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lindab| we simplify construction
Lindab Capital Market Day
”Focused journey towards increased profitability”
23 August 2012
lindab| we simplify construction
2
BA Ventilation
Nils-Johan Andersson
BA Building Systems
Hans Berger
BA Building Components
Peter Andsberg
CEO
David Brodetsky
CFO
Per Nilsson
Director Belgium
Building Research Inst
Peter Wouters
Centrum Klima
Marek Perendyk
Today’s speakers
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
3
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
4
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
lindab| we simplify construction
Sales SEK 6.9bn, 4300 employees
Good track record of growth and profitability
Entrepreneurial culture built on 3 core values:
Customer success Down-to-earth Neatness and order
Lindab in brief
5
lindab| we simplify construction
Synergies in production
Presence in 31 countries
Little exposure to PIIGS (2%)
Growing in CIS (~10% of sales)
All numbers and % of sales from 2011
28%
46%
23%
Nordics
Western Europe
CEE/ CIS
Main focus is Europe 97%
lindab| we simplify construction
Our Business Idea – Simplifying construction
7
lindab| we simplify construction
Lindab operates in three Business Areas
Roof drainage
systems
Beams and
studs
Roof and wall profiles Pre-engineered single and multi
storey buildings
Circular ducts and fittings
Indoor climate products
8
Building Components (33% of sales)
#1 in Europe in Steel Rain Water Systems
Market leading positions in all BAs
Ventilation (53% of sales)
#1 in Europe in Air Duct Systems
Building Systems (14% of sales)
#1 in Europe in pre-engineered
steel buildings
lindab| we simplify construction
Competitive difference – strength in distribution
9
Leading distribution network in
top 5 markets and presence in
others
− One stop shop
− Develop sales of traded
products
− Secures sales of our core
products
More than 120 own branches
− Close to the installer
− Shared branch network in SE
and NO (BAV and BABC)
− 70% of sales to installers
Branch location
lindab| we simplify construction
And “Best-in-class” production
10
Well balanced footprint
– 1/3 centralised highly automated
– 1/3 low cost countries (and growing)
– 1/3 local production
– Facility in Russia (investing more)
Central production
Regional production
lindab| we simplify construction
Synergies within Lindab Group
11
Raw material
processing Production Logistics
Distribution
network Purchasing
Steel volumes
and purchasing
contracts
Shared
purchasing
organisation
Lindab
synergies
Relative
size
Slitting
Raw material
handling
Shared
locations and
admin functions
Shared logistic
contracts and
trucks
Project sales
Geographic
expansion, e.g.
WE and Russia
Shared Services (IT, Finance, HR etc.)
2
5
%
Sales
Shared branch
network
Very high Low
lindab| we simplify construction
Good record of growth and profitability; Margin
recovery post 2009 despite flat sales
12
Sales MSEK
EBIT Margin (%) (excl. one-off items)
“Soft economy” “Good economy”
Significant margin improvement
due to volume increase, pricing
and acquisitions
“Weak economy”
Margin improvement mainly due
cost and efficiency improvements
5 160 5 235 5 302 5 477 6 214
7 609
9 280 9 840
7 019 6 527 6 878 6 962
6.2% 6.2% 5.8%
7.0%
8.9%
12.3%
14.1%
13.0%
4.3%
5.3%
5.9% 6.4%
0%
4%
8%
12%
16%
0
2 000
4 000
6 000
8 000
10 000
12 000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201206 LTM
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
13
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
lindab| we simplify construction
14
"As expected, demand has remained weak during the first few weeks of the
third quarter.
Sales have decreased compared to the same period last year, adjusted for
structure and currency, but at a lower rate than the decline experienced in the
second quarter.
The main trends are unchanged compared to the second quarter 2012 with the
exception of improved demand in Western Europe particularly supporting the
Ventilation Business Area.”.
