Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Q3 2023 Earnings Presentation
27 slides from Alimak Group Ab's earnings presentation, Oct 24, 2023
Slide 1: Alimak Group Q3 2023
Alimak Group Q3 2023, 24 October 2023 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 premium vertical access and working at height solutions Supported by global trends ▪ 3,000 employees, sales in +120 countries, presence in 28 countries ▪ Decentralised organisation with 5 cust
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 Market growth, product development, cross- Revenue growth selling, and continued M&A 6-10% Continued operational efficiency, Tractel EBITA margin synergies, and Facade Access improvements >18% Strong focus on working capital improvements Leverage ratio and limit
Slide 5: New heights for profit and cash flow Q3
Business update – Q1 FOR INTERNAL USE ONLY New heights for profit and cash flow Q3 ▪ Positive momentum and another solid quarter, despite an overall challenging macro environment ▪ Adjusted EBITA-margin of 16.1% (13.7%) ‒ Aggregated EBITA increased by 7%* ▪ Outstanding cash flow from operations ‒ Im
Slide 6: Group quarterly summary Q3
Group quarterly summary Q3 Order intake & Revenue by Quarters Order intake & Revenue by R12M ▪ Order intake was MSEK 1,678, +55% (+55% from acquisitions. -4% MSEK MSEK organically) 2 200 1 870 7 000 6 134 6 726 2 000 1 782 – Strong organic growth in 1 678 1 800 6 000 5 601 1 600 1 396 Construction a
Slide 7: Facade Access Q3
Facade Access Q3 ▪ Order intake was MSEK 376, +9% (+55% from acquisitions. -48% organically) Order intake & Revenue by Quarters Order intake & Revenue by R12M – Service continues to contribute MSEK MSEK positively 550 493 2 000 1 617 1 666 – Impact of higher interest rates 500 1 800 1 635 433 450 1
Slide 8: Facade Access – business update Q3
Facade Access – business update Q3 ▪ Transformation program well under way – Organization 100% implemented, commercial 90%, operations work in progress ▪ Innovation on Integrated Design Services (upstream engineering design services offered to architects and general contractors) ▪ New web site to be
Slide 9: Facade Access – new projects Q3
Facade Access – new projects Q3 ▪ Sky Towers, Dolmen City, Karachi, Pakistan – 35-storeys twin towers (existing buildings) – 2 Manntech Type 6 BMUs will be added to the existing 2 BMUs to meet the client requirements of improving the cleaning cycles ▪ Medical Properties Trust, Atlanta, USA – Equipme
Slide 10: Construction Q3
Construction Q3 ▪ Order intake was MSEK 489, +65% Order intake & Revenue by Quarters Order intake & Revenue by R12M (+26% from acquisitions. 36% MSEK organically) MSEK 550 2 000 1 928 494 489 1 900 469 476 1 735 – Strong rental and new 500 450 1 800 1 700 1 613 1 600 equipment order intake 400 1 500
Slide 11: Construction – business update Q3
Construction – business update Q3 ▪ Significant order from UK and US for construction hoists and transport platforms with Sunbelt Rentals ▪ High order backlog ▪ Continued weak market in residential construction ▪ We continue to exploit investments in the infrastructure, energy and utilities sectors
Slide 12: Construction – new services launch Q3
Construction – new services launch Q3 ALICALC – Advanced online tool for calculating forces to enhance safety: ‒ Calculate reaction forces ‒ Saving time ‒ Enhancing safety ‒ Access available via ’’My Alimak’’ ‒ Producing calculation reports for customers and project managers 12
Slide 13: Height Safety and Productivity Solutions Q3
Height Safety and Productivity Solutions Q3 ▪ Order intake was MSEK 351 Order intake & Revenue by Quarters Order intake & Revenue by R12M – All major regions performing MSEK MSEK 1 400 1 161 better than last year 500 1 200 350 350 351 – Strong development in the 400 1 000 811 300 800 elevators, cons
Slide 14: Height Safety and Productivity Solutions – business update Q3
Height Safety and Productivity Solutions – business update Q3 ▪ Increasing focus and investment on product development, marketing and sales: – Preparing for geographical expansion in early 2024 – Increased web presence and lead generation – Several new products being launched before year end ▪ Cost
