Presentation

Interim report January-June 2024

12 July 2024

THE GROUP'S FINANCIAL PERFORMANCE

SECOND QUARTER

SIX MONTHS

MSEK

2024

2023

Change

2024

2023

Change

Net sales

6,725

6,206

8.4%1

12,731

12,165

4.6%2

EBITA3

1,608

1,487

8.1%

2,886

2,817

2.5%

EBITA margin3

23.9%

24.0%

-0.1

22.7%

23.2%

-0.5

Profit before tax

1,234

1,176

5.0%

2,175

2,233

-2.6%

Net profit for the period

914

870

5.0%

1,615

1,663

-2.9%

Operating cash flow

1,090

793

37.5%

1,721

1,524

12.9%

Earnings per share

1.98

1.88

5.3%

3.50

3.60

-2.8%

Return on capital employed

21.6%

22.6%

-1.0

21.6%

22.6%

-1.0

Return on capital employed, excl. goodwill

134%

133%

1.0

134%

133%

1.0

  • Organic growth of -0.1% in Q224.
  • Organic growth of -3.9% in January-June 2024.
    3 Before acquisition costs.

2

THE BUSINESS AREAS' FINANCIAL PERFORMANCE

DENTAL

SECOND QUARTER

SIX MONTHS

MSEK

2024

2023

Change

2024

2023

Change

Net sales

1,639

1,504

9.0%

3,208

3,029

5.9%

EBITA

364

302

20.4%

691

630

9.7%

EBITA margin

22.2%

20.1%

2.1

21.5%

20.8%

0.7

DEMOLITION & TOOLS

SECOND QUARTER

SIX MONTHS

MSEK

2024

2023

Change

2024

2023

Change

Net sales

1,744

1,889

-7.7%

3,235

3,699

-12.5%

EBITA

453

533

-15.0%

757

979

-22.6%

EBITA margin

26.0%

28.2%

-2.2

23.4%

26.5%

-3.1

SYSTEMS SOLUTIONS

SECOND QUARTER

SIX MONTHS

MSEK

2024

2023

Change

2024

2023

Change

Net sales

3,342

2,813

18.8%

6,288

5,437

15.6%

EBITA

838

691

21.1%

1,526

1,285

18.7%

EBITA margin

25.1%

24.6%

0.5

24.3%

23.6%

0.7

EBITA is calculated excluding acquisition costs.

3

ACQUIRED VS ORGANIC EBITA GROWTH

MSEK

Average

2015-2023

2023

2022

2021

2020

2019

2018

2017

2016

2015

EBITA

5,664

4,662

3,709

2,702

2,523

2,168

1,732

1,377

1,186

EBITA from

536

401

488

222

221

197

198

152

118

acquisitions

EBITA growth from

12%

12%

11%

18%

9%

10%

11%

14%

13%

12%

acquisitions

Organic EBITA

8%

6%

11%

21%

0%

3%

10%

10%

3%

8%

growth

FX EBITA growth

2%

4%

4%

-2%

-2%

3%

4%

1%

0%

3%

Total EBITA

22%

22%

26%

37%

7%

16%

25%

26%

16%

23%

growth

EBITA is defined as operating profit before amortization and impairment of intangible assets arising from acquisitions.

4

DEVELOPMENT 2015-2023

CAGR 2015-

MSEK

2023

2023

2022

2021

2020

2019

2018

2017

2016

2015

EBITA

22%

5,664

4,662

3,709

2,702

2,523

2,168

1,732

1,377

1,186

EPS1

19%

7.21

6.13

5.26

3.67

3.31

3.06

2.39

2.00

1.78

Interest-bearing

17%

6,849

5,590

4,603

3,242

4,040

3,170

3,536

3,018

1,950

net debt

Interest-bearing

net

N/A

1.1

1.1

1.1

1.1

1.4

1.4

1.9

2.0

1.5

debt/EBITDA

Operating cash

21%

4,458

3,069

2,938

2,812

1,990

1,533

1,326

1,084

948

flow

Dividend paid

17%

818

681

545

477

418

363

318

273

236

during the year

Acquisition

spend (cash

N/A

3,718

2,295

2,990

1,056

1,781

500

1,378

1,608

573

flow effect)

during the year

EV of acquired

entities during

N/A

4,335

2,247

3,496

1,194

2,161

695

1,584

1,649

527

the year2

Full year EBITA

estimate of

N/A

659

353

595

154

287

110

223

204

107

acquired

entities2

1 Number of shares adjusted for split in 2021.

2 For acquisitions consolidated during the year (data from "Acquisitions" in Q4 reports) - purchase consideration adjusted for cash in acquired companies.

