Lindab Group “We simplify construction” S… · The bigger picture –simplifying construction no longer only about hardware From spiral ducts To simplifying construction Adding

lindab | we simplify construction

Lindab GroupSEB Nordic Seminar 2017

January 2017Anders Berg, President and CEO


2

• Business update

• Strategy in action

• Going digital

• Outlook

Agenda


3

Business

update


4

5-8%

The targets stretch over a business cycle

(1) Excluding one-off items

(2) All numbers are L12M September 2016

The dividend target is 30% of

the company’s profit after tax

10% <2.5Annual Growth Operating Margin Net debt/EBITDA

30%

The long term financial targetsCreating value for our shareholders

Growth L12M at

6% in line with

target (2)

EBIT margin (1)

of 6.7% L12M

below target (2)

Net

debt/EBITDA (1)

at 2.5 in line

with target (2)


5

Residential and commercial exposure in Ventilation

and Building Products

Pan-european business

New-build and retrofit business

Distribution and project related

Customized pre-engineered steel buildings

Large exposure to Russia and CIS

New-build business

Project related business – Key Account and

Builder Dealers focus

Same company but different storiesClearly different development and challenges

400

500

600

5.000

7.000

6.000

201620152014

1.000

750

200

0

1.250

50

-50

150

201620152014

Products and Solutions Building Systems

Remark: Sales in MSEK (left axis bars) and EBIT in MSEK (right axis line) excluding one-off items. All

numbers are L12M September 2016.


6

Strategy in

action


7

Strategy in action driving Lindab forwardThe bigger picture – Products and Solutions

250

300

350

400

450

500

550

5.500

6.500

5.000

6.000

7.000

20112010 2012

Sales MSEK

2015 201620142013

EBIT MSEK

Sales (MSEK) EBIT (MSEK)

• The future strategic

path for Lindab was

developed during

2014

• 5 clear focus areas

being launched

• Sales increased with

25% since 2013

• EBIT increased with

50% since 2013

Remark: Sales in MSEK for segment Products and Solutions (left axis bars) and EBIT in MSEK (right axis line)

excluding one-off items. All numbers are L12M September 2016.


8

Ivan

the

Installer

Charlie the

Contractor

Ted

the

Technical

consultant

Archie

the

Architect

Dave

the

Distributor

Peter

the

Property

owner

Eric &

Erica

the End-

users

Expanding the value propositionDriven by market excellence


9

Market

ExcellenceEfficient

AvailabilityInnovation PeopleSolutions

Clear accountability

per country

Closing down smaller

sales entities and

unprofitable branches

Introduction of

Strategic Product

Management

Branch development

Transformation continues - examplesExamples of strategy execution so far and where “digitalization” kicks-in

ERP and IT

strategy

Closing four

factories

Establishment of

DC

Purchasing

organization

Acquisition of

Nather, Mp3 and

IMP Klima

Fan product

range

Leverage R&D

product

development -

Ecosystem

Ultra Link

development

project

Process to

generate ideas

Connectiviy and

digitalization

Lindab Academy

and Competence

Centers

Competence and

capabilities


10

Innovation as part of our transformationThe bigger picture – simplifying construction no longer only about hardware

From spiral ducts To simplifying construction Adding technology Creating the Ecosystem

1960´s


11

M&A going forwardFocus on integration during 2016 and improving balance sheet

M&A activity likely to

increase

Reviewing our market

footprint

Improved balance

sheet supports further

transactions

Fragmented market

with a number of

targets with sales of

20-40 MEUR within

Europe

Consolidation in the

market a visible trend

Bolt-on and

transformational deals

are both interesting

Constantly evaluating

our market positions

Focus will be on:

[1] Market presence

[2] IP and technology

[3] Strengthening product

program and / or route to

market

But, dare to say “no”

and patience to wait


12

Going digital


13

With our strategy we have started our

transformation of being connected


14

The market for smart buildings is growing with

high speed as the demands for lowering the

energy usage in building increases

To be able to optimize energy efficiency

Focus on the system – not the parts


15

Digital trendsCovered in our strategy

Building information

systems

Collaborate and

Integrate

Internet of Things and

Big data

Digital organisation


16

Visualize Design Transact Construct PerformSelect Analyze

LindQST

Structural

DesignerLindQST

CADvent

BIM

AirCalc

EDI &

webshop Digital

manuals

Intelligent

solutions

Lindab

Connect

Our digital value chain – major focusThe bigger picture – simplifying construction no longer only about hardware

Structural designer

LindQSTLindQST

BIM

CADVent Online sales

Apps and online

UltraLink

AHU

VAV

Connect, measure and optimize

More than 1000

sessionsMore than 5000

projects in 2016

More than 100 000

products,

downloaded from

more than 70

countries

As example, close to

30% of all business

in DK made onlineMore than 4000

users


17

The big picture – value selling

According to the EU's climate goals,

energy consumption

must be reduced by 20% by 2020

As energy consumption is still far too high, new

technologies and better solutions are required to

achieve this target – and to measure the air flows

This requirement is met using UltraLink.


18

Vision - our future EcosystemUltra Link on the move


19

Lindab

Academy train

and educate to

develop next

generation of

digital native

leaders and

employees


20

Outlook


21

Recipe for profitable growth and target fulfillment

Complexity Simplicity

1. Solid strategy based on a strong foundation – initial transformation completed

2. Well positioned to capture benefits from the energy efficiency and productivity

3. Established business in a significant part of European markets – develop strongholds

4. Commitment to innovation and product development

5. Proven track record in production excellence

Five ingredients for growth recipe

Challenges• Building Systems turnaround - continued challenging market climate in Russia and CIS

• Rapidly increasing steel prices - demand versus supply

• Agile planning for 2017 - uncertain political landscape in Europe impacting investments

• Speed in transformation - strong focus on ventilation and energy efficiency

Documents

Lindab Group “We simplify construction” S… · The bigger picture –simplifying construction no longer only about hardware From spiral ducts To simplifying construction Adding