Slide 1: Interim Report Q3 2024
MIKA SAARIAHO, President and CEO INTERIM REPORT Q3 2024 VILLE HALTTUNEN, CFO October 31, 2024
Slide 2: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Outlook 2024 2 www.raute.com
Slide 3: Q3 2024 highlights
Q3 2024 highlights Strong profitability in the third quarter • Continued solid operational execution in Wood Processing and yet another good quarter in Services business • Comparable EBITDA of EUR 6.3 (3.0) million with margin of 13.5% (8.8%) • Long-term target of a 12% comparable EBITDA for the f
Slide 4: Q3 2024 Key Figures
Q3 2024 Key Figures Comparable Net sales EBITDA Order intake 46.4 6.3 15 MEUR MEUR MEUR (Q3 2023: 34.0) (Q3 2023: 3.0) (Q3 2023: 19) Equity ratio* Order book* Personnel* 54.3 186 789 MEUR (Q3 2023: 55.4) (Q3 2023: 192) *at the end of the reporting period (Q3 2023: 745) 4 www.raute.com
Slide 5: Order intake
Order intake Order intake of EUR 15 million in Q3/2024 315 Q3/2024 Asia-Pacific 6% 118 118 Europe 203 41% 19 19 50 North America 43% 138 28 112 119 58 28 112 35 11% South America 35 Q4 70 40 72 65 67 15 • Quarterly order intake included mainly 40 36 Q3 11 20 service and modernization projects Q2 13
Slide 6: Order book
Order book Solid order book of EUR 186m at the end of Q3/2024 provides a good buffer in the current uncertain market 266 259 • Five mill-sized orders received since the beginning of 2023: 223 Lumin, Latvias Finiers, Thebault, Metsä Wood and AmberBirch 202 2 192 1 186 158 150 152 129 266 121 259 3 10
Slide 7: Net sales
Net sales Net sales EUR 46.4m in Q3/2024 increasing 36.2% against last year, driven by Wood Processing and Services Q3/2024 158 South America 145 148 142 Asia-Pacific 11% 3% 46 +36.2% 45 46 115 44 45 North America 25% 45 61% Q4 39 Europe 42 34 38 42 34 57 Q3 28 30 30 29 29 35 • Sales growth was driv
Slide 8: Comparable EBITDA
Comparable EBITDA Comparable EBITDA EUR 6.3m in Q3/2024 with margin of 13.5% +111% • Comparable EBITDA EUR 6.3m (3.0) and 8 6.0 6.3 margin 13.5% (8.8%) in Q3/2024 6 5.4 • Seasonally strong profitability 4 3.1 2.8 3.0 2.7 3.0 • The increase was driven by the 2.1 2.7 2 improved operational efficiency
Slide 9: Operating profit (YTD)
Operating profit (YTD) EURm 12 10.2 10 8 6 5.4 4 2 0.9 1.2 1.9 1.5 0 -2 -0.2 -1.5 -4 -3.1 -3.0 -2.8 -2.8 -2.8 -2.2 -6 -4.2 -4.5 -8 -10 -12 -14 -16 -14.6 -18 -16.6 -15.2 2020 2021 2022 2023 2024 Q1 Q1-Q2 Q1-Q3 Q1-Q4 www.raute.com
Slide 10: Personnel
Personnel Head account increased 6% against last year same period Headcount at the end of the period, in books +6% 802 798 789 778 775 751 754 757 745 754 733 China Others 2% 6% North America 18% 73% Europe 2020 2021 2022 2023 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 10 www.raute.com
Slide 11: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Outlook 2024 11 www.raute.com
Slide 12: Wood processing
Wood processing Net Sales Comparable EBITDA EURm EURm 45 6 +49.9% • Net sales EUR 32.2m in Q3/2024, increased by 49.9% against last year 40 4 • The increase was driven by solid 2 progress in the deliveries of mill- 35 sized projects as well as good 0 amount of modernization project 30 Q1 Q2 Q3 Q4 de
Slide 13: Services
