Alleima Ab · OMXSTO:ALLEI
Alleima Ab — Investor Day (August 2022)
90 slides from Alleima Ab's investor day presentation, Aug 23, 2022
Slide 1: Alleima Capital Markets Day 2022
Alleima Capital Markets Day 2022 August 23, 2022 Capital Markets Day
Slide 2: Welcome
Alleima Capital Markets Day 2022 2 Welcome Emelie Alm, Head of Investor Relations
Slide 3: Safety first
Alleima Capital Markets Day 2022 3 Safety first At Alleima our objective is zero harm to our people, Protective equipment Emergency number Psychological safety the environment we work in, our customers and our suppliers. First aid kit Emergency exit Alarm Assembly point Health & well-being
Slide 4: Agenda
Alleima Capital Markets Day 2022 4 Agenda 10.30 10.40 Welcome and safety Introduction to Alleima 11.20 Financial performance and targets 11.50 Q&A 12.00 Lunch break 12.45 Division Tube 13.15 Division Kanthal 13.40 Division Strip 14:00 Capturing the energy transition opportunity 14:25 Q&A 14:45 Concl
Slide 5: Today's venue – tube mill
Alleima Capital Markets Day 2022 5 Today’s venue – tube mill 98 ― Sandviken industrial area one of Sweden’s largest in terms of ground area ― Continuous footprint and cost optimization programs for a long-term cost effective set up ― Consolidated production units in Sandviken, tube mill 98 and 09, w
Slide 6: Introduction to Alleima
Alleima Capital Markets Day 2022 6 1 Introduction to Alleima A world-leading manufacturer of advanced stainless steels, special alloys and heating systems for the most demanding industries Göran Björkman, President and CEO
Slide 7: A world-leading advanced materials company
Alleima Capital Markets Day 2022 7 A world-leading advanced materials company Three divisions… Tube Kanthal Strip ― High value-added products in advanced stainless steels and special alloys as well as products for industrial heating …serving ten customer segments 3 ― Strong market positions across a
Slide 8: We advance the most demanding industries to support your everyday life
Alleima Capital Markets Day 2022 8 We advance the most demanding industries to support your everyday life… Industrial Chemical and Petrochemical Oil and Gas Industrial Heating Consumer ― Solid round bar and hollow bar ― Fertilizer tubing ― Umbilical tubing ― Metallic heating elements ― Razor blade s
Slide 9: …and have done so for the past 160+ years
Alleima Capital Markets Day 2022 9 …and have done so for the past 160+ years 1862 1888 1924 1997 2015 2019 2021 2022 Founded in Seamless Stainless Tubes Acquisition of Hyper-duplex Acquisition of Acquisition of Listed Sandviken Tubes The first seamless Kanthal The hyper-duplex Thermaltek Accuratech
Slide 10: Premium offering across three divisions
Alleima Capital Markets Day 2022 10 Premium offering across three divisions Tube SEK Kanthal SEK Strip SEK Seamless tubes and other long products in advanced stainless steels 9.5bn Revenues 2021 Resistance wire for heating elements (consumer and industrial heating) as 3.0bn Revenues 2021 Wide range
Slide 11: Fully integrated value chain with world-class capabilities
Alleima Capital Markets Day 2022 11 Fully integrated value chain with world-class capabilities Customer Need Identification Research & Primary Melting Hot Working Cold Working Finishing Sales & Development Marketing Ensure Enabling close Secure product Prerequisite for new independence and control c
Slide 12: Global production footprint and go-to-market strategy
Alleima Capital Markets Day 2022 12 Global production footprint and go-to-market strategy Sandviken, Sweden One of Sweden’s ― Tube mills largest industrial (Seamless tube sites in terms of and pipe, steam ground area with c. generator tubing, 3,000 people Zirconium tubing) working for Alleima ― Rock
Slide 13: Focused strategy execution for profitable growth
