Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Q1 2024 Earnings Presentation
26 slides from Alimak Group Ab's earnings presentation, Apr 25, 2024
Slide 1: Alimak Group
Alimak Group 25 April 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: Business update – Q1: A mixed start to the year
Business update – Q1 FOR INTERNAL USE ONLY A mixed start to the year Q1 ▪ Still facing a challenging market impacted by the persistently high interest rates and geopolitical uncertainty ▪ Variations between the divisions in the quarter ▪ Group order intake was on par with our revenue, meaning that o
Slide 7: Group quarterly summary Q1
Group quarterly summary Q1 ▪ Order intake was MSEK 1,729, -8% (-7% organically) Order intake & revenue MSEK ‒ Lower order intake in the Facade Access, Industrial 2 400 8 000 and Wind divisions 2 100 7 000 6 000 1 800 5 000 ‒ Good order intake in the Construction division 1 500 1 200 4 000 900 3 000
Slide 8: Service order intake and revenue Q1
Service order intake and revenue Q1 ▪ Service is a key component of the New Heights value Share of order intake Q1 Share of revenue creation programme 62 56 % % 44 ‒ Creates resilience % 38 % ‒ Significant part of all divisions Equipment Service Equipment Service ‒ We continue to actively drive grow
Slide 9: Facade Access Q1
Facade Access Q1 Order intake & revenue ▪ Order intake was MSEK 423, -14% (-14% organically) ▪ Order intake was MSEK 512, +41 % (+24% from ‒ The market for high complexity solutions (BMUs) is MSEK acquisitions. +18% organically) 600 2 500 still challenging, while the market for medium and ‒ An all-t
Slide 10: Facade Access – business update Q1
Facade Access – business update Q1 ▪ Mammendorf assembly site closure project ahead of schedule ‒ Signed agreement with the German works council ‒ Supply chain and competency transfers to Madrid site ongoing ‒ Assembly activity at the Mammendorf facility will conclude at the end of summer (with the
Slide 11: Construction Q1
Construction Q1 Order intake & revenue ▪ Order intake was MSEK 484, +3% (+4% organically) – Solid orders received for new equipment, rental, MSEK 600 2 500 parts and service in all regions 500 2 000 400 1 500 ▪ Revenue was MSEK 371, -20% (-20% organically) 300 1 000 200 – Low revenue due to soft ord
Slide 12: Construction – business update Q1
Construction – business update Q1 ▪ Long-term strategy remains unchanged – Strong order intake in Q1 driven by customer focus, geographic expansion, product development and flexible business model ▪ Construction markets still experiencing headwinds – The Nordic market continues to be very weak – Des
Slide 13: Construction – business update Q1
Construction – business update Q1 ▪ Moving people, material and businesses safely to new heights ‒ Close to our customers ‒ Technology leadership ‒ Sustainable business model 13
Slide 14: Height Safety & Productivity Solutions Q1
Height Safety & Productivity Solutions Q1 Order intake & revenue ▪ Order intake was MSEK 336, -4% (-4% organically) ‒ Excluding inter-division sales, growth was flat year- MSEK 500 1 600 over-year 1 400 400 1 200 ‒ The lifting & handling specialist and elevator 300 1 000 800 segments held up well 20
Slide 15: HSPS – business update Q1
HSPS – business update Q1 ▪ Continued focus on sales, marketing and product development ‒ Main focus on the elevator, underground networks, confined industries, fire & rescue and load measurement segments ‒ 10% increase in lead generation ‒ Strengthening of service delivery performance ▪ Regionaliza
Slide 16: Industrial Q1
Industrial Q1 Order intake & revenue ▪ Order intake was MSEK 328, -12% (-11% organically) ‒ Decrease in traction equipment order intake MSEK MSEK 500 1 600 ‒ Sales pipeline remains strong 400 1 400 1 200 1 000 ‒ Continued strong spare parts and services growth 300 800 200 600 throughout all regions
Slide 17: Industrial – business update Q1
Industrial – business update Q1 ▪ Geographical expansion ‒ Adding sales resources in key growth regions generating results, e.g. Latin America ▪ Further success in offshore wind support ‒ Securing a repeat order of rack and pinion gangway lifts ▪ Improving aftermarket penetration in all regions ▪ La
Slide 18: Wind Q1
Wind Q1 Order intake & revenue ▪ Order intake was MSEK 175, -16% (-15% organically) ‒ Compared to a high comparable in Q1 2023 MSEK 300 800 ▪ Revenue was MSEK 153, +1% (+1% organically) 250 700 600 200 500 ‒ Strong sales in most regions of ladders, fall 150 400 300 protection systems and PPE (person
Slide 19: Wind – business update Q1
Wind – business update Q1 ▪ Market expectations positive in the long-term, but with some short-term concerns – Fierce price competition ▪ New versions of ladder guided lifts are being developed in China – In line with our strategical initiative “China for China” ▪ Strong development for the ladders,
Slide 20: Profit & loss summary Q1
Profit & loss summary Q1 MSEK Q1 2024 Q1 2023 D% Order intake 1 729 1 870 -8 ▪ EBITA adj. Organic order growth -7 Revenue 1 736 1 745 -1 – Stable with a stable revenue and despite cost Organic revenue growth 0 inflation Gross Profit 698 696 0 ▪ Amortisation Gross Margin % 40.2 39.9 +0.3 pp – At circ
Slide 21: Gross margin and operating expenses Q1
Gross margin and operating expenses Q1 Gross margin ▪ To be added ▪ Gross margin was 40.2% (39.9) % ‒ Continued margin improvement in the Facade 48,0 40,0 Access division 32,0 ‒ Wind division margin improved over time and 24,0 16,0 supported in the quarter by a favourable mix effect 8,0 ‒ Significan
Slide 22: Result for the period and EPS Q1
Result for the period and EPS Q1 ▪ Result for the period was MSEK 131 (124), +6% Result for the period and EPS ▪ Excluding IAC (Items Affecting Comparability), result MSEK SEK for the period was MSEK 135 (127), +7% 160 5,00 140 4,50 4,00 ▪ Earnings per share was SEK 1.24 (1.72) 120 3,50 100 3,00 ‒ A
Slide 23: Operating cash flow Q1
Operating cash flow Q1 ▪ Cash flow from operations MSEK 214 (108) Operating cash flow, MSEK ‒ Continued cash focus ‒ Positive impact of better working capital MSEK MSEK management 500 450 1 400 1 200 400 350 1 000 300 800 250 200 600 150 400 100 200 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 C
Slide 24: Net debt and return on capital employed Q1
Net debt and return on capital employed Q1 ▪ Net debt remains stable Net debt, MSEK and leverage ▪ Net debt/EBITDA 2.25 (3.72) X 8 ‒ Well in line with our financial target of being below 2.5x 6 000 6 ▪ Focus on operating cash flow will continue 4 000 4 ▪ Capital allocation priorities: 2 000 2 ‒ De-l
Slide 25: A mixed start to the year Q1
A mixed start to the year Q1 ▪ Variations between the divisions ▪ Our diversification, global footprint and customer focus brings resilience ▪ We will continue to execute on the New Heights programme to ensure we deliver on our financial and sustainability targets ▪ Thank you to all employees! 25
Slide 26: Q&A
Q&A