STRONG GROWTH IN CASH FLOW PER SHARE SINCE IPO

Free cash flow per share after capex and before dividends and acquisitions

10

9.2

9

8.8

8

7

6.1

6

5.6

5.8

5

4

3.8

3.0

3

2.6

2.1

1.9

2

1.1

1

0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024 LTM

6

NET DEBT DEVELOPMENT AND BALANCE SHEET

Net debt development

Balance sheet

MSEK

Times

12000

10000

3,5

3

8000

2,5

6000

2

4000

1,5

1

2000

0,5

MSEK

30 Jun

31 Dec

30 Jun

2024

2023

2023

Intangible fixed assets

23,524

21,927

21,247

Tangible fixed assets

2,931

2,723

2,698

Financial assets

411

380

393

Inventory

4,298

3,906

4,248

Accounts receivable

3,514

2,940

3,297

Other receivables

1,078

824

859

Cash and cash equivalents

1,707

1,591

1,587

Total assets

37,462

34,291

34,329

Shareholders' equity

16,431

15,332

14,718

Interest-bearing liabilities

10,990

9,619

10,288

Other liabilities and provisions

5,157

5,101

4,732

Accounts payable

1,773

1,396

1,755

Other short-term liabilities

3,112

2,844

2,836

Total equity and liabilities

37,462

34,291

34,329

0

0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

30

June

Net debt

Net debt/EBITDA

Target range

As from 2019 net debt/EBITDA includes leasing according to IFRS 16.

Net debt

Net debt/EBITDA Interest-bearing net debt/EBITDA

Capital employed excl. goodwill and other intangible assets

ROCE excl. goodwill and other intangible assets

Capital employed incl. goodwill and other intangible assets

ROCE incl. goodwill and other intangible assets

11,915 10,633 10,960

1.9x 1.7x 1.9x

1.3x 1.1x 1.3x

4,291 4,088 3,952

134% 139% 133%

26,486 25,007 23,162

21.6% 22.6% 22.6%

7

ONE TARGET: TO INCREASE PROFITS EVERY YEAR

.3%

13

2024

LTM

.3%

18

-

LTM

costsacquisitionbeforeEBITAand (MSEK)itemsrecurring-non

2006

2024

-

CAGR

2006

EBITA

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

LTM

EBITA margin

2024

14.2% 15.0% 15.3% 17.3% 18.1% 18.2% 19.6% 21.2% 21.6% 23.2% 22.9%

Dental

Demolition & Tools

Systems Solutions

Note: IFRS accounting since 2012, prior years Swedish GAAP.

8

CAPITAL EMPLOYED

ROCE including goodwill and other intangible assets

ROCE excluding goodwill and other intangible assets

25

22.6%

22.6%

21.6%

160

135%

140

20

120

15

100

12.5%

80

10

60

5

40

20

0

0

2022

2022

2023

2024 LTM

Target ranges

139% 134%

50%

2023

2024 LTM

9

MANAGEMENT AND CHAIRMAN

Per Waldemarson

CEO

Started at Lifco 2006

Born: 1977

Education

  • MSc in Business Administration, Stockholm School of Economics

Experience

  • Management Consultant at Bain & Co 2002−2006
  • MD of Brokk 2006−2009
  • President of the Dental business area since 2009

Own and related parties' holdings

513,500 Class B shares,

205,000 Class B shares through Pension Scheme and

87,412 synthetic call options

Therése Hoffman

CFO

Started at Lifco 2007

Born: 1971

Education

  • International Marketing, Mälardalens Högskola

Experience

  • CFO Nordenta 2007−2011
  • CFO of Lifco since 2011

Own and related parties' holdings

1,500 Class B shares and

10,926 synthetic call options

Martin Linder

Head of Business Area Systems Solutions

Started at Lifco 2009

Born: 1972

Education

  • MSc in Material physics and PhD in Solid state electronics,
    KTH Royal Institute of Technology

Experience

  • CEO Proline Group 2016−2019
  • CEO Leab Group 2008−2016
  • Various management positions in Note 2003−2008

Own and related parties' holdings

203,000 Class B shares, 57,250 Class B shares through

Pension Scheme and 43,706

synthetic call options

Carl Bennet

Chairman

Born: 1951

Other assignments

  • Deputy Chairman and main owner of Arjo, Elanders and Getinge
  • Member of the Board of Holmen and L E Lundbergföretagen

Holdings via companies

30,379,850 Class A shares

197,502,023 Class B shares

10

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Disclaimer

Lifco AB (publ) published this content on 12 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2024 05:50:02 UTC.