Ferronordic Ab · OMXSTO:FNM
Ferronordic Ab — Q2 2023 Earnings Presentation
20 slides from Ferronordic Ab's earnings presentation, 2023
Slide 1: Ferronordic Second quarter 2023
Ferronordic Second quarter 2023
Slide 2: Continued focus forward
Continued focus forward Group • 68% revenue increase on strong growth in both operating segments • Operating result improved to SEK -10m and operating margin to -1.5% • Ferronordic continues to look for new market opportunities Germany • New truck sales in units increased by 33%, in line with a mark
Slide 3: Q2 2023 Focus forward
Q2 2023 Second quarter with a Focus forward positive operating result in Germany • Focus on Germany, Kazakhstan and on Ferronordic's next growth opportunities • In Germany, we continued to increase sales of both trucks and aftermarket and had our second quarter with a positive operating result • We
Slide 4: Group summary financials
Q2 2023 Group summary financials SEK 674m Group revenue +68% to SEK 674m (+68%) revenue • German revenue +58% to SEK 595m (+46% in EUR) • Truck sales +81% (+67% in EUR), aftermarket sales +30% (+20%) and other sales -16% (-23%) • CIS revenue +202% (+185% in local currency) to SEK 80m SEK -10m • Equi
Slide 5: Germany operational highlights
Q2 2023 Our new truck sales in Germany operational highlights units increased by 33% • Based on registrations of new trucks, the total German market for to 267 units in Q2 2023 heavy trucks increased by 30% in Q2 20231 • Tractors grew by 42% and rigids by 13% • The market grew mainly as supply impro
Slide 6: CIS operational highlights
Q2 2023 404% growth CIS operational highlights in equipment sales (376% in local currency) in Q2 2023 • The Kazakh market is supported by Kazakhstan’s growing role as a regional hub, big infrastructure projects and strong commodity prices • Excluding Chinese wheel loaders, the Kazakh market for cons
Slide 7: Business development
Business development Germany Looking at new markets and business opportunities • In the quarter, we hosted an opening ceremony at our purpose-built service and sales hub in Hanover • Ferronordic continues to work closely with partners and customers to promote electric trucks and develop sustainable
Slide 8: German network expansion
German network expansion • Fulda - Transaction closed in January 2021 • Limburg - Transaction closed in April 2021 • Nordhausen - Transaction closed in June 2021 Hanover • Bergstrasse - Transaction closed in October 2021 Peine Barleben Coswig • Bingen, Kirn and Simmern -Transaction closed in Dessau
Slide 9: Kazakhstan network
Kazakhstan network Astana Ust-Kamenogorsk Aktobe Karaganda Atyrau Aschaffenburg Almaty Shymkent (7) Ferronordic outlets in Kazakhstan as of August 2023 9
Slide 10: Economic development
Economic development Germany’s economy • Germany -0.6% in Q2 2023 • +0.1% GDP in Q1 2023 and -0.6% GDP in Q2 20231 • -0.1% GDP expected in 20232 • +1.1% GDP expected in 20242 Inflation reached 6.2% Y-o-Y in • Inflation rate at +7.9% in 2022 and +6.2% in July 20233 July 2023 • Kazakhstan • +3.2% GDP
Slide 11: Income statement
Q2 2023 Income statement Q2 2022 Q2 2022 Q2 2022 Q2 2023 Q2 2023 Q2 2023 % change • Total revenue of SEK 674m SEK MM o 88% Germany and 12% CIS CIS Germany Group CIS Germany Group Group o 70% equipment and trucks, 26% FX (SEK/KZT, EUR/SEK) 45.16 10.47 42.63 11.35 aftermarket and 4% other New units so
Slide 12: Segment reporting
Q2 2023 Segment reporting Unallocated Germany CIS Group costs1 Total Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 SEK m (or as stated) 2023 2022 2023 2022 2023 2022 2023 2022 External revenue 595 375 80 26 674 402 Equipment and truck sales 428 237 64 13 492 250 Aftermarket sales 144 111 16 14 160 125 Other revenue 23 28
Slide 13: Germany: Trend in operating result and margin
Germany: Trend in operating result and margin 10 5% 5 5 2 0 0.8% 0% 0.3% -0.4% -2 -1.4% -5 -1.8% -5 -7 -10 -5% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Operating profit (SEK m) Operating margin (%) 13
Slide 14: Kazakhstan: Trend in operating result and margin
Kazakhstan: Trend in operating result and margin 10 15% 7 7 9% 10% 9% 9% 8% 5 5 4 6% 5% 2 0 0% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Operating profit (SEK m) Operating margin (%) 14
Slide 15: Balance sheet
Q2 2023 Balance sheet SEK MM Q2 2022 Q1 2023 Q2 2023 • PP&E decreased Y-o-Y mainly due to the disposal of Russian subsidiaries FX (SEK/KZT, EUR/SEK) 45.89, 10.68 43.08, 11.28 42.05, 11.79 • In CIS, net working capital increased Q-o-Q from 17% to 32% of LTM revenue Property, plant and equipment 1,301
Slide 16: Group net cash development Q2 2023
Group net cash development Q2 2023 -109 600 681 -8 -102 46 SEKm 31 539 65 400 Net cash EoP Dividends CAPEX FX (cash) Other Net cash BoP Working capital decrease EBIT Q4 19 EBIT Q4 20 16
Slide 17: Group NAV Q2 2023
SEKm 0 1,000 3,000 4,000 2,000 Cash and equivalents 1,127 EBIT Q4 19 Trade and other 272 receivables Inventory 718 Group NAV Q2 2023 Property, plant and 660 equipment Other assets 174 Trade and other payables 509 Borrowings 507 Lease and other liabilities 112 65 EBIT Q4 20 NAV 1,822 17
Slide 18: Outlook
Outlook The German market remains firm. Constraints in the value chain have eased and the market has grown on increased supply to pent-up demand. However, we also see growing uncertainty about the economy. Higher funding costs and inflation make customers more cautious about placing orders for futur
Slide 19: Continued focus forward
Continued focus forward Group • 68% revenue increase on strong growth in both operating segments • Operating result improved to SEK -10m and operating margin to -1.5% • Ferronordic continues to look for new market opportunities Germany • New truck sales in units increased by 33%, in line with a mark
Slide 20: IN FERRONORDIC
IN FERRONORDIC