Slide 1: Ferronordic First quarter 2024
Ferronordic First quarter 2024
Slide 2: Q1 2024: A good start in the US
Q1 2024: A good start in the US Key Group and segment items: • First full quarter with consolidation of Ferronordic’s US operations • 86% revenue growth driven by the US • Operating result increased to SEK 21m on strong contribution from US operations • Net profit increased to SEK 70m, partly as a r
Slide 3: Q1 2024: A good start in the US
Q1 2024 A good start in the US Our expansion to the US has started • Our expansion to the US has started well. During Q1 2024, revenue was SEK 699m, with an operating profit of SEK 60m and an operating margin of 8.6% well • The US market for larger construction equipment (GPE) was 8% lower Y-o-Y but
Slide 4: Q1 2024 Group summary financials
Q1 2024 Group summary financials SEK 1,172m Group revenue +86% to SEK 1,172m (+86%) revenue • US revenue contribution of SEK 699m • German revenue -20% to SEK 439m (-20% in EUR) • CA revenue -60% to SEK 34m (-60% in local currency) Group operating profit increased to SEK 21m SEK 21m • US operating p
Slide 5: Q1 2024 US operational highlights
Q1 2024 In Q1 2024, Rudd sold US operational highlights 81 new units, 23 used units and 23 units were • The total market for construction equipment in North America is historically converted to sales approx. 52,000 to 56,000 units. Ferronordic’s area covers approx. 8% of the from rental total North
Slide 6: Q1 2024 Germany operational highlights
Q1 2024 Our new truck sales in Germany operational highlights units decreased by • Based on registrations of new trucks, the total German market for heavy 36% to 157 units in Q1 trucks decreased by 5% in Q1 20241 2024 • New trucks registered in Ferronordic’s sales area decreased by 2% and represente
Slide 7: Germany efficiency program
Germany efficiency program • In Q4 2023, Ferronordic launched a program to make our organisation in We have reduced the number of Germany more efficient and resilient regions in our sales area from • One key objective is to increase Ferronordic’s absorption level; how much of four to two… fixed cost
Slide 8: Q1 2024 CA operational highlights
Q1 2024 Despite a growing CA operational highlights economy, the market declined • The Kazakh market for construction equipment is supported by Kazakhstan’s role as a regional hub, commodity prices and big infrastructure projects • Despite a strong economy and supportive government investments, the
Slide 9: US network
US network • In November 2023 Ferronordic acquired 100% of the shares in the Rudd Equipment Company PA IL IN OH WV • Rudd is one of the largest distributors of MO KY Volvo CE as well as other strong brands such as Hitachi, Sandvik, Link-Belt Cranes and Bergmann • The company’s sales area for Volvo C
Slide 10: German network
German network Hanover Peine Barleben Coswig Dessau Northeim Nordhausen Leipzig Kassel Görschen Bautzen Dresden Bad Hersfeld Haiger Fulda Limburg Simmern Frankfurt Aschaffenburg Kirn Bingen Bergstrasse (22) Ferronordic outlets in Germany as of May 2024 10
Slide 11: Kazakh network
Kazakh network Astana Ust-Kamenogorsk Aktobe Karaganda Atyrau Aschaffenburg Almaty Shymkent 11 (7) Ferronordic outlets in Kazakhstan as of May 2024
Slide 12: Economic development
Economic development US economy • US grew 3.0% in Q1 2024 • +3.0% GDP in Q1 20241 and +2.1% GDP expected in 20242 • Core PCE inflation at +2.8% in March 20243 • Effective Fed Funds Rate stands at 5.33%4 • Germany German economy • -0.2% GDP in Q1 20245 declined -0.2% in Q1 2024 • 0.2% expected in 202
Slide 13: Q1 2024 Income statement
Q1 2024 Income statement % Q1 2023 Q1 2023 Q1 2023 Q1 2023 Q1 2024 Q1 2024 Q1 2024 Q1 2024 SEK MM change • Total revenue up by +86% to SEK 1,172m CA Germany US Group CA Germany US Group Group o 60% US, 37% Germany and 3% CA FX (SEK/KZT, SEK/EUR, SEK/USD) 43.54 11.20 43.38 11.28 10.39 o 61% equipment
Slide 14: Q1 2024 Segment reporting
Q1 2024 Segment reporting Unallocated US Germany CA Total Group costs Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 SEK m (or as stated) External revenue 699 439 548 34 83 1,172 631 Equipment and truck sales 439 261 375 19 68 719 443 Aftermarket sales 207 162 149 15
Slide 15: Q1 2024 Balance sheet
Q1 2024 Balance sheet US • PP&E increased Y-o-Y mainly due to the SEK MM Q1 2023 Q4 2023 Q1 2024 US business acquisition and addition of Q1 2024 FX SEK/EUR 11.20 11.48 11.28 rental fleet in the US but also due to FX FX SEK/USD - 10.69 10.39 10.39 effects FX SEK/KZT 43.54 43.73 43.38 • In CA, net wor
Slide 16: Group EBIT Y-o-Y
Group EBIT Y-o-Y 50 40 -16 30 60 -11 2 SEKm 20 10 65 21 0 -14 -10 EBIT Q4 19 EBIT Q4 20 -20 EBIT Q1 2023 US Germany CA HQ EBIT Q1 2024 16
Slide 17: Group net debt development Q1 2024
Group net debt development Q1 2024 1,750 29 -8 43 -109 3 1,500 236 SEKm 65 1,542 1,250 1,349 EBIT Q4 19 EBIT Q4 20 1,000 Net debt BoP CAPEX Income tax paid Interest paid WC FX (Cash / Debt) Other Net debt EoP 17
Slide 18: Group NAV Q1 2024
Group NAV Q1 2024 5,000 388 1,283 1,127 4,000 3,000 973 SEKm 1,681 2,000 414 1,687 65 1,000 1,698 685 0 217 EBIT Q4 19 EBIT Q4 20 Cash and Trade and Inventory Property, US Rental Other Trade and Borrowings Lease and NAV equivalents other plant and fleet assets other other receivables equipment payab
Slide 19: Outlook
Outlook We are optimistic about our expansion into the US and the opportunities there. The US is the world's second-largest market for construction equipment. Demand is supported by a dynamic economy and extensive support programs for infrastructure investment. The German economy appears weak, and t
Slide 20: IN FERRONORDIC
IN FERRONORDIC