Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Q4 2023 Earnings Presentation
32 slides from Alimak Group Ab's earnings presentation, Feb 12, 2024
Slide 1: Alimak Group
Alimak Group 12 February 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% Next: moving to science- based targets * Scope 1,2 3, normalized based on turn-over, reduction compared to 2019 ** Corresponding to 80% of
Slide 6: An overall solid quarter with exceptional cash flow
Business update – Q1 FOR INTERNAL USE ONLY An overall solid quarter with exceptional cash flow Q4 ▪ Industrial, Height Safety & Productivity Solutions and Wind performing very well ▪ Somewhat lower order intake in the Construction division – after a strong Q3, underlining volatility between quarters
Slide 7: A transformative year for the Group
Business update – Q1 FOR INTERNAL USE ONLY A transformative year for the Group FY ▪ Successful integration of Tractel and Tall Crane ▪ Improved operational performance ▪ Met the financial targets set in 2021 ‒ New financial and sustainability targets announced in June ▪ Revenue increased to BSEK 7.1
Slide 8: Group quarterly summary
Group quarterly summary Q4 Order intake & Revenue by Quarters Order intake & Revenue by R12M ▪ Order intake was MSEK 1,696, +22% (+22% from acquisitions. -2% MSEK MSEK organically) 2 400 8 000 7 000 6 134 6 726 7 027 – Solid growth in Industrial, 2 100 1 870 5 601 1 782 6 000 1 678 1 696 4 784 1 800
Slide 9: Facade Access Q4
Facade Access Q4 ▪ Order intake was MSEK 512, +41 % Order intake & Revenue by Quarters Order intake & Revenue by R12M (+24% from acquisitions. +18% MSEK organically) MSEK 2 400 – An all-time high for the division 600 493 512 2 000 1 617 1 635 1 815 1 666 – Good growth in both new equipment 500 433 1
Slide 10: Facade Access – full year (aggregated)
Facade Access – full year (aggregated*) FY ▪ Order intake was MSEK 1,815, -16% – Challenging market throughout the year – Stricter tender processes and higher Aggregated margin requirements MSEK FY 2023 FY2022 D% – Strong market position with complete Order intake 1 815 2 159 -16% offering and engin
Slide 11: Facade Access – business update
Facade Access – business update Q4 ▪ Reinforced management team ‒ with the nomination of a division VP for Technology ▪ Announcement of plan to consolidate the Manntech assembly site in Germany ‒ Negotiations with the German Works Council ‒ Expected MSEK 60 annual saving from 2025 ▪ Continuing the i
Slide 12: Construction Q4
Construction Q4 ▪ Order intake was MSEK 319, Order intake & Revenue by Quarters Order intake & Revenue by R12M -35% (+5% from acquisitions. -42% MSEK MSEK organically) 600 494 476 489 2 400 1 928 469 2 000 1 753 500 1 735 – Volatility between quarters 1 613 1 466 400 1 600 319 (after a strong Q3) 30
Slide 13: Construction – full year (aggregated)
Construction – full year (aggregated*) FY ▪ Order intake was MSEK 1,753, +4% – Strong development in a challenging market environment Aggregated – Resilient business model and we continue MSEK FY 2023 FY2022 D% to see opportunities ahead Order intake 1 753 1 680 4% ▪ Revenue was MSEK 1,748, +8% Reve
Slide 14: Workplace accident in Sweden
Workplace accident in Sweden Q4 ▪ A tragic workplace accident in December involving an Alimak Scando 650, a standard hoist used for many years all over the world ▪ Two of the mast sections holding the hoist in place had not been bolted together ▪ Even though the installation was not carried out by u
Slide 15: Construction – business update
Construction – business update Q4 – Infrastructure projects in Sydney ‒ Additional order to existing rental hoist solutions on the Western Sydney airport terminal ‒ Single hoists with varying levels of complexity to six different train stations ▪ AliCalc ‒ On-line calculation for safe installation ‒
Slide 16: Height Safety & Productivity Solutions Q4
Height Safety & Productivity Solutions Q4 Order intake & Revenue by Quarters Order intake & Revenue by R12M ▪ Order intake was MSEK 357 MSEK MSEK – High demand in Europe 500 1 600 1 407 351 357 1 400 – Strong development in the 400 350 350 1 161 1 200 300 1 000 811 elevator, rental and 200 800 111 4
Slide 17: HSPS – full year (aggregated)
HSPS – full year (aggregated*) FY ▪ Order intake was MSEK 1,407, +9% – All parts developing well, especially the elevator business Aggregated ▪ Revenue was MSEK 1,410, +11% MSEK FY 2023 FY2022 D% – All-time high Order intake 1 407 1 296 9% Revenue 1 410 1 266 11% ▪ EBITA at MSEK 269, +6%. Margin 19.
