Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Investor Day (November 2024)
64 slides from Alimak Group Ab's investor day presentation, Nov 20, 2024
Slide 1: Investor Update
Investor Update November 2024 Investor Update November 20, 2024
Slide 2: Safety is our number 1 priority
Safety is our number 1 priority Investor Update November 20, 2024
Slide 3: Agenda
Agenda 14.00 Welcome 14.00 Introduction 14.05 Alimak Group New Heights update – Ole Kristian Jødahl 14.25 Group financials – Sylvain Grange 14.40 Digitalisation journey – Charlotte Brogren 14.55 Q&A 15.15 Coffee break 15.35 Facade Access - Transformation update, followed by short Q&A – Philippe Gast
Slide 4: Investor Update November 20, 2024
Investor Update November 20, 2024
Slide 5: New Heights program
New Heights program 1 2 3 Establish the base Secure margin improvements Profitable growth 2020 2021 2022-2025 Investor Update November 20, 2024
Slide 6: Moving people, material and businesses safely to new heights
“Moving people, material and businesses safely to new heights” Investor Update November 20, 2024
Slide 7: Our foundation – the strategic house
Our foundation – the strategic house Results Sustainable Sustainable solutions Sustainable operations relations People development Take Move fast and ownership deliver Operational Technology excellence leadership Challenge the Be inclusive limits Customer obsession Investor Update November 20, 2024
Slide 8: A decentralized structure with five divisions
A decentralized structure with five divisions Height Safety Facade Access Construction Industrial Wind & Productivity Solutions Investor Update November 20, 2024
Slide 9: A well diversified, resilient industrial Group
A well diversified, resilient industrial Group ▪ WIND fixed ▪ FA on its way to be fixed ▪ Integrated Tractel ▪ Created focus and speed in IND ▪ Made CON more resilient Investor Update November 20, 2024
Slide 10: More resilient Construction division
More resilient Construction division ▪ Truly global ▪ Own rental in selected markets ▪ Used sales ▪ Service and spare parts ▪ Widened scope – product range and market perspective ▪ Continued investments ▪ Well positioned for market rebound Investor Update November 20, 2024
Slide 11: Delivering profitable growth
Delivering profitable growth R12M Order intake by Quarter R12M Adjusted EBITA by Quarter BSEK % 6.7 7.0 6.9 6.9 6.8 16.7% 6.1 5.6 4.8 4.1 4.3 3.7 3.8 3.8 12.9% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 2021 2022 2023 2024 Investor Update Novemb
Slide 12: En route to deliver on our second set of targets
En route to deliver on our second set of targets Financial targets Revenue growth EBITA margin Leverage ratio Dividend pay-out ratio 6-10% >18% <2.5x 40-60% Sustainability targets CO 2 reduction Employee LTIFR ESG assessment of direct to 2025 * NPS Injury rate per mn material suppliers** working hou
Slide 13: New Heights 2.0 – the next level
New Heights 2.0 – the next level 2026-2030 2025 Accelerating profitable growth Updating division strategies 2024 Market analysis Investor Update November 20, 2024
Slide 14: Urbanization is boosting demand for vertical access
Share of world population living in urban areas % Urbanization is 56% 68% boosting demand for 43% vertical access 34% solutions 1960 1990 2020 2050E Source: World bank Investor Update November 20, 2024
Slide 15: Increased safety regulations and focus
Increased safety regulations and focus 4 out of the top 10 OSHA violations are related to height safety 1. Fall protection – General Requirements 2. Hazard Communication 3. Ladders 4. Scaffolding 5. Powered Industrial Trucks 6. Lockout/Tagout 7. Respiratory Protection 8. Fall protection – Training r
Slide 16: Continued wind growth
Continued wind growth Expected growth in number of lifts CAGR + 7% 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: Internal estimate Investor Update November 20, 2024
Slide 17: Widening the addressable market