Trading update – start of Q3, 2012
lindab| we simplify construction
15
Slow recovery predicted for European construction market
Lindab weighted Euroconstruct forecast* - not perfect correlation
Large uncertainty in construction market and the future outcome will mainly
be dictated by Euro crisis development
Risk of significant decline considered limited
*) Adjusted for Lindab's geographical mix, segment exposure and late cyclicality
-0.5%
0.6%
2.2%
-1.0%
0.0%
1.0%
2.0%
3.0%
2012 2013 2014
Rea
l g
row
th
Near-term Market Outlook
lindab| we simplify construction
16
Relatively good near-term outlook due to strong government finances and
positive underlying demand
Though, negative trend in latest building statistics, especially in Sweden
Norway strongest market and should remain resilient
Lindab weighted Euroconstruct forecast *
*) Adjusted for Lindab's geographical mix, segment exposure and late cyclicality
0.1%
1.3%
3.0%
0.0%
1.0%
2.0%
3.0%
2012 2013 2014
Rea
l g
row
th
Near-term Market Outlook: Nordics
lindab| we simplify construction
17
Weak outlook, especially for the PIIGS markets
Uncertainty regarding Euro crisis likely to remain
Several market indicators have turned downward in 2012
German construction market predicted to remain rather stable
Lindab weighted Euroconstruct forecast *
*) Adjusted for Lindab's geographical mix, segment exposure and late cyclicality
-1.0% -0.2%
1.3%
-1.0%
0.0%
1.0%
2.0%
2012 2013 2014
Rea
l g
row
th
Near-term Market Outlook: Western Europe
lindab| we simplify construction
18
Residential market remain weak due to low purchasing power
Non-residential construction market in export dependent countries like CZ
and SK strongly dependent on development in Western Europe
Poland more resilient due to large domestic market
Some international competitors have left selected markets in CEE
Lindab weighted Euroconstruct forecast *
*) Adjusted for Lindab's geographical mix, segment exposure and late cyclicality
-1.9%
-0.6%
1.5%
-2.0%
-1.0%
0.0%
1.0%
2.0%
2012 2013 2014
Rea
l g
row
th
Near-term Market Outlook: CEE
lindab| we simplify construction
19
Near-term Market Outlook: Russia/CIS
Russia/CIS is the main growth region in Europe
– GDP is forecast to grow with 4% p.a.
– Capital investments are expected to grow with 8-10% p.a.
Forecast Russian total construction market (VTT, June 2012)
Strong order intake as reported in Q2 by Building Systems, especially in Russia
5.0%
4.0% 4.0%
0.0%
2.0%
4.0%
6.0%
2012 2013 2014
Rea
l g
row
th
lindab| we simplify construction
20
Western Europe remain subdued for some years
More promising outlook for Nordic region
CEE and especially CIS should outperform the rest of Europe
Need of sustainable and energy efficient solutions will have strong positive
impact on construction market
Lindab well placed geographically
– Solid base to grow from in Nordic region
– Limited exposure to PIIGS markets
– Building Components and Building Systems have large share of sales to growth markets
Ventilation particularly well placed to benefit from energy efficiency trend
Long-term Market Outlook
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
21
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
22
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
lindab| we simplify construction
Focusing on our
strengths
Focusing on
geographic growth
Focusing on growth
segments
Strategic Focus Areas Fittings and distribution in Ventilation
Residential in Building Components
Large Industrial Buildings in Systems
Energy efficiency solutions
Main focus
Russia and CIS
Close to home
Large market
Stronger growth
23
2009 to date: Rolled out new strategy
lindab| we simplify construction
Focusing on our
strengths
Focusing on
geographic growth
Focusing on growth
segments
Selected key initiatives
Added 10 branches since 2010
Lindab center concept in CEE
Product development
New markets
Russia – start up and
current expansion
24
2009 to date: Rolled out new strategy
Acquisitions strengthening the core
Unmanned branch concept
Leading distributor in Poland
Sandwich panels in Nordic
lindab| we simplify construction
Fixed costs reduced by ~20% vs 2008
Consolidated production
– Closed plants in SE, CZ, HU, RU, US, GB, DE
– Consolidated production in SE, CZ, LU, EE
Further significant investments in automation
– BABS robotic welding
– BAV fittings and Comfort
25
2009 to date: Cost and efficiency improvements
lindab| we simplify construction
26
Indexed growth (n=100, 2009)
[Currency and structure adjusted]
90
95
100
105
110
2009 2010 2011 201206 LTM
Lindab Group organic
Euroconstruct (Lindab weighted)
Results of actions - Sales growth > market
Average sales above
market 3 to 4% p.a.
