Slide 1: Fourth Quarter 2024
FOURTH QUARTER 2024 21 February, 2025 Q4 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 Q4 2024 2
Slide 3: Change the World of Digging
CHANGE THE WORLD OF DIGGING FY 2012 FY 2023 FY 2024 Asia-Oceania Asia-Oceania Asia-Oceania Europe 2% 8% 8% 10% Americas Americas 15% 12% Nordics Nordics Nordics 38% 88% 43% Europe Europe 34% 42% (Americas <0,5%) Net sales split per region Q4 2024 3
Slide 4: Q4 Business Highlights
Q4 BUSINESS HIGHLIGHTS • Highest order intake in eight consecutive quarters with contributions from all regions. o Strong order intake in the Nordic region with increasing signs of optimism. • Net sales increase organic from the low level in Q4 2023. • Changes in the management structure in the Amer
Slide 5: Q4 Figures in Brief
Q4 FIGURES IN BRIEF 27% 22% 43% 16% 38% Organic net Organic order Gross EBIT Return on capital sales intake margin margin employed Q4 2024 5
Slide 6: Strong Order Intake in All Regions
STRONG ORDER INTAKE IN ALL REGIONS Order intake and net sales development per quarter, MSEK Key comments Order intake Net sales • Net sales increased 27%, organic 27%, positive currency effect of 3 MSEK. 691 • Order intake increase 22%, organic 22%, positive currency 508 506 effect of 3 MSEK. 414 43
Slide 7: Nordics
NORDICS Q4 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 250 34%. 188 192 200 167 156 159 150 143 113 126 141 132 • Net sales increased organic 100 17%. 50 0 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 • Strong increase in order intake Strömsund Vasa Order intake
Slide 8: Europe
EUROPE Q4 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 250 204 14%. 200 177 168 156 173 177 176 185 172 150 125 • Net sales increased organic 100 36%. 50 0 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 • Continued momentum in the Tewkesbury Order intake Net sales
Slide 9: Americas
AMERICAS Q4 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 80 67 17%. 62 58 60 57 53 60 • Net sales increased organic 46 42 41 41 40 20 28%. 0 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 • Continued uncertainty in the Order intake Net sales region, potential impac
Slide 10: Asia-Oceania
ASIA-OCEANIA Q4 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 50 43 16%. 38 40 40 37 35 31 30 28 27 24 27 • Net sales increased organic Chungcheongnam-do 20 26%. 10 0 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 • Highest order intake for the Order intake Net sale
Slide 11: Financial Development
Se över grävmaskinsmärken! FINANCIAL DEVELOPMENT Q4 2024 11
Slide 12: EBIT Development
EBIT DEVELOPMENT EBIT and EBIT margin per quarter Key comments EBIT, MSEK EBIT margin, % • EBIT increased 231% to 63 231% (19) MSEK coming from higher volumes. • EBIT margin of 16.0% (6.2). 198 104 91 82 60 63 55 28.7 19 20.5 15.2 18.2 22.0 16.0 14.1 6.2 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-
Slide 13: Overview of Costs and EBIT
OVERVIEW OF COSTS AND EBIT 2024 2023 2024 2023 MSEK Q4 Q4 FY FY Key comments Net sales 393 308 1,649 1,898 COGS -225 -184 -923 -1,096 • Stable gross margin • EBIT margin of 16.0% (6.2) Gross margin 42.7% 40.3% 44.0% 42.3% • and Price17.9% FY. in January and increases Selling expenses -59 -62 -262 -2
Slide 14: Cash Flow
CASH FLOW Cash flow and net working capital overview, MSEK Operating cash flow per quarter, MSEK 277 2024 2023 2024 2023 MSEK Q4 Q4 FY FY Cash flow before changes in 100 29 277 275 144 working capital 108 96 108 Inventories 339 302 339 302 56 Accounts receivables 227 193 227 193 32 5 -44 Other recei
Slide 15: ROCE Level
ROCE LEVEL Return on capital employed overview Average capital employed and ROCE MSEK 2020 2021 2022 2023 2024 Average capital employed, MSEK ROCE, % EBT 218 341 415 365 295 900 100 817 Interest expense 2 2 8 16 18 800 773 750 717 80 Capital employed, beginning 543 699 735 765 781 700 621 of period
Slide 16: Financial Targets FY 2024
FINANCIAL TARGETS FY 2024 Capital Capital Dividend Growth Profitability efficiency structure policy Have an EBIT margin in Continue to achieve an Maintain a strong capital Pay approximately 50% Exceed the growth in industry-leading capital structure supporting further excess of 20%, measured of net
Slide 17: Summary & Update
SUMMARY & UPDATE • Strong increase in order intake in our larger regions. o Trend break in the Nordic region. Ska bytas mot Bauma-bild! o Europe shows growth despite an uncertain market and declining excavator sales. • Strong belief in the smaller regions and continued investments for increased grow
Slide 18: Looking Ahead
LOOKING AHEAD "Market conditions are still largely unpredictable, in part due to the geopolitical situation and potential tariffs in the US.” “As previously announced, we expect a stable trend with continued growth. We foresee an increase from low levels in the Nordic region and that growth in Europ
Slide 19: For more information visit www.engcongroup.com
For more information visit www.engcongroup.com