Alleima Ab · OMXSTO:ALLEI
Alleima Ab — Q3 2024 Earnings Presentation
26 slides from Alleima Ab's earnings presentation, Oct 22, 2024
Slide 1: Third quarter 2024 interim report
October 22, 2024 Interim report Third quarter 2024 G6ran Bjorkman, President & CEO Olof Bengtsson, CFO \ Alleima
Slide 2: Safety first
Alleima Safety first At Alleima our objective is zero harm to our people, Protective equipment Emergency number Psychological safety the environment we work in, our customers and our suppliers. First aid kit Emergency exit Alarm Assembly point Health & well-being Speak Up
Slide 3: Q3 highlights
Alleima | Third quarter 2024 Q3 highlights Mixed market sentiment — Backlog remains solid — Well positioned for market rebound Diversified segment exposure — Solid Q3 earnings — FX headwind Increasing production capacity — Re-opening of steam generator tubing facility for the Nuclear segment — Footp
Slide 4: Leading sustainability
Alleima | Third quarter 2024 Leading sustainability Making an impact through our operations — Prioritizing safety performance — Share of recycled steel remains high — Reducing R12 CO: emissions — Dedicated to increase the share of female managers No. of Frequency injuries rate, R12 30 2 8 20 8 6 10
Slide 5: Leading sustainability
Alleima | Third quarter 2024 Leading sustainability Making an impact through our operations — Prioritizing safety performance — Share of recycled steel remains high — Reducing R12 CO: emissions — Dedicated to increase the share of female managers No. of Frequency injuries rate, R12 30 2 8 20 8 6 10
Slide 6: Enabling the sustainable transition
Mera | Third quarter 2024 Enabling the sustainable transition Making an impact through our products Increasing capacity to meet growing demand in nuclear — Leading market positions for over 50 years — Adding ~60% capacity for steam generator tubing — Serving both conventional power plants and SMR:s
Slide 7: Footprint expansion for the Medical segment
Alleima 7 Footprint expansion for the Medical segment ― ― ―
Slide 8: Market development
Alleima | Third quarter 2024 Market development — Mixed market sentiment — Broad exposure reduces volatility Perceived year on year underlying market demand trend CHEMICAL AND INDUSTRIAL OIL AND GAS INDUSTRIAL PETROCHEMICAL HEATING CONSUMER Year on year underlying demand trend % of Group 10, 10, 0,
Slide 9: Revenues and book-to-bill
Alleima ― 25 000 6 000 140 ― 5 000 120 20 000 100 ― 4 000 15 000 80 3 000 ― 60 10 000 2 000 40 5 000 1 000 20 0 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2022 2023 2024 Revenues Book-to-bill R12, %
Slide 10: Earnings
Alleima | Third quarter 2024 Earnings Adjusted EBIT at SEK 314 million (350) — Margin of 7.0% (7.6) — FXheadwind —__ Diversified product mix contribution — Staying with our strategy Free operating cash flow of SEK 411 million (812) 10 Adjusted EBIT SEKM % 700 2 600 40 500 8 400 6 300 4 200 100 2 fo}
Slide 11: Adjusted EBIT margin development
Alleima 11 8% 7,6% 7,0% 7% 6% 5% 4% 3% 2% 1% 0% Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 EBIT margin, adj.
Slide 12: Alleima Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2
Alleima ― ― ― 5 000 140 500 12 120 10 4 000 400 ― 100 8 ― 3 000 80 300 ― 6 60 2 000 200 4 40 1 000 100 20 2 0 0 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2022 2023 2024 Revenues EBIT, adj. Book-to-bill R12, % EBIT margin, adj. R12
Slide 13: Alleima Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2
Alleima ― ― ― 1 400 120 250 20 1 200 100 200 16 1 000 ― 80 150 12 ― 800 60 ― 600 100 8 40 400 50 4 200 20 0 0 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2022 2023 2024 Revenues EBIT, adj. Book-to-bill R12, %
Slide 14: Alleima Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenues
Alleima ― ― ― 500 140 90 14 120 ― 400 70 100 10 ― ― 300 80 50 6 60 200 30 40 100 2 20 10 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -10 -2 2022 2023 2024 2022 2023 2024 Revenues EBIT, adj. Book-to-bill R12, % EBIT margin, adj. R12
Slide 15: Financial summary
Alleima | Third quarter 2024 Financial summary 15 SEKM Q3 2024 Q3 2023 Q1-Q3 2024 Qt-Q3 2023 Order intake, R12 19,646 22,362 = - Revenues 4,498 4617 14,597 15,631 Adj. EBIT 314 350, 1,360 1,559 Adj. EBIT margin, % 70 76 9.3 10.0 Metal price effects -24 -144 -255 42 Items affecting comparability (0)
Slide 16: Bridge analysis, adjusted EBIT
Alleima | Third quarter 2024 Bridge analysis, adjusted EBIT 350 => =, Adj EBIT Q3 2023 Adj. EBIT margin 7.6% Organic Currency Structure 16 314 Adj EBIT Q3 2024 Adj. EBIT margin 7.0% Leverage: N 12% — Positive organic development — FX hada negative impact of SEK 51 million yoy
Slide 17: Net working capital and ROCE
Alleima ― ― ― ― ― 8 000 50 18 000 20 40 16 7 000 16 000 30 12 20 8 6 000 14 000 10 4 5 000 0 12 000 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2022 2023 2024 NWC Capital employed excl. cash NWC % of revenues ROCE excl. cash
Slide 18: Free operating cash flow
Alleima ― ― ― 1 000 800 600 400 200 0 -200 -400 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024
Slide 19: Net debt / net cash
Alleima 2 500 2 000 1 779 1 500 1 239 1 000 500 384 410 293 0 -500 -325 Q3 2022 Q3 2023 Q3 2024 Financial net debt (-) / Net cash (+) Net debt (-) / Net cash (+)
Slide 20: Guidance ahead of the quarter and outcome
Alleima | Third quarter 2024 Guidance ahead of the quarter and outcome 20 Outcome Q3 2024 Guidance ahead of Q3 2024 Capex (Cash) SEK 602 million Approximately SEK 950 million Q1-Q3 2024 in FY 2024 Currency translation and SEK -52 million in Q3 SEK -15 million in Q3 transaction effect Total currency
Slide 21: Guidance Q4 2024 and FY 2024
Alleima 2a | Third quarter 2024 Guidance Q4 2024 and FY 2024 Capex (cash) — Estimated to approximately SEK 1,050 million for FY 2024 Currency effects (transaction and translation) — SEK-40 million on operating profit (EBIT) for Q4 2024, compared to the corresponding period last year Metal price effe
Slide 22: Outlook for the fourth quarter 2024
Alleima | Third quarter 2024 Outlook for the fourth quarter 2024 — Mixed market sentiment and slightly more difficult to assess — Positive development expected to mitigate effects from the cautious economic environment — Solid backlog in key segments — The product mix is expected to be similar to Q3
Slide 23: Summary
Summary —Mixed market sentiment and a solid backlog —Organic revenue growth —Solid EBIT margin —Improved flexibility in the organization and strengthened resilience —Strong financial position —Capacity increases towards profitable growth
Slide 24: Q&A
Alleima 24 Third quarter 2024 Q&A
Slide 25: Thank you
Alleima Thank you alleima.com
Slide 26: Disclaimer
Alleima | Third quarter 2024 * Disclaimer This presentation contains “forward-looking” statements that reflect the company’s current expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expe