Nordic Flanges Group Ab · OMXSTO:NFGAB
Nordic Flanges Group Ab — Investor Presentation (April 2024)
36 slides from Nordic Flanges Group Ab's investor presentation, Apr 9, 2024
Slide 1: Management Presentation
Management Presentation Nordic Flanges Group AB (publ.) ProHearings Stockholm April 9:th, 2024
Slide 2: Today's presenters
Today’s presenters Frederik von Sterneck – Group CEO ▪ Mechanical engineer from Stockholm Technical Institute, STI (1988). Vlerick Leuven Gent Management School (2008). CEO Aliaxis Utilities & Industry AB (SE) and Aliaxis Utilities & Industry A/S (DK) 2006-2017. Previous employment: CEO APE Industri
Slide 3: Agenda
Agenda 1. About Nordic Flanges Group 2. Business model 3. Market overview 4. Financial overview 5. Management and Board of Directors 6. Use of proceeds, transaction structure and ownership 7. Appendix Private and confidential 3
Slide 4: Clear turn around opportunity in international heavy industry components manufacturer
1. ABOUT NORDIC FLANGES GROUP Clear turn around opportunity in international heavy industry components manufacturer… …that has completed restructuring efforts, with increased profitability on the horizon Nordic Flanges Group in brief Selection of international customer base ▪ Nordic Flanges Group AB
Slide 5: Organizational chart of Nordic Flanges Group AB
1. ABOUT NORDIC FLANGES GROUP Organizational chart of Nordic Flanges Group AB Nordic Flanges Group AB 3 employees Group CFO CEO Product & Market Director Mikael Eriksson Frederik von Sterneck Johan Isaksson 100% 100% 100% 100% ownership ownership ownership ownership Nordic Flanges AB Nordic Flanges
Slide 6: History
1. ABOUT NORDIC FLANGES GROUP History Cost cutting and efficiency Est. of AB Rupes, a Vinovo nam e change Green energy IPO Nasdaq First North im provements in NFAB, stockholder of stainless- and Merger of BÅEM and Rupes to Nordic Flanges and HSE Grow th Market saving approximately SEK 13 carbon stee
Slide 7: New financial targets
1. ABOUT NORDIC FLANGES GROUP New financial targets 10-15% net sales organic growth per annum during the coming 3-5 years. 5-12% EBITDA margin per annum during the coming 3-5 years. Disclaimer ▪ This information constitute forward-looking information. Forward-looking information is inherently associ
Slide 8: Agenda
Agenda 1. About Nordic Flanges Group 2. Business model 3. Market overview 4. Financial overview 5. Management and Board of Directors 6. Use of proceeds, transaction structure and ownership 7. Appendix Private and confidential 8
Slide 9: Wide range of forged, casted and machined products
2. BUSINESS MODEL Wide range of forged, casted and machined products Nordic Flanges Group manufactures both standardised and specialised products Flanges Other metal components ▪ Standard flanges are used to join pipelines and connect pressure vessels, ▪ Other metal components consists of OEM compon
Slide 10: NFG's products, manufactured in Europe, are top-tier on a global scale
2. BUSINESS MODEL NFG's products, manufactured in Europe, are top-tier on a global scale Nordic Flanges Group delivers premium industrial solutions with unmatched service Overview of products Products and services ▪ Nordic Flanges Group’s business concept is to deliver industrial solutions with the
Slide 11: Nordic Flanges Group is a leading supplier committed to quality
2. BUSINESS MODEL Nordic Flanges Group is a leading supplier commited to quality NFG’s solutions are setting the standard for excellence Industry focus Main industrial sectors, sales split 2023 ▪ Nordic Flanges Group strives to be a leading supplier of industrial flanges and OEM products in the mark
Slide 12: Global operations with expansion efforts gaining momentum in the US
2. BUSINESS MODEL Global operations with expansion efforts gaining momentum in the US Nordic Flanges Group exports to 30+ countries Nordic expertise in a global market Global reach ▪ Nordic Flanges Group is primarily active in the Nordic region, but the company is expanding globally each year, and h
