Alleima Ab · OMXSTO:ALLEI
Alleima Ab — Q2 2024 Earnings Presentation
24 slides from Alleima Ab's earnings presentation, Jul 19, 2024
Slide 1: Interim report Second quarter 2024
July 19, 2024 Interim report Second quarter 2024 G6ran Bjorkman, President & CEO Olof Bengtsson, CFO \ Alleima
Slide 2: Safety first
Alleima 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 Speak Up
Slide 3: Q2 highlights
Second quarter 2024 Alleima | Q2 highlights Revenues Organic revenue Flat organic revenue growth on high sant pata comparables — Improved market sentiment — Solid and growing backlog Resilient earnings — Broader EBIT contribution Adj. EBIT Adj. EBIT margin — Strong cash flow (SEK M) Staying with our
Slide 4: Leading sustainability
Alleima | Second quarter 2024 Leading sustainability Making an impact through our operations — Prioritizing safety performance — Share of recycled steel remains high — Reducing CO: emissions — _ Increasing share of female managers No. of Frequency injuries rate, R12 30 2 % 20 8 1 40 4 0 0 G2 G3 G4 G
Slide 5: Enabling the sustainable transition
Alleima | Second quarter 2024 Enabling the sustainable transition Making an impact through our products Strategic partnership for process gas direct-heating solution — Key to enable zero-emission DRI plants — Sustainable steel production — _ Compatible with hydrogen, natural gas and combinations New
Slide 6: Market development
Alleima | Second quarter 2024 Market development — _ Improving market sentiment — Cautiously improved macro environment Perceived year on year underlying market demand trend ‘CHEMICAL AND: INDUSTRIAL OILAND GAS INDUSTRIAL PETROCHEMICAL HEATING ‘CONSUMER Year on year underlying demand trend % of Grou
Slide 7: Alleima
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Slide 8: Earnings
Alleima | Second quarter 2024 Earnings Adjusted EBIT at SEK 592 million (642) — Margin of 11.1% (11.4) — Solid product mix — Price leadership Free operating cash flow of SEK 486 million (72) Adjusted EBIT SEKM % 700 12 600 0 500 8 400 6 300 4 200 100 2 ie) fe) a a3 G4 a @ @ @ a @ 2022 2023 2024 EBIT
Slide 9: Alleima Note: Historical numbers are restated for divested or discontinued businesses, as well as
Alleima 9 25 000 20 000 15 000 10 000 5 000 0 Note: Historical numbers are restated for divested or discontinued businesses, as well as treating Sandvik as an external customer.
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Slide 12: Strip
Alleima | Second quarter 2024 Strip Continued improved demand — Organic order intake growth of 0% R12 — Organic revenue growth of -6% — Book-to-bill of 96% R12 Improved cost position — Improved margins yoy and sequentially — Still damped by low deliveries — FX tailwind of SEK 2 million yoy 12 SEKM Q
Slide 13: Financial summary
Alleima Financial summary | Second quarter 2024 13 SEKM Q2 2024 Q2 2023 Q1-Q2 2024 Q1-Q2 2023 Order intake, R12 20135 21,636 = - Revenues 5,359) 5,638 10,099 11,014 Adj. EBIT 592 642 1,046 1,209 Adj. EBIT margin, % 1 11.4 10.4 11.0 Metal price effects 96 -293 -231 186 Items affecting comparability (
Slide 14: Bridge analysis, adjusted EBIT
Alleima | Second quarter 2024 Bridge analysis, adjusted EBIT 14 642 77 =i 0] 592 Adj EBIT Organic Currency Structure Adj EBIT Q2 2023 Q2 2024 Adj. EBIT Adj. EBIT margin 11.4% margin 111% AN Leverage: N/A — Negative organic development driven by volume decrease — FXhada positive impact of SEK 27 mill
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Slide 18: Guidance ahead of the quarter and outcome
Alleima | Second quarter 2024 Guidance ahead of the quarter and outcome 18 Outcome Q2 2024 Guidance ahead of Q2 2024 Capex (Cash) SEK 212 million Approximately SEK 950 million Q2 2024 in FY 2024 Currency translation and SEK 23 million SEK 25 million in Q2 transaction effect Total currency effect SEK
Slide 19: Guidance Q3 2024 and FY 2024
Alleima 19 | Second quarter 2024 Guidance Q3 2024 and FY 2024 Capex (cash) — Estimated to approximately SEK 950 million for FY 2024 Currency effects (transaction and translation) — SEK-15 million on operating profit (EBIT) for Q3 2024, compared to the corresponding period last year Metal price effec
Slide 20: Outlook for the third quarter 2024
Alleima | Second quarter 2024 | 20 mt Outlook for the third quarter 2024 — Improving market sentiment in a somewhat cautious economic environment — Solid backlog in key segments — The product mix is expected to be similar to Q2 — Normally seasonally lower order intake, revenues and adjusted EBIT-mar
Slide 21: Summary
Summary —Improved market sentiment —Flexibility in our organization —Improved resilience —Order backlog remains solid —Consistent strategy execution towards profitable growth
Slide 22: Q&A
Alleima 22 Second quarter 2024 Q&A
Slide 23: Thank you
Alleima Thank you alleima.com
Slide 24: Disclaimer
Alleima | Second quarter 2024 “ Disclaimer This presentation contains “forward-looking” statements that reflect the company’s current expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such exp