Lamor Corporation Oyj · OMXHEX:LAMOR
Lamor Corporation Oyj — Investor Day (November 2022)
35 slides from Lamor Corporation Oyj's investor day presentation, Nov 22, 2022
Slide 1: Lamor Capital Markets Day
Lamor Capital Markets Day 22 November 2022 1 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 2: Agenda
Agenda 1 Refined strategy supporting growth Mika Pirneskoski, CEO 2 Strong commitment to reach our long-term financial targets Timo Koponen, CFO Q&A 3 Middle East as a focal growth driver Pentti Korjonen, SVP Middle East and Africa 4 World class project deliveries enabling local growth Johan Grön, C
Slide 3: Refined strategy supporting growth
Refined strategy supporting growth CEO Mika Pirneskoski 3 2 2 2N2 O NV O EVM EB M EBR E 2R0 2 20 2 2 CAPITAL MARKETS DAY 2022
Slide 4: Where are we coming from and what are we aiming for?
Where are we coming from and what are we aiming for? To enable growth: Globally local operating model Lamor way of working Increased resources and competences Clear strategy towards our vision 38 YEARS 2021-2022 2023-2025 4 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 5: The world and what we do / Why we succeed / Vision 2025
The world and what we do / Why we succeed / Vision 2025 Environmental protection Material recycling PUBLIC Preparedness Energy Sector Infrastructure Other industrial Recycling of waste and plastics Transformation to Safeguarding Customers more sustainable good quality life Need to become Response an
Slide 6: The world and what we do / Why we succeed / Vision 2025
The world and what we do / Why we succeed / Vision 2025 Competitive advantage Collaborative Positive Impact Customers Partners Working together to increase Working together to share the positive environmental and receive global knowhow and social impact and best practices Efficient, fit-for purpose
Slide 7: The world and what we do / Why we succeed / Vision 2025
The world and what we do / Why we succeed / Vision 2025 5 new projects to solve significant 3 new markets Plastics recycling with environmental to create a positive 100 ktn project portfolio challenges environmental impact to support solving the global plastics problem No.1 partner in Efficient and
Slide 8: Strong commitment to reach our long-term financial targets
Strong commitment to reach our long- term financial targets CFO Timo Koponen 8 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 9: Long-term financial targets and dividend policy
Long-term financial targets and dividend policy REVENUE TARGET ADJUSTED EBIT-% TARGET EUR 250 million 14 % CAPITAL STRUCTURE DIVIDEND POLICY suitable for the company’s strategy, targets and risk Aim to distribute annual dividends, while keeping profile by maintaining a strong balance sheet growth as
Slide 10: Group profitability development
Group profitability development Interim Q3 highlights Quarterly development of revenue and adjusted EBIT (EUR million) 50 25% Revenue increased to EUR 99.7 million (YoY 183.2%) 40 15% 30 5% Adjusted EBIT 20 -5% EUR 11.4 million (YoY 428.3%) 10 -15% 0 -25% Adjusted EBIT margin Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Order backlog supporting growth
Order backlog supporting growth Order intake and backlog at the end of Order backlog the quarter (EUR million) EUR 221.2 million 250 Orders received 1-9/2022 200 EUR 76.0 million 150 100 Bangladesh project order of 50 EUR 25 million included in order backlog in Q3 2022 0 Q4 2020 Q1 2021 Q2 2021 Q3 2
Slide 12: Gearing and leverage levels enabling additional financing
Gearing and leverage levels enabling additional financing Equity, Net Debt and Net gearing Equity ratio & Senior debt*/Adj. EBITDA 80 120% 60% 3,0 70 100% 50% 2,5 60 80% 2,0 50 40% 40 60% 1,5 30% 30 40% 1,0 20 20% 20% 0,5 10 0% 10% 0,0 0 -10 -20% 0% -0,5 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q2/21 Q3/
Slide 13: Cost base structure demonstrating the scalability potential
Cost base structure demonstrating the scalability potential Cost structure 8% 6% (% of total cost base) 8% 100 % 13% 14% 26% 15% 80 % 15% YTD 15% 2021 Q3/2022 60 % 60% 19% 40 % 71% 71% 60% 20 % Direct materials and services Direct materials and services 0% Employee benefit expenses Employee benefit
Slide 14: Commitment on reaching our long-term targets
Commitment on reaching our long-term targets Untapping full Extending to new Plastics Increased market potential markets recycling accountability on existing markets >120M€ 250 M€ >14M€ 14% Scalability Optimised Repeatable Increased sourcing delivery process accountability 14 22 NOVEMBER 2022 CAPITA
Slide 15: Both tailwinds and headwinds entering into 2023
Both tailwinds and headwinds entering into 2023 2022 2023 Where we are Tailwinds Headwinds Strong revenue growth Strong underlying order Uncertainties in Strong order backlog backlog world economy Enhanced team supporting Promising prospect funnel Continued cost inflation growth building o
Slide 16: Q&A
Q&A 16 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 17: Middle East as a focal growth driver
Middle East as a focal growth driver SVP Middle East and Africa Pentti Korjonen 17 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 18: Significant market potential in the Middle East
Significant market potential in the Middle East Saudi Arabia to invest Putting a price on soil: The objectives and PIF – owned SIRC $187.66bln to develop The importance of soil mandate of SAIL is to targets zero-waste green economy to human civilization protect the Saudi “Circular Economy” by cannot
Slide 19: Environmental protection at the Red Sea
Environmental protection at the Red Sea Current status Lamor has three oil spill response centers in Saudi Arabia providing Tier 2 response services. Duba Market potential relating to environmental protection The local authorities have plans to have a capacity Jeddah of 530,000 barrels of oil spills
Slide 20: Soil remediation in Kuwait
Soil remediation in Kuwait Current status The Kuwait Environmental Remediation Program is aiming to clean, remediate and revegetate the affected area. Lamor has two soil-remediation projects on-going in the area. Market potential relating to environmental protection The United Nations has admitted a
Slide 21: Middle East – How to win?
