Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Q2 2023 Earnings Presentation
26 slides from Alimak Group Ab's earnings presentation, Jul 20, 2023
Slide 1: Alimak Group Q2 2023
Alimak Group Q2 2023, 20 July 2023 Ole Kristian Jødahl, CEO Sylvain Grange, CFO
Slide 2: Alimak Group – a diversified global industrial company
Alimak Group – a diversified global industrial company Highlights Drivers for success ▪ Leading provider of premium vertical access and working at height solutions Supported by global trends ▪ 3,000 employees, sales in +120 countries, presence in 28 countries ▪ Decentralised organisation with 5 cust
Slide 3: New Heights programme – our strategic roadmap
New Heights programme – our strategic roadmap 1 2 3 Establish the base Secure margin improvements Profitable growth 2020 2021 2022-2025 3
Slide 4: Financial targets and dividend policy
Financial targets and dividend policy Market growth, product development, cross- Revenue growth selling, and continued M&A 6-10% Continued operational efficiency, Tractel EBITA margin synergies, and Facade Access improvements >18% Strong focus on working capital improvements Leverage ratio and limit
Slide 5: Continuing our profitable growth journey Q2
Business update – Q1 FOR INTERNAL USE ONLY Continuing our profitable growth journey Q2 Q2 ▪ Adjusted EBITA-margin of 16.5% ‒ Aggregated EBITA increased by 6%* ▪ Revenue increased by 65% ▪ Order intake equal to revenue in absolute value ▪ Very strong performance in the Wind, Industrial and Height Saf
Slide 6: Group quarterly summary Q2
Group quarterly summary Q2 Order intake & Revenue by Quarters ▪ Order intake was MSEK 1,782, +43% (+53% from acquisitions. -15% MSEK organically) 2 200 – Organic decrease mainly due to a 2 000 1 870 1 782 1 800 high comparable 1 600 1 249 1 396 1 400 – Strong organic growth in 1 200 1 086 1 000 Indu
Slide 7: Facade Access Q2
Facade Access Q2 ▪ Order intake was MSEK 433, +4% (+56% Order intake & Revenue by Quarters Order intake & Revenue by R12M from acquisitions. -55% organically) MSEK – Service continues to contribute MSEK 2 000 550 positively 500 493 1 800 1 617 1 635 – Comparing to a strong Q2 last year, 433 1 600 1
Slide 8: Facade Access – business update
Facade Access – business update ▪ Management team fully in place ▪ New contracting policy being adopted throughout the division ▪ New tendering process to secure the right margin levels ▪ Strict project reviews ▪ Strengthened market position via combined offering, Tractel and Alimak 8
Slide 9: Facade Access – new projects
Facade Access – new projects ▪ Stadium – Spain ‒ The first large scale collaborative project between Tirak hoists and Facade Access in Spain with large permanent access projects ‒ A new solution has been developed specifically to serve the customer ▪ Shaft access – Austria ‒ Major railway infrastruc
Slide 10: Construction Q2
Construction Q2 ▪ Order intake was MSEK 476, +34% Order intake & Revenue by Quarters Order intake & Revenue by R12M (+33% from acquisitions. -4% MSEK organically) MSEK 494 1 735 476 1 800 469 – Strong used, rental and service 1 613 480 1 600 1 466 400 354 order intake 320 297 1 400 1 228 1 178 240 ▪
Slide 11: Construction – business update
Construction – business update ▪ Significant order from the Middle East for construction hoists ▪ Multiple major rental orders received in Germany ▪ Higher interest rates and material pricing affects development in certain geographies (Nordics) ▪ Investment in the infrastructure and energy- and util
Slide 12: Construction – new product launch
Construction – new product launch ▪ The all-new Alimak Medius 350 with robust design, based on the TPL platform and triangle 350 mast ‒ Compact base and ground enclosure, easily transported on a conventional truck, improving logistics ‒ Adaptable to lift shafts, has a quick and easy installation, a
Slide 13: Height Safety and Productivity Solutions Q2
Height Safety and Productivity Solutions Q2 Order intake & Revenue by Quarters Order intake & Revenue by R12M ▪ Order intake was MSEK 350 MSEK – Remaining on a high level MSEK 1000 811 500 800 ▪ Revenue was MSEK 373 400 350 350 600 461 – Strong sales in the 300 400 200 Americas and Germany 100 111 2
