Debt Investor Presentation April 2021 slide image

Debt Investor Presentation April 2021

Profitability and cash flow Low earnings volatility, stable cash flow, increasing profitability and predictable debt reduction Low earnings volatility... EBITDA before OOI/E (EURM) 1.100 1.000 ...with increasing margins and cash flows... 600 Free operating cash flow after financial items and tax (EURm) EBITDA margin before OOI/E (% of net sales) 18,0% 450 17,0% 900 300 16,0% 800 150 15,0% 700 0 14,0% 2014 2015 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 ...from strong segment performance... EBITA (EURM) 500 Power Solutions Climate Solutions Drives 400 15.1% 16.4% 16.8% 300 16.8% 200 9.6% 100 0 2016 2017 2018 2019 2020 EBITA margin (%) ...has led to continued debt reduction Net interest-bearing debt / EBITDA before OOI/E (x) 3,0x Eaton Hydraulics acquisition Pro-forma 2020 leverage 2,5x Vacon acquisition 2,0x 1,5x 13.6% 1,0x 0,5x 0,0x 2014 2015 2016 2017 2018 2019 2020 2020PF EBITDA before OOI/E: EBITDA before other operating income and expenses Impact from IFRS 16 Lease: 2019 and 2020 EBITDA impact of EUR 59m and EUR 61m, 2019 and 2020 lease liabilities impact of EUR 142m and EUR 174m 23 Danfoss Debt Investor Presentation April 2021 Confidential ENGINEERING TOMORROW Danfoss
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