Annual &
Sustainability
Report 2023
Moving people, material, and businesses safely to new heights
Annual & Sustainability Report 2023 | 2 |
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Alimak Group
Photo
Competition
Alimak Group has a photo competition where the employees participate with own photos from the everyday -business. Every month, a winner from each divison is chosen. In this annual report you will see some of the winning photos.
This symbol indicates a photo from the competition.
The picture on the front page shows a CoxGomyl 5000 series BMU on top of the WOW Hotel in Dubai.
Balaji Chandrababu
Alimak Group in Brief TheYear in Brief
TheYear in Key Figures CEO Letter 2023
April 2021
Melbourne, Australia
Russell Knight
The New Heights Programme Group Strategy
GroupTargets and Progress 2023 Business environment and trends
March 2023
Benelux
Peter Koevoets
15
Divisions
Facade Access
Construction
Height Safety &
Productivity Solutions
Industrial
Wind
May 2021
West Virginia, USA
Aaron Brzezinski
36
Sustainability
A more sustainable Alimak Group Sustainable Relationships Sustainable Solutions Sustainable Operations Sustainability Governance Sustainability Data
EUTaxonomy
Board Signatures on the Statutory Sustainability Report
Auditor's Report on the Statutory Sustainability Statement
October 2021
Lagoa do Barro, Brazil
Felipe Martins
56
Board Report
Directors' Report
Risks and Risk Management
Corporate Governance
Board
LeadershipTeam
Mars 2022 , UK
James Humphrey
80
Financial
Statements
Consolidated Statements of Comprehensive Income
Consolidated Statements of Financial Position
Consolidated Statements of Cash Flow
Consolidated Statements of Changes in Equity
Notes to the Consolidated Financial Statements
Parent Company Income Statements
Parent CompanyTotal
Comprehensive Income
Parent Company Balance Sheets
Parent Company Statements of Cash Flow
Statements of Changes in Parent Company Equity
Notes to the Parent Company Financial Statements
Board Signatures
Auditor's Report
119
Other
Key Figures
Definitions
The Share
Information to Shareholders
In the event of any discrepancies between the Swedish and the English versions of the Annual Report, the Swedish version shall take precedence
In Brief
Alimak Group in Brief
Annual & Sustainability Report 2023 | 3 |
Alimak Group is a global provider of sustainable vertical access and working at height solutions, listed on Nasdaq OMX Stockholm. With a presence in more than 120 coun- tries, the Group develops, manu factures, sells and services vertical access and working at height
solutions with a focus on adding customer value through enhanced safety, higher productivity and improved cost efficiency.
Founded in Sweden in 1948, the Group has its headquarters in Stockholm and approximately 3,000 employees around the world.
MSEK | Per region |
7,097 | D) ROW, 0 |
A) Europe, 43 | |
B) APAC, 22 | |
C) Americas, 34 | |
C | A |
B |
Alimak Group has a global network of sales offices, distributors and service partners.This puts Alimak Group close to its customers and ensures good knowledge of their business as well as long-term relationships. It also benefits the customers through a unique combination of international and local service and support.
Average number of employees
Dec. 31, 2023 | Per region, average 2023 |
2,956 D) ROW, 0 | C | |
A) Europe, 62 | ||
B) APAC, 24 | B | A |
C) Americas, 14 | ||
No. of countries
120+
Our brands
Our divisions | ||||
Height Safety & | ||||
Facade Access | Construction | Productivity Solutions | Industrial | Wind |
share of | 34% | Group | share of | 34% | Group | share of | 20% | Group | share of | 57% | Group | share of | 33% | Group |
Service | Share of | Service | Share of | Service | Share of | Service | Share of | Service | Share of | |||||
sales | 6.3% | Revenue | sales | 18.0% | Revenue | sales | 19.1% | Revenue | sales | 23.2% | Revenue | sales | 17.9% | Revenue |
margin | 28% | margin | 24% | margin | 19% | margin | 20% | margin | 9% | |||||
EBITA | EBITA | EBITA | EBITA | EBITA |
Sustainability
Board Report
Financial Statements
Other
In Brief
A transformative year for Alimak Group
Annual & Sustainability Report 2023 | 4 |
In 2023, Alimak Group continued to deliver on the New Heights programme and strengthened the
position as the global leader in sustainable vertical access solutions.The integration of 1,000 new employees and the additions of a new division contributed to a more resilient industrial company with a broader geographic presence and an expanded product and services portfolio.
