Slide 1: Interim report third quarter 2023
Interim report third quarter 2023
Slide 2: Summary Q3
Summary Q3 Mixed demand picture – Moderating volumes in general engineering and infrastructure. Positive aerospace sentiment, underlying demand in mining held up well. 4% – Total order intake declined by 1%. At fixed exchange rates, orders declined by 4% and organically by 7% – Total revenue growth
Slide 3: Staying ahead through innovation: UJ443E heavy jaw crusher
Staying ahead through innovation: UJ443E heavy jaw crusher – A fully electric heavy jaw crusher from Sandvik Rock Processing Solutions – Lower running costs and service intervals, as well as lower emissions and noise levels – Reduces fuel consumption by up to 30% while increasing throughput by up to
Slide 4: YoY market development
Interim report for the third quarter 2023 YoY market development % of revenue 2022 Mining Engineering Automotive Energy Infrastructure Aerospace Other 48% 22% 7% 2% 11% 3% 7% Percent of revenue Order intake 2022 Y/Y Q3 23 Europe 27% -8% North America 25% -11% Asia 19% -13% Africa and Middle East 12%
Slide 5: Order intake and revenues
Interim report for the third quarter 2023 Order intake and revenues MSEK 35,000 130,000 120,000 30,000 110,000 Order intake 25,000 100,000 Reported (MSEK) 20,000 90,000 80,000 70,000 28,927 15,000 60,000 Revenues 10,000 Reported (MSEK) 31,476 20,000 5,000 10,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 6: Growth in order intake and revenues
Interim report for the third quarter 2023 Growth in order intake and revenues Order intake Revenue MSEK MSEK 50% 160,000 50% 160,000 40% 140,000 40% 140,000 30% 120,000 30% 120,000 20% 100,000 20% 100,000 10% 80,000 10% 80,000 0% 60,000 0% 60,000 -10% 20,000 -10% 20,000 -20% 0 -20% 0 -30% -20,000 -3
Slide 7: Adjusted EBITA development
Interim report for the third quarter 2023 Adjusted EBITA development 7,000 MSEK 24% Adj. EBITA margin: 7% 6,000 5,000 20% 20.1% 16% 4,000 – Adj. EBITA SEK 6,312 M (5,889) 12% 3,000 – Strong resilience: 8% – Positive impact from pricing, savings, and 2,000 lower freight costs 1,000 4% – Structure and
Slide 8: Mining and Rock Solutions
Interim report for the third quarter 2023 Order intake and revenues 51% share of Mining and Rock revenues 2022 MSEK Solutions 20,000 150% 16,000 100% 12,000 Order intake 8,000 50% – Demand in mining held up well, driven by aftermarket. Timing of 4,000 orders impacted negatively – Total order intake
Slide 9: Rock Processing Solutions
Interim report for the third quarter 2023 Order intake and revenues 8% share of Rock Processing revenues 2022 MSEK Solutions 4,000 150% 3,000 100% Order intake 2,000 50% – Demand in mining held up well, while infrastructure continued 1,000 to be weak across all major regions 0 0% – Total order intak
Slide 10: Manufacturing and Machining Solutions
Interim report for the third quarter 2023 Order intake and revenues 41% share of Manufacturing and Machining revenues 2022 MSEK Solutions 16,000 150% 12,000 100% 8,000 Order intake 50% – General engineering was down year on year. Stable development in 4,000 automotive and strong demand in aerospace
Slide 11: Cecilia Felton, CFO
Cecilia Felton CFO 11
Slide 12: Financial summary
Interim report for the third quarter 2023 Financial summary MSEK Q3 2022 Q3 2023 Growth OI REV Organic -7% 1% Order intake 29,231 28,927 Structure 3% 3% Revenues 29,267 31,476 Org + structure -4% 4% Adjusted EBITA 5,889 6,312 Currency 3% 3% Adjusted EBITA margin 20.1% 20.1% Total -1% 8% Net financia
Slide 13: Bridge analysis
Interim report for the third quarter 2023 Bridge analysis Q3 Q3 MSEK 2022 Organic Currency* Structure 2023 Revenues 29,267 341 1,026 844 31,476 Adjusted EBITA 5,889 242 31 149 6,312 Adjusted EBITA margin 20.1% 71% 20.1% Accretion/dilution 0.6% -0.6% -0.1% * Currency effect net of structure component
