Raute Oyj Class A · OMXHEX:RAUTE
Raute Oyj Class A — FY2023 Earnings Presentation
29 slides from Raute Oyj Class A's earnings presentation, Feb 15, 2024
Slide 1: Q4/2023 Financial Statements Release
Q4/2023 Financial Statements Release 2023 Mika Saariaho, President and CEO Ville Halttunen, CFO February 15, 2024
Slide 2: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures KUVA • Strategy update and outlook 2024 • Dividend proposal 2 www.raute.com
Slide 3: Where are we now
Where are we now ✓ Record-high order intake and order book • Order intake EUR 118m in Q4 and EUR 315m in 2023, order book at EUR 266m • All time high single order of EUR 93m for Metsä Wood LVL-mill in Äänekoski, Finland • Overall, strong interest for complete mill-sized projects • Excluding mill-siz
Slide 4: Highlights of FY2023 and Q4/2023
Highlights of FY2023 and Q4/2023 Record high order intake and order book, improved profitability NET SALES COMPARABLE EBITDA ORDER INTAKE -8.2% EUR EUR 145.4m EUR 9.3m EUR +11.6m EUR 315m +177m FY2023 -1.0% FY2023 EUR FY2023 EUR 0.0m +89m Q4/2023 Q4/2023 Q4/2023 EUR 45.2m EUR 2.7m EUR 118m +13.6 EUR
Slide 5: Order intake
Order intake Record high order intake of EUR 118 million in Q4/2023, including Raute’s single biggest order in history EURm 315 350 M€ Q4/2023 300 North Asia-Pacific America 12% 2% 250 118 South America 1% 200 19 Europe 85% 138 150 28 112 100 35 40 50 • EUR 93 million order from Metsä Wood in 67 36
Slide 6: Order book
Order book Record-high order book of EUR 266m at the end of 2023 266 M€ 280 260 • Four mill-sized orders received during 2023: Lumin, Latvias Finiers, Thebault and 240 Metsä Wood 220 • Slowdown in the construction industry 200 reducing demand for softwood and 180 hardwood plywood 160 • Continued str
Slide 7: Net sales
Net sales Net sales EUR 45.2m in Q4/2023, down 1.0%, driven by Wood Processing and the structure of the order book Q4/2023 EURm South 180 145 America 158 M€ 24% 160 Europe 140 32% 45 Asia–Pacific 120 45 4% Russia 100 6% 42 80 34 North America 33% 60 30 29 40 • Net sales declined in Wood Processing,
Slide 8: Comparable EBITDA
Comparable EBITDA Comparable EBITDA EUR 2.7m in Q4/2023, supported by the profitability improvement program EURm • Comparable EBITDA EUR 2.7m (2.7) and 8.0 margin 5.9% (5.8%) in Q4/2023 2.7 6.0 M€ • Supported by the savings from the 4.0 profitability improvement program 2.7 • The figure was also pos
Slide 9: Operating profit (YTD)
Operating profit (YTD) EURm 10.0 • FY2023 operating profit EUR 1.9 1.9m (-14.6) M€ 5.0 • Comparison period heavily impacted by the controlled 0.0 wind-down of the Russian operations -5.0 -10.0 -15.0 -14.6 -20.0 2019 2020 2021 2022 2023 Q1 Q1-Q2 Q1-Q3 Q1-Q4 www.raute.com
Slide 10: Personnel
Personnel Decline due to the personnel reductions realized in 2023 as part of the profit improvement program Headcount at the end of the period, in books 754 Others China 5% 800 8% 700 600 North America 500 19% 400 300 200 Europe 68% 100 0 2019 2020 2021 2022 2023 10 www.raute.com
Slide 11: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Strategy update and outlook 2024 • Dividend proposal 11 www.raute.com
Slide 12: Wood processing
Wood processing EURm Net Sales -12.6% EURm Comparable EBITDA 35 2 • Net sales EUR 29.1m in Q4/2023, decreased by 12.6% • Net sales impacted by the controlled 0 30 Q1 Q2 Q3 Q4 wind-down of the Russian operations. Q4/22 included relatively 25 -2 high share of sales to Russia • Structure of the order b
Slide 13: Services
Services EURm Net Sales EURm Comparable EBITDA 12 +18.7% 3 • Net sales EUR 10.3m in Q4/2023, increased by 18.7% • Overall demand for spare parts 10 2.5 was moderate, an increased demand for other services • Some of the delayed deliveries 2 8 resulting from the ERP implementation were recognized as r
Slide 14: Analyzers
Analyzers Net Sales Comparable EBITDA EURm EURm 7 +57.3% 2.5 • Net sales EUR 5.8m in Q4/2023, increased by 57.3% 6 • The increase was due to a larger 2 number of project deliveries • Demand was especially good in North 5 America 1.5 • Comparable EBITDA EUR 1.3m (1.1) 4 • The increase was due to high
