Slide 1: First Quarter Earnings Presentation
FIRST QUARTER Earnings Presentation 22 April 2021
Slide 2: New record for sales volume and earnings in the first quarter
New record for sales volume and earnings in the first quarter ○ Strong market conditions in all regions ○ Record sales volume and operating profit – Sales volume increased by 41% – Adjusted operating profit SEK 342 million ○ Strong execution on the strategy – Newport investment completed – Konin int
Slide 3: Diversified product portfolio serving four key end-customer markets
Gränges has a diversified product portfolio serving four key end-customer markets Q1 2021 sales volume by end-customer market Other niches Automotive 20% 44% 15% Speciality packaging HVAC 21% 3
Slide 4: Strong demand development across all regions and end-customer markets
Strong demand development across all regions and end-customer markets in the first quarter Q1 2021 sales volume growth by region and end-customer market1 Speciality YoY (%) Automotive HVAC Other niches Total Packaging Europe +14% - +2%1 -2% +12% Asia Pacific +38% - - +44% +39% North & South +10% +11
Slide 5: All-time high sales volume and operating profit in Gränges Americas
All-time high sales volume and operating profit in Gränges Americas in the first quarter ○ Record sales volume and operating profit Gränges Americas R12 sales volume and adjusted operating profit per tonne – Sales volume 62.7 ktonnes 250 3.0 Adjusted operating profit per tonne (kSEK) – Operating pro
Slide 6: Integration of Gränges Konin is progressing to plan
Integration of Gränges Konin is progressing to plan ○ COVID-19 imposes restrictions on physical integration activities ○ Q1 performance in line with expectations – Sales volume 24 ktonnes – Adjusted operating profit SEK 49 million ○ First new capacity from expansion investment available in 2022 6
Slide 7: Strategic priority: sustainable aluminium products and solutions
Our strategic priority is to offer customers sustainable aluminium products and solutions Circular and Responsibly sourced Low climate impact resource-efficient and produced 7
Slide 8: Upgraded 2025 sustainability targets
Upgraded 2025 sustainability targets Previous Upgraded Key performance indicator targets 2025 targets 2025 Products with third-party verified sustainability 80% 100% information Renewable energy Increase ≥ 20% Sourced recycled aluminium 20% ≥ 30% Carbon intensity from sourced metal inputs Reduce -30
Slide 9: New business area structure with Gränges Americas and Gränges Eurasia
Introduction of a new business area structure with Gränges Americas and Gränges Eurasia Gränges Americas Gränges Eurasia Finspång Powder Konin Huntingdon Salisbury Metallurgy Shanghai Newport International Production o Continuous casting Production o DC casting + hot rolling technology o Cold rollin
Slide 10: Strong margin improvement despite unfavourable currency development
Strong margin improvement despite unfavourable currency development in first quarter Sales volume and Adjusted operating profit per tonne 100 4.0 Adjusted operating profit per tonne (kSEK) 3.0 2.6 2.9 80 2.3 2.7 2.0 Sales volume (ktonnes) 1.9 2.0 60 0.0 40 -2.0 20 14.6 24.0 58.4 38.8 46.7 28.0 59.1
Slide 11: Financial overview – first quarter 2021
Financial overview – first quarter 2021 SEK million Q1 12 months rolling 2021 2020 Change Mar 2021 Dec 2020 Change Sales volume (ktonnes) 126.7 89.9 41.0% 387.5 350.6 10.5% Net sales 4,043 3,063 32.0% 11,987 11,008 8.9% Adjusted operating profit1 342 210 62.9% 780 648 20.4% Adjusted operating margin
Slide 12: Net debt amounted to SEK 3.7 billion on 31 March
The net debt amounted to SEK 3.7 billion on 31 March Change in net debt 0 2.2 Adjusted cash flow before financing 2.4 SEK -55 million -1,000 SEK million -2,000 -3,000 -3,292 499 -471 -31 -52 -195 -148 -3,690 -4,000 Net debt Adjusted Change in Other Maintenance Expansion FX & Net debt 31 Dec EBITDA w
Slide 13: Gränges Americas – first quarter 2021
Gränges Americas – first quarter 2021 Sales volume ○ Continued strong market development 80 +7.4% supported by market share increase 60 ktonnes ○ Record sales volume, operating profit 40 and margins 20 58.4 46.7 59.1 54.9 62.7 – Negative FX effects SEK 31 million 0 Q1 Q2 Q3 Q4 Q1 ○ Newport mill upgr
Slide 14: Gränges Eurasia – first quarter 2021
Gränges Eurasia – first quarter 2021 Sales volume ○ Strong year over year demand recovery 80 +89%1 – Asia Pacific +38% 60 ktonnes – Europe +12% 40 20 ○ Solid organic increase in operating profit 38.8 28.0 31.8 55.4 73.2 0 per tonne Q1 Q2 Q3 Q4 Q1 – Negative FX effects SEK 31 million Adjusted operati
Slide 15: Outlook – second quarter 2021
Outlook – second quarter 2021 ○ Although some uncertainty remains, market demand is anticipated to remain on a healthy level in the second quarter ○ For the second quarter Gränges currently expects a similar sales volume as in the first quarter ○ Uncertainty related to the semiconductor shortage wit
Slide 16: Summary – first quarter 2021
Summary – first quarter 2021 ○ Strong market conditions in all regions ○ Record sales volume and operating profit ○ Strong execution on the strategy ○ Raised sustainability ambitions ○ New business area structure ○ Stable outlook for second quarter 16
Slide 17: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 18: Slide 18