Slide 1: Second Quarter Earnings Presentation
SECOND QUARTER Earnings Presentation 14 July 2023
Slide 2: Continued strong profit growth and cash flow
Continued strong profit growth and cash flow ○ Stable sales volume of 120 ktonnes (122), despite challenging market environment ○ Good earnings and reduced working capital drove strong cash flow ○ Price, productivity and new business offset cost/mix and demand challenges ○ Good progress on Navigate
Slide 3: Strong automotive sales, but other markets down due to weaker demand and downstream inventory
Strong automotive sales, but other markets down due to weaker demand and downstream inventory Q2 2023 sales volume growth by business area and end-customer market Gränges Americas Gränges Eurasia Gränges Group HVAC -15% Automotive +14% Automotive +13% Speciality Other packaging -11% niches +1% HVAC
Slide 4: Continued good sustainability performance
Continued good sustainability performance ○ Record high recycling volume and share Carbon emissions intensity 12 driven by new recycling centre in 2017: 11.4 8.0 8.5 Americas and by new partnerships tCO2e/tonne 8 4 Scope 1+2 ○ Scope 3 and total emissions negatively 0 Scope 3 affected by conscious de
Slide 5: Price, cost and productivity now back in balance after two turbulent years
Price, cost and productivity now back in balance after two turbulent years Price and Net Cost Productivity impact 0% − + 0 2021 H2 − Δ vs starting operating profit1 2022 0 2023 H1 + -180% 1. Starting adjusted operating profit R12 June 2021, SEK 1,048 million 5
Slide 6: High ambitions for the long term
High ambitions for the long term Sustainable Growth o World’s best aluminium 3 Invest technology company 2 Build o 15% ROCE 1 Restore o 10% operating profit growth o Continue toward 2040 climate neutrality 14 22 30 6
Slide 7: Three steps for long term sustainable growth
Three steps for long term sustainable growth 1 Restore 2 Build 3 Invest Strong value creation World’s best aluminium in sustainable growth technology company Recycling Optimization Finalize Utilize New Markets M&A&P Optimize 7
Slide 8: Continued margin improvement in the second quarter
Continued margin improvement in the second quarter Sales volume and Adjusted operating profit per tonne 120 5.2 6.0 4.5 Adjusted operating profit per tonne (kSEK) 3.8 100 3.3 3.7 4.0 2.8 Sales volume (ktonnes) 2.8 80 2.6 2.0 2.6 60 0.0 40 -2.0 20 -4.0 64 66 63 62 58 58 60 66 57 70 0 -6.0 Q2 Q3 Q4 Q1
Slide 9: Financial overview – second quarter 2023
Financial overview – second quarter 2023 SEK million Q2 January-June 2023 2022 Change 2023 2022 Change Sales volume (ktonnes) 120.5 122.5 –1.7% 240.6 249.2 –3.5% Net sales 6,008 6,875 –13% 11,976 12,955 –7.6% Adjusted operating profit1 450 348 30% 851 678 25% Adjusted operating profit per tonne (kSE
Slide 10: Stable net debt and leverage in the second quarter
Stable net debt and leverage in the second quarter Change in financial net debt -2 000 1.8x Adjusted cash flow before financing 1.8x SEK 779 million -2 500 -3 000 SEK million 176 -53 -145 -266 -3 500 655 -337 -4 000 -3 897 -3 867 -4 500 Financial Adjusted Other operating Maintenance Expansion Divide
Slide 11: Gränges Americas – second quarter 2023
Gränges Americas – second quarter 2023 Sales volume ○ Lower demand in all end-customer 80 -11% markets except Automotive partially offset 60 by new business ktonnes 40 20 ○ Improved operating profit and margin 64 63 58 60 57 0 – Improved price and productivity Q2 Q3 Q4 Q1 Q2 – FX effects of SEK 21 m
Slide 12: Gränges Eurasia – second quarter 2023
Gränges Eurasia – second quarter 2023 Sales volume1 ○ Strong year-on-year recovery in Asia 80 +6% – Covid lockdown in 2022 60 ktonnes – Sales volume increased by 29% 40 20 ○ Continued weak demand in Europe 66 62 58 66 70 0 – High downstream inventory Q2 Q3 Q4 Q1 Q2 – Sales volume decreased by -4% Ad
Slide 13: Outlook – third quarter 2023
Outlook – third quarter 2023 ○ Market uncertainty remains high in all regions – Stable demand in Automotive – Soft demand in other markets ○ Sales volume expected to decline year-on- year by a mid-to-high single-digit percentage ○ Timing effects from surcharge clauses in customer contracts in second
Slide 14: Summary
Summary 14
Slide 15: Q&A
Q&A Jörgen Rosengren, CEO Oskar Hellström, CFO
Slide 16: Slide 16