Alleima Ab · OMXSTO:ALLEI
Alleima Ab — Q3 2022 Earnings Presentation
26 slides from Alleima Ab's earnings presentation, Oct 17, 2022
Slide 1: Interim report Third quarter 2022
Alleima 1 October 17, 2022 Interim report Third quarter 2022
Slide 2: Safety first
Alleima Third quarter 2022 2 Safety first At Alleima our objective is zero harm to our people, Protective equipment Emergency number Psychological safety the environment we work in, our customers and our suppliers. First aid kit Emergency exit Alarm Assembly point Health & well-being
Slide 3: Göran Björkman, President & CEO
Alleima Third quarter 2022 3 Göran Björkman President & CEO
Slide 4: Q3 highlights
Alleima Third quarter 2022 4 Q3 highlights Short-cycle demand decline and a solid backlog ― Subdued demand in the short-cycle business ― Continued positive order intake growth in several customer segments ― Organic order intake of -10% ― Revenues grew 12% organically and the backlog is solid Earning
Slide 5: Leading sustainability
Alleima Third quarter 2022 5 Leading sustainability Making impact through our operations ― Improved safety performance ― Higher share of recycled steel ― Significant reduction of Greenhouse Gas emission ― Record-high share of female managers No. of Frequency Thousand Thousand Thousand No. of injurie
Slide 6: Towards a more sustainable offering
Alleima Third quarter 2022 6 Towards a more sustainable offering Making impact through our products ― The solar energy industry is one underlying demand driver to the Hydrogen and Renewable Energy segment ― Tube orders for polysilicon production, the upstream of solar photovoltaic panels, were recei
Slide 7: Market development
Alleima Third quarter 2022 7 Market development ― Several customer segments remained positive or stable ― Weakened demand for the short-cycle business in all regions ― Uncertainties in the macro environment remained Q3 2022 year on year underlying demand trend, % of revenues full year 2021
Slide 8: Order intake and revenues
Alleima Third quarter 2022 8 Order intake and revenues Order intake and revenues ― Organic order intake growth of -10% ― Revenues increased organically by % 12% SEK M ― Book-to-bill of 91% Order intake 7 000 160 ― Backlog remained solid Reported (SEK M) 6 000 140 3,869 5 000 120 100 4 000 80 3 000 R
Slide 9: Order intake and revenue growth
Alleima Third quarter 2022 9 Order intake and revenue growth Order intake Revenues % SEK M % SEK M 80 25 000 40 20 000 60 30 20 000 15 000 40 20 15 000 20 10 10 000 10 000 0 0 5 000 5 000 -20 -10 -40 0 -20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20
Slide 10: Earnings
Alleima Third quarter 2022 10 Earnings Adjusted EBITDA and Adjusted EBIT, % Adjusted EBIT at SEK 195 million (123) SEK M % ― Margin 4.6% (3.8), in line with normal seasonality ― Supported by higher volumes and favorable product mix 600 20 ― FX had a positive impact of SEK 99 million ― Cost inflation
Slide 11: Tube
Alleima Third quarter 2022 11 SEK M Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 Tube Order intake 2,552 2,449 11,840 7,857 Organic growth, % -16 38 27 17 Revenues 2,931 2,169 9,157 6,715 Organic growth, % 13 -4 15 -14 Organic order intake growth of -16% Adj. EBIT 145 71 855 436 ― Decline in low-refined an
Slide 12: Kanthal
Alleima Third quarter 2022 12 SEK M Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 Kanthal Order intake 945 755 3,187 2,474 Organic growth, % 2 16 4 30 Revenues 995 719 2,942 2,221 Organic growth, % 12 17 7 21 Organic order intake growth of 2% Adj. EBIT 115 89 419 324 ― Solid demand in industrial heating wit
Slide 13: Strip
