Slide 1: Interim report fourth quarter 2024
Interim report fourth quarter 2024
Slide 2: Summary Q4
Summary Q4 Solid order intake growth – Continued momentum in mining and strong order intake growth in infrastructure, while challenging industrial activity led to subdued demand, particularly in Europe and the 1% automotive segment – Total order intake increased by 5%, organic growth was 4% – Total
Slide 3: Innovation and product development are key to our organic growth
Innovation and product development are key to our organic growth – Upgraded 800i cone crusher series with new ACS-c 5 automation and connectivity system launched early 2024 – Enables processing of higher volumes and obtaining finer particle sizes – Priority to leverage our technology to reduce energ
Slide 4: YoY market development
Interim report for the fourth quarter 2024 YoY market development Mining General Engineering Infrastructure Automotive Aerospace Other 51% 20% 9% 6% 4% 10% % of revenue 2024 Percent of revenue Order intake 2024 Y/Y Q4 24 Europe 26% -2% North America 25% 5% Asia 18% -6% Africa and Middle East 12% 20%
Slide 5: Order intake and revenues
Interim report for the fourth quarter 2024 Order intake and revenues SEK Bn 35 140 Order intake Reported (MSEK) 31,562 30 120 25 100 Revenues 20 80 Reported (MSEK) 15 10 60 40 32,151 Book-to-bill 5 20 0 Q1 Q2 2020 Q3 Q4 Q1 Q2 2021 Q3 Q4 Q1 Q2 2022 Q3 Q4 Q1 Q2 2023 Q3 Q4 Q1 Q2 2024 Q3 Q4 0 98% Order
Slide 6: Growth in order intake and revenues
Interim report for the fourth quarter 2024 Growth in order intake and revenues Order intake Revenue SEK Bn SEK Bn 50% 140 50% 140 40% 120 40% 120 30% 100 30% 100 20% 80 20% 80 10% 10% 0% 0 0% 0 -10% -20 -10% -20 -20% -40 -20% -40 -30% -60 -30% -60 -40% -80 -40% -80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 7: Adjusted EBITA development
Interim report for the fourth quarter 2024 Adjusted EBITA development SEK Bn 8 +1.2% 22% Adj. EBITA margin: 19.6% 7 20% 6 18% 5 16% 4 14% 3 12% – Adj. EBITA SEK 6,288 M (6,211) 2 4% – Lower volumes off-set by price realization, good cost control, and structural savings 1 2% – Currency dilution of 20
Slide 8: Mining and Rock Solutions
Interim report for the fourth quarter 2024 Order intake and revenues 52% share of Mining and Rock revenues 2024 SEK Bn Solutions 20 150% 16 100% Order intake 12 – Solid demand in mining, positive momentum in the aftermarket 8 50% business with double-digit growth, equipment order intake stable year
Slide 9: Rock Processing Solutions
Interim report for the fourth quarter 2024 Order intake and revenues 9% share of Rock Processing revenues 2024 SEK Bn Solutions 4 150% 3 100% Order intake 2 – Underlying demand in mining remained stable, and improved sentiment 50% 1 in infrastructure in US – Total order intake increased by 22%. At f
Slide 10: Manufacturing and Machining Solutions
Interim report for the fourth quarter 2024 Order intake and revenues 39% share of Manufacturing and Machining revenues 2024 SEK Bn Solutions 16 150% 12 100% Order intake 8 – Weaker demand in cutting tools, mainly in Europe and in automotive partly 50% compensated by solid order intake in the powder
Slide 11: Cecilia Felton, CFO
Cecilia Felton CFO 11
Slide 12: Financial summary
Interim report for the fourth quarter 2024 Financial summary MSEK Q4 2023 Q4 2024 Growth OI Rev Order intake 30 062 31 562 Organic 4% 0% Revenues 31 816 32 151 Structure 2% 1% Adjusted EBITA 6 211 6 288 Organic + structure 5% 1% Adjusted EBITA margin 19.5% 19.6% Currency 0% 0% Net financial items -6
Slide 13: Bridge analysis
Interim report for the fourth quarter 2024 Bridge analysis Q4 Q4 MSEK 2023 Organic Currency Structure 2024 Revenues 31,816 49 -96 382 32,151 Adjusted EBITA 6,211 115 -71 33 6,288 Adjusted EBITA margin 19.5% 235% 19.6% Accretion/dilution 0.3% -0.2% -0.1% 13
Slide 14: Restructuring programs delivered according to plan