Continued execution of the
New Heights programme
We sustained our commitment to a profitable growth agenda, achieving a record- high order intake of MSEK 7,027 (4,784) and MSEK 7,097 (4,512) in revenue. EBITA reached MSEK 1,145 (603), with an EBITA margin of 16.1 percent (13.4). Our robust performance is underscored by a strong cash flow from operations at MSEK 1,067 (501), a result of increased earnings, enhanced working capital management and controlled capital expenditure.
Rights issue completed
Alimak Group completed a rights issue during the year to repay the bridge loan facility that was raised in conjunction with the acquisition ofTractel.The rights issue was fully subscribed to and provided Alimak Group with proceeds amounting to approximately SEK 2,500 million.
Integrating 1,000 new employees
A primary focus has been on integrating the over 1,000 employees fromTractel who joined our Group by the end of 2022. Recognizing employees as our most valuable asset, it has been truly impressive to witness the high level of engagement and dedication demonstrated by our team in building a stronger and more resilient industrial Group with a global reach.
Recognition for best digital development
On 20 April, My Alimak was awarded the 'Best Digital Development Award' at the International Awards for Powered Access in Berlin. It is a great recognition that shows Alimak Group is at the forefront of digital development in our industry.
Continued product and services development
Innovation and technological leadership are pivotal focuses within our strategy for profitable growth. Among product launches this year, the Scando 650a has a reduced environmental impact with 28 percent lower energy consumption.The Medius 350 boasts a compact base, facilitating convenient transportation on conventional trucks and optimizing logistics. Designed for secure and efficient access to confined spaces,Tracrod is another highlight. Meanwhile, the Silo Lift SE240L is tailored for silos, storage vessels, tanks, and small cranes. Addressing the unique needs of offshore wind support vessels, the ME Gangway Lift is specifically adapted for this demanding environment.
Updated financial targets and new sustainability targets
On 14 June, our updated financial and new sustainability targets were presented at a Capital Markets Day in Stockholm, Sweden.The background is the successful achievement of the financial targets set two years ago.The targets not only reflect our vision for accelerated profitable growth but also underscore our commitment to workplace safety, social responsibility, and the reduction of our climate impact.
Changes in the Group Leadership Team and Board of Directors
As of 1 September, Jens Holmberg assumed the position as Executive Vice President for the Industrial division. Jens Holmberg transitioned to Alimak Group from Sandvik, where his most recent role was as Division President of Sandvik Rock Tools in the Mining and Rock Solutions Business Area. Furthermore, Zeina Bain was elected as new Director of the Board. Fredrik Marklund, an employee-elected board member, resigned from the Board of Directors, and Urban Granström was appointed as his successor.
Alimak Group in Brief TheYear in Brief
TheYear in Key Figures CEO Letter 2023
Divisions
Sustainability
Board Report
Financial Statements
Other
In Brief
TheYear
in Key Figures
Key Figures
2023 | 2022 | 2021 | 2020 | 2019 | |
Order intake, MSEK | 7,027 | 4,784 | 3,772 | 3,761 | 4,363 |
Revenue, MSEK | 7,097 | 4,512 | 3,728 | 3,740 | 4,587 |
Operating profit adj* (EBITA adj), MSEK | 1,150 | 616 | 483 | 396 | 629 |
Operating profit adj* (EBITA adj), % | 16.2 | 13.6 | 13.0 | 10.6 | 13.7 |
Operating profit (EBITA), MSEK | 1,145 | 603 | 483 | 319 | 608 |
Operating profit (EBITA), % | 16.1 | 13.4 | 13.0 | 8.5 | 13.3 |
EBIT, MSEK | 945 | 546 | 448 | 278 | 565 |
Profit for the period, MSEK | 515 | 376 | 307 | 183 | 394 |
Earnings per share , SEK1) | 5.25 | 5.26 | 4.24 | 2.52 | 5.44 |
Earnings per share adj*, SEK | 6.76 | 5.90 | 4.57 | 2.92 | 5.94 |
Cash flow from operating activities, MSEK | 1,067 | 501 | 646 | 505 | 502 |
Dividend, SEK | 2.502) | 1.823) | 2.461) | 2.24 1) | 1.311),5) |
Leverage (Net Debt/EBITDA)* | 2.26 | 8.004) | 0.55 | 1.50 | 1.33 |
- Recalculated in comparison periods to consider rights issue.
- Proposed by the Board of Directors based upon number of outstanding shares as of year end 2023.
- Dividend per share according to amount of shares at the time of dividend payment.
- EBITDA in leverage calculation only include 5 weeks fromTractel
- Lowered due to the market uncertainty caused by COVID-19.The Board's previous proposal was a dividend of SEK 3.25 per share. * Definitions see page 121.