Widening the addressable market Market size in relation to construction hoists Construction hoists 1x Tower Cranes >15x Scaffolding >100x Investor Update November 20, 2024
Slide 18: Using digitalization to drive change
Using digitalization to drive change Setting a new safety standard in the ecosystem Construction Federation Construction and Other stakeholders rental companies Interest and advocacy Groups Investor Update November 20, 2024
Slide 19: Alimak Group – a sustainable, resilient, highly profitable growing industrial company
Leading market Alimak Group – a Supported by mega trends position in focused niches sustainable, Global footprint with Acquisition resilient, highly a large installed base opportunities profitable growing Attractive financial Proven business metrics and strong industrial company model financial posi
Slide 20: Investor Update November 20, 2024
Investor Update November 20, 2024
Slide 21: Diversified Group
Diversified Group Division share of Order intake Geographical split of Order intake R12 Q3 2024 R12 Q3 2024 Wind 10% Facade Access 26% Americas 32% Industrial 22% Europe and 48% Middle East 23% 19% Construction 20% Height Safety & Asia and Pacific Productivity Solutions Investor Update November 20,
Slide 22: Profitability improvements R12
Profitability improvements R12 Adjusted EBITA margin per division, R12 % Q3 2021 Q3 2024 FA 2.4% 9.2% ▪ FA - transformation program CON 16.9% 15.6% ▪ CON – resilient despite headwinds HSPS N.a. 18.6% ▪ HSPS – stable and profitable IND 20.8% 24.0% ▪ IND – New Heights WIND 11.2% 18.5% ▪ WIND – complet
Slide 23: Increasing GM and adj. EBITA margin
Increasing GM and adj. EBITA margin Cost and margin development R12 45 40 GM% 40% 35 30 25 SG&A% 20 Adj. EBITA% 15 10 5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Investor Update November 20, 2024
Slide 24: Increasing service
Increasing service Service revenue R12 MSEK 3,000 2,500 2,000 1,500 1,000 500 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Investor Update November 20, 2024
Slide 25: Strong cash generation
Strong cash generation Operating cash flow R12 Quarter MSEK MSEK ▪ Capex light model 400 1,200 350 ▪ Stable working capital 1,000 300 as a % of revenue 800 250 200 600 150 400 100 200 50 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Investor Update November 20, 2024
Slide 26: Fast deleveraging
Fast deleveraging Leverage Capital allocation Net debt / EBITDA 10 Investments in product portfolio and operational 8.0 8 efficiency 6 Ramp-up M&A 4 3.7 3.4 Target <2.5x 2.5 2.3 2.3 2.3 2.1 2 0.8 0.6 0.6 0.8 1.0 Deliver according to 0 dividend policy Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022
Slide 27: Stable ROCE over time
Stable ROCE over time Return on capital employed ROCE % ROCE excl. goodwill 24% 25% 25 24% 24% 22% 23% 22% 22% 21% 21% 21% 20 20% 18% 15 11% 11% 11% 11% 10% 10% 10% 10% 10 9% 9% 9% 9% 9% 5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Investor Update November 20, 2024
Slide 28: Conclusions
Conclusions Revenue growth 6-10% ▪ Creating shareholder value EBITA margin ▪ Cost effectiveness >18% ▪ Appropriate capex Leverage ratio ▪ Working Capital management <2.5x ▪ And targeted value-creative M&A Dividend pay-out ratio 40-60% Investor Update November 20, 2024
Slide 29: Investor Update November 20, 2024
Investor Update November 20, 2024
Slide 30: Global team of digital competencies
Global team of digital competencies Investor Update November 20, 2024
Slide 31: Supporting the full life cycle
Supporting the full life cycle Finding the Usage of Maintaining right product the product the product Investor Update November 20, 2024
Slide 32: BIM to find the right product
BIM to find the right product Building Information Optimal solutions Modeling (BIM) Gallery ▪ +90 models ▪ +8000 downloads ▪ productivity ▪ logistics ▪ sustainability Investor Update November 20, 2024
Slide 33: Market place for used equipment
