Sandvik Ab · OMXSTO:SAND

Sandvik Ab — Q1 2024 Earnings Presentation

28 slides from Sandvik Ab's earnings presentation, Apr 22, 2024

  1. Slide 1: Interim report first quarter 2024

    Interim report first quarter 2024

  2. Slide 2: Summary Q1

    Summary Q1 Typical seasonality with positive book to bill, solid order intake levels – Strong demand in aerospace and mixed picture in general engineering. Mining demand on high levels, while infrastructure remained weak – Total order intake declined by 7%. At fixed exchange rates, orders declined b

  3. Slide 3: Staying ahead through innovation: Upgraded 800i cone crusher series

    Staying ahead through innovation: Upgraded 800i cone crusher series with new automation and connectivity system – Upgraded cone crushers with new automation and connectivity system – Robust, optimized mechanical design – Improved reliability and simplicity - leading to productivity and uptime gains

  4. Slide 4: YoY market development

    Interim report for the first quarter 2024 YoY market development Mining Engineering Infrastructure Automotive Aerospace Other 51% 20% 10% 7% 4% 8% % of revenue 2023 Percent of revenue Order intake 2023 Y/Y Q1 24 Europe 27% -9% North America 25% -14% Asia 17% 0% Africa and Middle East 12% -1% Austral

  5. Slide 5: Order intake and revenues

    Interim report for the first quarter 2024 Order intake and revenues SEK Bn 35 140 Order intake Reported (MSEK) 31,981 30 120 25 100 Revenues 20 80 Reported (MSEK) 15 10 60 40 29,002 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 2024 0 110% Order intake, r

  6. Slide 6: Growth in order intake and revenues

    Interim report for the first 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

  7. Slide 7: Adjusted EBITA development

    Interim report for the first quarter 2024 Adjusted EBITA development SEK Bn 8 -14% 22% Adj. EBITA margin: 18.2% 7 20% 6 18% 5 16% 4 14% – Adj. EBITA SEK 5,281 M (6,119) 3 12% – Temporary lower volumes putting pressure on 2 4% SG&A cost coverage 1 2% – Currency dilution of 40 basis points 0 Q1 Q2 Q3

  8. Slide 8: Mining and Rock Solutions

    Interim report for the first quarter 2024 Order intake and revenues 52% share of Mining and Rock revenues 2023 SEK Bn Solutions 20 150% 16 100% 12 Order intake 8 50% – Resilient demand in mining while tough comparables on order intake 4 – Strong growth for Rotary Drilling and major AutoMine® order o

  9. Slide 9: Rock Processing Solutions

    Interim report for the first quarter 2024 Order intake and revenues 9% share of Rock Processing revenues 2023 SEK Bn Solutions 4 150% 3 100% Order intake 2 – Mining demand stable on high levels, while infrastructure remained weak 50% 1 – Total order intake declined by 9%, and at fixed exchange rates

  10. Slide 10: Manufacturing and Machining Solutions

    Interim report for the first 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 demand in aerospace while general engineering and automotive slightly 50% 4 down mainly due to weakness in Europe. Resili

  11. Slide 11: Cecilia Felton, CFO

    Cecilia Felton CFO 11

  12. Slide 12: Financial summary

    Interim report for the first quarter 2024 Financial summary MSEK Q1 2023 Q1 2024 Growth OI Rev Order intake 34,363 31,981 Organic -5% -5% Revenues 30,968 29,002 Structure 0% 0% Adjusted EBITA 6,119 5,281 Organic + structure -5% -5% Adjusted EBITA margin 19.8% 18.2% Currency -2% -2% Net financial ite

  13. Slide 13: Bridge analysis

    Interim report for the first quarter 2024 Bridge analysis Q1 Q1 MSEK 2023 Organic Currency Structure 2024 Revenues 30,968 -1,584 -490 108 29,002 Adjusted EBITA 6,119 -637 -212 11 5,281 Adjusted EBITA margin 19.8% -40% 18.2% Accretion/dilution -1.1% -0.4% 0.0% 13

  14. Slide 14: 2022 and 2024 restructuring programs

    Interim report for the first quarter 2024 2022 and 2024 restructuring programs Group Annualized SMM SMR SRP Total activities run-rate 2022 Program Savings in Q1 80 10 23 - 113 58% Total estimated run-rate savings 540 100 140 5 785 2024 Program Savings in Q1 18 5 3 - 26 8% Total estimated run-rate sa

