Lindab Group Corporate Presentation 2017 - Chernev Clima

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Lindab GroupLeading solutions for buildings of the future

Simplifying is our passion. Ultimate comfort is our vision.

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lindab | we simplify construction

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At Lindab, good thinking is a philosophy that guides us in everything we do. We have made it our mission to create a healthy indoor climate – and to simplify the construction of sustainable buildings.

You´re in good company.

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https://www.youtube.com/watch?v=BCugeFPRvWU&feature=player_embedded

https://www.youtube.com/watch?v=BCugeFPRvWU&feature=player_embedded


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201320061959 2015 2016

The foundation of the company in Grevie, Sweden

Establishment in CEE

IPO, OMX NasdaqStockholm

ONE Lindab replaces3 Business Areas

A long and successful history

Focus on energy efficient ventilation solutions

UltraLinkInternet of Things

1990

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Customer success

Neatness and order

Down to earth

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From a sustainability strategy to a sustainable strategyKey responsibilities

Attractive employer Better work environment

Lower carbon emission

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Products & Solutions 89%Building Systems 11%

Share of net sales

Non-residential construction 80%Residential construction 20%

Share of net sales

Nordic

47 %

CEE/CIS

17%

Other Markets

3%

Western Europe

33%

Lindab at a glance

Share of net sales per market

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Net salesSEK

7,849 m5,100 employees

136 branches

32 countries

24,000 customers


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Our customer offering


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Indoor climate solutions Ventilation products Building solutions

Fire & smoke Air movement Rainwater and building products

Share of Group sales Share of Group sales Share of Group sales

Share of Group sales Share of Group sales Share of Group sales

Products & SolutionsComplete offering of solutions

Examples Examples

Examples Examples

Examples

Examples

Share of Group SalesVersion: 2017-11-06


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Products & SolutionsDeveloping the ventilation Ecosystem

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Storage Production

Garages Offices Recreation

Commercial

Building SystemsSales by building type

Share of Building Systems segment salesVersion: 2017-11-06


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Residential Solutions

Office Solutions

Hotel Solutions

Hospital Solutions

Leisure Solutions

Lindab’s innovative solutions create ultimate comfort in the buildings of the future

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• A good indoor climate in residential buildings is essential for people to feel well in their homes

• Lindab can supply a complete package for a safe, comfortable, healthy indoor climate in all types of apartment buildings

Palazzo San Carlo, Turin, Italy

”With our technical expertise and Lindab Inside we were able to tackle it

with no major problem”

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• Air flow, air quality, temperature and sound level are all factors that affect our performance in an office environment

• Lindab helps you to customise the right solution for a productive indoor climate and can meet requests for the most specialised solutions

”Lindab delivered an excellent solution which both the architect and the ordering

client are delighted with”

DSV headquarter Copenhagen, Denmark

Office Solutions

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• The ventilation solution must meet, and ideally exceed, the guest’s requirements

• Lindab’s solutions help ensure that the guest has a perfect stay, at the lowest possible energy cost

”Lindab played an important part in the construction of the hotel, providing a tailored package including 40 air handling units for central air preparation, while also supplying 300 round and square fire dampers for fire

safety.”

The Conrad Algarve Hotel, Portugal

Hotel Solutions

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• Lindab can meet the very highest technical requirements in places where maximum hygiene safety has to be guaranteed, such as operating theatres, laboratories and intensive care wards

”Lindab provided a complete solution for clean room and supplied the HVAC system, a building management system and carried out

all mechanical installations.”

Krka, pharmaceutical company, Novo Mesto, Slovenia

Hospital Solutions

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• Lindab has delivered indoor climate solutions for a long list of different buildings in the leisure industry – many with exceptional requirements and highly specialised requests.

