Slide 1: First Quarter 2024
FIRST QUARTER 2024 26 April, 2024
Slide 2: Presenters
PRESENTERS CEO – Krister Blomgren CFO – Jens Blom Tel: +46 70 529 92 65 Tel: +46 76 147 45 77 E-mail: krister.blomgren@engcon.se E-mail: jens.blom@engcon.se Q1 2024 2
Slide 3: engcon – Change the World of Digging: 2023 in brief
ENGCON – CHANGE THE WORLD OF DIGGING 2023 in brief Strömsund, 1 898 - 6% Sweden Net sales MSEK Net sales growth* Niepruszewo, Poland 376 20% EBIT MSEK EBIT margin % 16 406 Markets Employees Net sales split per region Asia-Oceania 8% Americas 15% Nordics Europe 43% 34% * Organic net sales growth Q1 2
Slide 4: Q1 Business Highlights
Q1 BUSINESS HIGHLIGHTS • Continued stabilization of order intake. • Strong order intake increase in the European region. • Net sales increase from last quarter – trend break. • Profitability back on healthy levels. • Third generation tiltrotator system available for sale. • Patent application for se
Slide 5: Generation 3 – Smart, Smooth and Efficient
GENERATION 3 - SMART, SMOOTH AND EFFICIENT • Highrunner EC319 first out. • Self-learning configuration system optimizes tiltrotator installation. • Energy saving with a minimum of 30 per cent compared with our second generation. • Higher flow in third generation enables compatibility with more hydra
Slide 6: Q1 Figures in Brief
Q1 FIGURES IN BRIEF -43% 1% 42% 15% 28% Organic net Organic order Gross EBIT Return on capital sales intake margin margin employed Q1 2024 6
Slide 7: Stabilization and Trend Break
STABILIZATION AND TREND BREAK Order intake and net sales development per quarter, MSEK Key comments Order intake Net sales • Net sales decreased 43%, organic 43%, negative currency effect of 1 MSEK. 774 • Order intake increased 1%, 691 organic 1%, currency effect of 0 MSEK. 582 553 519 534 541 508 •
Slide 8: Nordics
NORDICS Q1 2024, Order intake and net sales, MSEK Key comments Per quarter • Net sales decreased 52%. 333 350 300 • Order intake decreased 19%. 250 212 192 200 150 156 159 143 • Mixed signals in the region. 128 131 150 113 100 50 0 Q1 - 23 Q2 - 23 Q3 - 23 Q4 -23 Q1 -24 • Our most cyclic region - out
Slide 9: Americas
AMERICAS Q1 2024, Order intake and net sales, MSEK Key comments Per quarter • Net sales decreased 44%. 100 91 80 76 81 • Order intake decreased 14%. 58 61 57 60 54 41 46 42 40 • Spring training with John Deere 20 dealers. 0 Q1 - 23 Q2 - 23 Q3 - 23 Q4 -23 Q1 -24 Order intake Net sales • Strengthened
Slide 10: Asia-Oceania
ASIA-OCEANIA Q1 2024, Order intake and net sales, MSEK Key comments Per quarter • Net sales decreased 23%. 60 50 48 37 38 40 37 • Order intake increased 33%. 40 30 27 28 28 30 Chungcheongnam-do 20 21 • Strong order intake increase 10 and positive trend. 0 Q1 - 23 Q2 - 23 Q3 - 23 Q4 -23 Q1 -24 Order
Slide 11: Europe
EUROPE Q1 2024, Order intake and net sales, MSEK Key comments Per quarter • Net sales decreased 33%. 250 234 200 168 177 168 156 • Order intake increased 27%. 150 132 134 129 132 125 100 • Increased willingness to invest. 50 0 Q1 - 23 Q2 - 23 Q3 - 23 Q4 -23 Q1 -24 • The tiltrotator is becoming a Ord
Slide 12: High Potential in the European Region
HIGH POTENTIAL IN THE EUROPEAN REGION Penetration per market Key comments • High growth expectation on the European region. • Mature sales organizations and management in place. • Increased awareness of the tiltrotator system. • Strategic partnership with ZD – Solution KG. Q1 2024 12
Slide 13: Financial Development
Se över grävmaskinsmärken! FINANCIAL DEVELOPMENT Q1 2024 13
Slide 14: EBIT Margin Back on Healthy Levels
EBIT MARGIN BACK ON HEALTHY LEVELS EBIT and EBIT margin per quarter Key comments EBIT, MSEK EBIT margin, % • EBIT decreased 70% to 60 -70% (198) MSEK. • EBIT margin of 15.2% (28.7%) 198 • EBIT margin is back on healthy levels. 121 99 104 104 91 77 55 60 25.0 28.7 19 20.8 20.4 18.5 22.4 20.5 14.2 15.
Slide 15: Overview of Costs and EBIT
OVERVIEW OF COSTS AND EBIT 2024 2023 2024 2023 MSEK Q1 Q1 R12 FY Key comments Net sales 394 691 1,601 1,898 • Stable gross margin COGS -228 -376 -948 -1.096 • EBIT margin of 15.2% (28.7%) Gross margin 42.1% 45.6% 40.8% 42.3% • and Price19.8% in FY23. increases in January and Selling expenses -64 -76
Slide 16: Cash Flow
CASH FLOW Cash flow and net working capital overview, MSEK Operating cash flow per quarter, MSEK 277 2024 2023 2023 MSEK Q1 Q1 FY Cash flow before changes in working 7 107 275 capital 108 96 Inventories 329 437 302 92 63 56 Accounts recievables 256 523 193 5 -44 Other receivables 44 17 27 2022 2022
Slide 17: Decreased ROCE Level
DECREASED ROCE LEVEL Return on capital employed overview Average capital employed and ROCE MSEK 2020 2021 2022 2023 Q1 2024 Average capital employed, MSEK ROCE, % EBT 218 341 415 365 235 1000 100 900 Interest expense 2 2 8 16 15 900 Capital employed, 773 80 800 750 beginning 543 699 735 765 950 717
Slide 18: Financial Targets
FINANCIAL TARGETS Growth Profitability Capital efficiency Capital structure Exceed the growth in existing Have an EBIT margin in Continue to achieve an Maintain a strong capital market through organic excess of 20 per cent, industry-leading capital structure supporting further growth. measured over
Slide 19: Summary and Outlook
SUMMARY AND OUTLOOK • Positive signs on many markets. • Net sales trend break and back on healthy level of Ska bytas mot Bauma-bild! profitability. • Strong performance in Europe. • INTERMAT in Paris 24 to 27 April. • Exhibition season starting with focus on third generation. • Further gradual growt
Slide 20: For more information visit www.engcongroup.com
For more information visit www.engcongroup.com