Alleima Capital Markets Day 2022 13 Focused strategy execution for profitable growth 1. 1 2.2 3.3 4.4 Profitable Growth Materials Innovator and Operational and Industry Leading Technology Leader Commercial Excellence Sustainability — Capitalize on the megatrends of — Focus R&D towards new business —
Slide 14: A growth strategy built to capitalize on global megatrends
Alleima Capital Markets Day 2022 14 1 2 3 4 A growth strategy built to capitalize on global megatrends… Changing demographics Increasing and changing Electrification of industry Growth in emerging energy demand and transportation markets — Global population growth — Global energy demand — Electrific
Slide 15: …driving growth across all customer segments
Alleima Capital Markets Day 2022 15 1 2 3 4 …driving growth across all customer segments Customer segments growth Serviceable addressable market (SAM) CAGR 2021-2026 * size and growth Chemical and Hydrogen and 5% Petrochemical Renewable Energy SEK B CAGR CAGR 4% CAGR 25% 132 126 120 109 114 Medical
Slide 16: Alleima to capture growth in existing business and new business creation
Alleima Capital Markets Day 2022 16 1 2 3 4 Alleima to capture growth in existing business as well as through new business creation and driving profitable growth by mix optimization ― Growth in existing business — A solid core with strong market positions — Potential to capture further market shares
Slide 17: Focused initiatives in targeted customer segments
Alleima Capital Markets Day 2022 17 1 2 3 4 Focused initiatives in targeted customer segments Chemical and Industrial Heating Medical Hydrogen and Petrochemical Renewable Energy 4% 6% 7% 25% % = Estimated market growth, CAGR 2021-2026 Growth in existing business Growth by new business creation Sourc
Slide 18: Rebound in Oil and Gas to underpin growth in near to mid-term
Alleima Capital Markets Day 2022 18 1 2 3 4 Rebound in Oil and Gas to underpin growth in near to mid-term Increasing oil and gas investments Renewable energy transition Stable market growth Capital expenditures in the oil and gas The demand for gas is expected to Alleima product mix is well suited t
Slide 19: Materials innovator and technology leader
Alleima Capital Markets Day 2022 19 1 2 3 4 How we win, Materials innovator and today and tomorrow technology leader Customer partnerships Relationship with academia ― R&D team focused on evolutionary refinements, expansion of existing portfolio as well as product innovation to capitalize on the Sha
Slide 20: Solid financial foundation established through successful initiatives
Alleima Capital Markets Day 2022 20 1 2 3 4 Solid financial foundation established through successful initiatives – resulting in stronger position and resilience Optimized footprint …improved price …and better control of …enabling successful program… management and NWC and more navigation and produc
Slide 21: Successful portfolio rationalization and established M&A track-record
Alleima Capital Markets Day 2022 21 1 2 3 4 Successful portfolio rationalization and established M&A track-record 2017 2018 2020 2022 Welding wire operations Custom electric Summerill tube corporation Gerling divested manufacturing 2018 2019 2021 Stainless wire business Thermaltek Accuratech diveste
Slide 22: Resilience proven through the Covid-19 pandemic
Alleima Capital Markets Day 2022 22 1 2 3 4 ORGANIC REVENUE GROWTH Resilience proven through the Covid-19 pandemic 4% -9% -3% 13% 2019 2020 2021 2022 H1 ― A product offering serving a diverse set of customer segments, ADJ. EBIT MARGIN exposed to different business cycles and market dynamics, helped
Slide 23: Sustainability frontrunner already today
Alleima Capital Markets Day 2022 23 Sustainability frontrunner already Circularity - high degree of recycled Share of female managers today… steel Thousand No. of tonnes % managers % Low greenhouse gas intensity (scope 1 and 2) compared to peers1) 100 83 1 000 25 Peers 800 20 75 82 1 200 600 15 50 8