Market place for used equipment ▪ Upgrading functionality ▪ Extending the lifetime ▪ New business model ▪ Circular economy Investor Update November 20, 2024
Slide 34: Proprietary control system
Proprietary control system ▪ + 25 000 machines in the field ▪ Control and traceability of installed base ▪ After sales business Investor Update November 20, 2024
Slide 35: Smart service lifts – OPEX and CO2 savings
Smart service lifts – OPEX and CO2 savings ▪ Remote access ▪ Control of usage ▪ Optimized maintenance – Decreased turbine downtime – OPEX savings – 30% less CO2 emissions Investor Update November 20, 2024
Slide 36: Safe use of machines across the lifetime
Safe use of machines across the lifetime ▪ New standard for calculation reports ▪ Installation guides ▪ Digital logs with daily inspections ▪ Usage data of machines collected and visualized in the customer portal Investor Update November 20, 2024
Slide 37: Condition based maintenance
Condition based maintenance Moving from PLANNED maintenance based on predefined schedules to CONDITION based maintenance based on asset health indicators Investor Update November 20, 2024
Slide 38: Making this happen
Making this happen Acquisitions + Partnerships + Collaborations Technology platform for the Group Investor Update November 20, 2024
Slide 39: Conclusions
Conclusions ▪ Easy to do business with us ▪ Improved safety ▪ Increased productivity ▪ Lower carbon footprint Investor Update November 20, 2024
Slide 40: Investor Update November 20, 2024
Investor Update November 20, 2024
Slide 41: Wide product and geographical solutions offering
Wide product and …with geographical solutions offering… diversity % of 2024 YTD Sep revenues Custom BMU Service Anchors Americas EMEA APAC 39% 41% 20% Modular BMU Davits Mobile gantries Standard series BMU Self powered platforms Monorail systems Investor Update November 20, 2024
Slide 42: Established the base
Established the base ✓ Re-organisation ✓ Tendering Discipline with new pricing and terms ✓ Project Management skills & Project Discipline ✓ Manufacturing footprint consolidation Investor Update November 20, 2024
Slide 43: Manufacturing footprint consolidation
Manufacturing footprint consolidation CONSOLIDATING the assembly activity in Germany to the manufacturing facility in Spain ▪ Expected annual cost savings of 60 MSEK from 2025 onwards ▪ Total one-off costs estimated to 95 MSEK ▪ Expect a 30 MSEK capital gain on the sale of the building Investor Upda
Slide 44: Margin improvements and bidding focus on profitable jobs
Order Intake R12M, BSEK Margin 1.2 1.3 1.4 1.6 1.6 1.7 1.8 1.7 1.7 1.8 1.0 1.0 1.0 improvements and bidding Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 focus on Adj. EBITA margin R12M, % profitable jobs 8.3% 9.2% 6.7% 6.3% 7.1% 5.2% 5.8% 3.5% 3.4% 4.1% 4.1% 2.4% 2.8% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 45: Next phase profitable growth
Next phase profitable growth ▪ Growth in the full product portfolio ▪ Deploy service strategy – RRR ▪ Integrated Design Services ▪ Infrastructure push ▪ Innovation next phase Investor Update November 20, 2024
Slide 46: Asset lifecycle
Asset lifecycle BMUs Davits + Self Powered Platform Machine Service Wire rope Reburbishment Total replacement Investor Update November 20, 2024
Slide 47: Deploying our sustainable RRR strategy
Deploying our sustainable RRR strategy Refurbishment Retrofit Replacement Maintenance of aging units Enhanced safety & operations Replacement of obsolete equipment ~40% of our installed assets are >20 years old Investor Update November 20, 2024
Slide 48: Integrated Design Services
Integrated Design Services ▪ Design consultancy – new revenue stream ▪ 3-6 months faster and cheaper (savings on the engineering) for the client ▪ Higher conversion rate for FA ▪ Launched in NAM end of 2023 ▪ Next phase EMEA and APAC Investor Update November 20, 2024
Slide 49: Infrastructure push