since 2009
lindab| we simplify construction
27
82
90
98
106
114
2009 2010 2011 1206LTM
Sales vs. Cost Development (adj. for currency) (n=100, 2009)
Sales
Fixed costs
Results of actions - Cost improvements
Operating leverage of
35% assuming fixed
GP%
lindab| we simplify construction
Results of actions - Efficiency improvements
28
Indexed Gross profit development (n=100, 2009)
100 101
99
102
90
95
100
105
110
2009 2010 2011 201206 YTD
Highest GP% in 2012
since 2008
lindab| we simplify construction
January 2012: New near term 10% EBIT target 2014*
29
Actions are having a positive impact
Previously expected that a solid recovery from 2011
would boost our performance
Recovery will be slower than previously expected
Current margins are insufficient
Need to do more
* Assuming market conditions prevailing in early 2012
lindab| we simplify construction
The road from 6-10% - a mix of focused growth
activities and cost savings / efficiency improvements
30
~50%
~50%
0%
2%
4%
6%
8%
10%
2011 EBIT% Focused growth activities
Cost savings and Efficiency
improvements
2014 EBIT% target
~50%
~50%
10%
6%
Lindab Group EBIT% Bridge
lindab| we simplify construction
0
40
80
120
2012 2013- (annual)
The road from 6-10% 2011 to 2014:
Profit improvement initiatives
31
Sales growth activities
− Accelerating benefits from activities launched
− New activities
2012: 150 MSEK cost plan. Key activities :
− Re-location to lower cost countries
− Continued consolidation of production
− Reduction of CEE/WE capacity for BABS
Cost plan targeted net savings
SEK 100m
SEK 60m
lindab| we simplify construction
The road from 6-10% 2011 to 2014:
Profit improvement initiatives
32
Efficiency / gross profit activities:
− Lean implementation continues
− Purchasing focus
− Selected pricing activities
Accelerating benefits from acquisitions
− Synergies
lindab| we simplify construction
Summary: Road to 10%
33
Target: 10% EBIT run rate by end of 2013 and for full year 2014 –
for each Business Area and for Lindab Group
Gap from 6 to 10% filled by
− ~2% from sales activities
− ~2% from cost and efficiency initiatives
Additional action if markets remain weak
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
34
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
35
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
lindab| we simplify construction
Business Area Ventilation
36
“The #1 Ventilation supplier and
distributor in Europe“
lindab| we simplify construction
37
To provide a user friendly one-stop shop offering to our customers with
strong focus on solutions that “simplify construction”
Ensure that our customer, the installer, get superior availability and
support
Product development with focus on energy efficiency
Continued leverage of our #1 market position in ADS in Europe
Our main goals
lindab| we simplify construction
Circular and rectangular ducts
for ventilation systems
Air Duct Systems (~80% of sales) Comfort (~20% of sales)
Traded goods
Wide range of accessories to
complete the offering and simplify
for our customers
Air systems
Diffusers, grilles, control valves and VAV
(Variable Air Volume) system
Water systems
Chilled beams, facade systems
and heating strips
Acoustics
Silencers to create a quiet indoor
climate
Product groups
lindab| we simplify construction
39
Sales MSEK
EBIT Margin (%) (excl. one-off items)
3 568
4 507 4 783
3 878 3 535 3 612 3 681
9.9% 10.5%
9.5%
4.9% 5.3%
6.1% 6.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
1 000
2 000
3 000
4 000
5 000
6 000
2006 2007 2008 2009 2010 2011 201206 LTM
Sales and profitability development
lindab| we simplify construction
40
BAV: The road to 10% EBIT
BAV road to 10% EBIT
Focused growth
activities
Cost savings and
efficiency improvements
lindab| we simplify construction
BA Ventilation focused growth:
Improving Distribution
41
Selectively improved branch network
− New branches in Visby, Gent, Liege,
Brussels, Frankfurt
− Location in Gothenburg
− Planned improvements in Malmö
Strengthened purchasing team and
capabilities
Improved sales follow up routines and
KPIs
lindab| we simplify construction
BA Ventilation focused growth:
Product development InCapsa (fittings growth)
42
Revolutionary renovation solution for residential housing
One craftsman for installation (compared to three for traditional concepts)
No need for tenants to move out
Residential ventilation segment fastest growing segment, e.g. 800k apartments to
be renovated in Sweden (Miljonprogrammet)
Product launched in March 2012
lindab| we simplify construction
BA Ventilation focused growth:
Product development Comfort
43
VAV solution – Pascal
– Energy minimising with demand control function
– Launched Jan 2012