Slide 24: …with ambitious goals for the future
Alleima Capital Markets Day 2022 24 …with ambitious goals for the future Sustainable product offering today Enabling and capitalizing on the transition to renewable energy Products already today addressing: The hydrogen society Green energy production Green hydrogen Our focus Climate and Health, saf
Slide 25: Alleima stronger as a separately listed company
Alleima Capital Markets Day 2022 25 25 Alleima stronger as a separately listed company Alleima today ― A world-leading manufacturer of advanced stainless steels, special alloys and heating systems for the most demanding industries ― Solid financial performance compared to its peers Alleima in the fu
Slide 26: Highly experienced management team and Board of Directors
Alleima Capital Markets Day 2022 26 Highly experienced management team and Board of Directors Göran Björkman President and Chief Andreas Nordbrandt Executive Officer Chairman Michael Andersson Olof Bengtsson Tom Eriksson Kerstin Konradsson Susanne Pahlén Åklundh President, Tube Division Chief Financ
Slide 27: Winning platform set to unlock shareholder value
Alleima Capital Markets Day 2022 27 Winning platform set to unlock shareholder value 1 Premium offering with solid market positions and diverse customer segment exposure 2 Fully integrated value chain with prominent metallurgy expertise and global footprint 3 Multiple and tangible levers to deliver
Slide 28: Financial performance and targets
Alleima Capital Markets Day 2022 28 2 Financial performance and targets Solid financial foundation Olof Bengtsson, CFO
Slide 29: Alleima today
Alleima Capital Markets Day 2022 29 Revenues by division Alleima today Strip 9% Kanthal 22% 13,847 SEK M 2021 Revenues Adj. EBIT margin 69% Tube 13,847 7.6% SEK M 2021 2021 Broad industry exposure and product offering through three divisions… Revenues by geography Other FOCF NET DEBT / EQUITY 4% Asi
Slide 30: Financial background – focus on resilience
Alleima Capital Markets Day 2022 30 Financial background – focus on resilience Organic growth % Order intake Revenues -26% 27% -9% -3% SEK M SEK M -27% 28% -11% -1% 20,210 15,654 16,108 16,851 13,925 13,847 15,681 12,230 2019 2020 2021 2022 Q2 LTM 2019 2020 2021 2022 Q2 LTM Adj. EBIT and margin % Fr
Slide 31: Operational initiatives and improvements have made earnings more resilient
Alleima Capital Markets Day 2022 31 Operational initiatives and improvements have made earnings more resilient Step Change & Value Creation program Exit of non-core business focusing on profitable growth Increased margin through cost savings Focus on stability and improving profitability Reduced NWC
Slide 32: Revenue growth – dissection of the top line
Alleima Capital Markets Day 2022 32 Revenue growth – dissection of the top line 1 Structural changes include divestments and acquisitions of the group, such as the Revenue growth (%) 2020 2021 2022 H1 acquisitions of Summerill Tube Corporation, Accuratech and Gerling GmbH in 2020, 2021 and 1 Structu
Slide 33: Robust profitability through actively managed cost base
Alleima Capital Markets Day 2022 33 Robust profitability through actively managed cost base ― Alloy surcharges can impact revenues considerably and also have a dilutive effect on adj. result levels 2022 Q2 SEK M 2019 2020 2021 LTM ― About half of the cost of goods sold relate to raw Revenues 15,654
Slide 34: The nature of the business – metal price effect (1/3)
Alleima Capital Markets Day 2022 34 The nature of the business – metal price effect (1/3) ― Raw material is metals in different alloy compositions SEK M 2,428 ― Main approaches for covering cost for metals when setting prices 15.1% 1,444 1,379 ― For large orders the metal price is fixed and 9.7% 10.
