Alimak Group Ab · OMXSTO:ALIG
Alimak Group Ab — Investor Day (2021)
85 slides from Alimak Group Ab's investor day presentation, 2021
Slide 1: Capital Markets Day 2021
Sapital Markets Day 2021
Slide 2: Agenda
Agenda 13.00 Alimak Group - CEO 14.35 Wind division – EVP Wind 13.20 BMU division – EVP BMU 14.55 Sustainability - CTO 13.40 Construction division – EVP Construction 15.05 Group Financials - CFO 14.00 Industrial division – EVP Industrial 15.15 Q&A 14.20 Break 16.00 Event ending 2 Presentations avail
Slide 3: Alimak Group
Alimak Group Ole Kristian Jødahl 3
Slide 4: Moving people, material and businesses safely to new heights
Introduction to Alimak Group “Moving people, material and businesses safely to new heights” 4
Slide 5: We have a strong foundation
Introduction to Alimak Group We have a strong foundation Leading market position Global footprint with a large installed base Portfolio of leading brands Strong balance sheet and cash conservation 5
Slide 6: Supported by strong trends
Introduction to Alimak Group Supported by strong trends § Urbanisation § Digitalization § Sustainability § Safety 6
Slide 7: Potential to improve performance
Introduction to Alimak Group Potential to improve performance Revenue growth target EBITA margin target Leverage target Dividend payout policy (Net debt/EBITDA) 6% 15% 2.0x 50% The Group’s mid-term target is to The Group’s mid-term target is to The Group will maintain an The Group has a target of pa
Slide 8: New Heights programme - our strategic roadmap
Introduction to Alimak Group New Heights programme - our strategic roadmap 1 2 3 Establish the base Secure margin improvements Profitable growth 2020 2021 2022-2025 8
Slide 9: Customer focused, decentralised business model and accountable divisions
Introduction to Alimak Group We have a customer focused, decentralised business model and fully accountable divisions Construction Industrial Wind BMU 27% of sales 24% of sales 23% of sales 26% of sales 12% EBITA margin 16% EBITA margin 10% EBITA margin -3% EBITA margin Numbers above are share of 20
Slide 10: A diversified and committed leadership team
Introduction to Alimak Group A diversified and committed leadership team CEO Construction Industrial Wind BMU Ole Kristian Jødahl David Batson Salomeh Tafazoli José María Nevot Mark Casey CFO Technology Service Delivery Strategy & M&A People & Culture Thomas Hendel Charlotte Brogren Patrik Sundqvist
Slide 11: Strategic enablers for value creation
Introduction to Alimak Group Strategic enablers for value creation 11
Slide 12: Increased service focus
Introduction to Alimak Group Increased service focus Our offering covers the complete asset lifecycle: Service share of Group sales rolling 12 months Q1: § Divisions responsible for the full customer journey - original 35% equipment, spare parts and services § Service Delivery organisation establish
Slide 13: Updated financial targets
Introduction to Alimak Group Updated financial targets Revenue growth EBITA margin target Leverage target Dividend payout target (Net debt/EBITDA) policy 5-7% 14-16% 2.0x 40-60% The Group’s mid-term target is to The Group’s mid-term target is to The company will maintain an The Group has a target of
Slide 14: BMU Division
BMU Division Mark Casey 14
Slide 15: Short facts about the BMU Division
BMU Division Short facts about the BMU Division Share of Group sales Installed base: Revenues rolling 12 rolling 12 months Q1: months Q1, MSEK: 26% 13 500 940 High complexity BMUs Med. complexity BMUs Low complexity BMUs Services and parts 17% of sales 47% of sales 6% of sales 30% of sales 15
Slide 16: BMU Division top global skyscrapers project reference
BMU D manntech BRR ive 900 Top 12 Global Skyscapers Project Reference 800 700 Burj Khalifa © Shanghai Tower Ping An IFC c er One World Trade CTF critic Taipei 101 Shanghai icc Dubai janghai Center NY Guangzhou Beiji Taipei World Finance Centre Hong Kong 828m 632m 555m 541m 530m 508m 492m 484m
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Slide 18: Customer case – Guangzhou Business Centre
BMU Division Customer case – Guangzhou Business Centre § 3 CoxGomyl BMUs § 375 meter high building § Order value MSEK 23 § Delivery from Spain in 2022, expected project completion in 2023 18
Slide 19: Customer case – Sydney Harbour Bridge
BMU Division Customer case – Sydney Harbour Bridge § Two motorised gantries with four Manntech BMU’s § Built in 1932, the bridge is 1149 meters in length, 48.8 meters in width and 134 meters high § Delivery from Germany in 2022, expected project completion in 2025 § Order value MSEK 335 19
Slide 20: Financial performance
BMU Division Financial performance Order intake by Quarter, MSEK: Covid impact: 384 327 Order intake 304 252 237 262 289 improving 231 225 but market uncertainty remains Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 Revenues by Quarter, MSEK: 322 288 301 Revenue 256 251 238 227 247 228 impacted by low o
Slide 21: Key trends in the BMU industry
BMU Division Key trends in the BMU industry Health, Urbanisation Digitalisation Safety, and Environment 21