Slide 13: Rapid agent sales growth and strategic shift from distributors to OEM sales
2. BUSINESS MODEL Rapid agent sales growth and stragetic shift from distributors to OEM sales Market expansion through selected sales channels Positive sales growth Type of customers, sales split 2023 ▪ Historically, the Nordic wholesale market has been the main segment for the Company’s sales. Over
Slide 14: Several competitive edges that make NFG stand out from the competition
2. BUSINESS MODEL There are several competitive edges that make Nordic Flanges Group stand out from the competition World-class quality, ESG and automation are among the top competitive edges Nordic Flanges Group’s positioning Premium competitive landscape, delivery time and added value Short ▪ NFG
Slide 15: The restructuring of Nordic Flanges AB has enabled a strong position for increased profits
2. BUSINESS MODEL The restructuring of Nordic Flanges AB has enabled a strong position for increased profits in 2024 Nordic Flanges Group has taken measures towards a more profitable future Restructuring of Nordic Flanges AB Positive outlook for profits in 2024 ▪ In November 2023, the Board of Direc
Slide 16: Agenda
Agenda 1. About Nordic Flanges Group 2. Business model 3. Market overview 4. Financial overview 5. Management and Board of Directors 6. Use of proceeds, transaction structure and ownership 7. Appendix Private and confidential 16
Slide 17: Global flanges market size to reach USD 6.8 billion by 2028
3. MARKET OVERVIEW Global flanges market size to reach USD 6.8 billion by 2028, growing with a CAGR of 6.7%1 Crucial industrial production among the driving factors of the global flange industry 1 Driving factors Global flanges market size 2023-2028 CAGR: 6.7% ▪ The growth of the flanges market is c
Slide 18: Several market trends in favour of Nordic Flanges Group
3. MARKET OVERVIEW There are several market trends in favour of Nordic Flanges Group Risk mitigation, ESG and R&D partnerships are some of the market trends that are positively affecting NFG Risk mitigation ESG R&D partner ▪ In today's interconnected global economy, ▪ Sustainability is a critical co
Slide 19: Agenda
Agenda 1. About Nordic Flanges Group 2. Business model 3. Market overview 4. Financial overview 5. Management and Board of Directors 6. Use of proceeds, transaction structure and ownership 7. Appendix Private and confidential 19
Slide 20: Income statement
4. FINANCIAL OVERVIEW Income statement 2023-01-01 2022-01-01 2021-01-01 SEKk -2023-12-31 -2022-12-31 -2021-12-31 Revenue Net sales 272,867 238,501 191,258 Changes in inventory 2,044 8,179 3,654 Other revenue 4,197 7,400 3,844 Total revenue 279,107 254,080 198,756 Expenses Raw materials and consumabl
Slide 21: Balance sheet – Total assets
4. FINANCIAL OVERVIEW Balance sheet – Total assets SEKk 31 December 2023 31 December 2022 31 December 2021 Fixed assets Intangible fixed assets 290 896 1,593 Tangible fixed assets 41,672 41,744 41,166 Financial fixed assets 12,527 12,849 12,904 Total fixed assets 54,489 55,489 55,663 Current assets
Slide 22: Balance sheet – Total liabilities and equity
4. FINANCIAL OVERVIEW Balance sheet – Total liabilities and equity SEKk 31 December 2023 31 December 2022 31 December 2021 Equity Share capital 4,216 4,216 2,635 Other paid-in capital 265,285 265,285 254,980 Other equity including profit for the period -250,524 -230,889 -228,165 Total equity 18,976
Slide 23: Cash flow analysis
4. FINANCIAL OVERVIEW Cash flow analysis 2023-01-01 2022-01-01 2021-01-01 SEKk -2023-12-31 -2022-12-31 -2021-12-31 Operating activities Income from continuing operations before tax -19,104 -6,644 -11,632 Paid income tax -751 -788 -439 Adjustments for items not affecting cash flow 4,385 11,368 12,282
Slide 24: Net working capital & net debt
