Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Investor Day (June 2023)
76 slides from Alimak Group Ab's investor day presentation, Jun 14, 2023
Slide 1: Capital Markets Day
Capital Markets Day June 2023
Slide 2: Agenda for the day
Agenda for the day 15.00 Welcome 15.00 Alimak Group – New Heights update 15.25 Group financials 15.40 Sustainability 15.50 Facade Access – Transformation update 16.05 Q&A 16.25 Coffee break and exhibition 16.50 Introduction to Height Safety and Productivity Solutions 17.05 Construction and Industria
Slide 3: Safety is our number 1 priority
Safety is our number 1 priority Emergency exits Fire extinguisher Capital Markets Day 3 June 14, 2023
Slide 4: Alimak Group – New Heights update
Alimak Group – New Heights update Ole Kristian Jødahl, President and CEO Capital Markets Day 4 June 14, 2023
Slide 5: A strong and resilient industrial group with focus on sustainable, accelerated profitable growth
A strong and resilient industrial group with focus on sustainable, accelerated profitable growth Capital Markets Day 5 June 14, 2023
Slide 6: A diversified global industrial company
A diversified global industrial company Capital Markets Day 6 June 14, 2023
Slide 7: Alimak Group 2014-2020
Alimak Group 2014-2020 Alimak Group pre Acquisitions of significant New Heights programme 2017 EBITA margin of lower margin businesses in launched in 2020 >16% 2017 Not delivering on financial To deliver on financial targets targets Capital Markets Day 7 June 14, 2023
Slide 8: New Heights programme
New Heights programme 1 2 3 Establish the base Secure margin improvements Profitable growth 2020 2021 2022-2025 Capital Markets Day 8 June 14, 2023
Slide 9: We have established the base
1 We have established the base § Set an efficient and empowered organisation § Become customer and market oriented § Accelerated product & solution development § Full focus on total asset lifecycle – services and spare parts § People and culture – our most important asset Capital Markets Day 9 June
Slide 10: Secured margin improvements
2 Secured margin improvements R12M EBITA margin by Quarter, %: Division strategies for profitable growth 15.0% – Elevating Construction and Industrial 9.1% – Re-focused Wind division – Launching Facade Access Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 transformation 2021 2022 2023 Capital Markets Day 10 June 14, 20
Slide 11: Profitable growth
3 Profitable growth R12M Order intake by Quarter BSEK 5.6 § Organic growth 4.8 § Acquisitions 3.8 3.8 4.1 4.3 3.7 3.7 3.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 Capital Markets Day 11 June 14, 2023
Slide 12: Acquisitions in 2022 to accelerate profitable growth
Tall Crane § MSEK 130 revenues Acquisitions in § EBITA margin positively 2022 to contributing to Construction § Closing August accelerate Tractel § MSEK + 2000 revenues profitable growth § EBITA margin 20% § Closing November Acquisitions remain an important part of the strategy Capital Markets Day 1
Slide 13: A more diversified and resilient Group with five divisions
A more diversified and resilient Group with five divisions Height Safety Facade Access Construction Industrial Wind & Productivity Solutions 29% service* 16% service* 60% service* 33% service* 17% service* Capital Markets Day * Service share of sales rolling 12 months Q1 23 - aggregated, including T
Slide 14: Driving innovation and product development
Driving innovation and product development Medius 350 Tracrod My Alimak Silo lift SE240L Capital Markets Day 14 June 14, 2023
Slide 15: Attractive market & growth opportunities
Attractive market & Sustainability Health and Safety growth Urbanization Infrastructure investments opportunities Industrialization Regionalization supported by global Total Cost of Ownership Digitalization trends Capital Markets Day 15 June 14, 2023
Slide 16: New financial targets and dividend policy
New financial Revenue growth EBITA margin Leverage ratio 6-10% >18% <2.5x targets Dividend pay-out ratio Dividend policy 40-60% Capital Market Day 16 June 14, 2023