“A project of this kind is based on a lot of unique, fundamentally different solutions. The architectural ambitions were very high, and this in turn placed

correspondingly high demands on all the technical solutions – from the facade cladding to the supply air

system in the main auditorium”

The Opera House, Copenhagen, Denmark

Leisure Solutions

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2013 2020

Centralised control units for indoor climate systems

Increased role of IoT in managing/ improving energy efficiency

Intelligent control systems will dominate buildings

Low energy building concepts

Focus on indoor air quality and fire protection

Self-service eCommerce concepts

DRIVERS: ENVIRONMENT | LEGISLATION | ENERGY EFFICIENCY | INTELLIGENT BUILDINGS | NEW MATERIALS | URBANISATION | GLOBAL ECONOMY

90%More than 90% of the environmental impact from a building is from

its energy use

30% Improving climate control and air quality monitoring

generates up to 30% energy savings

Let the trend be your friend

Lindab residential solutions

IoT strategy and concept

Fans and AHU new strategic focus

Nearly Zero-energy Buildings

by 2020

Closer corporation with strategic AHU and Fan partners

40%Buildings are responsible for

40% of the energy consumption in EU

Fire and Smoke new strategic focus UltraLink

Building systems with nearly zero

energy

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Silencers

Beams (Indoor climate solution)

Diffusers (Indoor climate solution)

Circular ducts

Circular fittings

Lindab’s core offer

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Silencer

Beams (Indoor climate solution)

Diffusers (Indoor climate solution)

Circular fittings

Smoke evacuation fansAir handling units and fans

Fire dampers

Lindab Connect (IoT) and UltraLink

Indoor climate solution (VAV)Circular ducts

We create Lindab’s eco system Products and solutions with good growth

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Idea phase

Analysis and development

Testing and product selection

Pre-launch phase

Commercial launch

Innovation in action


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Financial information 2016


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Lindab Group 2016

*Excluding one-off items

Net sales

SEK 7.8 BNNet sales increased by 3.4% to SEK 7,849 m (7,589). Organic growth was 4.2%.

Operating Margin (EBIT)

6.5 %The operating margin excluding one-off items rose to 6.5% (6.1).

Operating Profit (EBIT)

SEK 511MExcluding one-off items of SEK -28 m (6), the operating profit increased by 10.4% to SEK 511 m (463).

Cash Flow

SEK 499 MCash flow from operating activities increased by 8.5% to SEK 499 m (460).

Earnings per share

4,02 SEK

Operating margin (EBIT)Net sales

Net sales, operating margin 2012–2016


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Products & Solutions 2016

Net Sales

SEK 6.9 BNNet sales increased by 3.3% to SEK 6,949 m (6,727). Strong sales growth in the Nordic region contributed the most.


8.1 %The operating margin excluding one-off items rose to 8.1% (7.5).


SEK 565 MExcluding one-off items of SEK -24 m (35),the operating profit increased to SEK 565 m (504).

Stock turnover rate

4.1 timesContinued market diversification meant that sales covered 33 countries (30) in 2016.

Share of the Group

Net Sales Operating profit**

*Excluding one-off items** Excluding one-off items and Group function



102%89%


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Building Systems 2016

Net Sales

SEK 0.9 BNNet sales increased by 4.4% to SEK 900 m (862). New business in Western Europe grew.


-1.3 %The operating margin excluding one-off items fell to –1.3% (1.9).


SEK -12 MExcluding one-off items of SEK 0 m (–9), the operating profit fell to SEK –12 m (16).

Number of countries

33 countriesContinued market diversification meant that sales covered 33 countries (30) in 2016.