Alleima Third quarter 2022 13 Strip SEK M Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 Order intake 372 308 1,278 1,087 Organic growth, % 10 8 7 36 Revenues 344 309 1,148 976 Organic growth, % 3 16 8 14 Organic order intake growth 10% Adj. EBIT 10 23 126 127 ― Coated strip steel from Surface Technology for
Slide 14: Olof Bengtsson, CFO
Alleima Third quarter 2022 14 Olof Bengtsson CFO
Slide 15: Financial summary
Alleima Third quarter 2022 15 Order SEK M intake Revenues Q3 2021 3,512 3,197 Financial summary Organic, % -10 12 Structure, % 1 1 SEK M Q3 2022 Q3 2021 Change Q1-Q3 Q1-Q3 Change % Currency, % 7 8 % 2022 2021 Alloys, % 11 11 Order intake 3,869 3,512 10 16,305 11,419 43 Total growth, % 10 34 Revenues
Slide 16: Bridge analysis, Adjusted EBIT
Alleima Third quarter 2022 16 Bridge analysis, Adjusted EBIT Leverage: N/A 195 2 99 -64 123 -8 -29 Adj EBIT Organic Currency Acquisitions Adj EBIT Q3 2021 Q3 2022 Adj. EBIT Adj. EBIT margin margin 3.8% 4.6%
Slide 17: Capital efficiency
Alleima Third quarter 2022 17 Capital efficiency ― Net working capital increased to SEK 7,091 m (4,798) ― Capital employed increased to SEK 17,496 m (14,326) ― Due to payments of raw material purchases made during ― ROCE declined to -0.5% (8.7) the second quarter, when metal prices were high ― Seaso
Slide 18: Cash flow
Alleima Third quarter 2022 18 Cash flow ― Cash flow from operations amounted to SEK -297 million (-263) ― Free operating cash flow decreased to SEK -323 million (-172) due to increased NWC, attributable to payments of raw material purchases made during the second quarter, when metal prices were high
Slide 19: Capital structure
Alleima Third quarter 2022 19 Capital structure Net debt/ Equity ― Strong financial position ― Unutilized revolving credit facility of SEK 3 billion ― Pension liabilities mainly in Sweden 0.02x Pension liabilities Leasing liabilities (IFRS16) Other cash less liabilities Net debt Net debt/ SEK M SEK
Slide 20: Guidance and outcome
Alleima Third quarter 2022 20 Guidance and outcome Outcome Q3 2022 Guidance ahead of Q3 2022 Capex (Cash) SEK 155 million in Q3 Below SEK 650 million in FY 2022 SEK 337 million year to date Currency translation and SEK 94 million SEK 140 million in Q3 transaction effect Total currency effect SEK 99
Slide 21: Guidance Q4 2022 and FY 2022
Alleima Third quarter 2022 21 Guidance Q4 2022 and FY 2022 Capex (cash) ― Estimated to below SEK 600 million for 2022 Currency effects ― Given currency rates at end of September 2022 the effect on operating profit from transaction and translation would be SEK +100 million for Q4 2022 Metal price eff
Slide 22: Outlook for the fourth quarter
Alleima Third quarter 2022 22 Outlook for the fourth quarter ― The market sentiment is mixed going into the fourth quarter, while the momentum is positive for parts of the business, there are also increased uncertainties due to inflationary pressure and impact from energy supply issues and prices, i
Slide 23: Summary
Alleima Third quarter 2022 23 Summary ―Listing on Nasdaq Stockholm ―Slowed short-cycle demand and increased uncertainties ―Positive sentiment among several customer segments ―Solid backlog ―Margins in line with seasonality, weak leverage ―Sustainable customers segments generating business
Slide 24: Q&A
Alleima Third quarter 2022 24 Q&A
Slide 25: Thank you
Alleima Third quarter 2022 25 Thank you alleima.com
Slide 26: Disclaimer
Alleima Third quarter 2022 26 Disclaimer This presentation contains “forward-looking” statements that reflect the company’s current expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expec