Debt Investor Presentation April 2021 slide image

Debt Investor Presentation April 2021

2020 financial performance Generating record cash flow despite COVID-19 Danfoss Danfoss Quarterly net sales growth (in local currency) EURM % % 2019 2020 Pro Forma 2020 % 2% 3% 1% Net sales 6,285 5,828 7,276 0% EBITDA before other operating income and expenses 1,028 16.4 1,008 17.3 1,131 15.5 -3% EBITDA 1,026 16.3 954 16.4 1,057 14.5 -6% -6% -7% EBITA 771 12.3 723 12.4 760 10.4 -9% -12% Free operating cash flow after financial items and tax Net interest bearing debt 463 7.4 493 8.5 1,048 537 3,147 -15% -14% Full Year 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net interest bearing debt / EBITDA before OOI/E 1.0x 0.5x 2.8x • Danfoss has seen a gradual return to pre-COVID sales levels after the low point during Q2 2020 . • . In Q4 2020 Danfoss was back above 2019 sales volume with 2% local currency growth To counter lower sales during first half of 2020, fast actions were taken to reduce cost and CAPEX spend demonstrating the resilience of our strategy and the flexible operating model Fixed costs were adjusted to a lower level of activity without making permanent reductions in the workforce or discontinuing strategic projects EBITDA margin before other operating income and expenses ended at 17.3% - Free operating cash flow increased to EUR 493m in 2020 a record cash flow for Danfoss - confirming the cash generating capability of the Danfoss business model See slide 30-31 for Pro Forma breakdown 24 Danfoss Debt Investor Presentation April 2021 Confidential ENGINEERING TOMORROW Danfoss
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