Flexible Premum and Premax chilled beams
– Energy conscious - High cooling capacity/weight ratio
– Launched Jan 2012
eHybrid solution
– Variable Air Volumes (VAV) combined with Multi-
Service Beams
– Excellent energy performance
– Launched Feb 2011
lindab| we simplify construction
BA Ventilation focused growth:
Market entrance leveraging BABS footprint
44
Expansion into CIS, recently
winning two large orders of
SEK 7m each
Project sales combining
BABS and BAV offering
lindab| we simplify construction
BAV efficiency improvements: Moving Comfort
production to new factory in Czech Republic
45
Lean programme under implementation
>10% productivity improvements
achieved in 2011; Similar trend 2012
New automated box production
lindab| we simplify construction
BAV efficiency improvements:
Improving cost base in Western Europe
46
Improved UK overall cost position
− Closed branch in Stockton
− Moved service production into one location (Manchester)
− Consolidated overhead functions into Northampton
Adjusted
footprint
Continued
West to East
strategy
Moved main production operations from Germany to
Karlovarska in Czech Republic
lindab| we simplify construction
BAV additional growth through acquisitions:
Centrum Klima
47
Acquisition of all shares in Centrum Klima, a listed ventilation company
on the Warsaw stock exchange, finalized by a squeeze out process
August 7th, 2012
De-listing expected by October 2012
Consolidated Lindab and Centrum Klima operations in Poland
lindab| we simplify construction
Centrum Klima, a successful ADS supplier with strong
base in Poland
48
Centrum Klima – one of the largest round
ADS players in Europe with market leading
position in Poland
~SEK 200m in sales 2011
~65% of sales in Poland, ~35% in rest of
Europe
Strong purchasing network with long
experience of trading with Asia
lindab| we simplify construction
49
Operates from one main site located in the Warsaw
proximity
Wieruchów (Aug 2010 – tot area: 40 000m2)
Head Office,
Production (machine park: 3500m2),
Main Warehouse (5000m2)
lindab| we simplify construction
50
A very strong sales and profitability track record
Sales
(PLN m)
EBIT %
(line)
37
53
72 76 72 85
93
10%
12%
14%
13% 12%
9%
11%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
50
100
2005 2006 2007 2008 2009 2010 2011
1PLN = 2.02 SEK 14/8 2012
lindab| we simplify construction
51
Lindab and Centrum Klima – a perfect match!
Further leverage of Lindab’s world-class fittings production in Grevie
Ensure a leading position in distribution in Poland
Harmonisation of the traded portfolio to improve customer service across all
our branches
Adding further purchasing capabilities and network
Strengthened the BAV management team
lindab| we simplify construction
52
BAV: The road to 10% EBIT
BAV summary of key activities
Focused growth activities
Development of
distribution business
Selected additions of
branches
Product development
Project sales leveraging
BABS network
Synergies from
Centrum Klima
Cost savings and
efficiency improvements
Correction of
underperforming units
Shift of production to low
cost regions
Consolidation of
production
lindab| we simplify construction
Business Area Buildings Components
53
“European #1 in Rainline and steel
residential roofing
Market leader for industrial/commercial
steel roof and wall solutions in core
markets“
lindab| we simplify construction
Innovative system solutions “simplifying construction”
Continued leverage of strong footprints in Nordics and CEE
Development of new growth markets, e.g. Russia
Continued focus and strengthening of our #1 position as the supplier to
small and mid-sized customers
Strong company culture ”The Lindab Spirit”
Our main goals
lindab| we simplify construction
55
Coverline Profiled sheet metal roof, wall
products, sandwich panels and
accessories
Construline Lightweight construction solutions
made of steel
Doorline A wide range of sectional industrial
and garage doors
Residential (~60% of sales) Industrial (~40% of sales)
Rainline The biggest steel rainwater
system producer in Europe
Topline Leading suppliers of thin
steel based residential
roofing products
Seamline Wide range of sheet metal
based products and
accessories
Best-in-class products, both in the residential and
industrial segment
lindab| we simplify construction
BA Components sales and profit development
56
Sales MSEK
EBIT Margin (%) (excl. one-off items)
2 433
2 812 2 927
2 144 2 118 2 268 2 239
15.9% 16.0%
14.1%
6.3%
8.7% 8.5% 7.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2006 2007 2008 2009 2010 2011 201206 LTM
Improved profitability despite challenging market environment
2009
Sales dropped with 28%,
early action on cost.
