Net sales, SEKm* Employees* Novomotec GmbH Electrification April 2024 80 9 Cell Pack Solutions Ltd. Electrification April 2024 75 30 GoDrive AS Industrial Solutions April 2024 75 5 Nuova Elettromeccanica Sud S.p.A. Energy June 2024 160 32 C. Gunnarssons Verkstads AB Industrial Solutions July 2024 200 45 Analytical Solutions and Products B.V. Process Technology July 2024 140 20 Romani Components Srl Automation July 2024 125 23 PGS Tec GmbH Process Technology October 2024 80 15 Unilite A/S Energy November 2024 325 78 Nanosystec GmbH Electrification November 2024 90 20 Coel Motori S.r.l. Industrial Solutions January 2025 90 24
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SUMMARY Strong results in a challenging market Overarching market activity remains high – clear variations between segments Well-filled orderbooks with a solid intake during the period High acquisition pace continued – 11 new companies added during the fiscal year Short-term outlook remains good 11