Slide 14: Height Safety and Productivity Solutions – business update
Height Safety and Productivity Solutions – business update ▪ Synergies with Facade Access starting to materialize ‒ Work in progress also with other divisions ▪ Working close with customers in different segments to develop the products and solutions they need ‒ A good example: European distributor s
Slide 15: Industrial Q2
Industrial Q2 ▪ Order intake was MSEK 373, +12% (+8% Order intake & Revenue by Quarters Order intake & Revenue by R12M organically) – Solid order intake during the quarter, especially within aftersales – Healthy equipment order intake, especially in the cement, marine, power, and bridges segments ▪
Slide 16: Industrial – business update Q2
Industrial – business update Q2 ▪ Large refurbishment order in Spain – Iconic telecommunication tower (288m) – 2 operating Alimak elevators (one panoramic and one for service) since 30+ years ▪ Good quarter in APAC in terms of order intake – Alimak SL lifts for cross ocean highway in China – The bri
Slide 17: Wind Q2
Wind Q2 ▪ Order intake was MSEK 187, +28% (+21% Order intake & Revenue by Quarters Order intake & Revenue by R12M organically) MSEK – Continued strong orders in the US MSEK 800 220 208 – Positive development in China 200 187 700 593 635 600 549 180 525 514 – European markets improving 160 146 500 14
Slide 18: Wind – business update Q2
Wind – business update Q2 ▪ EU signed off the new Renewable Energy Directive ‒ Will speed up the 80 GW projects in the pipeline ▪ Wind division remains in close cooperation with key customers for development of on and offshore products ‒ Securing regional volume needs ‒ Achieving wind sector ESG tar
Slide 19: Financial summary Q2
Financial summary Q2 YTD YTD MSEK Q2 2023 Q2 2022 D% 2023 2022 D% Order intake 1 782 1 249 43 3 652 2 302 59 Organic order growth -15 -6 Revenue 1 784 1 078 65 3 529 2 014 75 Organic revenue growth 1 6 EBITA adj 295 141 107 584 248 135 EBITA adj % 16.5 13.1 +3.4 pp 16.5 12.3 +4.2 pp EBITA 288 141 10
Slide 20: Earnings summary Q2
Earnings summary Q2 ▪ EBITA adj. – Margin improved vs. last year, mainly due to increased revenues, MSEK Q2 2023 Q2 2022 DMSEK operational improvements and EBITA adj 295 141 154 contribution from the Tractel Items affecting acquisition comparability -6 - -6 – Gross margin kept on a high level EBITA
Slide 21: Result for the period and EPS Q2
Result for the period and EPS Q2 ▪ Result for the period was MSEK 130 (98) Result for the period and EPS ▪ Adjusted for items affecting comparability MSEK SEK (IAC): MSEK 136 (98), +38% 1,81 140 1,72 2,00 ▪ Earnings per share was SEK 1.21 (1.38), 120 1,38 1,80 1,60 decrease due to increased number o
Slide 22: Cash flow Q2
Cash flow Q2 ▪ Cash flow from operations MSEK 206 (37) Operating cash flow, MSEK by quarter MSEK – Overall strong due to cash focus 350 – Impact of higher interest and tax 300 293 outflows 250 206 200 150 134 108 100 37 50 0 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 22
Slide 23: Net debt Q2
Net debt Q2 ▪ Net debt – Impacted negatively by dividend Net debt, MSEK and leverage, by quarter payment and fx revaluation of euro MSEK loan 7 000 10 8,00 ▪ Leverage down to 3.36 in Q2, 2.97 when 6 000 8 5 000 factoring R12 months of Tractel EBITDA 4 000 3,72 3,36 6 4 ▪ Capital allocation prioritie
Slide 24: Balance Sheet Q2
Balance Sheet Q2 Balance Sheet ▪ Balance Sheet impacted by Amounts in MSEK Q2 2023 Q2 2022 Goodwill 6 195 2 486 acquisitions Other intangible assets 2 810 575 – Goodwill and other intangible Tangible assets 970 529 Financial and other non-current assets 462 323 assets Total non-current assets 10 437
Slide 25: Summary Q2
Summary Q2 ▪ Continuing our profitable growth journey ▪ Strong performance in the Industrial, Wind and Height Safety and Productivity Solutions divisions ▪ Higher interest rates have started to impact parts of our business ‒ Our well diversified business, good cost control and active pricing managem
Slide 26: Q&A
Q&A