Slide 17: Sustainability targets
Sustainability targets CO2 reduction Employee LTIFR ESG assessment of to 2025 * NPS Injury rate per mn direct material working hours suppliers** 30% >40 <2 >80% Next: moving to science- based targets * Scope 1,2 3, normalized based on turn-over, reduction compared to 2019 Capital Markets Day ** Corr
Slide 18: Group financials
Group financials Sylvain Grange, Chief Financial Officer Capital Markets Day 18 June 14, 2023
Slide 19: Growth accelerated by the acquisition of Tractel
Growth accelerated by the acquisition of Tractel Reported order intake, revenue, and gross margin by quarter, R12M BSEK Order intake 5.6 Strong contribution 5.3 Revenue from Tractel 4.8 Gross margin 4.5 acquisition in Q1-23 4.3 4.1 3.9 4.1 3.8 3.7 3.7 3.6 3.7 3.6 3.8 3.7 3.8 3.8 36.7% Gross margin:
Slide 20: Delivering EBITA growth
Delivering EBITA growth Reported adj. EBITA & reported adj. EBITA margin by quarter, R12M MSEK 797 616 542 High operational 483 495 511 performance has 424 driven profitability 372 improvements 335 Significant EBITA contribution from the Tractel acquisition 15.0% 13.1% 13.6% 11.7% 13.0% 13.0% 12.9%
Slide 21: Overview by division – Opportunities to lift Group profitability
Overview by division – Opportunities to lift Group profitability Share of revenue Adj. EBITA margin Facade Access 31% Facade Access 9.1% Revenue SEK 6,833m Construction 25% Construction 17.5% Adj. EBITA SEK 1,104m HSPS 19% HSPS 19.9% Adj. EBITA margin Industrial 17% Industrial 20.2% 16.2% Wind 8% Wi
Slide 22: Capex light business with strong cash flows
Capex light business with strong cash flows Reported operating cash flow by quarter, R12M Reported capex as % of revenue by quarter, R12M MSEK Investments in tangible & intangible assets / Revenue 670 646 1.9% 632 1.8% 605 1.7% 1.7% 1.7% 1.7% 1.7% 570 573 1.6% 501 456 1.3% 346 Q1-21 Q2-21 Q3-21 Q4-2
Slide 23: Leverage and capital allocation
Leverage and capital allocation Leverage Capital allocation Leverage* by quarter, R12M 5.14 Net debt / EBITDA Investments in product portfolio and operational efficiency 2.87 1.26 1.23 0.82 0.82 0.99 0.55 0.56 Selective M&A Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Continued near-term fo
Slide 24: Synergy estimates still relevant
Synergy estimates still relevant Tractel synergies MSEK 150 Significant 120 commercial 80 synergies Expected cost 60 80 synergies as a result of efficiency improvements in 40 SG&A, supply chain and procurement 70 60 40 Commercial synergies Cost synergies 2024 2025 2026 Capital Markets Day 24 June 14
Slide 25: Tractel highly profitable for a long time
Tractel highly profitable for a long time Legacy Tractel revenue and EBITA margin* MEUR 225 150 75 23% 22% 22% 21% 20% 19% 20% 22% 20% 20% 20% 19% 19% 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Legacy Tractel – Demonstrated history of Alimak Group – Platform for additional ma
Slide 26: Updated financial targets
Updated financial targets 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 coupled with limited
Slide 27: Sustainability
Sustainability Charlotte Brogren, Chief Technology Officer Capital Markets Day 27 June 14, 2023
Slide 28: Sustainability targets
Sustainability targets CO2 reduction Employee LTIFR ESG assessment of to 2025* NPS Injury rate per mn direct material working hours suppliers** 30% >40 <2 >80% Next: moving to science- based targets * Scope 1,2 3, normalized based on turn-over, reduction compared to 2019 Capital Markets Market Day D
Slide 29: Our Sustainability framework
Our Sustainability framework Sustainable Relationships Sustainable Solutions Sustainable Operations - who we are - what we deliver - how we work Capital Markets Day 29 June 14, 2023
Slide 30: Activities since launch of New Heights
Activities since launch of New Heights Sustainable Relationships Sustainable Solutions Sustainable Operations - Diversity - Women lifting women - User safety – BIM, Alicalc, - > 75% green electricity network customer portals - Reduced energy consumption - Succession planning - Life cycle assessments