  15. Slide 15: Net financials

    Interim report for the first quarter 2024 Net financials MSEK Q1 2023 Q1 2024 Interest net -361 -363 Pension -23 -25 Bank charges -20 -29 Other financial income and cost -3 -4 Leases IFRS16 -49 -61 Fx and other asset classes -74 -25 Total -529 -506 Total yield cost 3.7% 5.0% 15

  16. Slide 16: Tax rate

    Interim report for the first quarter 2024 Tax rate Q1 2023 Q1 2024 Reported 24.6% 26.1% In line with guidance for 2024 Excluding IAC 24.5% 24.0% 23-25% Normalized 23.6% 24.0% 16

  17. Slide 17: Net working capital

    Interim report for the first quarter 2024 Net working capital Net working capital Per BA, % of revenues Sek Bn 40 40% 40% 35 35% 35% 30 30% 30% 25 20 25% 25% 15 20% 20% 10 15% 5 0 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020* 2021*

  18. Slide 18: Free operating cash flow

    Interim report for the first quarter 2024 Free operating cash flow SEK Bn 7 140% MSEK Q1 2023 Q1 2024 6 120% EBITDA 6,890 3,831 5 100% Non-cash items 15 1,215 4 80% NWC change -2,079 -1 3 60% CAPEX -1,116 -1,273 2 40% FOCF 3,710 3,770 1 20% 0 0% -1 -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

  19. Slide 19: Net debt

    Interim report for the first quarter 2024 Net debt SEK Bn RATIO 60 1.8 50 1.5 40 1.2 – Financial net debt / R12 EBITDA 1.3 30 0.9 – Financial net debt SEK 33.9 billion 20 0.6 – Net debt SEK 42.2 billion 10 0.3 0 0.0 -10 -0.3 -20 -0.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022

  20. Slide 20: Outcome versus guidance

    Interim report for the first quarter 2024 Outcome versus guidance Outcome Q1 Guidance Q1 Underlying currency YoY effect (MSEK) -212 -360 Outcome Q124 Guidance FY24 Capex (BSEK) 1.2 5.0 Interest net (BSEK) -0.4 -1.3 Normalized tax rate (%) 24.0% 23-25% 20

  21. Slide 21: Guidance Q2 and FY 2024

    Interim report for the first quarter 2024 Guidance Q2 and FY 2024 CAPEX (Cash) Estimated to approximately SEK 5.0 B for 2024 Currency effects Given currency rates at end of March 2024 the effect on operating profit from transaction and translation would be SEK +120 M for Q2 2024 Interest net Underly

  22. Slide 22: Conclusion

    Conclusion Mixed picture quarter – Short-cycle business stable, but adversely impacted by calendar effects – Long-cycle business at high levels, but with more back-loaded deliveries – Stable to positive sentiment among customers and continued investment willingness – Temporary lower volumes in the q

  23. Slide 23: Q&A

    Q&A 23

  24. Slide 24: Backup slides

    Backup slides 24

  25. Slide 25: Adjusted EBITA bridge, per BA

    Interim report for the first quarter 2024 Adjusted EBITA bridge, per BA Q1 Q1 MSEK Organic Currency Structure 2023 2024 Mining & Rock Solutions Revenues 15,366 -679 -327 -49 14,312 Adjusted EBITA 3,075 -383 -86 -2 2,605 Adjusted EBITA margin 20.0% 18.2% Rock Processing Solutions Revenues 2,939 -449

  26. Slide 26: Loan and duration profile

    Interim report for the first quarter 2024 Loan and duration profile MSEK Amount Duration Bonds MTN 24,683 4.4 years Long term: Bank Loans 1,868 6.0 years 71% Commercial papers 4,484 0.3 years Short term: Bonds MTN 6,208 0.5 years Bank Loans 272 0.0 years 29% Total 37,515 3.3 years Committed Credit f

  27. Slide 27: Loan maturity profile

    Interim report for the first quarter 2024 SEK M Loan maturity profile 10,000 Average interest rate: 8,000 ~3.7% 6,000 4,000 2,000 - 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 27

  28. 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

Sandvik — Q1 2024 Earnings Presentation on 6ix