Alleima Ab · OMXSTO:ALLEI
Alleima Ab — Q4 2022 Earnings Presentation
29 slides from Alleima Ab's earnings presentation, Jan 24, 2023
Slide 1: Interim and full year report, Fourth quarter 2022
Alleima 1 January 24, 2023 Interim and full year report Fourth quarter 2022
Slide 2: Safety first
Alleima Fourth 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 Fourth quarter 2022 3 Göran Björkman President & CEO
Slide 4: Q4 highlights
Alleima Fourth quarter 2022 4 Q4 highlights An overall solid market sentiment ― Organic order intake of 17% ― Order intake growth in several customer segments ― Oil and Gas offshore investments materialized into significant orders ― First ever major order in the Medical segment ― Continued subdued d
Slide 5: Full year 2022 highlights
Alleima Fourth quarter 2022 5 Full year 2022 highlights A year of record-high revenues ― Organic order intake growth of 19% ― Organic revenue growth of 13% ― Book-to-bill of 120% Improved earning ― Adjusted EBIT margin of 9.1% (7.6) ― Higher revenues and an improved product mix ― Price increases ful
Slide 6: Performance in line with financial targets
Alleima Fourth quarter 2022 6 Performance in line with financial targets Organic growth Earnings Deliver profitable organic revenue growth in line with or Adjusted EBIT margin (excluding items affecting above growth in targeted end-markets over a business comparability and metal price effects) to av
Slide 7: Leading sustainability
Alleima Fourth quarter 2022 7 Leading sustainability Making impact through our operations ― Commitment to set targets in line with the Science Based Targets initiative ― Focus on improving safety performance ― Increased share of recycled steel ― Significant reduction of Greenhouse Gas emission ― Rec
Slide 8: Towards a more sustainable offering
Alleima Fourth quarter 2022 8 Towards a more sustainable offering Making impact through our products Breakthrough order for OCTG tubes for carbon capture & storage ―The order is a breakthrough for this segment and important contribution to the ongoing initiative to grow the renewable business ―Corro
Slide 9: Market development
Alleima Fourth quarter 2022 9 Market development ― Several customer segments remained on a positive or stable trajectory, supported by long-term trends ― Weakened yoy demand for the short-cycle business, with a flat sequential development ― Positive demand development in Asia Q4 2022 year on year un
Slide 10: Order intake and revenues
Alleima Fourth quarter 2022 10 Order intake and revenues Order intake and revenues ― Organic order intake growth of 17% ― Organic revenue growth of 14% SEK M % ― Book-to-bill of 113% in Q4, ― Book-to-bill of 120% R12M Order intake 7 000 140 ― Backlog is solid going into 2023 Reported (SEK M) 6 000 1
Slide 11: Order intake and revenue growth
Alleima Fourth quarter 2022 11 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Earnings
Alleima Fourth quarter 2022 12 Earnings Adjusted EBITDA and Adjusted EBIT, % Adjusted EBIT at SEK 555 million (353) SEK M % ― Margin 10.8% (9.0) ― Higher revenues and favorable product mix 600 20 ― FX had a positive impact of SEK 14 million ― Total price increases fully offsetting cost inflation 500
Slide 13: Tube
Alleima Fourth quarter 2022 13 SEK M Q4 2022 Q4 2021 FY 2022 FY 2021 Tube Order intake 4,119 2,938 15,959 10,795 Organic growth, % 19 61 25 26 Revenues 3,647 2,815 12,804 9,530 Organic growth, % 12 4 14 -10 Organic order intake growth of 19% Adj. EBIT 374 271 1,229 707 ― Several umbilical and OCTG o
Slide 14: Kanthal
Alleima Fourth quarter 2022 14 SEK M Q4 2022 Q4 2021 FY 2022 FY 2021 Kanthal Order intake 1,279 883 4,466 3,357 Organic growth, % 23 21 9 28 Revenues 1,031 786 3,972 3,007 Organic growth, % 13 -1 9 15 Organic order intake growth of 23% Adj. EBIT 193 121 611 445 ― First ever major order in the Medica
Slide 15: Strip
