Slide 1: Second Quarter Earnings Presentation
SECOND QUARTER Earnings Presentation 16 July 2021
Slide 2: Strong market conditions and all-time high sales volume in the second quarter
Strong market conditions and all-time high sales volume in the second quarter ○ Strong market conditions in all regions ○ Record sales volume and improved profit – Sales volume increased by 86% – Adjusted operating profit SEK 309 million ○ Strong cash generation – Net debt back in target range at 2.
Slide 3: Leading positions in four key end-customer markets
Leading positions in four key end-customer markets January – June 2021 sales volume by end-customer market Other niches Automotive 20% 42% 16% Speciality packaging HVAC 22% 3
Slide 4: Strong recovery against weak comparables across all markets in the second quarter
Strong recovery against weak comparables across all markets in the second quarter Q2 2021 sales volume growth by region and end-customer market1 Speciality YoY (%) Automotive HVAC Other niches Total Packaging Europe +82% - +9%1 +56% +78% Asia Pacific +46% - - +20% +41% North & South +131% +51% +29%
Slide 5: Milestone reached for Finspång capacity expansion and logistics improvement project
Milestone reached for Finspång capacity expansion and logistics improvement project ○ Ongoing investment in Finspång to: – Improve environmental footprint – Reduce production cost – Increase capacity by 20 ktonnes ○ First coil successfully rolled in new cold rolling mill on 11 June, 2021 ○ Target co
Slide 6: Supporting the green transition through increased focus on products for battery applications
Supporting the green transition through increased focus on products for battery applications ○ The electrification of the transportation industry drives increased demand for rolled aluminium for Lithium-ion battery cathodes and casing ○ Gränges has capabilities to serve emerging battery value chains
Slide 7: Collaborating with Hydro to reduce climate impacts in the automotive industry
Collaborating with Hydro to reduce climate impacts in the automotive industry ○ Increased customer commitment and focus on sourcing sustainable materials ○ More than 90% of Gränges’ total carbon footprint comes from sourced metals ○ Collaboration with suppliers important to reduce the climate impact
Slide 8: Continued year over year sales volume and margin recovery in the second quarter
Continued year over year sales volume and margin recovery in the second quarter Sales volume and Adjusted operating profit per tonne 100 4.0 Adjusted operating profit per tonne (kSEK) 3.2 80 2.4 1.9 2.0 2.0 Sales volume (ktonnes) 1.9 60 0.6 - 0.9 0.0 40 -2.0 20 47 28 59 32 55 41 15 63 49 24 69 46 24
Slide 9: Financial overview – second quarter 2021
Financial overview – second quarter 2021 SEK million Q2 January-June 2021 2020 Change 2021 2020 Change Sales volume (ktonnes) 131.4 70.8 86% 258.1 160.7 61% Net sales 4,609 2,221 107% 8,651 5,284 64% Adjusted operating profit1 309 42 638% 651 252 159% Adjusted operating margin (%) 6.7 1.9 4.8 ppt 7.
Slide 10: The net debt amounted to SEK 3.5 billion on June 30 and is back in the target range
The net debt amounted to SEK 3.5 billion on 30 June and is back in the target range at 2.0 times EBITDA Change in net debt -2 000 2.4 Adjusted cash flow before financing 2.0 SEK 334 million -2 500 SEK million -3 000 -50 -23 -3 500 -62 -94 -117 -3 532 36 -3 690 468 -4 000 Net debt Adjusted Change in
Slide 11: Gränges Americas – second quarter 2021
Gränges Americas – second quarter 2021 Sales volume ○ Continued strong market recovery 80 +48% supported by market share increase 60 ktonnes 40 ○ All time high sales volume, operating 20 profit and margins, despite 47 59 55 63 69 0 – Negative FX effects SEK -27 million Q2 Q3 Q4 Q1 Q2 200 Adjusted op
Slide 12: Gränges Eurasia – second quarter 2021
Gränges Eurasia – second quarter 2021 Sales volume ○ Strong year over year demand recovery 80 +151%1 – Europe +78% 60 ktonnes – Asia Pacific +41% 40 ○ Solid organic increase in operating profit 20 28 32 55 73 70 per tonne, despite 0 Q2 Q3 Q4 Q1 Q2 – Negative FX effects SEK -8 million 200 Adjusted op
Slide 13: Outlook – third quarter 2021
Outlook – third quarter 2021 ○ Market demand is generally anticipated to remain on a healthy level in the third quarter ○ The slowdown in automotive sales is expected to continue into the third quarter ○ Sales volume in the third quarter is currently expected to be lower than in the second quarter b
Slide 14: Summary – second quarter 2021
Summary – second quarter 2021 ○ Strong market conditions in all regions ○ Record sales volume and improved profit ○ Strong cash generation ○ Execution on the strategy ○ Positive outlook for the third quarter 14
Slide 15: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 16: Slide 16