Slide 18: HSPS – business update
HSPS – business update Q4 ▪ Inauguration of a new building in Saint Hilaire, France ‒ Rebuilt after a fire in 2021 ‒ Offers improved inventory management and product flow, as well as state-of-the-art order preparation system ▪ New product launches ‒ BlocFor R Evo - a new version of one of the iconic
Slide 19: Industrial Q4
Industrial Q4 ▪ Order intake was MSEK 384, +24% (25% Order intake & Revenue by Quarters Order intake & Revenue by R12M organically) MSEK MSEK – Significant increase of new equipment 500 1 800 1 457 1 376 1 382 order intake in multiple segments and 400 372 373 328 384 1 500 1 303 1 337 regions 309 1
Slide 20: Industrial – full year
Industrial – full year FY ▪ Order intake was MSEK 1,457, +12% – Good year for equipment order intake in multiple regions, particularly in Northern MSEK FY 2023 FY2022 D% Europe and the marine and offshore customer Order intake 1 457 1 303 12% segments – Solid performance in APAC, notably for ship to
Slide 21: Industrial – examples of new orders
Industrial – examples of new orders Q4 ▪ Two equipment orders for bridges in the US ‒ Part of the ongoing push to modernize the country’s infrastructure ▪ Seven lifts for a brownfield project at potash plant in Jordan ▪ Continued success in the ports segment for Ship- To-Shore cranes ▪ Service agree
Slide 22: Wind Q4
Wind Q4 ▪ Order intake was MSEK 141, +20% (+17% Order intake & Revenue by Quarters Order intake & Revenue by R12M organically) MSEK MSEK – Most markets developed positively in 900 300 689 800 665 the quarter, in particular China and 250 208 187 700 514 593 635 600 Denmark. 200 152 141 500 – Positive
Slide 23: Wind – full year
Wind – full year FY ▪ Order intake was MSEK 689, +34% (26% organically) – Continued positive effect from focus on becoming the preferred supplier for selected OEMs – New equipment solutions for onshore and offshore were launched and positively received MSEK FY 2023 FY2022 D% in the market Order inta
Slide 24: Wind – business update
Wind – business update Q4 ▪ The European Wind Power Action Plan creates opportunities ‒ Announced by The European Commission in October, aimed at increasing the installed capacity ‒ 300 companies from the wind industry have signed the Wind Charter ‒ Underlines the ambition for wind power in Europe ▪
Slide 25: Financial summary
Financial summary Q4 MSEK Q4 2023 Q4 2022 D% YTD 2023 YTD 2022 D% Order intake 1 696 1 396 22 7 027 4 784 47 Organic order growth -2 -4 Revenue 1 838 1 403 31 7 097 4 512 57 Organic revenue growth 4 4 EBITA adj 288 217 32 1 150 616 87 EBITA adj % 15.7 15.5 +0.2 pp 16.2 13.6 +2.6 pp EBITA 258 237 9 1
Slide 26: Earnings summary
Earnings summary Q4 ▪ EBITA, adjusted – Margin improved compared to last year, mainly due to increased revenues, MSEK Q4 2023 Q4 2022 DMSEK operational improvements and EBITA adj 288 217 71 contribution from acquisitions Items affecting – Items affecting comparability, MSEK -30 comparability -30 19
Slide 27: Result for the period and EPS
Result for the period and EPS Q4 ▪ Result for the period was MSEK 121 (130) Result for the period and EPS ▪ Excluding IAC (Items Affecting Comparability), MSEK SEK result for the period was MSEK 151 (111), +36% 1,81 160 1,72 2,00 140 1,80 ▪ Earnings per share was SEK 1.13 (1.81) 1,32 1,60 120 1,21 1
Slide 28: Cash flow
Cash flow Q4 ▪ Cash flow from operations MSEK 363 (293) Operating cash flow, MSEK by quarter – Strong cash focus – Positive impact of significant working capital reduction MSEK 450 390 400 363 350 293 300 250 206 200 150 108 100 50 0 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 28
Slide 29: Net debt
Net debt Q4 ▪ Net debt – Impacted by outstanding cash flow Net debt, MSEK and leverage, by quarter generation ▪ Net debt/EBITDA 2.26 (8.00) MSEK – Well in line with our financial target of 8 000 8,00 10 being below 2.5x 6 000 8 ▪ Focus on operating cash flow will 4 000 6 3,72 3,36 continue 2,53 2,26
Slide 30: Balance sheet
Balance sheet Q4 Balance sheet ▪ Solid balance sheet – Reflecting operational improvement Amounts in MSEK 31 Dec 2023 31 Dec 2022 Goodwill 5 882 5 950 Other intangible assets 2 538 2 747 – BSEK 2 RCF has been contracted. Tangible assets 933 929 Financial and other non-current assets 342 400 The agre
Slide 31: Solid end to a great year
Solid end to a great year Q4 & FY ▪ An important, successful and transformative year for the Group ▪ Revenue of SEK 7.1 billion (4.5), with an adjusted EBITA margin of 16.2% (13.6) ▪ Deleveraging to net debt/EBITDA of 2.26, which creates opportunities going forward ▪ Four divisions with good develop
Slide 32: Q&A
Q&A