Infrastructure push Bridges Energy Example: Gordie Howe bridge, Houston Ship Example: ITER nuclear power plant channel bridge Investor Update November 20, 2024
Slide 50: Driving innovation
Driving innovation BMUs with multi axis controls Traditional Mechatronic ▪ 20% less weight design design ▪ Easier transportation & installation ▪ Higher operational flexibility Multi axis controls ▪ 30% less carbon footprint Investor Update November 20, 2024
Slide 51: Conclusions
Conclusions ▪ Transformation well under way and already delivering results ▪ Regional Management structure and unit specialization (services vs. new equipment) very positive ▪ Enablers are in place – Marketing with facadeaccesssolutions.com – Innovation with Components optimization & new technology
Slide 52: Investor Update November 20, 2024
Investor Update November 20, 2024
Slide 53: Delivering profitable growth
Delivering profitable growth New equipment Order Intake R12M, BSEK CAGR 17% 1.5 1.5 1.5 1.3 1.4 1.4 1.4 1.2 1.3 1.2 1.1 0.9 1.0 Service, repairs and refurbishments Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Adj. EBITA margin R12M, % 23% 24% 24% 24% 22% 23% 21% 21% 20% 20% 20% 19% 19% Spare parts Q3 Q4 Q
Slide 54: Attractive growth in most segments
Attractive growth in most segments 5-6% CAGR 5-6% CAGR Ports 2022-2030 Mining 2024-2028 4-5% CAGR 3-4% CAGR Power Next 5-10 years Marine 2023-2030 3-4% CAGR Offshore wind +20% CAGR Oil & Gas 2022-2030 2023-2030 support vessels 5-6% CAGR Food / 4-5% CAGR Cement 2022-2030 2024-2029 Agriculture Investo
Slide 55: Innovation in customization
Innovation in customization Investor Update November 20, 2024
Slide 56: Gangway elevator - launched
Gangway elevator - launched ▪ High complexity product developed in close collaboration with customers ▪ Sales success with substantial aftermarket potential Investor Update November 20, 2024
Slide 57: Replacement – upcoming launch
Mini/Alicom Replacement – upcoming launch ▪ Capture high market share for replacement opportunities, + 2,000 units in installed base ▪ Win-win-win for environment, customers and Alimak Investor Update November 20, 2024 Alicom Scando Mini
Slide 58: Closer to customers
Closer to customers ▪ Actively recruiting internal sales engineers to cover geographical white spots ▪ Improving indirect sales partner coverage, competence and management ▪ Service technicians not only to service lifts but also to identify sales opportunities Investor Update November 20, 2024
Slide 59: Growing our aftermarket
Growing our aftermarket Parts and service sales per installed elevator Actions for further growth Index, R12 114 115 114 108 110 111 ▪ Service technician 100 103 recruitment ▪ Service Protocol roll-out ▪ Training of partners ▪ Supply chain improvements ▪ Parts Pricing Strategy ▪ Parts Online ▪ MyAli
Slide 60: Driving operational efficiency
Driving operational efficiency ▪ Continue to drive safety improvements in our factories ▪ Improved Sales and Operations planning ▪ Productivity and cost efficiency focus insourcing vs. outsourcing ▪ Continue with asset light Traction approach while driving sourcing improvements Investor Update Novem
Slide 61: Conclusions
Conclusions ▪ Supported by underlying market growth ▪ Potential to take market share by customer segment focus and geographical expansion ▪ Continue to drive innovation – new products as well as customization ▪ The aftermarket is there – we can grow it ▪ We have the footprint to support our sustaina
Slide 62: Capital Markets Investor Update Day
Capital Markets Investor Update Day 62 November June 14, 2023 20, 2024
Slide 63: Concluding remarks
Concluding remarks ▪ Taken ownership ▪ Become market and customer driven ▪ Invest in: – Sales and service resources – Products and solutions – Digitalization A sustainable, resilient and highly profitable growing industrial company Investor Update November 20, 2024
Slide 64: Thank you
Thank you Investor Update November 20, 2024