Slide 1: Third Quarter 2024
THIRD QUARTER 2024 29 October, 2024 Q3 2024
Slide 2: Presenters
PRESENTERS CEO Krister Blomgren CFO Marcus Asplund Tel +46 70 529 92 65 Tel +46 72 601 37 17 E-mail: krister.blomgren@engcon.com E-mail: marcus.asplund@engcon.com Q3 2024 2
Slide 3: Q3 Business Highlights
Q3 BUSINESS HIGHLIGHTS • Strong EBIT margin of 22% (14,1%) from high gross margin 46% (40%) and a scalable business model. • Order intake and net sales driven by continued strong performance in Europe with organic order intake increase of 39% and organic net sales increase of 42%. • engcon winner of
Slide 4: Q3 Figures in Brief
Q3 FIGURES IN BRIEF 8% 8% 46% 22% 31% Organic net Organic order Gross EBIT Return on capital sales intake margin margin employed Q3 2024 4
Slide 5: Continued Stable Development
CONTINUED STABLE DEVELOPMENT Order intake and net sales development per quarter, MSEK Key comments Order intake Net sales • Net sales increased 5%, organic 8%, negative currency effect of 9 MSEK. 691 • Order intake increased 6%, organic 8%, negative currency 553 541 508 effect of 9 MSEK. 416 414 433
Slide 6: Nordics
NORDICS Q3 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake declined organic 200 167 188 1%. 150 156 159 143 141 150 131 126 100 113 • Net sales decreased organic 50 4%. 0 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 • Soft demand continues in the Strömsund Vasa Order intake Net sales
Slide 7: Europe
EUROPE Q3 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 200 177 168 173 177 176 185 39%. 156 150 129 132 125 100 • Net sales increased organic 50 42%. 0 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 • Established organization and Tewkesbury Order intake Net sales g
Slide 8: Americas
AMERICAS Q3 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake decreased organic 100 29%. 81 80 61 62 58 60 60 57 41 46 42 41 • Net sales decreased organic 40 24%. 20 0 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 • High interest rates, cooler Order intake Net sales economy and uncertai
Slide 9: Asia-Oceania
ASIA-OCEANIA Q3 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake decreased organic 50 6%. 38 40 40 37 31 30 27 28 28 27 24 27 • Net sales decreased organic Chungcheongnam-do 20 1%. 10 0 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 • Low volume in the region Order intake Net sales resu
Slide 10: Financial Development
Se över grävmaskinsmärken! FINANCIAL DEVELOPMENT Q3 2024 10
Slide 11: EBIT Margin Above Financial Target
EBIT MARGIN ABOVE FINANCIAL TARGET EBIT and EBIT margin per quarter Key comments EBIT, MSEK EBIT margin, % • EBIT increased 65% to 91 (55) 65% MSEK. • EBIT margin of 22.0% (14.1%). 198 • EBIT margin above the financial target of >20%. 121 104 104 91 82 55 60 25.0 28.7 19 22.4 20.5 18.2 22.0 14.1 15.
Slide 12: Overview of Costs and EBIT
OVERVIEW OF COSTS AND EBIT 2024 2023 2024 2023 MSEK Q3 Q3 R12 FY Key comments Net sales 412 391 1,564 1,898 • Stable gross margin COGS -222 -234 -882 -1,096 • EBIT margin of 22.0% (14.1%) Gross margin 46.1% 40.2% 43.6% 42.3% • and Price16.1% in R12. increases in January and Selling expenses -65 -69
Slide 13: Cash Flow
CASH FLOW Cash flow and net working capital overview, MSEK Operating cash flow per quarter, MSEK 277 2024 2023 2023 MSEK Q3 Q3 FY Cash flow before changes in working 108 29 275 144 capital 108 96 Inventories 333 324 302 63 56 Accounts recievables 297 270 193 32 5 -44 Other receivables 21 9 27 2022 2
Slide 14: ROCE Level
ROCE LEVEL Return on capital employed overview Average capital employed and ROCE MSEK 2020 2021 2022 2023 R12 Average capital employed, MSEK ROCE, % EBT 218 341 415 365 232 900 100 Interest expense 2 2 8 16 17 773 793 800 750 717 80 Capital employed, beginning 543 699 735 765 792 700 621 of period C
Slide 15: Financial Targets
FINANCIAL TARGETS Growth Profitability Capital efficiency Capital structure Exceed the growth in existing Have an EBIT margin in Continue to achieve an Maintain a strong capital market through organic excess of 20 per cent, industry-leading capital structure supporting further growth. measured over
Slide 16: Summary and Update
SUMMARY AND UPDATE • Strong EBIT margin from high gross margin. • Scalable and capital efficient business model Ska bytas mot Bauma-bild! enable profitability above our financial target despite lower turnover. • European region continues to serve as the growth engine, weaker development in the Nordi
Slide 17: Looking Ahead
LOOKING AHEAD "In the short term, we expect stable development with continued growth. In the fourth quarter, we anticipate insignificant pre-purchase effects, as only marginal price increases have been announced. For 2025, we foresee increased demand in the Nordic region." Q3 2024 17
Slide 18: For more information visit www.engcongroup.com
For more information visit www.engcongroup.com