Slide 35: The nature of the business – metal price effect (2/3)
Alleima Capital Markets Day 2022 35 The nature of the business – metal price effect (2/3) ― For sales with an alloy surcharge clause there is a time lag between raw material cost in a product and setting the price to the customer SEK M 2,428 ― Raw material cost realized in COGS (when the revenue is
Slide 36: The nature of the business – metal price effect (3/3)
Alleima Capital Markets Day 2022 36 The nature of the business – metal price effect (3/3) Metal price trend and how it affects different measures ― Isolating the effect from metal price changes in the business where market price for metal has a direct impact on pricing ― At constant volumes, mix and
Slide 37: The nature of the business – seasonality
Alleima Capital Markets Day 2022 37 The nature of the business – seasonality ― The third quarter is typically weaker in Quarterly revenue as % of total annual1 Quarterly revenue and adj. EBIT margin1 terms of revenue and profitability in 35% % SEK M 20% comparison to the remainder of the year 6 000
Slide 38: Strong order intake across divisions and ongoing revenue pick-up
Alleima Capital Markets Day 2022 38 Strong order intake across divisions and ongoing revenue pick-up with stable margins Order intake by division Revenue by division Adj. EBIT by division Book-to-bill % 1 16,851 12,230 15,681 20,210 15,654 13,925 13,847 16,108 135% 1,513 1 162 1 253 1 529 1 656 1 27
Slide 39: Overall higher margin compared to peers
Alleima Capital Markets Day 2022 39 Overall higher margin compared to peers Reported EBIT margin 2019-211 30% Alleima avg. EBIT margin 7.6% Avg. peer EBIT margin 1.1% 10% -10% -30% -50% ATI Aperam Carpenter Haynes Jiuli Salzgitter Tenaris Tubacex Vallourec Voestalpine Alleima peers Average Source: C
Slide 40: Capital expenditures to increase from the temporary reduction during Covid-19
Alleima Capital Markets Day 2022 40 Capital expenditures to increase from the temporary reduction during Covid-19 ― Most investments in property and plant are related to machining equipment or plant refurbishment for core manufacturing activities SEK M and for production facilities 1,002 ― Temporary
Slide 41: Strong cash flow generation through implemented initiatives
Alleima Capital Markets Day 2022 41 Strong cash flow generation through implemented initiatives ― The operational excellence initiatives, including improved net working capital management, price management and product mix, have resulted in a SEK M strengthened earnings and cash-flow profile 3,188 ―
Slide 42: Solid financial position provides flexibility and a stable foundation
Alleima Capital Markets Day 2022 42 Solid financial position provides flexibility and a stable foundation ― Goodwill of SEK 1,422 million is mainly related to Kanthal (SEK M) 2021 June 30, 2022 ― Increase in inventory in H1 2022 from increased Goodwill 1,352 1,422 demand, higher raw material prices
Slide 43: Clear financial roadmap – Overview of financial targets
Alleima Capital Markets Day 2022 43 Clear financial roadmap – Overview of financial targets Target Description Deliver profitable organic revenue growth in line with or above growth in targeted end Organic growth markets over a business cycle Earnings Adjusted EBIT margin1 to average above 9% over a
Slide 44: Q&A
Alleima Capital Markets Day 2022 44 Q&A Göran Björkman, President & CEO Olof Bengtsson, CFO
Slide 45: Alleima Capital Markets Day 2022
Alleima Capital Markets Day 2022
Slide 46: Tube
Alleima Capital Markets Day 2022 46 3 Tube A world-leading producer of seamless tube, pipe and bar in advanced stainless steel and special alloys Michael Andersson, President Tube
Slide 47: Tube in brief
Alleima Capital Markets Day 2022 47 Tube in brief Key locations Sandviken, Sweden — Seamless tubes and other long products in advanced stainless Chomutov, Czech Republic steels Scranton, USA Zhenjiang, China — Used in Industrial, O&G, nuclear & other energy-related end- markets as well as chemicals,
Slide 48: Historical financial performance
Alleima Capital Markets Day 2022 48 Historical financial performance 2020 vs 2019 Order intake and revenues, SEK M ― Order intake and revenue decline in 2020 primarily related to broad market downturn -35.7% 29.6% and turmoil that followed the Covid-19 breakout. Adj. EBIT margin was somewhat -12.4%
Slide 49: Key Tube product and customer segment overview