2012
Weaker demand than
expected, further cost
adjustments.
lindab| we simplify construction
57
BABC: The road to 10% EBIT
BABC road to 10% EBIT
Focused growth
activities
Cost savings and
efficiency improvements
lindab| we simplify construction
58
BA Building Components: Summary of key activities
Focused growth activities Cost savings and
efficiency improvements
Further strengthened offering in
Nordics
− Builder Merchants
− Go-to-market approach
”Systemline”
Product development
Lindab Center concept in CEE
Residential sales in WE, US new
opportunity being developed
Expansion to growth market
Russia
Acquisition of Plannja’s Sandwich
panel business
Consolidation of production in
Nordics
Improved cost structure in CEE
Raw material optimization
Improve profitability in lowest
performing units
lindab| we simplify construction
Improved concept for BM
relationships developed
Separate resources to manage
relationships put in place
Result: 100+ stock holding
retailers in our network
59
BA Building Components focused growth: Increased
focus on Building Merchants
lindab| we simplify construction
The new Lindab ”Click Roof”
60
Easy-to-install seamed roof system
Introduced in all markets during 2011
BA Building Components focused growth:
Product development
lindab| we simplify construction
BA Building Components focused growth:
Product development
Brand new state of the art
Lindab roofer software
Quick and professional quotes.
User friendly
lindab| we simplify construction
Result: Small building sales has more than doubled
between 2009-2011
Strengthening of separate
organisation
Increased sales focus
62
BA Building Components focused growth:
Increased focus on “Systemline” in Nordics
lindab| we simplify construction
63
Förslöv, Sweden Jels, Denmark
Improving distribution, availability and service!
100+ centers by 2011 across all CEE markets
Strong Lindab appearance and loyalty, over 5000
registered installers in our loyalty program
BA Building Components focused growth:
Lindab Centers in CEE
lindab| we simplify construction
64
BAV branches
BABC residential products
2012
2011
2010
BA Building Components focused growth: Residential
growth in WE leveraging BAV existing branch network
lindab| we simplify construction
65
Russia expansion plan under final
evaluation
Attractive options identified
Decision in the coming months
BA Building Components focused growth:
Russia expansion
lindab| we simplify construction
66
Plannja’s sandwich panel and high profile
business acquired in March 2012
The perfect complement to our industrial
offering and gives us real potential to grow in
the Nordic region
BA Building Components: Extension of Industrial Offer
through acquisition of Sandwich panels
lindab| we simplify construction
Designed for energy
efficiency
Short lead time
reduces labour need
Panels has considerable advantages in terms of energy
efficiency and simplified construction process
Above general construction market
growth (>2x, 2000-2011)
lindab| we simplify construction
68
Moved cassette production from Denmark to Förslöv
Consolidated
production in
Nordics
Improved cost
structure in CEE
Re-located operations in Slovakia
Further streamlining of CEE organization
(beyond cost plan)
Raw material
optimization
Product development focused on steel usage
Optimising supplier base
Changing material when applicable
BA Building Components Cost Savings and Efficiency
improvements: Improving manufacturing cost position
lindab| we simplify construction
69
BABC: The road to 10% EBIT
BA Building Components summary of key activities
Focused growth activities
Further strengthened
offering in Nordics
Lindab Center concept
in CEE
Residential sales
in WE, US new opportunity
being developed
Expansion to growth
markets Russia
Acquisition of Plannja
Sandwich panels
Cost savings and
Efficiency improvements
Consolidation of production in
Nordics
Improved cost structure in
CEE
Raw material optimization
Improve profitability in lowest
performing units
lindab| we simplify construction
Business Area Buildings Systems
70
“The preferred partner of sustainable
solutions for industrial buildings in EU,
Russia and CIS“
lindab| we simplify construction
Single-Storey Buildings
Low-rise, tailor-made buildings for industrial and commercial applications, e.g.
logistics and distribution centres, warehouses and manufacturing plants
Multi-Storey Buildings
Steel framed buildings for offices, commercial buildings, parkings and process plants
Preferred partner for industrial buildings
lindab| we simplify construction
• Builder Network: 75%
on the local / regional level
• Key Accounts: 25%
on the international level
Our market approach
lindab| we simplify construction
73
70-80% of sales 20-30% of sales
Storage
Manufacturing
Commercial
Garages
Offices
Recreational
Customers benefit from a wide category of buildings
types
lindab| we simplify construction
BA Building Systems sales and profit development
74
Sales MSEK
EBIT Margin (%) (excl. one-off items)
1 546
1 900 2 066
978 874
998 1 042
15.8%
21.6% 21.6%
0.7% 2.1%
3.8%
6.4%
0%
4%
8%
12%
16%
20%
24%
0
500
1 000
1 500
2 000
2 500
3 000
2006 2007 2008 2009 2010 2011 201206 LTM
lindab| we simplify construction
75
BABS: The road to 10% EBIT
BABS road to 10% EBIT
Focused growth
activities
Cost savings and
efficiency improvements
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BA Building Systems: Summary of key activities
Focused growth activities Cost savings and
efficiency improvements
Russia expansion
New small building concept
Expand Builder Dealer coverage
Builder activation program
Balancing production capacity
situation in WE/CEE
West-East strategy for
engineering and support
functions
Automation of mfg operations
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Today Russia represents
~1/3 of BA Building
Systems sales
(continued market
growth expected)
Lindab address both
− Foreign investments
through key accounts
− Local investments
through our Builder
Dealer network
0
50
100
150
2008 Dec 2012 May
Very strong
momentum in
Russia!
