Alleima Ab · OMXSTO:ALLEI
Alleima Ab — Q2 2024 Earnings Presentation
25 slides from Alleima Ab's earnings presentation, 2024
Slide 1: Alleima
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Slide 2: Q2 highlights
Second quarter 2024 Alleima | Q2 highlights Revenues Organic revenue Flat organic revenue growth on high sant epamith comparables — Improved market sentiment — Solid and growing backlog Resilient earnings — Broader EBIT contribution Adj. EBIT Adj. EBIT margin — Strong cash flow (SEK M) Staying with
Slide 3: Market development
Alleima | Second quarter 2024 Market development — _ Improving market sentiment — Cautiously improved macro environment Perceived year on year underlying market demand trend ‘CHEMICAL AND: INDUSTRIAL OILAND GAS INDUSTRIAL PETROCHEMICAL HEATING ‘CONSUMER Year on year underlying demand trend % of Grou
Slide 4: Alleima
Alleima ― ― ― 5 000 4 000 ― ― 3 000 ― 2 000 1 000 0
Slide 5: Alleima
Alleima ― ― ― 1 400 1 200 1 000 ― ― 800 ― 600 400 200 0
Slide 6: Strip
Alleima | Second quarter 2024 Strip Continued improved demand — Organic order intake growth of 0% R12 — Organic revenue growth of -6% — Book-to-bill of 96% R12 Improved cost position — Improved margins yoy and sequentially — Still damped by low deliveries — FX tailwind of SEK 2 million yoy 6 SEK M Q
Slide 7: Outlook for the third quarter 24
Alleima | Second quarter 2024 | 7 \ Outlook for the third quarter 2024 — Improving market sentiment in a somewhat cautious economic environment — Solid backlog in key segments — The product mix is expected to be similar to Q2 — Normally seasonally lower order intake, revenues and adjusted EBIT-margi
Slide 8: Summary
Summary —Improved market sentiment —Flexibility in our organization —Improved resilience —Order backlog remains solid —Consistent strategy execution towards profitable growth
Slide 9: Alleima
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Slide 10: A world-leading advanced materials company
A world-leading advanced materials company — High value-added products in advanced stainless steels and special alloys as well as products for industrial heating — Strong market positions across a wide range of niche end- markets, serving ten customer segments — Fullyintegrated value chain, from ind
Slide 11: Premium offering across three divisions
Alleima | Tube Seamless tubes and other long products in advanced stainless steels used in OG, nuclear & other energy-related end-markets as well as chemicals, automotive and aerospace Market share Example market positions #1Umbilical Tubing ‘#1 Aerospace Titanium Tube Example products Umbilical ~ H
Slide 12: Fully integrated value chain
Customer Need Identification Research & Primary Melting Hot Working Cold Working Finishing Sales & Development Marketing Ensure Enabling close Secure product Prerequisite for new independence and control customer collaboration quality materials and product of value chain development
Slide 13: Global production footprint and go-to-market strategy
Alleima | 13 A Global production footprint and go-to-market strategy Sandviken, Sweden One of Sweden's — Tube mills (Seamless largest industrial sites in tube and pipe, steam terms of ground area. generator tubing, = 2 with c. 3,000 people Zirconium tubing) Ss SS = =~ _worl Sales in QO eres) Deadcon
Slide 14: Focused strategy execution for profitable growth
Alleima | Profitable Growth — Capitalize on the megatrends of energy transition, energy efficiency, electrification, medical growth and capture O&G rebound — Expand through M&A within select key verticals and niches to enable accelerated growth and its diversification across products and end markets
Slide 15: A growth strategy built to capitalize on global megatrends
Alleima | A growth strategy built to capitalize on global megatrends... Changing demographics — Global population growth — Increased consumption and energy demand — Share of people aged +60 years is expected to increase — Increased demand for health care and medical solutions Increasing and changing
Slide 16: Our markets are expected to grow at 7% CAGR until 2027
Our markets are expected to grow at 7% CAGR until 2027... Customer segments growth CAGR 2022-2027 * Chemical and Petrochemical CAGR7% Medical CAGR9% Consumer CAGR 5% Oil and Gas CAGR 5% Hydrogen and Renewable Energy CAGR 49% Industrial Heating CAGR 8% Industrial Mining and CAGR 6% Construction CAGR
Slide 17: Prioritized segments in focus for capital allocation
Prioritized segment Prioritized segments in focus for capital al locat ion Four prioritized segments Hydrogen and Chemical and Petrochemical Growth Renewable Energy Hydrogen and Renewable . Energy Industrial Medical Heating Medical Chemical and 4 Industrial Heatin Petrochemical g Principles for capi
Slide 18: Growth investments and acquisitions continue to strengthen the company
Alleima | | 18 Growth investments and acquisitions continue to strengthen the company Value M&A v¥ Completed © Capex/ growth investments fl Industrial Heating Medical Hydrogen and Renewable Energy oO Chemical and Petrochemical Transportation (Aerospace) Summerill, US 'Thermaltek, US
Slide 19: Improved product mix with higher revenues from targeted segments
..indicating an improved product mix with higher revenues from targeted segments... Current revenue split Revenue split ambition** Grow in line with or above targeted end markets — Includes targeted segments as well as attractive niches across the business Increased share of revenues © the targeted
Slide 20: Financial background — focus on resilience
Alleima | | 20 A Financial background — focus on resilience Organic growth Order intake Revenues SEKM @q © ~@ © SEKM 22130 21684 20669 20135 48.405 19755 16 x 5 681 15.654 P E 43925 13847 0 2019 a | 2022 2023 © @2.2024RI2 2019 2020 2021 2022 2023 © Q22024R12 Adj. EBIT and margin % Free operating cas
Slide 21: Note: Historical numbers are restated for divested or discontinued businesses, as well as treating
25 000 20 000 15 000 10 000 5 000 0 Note: Historical numbers are restated for divested or discontinued businesses, as well as treating Sandvik as an external customer.
Slide 22: Performance vs. financial targets
Alleima | Performance vs. financial targets Organic growth Deliver profitable organic revenue growth in line with or above growth in targeted end- markets over a business cycle Capital Structure Anet debt to equity ratio below 0.3x % 14 12 10 Average 1% On ROD 2022 2023 22 Earnings Adjusted EBIT mar
Slide 23: Nature of the business — metal price effect
Alleima | |* Nature of the business — metal price effect Metal price trend and how it affects different measures A —|lsolating the effect from metal price changes in the business where market price for metal has a direct impact on pricing. —At constant volumes, mix and lead time the effects can be d
Slide 24: Winning platform set to unlock shareholder value
Alleima 24 Winning platform set to unlock share holder value Premium offering with solid market positions and diverse customer segment exposure Fully integrated value chain with prominent metallurgy expertise and global footprint Multiple and tangible levers to deliver profitable growth, capitalizin
Slide 25: Thank you
Alleima Thank you alleima.com 1\ Alleima