Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Q3 2024 Earnings Presentation
25 slides from Alimak Group Ab's earnings presentation, Oct 29, 2024
Slide 1: Alimak Group
Alimak Group 29 October 2024 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 sustainable vertical access and working at height solutions Supported by global trends ▪ 3,000 employees, sales in +120 countries, presence in 28 countries Leading market position in ▪ Decentr
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 Investment in sales & marketing, product & Revenue growth service development and M&A 6-10% Operational efficiency, synergies, and Facade EBITA margin Access improvement >18% Strong focus on working capital improvements Leverage ratio and limited capex need <2.5
Slide 5: 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% As of April 2024, we are in “commitment” status for Science Based Targets * Scope 1,2 3, normalized based on turn-over, reduction compared
Slide 6: Solid performance Q3
Business update – Q1 FOR INTERNAL USE ONLY Solid performance Q3 ▪ Adjusted EBITA at 17.8% ‒ another significant step toward our financial target of an adjusted EBITA margin above 18% ▪ Transformation program in Facade Access runs according to plan, and we reached an EBITA margin of 11.5% ▪ Still a c
Slide 7: Group quarterly summary Q3
Group quarterly summary Q3 Order intake & revenue ▪ Order intake was MSEK 1,592, -5% (-2% at constant MSEK MSEK currency) 2 400 8 000 7 000 ‒ Strong performance in the Facade Access, 2 100 1 800 6 000 5 000 Industrial and Wind divisions, while the Construction 1 500 1 200 4 000 and HSPS divisions re
Slide 8: Service order intake and revenue Q3
Service order intake and revenue Q3 ▪ Service is a key component of the New Heights value creation Share of order intake Share of revenue programme 60% 63% ‒ Order intake increased 2% (6% at constant currency) to 40% 37% MSEK 638 (625) Equipment Service Equipment Service ‒ Revenue increased 1% (4% a
Slide 9: Facade Access Q3
Facade Access Q3 ▪ Order intake was MSEK 453, +20% (+25% at constant currency) Order intake & revenue ▪ ‒ Significant Order intake was infrastructure MSEK 512, project +41 order won in % (+24% North from MSEK MSEK 600 2 500 America acquisitions. +18% organically) 500 2 000 ‒ Good An all-time highord
Slide 10: Facade Access – business update Q3
Facade Access – business update Q3 ▪ New significant infrastructure project ‒ Large bridge project order won, following the Houston bridge project initiated earlier this year ▪ Continued success for the retrofit, refurbishment and replacement (RRR) strategy ‒ The Shard in London and Radio France in
Slide 11: Construction Q3
Construction Q3 ▪ Order intake was MSEK 350, -28% (-27% at constant Order intake & revenue currency) MSEK MSEK 600 2 500 ‒ Compared to an all-time high quarter last year 500 2 000 400 ‒ New equipment and rental orders in North America and 300 1 500 APAC remained stable, while Europe continued to be
Slide 12: Construction – business update Q3
Construction – business update Q3 ▪ Market conditions remained challenging – Market conditions remained challenging as inflationary pressure in the construction supply chain has stifled investments – As inflation eases and interest rates fall, market conditions are expected to improve ▪ Mast climbin
Slide 13: Height Safety & Productivity Solutions Q3
Height Safety & Productivity Solutions Q3 Order intake & revenue ▪ Order intake was MSEK 312, -11% (-8% at constant MSEK MSEK currency) 500 1 600 1 400 ‒ Distribution business continued to develop well and 400 1 200 300 1 000 grow 800 200 600 ‒ Softer order intake for elevator customers, after a 100
Slide 14: HSPS – business update Q3
HSPS – business update Q3 ▪ Strengthening proximity to end users – Developing a specific Personal Protection Equipment Kit with one of our largest elevator customers – Digital marketing to reach out to new potential users of our Measure & Control solutions ▪ Building on our technology leadership – L
Slide 15: Industrial Q3
Industrial Q3 Order intake & revenue ▪ Order intake was MSEK 342, +4% (+8% at constant MSEK MSEK currency) 500 1 600 ‒ Solid development for new equipment with North 1 400 400 1 200 America as the main driver 300 1 000 800 200 600 ‒ Steady aftermarket development 100 400 200 0 0 ▪ Revenue was MSEK
Slide 16: Industrial – business update Q3
Industrial – business update Q3 ▪ Power and Infrastructure segment had strongest growth for new equipment – US, Europe and China secured important projects in these segments ▪ Increased orders of service operation vessels to offshore wind turbines, after a softer start of the year – Additional tr
Slide 17: Wind Q3
Wind Q3 Order intake & revenue ▪ Order intake was MSEK 161, +6% (+11% at constant MSEK MSEK 250 800 currency) 700 200 600 ‒ Solid performance in new equipment across all regions, 150 500 400 especially in China 100 300 200 50 ‒ Continued progress in aftermarket 100 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ▪ R
Slide 18: Wind – business update Q3
Wind – business update Q3 ▪ Challenging market – A slow market in China is pushing local OEMs to increase their sales efforts in other regions – Decreased losses for western OEMs compared to previous years – A stalled US market due to the upcoming election ▪ Continued innovation – Barracuda XL (wire
Slide 19: Profit & loss summary Q3
Profit & loss summary Q3 ▪ EBITA adj. – Growing by 11%, despite almost flat revenue ▪ IAC – Net MSEK 36 negative difference vs Q3 2023 ▪ Financial net – Decrease mainly due to lower debt level ▪ Taxation – Tax rate for the quarter of 22.4% (25.2), mostly reflecting country mix ▪ Net result for the q
Slide 20: Gross margin and operating expenses Q3
Gross margin and operating expenses Q3 Gross margin ▪ To be added ▪ Gross margin was 40.0% (38.8) % 48 ‒ Continued significant margin improvement in the 40 Facade Access division 32 ‒ Industrial, Wind and HSPS improved to a lesser 24 16 extent 8 ‒ Construction margin flat 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 21: Result for the period and EPS Q3
Result for the period and EPS Q3 ▪ Result for the period was MSEK 155 (141), +10% Result for the period and EPS ▪ Excluding IAC (Items Affecting Comparability), result MSEK SEK for the period was MSEK 157 (107), +47% 180 2.50 160 140 2.00 ▪ Earnings per share was SEK 1.46 (1.32) 120 1.50 100 ‒ Adjus
Slide 22: Operating cash flow Q3
Operating cash flow Q3 ▪ Cash flow from operations MSEK 265 (390) Operating cash flow, MSEK ‒ Good performance from most divisions MSEK MSEK ‒ High comparable with Q3 2023 500 1 400 ‒ Cash focus will continue 450 1 200 400 350 1 000 300 800 250 200 600 150 400 100 200 50 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 23: Net debt and return on capital employed Q3
Net debt and return on capital employed Q3 Net debt, MSEK and leverage ▪ Net debt down by MSEK 157 ‒ Impact of operating cash-flows MSEK X 6 000 12 ▪ Net debt/EBITDA 2.12 (2.53) 5 000 10 ‒ Well in line with our financial target of being below 2.5x 4 000 8 3 000 6 ▪ Focus on operating cash flow will
Slide 24: Summary Q3
Summary Q3 ▪ We are on track to deliver on our financial and sustainability targets ‒ New margin level despite challenging market conditions ▪ New Heights strategy continues to serve us well – Customer obsession, Technology leadership, Operational efficiency and People – Effective, decentralized org
Slide 25: Q&A
Q&A