Alleima Fourth quarter 2022 15 Strip SEK M Q4 2022 Q4 2021 FY 2022 FY 2021 Order intake 427 441 1,705 1,529 Organic growth, % -11 -4 2 22 Revenues 481 334 1,628 1,310 Organic growth, % 33 -6 14 8 Organic order intake growth -11% Adj. EBIT 82 40 207 167 ― Industrial and Medical segments remained soli
Slide 16: Olof Bengtsson, CFO
Alleima Fourth quarter 2022 16 Olof Bengtsson CFO
Slide 17: Financial summary
Alleima Fourth quarter 2022 17 Order SEK M intake Revenues Q4 2021 4,262 3,935 Financial summary Organic, % +17 +14 Structure, % +1 +0 SEK M Q4 2022 Q4 2021 Change FY 2022 FY 2021 Change Currency, % +9 +7 % % Alloys, % +9 +9 Order intake 5,825 4,262 37 22,130 15,681 41 Total growth, % +37 +31 Revenu
Slide 18: Leverage: Bridge analysis, Adjusted EBIT
Alleima Fourth quarter 2022 18 Leverage: +33% Bridge analysis, Adjusted EBIT 555 4 14 ― Strong operating leverage and organic development ― Currency effects impacted by realized project hedges 185 99 ― Positive contribution from Gerling acquisition -8 353 Adj EBIT Organic Currency Acquisitions Adj E
Slide 19: Capital efficiency
Alleima Fourth quarter 2022 19 Capital efficiency ― Net working capital increased to SEK 6,519 m (4,567) ― Capital employed increased to SEK 16,911 m (14,803) ― Yoy impact from higher metal prices and growth mainly from higher net working capital ― Sequential decrease from lower inventory and higher
Slide 20: Cash flow
Alleima Fourth quarter 2022 20 Cash flow ― Cash flow from operations amounted to SEK 1,107 million (940) ― Free operating cash flow increased to SEK 801 million (684), from higher earnings and changes in working capital ― Sequential increase in line with normal seasonality. ― Higher earnings and low
Slide 21: Capital structure
Alleima Fourth quarter 2022 21 Capital structure Net debt/ Equity ― Strong financial net debt position ― Unutilized revolving credit facility of SEK 3 billion 0.0x Pension liabilities Leasing liabilities (IFRS16) Other cash less liabilities Net debt Net debt/ SEK M SEK M SEK M SEK M Adjusted EBITDA
Slide 22: Guidance and outcome
Alleima Fourth quarter 2022 22 Guidance and outcome Outcome Q4 2022 Guidance ahead of Q4 2022 Capex (Cash) SEK -319 million in Q4 Less than SEK 600 million SEK -656 million FY 2022 in FY 2022 Currency translation and SEK 148 million SEK 100 million in Q4 transaction effect Total currency effect SEK
Slide 23: Guidance Q1 2023 and FY 2023
Alleima Fourth quarter 2022 23 Guidance Q1 2023 and FY 2023 Capex (cash) ― Estimated to approximately SEK 800 million for 2023 Currency effects ― Given currency rates at end of December 2022 the effect on operating profit from transaction and translation is estimated to approximately SEK 100 million
Slide 24: Energy update
Alleima Fourth quarter 2022 24 Energy update Energy cost 2022 vs. 2021 ― Estimated cost increase of approximately SEK 200 million mainly in Europe Looking into 2023 ― Well hedged for 2023 in Sweden ― Electricity: 90% ― Natural gas (LNG): 60% ― Propane (LPG): 50% Active management of energy consumpti
Slide 25: Outlook for the first quarter 2023
Alleima Fourth quarter 2022 25 Outlook for the first quarter 2023 ― Momentum is positive for several of our customer segments, and underlying trends are expected to mitigate the impact of uncertainties in the macroeconomic environment during 2023 ― Demand is expected to remain subdued for the short-
Slide 26: Summary
Alleima Fourth quarter 2022 26 Summary ―Positive sentiment among several customer segments, driven by strong underlying trends ―Ongoing work for reduced cyclicality and mix shift in progress ―Subdued short-cycle demand and increased uncertainties, staying flat on a sequential basis ―Solid backlog ―S
Slide 27: Q&A
Alleima Fourth quarter 2022 27 Q&A
Slide 28: Thank you
Alleima Fourth quarter 2022 28 Thank you alleima.com
Slide 29: Disclaimer
Alleima Fourth quarter 2022 29 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 expe