Alleima Capital Markets Day 2022 49 Key Tube product and customer segment overview Customer segment Industrial 29% Chemical and 23% Oil and gas 20% Mining and 12% Power 10% petrochemical Construction generation Example Umbilical Rock Cladding Hollow Fertilizer products tubes drill tubes bar steel Hy
Slide 50: Overview of Tube growth focus areas
Alleima Capital Markets Day 2022 50 Overview of Tube growth focus areas A. B. C. D. E. Take position in Accelerate Expand Growth in Chemical Maintain leadership sustainable energy Medical growth Transportation and Petrochemical in Oil & Gas and portfolio Mining —Increase focus on —Develop both —Deve
Slide 51: Hydrogen and Renewable Energy
Alleima Capital Markets Day 2022 51 Hydrogen and Renewable Energy Hydrogen Solar power Biopower and biofuels Offshore wind power Geothermal energy Carbon capture and storage Pole position to capture hydrogen opportunity Polysilicon process for photovoltaic panels in solar power Raw mtrl. Poly silico
Slide 52: Chemical and Petrochemical
Alleima Capital Markets Day 2022 52 Chemical and Petrochemical Product portfolio expansion 2016 2017 2018 2019 2020 2021 2022 Sandvik 2RE69 Sanicro 28 Coil tubing Sanicro 42 Sanicro 35 Hydrogen tubing Sanicro 70 Sandvik 6R35 Sanicro 625 Sandvik 254SMO Sanicro 276 High pressure Sanicro 41 Sandvik 3R6
Slide 53: Oil and gas – maintaining leadership in a profitable segment
Alleima Capital Markets Day 2022 53 Oil and gas – maintaining leadership in a profitable segment Expanding capacity and capability in OCTG Developing the next generation umbilical tubes ― Expand capacity and capability, with new developments ― A growing subsea umbilical market, with a trend towards
Slide 54: Nuclear - Continued leadership in the Nuclear tubing industry
Alleima Capital Markets Day 2022 54 Ready to expand in Steam Generator Tubing Nuclear - Continued leadership in the Nuclear tubing industry Ready to leverage on a Nuclear renaissance ― Largest independent supplier of Steam Generator tubing with a supply history dating back to 1968 ― An independent s
Slide 55: Summary
Alleima Capital Markets Day 2022 55 Summary ―Niche market player with highly specialized portfolio ―Leading positions in key segments ―Proven margin resilience to the swings in the oil & gas market ―A clear growth agenda targeting five specific areas ―Well positioned for the ongoing energy transitio
Slide 56: Kanthal
Alleima Capital Markets Day 2022 56 4 Kanthal A world-leading provider of resistance heating materials, electrical heating systems and ultra-fine medical wire Anders Björklund, President Kanthal
Slide 57: Kanthal in brief
Alleima Capital Markets Day 2022 57 Hallstahammar, Sweden (HQ) Kanthal in brief A full-scale facility with Key locations 400+ FTEs: - Primary melting - Hot and cold rolling - Wire drawing - Strip production - Heating systems ― World-leading brand for products and services in the area of resistance m
Slide 58: Historical financial performance
Alleima Capital Markets Day 2022 58 2020 vs 2019 ― The decline for order intake and revenues in Historical financial performance 2020 primarily related to a decline in the Industrial Heating and the short cycle Order intake and revenues, SEK M Consumer customer segments, partly offset by a positive
Slide 59: Kanthal key product and customer segment overview
Alleima Capital Markets Day 2022 59 Kanthal key product and customer segment overview Customer segment Industrial Heating 60% Consumer 22% Medical 11% Primary product Heating systems Heating materials Medical category* Includes: Industrial Heating, Consumer, Industrial, Transport Example products Me
Slide 60: Kanthal electrifies industrial processes
Alleima Capital Markets Day 2022 60 Kanthal electrifies industrial processes Global CO2 EMI from energy combustion and industrial processes 1900 – 2050 in gigatons (Gt)1 40 HISTORICAL STEPS APS SDS NZE 36 — Dramatic pollution increase since 30 the industrial revolution — Emissions reached a record h
Slide 61: Half of the fuel consumed in industry processes can be electrified
Alleima Capital Markets Day 2022 61 Half of the fuel consumed for energy in industry processes can be electrified with technology available today – new technology under development Share of total estimated fuel consumption for energy1, % 100% Industrial fuel Low-temp heat Mid-temp heat High-temp hea
Slide 62: Heating Materials enables a unique Heating Systems offering