Slide 31: CO2 progress so far
CO2 progress so far Reported GHG Emissions Scope 3 – completed +30 life cycle analysis Scope 1, 2, 3 (business travel) ton CO2e/MSEK revenue Prioritize activities along the value chain -33%* Facade Access Construction 2.2 1.7 1.7 1.5 Upstream Inst. & Maintenance 2019 2020 2021 2022 Transportation Us
Slide 32: First Alimak Group sustainability week
First Alimak Group sustainability week Capital Markets Day 32 June 14, 2023
Slide 33: Facade Access transformation update
Facade Access transformation update Philippe Gastineau, Senior EVP Facade Access division Capital Markets Day 33 June 14, 2023
Slide 34: The Facade Access Division
The Facade Access Division Revenues rolling 12 months Adj. EBITA margin rolling Service share of sales Q1, MSEK*: 12 months Q1*: rolling 12 months Q1*: 2,127 9.1% 29% High complexity Med. complexity Low complexity Services and parts Capital Markets Day * Aggregated, including Tractel as if part of t
Slide 35: Tractel and Alimak Group Facade Access offerings are complementary
Legacy Alimak Group portfolio: Tractel and Alimak Custom BMU Legacy Tractel portfolio: Group Facade Access offerings are Modular BMU Davits Mobile gantries complementary Standard series BMU Self powered platforms Monorail systems Capital Markets Day 35 June 14, 2023
Slide 36: Facade Access product offerings
Facade Access product offerings Capital Markets Day 36 June 14, 2023
Slide 37: Complementary geographical presence
Complementary geographical presence Legacy Tractel footprint Legacy Alimak Group Facade Access footprint % of revenue % of revenues Americas EMEAI APAC Americas EMEAI APAC 71% 20% 9% 15% 50% 35% Capital Market Day 37 June 14, 2023
Slide 38: Complementary geographical presence
Complementary geographical presence NEW Alimak Group Facade Access footprint % of revenues Americas EMEAI APAC 37% 38% 25% Capital Market Day 38 June 14, 2023
Slide 39: Combined BMU installed base, generating service opportunities
TR: Legacy Tractel AG: Legacy Alimak Group Combined BMU AG EUR 5,500 installed base, TR EUR 1,150 TR NAM AG NAM 2,800 500 generating 220 100 500 AG ASIA TR ASIA 710 165 302 opportunities for TR MEAI 1,000 AG MEAI 500 203 220 services / retrofit / 390 20 modernization projects AG AUS 450 TR AUS 17 TO
Slide 40: Transformation program launched to improve margins
Transformation program launched to improve margins Organization Commercial Operations - Implementation of regional - Brand positioning - Project management management - Channels to market - Make or buy - Dedicated centralized - New tendering strategy - Merging of offices organizations for general -
Slide 41: Height Safety & Productivity Solutions
Height Safety & Productivity Solutions Philippe Gastineau, Senior EVP HSPS division Capital Markets Day 41 June 14, 2023
Slide 42: The Height Safety & Productivity Solutions Division
The Height Safety & Productivity Solutions Division Revenues rolling 12 months Adj. EBITA margin rolling Service share of sales Q1, MSEK*: 12 months Q1*: rolling 12 months Q1*: 1,323 19.9% 17% Height safety Productivity solutions Repairs and spare parts Capital Markets Day * Aggregated, including Tr
Slide 43: A portfolio of strong brands
A portfolio of strong brands Capital Markets Day 43 June 14, 2023
Slide 44: Exposure to many different end markets
Exposure to many Elevator Fire and rescue Energy & Utilities different end markets Construction Light manufacturing Infrastructure Capital Markets Day 44 June 14, 2023
Slide 45: A niche player in the industry
A niche player in the industry Sub-segment Addressed by HSPS addressed by marginally HSPS Individual Protection Collective Protection Height Hand, Head, Eye Protective Noise reduction Safety Fall protection & Face Guardrails Safety nets clothing panels protection Gas & Flame Hearing Respiratory Anti