Middle East – How to win? Competitive advantage Local presence • Close relationship with key customers • Credible local and global references Investments to increase Lamor’s local presence Leading partner network • Proven global expertise • Strong local and global key partners New partnerships t
Slide 22: World class project deliveries
World class project deliveries COO Johan Grön 22 2 22 2 N NOOV VE EMMB BE ER R 2 20 02 22 2 CAPITAL MARKETS DAY 2022
Slide 23: World-class delivery is based on a strong offering
World-class delivery is based on a strong offering references leading to repeatable business Offerings Technology Solutions Environmental Peru Oil Spill Deepwater Horizon Oil Spill Saudi Shoreline Protection • Equipment • Equipment Protection • On-/Nearshore • Offshore • Prepare • Respond • Recover
Slide 24: World-class delivery reinforces our capabilities to drive value for customers
World-class delivery reinforces our capabilities to drive value for customers 6. 1. Repeatable Structured execution tendering 5. 2. TRUSTED & Right-reach Right-time COMMITTED logistics engineering 4. 3. Right-type Right-cost Local presence Leading partner network Lamor way of working supply chain St
Slide 25: World-class project deliveries are built on Lamor competitive advantages
World-class project deliveries are built on Lamor competitive advantages Competitive Product Procure SCM Logistics Execute management advantage Global approach World-class global project execution leadership practices with localised operations. Repeatable, agile and Strong partner network Global bes
Slide 26: Plastics recycling supporting green transition
Plastics recycling supporting green transition CEO Mika Pirneskoski COO Johan Grön CDO Johanna Grönroos 26 2 22 2 N NOOV VE EMMB BE ER R 2 20 02 22 2 CAPITAL MARKETS DAY 2022
Slide 27: Plastics – One of the biggest environmental problems of our life-time
Plastics – One of the biggest environmental problems of our life-time “ Globally, only 9% of plastic waste is recycled, while 22% is mismanaged “ Global plastic waste set to almost triple by 2060, says OECD “ Many OECD countries and emerging economies have been implementing policies that specificall
Slide 28: Plastics recycling – Drivers to address the challenge
Plastics recycling – Drivers to address the challenge • Plastic based materials are developing (or forced to) towards ever-higher recycling rates. • EU directive for plastic recycling clearly drives for an increased recycling volume by 2030. This would mean a recycling rate of approximately 60%. • ”
Slide 29: Plastics recycling – Illustration of mechanical and thermochemical processing
Plastics recycling – Illustration of mechanical and thermochemical processing for maximised material yield Mechanical Recycling (MR) Shredding Optical Washing Mech Drying Thermal Extrusion Storage sorting (NIR) Separate Drying 1/3 Granulates • Natural • Black Sorting Baled plastic Cracking & Condens
Slide 30: Q&A
Q&A 30 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 31: Key Messages
Key Messages CEO Mika Pirneskoski CDO Johanna Grönroos 31 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 32: The world and what we do / Why we succeed / Vision 2025
The world and what we do / Why we succeed / Vision 2025 5 new projects to solve significant 3 new markets Plastics recycling with environmental to create a positive 100 ktn project portfolio challenges environmental impact to support solving the global plastics problem No.1 partner in selected Effic
Slide 33: Key Messages
Key Messages Lamor’s environmental solutions respond to the global megatrends Clear targets for the strategy period to increase environmental protection and material recycling • Preferred partner in selected strategic markets • Three new markets • Five new significant projects • Plastics recycling •
Slide 34: Thank you.
Thank you. investors.lamor.com #letscleantheworld 34 22 NOVEMBER 2022 CAPITAL MARKETS DAY 2022
Slide 35: LAMOR
LAMOR Let's clean the world