9/4/2018 7:30 AM Ahlsell hosts a Capital Markets Day in Stockholm today

Ahlsell, the leading Nordic distributor of installation products, tools and supplies, today organises a capital markets day (CMD) for institutional investors, analysts and financial media.

During the CMD, Johan Nilsson, CEO, Kennet Göransson, CFO, and other members of Group Management will present Ahlsell's strategy for profitable growth. The day includes topics such as resilience and market exposure in the main markets, profitability development, organic growth initiatives and an M&A-strategy deep dive.

Ahlsell will reiterate both the medium-term financial targets (see below) and the comments regarding outlook as well as efficiency-enhancing measures made in the result presentation for the second quarter.

Medium-term financial targets:

1. Sales growth
Target: Achieve net sales growth of 2-3 percentage points above market growth through a combination of organic growth and acquisitions.

2. EBITA margin
Target: Continuous increase in the adjusted EBITA margin.

3. Cash generation
Target: A cash conversion over time of average 90%.
* Operating cash flow / EBITDA. NOTE! From 2019, the calculation of key ratios will be based on an EBITDA adjusted with the IFRS 16 effect. This is because the key figures should be comparable over time.

4. Net debt / adjusted EBITDA
Target: Net debt/adjusted EBITDA of 2.0-3.0. The capital structure shall safeguard a solid financial position whilst allowing strategic initiatives.

5. Dividend Policy
Target: Pay a dividend equivalent to 40-60% of net profit. The dividend must consider acquisitions, the Company's financial position, cash flows and future growth opportunities.

In addition, Ahlsell will provide an update on the estimated effect of the new IFRS 16 regulatory framework on financial reporting when the framework is introduced in January 2019. The reporting for segments, i.e. Sweden, Norway, Finland, Denmark, Other and Central, will not be affected. Adjustments following IFRS 16 will only be made at Group level.

Estimated effect of IFRS 16 on Group level

Gross margin +0,3 percentage points
EBITDA margin +2,0 percentage points
EBITA margin +0,3 percentage points
EBIT margin +0,3 percentage points
Earnings per share Marginal impact
Net debt / adjusted EBITDA +0,3x
Balance sheet + BSEK 2,4

Ahlsell will also highlight the topic sustainability, where Ahlsell's goal-oriented work has yielded results. In an independent external quantitative analysis conducted by Arabesque S-Ray™, Ahlsell is ranked top 10% of 6,836 listed companies globally. The analysis includes around 200 key ratios in sustainability and UN Global Compact.

The CMD will not be live broadcasted, however, the presentation material will be published at 12:00 CEST at www.ahlsell.com/investors/reports-and-presentations/.

For further information, please contact:

Karin Larsson, Head of IR and external communications
+ 46 8 685 59 24, Karin.Larsson@ahlsell.se

Ahlsell is the Nordic region’s leading distributor of installation products, tools and supplies for installers, construction companies, facility managers, industrial and power companies and the public sector. The unique customer offer covers more than one million individual products and solutions. The Group has a turnover of just over BSEK 29 and is listed on Nasdaq Stockholm. About 97% of revenue is generated in the three main markets of Sweden, Norway and Finland. With about 5,800 employees, more than 230 branches and three central warehouses, we constantly fulfil our customer promise: Ahlsell makes it easier to be professional!

Press release
September 4, 2018