Alleima Ab · OMXSTO:ALLEI
Alleima Ab — Q4 2023 Earnings Presentation
24 slides from Alleima Ab's earnings presentation, January 2024
Slide 1: January 2024 Q4 roadshow
Alleima 1 January 2024 Q4 roadshow
Slide 2: Q4 highlights
Alleima Fourth quarter 2023 2 Q4 highlights Continued solid order backlog ― Mixed market demand ― Strong underlying market trends in some customer segments ― Negative organic order intake growth on high comparables ― Solid backlog provides confidence for near-time deliveries ― Slight revenue decline
Slide 3: Market development
Alleima Fourth quarter 2023 3 Market development ― Continued mixed market development ― Signs of stabilization in the short-cycle business ― Solid underlying demand in several customer segments Perceived year on year underlying market demand trend
Slide 4: Tube
Alleima Fourth quarter 2023 4 SEK M Q4 2023 Q4 2022 FY 2023 FY 2022 Tube Order intake 3,770 4,119 16,052 15,959 Organic growth, % -7 19 -3 25 Revenues 3,557 3,647 14,475 12,804 Backlog remained solid Organic growth, % -1 12 9 14 Adj. EBIT 430 374 1,491 1,229 ― Organic order intake growth of -7 % exc
Slide 5: Kanthal
Alleima Fourth quarter 2023 5 SEK M Q4 2023 Q4 2022 FY 2023 FY 2022 Kanthal Order intake 981 1,279 4,321 4,466 Organic growth, % -23 23 -7 9 Revenues 1,082 1,031 4,609 3,972 Organic growth, % 6 13 11 9 Order intake growth ex. major orders of 5 % Adj. EBIT 207 193 844 611 Margin, % 19.1 18.7 18.3 15.
Slide 6: Strip
Alleima Fourth quarter 2023 6 SEK M Q4 2023 Q4 2022 FY 2023 FY 2022 Strip Order intake 395 427 1,310 1,705 Organic growth, % -5 -11 -24 2 Revenues 399 481 1,585 1,628 Organic growth, % -15 33 -5 14 Continued soft market demand Adj. EBIT 29 82 109 207 Margin, % 7.3 17.0 6.9 12.7 ― Continued weak cons
Slide 7: Outlook for the first quarter 2024
Alleima Fourth quarter 2023 7 Outlook for the first quarter 2024 ― Despite mixed demand in our markets during the quarter, underlying megatrends are expected to continue to mitigate the impact of uncertainties in the macroeconomic environment in the coming year. ― With our solid backlog, we have goo
Slide 8: Summary
Alleima Fourth quarter 2023 8 Summary ―A well executed year with record-high revenues and earnings ―Solid backlog ―Momentum from underlying tailwinds ―Continued soft market conditions in some segments ―Successful price increases ―Consistent strategy execution towards profitable growth
Slide 9: Company presentation
Alleima 9 Company presentation
Slide 10: A world-leading advanced materials company
Alleima 10 A world-leading advanced …serving ten customer segments materials company 21% 21% 18% 11% 8% ― High value-added products in advanced stainless steels and special alloys as well as products for industrial heating Oil and Gas Industrial Chemical and Industrial Consumer Petrochemical Heating
Slide 11: Premium offering across three divisions
Alleima 11 Premium offering across three divisions Tube 2023 Kanthal 2023 Strip 2023 Seamless tubes and other long products in advanced stainless steels used in 14.5bn Revenues (SEK) Resistance wire for heating elements (consumer and industrial heating) as well 4.6bn Revenues (SEK) Wide range of str
Slide 12: Fully integrated value chain with world-class capabilities
Alleima 12 Fully integrated value chain with world-class capabilities Customer Need Identification Research & Primary Melting Hot Working Cold Working Finishing Sales & Development Marketing Ensure Enabling close Secure product Prerequisite for new independence and control customer collaboration qua
Slide 13: Global production footprint and go-to-market strategy
Alleima 13 Global production footprint and go-to-market strategy Sandviken, Sweden One of Sweden’s ― Tube mills (Seamless largest industrial sites in tube and pipe, steam terms of ground area generator tubing, with c. 3,000 people Zirconium tubing) working ― Rock Drill Steels for Alleima ― Precision