Slide 22: Our strategy for profitable growth
BMU Division Our strategy for profitable growth 1 Operational Efficiencies Replacement, Refurbishment & 2 Service growth 3 Expand Product offering 22
Slide 23: Operational Efficiencies
BMU Division 1 Operational Efficiencies § Operations – Utilization, Efficiency and Lean Manufacturing § Sales Process review and optimization § Quality – TQM system 23
Slide 24: Replacement and Refurbishment
BMU Division 2 Replacement and Refurbishment Aged asset pool represents a significant emerging opportunity TRANSFORM Europe Units US Aged China Units Aged Aged Other Asia MEA Aged Aged South America Pacific Aged Aged * Aged, older than 10 years 24
Slide 25: Expand Product Offering
BMU Division 3 Expand Product Offering Current Offering Expanded offering Expanded service offering BMU range Light solutions – davits, Replacements and monorails, gantries refurbishments Service and parts Future potential - automatic Remote service reminders cleaning enabled by connected machines A
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Slide 27: Construction Division
Construction Division David Batson 27
Slide 28: Short facts about the Construction Division
Construction Division Short facts about the Construction Division Share of Group sales Installed base: Revenues rolling 12 rolling 12 months Q1: months Q1, MSEK: 27% 16 000 990 Construction equipment Rental operations Used equipment Services and parts 59% of sales 27% of sales 1% of sales 13% of sal
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Slide 30: Leading product offering
Construction Division Leading product offering Construction hoists Mast climbing work platforms Transport platforms Scaffolding lift Core offering Growth potential Growth potential New offering 30
Slide 31: Global footprint to serve our customers
Construction Division Global footprint to serve our customers Footprint Customers Sales and service office Distributor § Manufacturing in China, Sweden and Spain § 21 countries sales and service by own sales companies § 47 countries sales and service by distributors 31
Slide 32: Customer case – One and Two Sydney Harbour
Construction Division Customer case – One and Two Sydney Harbour 2 x Common towers and 9 construction hoists underway to Lendlease AU in 2021, to total value of ü Sustainability through optimizing the MSEK 97 solution and offering. Productive Logistics solution ü Application Engineering, Project Mgm
Slide 33: Financial performance
Construction Division Financial performance Order intake by Quarter, MSEK: Covid impact: 346 337 374 300 254 255 291 245 Strong OI 216 in Q1 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 Revenues by Quarter, MSEK: 419 350 343 273 Revenue 251 256 246 255 234 impacted by Covid Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 34: Key trends in the construction industry
Construction Division Key trends in the construction industry Urbanisation Health, Safety & emerging Digitalisation & markets Environment 34
Slide 35: Strategy for profitable growth
Construction Division Strategy for profitable growth Expand geographical 1 footprint 2 Broaden our customer offering Digitalisation of the customer 3 value proposition 35
Slide 36: Expand geographical footprint
Construction Division 1 Expand geographical footprint § Strengthen sales company and distribution model § Expand rental and used to targeted markets § China for China 36
Slide 37: Broaden our customer offering
Construction Division 2 Broaden our customer offering Product offering: Services offering: High § Improvements in the core Construction § Refurbishment hoist § Application Engineering § Project management § Expansion of light Mast climbing work § Install, Jump and Dismantle Capacity platform and Tra
Slide 38: Digitalisation of the customer value proposition
Construction Division 3 Digitalisation of the customer value proposition § Pre-purchase (reach and engage) § Customer value eco system includes – Utilization analysis to drive productivity BIM Operational Parts-on-line models data – Increased sustainability by right sizing the logistics solution Fle
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Slide 40: Industrial Division
Industrial Division Salomeh Tafazoli 40
Slide 41: Short facts about the Industrial Division
Industrial Division Short facts about the Industrial Division Share of Group rolling 12 Installed base: Revenues rolling 12 months Q1: months Q1, MSEK: 24% 8 000 908 Heavy industry Oil & Gas and Marine Logistics Special Engineering 61% of sales 34% of sales 4% of sales 1% of sales 41
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Slide 43: After Sales an integral part of the business model
Industrial Division After Sales an integral part of the business model Example of Industrial After Sales Revenue split 2020 Revenue Life Cycle(1) 100% New Sales 42% 25% 58% ale s ce rts ir s nt ue After Sales S nan e pa epa hme ven Ne w int e ar R bis Re Ma Sp e fur R Service & Maintenance Spare par
Slide 44: Strong, global footprint