Slide 15: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Strategy update and outlook 2024 • Dividend proposal 15 www.raute.com
Slide 16: Quarterly cash flow and EBITDA
Quarterly cash flow and EBITDA Strong operating cash flow EUR 38.6m in 2023, supported by profitability improvement and new orders EURm Operating cash flow and EBITDA • Q4/2023 operating cash flow EUR 9.8m Operating cash flow EBITDA Operating cash flow (R12M) EBITDA (R12M) (1.2) 50.0 • EBITDA amount
Slide 17: Net working capital
Net working capital Net working capital at EUR -36.2m at the end of 2023 EURm % of net sales • Net working capital EUR -36.2m (-5.1) at the NWC NWC % of 12M sales end of 2023 10.0 10% • NWC change during Q4/2023 5.6 5.0 EUR -7.6m 5% • NWC improved EUR 31.1m during 2023 0.0 0% • Customer prepayments
Slide 18: Equity ratio
Equity ratio Equity ratio increased to 50.2% as a result of the new equity raised 70.0% • Net new equity was raised EUR 15.5 million during the second quarter 60.0% 50.2% according to plan 50.0% • Rights issue and directed share issue 40.0% net new equity of EUR 12.5 million 30.0% • Junior convertib
Slide 19: Capex and depreciation and amortization
Capex and depreciation and amortization Key capital expenditure items include the ERP renewal EURm 7 4.9 6 M€ 5 4 4.5 M€ 3 2 1 0 2019 2020 2021 2022 2023 Capital expenditure Depreciation and amortization, excl. depreciation from right-of-use assets 19 www.raute.com
Slide 20: Research and Development
Research and Development EURm % 7 7 6 6 5 5 5.2 M€ 4 4 3 3 3.6% 2 2 1 1 0 0 2019 2020 2021 2022 2023 R&D costs R&D costs, % of net sales 20 www.raute.com
Slide 21: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Strategy update and Outlook 2024 • Dividend proposal 21 www.raute.com
Slide 22: Partner to future-proof the wood industry
=] Ay mx We are the partner to future-proof the wood industry. 7 With our unique solutions, we drive change and promote SS resource-efficient society. ep % €& RAUTE 22 www.raute.com =2 RAUTE
Slide 23: Raute's new values
Raute’s new values We engage actively with our customers. We support professional growth for our We commit to making environmentally We believe in the power of teamwork We deeply understand their needs people by encouraging learning, responsible, socially conscious and and collaboration. Through ope
Slide 24: Development on strategic themes 2024–2028
Development on strategic themes 2024–2028 Increase Exceed market Drive ESG agenda in profitability and growth and our industry decrease volatility expand offering • Profitability improvement • Record high order intake of • Double materiality program of EUR 4-5m EUR 315m in 2023, order assessment com
Slide 25: Outlook for 2024
Outlook for 2024 Business environment Raute • The market remained uncertain in 2023. While inflation • Guidance for 2024: Raute’s 2024 net sales are stabilized and slowed down during the year, increasing expected to be in the range of EUR 170–195m increased interest rates and overall uncertainty in
Slide 26: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Strategy update and outlook 2024 • Dividend proposal 26 www.raute.com
Slide 27: Divident proposal
Divident proposal Dividend per share • Raute aims to pay a stable and sustainable EUR 1.6 dividend over different market conditions 1.4 1.37 • On December 31, 2023, the parent company 1.2 Raute Corporation’s distributable funds amounted to EUR 31.8 million 1 0.8 0.76 • The Board of Directors propose
Slide 28: Further information
Further information Mika Saariaho President and CEO +358 40 1549393 mika.saariaho@raute.com Ville Halttunen CFO +358 50 3460868 ville.halttunen@raute.com.com 28 www.raute.com
Slide 29: Thank you for your interest!
Thank you for Follow us online: your interest! www.raute.com LinkedIn: Raute Oyj Youtube: www.youtube.com/RauteMachinery Facebook: Raute Corporation Instagram: @rautecorporation