Alimak : Delårsrapport Q1 2024 Presentation

Alimak Group

25 April 2024

Ole Kristian Jødahl, CEO

Sylvain Grange, CFO

Alimak Group - a diversified global industrial company

Highlights

• Leading provider of sustainable vertical access and working at height solutions
• 3,000 employees, sales in +120 countries, presence in 28 countries
• Decentralised organisation with 5 customer-centric divisions

Alimak Group entities

Drivers for success

Supported by global trends

Leading market position in

focused niches

Global footprint with a large

installed base

Spare parts and service

Strong balance sheet and cash conversion

2

New Heights programme - our strategic roadmap

1	2	3
Establish the base	Secure margin improvements	Profitable growth
2020	2021	2022-2025

3

Financial targets and dividend policy

Investment in sales & marketing, product &

service development and M&A

Operational efficiency, synergies, and Facade

Access improvement

Strong focus on working capital improvements

and limited capex need

Dividend pay-out ratio of 40-60%

Revenue growth

6-10%

EBITA margin

>18%

Leverage ratio

<2.5x

4

Sustainability targets

CO2 reduction	Employee	LTIFR	ESG assessment of
to 2025 *	NPS	Injury rate per mn	direct material
		working hours	suppliers**
30%	>40	<2	>80%

As of April 2024, we are in

"commitment" status for

Science Based Targets

• Scope 1,2 3, normalized based on turn-over, reduction compared to 2019
• Corresponding to 80% of direct material spend

5

Business update - Q1	FOR INTERNAL USE ONLY
A mixed start to the year	Q1

• Still facing a challenging market impacted by the persistently high interest rates and geopolitical uncertainty
• Variations between the divisions in the quarter
• Group order intake was on par with our revenue, meaning that our order book remains on a high level
• Our diversification, global footprint and customer focus bring resilience, and adjusted EBITA margin ended on a solid 16.4% in the quarter
• Strong cashflow, with an increase of 99% year-over-year

6

Group quarterly summary	Q1

▪	Order intake was MSEK 1,729, -8%(-7% organically)			Order intake & revenue
	‒ Lower order intake in the Facade Access, Industrial	MSEK
	2 400								8 000
	and Wind divisions	2 100								7 000
		1 800								6 000
	‒ Good order intake in the Construction division	1 500								5 000
	1 200								4 000
		900								3 000
▪ Revenue was MSEK 1,736, -1% (0% organically)	600								2 000
300								1 000
	‒ Low revenue in the Construction division due to the	0								0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
	soft order intake in Q4 2023			2022				2023		2024
		Order intake				Revenue
			Order intake R-12			Revenue R-12

‒ Strong revenue in the Industrial division	EBITA adj & EBITA adj %

• EBITA adj. was MSEK 285 (289), margin at 16.4% (16.6)
• • Continued margin improvement in the Facade Access division
  • Significantly lower margin in the Construction division
  • Strong result in the Industrial and Wind divisions

								%
360								22
								20
300								18
240								16
							14
180								12
							10
120								8
							6
60								4
								2
0								0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		2022			2023			2024
EBITA adj.		EBITA adj. %		EBITA adj. R-12 %

7

Service order intake and revenue	Q1

• Service is a key component of the New Heights value creation programme
• • Creates resilience
  • Significant part of all divisions
  • We continue to actively drive growth initiatives

Share of order intake	Q1	Share of revenue
56			62
		%
%	44		38
	%
			%
Equipment	Service		Equipment	Service

Service order intake & revenue

MSEK		Service order intake & revenue		MSEK
1 000								3 000
900								2 500
800
700								2 000
600
500								1 500
400								1 000
300
200								500
100
0								0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		2022				2023		2024

Order intake		Revenue	Order intake, R12	Revenue, R12

8

Facade Access	Q1

▪ Order intake was MSEK 423, -14%(-14% organically)		Order intake & revenue
▪ Order intake was MSEK 512, +41 % (+24% from
	‒ The market for high complexity solutions (BMUs) is									MSEK
	acquisitions. +18% organically)	600								2 500
		still challenging, while the market for medium and
	‒ An all-time high for the division	500								2 000
		low complexity solutions continued to develop well
		400								1 500
	‒ Good growth in both new equipment and	300
	‒ Growth in the service and retrofit segments in all	200								1 000
		service
		100								500
		geographies	0								0
	‒ All new orders in line with our stricter tender	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
▪		proces es and higher margin requirements		2022					2023		2024
	Revenue was MSEK 485, 0% (0% organically)	Order intake		Revenue	Order intake R-12	Revenue R-12
▪ Revenue was MSEK 505, +14% (25% from
	‒ Service revenue continued to grow in all
	acquisitions. -12% organically)
		geographies			EBITA & EBITA %
	‒ We continued to see some project delays,
▪ EBITA at MSEK 46 (29), margin 9.6% (6.0)
		especially in North America	MSEK
▪ EBITA at MSEK 30 (34), margin 5.9% (7.6)
50								12%
	‒ New projects signed at better margins and including
	‒ Costs relating to old projects continue to have	40								9
		contingencies; improved project execution
		dampening effect	30
	‒	Service margins improved through pricing and									6
	‒ Continue to execute on our transformation
	20
		retrofit/refurbishment/replacement focus	10								3
		programme	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
	‒ Factory underutilisation still too high, German
			0								0
		assembly site closure under way		2022				2023		2024
			EBITA			EBITA %		EBITA adj. R-12 %

9

Facade Access - business update	Q1

• Mammendorf assembly site closure project ahead of schedule
• • Signed agreement with the German works council
  • Supply chain and competency transfers to Madrid site ongoing
  • Assembly activity at the Mammendorf facility will conclude at the end of summer (with the Sydney Harbour Bridge project being the only exception)
• Acquisition of One Legacy, Malaysia
• • Specialist BMU service provider based in Kuala Lumpur
  • Approximately MSEK 6.7 turnover
  • Strengthening our position as a service provider in APAC
  • Supporting our refurbishment/retrofit/replacement strategy

10