Sustainability KPI
2023 | 2022 | 2021 | 2020 | 2019 | |
Electricity and district heating, MWh/revenue in MSEK1) | 2.16 | 2.32 | 2.93 | 3.02 | 3.01 |
Share of renewable electricity, % | 56 | N/A | N/A | N/A | N/A |
CO2e emissions, ton/revenue in MSEK1) | 1.53 | 1.65 | 2.05 | 1.98 | 2.35 |
Share of product range covered by LCA studies, % | 52 | 50 | 8 | N/A | N/A |
Lost time injury frequency rate (LTIFR), all sites | 6 | 5 | 9 | 7 | 10 |
Total recordable injury frequency rate (TRIFR2)), all sites | 12 | 10 | 17 | 12 | 19 |
e-NPS | +15 | +63) | N/A | -6 | -14 |
Supplier assessments, % | 60 | N/A | N/A | N/A | N/A |
- Previous years have been recalculated due to the acquisition ofTractel.
- TRIFR includes MTI, LTI and FTI.
- Average from three surveys (-2, +7, +13)
Annual & Sustainability Report 2023 | 5 |
Order Intake | Profitability | ||||||
MSEK | MSEK | % | |||||
8,000 | 1,200 | 30 | |||||
6,000 | 1,000 | 25 | |||||
800 | 20 | ||||||
4,000 | 600 | 15 | |||||
2,000 | 400 | 10 | |||||
200 | 5 | ||||||
0 | 0 | 0 | |||||
2021 | 2022 | 2023 | 2021 | 2022 | 2023 |
Order intake | EBITA | |||||||||
Order intake increased by 47% | EBITA margin | Divisions | ||||||||
EBITA increased to MSEK 1,145, | ||||||||||
compared | with last year, with 4% | |||||||||
organic decrease, to MSEK 7,027 | with a margin of 16.1% | Sustainability | ||||||||
Revenue | Cash Flow | |||||||||
Board Report | ||||||||||
MSEK | MSEK | Financial Statements | |||
8,000 | 1,200 | ||||
6,000 | 1,000 | Other | |||
800 | |||||
4,000 | 600 | ||||
2,000 | 400 | ||||
200 | |||||
0 | 2022 | 2023 | 0 | 2022 | 2023 |
2021 | 2021 |
Revenue | Cash flow from operations | ||
Revenue increased with 57% | |||
Cash flow from operations was | |||
compared with last year, increased | |||
5% organically, to MSEK 7,097. | MSEK 1,067. |
In Brief
CEO letter 2023
Reaching new heights with a more resilient and profitable Group
Despite a challenging macro-economic environment, Alimak Group delivered strong growth, profitability and cashflow in 2023, and we took important steps in the execution of the New Heights programme.
Annual & Sustainability Report 2023 | 6 |
It was another year with economic, political, and climate-related challenges, contributing to a complex macro-economic landscape.The most notable effect on our business was higher interest rates, which created a general uncertainty in many markets. At the same time, there are strong trends that continued to support our business: urbanisation, verticalization of cities, electrification, and increased global focus on health and safety. Beyond these trends, the right strategy, the right organisation and the best people to execute the strategy are our key success factors.
Delivering on the New Heights programme
Since the launch of our strategic direction, the New Heights programme, three years ago, we have firmly followed our plan. We laid the foundation in 2020, achieved margin improvements in 2021, and commenced our profitable growth journey in 2022. We have since then taken substantial steps in the execution of our strategy, with all divisions making important contributions to the profitable growth to the Group.The results for 2023 again proves that we are on the right track, with a revenue increase of 57 percent, reaching BSEK 7.1, and a corresponding 90 percent increase in EBITA, totalling BSEK 1.1.
"Since the launch of our strategic direction, the New Heights programme, three years ago, we have firmly followed our plan. The results for 2023 again proves that we are on the right track."
In the Facade Access division, where we struggle with profitability, we have launched, and are executing, on a transformation programme. There is still much more to be done and we expect substantially improved margins over the next two years.
Despite a weak market situation, the Construction division demonstrated impressive sales and earnings performance.This showcases the effectiveness of our strategic initiatives and organisational focus on key priorities.
Height Safety & Productivity Solutions experienced record sales and revenue. We are now increasing our investments in sales, marketing and product development to secure and increase growth.