Alleima Capital Markets Day 2022 62 Heating Materials enables a unique Heating Systems offering ― Kanthal's unique material properties enables a leading position for industrial heating materials, a market growing with 6% CAGR Primary incl., Wire, strip Heating Industrial Semicon powder and tubes sys
Slide 63: Heating systems core business electrifies industrial processes
Alleima Capital Markets Day 2022 63 Heating systems core business electrifies industrial processes Ovako roadmap: CO2e emissions, scope 1&2 only – tonnes CO2e, all production, fixed volumes (2020) Primary incl., Wire, strip Heating Industrial Steel (‘000) powder and tubes system heating production -
Slide 64: Medical is all about lifechanging solutions
Alleima Capital Markets Day 2022 64 Medical is all about lifechanging solutions Next generation glucose monitor will open up a larger market for glucose sensors Raw Ultra fine Wire Medical Care giver material wire forming component OEM and patient Glucose Monitor Larger Glucose dimension wire sensor
Slide 65: Strategic direction for Heating Materials, Heating Systems and Medical
Alleima Capital Markets Day 2022 65 Strategic direction for Heating Materials, Heating Systems and Medical Heating materials Heating systems Medical Stabilize the business and Grow key industries, regions Fortify forming capabilities and improve profitability and key technologies grow into a wire co
Slide 66: Summary
Alleima Capital Markets Day 2022 66 Summary ―Unique product offering with leading position in attractive market niches ―Strong customer stickiness and spare part sales ―Strong sustainability profile ―Attractive financial profile with profit growth potential ―Potential to accelerate growth through ac
Slide 67: Strip
Alleima Capital Markets Day 2022 67 5 Strip A world-leading supplier of precision strip materials and coating of strip steel Claes Åkerblom, President Strip
Slide 68: Strip in brief
Alleima Capital Markets Day 2022 68 Strip in brief Key locations Sandviken, Sweden ― Global market leader for highly niched material ― Consists of Precision Strip and Surface Technology. ― Surface Technology; producing functional coatings primarily focused on the hydrogen society ― Mainly supplying
Slide 69: Historical financial performance
Alleima Capital Markets Day 2022 69 Historical financial performance 2020 vs 2019 Order intake and revenues, SEK M ― Order intake increased primarily related to strong development in the Consumer 7.8% 22.0% segment, while revenues decreased in 2020 mainly due to a decline in the Industrial and -5.2%
Slide 70: Key Strip product and customer segment overview
Alleima Capital Markets Day 2022 70 Key Strip product and customer segment overview Customer Consumer 53% Industrial 22% Transport 18% Medical 5% Hydrogen & 2% segment Renewable Energy Example products Pre-coated strip steel Example end- products Razor Electrical Printing doctor AC Compressor Bone s
Slide 71: Compressor technology
Alleima Capital Markets Day 2022 71 Compressor technology Driving energy efficiency Example energy efficiency improvements in compressor ― World leading supplier of stainless compressor valve steel, service offering close technology 2012-2022 to customer. ― From 2012 to 2022 the energy efficiency ha
Slide 72: Strategic direction for Strip
Alleima Capital Markets Day 2022 72 Strategic direction for Strip Focus on profitability and market leadership Expand target market Commercial and Growth – Existing offering Growth - New markets operational excellence ̶ Continue to build on strategy ̶ Products and applications driven ̶ Develop the o
Slide 73: Summary
Alleima Capital Markets Day 2022 73 Summary ―Unique and highly specialized products with customer relationships/partnerships over decades ―Global megatrends are working in our favor ―Proven strategy execution over the last years with a much-improved profitability ―Continued focus on profitability an
Slide 74: Alleima Capital Markets Day 2022
Alleima Capital Markets Day 2022
Slide 75: Capturing the energy transition opportunity
Alleima Capital Markets Day 2022 75 6 Capturing the energy transition opportunity Well positioned to capitalize on the opportunities driven by the transition to renewable energy sources and more sustainable global industries Göran Björkman, President & CEO Eva Lindh-Ulmgren, Head of R&D, Tube Phil C
Slide 76: Enabling a sustainable future through materials technology
Alleima Capital Markets Day 2022 76 Enabling a sustainable future through materials technology A Existing product offering and exceptional R&D as enabler B Tube C Kanthal D Strip Renewable energy transition Electrification of industry Energy transition & efficiency — Hydrogen refueling stations — Ga
