Slide 1: Interim report second quarter 2024
Interim report second quarter 2024
Slide 2: Summary Q2
Summary Q2 Stable development with mixed demand picture – Robust demand in mining and aerospace. General engineering and automotive declined, and infrastructure remained subdued, with regional variations – Total order intake growth of 2%, of which organic 3% – Total revenue declined by 3%, of which
Slide 3: Staying ahead through innovation: Manufacturing Copilot
Staying ahead through innovation: Manufacturing Copilot – Sandvik launches AI in the manufacturing software in partnership with Microsoft – Trained on proprietary knowledge, unique to each brand – Available for Cimatron, GibbsCAM and SigmaNEST in September 3
Slide 4: YoY market development
Interim report for the second quarter 2024 YoY market development Mining Engineering Infrastructure Automotive Aerospace Other 51% 20% 10% 7% 4% 8% % of revenue 2023 Percent of revenue Order intake 2023 Y/Y Q2 24 Europe 27% 0% North America 25% -4% Asia 17% 25% Africa and Middle East 12% 15% Austral
Slide 5: Order intake and revenues
Interim report for the second quarter 2024 Order intake and revenues SEK Bn 35 140 Order intake Reported (MSEK) 32,354 30 120 25 100 Revenues 20 80 Reported (MSEK) 15 10 60 40 31,419 Book-to-bill 5 20 0 Q1 Q2 2020 Q3 Q4 Q1 Q2 2021 Q3 Q4 Q1 Q2 2022 Q3 Q4 Q1 Q2 2023 Q3 Q4 Q1 Q2 2024 0 103% Order intak
Slide 6: Growth in order intake and revenues
Interim report for the second quarter 2024 Growth in order intake and revenues Order intake Revenue SEK Bn SEK Bn 50% 160 50% 160 40% 140 40% 140 30% 120 30% 120 20% 100 20% 100 10% 80 10% 80 0% 60 0% 60 -10% 20 -10% 20 -20% 0 -20% 0 -30% -20 -30% -20 -40% -40 -40% -40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Adjusted EBITA development
Interim report for the second quarter 2024 Adjusted EBITA development SEK Bn 8 -7% 22% Adj. EBITA margin: 19.6% 7 20% 6 18% 5 16% 4 14% – Adj. EBITA SEK 6,149 M (6,599) 3 12% – Lower volumes partly off-set by savings and 2 4% cost control 1 2% – Cost inflation was off-set by pricing in the quarter,
Slide 8: Mining and Rock Solutions
Interim report for the second quarter 2024 Order intake and revenues 52% share of Mining and Rock revenues 2023 SEK Bn Solutions 20 150% 16 100% Order intake 12 – Continued solid demand, and the quarter reached the second 8 50% highest order intake ever 4 – Good momentum in automation with double di
Slide 9: Rock Processing Solutions
Interim report for the second quarter 2024 Order intake and revenues 9% share of Rock Processing revenues 2023 SEK Bn Solutions 4 150% 3 100% Order intake 2 – Stable demand in mining. Infrastructure remained weak, although with 50% 1 regional variations – Total order intake declined by 8%, and at fi
Slide 10: Manufacturing and Machining Solutions
Interim report for the second quarter 2024 Order intake and revenues 39% share of Manufacturing and Machining revenues 2023 SEK Bn Solutions 16 150% 12 100% Order intake 8 – Software business grew by double digits, the powder business had a strong 50% development, and cutting tools declined by 1% 4
Slide 11: Cecilia Felton, CFO
Cecilia Felton CFO 11
Slide 12: Financial summary
Interim report for the second quarter 2024 Financial summary MSEK Q2 2023 Q2 2024 Growth OI Rev Order intake 31,660 32,354 Organic 3% -2% Revenues 32,243 31,419 Structure 0% 0% Adjusted EBITA 6,599 6,149 Organic + structure 3% -2% Adjusted EBITA margin 20.5% 19.6% Currency -1% 0% Net financial items
Slide 13: Bridge analysis
Interim report for the second quarter 2024 Bridge analysis Q2 Q2 MSEK 2023 Organic Currency Structure 2024 Revenues 32,243 -775 -138 89 31,419 Adjusted EBITA 6,599 -485 22 13 6,149 Adjusted EBITA margin 20.5% -63% 19.6% Accretion/dilution -1.0% 0.2% 0.0% 13
Slide 14: Good progress on the restructuring programs