Share of the Group

Net Sales Operating profit***

*Excluding one-off items** Excluding one-off items and Group function

-2%11%




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Always profitable

0

500

1 000

1 500

0

2 000

4 000

6 000

8 000

10 000

1959 1980 1990 2000 2005 2008 2010 2015

EBIT Net Sales

Net Sales(SEK m)

EBITSEK m

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Our markets


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Our largest markets 2016*

* Share of total Net Sales, Lindab Group

1. Sweden2. Denmark3. UK4. Germany5. Norway6. France7. Poland8. Finland9. Italy10. Switzerland


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Number of branches and distribution centres

Central production

Regional production

LINDAB DISTRIBUTION:

Always close, available and knowledgeable

LINDAB PRODUCTION:

Always ready, flexible and reliable

Footprint for customer success

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Our route to market


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Effective production

Complete offering

Optimisedlogistics

IT and pro-ject support

Research anddevelopment

Service andsystem

Specification Distribution Installation

• Residential

• Industrial

• Commercial

• Warehouse

• Marine sector

• Public sector

End users

End users and various influencers

End users via ventilation installers, contractors etc.

Branches, webshop, external retailers etc.

Simplifying isour passion.

Ultimate comfort is our vision.

Property managersand property owners

Building specifiers,Architects and consultant Authorities

Many and close customer relations

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”Easy access to the branch with competent staff, here I find all the quality products that I need for my work” New branches

Showroom New store concept Broad range…

Knowledge hub New technology Good locations

…available from stock

Working with branch– quick, close and

complete

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”Unique project planning software makes it easy to visualise and plan the project”

End users andvarious influencers

Branches, webshops, external retailers etc.

End users via ventilation installers, contractors etc.

Lindab Revit Tools DIMsilencer

Lindab ADT Tools

Structural Designer LindQST

CADvent


Industrial Solutions

Commercial Solutions

Working with theinfluencers

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Our strategy


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Five Clear strategic focus areas

MARKET EXCELLENCE

EFFICIENTAVAILABILITY SOLUTIONS INNOVATION PEOPLE

Continue to further develop our branch network and other sales channels in prioritised markets.

In focus 2017 In focus 2017 In focus 2017 In focus 2017 In focus 2017

Ensure the successful launch of our new distribution concept in the Nordic region with automatic high-bay storage facility

Continue to strengthen the internal efforts to develop more solutions raise customer awareness of Lindab’s offering in the area.

Continue the work of establishing an innovative culture and to strengthen the dialogue around innovation with customers.

Continue to strengthen the critical skills developed through recruitment, talent development and training to implement our strategy.


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5-8%

The targets stretch over a business cycle

Three financial targets supported by the strategy

The dividend target is 30% of the company’s profit after tax

10% <2.5 30% Annual Growth Operating Margin Net debt/EBITDA


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Recipe for profitable growth and target fulfilment

Complexity Simplicity

1. Solid strategy based on a strong foundation

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

3. Established business in a significant part of European markets

4. Commitment to innovation and product development

5. Proven track record in production excellence

Five ingredients for growth recipe

DRIVERS: ENVIRONMENT | LEGISLATION | ENERGY EFFICIENCY | INTELLIGENT BUILDINGS | NEW MATERIALS | URBANISATION | GLOBAL ECONOMY


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Organisation


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The largest shareholders*

10.4 % Lannebo Fonder10.0 % CREADES AB

7.8 % Fjärde AP-fonden6.4 % Handelsbanken Fonder5.2 % Livsförsäkringsbolaget Skandia ÖMS

*As of 31 December 2016

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Kristian Ackeby CFO

Fredrik LiedholmExecutive Vice President Director Legal, M&A and HR

Fredrik von OelreichPresident and CEO

The Operational management team for the Group comprising the Executive management plus six senior executives.

Bengt AnderssonExecutive Vice President and Chief Technical Officer

Executive management

Olof Christensson Executive Vice President Energy and Climate solution


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Follow us on

www.lindab.com

https://www.facebook.com/LindabGroup

https://www.facebook.com/LindabGroup

https://twitter.com/lindabgroup

https://twitter.com/lindabgroup

https://www.youtube.com/user/LindabGroup

https://www.youtube.com/user/LindabGroup

https://www.linkedin.com/company/lindab

https://www.linkedin.com/company/lindab

https://www.instagram.com/lindabgroup/

https://www.instagram.com/lindabgroup/

Lindab Group Corporate Presentation 2017 - Chernev Clima

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