Slide 1: Third Quarter 2023
THIRD QUARTER 2023 Krister Blomgren, CEO and Jens Blom, CFO 27 October, 2023
Slide 2: Change the World of Digging
CHANGE THE WORLD OF DIGGING FY 2012 FY 2022 YTD 2023 Asia-Oceania Asia-Oceania 6% Asia-Oceania Europe 2% Americas 7% 10% 8% Americas 15% Nordics Nordics Nordics 88% Europe 54% 45% 32% Europe 33% (Americas <0,5%) NET SALES SPLIT PER REGION Q3 2023 2
Slide 3: Exceptional History of Organic Sales Growth and Margin Expansion
EXCEPTIONAL HISTORY OF ORGANIC SALES GROWTH AND MARGIN EXPANSION 1 938 Net sales, MSEK EBIT margin1 (pre-IPO expenses) 1 488 1 194 1 065 1 077 951 780 589 22% 22% 441 444 496 20% 20% 18% 17% 15% 15% 16% 13% 11% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Note: Information is derived from
Slide 4: Q3 Business Highlights
Q3 BUSINESS HIGHLIGHTS • Growth on new markets has reduced dependency of the cyclic Nordic market. • Stabilization of order intake in the Nordics and Europe. • Strong net sales and order intake growth in Americas. • Participation at Utility Expo in Kentucky, USA to expand further in the utility segm
Slide 5: Q3 Figures in Brief
Q3 FIGURES IN BRIEF -11% 2% 40% 14% 64% Organic net Organic order Gross Text EBIT ReturnText on capital sales intake margin margin employed Q3 2023 5
Slide 6: Business and Financial Development
BUSINESS AND FINANCIAL DEVELOPMENT Q3 2023 6
Slide 7: Q3 – Stabilized Order Intake
Q3 – STABILIZED ORDER INTAKE Organic order intake and net sales per geographic region, MSEK Nordics Europe Americas Asia-Oceania Chungcheongnam-do Mature Early Early Early market days days days Strömsund Tewkesbury Veenendaal Vasa Wertheim Oslo Paris Montréal Connecticut Odense Sydney 217 134 79 145
Slide 8: YTD - Net Sales Growth Outside the Nordics
YTD - NET SALES GROWTH OUTSIDE THE NORDICS Organic order intake and net sales per geographic region, MSEK Nordics Europe Americas Asia-Oceania Chungcheongnam-do Mature Early Early Early market days days days Strömsund Tewkesbury Veenendaal Vasa Wertheim Oslo Paris Montréal Connecticut Odense Sydney
Slide 9: Order Intake Stabilized in Q3
ORDER INTAKE STABILIZED IN Q3 Order intake and net sales development per quarter, MSEK Key comments Order intake Net sales • Net sales decreased 6%, organic -11%, currency effect of 19 MSEK. 774 • Order intake increased 7%, 691 organic 2%, currency effect of 15 MSEK. 582 553 519 534 541 508 • Macroe
Slide 10: Lower EBIT in the Quarter
LOWER EBIT IN THE QUARTER EBIT and EBIT margin per quarter Key comments EBIT, MSEK EBIT margin, % • EBIT decreased 47% to 55 (104) MSEK. -47% • EBIT margin of 14.1% (25.0%). 198 • EBIT impacted by lower volumes, campaigns and less favourable product mix. 121 99 104 104 91 91 83 77 55 25.3 25.0 22.4
Slide 11: Overview of Costs and EBIT
OVERVIEW OF COSTS AND EBIT 2023 2022 2023 2022 MSEK Q3 Q3 R12 FY Key comments Net sales 391 416 2,131 1,938 COGS -234 -229 -1,215 -1,105 • Stable gross margin • EBIT margin pre-IPO 14.1% Gross margin 40.2% 45.0% 43.0% 43.0% • (25.2%) and 22.4% Price increases in R12.and in January Selling expenses -
Slide 12: Strong Cash Flow
STRONG CASH FLOW Cash flow and net working capital overview, MSEK Operating cash flow per quarter, MSEK 2023 2022 2022 277 MSEK Q3 Q3 FY Cash flow before changes in working 29 107 449 capital Inventories 324 393 443 108 92 63 56 Accounts recievables 270 329 347 45 5 5 Other receivables 9 20 29 2021
Slide 13: High ROCE Level
HIGH ROCE LEVEL Return on capital employed overview Average capital employed and ROCE 2023 MSEK 2019 2020 2021 2022 R12 Average capital employed, MSEK ROCE, % EBT 192 218 341 415 460 800 750 750 100,0 Interest expense 3 2 2 8 22 717 700 621 Capital employed, 80,0 beginning 484 543 699 735 708 600 of
Slide 14: Financial Targets YTD
FINANCIAL TARGETS YTD Growth Profitability Capital efficiency Capital structure Exceed the growth in existing Have an EBIT margin in Continue to achieve an Maintain a strong capital market through organic excess of 20 per cent, industry-leading capital structure supporting further growth. measured o
Slide 15: Summary and Outlook
SUMMARY AND OUTLOOK • Net sales slightly above our expectations despite turbulent macroeconomic environment. Ska bytas mot Bauma-bild! • Stabilizing order intake after several consecutive quarters of decline. • Significant net sales and order intake growth in Americas. • Strong cash flow provide abi
Slide 16: For more information visit www.engcongroup.com
For more information visit www.engcongroup.com