Interim report for the second quarter 2024 Good progress on the restructuring programs Group Annualized SMM SMR SRP Total activities run-rate 2022 Program Savings in Q2 97 20 23 - 139 71% Total estimated run-rate savings 540 100 140 5 785 2024 Program Savings in Q2 74 44 18 - 136 44% Total estimated
Slide 15: Net financials
Interim report for the second quarter 2024 Net financials MSEK Q2 2023 Q2 2024 Interest net -415 -397 Pension -25 -24 Bank charges -18 -23 Other financial income and cost 13 -18 Leases IFRS16 -52 -69 Fx and other asset classes -208 -32 Total -704 -563 Total yield cost, R12 4.2% 5.2% 15
Slide 16: Tax rate
Interim report for the first quarter 2024 Tax rate Q2 2023 Q2 2024 – Reported tax impacted by a provision for a Reported 24.9% 30.6% tax audit related to transfer pricing in 2018 Excluding IAC 24.4% 23.9% and 2019 – Normalized tax: In line with guidance for Normalized 24.4% 23.9% 2024 – 23-25% 16
Slide 17: Net working capital
Interim report for the second quarter 2024 Net working capital Net working capital Per BA, % of revenues Sek Bn 40 40% 40% 35 35% 35% 30 30% 30% 25 25% 25% 20 15 20% 20% 10 15% 15% 5 0 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2
Slide 18: Free operating cash flow
Interim report for the second quarter 2024 Free operating cash flow SEK Bn 7 140% MSEK Q2 2023 Q2 2024 6 120% EBITDA 7,185 7,489 5 100% 4 80% Non-cash and other items** -159 -506 EBITDA adj for non-cash 3 60% 7,026 6,984 and other items 2 40% Capex -1,238 -1,110 1 20% NWC -1,210 -1,676 0 0% FOCF 4,5
Slide 19: Net debt
Interim report for the second quarter 2024 Net debt SEK Bn RATIO 60 1.8 Financial net 50 1.5 debt/R12 EBITDA: 40 1.2 30 20 0.9 0.6 1.5 10 0.3 0 0.0 -10 -0.3 – Financial net debt SEK 41 billion -20 -0.6 – Net debt SEK 49 billion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 202
Slide 20: Outcome versus guidance
Interim report for the second quarter 2024 Outcome versus guidance Outcome Q2 Guidance Q2 Underlying currency YoY effect (MSEK) 22 120 Outcome Q1-Q2’24 Q1 Guidance FY24 Capex (BSEK) 2.3 5.0 Interest net (BSEK) -0.8 -1.3 Normalized tax rate (%) 24.0% 23-25% 20
Slide 21: Guidance Q3 and FY 2024
Interim report for the second quarter 2024 Guidance Q3 and FY 2024 Currency effect Given currency rates at the end of June 2024 the effect on operating profit from transaction and translation would be SEK -250 M for Q3 2024 CAPEX (Cash) Estimated to approximately SEK 5.0 Bn for 2024 Interest net Und
Slide 22: Conclusion
Conclusion A good quarter with stable financial performance – Mixed demand picture in the quarter – Solid performance despite continued volume challenges in parts of our business – Good momentum in strategic growth areas Progress in the re-positioning of Sandvik – Important innovations and partnersh
Slide 23: Q&A
Q&A 23
Slide 24: Backup slides
Backup slides 24
Slide 25: Adjusted EBITA bridge, per BA
Interim report for the second quarter 2024 Adjusted EBITA bridge, per BA Q2 Q2 MSEK Organic Currency Structure 2023 2024 Mining & Rock Solutions Revenues 16,755 -434 -78 -92 16,151 Adjusted EBITA 3,621 -326 55 6 3,356 Adjusted EBITA margin 21.6% 20.8% Rock Processing Solutions Revenues 2,872 -156 -1
Slide 26: Loan and duration profile
Interim report for the second quarter 2024 Loan and duration profile Long term: MSEK Amount Duration Bonds MTN 24,345 4.1 years 69% Bank Loans 7,477 6.6 years Short term: Commercial papers 10,137 0.2 years Bonds MTN Bank Loans 3,194 766 0.6 years 0.0 years 31% Total 45,919 3.3 years Committed Credit
Slide 27: Loan maturity profile
Interim report for the second quarter 2024 SEK M Loan maturity profile 12,000 Average interest rate: 10,000 ~3.8% 8,000 6,000 4,000 2,000 - 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 27
Slide 28: Disclaimer statement
Disclaimer statement Some statements herein are forward-looking, and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors for example, the effect of economic conditions, exchange-rate