Slide 46: Most sales volume goes through distribution
HSPS Most sales volume Sales support and training 2/3 of sales goes through Distributors & Rental distribution Innovation, communication, 1/3 of sales lead generation End users Capital Markets Day 46 June 14, 2023
Slide 47: Resilient business
Resilient business Revenues Adj. EBITA margin R12M, MSEK R12M, % 1,323 19.5% 19.2% 19.9% 1,266 18.4% 19.0% 19.0% 1,133 1,179 1,032 1,084 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Capital Markets Day 47 June 14, 2023
Slide 48: Strong focus on Innovation…
Strong focus on Innovation… Number of projects per Product line Gate 0 G1 G2 G3 - Height Safety Products 4 3 11 0 - Height Safety Systems 0 4 3 2 Davitrac Davimast HT Access - Measurement and Control 0 1 2 0 - Lifting + Handling 3 5 1 0 - Access (tirak™ + BSO) 0 1 2 0 Total as of May 2023 7 14 19 2
Slide 49: …fuelling digital marketing & lead generation
…fuelling digital marketing & lead generation Website LinkedIn Email marketing ü Optimized SEO activity to maximize potential ü Micro targeting via paid-for LinkedIn ü Direct email marketing to channel partners and visitor interest advertisement targeted potential customers ü Targeted content adapte
Slide 50: Supporting market trends
Supporting market Safety regulations trends Productivity focus Capital Markets Day 50 June 14, 2023
Slide 51: Sustainability at the core
Sustainability at the core Safe work at heights at core Increase workers productivity Long product life-time - Products to keep people safe - Using electro-mechanical tools - Products designed to last long when working at heights decreasing injuries linked to - Highly repairable, provide physical ef
Slide 52: Focus: growth with sustained EBITA
Focus: growth with sustained EBITA Innovation, 1 2 Synergies 3 Supportive marketing and acquisitions sales effectiveness Capital Markets Day 52 June 14, 2023
Slide 53: Construction portfolio expansion
Construction portfolio expansion David Batson, EVP Construction Division Capital Markets Day 53 June 14, 2023
Slide 54: The Construction Division
The Construction Division Revenues rolling 12 months Adj. EBITA margin rolling Service share of sales Q1, MSEK: 12 months Q1: rolling 12 months Q1: 1,728 17.5% 16% Temporary suspended Construction equipment Rental and used access Services and parts Capital Markets Day 54 June 14, 2023
Slide 55: Market broader than construction
Market broader than construction Construction hoists – also MCWP – provides safe, Transport platforms – Temporary suspended access for infrastructure projects ergonomic access replacing manual labour on – repairs and maintenance of like bridges and tunnels small projects with increased existing buil
Slide 56: Scando 650a – the new generation construction hoist
Scando 650a – the new generation construction hoist Capital Markets Day 56 June 14, 2023
Slide 57: Medius 350 – the new light range construction hoist
Medius 350 – the new light range construction hoist Capital Markets Day 57 June 14, 2023
Slide 58: Scanclimber acquisition
Scanclimber acquisition Complementary product portfolio Increased footprint in: § USA & Canada > 90% > 90% § Eastern Europe of equipment sales in of equipment sales in § Scandinavia Hoists Mast climbers Capital Markets Day 58 June 14, 2023
Slide 59: Temporary Suspended Access
Temporary Suspended Access § Equipment sales and rental § Applications: – New Build Construction – Cleaning – Facade Refurbishment – Facade Inspection – Industrial Maintenance – Chimney Maintenance – Bridge Maintenance – Confined Space Access etc Capital Markets Day 59 June 14, 2023
Slide 60: Delivering synergies
Delivering synergies Commercial synergies Operational synergies - Widening the customer base and - Established centers of excellence for opening up signification cross-selling product development and technical opportunities excellence - Procurement synergies Capital Markets Day 60 June 14, 2023
Slide 61: Profitable growth initiatives