Industrial Division Strong, global footprint • 22 countries sales and service by own sales companies • 52 countries sales and service by distributors 44
Slide 45: Financial performance
Industrial Division Financial performance Order intake by Quarter, MSEK: Covid impact: 298 272 256 255 231 209 217 246 Continued 187 increased activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 Revenues by Quarter, MSEK: 312 Covid-19 290 269 269 248 245 221 203 212 effect – low order intake in Q1 Q2
Slide 46: Key trends in the industry
Industrial Division Key trends in the industry Health, Safety Geographical Service & Development Environment 46
Slide 47: Strategy for profitable growth
Industrial Division Strategy for profitable growth Segment focus – outside in 1 perspective Geographical footprint – 2 leverage in mature markets, expand in merging markets 3 Best in class service 47
Slide 48: Segment focus – outside in perspective
Industrial Division 1 Segment focus – outside in perspective Segment focus in the complete organisation § Segment offering § Strengthening product management § Sales and Service Training Heavy Industry Oil & Gas and Marine Logistics Special Engineering Core offering Growth potential Under investigat
Slide 49: Geographical footprint
Industrial Division 2 Geographical footprint Leverage in mature markets, expand in merging markets § Sales channels strategy § Initiate local initiatives to target existing units and plants § Traction competence center 49
Slide 50: Best in class service
Industrial Division 3 Best in class service § Service packages and service sales § Enhance local service presence – Service hubs § Digitalization and sustainability – Remote monitoring and preventive maintenance 50
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Slide 52: Wind Division
Wind Division José María Nevot 52
Slide 53: Short facts about the Wind Division
Wind Division Short facts about the Wind Division Share of Group sales Installed base: Revenues rolling 12 rolling 12 months Q1: months Q1, MSEK: 23% 37 500 832 Service lifts Ladders Internals Services & PPE 33% of sales 22% of sales 21% of sales 24% of sales 53
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Slide 55: Global footprint with focus on growth markets
Wind Division Global footprint with focus on growth markets § Manufacturing in: – USA – Brazil – Spain – Denmark – China § Sales and service in: – UK – Germany – South Korea – India – Australia 55
Slide 56: Solid customer base
Wind Division Solid customer base Tower manufacturers OEM Wind turbines Utilities and service companies 56
Slide 57: Vestas customer case
Wind Division Vestas customer case 157 Dolphin lifts delivered to Vestas offshore project, to total value of MSEK 12 ü Lifts for offshore wind turbines ü Minimising turbine downtime ü Compliance with CE safety regulations ü Engineering support for integration in the towers ü Training and support of
Slide 58: Financial performance
Wind Division Financial performance Order intake by Quarter, MSEK: Covid impact: 226 252 235 224 225 230 195 164 Exit from 152 low-profit internals Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 Revenues by Quarter, MSEK: 277 234 240 185 211 224 194 186 Low 172 backlog into 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 59: Key trends in the wind industry
Wind Division Key trends in the wind industry Reduction of Higher Wind power Levelized cost capacity growth of Energy turbines 59
Slide 60: Strategy for profitable growth
Wind Division Strategy for profitable growth 1 Leadership in core business 2 Growth in safety and services Review of potential 3 expansion in renewables 60
Slide 61: Leadership in core business
Wind Division 1 Leadership in core business Growth in core business China for China § New generation of innovative, § Remain among top 3 in China digital and sustainable lifts § Develop a pure Chinese § Extend offering product strategy and local R&D § Lean and sustainable operations 61
Slide 62: Growth in safety and services
Wind Division 2 Growth in safety and services Growth in safety § Extend offering of safety products § Develop range of safety products for China Growth in services § New value proposition with digital services § Retrofit of lifts with upgrade kits § Extend service footprint 62
Slide 63: Review of potential expansion in renewables
Wind Division 3 Review of potential expansion in renewables Extend activities out of the wind tower with new technologies for blade services § Growing market size related to total cumulative power capacity § Regular blade inspections and repairs increase the profitability § Visual and thermal inspec
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Slide 65: Sustainability
Sustainability Charlotte Brogren 65
Slide 66: We strive to make a difference in the world
Sustainability We strive to make a difference in the world Sustainable relationships Sustainable solutions Sustainable operations 66
Slide 67: Focusing on 8 Sustainable Development Goals
Sustainability Focusing on 8 Sustainable Development Goals 67
