Slide 1: Interim report fourth quarter 2023
Interim report fourth quarter 2023
Slide 2: Summary Q4
Summary Q4 Stable fourth quarter – Strong growth in aerospace, positive development in auto and stable in general engineering. Mining demand on high levels, while infrastructure challenging – Total order intake declined by 2%. At fixed exchange rates, orders declined by 2% and organically by 4% – To
Slide 3: Staying ahead through innovation: AutoMine for underground drills
Staying ahead through innovation: AutoMine® for underground drills First OEM to offer a unified traffic management system for drills, loaders and trucks, setting a new standard for underground mining efficiency. – Tele-remote system that enables an operator to remotely control and simultaneously sup
Slide 4: YoY market development
Interim report for the fourth quarter 2023 YoY market development % of revenue 2023 Mining Engineering Automotive Energy Infrastructure Aerospace Other 51% 20% 7% 1% 10% 4% 8% Percent of revenue Order intake 2023 Y/Y Q4 23 Europe 27% 0% North America 25% -9% Asia 17% 6% Africa and Middle East 12% -2
Slide 5: Order intake and revenues
Interim report for the fourth quarter 2023 Order intake and revenues MSEK 35,000 130,000 Order intake Reported (MSEK) 120,000 30,062 30,000 110,000 25,000 100,000 90,000 Revenues 20,000 Reported (MSEK) 80,000 15,000 10,000 70,000 60,000 31,816 20,000 Book-to-bill 5,000 94% 10,000 0 0 Q1 Q2 Q3 Q4 Q1
Slide 6: Growth in order intake and revenues
Interim report for the fourth quarter 2023 Growth in order intake and revenues Order intake Revenue MSEK MSEK 50% 160,000 50% 160,000 40% 140,000 40% 140,000 30% 120,000 30% 120,000 20% 100,000 20% 100,000 10% 80,000 10% 80,000 0% 60,000 0% 60,000 -10% 20,000 -10% 20,000 -20% 0 -20% 0 -30% -20,000 -
Slide 7: Adjusted EBITA development
Interim report for the fourth quarter 2023 Adjusted EBITA development MSEK -3% 7,000 24% Adj. EBITA margin: 19.5% 6,000 20% 5,000 16% 4,000 12% – Adj. EBITA SEK 6,211 M (6,413) 3,000 – Resilient level despite lower volumes and a 8% 2,000 diluting impact from currency of 110 basis points 4% 1,000 – R
Slide 8: Mining and Rock Solutions
Interim report for the fourth quarter 2023 Order intake and revenues 52% share of Mining and Rock revenues 2023 MSEK Solutions 20,000 150% 16,000 100% 12,000 Order intake 8,000 – Stable demand in mining and positive momentum for automation 50% solutions. All-time high surface order of SEK 248 millio
Slide 9: Rock Processing Solutions
Interim report for the fourth quarter 2023 Order intake and revenues 9% share of Rock Processing revenues 2023 MSEK Solutions 4,000 150% 3,000 100% Order intake 2,000 – Stable demand in mining while infrastructure continued to be weak 50% 1,000 – Total order intake, and order intake at fixed exchang
Slide 10: Manufacturing and Machining Solutions
Interim report for the fourth quarter 2023 Order intake and revenues 39% share of Manufacturing and Machining revenues 2023 MSEK Solutions 16,000 150% 12,000 100% Order intake 8,000 – Strong demand in aerospace and positive development in 50% 4,000 automotive, while general engineering was stable –
Slide 11: Cecilia Felton, CFO
Cecilia Felton CFO 11
Slide 12: Financial summary
Interim report for the fourth quarter 2023 Financial summary MSEK Q4 2022 Q4 2023 Growth OI REV Order intake 30,751 30,062 Organic -4% 1% Structure 1% 1% Revenues 31,094 31,816 Org + structure -2% 2% Adjusted EBITA 6,413 6,211 Currency 0% 0% Adjusted EBITA margin 20.6% 19.5% Total -2% 2% Net financi
Slide 13: Bridge analysis
Interim report for the fourth quarter 2023 Bridge analysis Q4 Q4 MSEK 2022 Organic Currency* Structure 2023 Revenues 31,094 286 102 334 31,816 Adjusted EBITA 6,413 59 -323 62 6,211 Adjusted EBITA margin 20.6% 21% 19.5% Accretion/dilution 0.0% -1.1% 0.0% *Currency effect net of structure component 13
Slide 14: Good progress in realizing savings from 2022 restructuring program
Interim report for the fourth quarter 2023 Good progress in realizing savings from 2022 restructuring program SMM SMR SRP Common TOTAL ESTIMATED RUN-RATE SAVINGS ~785 540 100 140 5 MSEK REALIZED SAVINGS Q4 2023 94 62 10 22 - MSEK REALIZED ANNUALIZED RUN-RATE (END Q4) 48% 14