Slide 14: Focused strategy execution for profitable growth
Alleima 14 Focused strategy execution for profitable growth 1. 1 2.2 3.3 4.4 Profitable Growth Materials Innovator and Operational and Industry Leading Technology Leader Commercial Excellence Sustainability — Capitalize on the megatrends of — Focus R&D towards new business — Continuous improvements
Slide 15: A growth strategy built to capitalize on global megatrends
Alleima 15 A growth strategy built to capitalize on global megatrends… Changing demographics Increasing and changing Electrification of industry Growth in emerging energy demand and transportation markets — Global population growth — Global energy demand — Electrification of vehicles — Rising living
Slide 16: Our markets are expected to grow at 7% CAGR until 2027
Alleima 16 Our markets are expected to grow at 7% CAGR until 2027… Customer segments growth Serviceable addressable market (SAM) CAGR 2022-2027 * size and growth Chemical and Hydrogen and Petrochemical Renewable Energy SEK B 7% CAGR CAGR 7% CAGR 49% 166 156 155 Medical Industrial Heating 146 137 CAG
Slide 17: Prioritized segments in focus for capital allocation
Alleima Capital Markets Day 2023 17 Prioritized segment Prioritized segments in focus for capital allocation Four prioritized segments Hydrogen and ― Chemical and Petrochemical Growth Renewable Energy ― Hydrogen and Renewable Energy Industrial Medical Heating ― Medical Chemical and ― Industrial Heat
Slide 18: Growth investments and acquisitions continue to strengthen the company
Alleima Capital Markets Day 2023 18 Growth investments and acquisitions continue to strengthen the company Value Ongoing activities M&A Completed Capacity Capacity Capacity Capex / growth investments Capability & Expansion 2023-2026: Expansion 2023 - : Expansion 2023 - : Industrial Heating Acq
Slide 19: Improved product mix with higher revenues from targeted segments
Alleima Capital Markets Day 2023 19 …indicating an improved product mix with higher revenues from targeted segments… Current revenue split Revenue split ambition** ― Grow in line with or above targeted end markets ― Includes targeted segments ~32% as well as attractive niches ~45% across the busines
Slide 20: Financial background – focus on resilience
Alleima 20 Financial background – focus on resilience Organic growth % Order intake Revenues 19% 8% -6% 13% SEK M 26% SEK M -26% -9% -3% 41% 12% -2% 33% -27% 28% -1% -11% 20 669 22 130 21 684 18 405 16 851 15 654 13 925 13 847 15 681 12 230 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Adj. EBIT
Slide 21: Performance vs. financial targets
Alleima Fourth quarter 2023 21 Performance vs. financial targets % % Organic 14 13 Earnings 10,5 10,4 growth 12 Average 11% Adjusted EBIT 10 Average 10 margin (excluding 8 9.8 % Deliver profitable items affecting 9,5 organic revenue 8 comparability and 9,1 growth in line with 6 metal price effects)
Slide 22: Nature of the business – metal price effect
Alleima 22 Nature of the business – metal price effect Metal price trend and how it affects different measures ― Isolating the effect from metal price changes in the business where market price for metal has a direct impact on pricing. ― At constant volumes, mix and lead time the effects can be desc
Slide 23: Winning platform set to unlock shareholder value
Alleima 23 Winning platform set to unlock shareholder value 1 Premium offering with solid market positions and diverse customer segment exposure 2 Fully integrated value chain with prominent metallurgy expertise and global footprint 3 Multiple and tangible levers to deliver profitable growth, capita
Slide 24: Thank you
Alleima 24 Thank you alleima.com