Slide 1: Q3 roadshow 2024
Alleima 1 2024 Q3 roadshow
Slide 2: Q3 highlights
Alleima Third quarter 2024 2 Q3 highlights Revenues Organic revenue Mixed market sentiment (SEK M) growth ― Backlog remains solid ― Well positioned for market rebound 4,498 3% Diversified segment exposure ― Solid Q3 earnings ― FX headwind Adj. EBIT Adj. EBIT margin (SEK M) Increasing production capa
Slide 3: Market development
Alleima Third quarter 2024 3 Market development ― Mixed market sentiment ― Broad exposure reduces volatility Perceived year on year underlying market demand trend
Slide 4: Order intake and revenues
Alleima Third quarter 2024 4 Order intake and revenues Order intake R12 Order intake R12 Revenues and book-to-bill ― Organic order intake growth of (SEK M) SEK M SEK M % -8% for rolling 12 months 19,646 25 000 6 000 140 ― Organic revenue growth of 3% 5 000 120 20 000 100 ― R12 book-to-bill 100% 4 00
Slide 5: Earnings
Alleima Third quarter 2024 5 Earnings Adjusted EBIT Adjusted EBIT at SEK 314 million (350) SEK M % 700 12 ― Margin of 7.0% (7.6) ― FX headwind 600 ― Diversified product mix contribution 10 ― Staying with our strategy 500 8 Free operating cash flow of SEK 411 million (812) 400 6 300 4 200 2 100 0 0 Q
Slide 6: Improved margin resilience
Alleima Third quarter 2024 6 Improved margin resilience Historically strong Q3 EBIT margin… 8% 7,6% 7,0% 7% Average 19–22 4.6% 6% 5% 4% 3% 2% 1% 0% Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 EBIT margin, adj. Note: The graph shows adj. EBIT margin development of the business area Sandvik Materi
Slide 7: Growth investments and acquisitions continue to strengthen the company
Alleima 7 Growth investments and acquisitions continue to strengthen the company Ongoing activities Value Capacity Capacity Capacity Expansion Expansion Expansion 2024-2026: 2024-2026: 2024-2025: M&A Completed Increase Establish Increase Capex / growth investments Nuclear medical wire heating Ca
Slide 8: Tube
Alleima Third quarter 2024 8 SEK M Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023 Tube Order intake, R12 14,232 16,401 - - Organic growth, R12 ,% -9 2 - - Revenues 3,077 3,130 10,314 10,917 Organic growth, % 3 4 1 13 Organic revenue growth Adj. EBIT 202 199 965 1,060 Margin, % 6.6 6.4 9.4 9.7 ― Organic order
Slide 9: Kanthal
Alleima Third quarter 2024 9 SEK M Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023 Kanthal Order intake, R12 3,986 4,619 - - Organic growth, R12 ,% -8 4 - - Revenues 1,049 1,153 3,201 3,527 Organic growth, % -3 13 -2 13 Continued mixed market demand Adj. EBIT 174 214 569 637 Margin, % 16.6 18.6 17.8 18.1 ― Or
Slide 10: Strip
Alleima Third quarter 2024 10 SEK M Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023 Strip Order intake, R12 1,428 1,342 - - Organic growth, R12 ,% 11 -25 - - Revenues 372 334 1,083 1,187 Organic growth, % 16 -3 -5 0 Stabilized market conditions Adj. EBIT -7 -4 42 80 Margin, % -1.9 -1.3 3.9 6.7 ― Organic order
Slide 11: Company presentation
Alleima 11 Company presentation
Slide 12: A world-leading advanced materials company
Alleima 12 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 13: Premium offering across three divisions
Alleima 13 Premium offering across three divisions Tube Q3 2024, R12 Kanthal Q3 2024, R12 Strip Q3 2024, R12 Seamless tubes and other long products in advanced stainless steels used in 13.9bn Revenues (SEK) Resistance wire for heating elements (consumer and industrial heating) as well 4.3bn Revenues
Slide 14: Fully integrated value chain with world-class capabilities
Alleima 14 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 15: Global production footprint and go-to-market strategy
Alleima 15 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 16: Focused strategy execution for profitable growth
Alleima 16 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 17: A growth strategy built to capitalize on global megatrends
Alleima 17 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 18: Our markets are expected to grow at 7% CAGR until 2027
Alleima 18 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 19: Prioritized segments in focus for capital allocation
Alleima 19 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 Heating Petrochemical Alleima
Slide 20: Improved product mix with higher revenues from targeted segments
Alleima 20 …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 business ― Increased share of re
Slide 21: Financial background – focus on resilience
Alleima 21 Financial background – focus on resilience Organic growth % Order intake Revenues 19% 8% -6% 13% SEK M 26% SEK M -9% -3% -26% 22 130 21 684 20 669 19 646 18 405 19 635 16 851 15 681 15 654 13 925 13 847 12 230 2019 2020 2021 2022 2023 Q3 2024 R12 2019 2020 2021 2022 2023 Q3 2024 R12 Adj.
Slide 22: Performance vs. financial targets
Alleima 22 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) or above growth in 9
Slide 23: Nature of the business – metal price effect
Alleima 23 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 24: Winning platform set to unlock shareholder value
Alleima 24 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 25: Thank you
Alleima 25 Thank you alleima.com