Slide 1: First Quarter 2023
FIRST QUARTER 2023 Krister Blomgren, CEO and Jens Blom, CFO 28 April 2023
Slide 2: engcon – Global Market Leader in Tiltrotators
ENGCON – GLOBAL MARKET LEADER IN TILTROTATORS Sweden (Strömsund) Poland (Niepruszewo) Net sales split per region Q1 2023 Asia-Oceania Americas 7% Nordics 1990 16 10% 49% engcon founded Markets Europe 34% 400+ 1.9 Bn Employees Net sales in 2022 Q1 2023 2
Slide 3: Q1 Business Highlights
Q1 BUSINESS HIGHLIGHTS • Record net sales with strong contribution from all regions and record high profitability. • Improved production capacity with a strong orderbook provided favorable conditions for high net sales. • Full effect from price increases and stabilized material costs resulted in str
Slide 4: Q1 Figures in Brief
Q1 FIGURES IN BRIEF Record high net sales and profitability 48% -33% 46% 29% 63% Organic net Organic order Gross Text EBIT ReturnText on capital sales growth intake margin margin employed Q1 2023 4
Slide 5: Business and Financial Development
BUSINESS AND FINANCIAL DEVELOPMENT Q1 2023 5
Slide 6: Record High Net Sales in Q1
RECORD HIGH NET SALES IN Q1 Order intake and net sales development per quarter, MSEK Key comments Order intake Net sales • Net sales increased 55%, organic 48%, currency effect of 30 MSEK. 774 • Order intake decreased -30%, 691 organic -33%, currency effect of 17 MSEK. 582 553 519 534 541 • Record h
Slide 7: Strong Net Sales Growth in All Regions
STRONG NET SALES GROWTH IN ALL REGIONS Organic order intake and net sales per geographic region, MSEK Nordics Europe Americas Asia-Oceania Chungcheongnam-do Mature Early Early Early market days days days Strömsund Tewkesbury Veenendaal Vasa Wertheim Paris Montréal Connecticut Odense Sydney 324 223 3
Slide 8: Strong EBIT from Record Net Sales
STRONG EBIT FROM RECORD NET SALES EBIT and EBIT margin per quarter Key comments EBIT, MSEK EBIT margin, % • Record high EBIT, improved by 118% to 198 (91) MSEK. +118% • EBIT margin of 28.7% (20.4%). 198 • Record high results driven by high net sales and price increases combined with less disruptions
Slide 9: Overview of Costs and EBIT
OVERVIEW OF COSTS AND EBIT Key comments 2023 2022 2023 2022 MSEK Q1 Q1 R12 FY Net sales 691 447 2,182 1,938 COGS -376 -267 -1,214 -1,105 • Stable Strong gross gross margin margin of 45.6% (40.3%) and 44.4% in R12. Gross margin 45.6% 40.3% 44.4% 43.0% • Price increases in January and Selling expenses
Slide 10: Stable Cash Flow
STABLE CASH FLOW Cash flow and net working capital overview, MSEK Operating cash flow per quarter, MSEK 2023 2022 FY 92 MSEK Q1 Q1 2022 Cash flow before changes in working 107 82 449 63 capital 56 53 45 Inventories 437 367 443 36 Accounts recievables 523 319 347 5 5 Other receivables 17 20 29 2021 2
Slide 11: Record High ROCE Level
RECORD HIGH ROCE LEVEL Return on capital employed overview Average capital employed and ROCE MSEK 2019 2020 2021 2022 2023 Q1 Average capital employed, MSEK ROCE, % EBT 192 218 341 415 191 1000 100,0 Interest expense 3 2 2 8 7 900 858 Capital employed, 80,0 800 750 beginning 484 543 699 735 765 717
Slide 12: Performance Exceeding Financial Targets
PERFORMANCE EXCEEDING 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
Slide 13: Summary and Outlook
SUMMARY AND OUTLOOK • Strong orderbook, high margins and shorter lead times enabled record high net sales and profitability. Ska bytas mot Bauma-bild! • Less guidance from orderbook for coming quarters and higher dependence on order intake. • Future order intake partly dependent on development of co
Slide 14: Sustainability Focus Driven by Innovation
SUSTAINABILITY FOCUS DRIVEN BY INNOVATION Environmental and safety benefits Continuous product development ~25% efficiency gains Excavator ~2.2 number of tools or machines safety that can be replaced ~6,000 litres fuel saved per year ~113,000 kg CO 2 saved over excavator lifetime (7 years) Environme
Slide 15: engcon
engcon 415
Slide 16: For more information visit www.engcongroup.com
For more information visit www.engcongroup.com