Lifco AB (publ)

Thank you.

Good morning everyone and welcome to our Q4 conference call. We can directly move into page number two in our investor presentation and just on a very high level look at the group's financial performance where we had a net sales growth in the quarter of 7%. We had an EBITDA growth of 13% obviously leading to better margins. If we then look at the full year numbers, we grow sales with 13.5% and EBITDA with 21.5%. If we look at the quarter specifically, we had an organic decline in sales of around 5%. We will come back a little bit later to the reasons behind that. We had a positive effect from foreign exchange of 2.5% and acquisition contributed with 10% in the quarter. If we look at the full year numbers, the organic sales development was flat and we had a positive effect from for exchange of four percent acquisition helped with ten percent and we had a slight negative effect from a divestment that took place in q1 2022 or minus one percent i can also already here just mention we publish every on a yearly basis the organic beta development and the beta development organically was plus six percent for the year which is basically in line with our strategy. It's always focusing on the profitability and profits in our companies. So despite a flat year in organic sales, we are still developing our profits with 6% organically. Just a short comment on the cash flow. We have strong cash flow in the Q4 2022, also a good cash flow in this quarter. On the full year basis, we have a big improvement of 45%, mainly related to weaker cash flow in 2022 due to the material supply situation and the inventory situation. That is now gradually reversing in the right direction for us. And with that, we can go into page number three and look a little bit more specifically on the different business areas. If we start with dental, it's both a solid quarter and a solid year for dental. I would say back to normality after a period of time where we had COVID and mixed effects happening due to external factors that are now being stabilized for us. So both the quarter is developing strongly as we want it to do, and the same for the full year numbers. Basically a combination of organic growth, helped by acquisition, and also we have foreign exchange contribution in this business area. If we then go further down to demolition of tools, we have a decline in sales in the quarter, and that is now basically the third quarter in a row with slight negative organic development. and we basically are facing weaker market conditions. We do have in Q4 some positive effects from what we call special orders that have slightly higher profitability than the normal orders, so that's helping us in the quarter, which also helps the margin development in the quarter. But overall, we can say now also on the more high-level perspective that we had a period of time with very strong organic growth in this business area, in 21, 22, and in the early part of 23, and now we are now seeing more of a weaker market conditions than we are currently in. But despite that, we end the year with 16% growth in profits, partly thanks to strong focus on profitability organically, but also helped by acquisitions. And in the third area, fiscal solutions, we have a very strong full-year development. uh where basically all all areas organic development was positive acquisition helped and also foreign exchange in the quarter specifically we have more of a i would say more mixed market conditions we have many companies doing very well we have a few and some companies having a little bit more challenging market conditions due to the business cycle that they're currently entering into also here it's important to highlight that this is an area we also have very high organic growth in 21 and 22 So with that, we can go into page number four. And this is now a slide that we normally only look at year end. So now we have summarized another year in LIFCO. We follow the development of LIFCO's growth in profits since the IPO. And you can see that 23 was another very strong year for us, 22% EBITDA growth, constituting of 12% coming from acquisitions. So that's basically in line with our average growth of this period since the IPO. We have been growing our company profit-wise from acquisition with average 12%, and we do the same in 23. When it comes to organic development, we are in 23, growing 6%, which is slightly lower than the average. But we're also coming out of a period with extraordinary high organic growth in 21 and 22, as you can see in this slide, where we grew 21% in 21 and 11% in 22. This year, we only grow 6%. And we had also, if you look at the very left column here on this page, we can then conclude that the average of LIVCO has then been 12% acquisition growth, 8% on average, every year, 8% organic growth on average. And then we have been helped through the week Swedish krona, you can say, during this long time period. Yes.

And with that, we can go to page number five and continue looking at some long-term development trends. We have been growing with CAGR, EBITDA with 22% since the IPO. We have been growing the earnings per share with 19%. We have basically reduced our net debt to EBITDA, which means that we had very strong cash flow generation during this period, and so we grow our interest rate and net up with 17%.