Slide 68: Aim to reduce our CO2 footprint by 30% across our value chain by 2025
Sustainability Aim to reduce our CO2 footprint with 30% cross our value chain by 2025* 68 * Scope 3, normalized based on turn-over, reduction compared to 2019
Slide 69: Sustainable Relationships
Sustainability Sustainable Relationships § We conduct business in a responsible manner, promoting an inclusive and engaging workplace, and expect business partners to do the same § We engage in relevant ecosystems to be part in the transformation towards increased sustainability in the sectors we ar
Slide 70: Sustainable Solutions
Sustainability Sustainable Solutions § Our products and solutions are designed with the aim to minimise the impact on the environment throughout their lifetime § Through our products and solutions, we help our customers to increase productivity and minimizing their CO2 footprint § Safe and reliable
Slide 71: Sustainable Operations
Sustainability Sustainable Operations § Minimise the climate impact across all our operations § Improve resource efficiency by digital means § Safe, inclusive and engaging workplace § Attractive for new talent 71
Slide 72: Aim to reduce our CO2 footprint by 30% across our value chain by 2025
Sustainability Aim to reduce our CO2 footprint with 30% cross our value chain by 2025* 72 * Scope 3, normalized based on turn-over, reduction compared to 2019
Slide 73: Group Financials
Group Financials Thomas Hendel 73
Slide 74: Order intake development
Group Financials Order intake development MSEK 1,500 Q1 y-o-y § Organic order growth 7% 1,101 1,150 1,039 1,073 1,067 1,073 962 § 3 of 4 Divisions show growth 1,000 888 845 § Division Wind more selective 500 0 Q1 -19 Q2 -19 Q3 -19 Q4 -19 Q1 -20 Q2 -20 Q3 -20 Q4 -20 Q1 -21 74
Slide 75: Revenue development
Group Financials Revenue development MSEK 1,500 Q1 y-o-y 1,194 § Organic revenue growth -1% 1,167 1,143 1,084 976 § Good leverage potential from 1,000 916 916 933 846 increased revenues 500 0 Q1 -19 Q2 -19 Q3 -19 Q4 -19 Q1 -21 Q2 -20 Q3 -20 Q4 -20 Q1 -21 75
Slide 76: Group Service volume development 2020 & 2021
Group Financials Group Service volume development 2020 & 2021 Service, MSEK Orders Revenues % of total Revenues 420 381 328 341 340 320 323 316 309 300 37.3% 35.8% 36.5% 31.7% 34.9% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Continued focus on Service business in all recently formed Divisions 76
Slide 77: Phase 2 New Heights - secure margin improvements
Group Financials Phase 2 New Heights - secure margin improvements § Profit before growth One-off costs 0 10 20 30 40 50 60 70 § Gain efficiencies from new organisation Inventory write-offs § Improve working capital management Production § Increased room to continue investment in technology and digit
Slide 78: Margin improvements and cost savings on track
Group Financials Margin improvements and cost savings on track MSEK EBITA % EBITA % 180 14.4% 14.0% 15 Q1 y-o-y 160 12.9% 11.7% § 3 of 4 Divisions according to 140 11.2% plan 120 8.7% 8.9% 9.2% 10 § Improved Gross Margin >1% 100 7.3% § Operating expenses 14% lower 80 172 151 152 § All key parameters
Slide 79: Strong focus on gross margin
Group Financials Strong focus on gross margin Revenues GM-% % 40 30 20 32.1% 34.5% 32.9% 35.2% 31.8% 32.1% 31.4% 31.9% 32.9% 10 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Target to improve Revenue Gross Margin-%: Improve bottom-line § Pricing Secure further investments
Slide 80: Short term outlook 2021
Group Financials Short term outlook 2021 § Expecting improved business climate in H2 2021, with continued COVID-19 impact in Q2 § Expected lower volumes full year in Division Wind, tower internals: – Orders ~ 60 MSEK lower than last year – Revenues ~100 MSEK lower y-o-y 80
Slide 81: Stable cash conversion & strong balance sheet
Group Financials Stable cash conversion & strong balance sheet Net debt/EBITDA, ratio Cash Conversion 2.50 3.5 2.00 3.0 2.5 1.50 2.0 1.5 1.00 1.0 0.50 0.5 0.0 0.00 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Slide 82: Total shareholder return
Group Financials Total shareholder return Market cap (MSEK) 9000 8000 7000 6000 5000 § Total shareholder return per year 4000 3000 2016-2020: ~ 10% 2000 1000 – Market cap yearly growth 8% 0 2016 2017 2018 2019 2020 2021 April – Average dividend yield 2% 2016 2017 2018 2019 2020 Dividend per share 1.
Slide 83: Capital allocation
Group Financials Capital allocation § Creating shareholder value by investing in organic growth – CAPEX – Working Capital Investments – Investments in product portfolio & Selective in organic Dividends M&A solutions to increase competitiveness growth § M&A – bolt on acquisitions in baseline plan § D
Slide 84: Solid roadmap to deliver on our financial targets
Group Financials Solid roadmap to deliver on our financial targets Strong global market position and Revenue growth of 5-7% portfolio of brands Large installed base - service revenue EBITA margin of 14-16% growth opportunities New Heights Programme phase 3 - Net debt/EBITDA ratio of around 2x profit
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