Interim report for the fourth quarter 2024 Restructuring programs delivered according to plan Group Annualized SMM SMR SRP Total activities run-rate 2022 Program Savings in Q4 122 20 34 – 177 90% Total estimated run-rate savings 540 100 140 5 785 2024 Program Savings in Q4 147 73 21 1 242 78% Total
Slide 15: Net financials
Interim report for the fourth quarter 2024 Net financials MSEK Q4 2023 Q4 2024 Interest net -468 -309 Pension -29 -26 Bank charges -23 -26 Other financial income and cost -10 61 Leases IFRS16 -66 -72 Fx and other asset classes -34 9 Total -630 -364 Total yield cost, R3 5.8% 4.9% Total yield cost, R1
Slide 16: Tax rate
Interim report for the fourth quarter 2024 Tax rate MSEK Q4 2023 Q4 2024 Reported 19.6% 20.1% Excluding IAC 20.8% 24.0% – Normalized tax: In line with guidance for Normalized 21.7% 24.0% 2024 – 23-25% 16
Slide 17: Net working capital
Interim report for the fourth quarter 2024 Net working capital Net working capital Per BA, % of revenues Sek Bn 40 40% 40% 35 35% 35% 30 30% 30% 25 25% 25% 20 15 20% 20% 10 15% 15% 5 0 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 18: Free operating cash flow
Interim report for the fourth quarter 2024 Free operating cash flow SEK Bn 7 140% MSEK Q4 2023 Q4 2024 6 120% EBITDA 7,717 7,736 5 100% 4 80% Non-cash and other items** -1,595 -1,084 EBITDA adj for non-cash 3 60% 6,123 6,651 and other items 2 40% Capex -1,698 -1,366 1 20% NWC 1,039 1,178 0 0% FOCF 5
Slide 19: Net debt
Interim report for the fourth quarter 2024 Net debt SEK Bn RATIO 60 1.8 Financial net 50 1.5 debt/R12 EBITDA: 40 1.2 30 20 0.9 0.6 1.2 10 0.3 0 0.0 -10 -0.3 – Financial net debt SEK 32 billion -20 -0.6 – Net debt SEK 41 billion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 20
Slide 20: Outcome versus guidance
Interim report for the fourth quarter 2024 Outcome versus guidance Outcome Q4 Guidance Q4 Currency YoY effect (MSEK) -71 -250 Outcome FY24 Guidance FY24 Capex (BSEK) 4.8 5.0 Interest net (BSEK) -1.5 -1.5 Normalized tax rate (%) 24.0% 23-25% 20
Slide 21: Guidance Q1 and FY 2025
Interim report for the fourth quarter 2024 Guidance Q1 and FY 2025 Currency effect Given currency rates at the end of December 2024 the effect on operating profit from transaction and translation would be SEK +300 M for Q1 2025 CAPEX (Cash) Estimated to approximately SEK 5.0 Bn for 2025 Interest net
Slide 22: Conclusion
Conclusion Stable performance in a challenging market – Fourth quarter ended on a positive note with good organic order intake growth, stable revenues and improved profitability – Full year revenues decreased by 1% with margin of 19.2% - resilient level given the volume declines – Free operating cas
Slide 23: Q&A
Q&A 23
Slide 24: Backup slides
Backup slides 24
Slide 25: Adjusted EBITA bridge, per BA
Interim report for the fourth quarter 2024 Adjusted EBITA bridge, per BA Q4 Q4 MSEK Organic Currency Structure 2023 2024 Mining & Rock Solutions Revenues 16,894 491 -55 -24 17,306 Adjusted EBITA 3,472 259 -16 5 3,721 Adjusted EBITA margin 20.6% 21.5% Rock Processing Solutions Revenues 2,807 2 -6 - 2
Slide 26: Loan and duration profile
Interim report for the fourth quarter 2024 Loan and duration profile Long term: MSEK Amount Duration Bonds MTN 24,066 3.7 years 86% Bank Loans 7,610 6.1 years Short term: Commercial papers 832 0.1 years Bonds MTN Bank Loans 3,707 430 0.3 years 0.5 years 14% Total 36,644 3.7 years Committed Credit fa
Slide 27: Loan maturity profile
Interim report for the fourth quarter 2024 SEK M Loan maturity profile 8 000 Average interest rate: ~3.2% (excluding swap costs) 6 000 4 000 2 000 - 2025 2026 2027 2028 2029 2030 2031 2032 2033 27
Slide 28: Disclaimer statement
Disclaimer statement Some statements herein are forward-looking, and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors for example, the effect of economic conditions, exchange-rate