Slide 77: Materials suited for the green energy transition
Alleima Capital Markets Day 2022 77 A B C D Materials suited for the green energy transition The hydrogen society Green hydrogen Green energy production Energy storage Use of green electricity A broad materials portfolio production Cost efficient materials that High performance materials Next genera
Slide 78: Existing product offering and exceptional R&D as enabler
Alleima Capital Markets Day 2022 78 A B C D Existing product offering and exceptional R&D as enabler Large and increasing share of strategic R&D budget geared towards the green transition Support in customer’s selection of materials Close collaboration with customers and technology providers in earl
Slide 79: Tube – Capitalizing on the green shift
Alleima Capital Markets Day 2022 79 A B C D Tube – Capitalizing on the green shift Shift to renewable energy sources Rebound in oil and gas… Current product offering to a large extent already applicable for renewable applications Established customer relationships with international oil companies tr
Slide 80: Tube – Six prioritized segments in renewable energy
Alleima Capital Markets Day 2022 80 A B C D Tube – Six prioritized segments in renewable energy Hydrogen Concentrated solar power Biopower/Biofuels ― Adoption of hydrogen ― Cost reduction and ― Application vehicles ability to store energy adaptability ― Power and wider ― Scalability in global ― Avia
Slide 81: Kanthal – Benefitting from the shift to electrical furnaces
Alleima Capital Markets Day 2022 81 A B C D Kanthal – Benefitting from the shift to electrical furnaces Shift to electrical furnaces… …expected to be boosted by the steel industry Share of industrial furnaces market Emission reduction targets Company 2025 2030 2050 25% 100% - 75% - 30% “Climate neut
Slide 82: Strip – targeting the Hydrogen fuel cell market
Alleima Capital Markets Day 2022 82 A B C D Strip – targeting the Hydrogen fuel cell market… Fast growing market dependent on several factors — Strong governmental policy support Why hydrogen — Hydrogen promotion through incentives and Hydrogen can contribute to 20% reduction of CO2 emissions funds
Slide 83: …through its Surface Technology offering based on unique pre-coating concept
Alleima Capital Markets Day 2022 83 A B C D …through its Surface Technology offering based on unique pre-coating concept Metal coils Alleima PVD Coil Coating Bipolar plate Fuel stack production production Plates Stack Fuel cell e- H 2 Air Product offering Enabling sustainable transportation Enabling
Slide 84: Four advantages creating strong position to capture the Hydrogen opportunity
Alleima Capital Markets Day 2022 84 A B C D Four advantages creating strong position to capture the Hydrogen opportunity The pre-coating Unique Production OEM concept competences capabilities focus ―A continuous coating coil ―Combined competence in ― High-volume ready to fulfil ―Close and long-term
Slide 85: Well positioned to lead the energy transition
Alleima Capital Markets Day 2022 85 Well positioned to lead the energy transition Current Customer World-leading R&D Pilot plant Positioned product offering + partnerships + and process + and full-scale = to lead the expertise manufacturing energy transition facilities
Slide 86: Q&A
Alleima Capital Markets Day 2022 86 Q&A Göran Björkman, President & CEO Olof Bengtsson, CFO Michael Andersson, President of Tube Anders Björklund, President of Kanthal Claes Åkerblom, President of Strip
Slide 87: Concluding remarks
Alleima Capital Markets Day 2022 87 7 Concluding remarks Winning platform set to unlock shareholder value Göran Björkman, President and CEO
Slide 88: Winning platform set to unlock shareholder value
Alleima Capital Markets Day 2022 88 Winning platform set to unlock shareholder value 1 Premium offering with solid market positions and diverse customer segment exposure 2 Fully integrated value chain with prominent metallurgy expertise and global footprint 3 Multiple and tangible levers to deliver
Slide 89: Spin-off timeline
Alleima Capital Markets Day 2022 89 89 Spin-off timeline April 27 Annual General Meeting 2022 of Sandvik August 4 Publication of Alleima prospectus 2022 August 23 Alleima Capital Markets Day 2022 August 26 Sandvik first day of 2022 trading excl. Alleima August 29 Record date for distribution of Alle
Slide 90: Alleima Capital Markets Day 2022
Alleima Capital Markets Day 2022