Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Q2 2024 Earnings Presentation
25 slides from Alimak Group Ab's earnings presentation, Jul 18, 2024
Slide 1: Alimak Group
Alimak Group 18 July 2024 Ole Kristian Jødahl, CEO Sylvain Grange, CFO
Slide 2: Alimak Group – a diversified global industrial company
Alimak Group – a diversified global industrial company Highlights Drivers for success ▪ Leading provider of sustainable vertical access and working at height solutions Supported by global trends ▪ 3,000 employees, sales in +120 countries, presence in 28 countries Leading market position in ▪ Decentr
Slide 3: New Heights programme – our strategic roadmap
New Heights programme – our strategic roadmap 1 2 3 Establish the base Secure margin improvements Profitable growth 2020 2021 2022-2025 3
Slide 4: Financial targets and dividend policy
Financial targets and dividend policy Investment in sales & marketing, product & Revenue growth service development and M&A 6-10% Operational efficiency, synergies, and Facade EBITA margin Access improvement >18% Strong focus on working capital improvements Leverage ratio and limited capex need <2.5
Slide 5: Sustainability targets
Sustainability targets CO2 reduction Employee LTIFR ESG assessment of to 2025 * NPS Injury rate per mn direct material working hours suppliers** 30% >40 <2 >80% As of April 2024, we are in “commitment” status for Science Based Targets * Scope 1,2 3, normalized based on turn-over, reduction compared
Slide 6: Another margin step up Q2
Business update – Q1 FOR INTERNAL USE ONLY Another margin step up Q2 ▪ Adjusted EBITA reached for the first time a margin of 17.0% ▪ An all-time high in value and margin and another significant step towards reaching our financial target of an adjusted EBITA margin of 18% ▪ Transformation program in
Slide 7: Group quarterly summary Q2
Group quarterly summary Q2 Order intake & revenue ▪ Order intake was MSEK 1,789, 0% (0% organically) MSEK MSEK ‒ The industrial and Wind divisions performed 2 400 8 000 2 100 7 000 strongly, while the Facade Access division reported 1 800 6 000 lower order intake 1 500 5 000 4 000 1 200 900 3 000 ▪
Slide 8: Service order intake and revenue Q2
Service order intake and revenue Q2 ▪ Service is a key component of the New Heights value creation Share of order intake Share of revenue programme 59 63 % ‒ Creates resilience % 41 37 % % ‒ Positive order intake developments in all divisions Equipment Service Equipment Service ‒ We continue to acti
Slide 9: Facade Access Q2
Facade Access Q2 ▪ Order intake was MSEK 364, -16% (-17% organically) ‒ Continued strong headwinds in North America for new Order intake & revenue ▪ equipment Order orders intake was due to512, MSEK high +41 interest rates and % (+24% the from MSEK MSEK 600 2 500 upcoming US election acquisitions. +
Slide 10: Facade Access – business update Q2
Facade Access – business update Q2 ▪ Footprint optimization – Closing of assembly site in Mammendorf continues according to plan ‒ Manntech brand spare parts are now sourced or manufactured in Madrid ▪ Leveraging our capabilities into infrastructure projects – Innovative solutions for infrastructure
Slide 11: Construction Q2
Construction Q2 ▪ Order intake was MSEK 454, -5% (-5% organically) Order intake & revenue ‒ Europe remained soft for new equipment MSEK MSEK 600 2 500 500 ‒ Strong new equipment orders in the rest of the world 400 2 000 1 500 300 ‒ Positive contribution from used equipment 200 1 000 100 500 ‒ Contin
Slide 12: Construction – business update Q2
Construction – business update Q2 ▪ Rental project in Hardau Hochhäuser, Zurich – 16 units of mast climbing work platforms – Refurbishment project, which is a growing sustainability trend instead of demolishing and new build – Estimated to run for two years ▪ Used mast climbing work platform busines
Slide 13: Height Safety & Productivity Solutions Q2
