Slide 1: Ferronordic Fourth quarter 2024
Ferronordic Fourth quarter 2024
Slide 2: Q4 2024: Continued strength in the US
Q4 2024: Continued strength in the US Key Group and segment items: • Strong performance in US and better positioned in Germany and Kazakhstan • 43% revenue increase driven by the addition and growth in the US operations • Operating result increased to SEK 2m (SEK 19m excluding effects of impairment
Slide 3: Q4 2024 US strength continues
Q4 2024 US strength continues Continued strong performance in the US • Continued strong performance in the US with good margin development and cash generation • US total revenue was SEK 720m with an operating profit of SEK 65m, implying a strong operating margin of 9.0% • US machines sales overall g
Slide 4: Q4 2024 Group summary financials
Q4 2024 Group summary financials SEK 1,312m Group revenue +43% to SEK 1,312m (+43%) revenue • US revenue +134% to SEK 720m (+137% in USD) • German revenue +1% to SEK 559m (+1% in EUR) • CA revenue -38% to SEK 33m (-37% in KZT) SEK 2m Group operating profit increased to SEK 2m (SEK 19m excluding impa
Slide 5: Q4 2024 US operational highlights
Q4 2024 In Q4 2024, Ferronordic US operational highlights sold 65 new units, 22 used units and 53 units • In Q4 2024, the market for larger construction equipment (GPE segment) in were converted to North America was flat (+1%) compared to Q4 2023 sales from rental • In Ferronordic’s sales area, the
Slide 6: Q4 2024 Germany operational highlights
Q4 2024 Our new truck sales in Germany operational highlights units increased by 90% to 317 units in Q4 2024 • The total German market for heavy trucks declined by 14%1 in Q4 2024 and by 13% in 2024 • New trucks registered in Ferronordic’s sales area decreased by 8% and represented approx. 19% of th
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: Q4 2024 CA operational highlights
Q4 2024 Sales of new machines in units CA operational highlights remained unchanged Y-o-Y • In Q4 2024, the market for larger construction equipment (GPE segment) in at 15 Kazakhstan grew by 78% from a low base in Q4 2023. In 2024, the market increased by 35% compared to 2023. • Ferronordic’s sales
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 February 2025 10
Slide 11: Kazakh network
Kazakh network Astana Aktobe Karaganda Aschaffenburg Almaty 11 (4) Ferronordic outlets in Kazakhstan as of February 2025
Slide 12: Economic development
Economic development US economy • US grew 2.8% in 2024 • +2.8% GDP in 20241 and +2.1% GDP expected in 20252 • Core PCE inflation at +2.8% in December 20243 • Effective Fed Funds Rate decreased from 5.13% to 4.48% in Q4 2024 and to 4.33 in January 20254 German economy • Germany down 0.2% in 2024 • -0
Slide 13: Q4 2024 Income statement
Q4 2024 Income statement Q4 2023 Q4 2023 Q4 2023 Q4 2023 Q4 2024 Q4 2024 Q4 2024 Q4 2024 % • Total revenue up by +43% to SEK 1,312 m change SEK MM o 55% US, 43% Germany and 2% CA CA Germany US Group CA Germany US Group Group o 63% equipment and trucks, 30% FX (SEK/KZT, SEK/EUR, 43.73 11.48 10.69 44.
Slide 14: Q4 2024 Balance sheet
Q4 2024 Balance sheet US • PP&E increased Y-o-Y mainly due to SEK MM Q4 2023 Q3 2024 Q4 2024 addition of rental fleet in the US and e-rental Q4 2024 FX SEK/EUR 11.10 11.30 11.49 fleet in Germany FX SEK/USD FX SEK/KZT 10.04 45.28 10.09 47.37 11.00 11.00 47.58 • In CA, net working capital increased Q-
Slide 15: Group PPE
Group PPE Group 2024.12.31, SEK m US Germany CA Total % assets Property, plant and equipment 1,600 711 5 0 2,317 100% Real Estate 227 236 0 0 464 20% Rental Fleet 1,264 336 0 0 1,599 69% Right-of-use assets 19 45 0 0 64 3% Other PPE 90 94 5 0 190 8% Group Group 2023.12.31, SEK m US Germany CA Total
Slide 16: Group EBIT Y-o-Y SEKm
Group EBIT Y-o-Y 20 0 2 8 -4 -4 21 -20 SEKm -62 -40 40 65 -60 EBIT Q4 19 EBIT Q4 20 -80 EBIT Q4 2023 US Germany CA HQ EBIT Q4 2024 16
Slide 17: Group net debt development Q4 2024
Group net debt development Q4 2024 2,000 8 54 123 SEKm 1,800 1,978 65 1,792 1,600 EBIT Q4 19 EBIT Q4 20 Net debt BoP Non-cash debt increase (US) Non-cash debt increase Other Net debt EoP (Germany) 17
Slide 18: Group NAV Q4 2024
Group NAV Q4 2024 5,000 380 794 4,000 1,053 3,000 2,276 SEKm 1,264 2,000 1,253 65 372 1,000 629 1,499 363 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 payab
Slide 19: Financial objectives and dividend policy
Financial objectives and dividend policy KPI Objective Q4 2024 LTM Double the 20241 revenue in current 1.04 x Revenue markets over 5 years (in SEK) 2 x 6M 2024 revenue Operating margin Above 6% 0.4% Below 3 times Net debt / EBITDA 5.2 x (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 business opportunities we see. Demand is supported by a dynamic economy and a significant need to upgrade the country’s infrastructure. While the new administration has paused many government initiatives, federal and state infrastruct
Slide 21: IN FERRONORDIC
IN FERRONORDIC