Slide 1: Interim report third quarter 2024
Interim report third quarter 2024
Slide 2: Summary Q3
Summary Q3 Stable topline in a mixed demand environment – Solid momentum in mining and software businesses, while cutting tools impacted negatively by weak macro environment – Total order intake flat year on year, organic growth was 2% – Total revenue declined by 4%, of which organic -1% 1% Revenue
Slide 3: Trolley solution for underground trucks
Trolley solution for underground trucks – Trolley solution for large BEV trucks presented at MINExpo 2024 – A platform approach that supports modular electric systems – Ideal for large fleets with high power needs, predictable traffic, and long ramps – Benefits: high ramp speeds, no battery swaps –
Slide 4: YoY market development
Interim report for the third quarter 2024 YoY market development Mining General Engineering Infrastructure Automotive Aerospace Other 51% 20% 10% 7% 4% 8% % of revenue 2023 Percent of revenue Order intake 2023 Y/Y Q3 24 Europe 27% -6% North America 25% 2% Asia 17% -6% Africa and Middle East 12% 14%
Slide 5: Order intake and revenues
Interim report for the third quarter 2024 Order intake and revenues SEK Bn 35 140 Order intake Reported (MSEK) 28,796 30 120 25 100 Revenues 20 80 Reported (MSEK) 15 10 60 40 30,306 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 Q3 0 95% Order inta
Slide 6: Growth in order intake and revenues
Interim report for the third 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 Q
Slide 7: Adjusted EBITA development
Interim report for the third quarter 2024 Adjusted EBITA development SEK Bn 8 -7.1% 22% Adj. EBITA margin: 19.4% 7 20% 6 18% 5 16% 4 14% – Adj. EBITA SEK 5,866 M (6,312) 3 12% – Lower volumes partly off-set by contingency 2 4% measures and structural savings 1 2% – Cost inflation was off-set by pric
Slide 8: Mining and Rock Solutions
Interim report for the third 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 in mining driven by double-digit growth in the 8 50% aftermarket business 4 – Major order win of SEK 1.9 billion, o
Slide 9: Rock Processing Solutions
Interim report for the third 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 while weak macro environment continued to weigh 50% 1 on infrastructure – Total order intake declined by 3%. At fixed
Slide 10: Manufacturing and Machining Solutions
Interim report for the third quarter 2024 Order intake and revenues 39% share of Manufacturing and Machining revenues 2023 SEK Bn Solutions 16 150% 12 100% Order intake 8 – Solid momentum in the software business while cutting tools declined by mid- 50% single digits. Strong development in powder so
Slide 11: Cecilia Felton, CFO
Cecilia Felton CFO 11
Slide 12: Financial summary
Interim report for the third quarter 2024 Financial summary MSEK Q3 2023 Q3 2024 Growth OI Rev Order intake 28,927 28,796 Organic 2% -1% Revenues 31,476 30,306 Structure 2% 1% Adjusted EBITA 6,312 5,866 Organic + structure 4% 1% Adjusted EBITA margin 20.1% 19.4% Currency -5% -4% Net financial items
Slide 13: Bridge analysis
Interim report for the third quarter 2024 Bridge analysis Q3 Q3 MSEK 2023 Organic Currency Structure 2024 Revenues 31,476 -210 -1,376 416 30,306 Adjusted EBITA 6,312 -336 -173 63 5,866 Adjusted EBITA margin 20.1% -160% 19.4% Accretion/dilution -0.9% 0.3% -0.1% 13
Slide 14: Good progress on the restructuring programs
Interim report for the third quarter 2024 Good progress on the restructuring programs Group Annualized SMM SMR SRP Total activities run-rate 2022 Program Savings in Q3 118 20 34 – 173 88% Total estimated run-rate savings 540 100 140 5 785 2024 Program Savings in Q3 113 71 31 – 215 69% Total estimate
Slide 15: Net financials
Interim report for the third quarter 2024 Net financials MSEK Q3 2023 Q3 2024 Interest net -374 -390 Pension -25 -26 Bank charges -16 -22 Other financial income and cost 12 -8 Leases IFRS16 -59 -66 Fx and other asset classes -300 -13 Total -760 -526 Total yield cost, R12 4.5% 5.2% 15
Slide 16: Tax rate
Interim report for the third quarter 2024 Tax rate MSEK Q3 2023 Q3 2024 Reported 22.1% 26.4% – Reported tax impacted by accounting Excluding IAC 21.9% 24.1% effects of exiting non-strategic businesses – Normalized tax: In line with guidance for Normalized 23.9% 24.1% 2024 – 23-25% 16
Slide 17: Net working capital
Interim report for the third 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 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 18: Free operating cash flow
Interim report for the third quarter 2024 Free operating cash flow SEK Bn 7 140% MSEK Q3 2023 Q3 2024 6 120% EBITDA 7,631 6,856 5 100% 4 80% Non-cash and other items** -377 -669 EBITDA adj for non-cash 3 60% 7,255 6,186 and other items 2 40% Capex -1,269 -1,179 1 20% NWC -156 1,755 0 0% FOCF 5,830 6
Slide 19: Net debt
Interim report for the third 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 1.4 10 0.3 0 0.0 -10 -0.3 – Financial net debt SEK 37 billion -20 -0.6 – Net debt SEK 46 billion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2
Slide 20: Outcome versus guidance
Interim report for the third quarter 2024 Outcome versus guidance Outcome Q3 Guidance Q3 Currency YoY effect (MSEK) -173 -250 Outcome Q1-Q3’24 Guidance FY24 Capex (BSEK) 3.5 5.0 Interest net (BSEK) -1.2 -1.5 Normalized tax rate (%) 24.0% 23-25% 20
Slide 21: Guidance Q4 and FY 2024
Interim report for the third quarter 2024 Guidance Q4 and FY 2024 Currency effect Given currency rates at the end of September 2024 the effect on operating profit from transaction and translation would be SEK -250 M for Q4 2024 CAPEX (Cash) Estimated to approximately SEK 5.0 Bn for 2024 Interest net
Slide 22: Conclusion
Conclusion Solid performance in a challenging macro environment – Stable orders and revenues – Good execution on cost reductions and a resilient margin – Strong cash conversion Execution on strategic priorities – Solid momentum in our software businesses – Strengthened automation offering further wi
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 2024 Adjusted EBITA bridge, per BA Q3 Q3 MSEK Organic Currency Structure 2023 2024 Mining & Rock Solutions Revenues 16,674 15 -805 -46 15,838 Adjusted EBITA 3,548 -243 -46 10 3,269 Adjusted EBITA margin 21.3% 20.6% Rock Processing Solutions Revenues 2,854 15 -118
Slide 26: Loan and duration profile
Interim report for the third quarter 2024 Loan and duration profile Long term: MSEK Amount Duration Bonds MTN 23,599 4.0 years 75% Bank Loans 7,493 6.3 years Short term: Commercial papers 5,128 0.1 years Bonds MTN Bank Loans 4,013 1,117 0.5 years 0.2 years 25% Total 41,349 3.5 years Committed Credit
Slide 27: Loan maturity profile
Interim report for the third quarter 2024 SEK M Loan maturity profile 8 000 Average interest rate: ~3.7% (excluding swap costs) 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