Profitable growth initiatives Expand Expand Broaden our 1 2 3 footprint product offering Parts & Services offerings Capital Markets Day 61 June 14, 2023
Slide 62: Industrial portfolio expansion
Industrial portfolio expansion David Batson, Interim EVP Industrial Division Capital Markets Day 62 June 14, 2023
Slide 63: The Industrial Division
The Industrial Division Revenues rolling 12 months Adj. EBITA margin rolling Service share of sales Q1, MSEK: 12 months Q1: rolling 12 months Q1: 1,214 20.2% 60% Service, repairs and New equipment refurbishments Spare parts Capital Markets Day 63 June 14, 2023
Slide 64: Diversified customer base
Diversified customer base Power Ports Marine Oil & Gas Cement Mining Other heavy industry Logistics Capital Markets Day 64 June 14, 2023
Slide 65: Product launches in 2023
Product launches in 2023 Silo lift SE240L PL warehouse lift SL-Ex from China ME Gangway lift Capital Markets Day 65 June 14, 2023
Slide 66: Delivering profitable growth over time
Order Intake R12M, MSEK 1,177 1,241 1,303 1,337 999 1,091 859 897 939 Delivering Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 profitable growth EBITA margin R12M, % over time 18% 19% 20% 21% 20% 20% 19% 19% 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 Capital Markets Day 66 June 14, 2023
Slide 67: Profitable growth initiatives
Profitable growth initiatives Expand Expand sales Continue to 1 2 3 product organisation drive service portfolio contracts penetration Capital Markets Day 67 June 14, 2023
Slide 68: My Alimak
My Alimak Information Status Alerts Location Documents Statistics Alicalc BIM Gallery Support Training Parts Online Capital Markets Day 68 June 14, 2023
Slide 69: Wind strategic update
Wind strategic update José María Nevot, EVP Wind division Capital Markets Day 69 June 14, 2023
Slide 70: The Wind Division
The Wind Division Revenues rolling 12 months Adj. EBITA margin rolling Service share of sales Q1, MSEK: 12 months Q1: rolling 12 months Q1: 557 14.1% 33% Service lifts Ladders and others Safety Service, training & parts Capital Markets Day 70 June 14, 2023
Slide 71: New Heights implementation
New Heights implementation Order Intake R12M, MSEK § Focus on our core competence SAFE 771 701 617 594 559 593 VERTICAL ACCESS 549 525 514 – Customer intimacy for successful product development (design to cost) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 – Service leverage on added value activities EBITA margin R12M
Slide 72: Growing wind market
Growing wind market New installations outlook 2023-2027 (GW and thousand towers) GW Number of towers Offshore Onshore Thousand towers 180 35 § GW growth of 15% CAGR 157 160 150 30 § Tower capacity increasing 140 135 36 125 32 leading to flat tower 115 26 25 120 development 18 95 18 20 100 94 7 § Lif
Slide 73: Profitable growth
Profitable growth 1 Grow by increasing market shares in lifts – New generation of sustainable lifts to lower the TCO through digitalization – New generation of lifts according to Chinese market requirements 2 Grow in safety for the wind sector – Wire-based Fall Protection System – Leverage Tractel r
Slide 74: Focus on reducing CO2 emissions
Focus on reducing CO2 emissions Life Cycle Assessment Optimized maintenance and increased lifetime § Shark lift produced in Avanti Spain Reduction of CO2-equivalent emissions of § Installed at a 3,7 MW turbine onshore new generation lifts during lifetime 25 § Lifetime 20 years 20 % of lifetime CO2 e
Slide 75: Concluding remarks
Concluding remarks Ole Kristian Jødahl, President and CEO Capital Markets Day 75 June 14, 2023
Slide 76: A strong and resilient industrial group with focus on sustainable, accelerated profitable growth
A strong and resilient industrial group with focus on sustainable, accelerated profitable growth We have – the organisation – empowered, proven – the market position – leading, global, installed base – the global trends – fundamental growth We are – fixing the historical issues – strong operational