Slide 1: Ferronordic Second quarter 2024
Ferronordic Second quarter 2024
Slide 2: Q2 2024: Continued strength in the US
Q2 2024: Continued strength in the US Key Group and segment items: • 62% revenue growth driven by the addition of the US operations • Operating result of SEK -4m on strong contribution from US operations • Net profit decreased to SEK -81m, partly as a result of exchange rate losses • Net debt increa
Slide 3: Q2 2024 Continued strength in the US
Q2 2024 Continued strength in the US Our US operations continued to perform • The US operations continued to perform well. well • Total Q2 2024 revenue was SEK 707m, with an operating profit of SEK 51m and an operating margin of 7.3%. • In the first five months of 2024, the US market for constructio
Slide 4: Q2 2024 Group summary financials
Q2 2024 Group summary financials SEK 1,095m Group revenue +62% to SEK 1,095m (+62%) revenue • US revenue contribution of SEK 707m • German revenue -44% to SEK 332m (-44% in EUR) • CA revenue -29% to SEK 56m (-29% in local currency) Group operating profit increased to SEK -4m SEK -4m • US operating p
Slide 5: Q2 2024 US operational highlights
Q2 2024 In Q2 2024, Rudd sold US operational highlights 70 new units, 25 used units and 10 units were • The total market for construction equipment in North America is historically converted to sales approx. 52,000 to 56,000 units. Ferronordic’s area covers approx. 8% of the from rental total North
Slide 6: Q2 2024 Germany operational highlights
Q2 2024 Our new truck sales in Germany operational highlights units decreased by • Based on registrations of new trucks, the total German market for heavy 65% to 101 units in Q2 trucks increased by 11% in Q2 2024 and 3% H1 20241 2024 • New trucks registered in Ferronordic’s sales area increased by 2
Slide 7: Germany efficiency program
Germany efficiency program • In Q4 2023, Ferronordic launched a program to make our organisation in We have reduced the number of Germany more efficient and resilient regions in our sales area from • One key objective is to increase Ferronordic’s absorption level; how much of four to two… fixed cost
Slide 8: Q2 2024 CA operational highlights
Q2 2024 Despite a growing CA operational highlights economy, the market stays challenging • Despite a strong economy and supportive government investments, the Kazakh market for construction equipment stays challenging • In Q2 2024, the market is estimated to have grown by 9% but complex tender stru
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 • Aschaffenburg - Operations closed in May 2024 Hanover Peine Barleben Coswig Dessau Northeim Nordhausen Leipzig Kassel Görschen Bautzen Dresden Bad Hersfeld Haiger Fulda Limburg Simmern Frankfurt Aschaffenburg Kirn Bingen Bergstrasse (21) Ferronordic outlets in Germany as of May 2024
Slide 11: Kazakh network
Kazakh network Astana Ust-Kamenogorsk Aktobe Karaganda Atyrau Aschaffenburg Almaty Shymkent 11 (7) Ferronordic outlets in Kazakhstan as of May 2024
Slide 12: Economic development
Economic development US economy • US grew 2.8% in Q2 2024 • +2.8% GDP in Q2 20241 and +2.1% GDP expected in 20242 • Core PCE inflation at +2.6% in June 20243 • Effective Fed Funds Rate stands at 5.33%4 • Germany German economy • -0.1% GDP in Q2 20245 declined -0.1% in Q2 2024 • 0.2% expected in 2024
Slide 13: Q2 2024 Income statement
Q2 2024 Income statement % Q2 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2024 Q2 2024 Q2 2024 Q2 2024 change • Total revenue up by +62% to SEK 1,095 m SEK MM CA Germany US Group CA Germany US Group Group o 65% US, 30% Germany and 5% CA FX (SEK/KZT, SEK/EUR, 42,70 11.35 42,68 11,29 10,53 o 52% equipment and tru
Slide 14: Q2 2024 Segment reporting
Q2 2024 Segment reporting Unallocated US Germany CA Total Group costs Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 SEK m (or as stated) External revenue 707 332 595 56 80 1,095 674 Equipment and truck sales 356 172 428 46 68 574 492 Aftermarket sales 275 144 144 9
Slide 15: Q2 2024 Balance sheet
Q2 2024 Balance sheet SEK MM Q2 2023 Q1 2024 US Q2 2024 • PP&E increased Y-o-Y mainly due to the Q2 2024 US business acquisition and addition of FX SEK/EUR 11.79 11.53 11.39 rental fleet in the US but also due to FX FX SEK/USD - 10.66 10.61 10.61 effects FX SEK/KZT 42.05 41.77 44.42 Property, plant
Slide 16: Group EBIT Y-o-Y SEKm
Group EBIT Y-o-Y 45 30 -29 51 SEKm 15 65 -8 -8 0 -4 -10 EBIT Q4 19 EBIT Q4 20 -15 EBIT Q2 2023 US Germany CA HQ EBIT Q2 2024 16
Slide 17: Group net debt development Q2 2024
Group net debt development Q2 2024 1,700 11 206 1,500 -308 SEKm 1,671 182 65 1,542 1,300 37 EBIT Q4 19 EBIT Q4 20 1,100 Net debt BoP Operational CF Net Interest CAPEX Non-cash debt Other Net debt EoP before interest increase (US) 17
Slide 18: Group NAV Q2 2024
Group NAV Q2 2024 5,000 370 1,051 4,000 952 SEKm 3,000 1,225 1,806 2,000 65 394 1,466 1,000 1,627 658 EBIT Q4 19 EBIT Q4 20 208 0 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: Outlook
Outlook We are optimistic about our expansion into the US and the opportunities we see there. The US is the world's second-largest market for construction equipment. Demand is supported by a dynamic economy, a significant need to upgrade the country’s infrastructure and extensive federal and state p
Slide 20: IN FERRONORDIC
IN FERRONORDIC