Slide 1: Second Quarter 2024
SECOND QUARTER 2024 19 July, 2024
Slide 2: Presenters
PRESENTERS CEO Krister Blomgren CFO Jens Blom Tel +46 70 529 92 65 Tel +46 76 147 45 77 E-mail: krister.blomgren@engcon.com E-mail: jens.blom@engcon.com Q2 2024 2
Slide 3: engcon – Change the World of Digging
ENGCON – CHANGE THE WORLD OF DIGGING 2023 in brief Strömsund, 1 898 - 6% Sweden Net sales MSEK Net sales growth* Niepruszewo, 376 20% Poland EBIT MSEK EBIT margin % 16 406 Markets Employees Net sales split per region Asia-Oceania 8% Americas 15% Nordics Europe 43% 34% * Organic net sales growth Q2 2
Slide 4: Q2 Business Highlights
Q2 BUSINESS HIGHLIGHTS • Continued recovery with solid profitability. – Strong gross margin level mainly impacted by favorable market and product mix. • Increased order intake in all regions. – Continued strong trend in Europe. • High activity during exhibition season. – Intermat, Paris – Swedish Ma
Slide 5: Q2 Figures in Brief
Q2 FIGURES IN BRIEF -12% 26% 45% 18% 28% Organic net Organic order Gross EBIT Return on capital sales intake margin margin employed Q2 2024 5
Slide 6: Increased Order Intake in All Regions
INCREASED ORDER INTAKE IN ALL REGIONS Order intake and net sales development per quarter, MSEK Key comments Order intake Net sales • Order intake increased 27%, organic 26%, currency effect of 3 MSEK. 691 • Net sales decreased 11%, organic 12%, positive currency 553 519 534 541 508 effect of 3 MSEK.
Slide 7: Nordics
NORDICS Q2 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 250 212 30%. 188 200 167 150 156 159 150 128 131 143 113 • Net sales decreased organic 100 11%. 50 0 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 • Increasing demand from lower Strömsund Vasa Order intake Ne
Slide 8: Europe
EUROPE Q2 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 200 168 177 168 173 177 28%. 156 150 134 129 132 125 100 • Net sales increased organic 50 4%. 0 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 • Strong performance from all Tewkesbury Order intake Net sales maj
Slide 9: Asia-Oceania
ASIA-OCEANIA Q2 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 50 47%. 38 40 40 37 37 31 30 21 27 28 28 27 • Net sales decreased organic Chungcheongnam-do 20 27%. 10 0 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 • Continued strong trend in Order intake Net sales A
Slide 10: Americas
AMERICAS Q2 2024, Order intake and net sales, MSEK Key comments Per quarter • Order intake increased organic 100 91 5%. 81 80 61 62 58 • Net sales decreased organic 58 57 60 46 42 41 40 38%. 20 0 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 • Stabilization at lower levels in Order intake Net sales the USA. • High
Slide 11: Financial Development
Se över grävmaskinsmärken! FINANCIAL DEVELOPMENT Q2 2024 11
Slide 12: EBIT Margin Continues to Improve
EBIT MARGIN CONTINUES TO IMPROVE EBIT and EBIT margin per quarter Key comments EBIT, MSEK EBIT margin, % • EBIT decreased 21% to 82 -21% (104) MSEK. • EBIT margin of 18.2% (20.5%). 198 • EBIT margin is increasing towards the financial target of 20%. 121 99 104 104 82 55 60 25.0 28.7 19 18.5 22.4 20.
Slide 13: Overview of Costs and EBIT
OVERVIEW OF COSTS AND EBIT 2024 2023 2024 2023 MSEK Q2 Q2 R12 FY Key comments Net sales 450 508 1,543 1,898 • Stable gross margin COGS -248 -302 -894 -1,096 • EBIT margin of 18.2% (20.5%) Gross margin 44.9% 40.6% 42.1% 42.3% • and Price14.0% in R12. increases in January and Selling expenses -73 -64
Slide 14: Cash Flow
CASH FLOW Cash flow and net working capital overview, MSEK Operating cash flow per quarter, MSEK 277 2024 2023 2023 MSEK Q2 Q2 FY Cash flow before changes in working 63 110 275 capital 108 96 Inventories 347 396 302 63 56 Accounts recievables 282 286 193 32 5 -44 Other receivables 51 16 27 2022 2022
Slide 15: 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 218 341 415 365 205 900 100 Interest expense 2 2 8 16 16 773 795 800 750 717 80 Capital employed, beginning 543 699 735 765 773 700 621 of period C
Slide 16: 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 17: Summary and Update
SUMMARY AND UPDATE • Continued recovery and solid profitability closer to financial target. • Increased order intake in all regions and strong Ska bytas mot Bauma-bild! performance in Europe. • In the ongoing patent dispute, engcon appealed in April 2022, the decision to grant the patent in question
Slide 18: Looking Ahead
LOOKING AHEAD “We expect a gradual recovery during the second half of 2024. For the Nordic region we are anticipating an increase during 2025.” Q2 2024 18
Slide 19: For more information visit www.engcongroup.com
For more information visit www.engcongroup.com