Services EURm Net Sales EURm Comparable EBITDA 12 3 +24.5% • Net sales EUR 9.9m in Q3/2024, increased by 24.5% against last year • The demand for services 10 2.5 remained strong across all service operations, and 8 2 particularly for on-site services 6 1.5 • Comparable EBITDA EUR 1.9m (1.8) with mar
Slide 14: Analyzers
Analyzers Net Sales EURm Comparable EBITDA EURm 7 2.5 • Net sales EUR 4.2m in Q3/2024, -7.9% decreasing -7.9% against last year 6 • The decline was due to low 2 level of new orders 5 • Comparable EBITDA EUR 0.7m (0.7) 1.5 with margin of 16.6% (15.9%) 4 • Efficiency improvements had a positive impact
Slide 15: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Outlook 2024 15 www.raute.com
Slide 16: Earnings per share
Earnings per share Q3/24 EPS increased to 0.73 (0.16) Quarterly EPS (EUR) +356% • EPS supported by increased EBIT and 0.73 finance net compared to last year 0.56 • Interest of convertible junior loan (EUR 3m) calculated in EPS 0.20 0.16 0.10 0.09 -0.15 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 R12M
Slide 17: Quarterly cash flow and EBITDA
Quarterly cash flow and EBITDA Q3/2024 strong operating cash flow EUR +18.8m EURm Operating cash flow and EBITDA 40.0 • Q3/2024 operating cash flow EUR 35.0 18.8m 30.0 (2.9) 25.0 • EBITDA amounted to EUR 6.2m (2.7) 20.0 18.8 • Change in networking capital 15.0 was positively impacting the 10.0 opera
Slide 18: Net working capital
Net working capital Net working capital EUR -31.9m at the end of Q3/2024 improving during Q3/24 EURm % of net sales 10.0 10% • Net working capital EUR -31.9m (-28.6) at 5.6 5.0 the end of Q3/24 5% • NWC change during Q3/24 0.0 EUR -13.1m (-2.2) 0% -5.0 -2.9 -4.3 -4.2 -5.1 -5% -10.0 -9.0 -10.0 -11.3
Slide 19: Equity ratio
Equity ratio Strong equity ratio at 54.3% clearly above target of >40% 70% • Equity ratio increased during Q3/24 60% 58.8% 54.3% as a result of increased equity 50.2 % 49.7 % through profit generation 50% 48.5% 44.3% • In 2023 equity ratio increased due to 40% 36.6% new equity EUR 15.5 million that
Slide 20: Capex and depreciation and amortization
Capex and depreciation and amortization Capital expenditure have decreased from last year, but depreciation increased EURm 7.0 6.6 • Q3/2024 capex was EUR 0.4m 6.3 (1.1) 6.0 5.0 4.5 4.1 4.0 3.7 3.4 4.5 3.1 3.1 M€ 3.0 2.7 2.5 2.6 2.0 1.8 1.9 1.3 1.5 1.3 0.9 1.0 1.0 0.0 2021 2022 2023 Q3/24 R12 1-9/23
Slide 21: Research and Development
Research and Development EURm / % of net sales 7.0 6.3 6.0 5.2 4.9 5.0 5.2 4.0 4.0 3.8 M€ 3.0 2.0 1.0 0.0 2021 2022 2023 1-9/23 1-9/24 R&D expenses (MEUR) R&D as % of sales (%) 21 www.raute.com
Slide 22: Content
Content • Highlights and Group performance • Segment performance • Cash flow, financial position and key figures • Outlook 2024 22 www.raute.com
Slide 23: Outlook 2024
Outlook 2024 BUSINESS ENVIRONMENT GUIDANCE STATEMENT FOR 2024 (Updated on October 22, 2024): • The global demand for the end-user products of Raute’s customers remained low due to the downturn in the construction markets. This impacted especially the demand for softwood plywood Raute’s 2024 net sale
Slide 24: Further information
Further information Mika Saariaho President and CEO +358 40 1549393 mika.saariaho@raute.com Ville Halttunen CFO +358 50 3460868 ville.halttunen@raute.com.com 24 www.raute.com
Slide 25: Thank you!
THANK YOU! www.raute.com Raute Oyj Raute Corporation RauteMachinery @rautecorporation