Slide 1: Q3 report Jan-Sep 2023
Q3 report Jan-Sep 2023 JONAS GUSTAVSSON, PRESIDENT & CEO BO SANDSTRÖM, CFO OCTOBER 27, 2023
Slide 2: Continued growth in a challenging quarter
Continued growth in a challenging quarter 6,059 Net sales, SEK million — Mixed market; with strong underlying demand in the energy sector — Strong growth and solid order stock, however sequentially lower growth 14.3 Total growth, % — Result impacted by negative calendar effect and volatility in cert
Slide 3: Market update
Market update INDUSTRIAL SECTOR — Mixed market with strong or solid demand in defence and automotive, while longer decision making and postponed project in some segments, e.g pulp & paper CAPEX investments ENERGY SECTOR — Strong demand driven by green capex industry investments INFRASTRUCTURE SECTOR
Slide 4: Development by division
Development by division Infrastructure Process Industries AFRY X* 8.9% adj. organic growth 8.4% adj. organic growth 2.4% adj. organic growth 3.0% EBITA margin 9.5% EBITA margin -3.7% EBITA margin 35% 21% 4% *Dismantled as of Oct 1 Industrial & Digital Solutions Energy Management Consulting 6.1% adj.
Slide 5: Tram project, wind power project, Future Mill
Tram project Wind power project Future Mill Metsä Tissue in Tammerfors, Finland in the Baltics in Mariestad, Sweden
Slide 6: Changes in Group Executive Management
Changes in Group Executive Management Robert Larsson, Head of Division Infrastructure Experienced leader with more than 25 years of deep knowledge from industrial companies Martin Öman, Head of Division Industrial & Digital Solutions Customer focused leader with more than 20 years of experience in g
Slide 7: Extended improvement program in Infrastructure and restructuring of AFRY X
Extended improvement program in Infrastructure and restructuring of AFRY X INFRASTRUCTURE — Structural and capacity adjustments with a planned reduction of approximately 300 full-time positions, whereof 150 positions in Sweden and Finland in Q4 and 150 positions during H1 2024 — Estimated restructur
Slide 8: Net sales development
Net sales development Q3 2023 NET SALES, SEK MILLION SEK 6,059 million 7,500 28,000 Net sales 7,000 26,000 6,500 6,000 24,000 22,000 14.3% 8.9% Total growth Adjusted 5,500 20,000 organic growth 5,000 18,000 4,500 16,000 — Continued strong organic growth, supported by sustained level of price increas
Slide 9: Strong growth remains but fading sequentially
Strong growth remains but fading sequentially ADJUSTED ORGANIC GROWTH, % 15.9 — Growth rates clearly coming down 11.3 from peak levels in Q1 2023 10.8 10.4 8.9 — First quarter since Q2 2022 with lower than 10% adjusted organic growth 7.5 — Similar pattern on order stock development 3.3 Q1 22 Q2 22 Q
Slide 10: EBITA development
EBITA development Q3 2023 EBITA, SEK MILLION 700 2,300 SEK 326 million 5.4% 600 2,100 EBITA EBITA margin 1,900 500 1,700 400 1,500 — EBITA margin development mainly impacted by a 300 1,300 negative calendar effect and a lower utilisation 200 rate 1,100 100 — Restructuring of AFRY X in Q3, 16 MSEK ac
Slide 11: Development by division
Development by division ADJUSTED ORGANIC GROWTH, % EBITA MARGIN, % 19.1 13.9 12.0 13.4 13.4 9.5 9.2 9.1 9.5 9.4 7.9 8.0 8.9 8.5 8.4 8.8 6.2 6.1 6.0 5.5 3.0 2.4 AFRY X Infrastructure Industrial & Process Energy AFRY X Management Infrastructure Industrial & Process Energy Management Digital Industries
Slide 12: Cash flow and financial position
Cash flow and financial position OPERATING CASH FLOW, SEK MILLION NET DEBT (EXCL IFRS16), SEK MILLION LIQUID ASSETS & CREDIT LINES, SEK MILLION 504 4,144 4,218 4,138 5,708 5,611 3,833 3,668 4,979 4,941 401 4,646 278 88 54 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 202
Slide 13: Financial targets
Financial targets 10% 10% 2.5x TOTA L G R O W T H 1 E B I TA M A R G I N 2 N E T D E BT / E B I T D A 3, E O Y 2.7x 2.5x 18 17 2.0x 8.6 8.5 1.7x 8.0 7.6 6 -4 2020 2021 2022 Q3 2023 2020 2021 2022 Q3 2023 2020 2021 2022 Q3 2023 R12 R12 — Sustained R12 level in Q3, — R12 EBITA margin pressured — Seque
Slide 14: Focus going forward
Focus going forward 1 2 3 Execution of extended Build on our strong Develop further resilience improvement program in position in the industry and flexibility in a mixed Infrastructure and energy sectors market
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