Semcon : Presentation Q3 2021 (pdf)

INTERIM REPORT Q3 2021.

Presentation 19 October 2021

CEO Markus Granlund and CFO Björn Strömberg

Strong growth and high profitability.

Group financial development
	Jul-Sep	Jan-Sep	FY
	2021	2020	2021	2020	2020
Net sales, mSEK	371	335	1,235	1,226	1,627
Total sales growth, %	11	-18	1	-11	-12
Organic growth, %	6	-17	0	-9	-13
Operating profit, mSEK	33	28	119	81	130
Operating margin, %	9.0	8.5	9.6	6.6	8.0
EPS after dilution, SEK	1.41	1.21	5.06	3.41	5.70
No. of employees at the	1,989	2,016	1,989	2,016	1,821
end of the period

• Second consecutive quarter with total sales growth > 10%
• Organic growth driven by e.g., growth in life science and public sector
• Squeed consolidated from May
• Continued positive margin trend - RTM EBIT margin still on a historically high 10.2%

Net sales distribution.

Group net sales per industry

Jan-Sep 2021

Increased industry diversification,

transferring know-how between sectors

A strong net cash position.

• Cash flow in 2020 positively impacted by COVID-19 volume effects
• Cash conversion > 100% - stable cash flow in Q3 2021
• Net cash of close to mSEK 200 also after dividend
• Holding of own shares: 623'

Group financial development	Jan-Sep	FY
	2021	2020	2020
Cash flow from current activities, mSEK	149	213	248
Free cash flow, mSEK 1)	119	180	204
Cash conversion, % 2)	134	301	204
Working capital/RTM net sales, % 3)	4.5	4.0	5.5
Net cash, mSEK	189	186	199
Equity ratio, %	60	59	60

1. Cash flow from current activities less investments and repayment of lease liabilities (rental payments)

Significant firepower

2) Free cash flow divided by profit after tax

to grow further

3) Working capital excl. cash incl. deferred tax liabilities

Financial objectives.

Total annual revenue growth of at least 10%

Operating margin (EBITA) of at least 10%

Dividend policy approx. 50% of profit after tax over time

The net debt / EBITDA ratio should not exceed approx. 1.5 times