Slide 15: New 2024 restructuring program expected to generate additional run-rate savings of SEK 1.2 Bn
Interim report for the fourth quarter 2023 New 2024 restructuring program expected to generate additional run-rate savings of SEK 1.2 Bn SMM SMR SRP One-off costs 2.4 1.4 0.5 0.5 BSEK, TO BE BOOKED IN Q1 2024 Total estimated run-rate savings 1.2 0.7 0.4 0.1 BSEK Indicated FTE reduction 1,100 15
Slide 16: Net financials
Interim report for the fourth quarter 2023 Net financials MSEK Q4 2022 Q4 2023 Interest net -416 -468 Pension -21 -29 Bank charges -17 -23 Other financial income and cost -94 -10 Leases IFRS16 -54 -66 FX and other asset classes 213 -34 Total -390 -630 Total yield cost 3.2% 4.8% 16
Slide 17: Tax rate
Interim report for the fourth quarter 2023 Tax rate Q4 2022 Q4 2023 Reported 28.0% 19.6% Full year tax rate 23.4%, in line Excluding IAC 27.7% 20.8% with guidance for 2023: 23-25% Normalized 25.4% 21.7% 17
Slide 18: Net working capital
Interim report for the fourth quarter 2023 Net working capital Net working capital Per BA, % of revenues MSEK 40,000 40% 40% 35,000 35% 35% 30,000 30% 30% 25,000 20,000 25% 25% 15,000 20% 20% 10,000 15% 5,000 0 0% 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
Slide 19: Free operating cash flow
Interim report for the fourth quarter 2023 Free operating cash flow MSEK 7,000 140% MSEK Q4 2022 Q4 2023 6,000 120% EBITDA 6,603 7,249 5,000 100% Non-cash items 893 -1,089 4,000 80% NWC change 376 1,039 3,000 60% CAPEX -1,647 -1,735 2,000 40% FOCF 6,226 5,463 1,000 20% 0 0% -1,000 -20% Q1 Q2 Q3 Q4 Q
Slide 20: Net debt
Interim report for the fourth quarter 2023 Net debt SEK Bn RATIO 60 1.5 50 1.2 40 0.9 – Financial net debt / R12 EBITDA 1.2 30 0.6 – Financial net debt SEK 35.2 billion 20 0.3 – Net debt SEK 43.5 billion 10 0.0 0 -0.3 -10 -0.6 -20 -0.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019
Slide 21: Outcome versus guidance
Interim report for the fourth quarter 2023 Outcome versus guidance Outcome Q4 Guidance Q4 Underlying currency YoY effect (MSEK) -323 -150 Outcome FY23 Guidance FY23 Capex (BSEK) 5.4 4.5-5.0 Interest net (BSEK) -1.6 -1.6 Normalized tax rate (%) 23.4% 23-25% 21
Slide 22: Guidance Q1 and FY 2024
Interim report for the fourth quarter 2023 Guidance Q1 and FY 2024 CAPEX (Cash) Estimated to approximately SEK 5.0 B for 2024 Currency effects Given currency rates at end of December 2023 the effect on operating profit from transaction and translation would be SEK -360 M for Q1 2024 Interest net Und
Slide 23: Conclusion
Conclusion A successful 2023 – Full year revenues, at fixed exchange rates, grew by 9% year on year of which organic 6% – Record results of SEK 25.2 billion, adjusted EBITA margin of 20%, within our target range – Strong cash conversion of 80%, and financial net debt/EBITDA at 1.2 within our target
Slide 24: Q&A
Q&A 24
Slide 25: Backup slides
Backup slides 25
Slide 26: Adjusted EBITA bridge, per BA
Interim report for the fourth quarter 2023 Adjusted EBITA bridge, per BA Q4 Q4 MSEK 2022 Organic Currency Structure 2023 Mining & Rock Solutions Revenues 16,156 757 -70 53 16,894 Adjusted EBITA 3,557 232 -332 16 3,472 Adjusted EBITA margin 22.0% 31% 20.6% Rock Processing Solutions Revenues 2,985 -40
Slide 27: Loan and duration profile
Interim report for the fourth quarter 2023 Loan and duration profile MSEK Amount Duration Bonds MTN 26,648 4.3 years Long term: Bank Loans 1,804 6.2 years 72% Commercial papers 7,174 0.1 years Short term: Bonds MTN 3,831 0.3 years Bank Loans 120 0.0 years 28% Total 39,578 3.2 years Committed Credit
Slide 28: Loan maturity profile
Interim report for the fourth quarter 2023 MSEK Loan maturity profile 12,000 Average interest rate: 10,000 ~3.8% 8,000 6,000 4,000 2,000 - 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 28
Slide 29: Disclaimer statement
Disclaimer statement Some statements herein are forward-looking, and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors for example, the effect of economic conditions, exchange-rate