4. FINANCIAL OVERVIEW Net working capital & net debt Negative working capital indicates less capital tied-up in the business Net working capital1 Net debt SEKm SEKm 2023-12-31 25 20 15 Cash 4.2 10 5 Loan Bank 12.6 0 -5 Bank overdraft, net 23.5 -10 Loans to BoD and major shareholders3 11.4 -15 Loan t
Slide 25: Agenda
Agenda 1. About Nordic Flanges Group 2. Business model 3. Market overview 4. Financial overview 5. Management and Board of Directors 6. Use of proceeds, transaction structure and ownership 7. Appendix Private and confidential 25
Slide 26: Management team
5. MANAGEMENT AND BOARD OF DIRECTORS Management team Management team with extensive experience from industrial companies, production, sales and finance Management Frederik von Sterneck – Group CEO Mikael Eriksson – Group CFO ▪ Mechanical engineer f rom Stockholm Technical Institute, STI (1988). Vler
Slide 27: Board of Directors
5. MANAGEMENT AND BOARD OF DIRECTORS Board of Directors A board with diverse experience from industrial companies, production and finance Board of Directors Bengt Engström – Chairman of the Board Caroline Talsma – Board Member ▪ MSc in engineering KTH Roy al Institute of Technology (1977). Prev ious
Slide 28: Agenda
Agenda 1. About Nordic Flanges Group 2. Business model 3. Market overview 4. Financial overview 5. Management and Board of Directors 6. Use of proceeds, transaction structure and ownership 7. Appendix Private and confidential 28
Slide 29: Use of proceeds
6. USE OF PROCEEDS, TRANSACTION STRUCTURE AND OWNERSHIP Use of proceeds The net proceeds are intended to be used to The net proceeds of up to approximately SEK 27 million is intended to be disposed of as follows: ▪ Easying of balance sheet 30-45% ▪ Working capital 30-45% ▪ Investments* 15% ▪ Restruc
Slide 30: Cap table before the Transaction
6. USE OF PROCEEDS, TRANSACTION STRUCTURE AND OWNERSHIP Cap table before the Transaction # Shareholders Number of shares Votes and capital (%) 1 Peter Gyllenhammar, Bronsstädet AB 21,938,003 26.0% 2 Christian Pérez through company 15,609,915 18.5% 3 Tomas Althén privately and through company 7,637,4
Slide 31: Investment highlights
6. USE OF PROCEEDS, TRANSACTION STRUCTURE AND OWNERSHIP Investment highlights Clear turn around opportunity in international heavy industry components manufacturer 1 ▪ The turnaround of a tanker is slow, but once the course is set, it's full speed ahead. 2 ▪ Net sales growth of ~20% which is 3x comp
Slide 32: Transaction structure
6. USE OF PROCEEDS, TRANSACTION STRUCTURE AND OWNERSHIP Transaction structure Rights Issue of SEK 27 million in Q2 2024 Indicative transaction structure Issuer ▪ Nordic Flanges Group AB (publ), org.nr. 556674-1749 (”Nordic Flanges”, “NFG” or the ”Company”). Transaction type and size ▪ Rights issue o
Slide 33: Agenda
Agenda 1. About Nordic Flanges Group 2. Business model 3. Market overview 4. Financial overview 5. Management and Board of Directors 6. Use of proceeds, transaction structure and ownership 7. Appendix Private and confidential 33
Slide 34: Nordic Flanges Group AB locations
7. APPENDIX Nordic Flanges Group AB Nordic Flanges AB Nordic Flanges Group locations ▪ Function: Factory and sales. ▪ Production: Forged flanges in stain- less steel, duplex steel and titanium and also experts in welded rings with collars. ▪ Stainless steel forging: Stock of raw material (EU origin)
Slide 35: Certifications and AMLs
7. APPENDIX Certifications and AMLs Extracts of NFG’s certifications and Approved Manufacturers list Certificates AML for customers and sectors ▪ ISO 9001:2015 ▪ ISO 14001:2015 ▪ PED 2014/68/EU ▪ NORSOK ▪ CRN Canada ▪ Achilles NFG’s operations are certified by all major Notified Bodies Private and c
Slide 36: Innovation – all the way - together
Private and confidential NORDIC QUALITY INNOVATION – ALL THE WAY - TOGETHER ” WE SECURE FLOWFOR THE BENEFIT OF DAILY LIFE OF PEOPLE”
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