Sustainability-Linked Bond Framework slide image

Sustainability-Linked Bond Framework

Profitability and cash flow Strong growth while maintaining stable profitability margins, solid cash flow, and declining net-debt ratio Increased earnings... EBITDA before OOI/E (EURM) ...with solid margins and cash flows... Free operating cash flow after financial items and tax (EURM) EBITDA margin before OOI/E (% of net sales) 600 1,800 20.0% 1,600 18.0% 450 1,400 16.0% 1,200 300 150 14.0% 1,000 12.0% 800 0 10.0% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 ...from strong segment performance... EBITA (EURM) 800 Power Solutions Climate Solutions 600 400 200 18.7% 14.5% Power Electronics and Drives 10.9% EBITA margin (%) 0 2017 2018 2019 2020 2021 2022 24 Bond Investor Presentation May 2023 14.2% 17.4% 10.1% ...driving declining net-debt ratio Net interest-bearing debt / EBITDA before OOI/E 3.0x 2.5x Eaton acquisition 2.0x 1.5x Semikron acquisition 1.0x 0.5x 0.0x 2017 2018 2019 2020 2021 2022 ENGINEERING TOMORROW Danfoss
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