Slide 14: Good progress in realizing savings from 2022 restructuring program
Interim report for the third quarter 2023 Good progress in realizing savings from 2022 restructuring program SMM SMR SRP Common TOTAL ESTIMATED RUN-RATE SAVINGS ~785 540 100 140 5 MSEK REALIZED SAVINGS Q3 2023 79 56 10 13 - MSEK REALIZED ANNUALIZED RUN-RATE (END Q3) 40% 41% 40% 37% - 14
Slide 15: Net financials
Interim report for the third quarter 2023 Net financials MSEK Q3 2022 Q3 2023 Interest net -231 -374 Pension -12 -25 Bank charges -6 -16 Other financial income and cost -6 14 Leases IFRS16 -39 -59 Fx and other asset classes 112 -300 Total -183 -760 Comments and numbers refer to continuing operations
Slide 16: Tax rate
Interim report for the third quarter 2023 Tax rate Q3 2022 Q3 2023 Reported 29.6% 22.1% Excluding IAC 26.7% 21.9% In line with 23-25% guidance for 2023 Normalized 23.9% 23.9% Comments and numbers refer to continuing operations unless otherwise stated. 16
Slide 17: Net working capital
Interim report for the third quarter 2023 Net working capital Net working capital Per BA, % of revenues MSEK 40,000 40% 40% 35,000 35% 35% 30,000 30% 30% 25,000 20,000 25% 25% 15,000 20% 20% 10,000 15% 5,000 0 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 18: Free operating cash flow
Interim report for the third quarter 2023 Free operating cash flow MSEK MSEK Q3 2022 Q3 2023 7,000 140% EBITDA 6,314 7,123 6,000 120% Non-cash items -300 132 5,000 100% NWC change -1,263 -156 4,000 80% CAPEX -1,117 -1,269 3,000 60% FOCF 3,634 5,830 2,000 40% 1,000 20% 0 0% -1,000 -20% Q1 Q2 Q3 Q4 Q1
Slide 19: Net debt
Interim report for the third quarter 2023 Net debt SEK Bn RATIO 60 1.5 50 1.2 40 0.9 – Financial net debt / R12 EBITDA 30 0.6 1.31 20 0.3 – Financial net debt SEK 38.4 billion 10 0.0 – Net debt SEK 46.2 billion 0 -0.3 -10 -0.6 -20 -0.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 20
Slide 20: Outcome versus guidance
Interim report for the third quarter 2023 Outcome versus guidance Outcome Q3 Guidance Q3 Underlying currency YoY effect (MSEK) 31 -100 Outcome Q3 Guidance FY Capex (BSEK) 1.3 4.5 Interest net (BSEK) -0.4 -1.7 Normalized tax rate (%) 23.9% 23-25% Comments and numbers refer to continuing operations un
Slide 21: Guidance Q4 and FY 2023
Interim report for the third quarter 2023 Guidance Q4 and FY 2023 CAPEX (Cash) Estimated to approx. SEK 4.5 – 5.0 B for 2023. Currency effects Given currency rates at end of September 2023 the effect on operating profit from transaction and translation would be SEK -150 M for Q4 2023 Interest net Un
Slide 22: Conclusion
Conclusion Strong resilience in the quarter – Clear evidence of the transformation we have made as a company – Despite moderating volumes, solid leverage and strong cash flow – Operating profit margin of 20.1% - within our target range Execution on shift to growth – Important innovations launched in
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 third quarter 2023 Adjusted EBITA bridge, per BA Q3 Q3 MSEK 2022 Organic Currency Structure 2023 Mining & Rock Solutions Revenues 15,001 1,277 344 53 16,674 Adjusted EBITA 3,046 573 -85 14 3,548 Adjusted EBITA margin 20.3% 45% 21.3% Rock Processing Solutions Revenues 2,340 -18
Slide 26: Loan and duration profile
Interim report for the third quarter 2023 Loan and duration profile MSEK Amount Duration Bonds MTN 27,610 4.5 years Long term: Bank Loans 8,406 2.4 years 83% Commercial papers 2,242 0.0 years Short term: Bonds MTN 4,000 0.5 years Bank Loans 1,092 0.0 years 17% Total 43,349 3.4 years Committed Credit
Slide 27: Loan maturity profile
Interim report for the third quarter 2023 MSEK Loan maturity profile 12,000 Average interest rate: 10,000 ~4.0% 8,000 6,000 4,000 2,000 - 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 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