Slide 15: Height Safety and Productivity Solutions – business update Q3
Height Safety and Productivity Solutions – business update Q3 More focus on innovation, product development and sales addressing specific customer segments ▪ Fire and Rescue – Dedicated webpage – Promising results after 8 months in both sales and number of new customers ▪ Elevators – Dedicated resou
Slide 16: Industrial Q3
Industrial Q3 ▪ Order intake was MSEK 328, +2% (-1% Order intake & Revenue by Quarters Order intake & Revenue by R12M organically) MSEK MSEK – Continued strong development in 400 372 373 1 800 service 1 600 1 376 1 382 350 328 1 303 1 337 322 – Strong activity in Europe and APAC 309 1 400 1 241 300
Slide 17: Industrial – business update Q3
Industrial – business update Q3 ▪ Jens Holmberg – new Executive Vice President ‒ Strong industrial background ‒ Extensive manufacturing experience ▪ Strong quarter for the marine segment in North and Central Europe with big orders for offshore gangway systems ▪ Further successes to reinforce our pre
Slide 18: Wind Q3
Wind Q3 ▪ Order intake was MSEK 152, +24% (+16% Order intake & Revenue by Quarters Order intake & Revenue by R12M organically) MSEK – Strong impact from strategy MSEK 220 208 800 665 deployment 200 187 700 593 635 – Robust increase in equipment and 180 600 525 514 services in all regions, led by Eur
Slide 19: Wind – business update Q3
Wind – business update Q3 ▪ Market momentum continues to be attractive ▪ Focus on being the customers’ preferred partner and proactive product and services development, is continuing to deliver results ▪ Initiatives deployed in Q3 according to plan: – New e-learning module launched – Release of the
Slide 20: Financial summary Q3
Financial summary Q3 YTD YTD MSEK Q3 2023 Q3 2022 D% 2023 2022 D% Order intake 1 678 1 086 55 5 330 3 388 57 Organic order growth -4 -5 Revenue 1 730 1 095 58 5 259 3 109 69 Organic revenue growth 1 5 EBITA adj 279 150 86 862 398 117 EBITA adj % 16.1 13.7 +2.4 pp 16.4 12.8 +3.6 pp EBITA 312 118 166
Slide 21: Earnings summary Q3
Earnings summary Q3 ▪ EBITA adj. – Margin improved vs. last year, mainly due to increased revenues, MSEK Q3 2023 Q3 2022 DMSEK operational improvements and EBITA adj 279 150 129 contribution from the Tractel Items affecting acquisition comparability 34 -32 66 – Gross margin kept on a high level EBIT
Slide 22: Result for the period and EPS Q3
Result for the period and EPS Q3 ▪ Result for the period was MSEK 141 (77) Result for the period and EPS MSEK SEK ▪ Earnings per share was SEK 1.32 (1.08) 160 1,81 2,00 1,72 140 1,80 1,60 120 1,21 1,08 1,32 1,40 100 1,20 80 1,00 60 0,80 0,60 40 0,40 20 0,20 77 130 124 130 141 0 0,00 Q3-22 Q4-22 Q1-2
Slide 23: Cash flow Q3
Cash flow Q3 ▪ Cash flow from operations MSEK 390 (134) Operating cash flow, MSEK by quarter – Strong cash focus is bearing fruit – Impact of significant working capital reduction MSEK 450 390 400 350 293 300 250 206 200 134 150 108 100 50 0 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 23
Slide 24: Net debt Q3
Net debt Q3 ▪ Net debt – Impacted by outstanding cash flow Net debt, MSEK and leverage, by quarter generation ▪ Leverage down to 2.53 in Q3, 2.47 when factoring R12 months of Tractel EBITDA MSEK 8 000 10 ▪ Focus on operating cash flow will continue 8,00 8 6 000 ▪ Capital allocation priorities: 3,72
Slide 25: Balance sheet Q3
Balance sheet Q3 Balance sheet ▪ Improved balance sheet structure Amounts in MSEK 30 Sep 2023 30 Sep 2022 31 Dec 2022 – Working capital down in the quarter Goodwill Other intangible assets 6 100 2 692 2 717 699 5 950 2 734 despite quasi-stable revenue versus Tangible assets Financial and other non-c
Slide 26: Summary Q3
Summary Q3 ▪ Continued positive development showing the strength of the New Heights programme ▪ 2022 acquisitions successfully integrated ▪ Aggregated adj. EBITA year-to-date increase of 15% ▪ Outstanding cash flow from operations ▪ Deleveraging to net debt/EBITDA of 2.53 (2.47, incl R12 months Trac
Slide 27: Q&A
Q&A