Height Safety & Productivity Solutions Q2 Order intake & revenue ▪ Order intake was MSEK 352, +1% (0% organically) MSEK MSEK ‒ Our increased focus on Lifting & Handling 500 1 600 1 400 distributors is paying off 400 1 200 300 1 000 ‒ Stable development in all other segments 200 800 600 400 100 ▪ Rev
Slide 14: Height Safety & Productivity Solutions – business update Q2
Height Safety & Productivity Solutions – business update Q2 ▪ Getting closer to our end users in focused verticals – IFAT (underground networks) Munich Trade Show – Continuing improvement of communication, tools and organization to better address our focused verticals: underground networks, confined
Slide 15: Industrial Q2
Industrial Q2 Order intake & revenue ▪ Order intake was MSEK 442, +19% (+18% organically) MSEK MSEK ‒ Record high level 500 1 600 1 400 ‒ Strong equipment and refurbishment order intake 400 1 200 1 000 300 across most regions through a diverse set of market 200 800 600 segments 100 400 200 ‒ Parts a
Slide 16: Industrial – business update Q2
Industrial – business update Q2 ▪ Focus on geographical expansion continues – Investment in resources in France, Poland, and Latin America showing positive results ▪ Key account approach in port segment paying off – Strong growth for ship-to-shore crane lifts, both new and refurbished ▪ Strong after
Slide 17: Wind Q2
Wind Q2 Order intake & revenue ▪ Order intake was MSEK 202, +8% (+8% organically) MSEK MSEK ‒ Increased orders in new equipment 250 800 700 ‒ Increased backlog in APAC and Americas 200 600 150 500 400 ▪ Revenue was MSEK 194, +3% (+3% organically) 100 300 200 50 – Strong sales of new equipment in Chi
Slide 18: Wind – business update Q2
Wind – business update Q2 ▪ In a competitive market, being close to our customers is proving effective – The global market for new turbines is currently stable, with growth in APAC and some slight decline in Europe and America – By being close to customers, in combination with proactive product deve
Slide 19: Profit & loss summary Q2
Profit & loss summary Q2 ▪ EBITA adj. – Growing more than revenue in the quarter despite some cost inflation ▪ Financial net – Negative currency effects in the quarter; H1 decrease due to lower debt level ▪ Taxation – Tax rate for the quarter of 23.1% (27.3), reflecting country mix ▪ Net result for
Slide 20: Gross margin and operating expenses Q2
Gross margin and operating expenses Q2 Gross margin ▪ To be added ▪ Gross margin was 40.9% (39.8) % 48 ‒ Continued significant margin improvement in the 40 Facade Access division 32 ‒ Wind and HSPS improved more marginally 24 16 ‒ Construction margin slightly down (under-utilization 8 0 in Poland) a
Slide 21: Result for the period and EPS Q2
Result for the period and EPS Q2 ▪ Result for the period was MSEK 143 (130), +11% Result for the period and EPS ▪ Excluding IAC (Items Affecting Comparability), result MSEK SEK for the period was MSEK 154 (136), +13% 160 2.50 140 2.00 ▪ Earnings per share was SEK 1.35 (1.21) 120 100 1.50 ‒ Adjusted
Slide 22: Operating cash flow Q2
Operating cash flow Q2 ▪ Cash flow from operations MSEK 164 (206) Operating cash flow, MSEK ‒ Heterogenous quarterly performance amongst divisions (temporary working capital increase in MSEK MSEK Construction and Facade Access divisions) 500 1 400 450 1 200 ‒ Cash focus will continue 400 350 1 000 3
Slide 23: Net debt and return on capital employed Q2
Net debt and return on capital employed Q2 Net debt, MSEK and leverage ▪ Net debt remains stable ‒ Impact of dividend payment in the quarter MSEK X 6 000 12 ▪ Net debt/EBITDA 2.29 (3.36) 5 000 10 ‒ Well in line with our financial target of being below 2.5x 4 000 8 3 000 6 ▪ Focus on operating cash f
Slide 24: Summary Q2
Summary Q2 ▪ We are on track to deliver on our financial and sustainability targets ‒ New margin level despite challenging market conditions ▪ New Heights strategy continues to serve us well – Customer obsession, Technology leadership, Operational efficiency and People – Effective, decentralized org
Slide 25: Q&A
Q&A