Slide 1: Ferronordic Third quarter 2024
Ferronordic Third quarter 2024
Slide 2: Q3 2024: Strong performance in the US
Q3 2024: Strong performance in the US Key Group and segment items: • 77% revenue growth driven by the addition of the US operations • Operating result increased to SEK 2m and SEK 32m excluding one-off effect of impairment of inventory in Germany • Net debt of SEK 1,792m after the acquisition of the
Slide 3: Q3 2024 Strong performance in the US
Q3 2024 Strong performance in the US Our US operations continued to perform • The US operations continued to perform well. well • Total revenue was SEK 686m and the operating profit was SEK 53m, implying an operating margin of 7.7% • Lower machine sales in units but higher revenue than in 2Q 2024 du
Slide 4: Q3 2024 Group summary financials
Q3 2024 Group summary financials SEK 1,141m Group revenue +77% to SEK 1,141m (+77%) revenue • US revenue contribution of SEK 686m • German revenue -35% to SEK 372m (-33% in EUR) • CA revenue +19% to SEK 82m (+24% in local currency) SEK 2m Group operating profit increased to SEK 2m (SEK 32m excluding
Slide 5: Q3 2024 US operational highlights
Q3 2024 In Q3 2024, Rudd sold US operational highlights 61 new units, 10 used units and 36 units were • The total market for construction equipment in North America is historically converted to sales approx. 52,000 to 56,000 units from rental • Ferronordic’s area covers approx. 8% of the total North
Slide 6: Q3 2024 Germany operational highlights
Q3 2024 Our new truck sales in Germany operational highlights units decreased by 60% to 96 units in Q3 • The total German market for heavy trucks declined by 40% 1 in Q3 2024 2024 • New trucks registered in Ferronordic’s sales area decreased by 47% and represented approx. 17% of the total German mar
Slide 7: Germany efficiency program
Germany efficiency program We have reduced the number of • In Q4 2023, Ferronordic launched a program to make our organisation in regions in our sales area from Germany more efficient and resilient • One key objective is to increase Ferronordic’s absorption level; how much of four to two… fixed cost
Slide 8: Q3 2024 CA operational highlights
Q3 2024 Despite a growing CA operational highlights economy, the market stays challenging • Despite a strong economy and supportive government investments, the market for construction equipment remains challenging • The structure of tenders, competition from Chinese equipment and lack of customer fu
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 Frankfurt Kirn Bingen Bergstrasse (20) Ferronordic outlets in Germany as of November 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 November 2024
Slide 12: Economic development
Economic development US economy • US grew 2.8% in Q3 2024 • +2.8% GDP in Q3 20241 and +2.0% GDP expected in 20242 • Core PCE inflation at +2.7% in September 20243 • Effective Fed Funds Rate decreased from 5.33% to 5.13% in September 2024 and to 4.83 in October 20244 German economy • Germany grew 0.2
Slide 13: Q3 2024 Income statement
Q3 2024 Income statement Q3 2023 Q3 2023 Q3 2023 Q3 2023 Q3 2024 Q3 2024 Q3 2024 Q3 2024 % • Total revenue up by +77% to SEK 1,141m change SEK MM o 60% US, 33% Germany and 7% CA CA Germany US Group CA Germany US Group Group o 52% equipment and trucks, 39% FX (SEK/KZT, SEK/EUR, SEK/USD) 42.10 11.76 4
Slide 14: Q3 2024 Segment reporting
Q3 2024 Segment reporting Unallocated US Germany CA Total Group costs Q3 Q3 Q3 Q3 Q3 Q3 Q3 1Q3 Q3 Q3 SEK m (or as stated) 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 External revenue 686 - 372 574 82 69 1,141 643 Equipment and truck sales 336 - 186 396 73 54 594 449 Aftermarket sales 272 - 168
Slide 15: Q3 2024 Balance sheet
Q3 2024 Balance sheet US • PP&E increased Y-o-Y mainly due to the SEK MM Q3 2023 Q2 2024 Q3 2024 Q3 2024 US business acquisition and addition of FX SEK/EUR 11.49 11.39 11.30 rental fleet in the US but also due to FX FX SEK/USD - 10.61 10.09 10.09 effects FX SEK/KZT 43.84 44.42 47.37 • In CA, net wor
Slide 16: Group EBIT Y-o-Y SEKm
Group EBIT Y-o-Y 30 15 53 -24 SEKm 2 -2 0 2 -4 65 -15 -28 EBIT Q4 19 EBIT Q4 20 -30 EBIT Q3 2023 US Germany CA HQ EBIT Q3 2024 16
Slide 17: Group net debt development Q3 2024
Group net debt development Q3 2024 1,900 109 1,700 SEKm 1,500 441 1,792 466 1,671 65 1,300 37 EBIT Q4 19 EBIT Q4 20 1,100 Net debt BoP Operational CF Net Interest Non-cash debt CAPEX Net debt EoP before interest increase 17
Slide 18: Group NAV Q3 2024
Group NAV Q3 2024 5,000 362 724 4,000 941 3,000 2,182 SEKm 1,224 2,000 1,363 65 372 1,000 1,483 509 360 0 EBIT Q4 19 EBIT Q4 20 Cash and Trade and Inventory US Rental Property, Other assets Trade and Borrowings Lease and NAV equivalents other fleet plant and other other receivables equipment payable
Slide 19: Financial objectives and dividend policy
Financial objectives and dividend policy KPI Objective Q3 2024 LTM Double the 20241 revenue in current 1.05 x Revenue markets over 5 years (in SEK) 2 x 6M 2024 revenue Operating margin Above 6% -0.1% Below 3 times Net debt2 / EBITDA 4.8x (over a business cycle) The ambition is to pay at least 50% of
Slide 20: Outlook
Outlook We are optimistic about our expansion into the US and the opportunities we see there. Demand is supported by a dynamic economy, a significant need to upgrade the country’s infrastructure and extensive federal and state programs for infrastructure investment. These programs should support dem
Slide 21: IN FERRONORDIC
IN FERRONORDIC