Lindab BABS sales development Russia
(LTM, index n=100, 2008 Dec)
BA Building Systems focused growth:
Increasing speed in Russia
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Shifting resources from regions
with spare capacity to Russia,
e.g.
− Sales resources in Europe to
key account sales in Russia
− Engineering resources in
Hungary
BA Building Systems focused growth:
Increasing speed in Russia
Recruiting 15-20 new Builder
Dealers each year
Doubling number of engineers
between 2011 and 2012
Extension on Yaroslavl factory
Meeting existing demand through
balancing resources Building for future growth
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Extension of Yaroslavl
factory will be completed by
end of 2012
Capacity will increase 40%
to ~800MSEK when
finished
BA Building Systems focused growth:
Increasing speed in Russia
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Cold formed solution with lower mfg
costs compared to welded solutions
Span width 8-25m
Estimated market size (WE/CEE),
15000 buildings per year
To be launched first half 2013
Highlighted as a key area in customer interviews during our strategy process;
Will be sold through existing builder dealer network
BA Building Systems focused growth:
New small building concept developed
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First station installed in 2011
(second in progress)
Reduced welding labour time
with up to 4x
Automatic data transfer from
own developed engineering
software
BA Building Systems Cost Savings and Efficiency
improvements: Automated welding system
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Right sizing of capacity completed after downsizing mfg operations
in Czech Republic (2012) and Hungary (2009)
Automation and efficient plant layout enable lowest cost production
in Luxembourg
Labour intensive parts still produced in Czech Republic
BA Building Systems Cost Savings and Efficiency
improvements: Right-sizing of production capacity
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BABS: The road to 10% EBIT
BA Building Systems summary of key activities
Focused growth activities
Russia expansion
New small building
concept
Expand Builder Dealer
coverage
Builder activation
program
Cost Savings and
Efficiency improvements
Balancing production
capacity situation in
WE/CEE
West-East strategy for
engineering and support
functions
Automation of mfg
operations
lindab| we simplify construction
10.00
12.00
12.45
14.30
17.00
Agenda
84
− General information and introduction to Lindab
− Trading update and future market development
− Changes in energy efficiency legislation and impact on
Lindab’s business long term
− The road from 6 – 10 %
− Lunch
− Factory tours Förslöv and Grevie
− Business Area Presentations
− Ventilation (BAV)
− Building Components (BABC)
− Building Systems (BABS)
− Conclusion – the road ahead
− Closure of conference
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The road from 6-10% - a mix of focused growth
activities and cost savings/ efficiency improvements
85
~50%
~50%
0%
2%
4%
6%
8%
10%
2011 EBIT% Focused growth activities
Cost savings and Efficiency
improvements
2014 EBIT% target
~50%
~50%
10%
6%
Lindab Group EBIT% Bridge
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A good track record since 2009
86
Average sales above market
3 to 4% p.a. since 2009
Operating leverage of 35%
assuming fixed GP%
Good GP% trend – Highest GP% in
2012 since 2008
86 90 94 98
102 106 110 114
2009 2010 2011 1206LTM
Sales vs. Cost Development (n=100, 2009)
Sales Fixed costs
90
95
100
105
110
2009 2010 2011 201206 LTM
Indexed growth (2009 n=100)
100 101
99
102
90
95
100
105
110
2009 2010 2011 201206 YTD
Indexed Gross profit development
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Accelerating profit improvement activities
− Numerous sales activities implemented recently
− New sales activities
− Full benefit of 2012 cost plan
− Efficiency / margin initiatives
− Increasing synergies from acquisitions
Pace of recovery uncertain
− Will be strongly correlated to macro economics
− Corrective actions if needed
The Road from 6 to 10%
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Conclusion: 10% and beyond
2014 target:
10% EBIT
Full
realization
of strategy
Focus on our strengths
Good geographic balance
− Strong position in CEE
− Russia and CIS
Environmental efficiency
Recovery accelerates
lindab| we simplify construction
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