Slide 1: First Quarter Earnings Presentation
FIRST QUARTER Earnings Presentation 27 April 2023
Slide 2: Operating profit on record level and strong cash flow in the first quarter
Operating profit on record level and strong cash flow in the first quarter ○ Marked volume recovery to 120 ktonnes (127), despite lower demand than in strong Q1 2022 ○ Good progress on Navigate plan for sustainable growth ○ Reduced working capital drove strong cash flow and improved leverage ○ Price
Slide 3: Sequential sales volume recovery but year-over-year decline despite strong automotive
Sequential sales volume recovery but year-over-year decline despite strong automotive Q1 2023 sales volume growth by business area and end-customer market Gränges Americas Gränges Eurasia Gränges Group HVAC -13% Automotive +17% Automotive +14% Speciality Other packaging -2% niches -36% HVAC -13% Oth
Slide 4: Strategic partnership in sustainable aluminium
Strategic partnership in sustainable aluminium ○ Joint venture with Shandong Innovation Group to build recycling and casting operation in Yunnan1 ○ Secured access to low-carbon primary aluminium and renewable energy ○ Will drive dramatic reduction of carbon footprint by 2025… ○ …and enable us to mee
Slide 5: Continued investments to meet growing demand for battery components worldwide
Continued investments to meet growing demand for battery components worldwide ○ Sales started in 2022 in Asia ○ Strong interest from battery makers, car makers, and tier 1 suppliers for several product categories ○ Expansion into battery cathode foil category progressing as planned: – Launch in 2022
Slide 6: Successful ramp-up of new recycling and casting centre in Huntingdon
Successful ramp-up of new recycling and casting centre in Huntingdon ○ New recycling and casting centre in Huntingdon inaugurated in February ○ Successful ramp-up during first quarter ○ Positive impact on earnings, cash flow and carbon footprint increasing in second quarter ○ Second new recycling an
Slide 7: Continued good sustainability performance
Continued good sustainability performance Carbon emissions intensity1 ○ All-time-high recycling volume and share 12 through successful circularity initiatives 9.1 9.1 2017: 11.4 tCO2e/tonne 8 ○ Renewable electricity supply in Asia 4 Scope 1+2 led to record-low scope 1+2 emissions Scope 3 0 Q1 Q2 Q3
Slide 8: Flexibility successfully mitigated external volatility
Flexibility successfully mitigated external volatility First quarter operating profit ○ Part of our Navigate plan is to reduce earnings volatility with Other increased flexibility ○ In the first quarter – Lower demand partly offset by Price new business Cost & produc- – Cost increases more than offs
Slide 9: Continued year-on-year margin improvement in the first quarter
Continued year-on-year margin improvement in the first quarter Sales volume and Adjusted operating profit per tonne 120 4.5 5.0 Adjusted operating profit per tonne (kSEK) 3.5 100 3.3 2.6 2.5 Sales volume (ktonnes) 2.6 80 2.0 60 0.0 40 -2.5 20 64 68 64 66 63 62 58 58 60 66 0 -5.0 Q1 Q2 Q3 Q4 Q1 2022
Slide 10: Financial overview – first quarter 2023
Financial overview – first quarter 2023 SEK million Q1 12 months rolling 2023 2022 Change Mar 2023 Dec 2022 Change Sales volume (ktonnes) 120.2 126.7 –5.2% 472.7 479.3 –1.4% Net sales 5,968 6,080 –1.8% 24,380 24,492 –1.2% Adjusted operating profit1 401 331 21% 1,220 1,150 6.1% Adjusted operating pro
Slide 11: Strong cash flow and improved leverage in the first quarter
Strong cash flow and improved leverage in the first quarter Change in financial net debt -2 000 1.9x Adjusted cash flow before financing 1.8x SEK 287 million -2 500 -3 000 SEK million -257 -3 500 593 -49 -203 -4 000 -3 882 -99 -3 897 -4 500 Financial Adjusted Other operating Maintenance Expansion FX
Slide 12: Gränges Americas – first quarter 2023
Gränges Americas – first quarter 2023 Sales volume ○ Lower demand in most end-customer 80 -6% markets except in Automotive, partially 60 offset by new business ktonnes 40 ○ Improved operating profit and margin 20 64 64 63 58 60 – Productivity and price increases fully 0 Q1 Q2 Q3 Q4 Q1 compensated fo
Slide 13: Gränges Eurasia – first quarter 2023
Gränges Eurasia – first quarter 2023 Sales volume1 ○ Asia sales volume increased by 15% 80 -3% – Post-covid recovery and backlog 60 ktonnes 40 ○ Europe sales volume decreased by -11% 20 68 66 62 58 66 – High downstream inventory 0 levels remain Q1 Q2 Q3 Q4 Q1 Adjusted operating profit 200 4 ○ Improv
Slide 14: Outlook – second quarter 2023
Outlook – second quarter 2023 ○ Market uncertainty remains high in all regions – Continued good momentum in Automotive – Soft demand in other markets ○ Second-quarter sales volume expected to be flat or slightly down year-on-year ○ Ambition to continue to offset year-on-year cost increases with prod
Slide 15: Summary
Summary 15
Slide 16: Q&A
Q&A Jörgen Rosengren, CEO Oskar Hellström, CFO
Slide 17: Slide 17