Divisions
Sustainability
Board Report
Financial Statements
Other
In Brief | Annual & Sustainability Report 2023 | 7 |
In the Industrial division, our customer- and segment focused approach paved the way for continued solid performance. With a wide and diverse customer base, the division is working close to our customers to develop the right products and solutions for their specific needs. The positive trend for the service business
continued across most regions and within all customer segments.
In the Wind division, there has been a remarkable turnaround over the last year, with steady improvement quarter by quarter. Our strategic focus on becoming the preferred partner for our customers is gaining strong traction, enabling us to advance our market position and actively contribute to the transition towards increased renewable energy and reduced CO2e emissions.
Increased resilience and broadened offering
The acquisition ofTractel not only added 1,000 skilled professionals but also transformed us into a more diversified and resilient industrial Group.The integration into our business has been a priority. We've successfully achieved this, reinforcing our market position through a combined offering and enhanced engineering capabilities.The main synergy effects of the acquisition are still to be capitalized on.
With a strong customer-centric focus, we are driving innovation in the development of new products and services while exploring untapped market segments. Combined with our strong global service and aftermarket offering, this proactive strategy continues to enable our profitable growth.
Updated financial and new sustainability targets
In June, we announced updated financial and new sustainability targets at a Capital Markets Day.The updated financial targets represent the potential for accelerated profitable growth
"The acquisition of Tractel not only added 1,000 skilled professionals but also transformed us into a more diversified and resilient industrial Group."
that we see. Our target is to achieve an average annual revenue growth of 6-10 percent, with an adjusted operating EBITA margin exceeding 18 percent within 2-3 years' time. The Group will maintain an effective capital structure with a net debt below 2.5x EBITDA over a cycle.
Our new sustainability targets underscore our commitment to enhancing workplace safety, upholding social responsibility, and mitigating our environmental footprint. A key aspect of this is that we will submit an application to the Science BasedTargets initiative. With our employees as our most valuable asset, we are dedicated to achieving a zero- accident vision in the workplace and maintaining a target of fewer than 2 injuries per million working hours.To realize this goal, we are intensifying our efforts to cultivate a safe and healthy working environment. Additionally, we consistently measure employee satisfaction and have set a target for the Employee Net Promoter Score (NPS) to exceed 40. For our direct material suppliers, we are committed to conducting Environmental, Social, and Governance (ESG) assessments for more than 80 percent of them.
Technology leadership
In our pursuit of delivering optimal solutions for our customers' needs, we remain dedicated to the continuous development of new products and services.This year marked the introduction of the Scando 650a, characterized by a reduced environmental impact attributed to a 33 percent lighter hoist car and up to 28 percent lower energy consumption. Adding to our portfolio, the Medius 350 features a compact base, facilitating easy transportation on conventional trucks and enhancing overall logistics.
IntroducingTracrod, an innovative solution designed for safe and efficient access to confined spaces.This technology empowers technicians to navigate a broader range of locations in confined spaces with increased ease and safety. Meanwhile, the Silo lift SE240L, tailored for silos, storage vessels, tanks, and small cranes, opens up new opportunities in its respective market segment. The ME Gangway Lift, specifically adapted for offshore wind support vessels, expands our reach in the growing offshore wind market.
We also continued to enhance our digital offerings that elevate the overall customer experience.The development of more intelligent machines, equipped with real-time data access and smart service tools, not only adds significant value for our customers but also enhances our ability to reduce scope 3 emissions.
Strong financial position creates opportunities
Robust earnings and cash flow have allowed us to successfully deleverage the temporary increase in debt following the acquisition of Tractel.This has brought us back, and well within, our targeted net debt/EBITDA ratio of under 2.5x.
Our strong financial position enables increased investments in products and
services that will elevate our customer offer- ing. We also see opportunities for bolt-on acquisitions that can complement our existing offerings. We are operating in a fragmented market and there are many exciting opportunities for us to add acquired growth to our organic growth.
I look forward to 2024 with confidence, and I would like to express my deep gratitude to all employees, customers, business partners and shareholders for the past year. Our strategic direction delivered positive results in 2023 and we will continue to execute on our sustainable profitable growth agenda going forward.
Ole Kristian Jødahl
President & CEO
Divisions
Sustainability
Board Report
Financial Statements
Other
In Brief | Annual & Sustainability Report 2023 | 8 |
Alimak Group as an investment
Our business is supported by several mega trends, of which urbanisation, verticalization of cities, electrification, and increased global focus on health and safety are the most significant.There is also a growing demand for efficient access solutions that reduce our customers' climate footprint and increase productivity. All of this brings fundamental growth to our business.
A broad industrial Group with high customer retention
Alimak Group has a long history and a market leading range of high-quality products and services in selected niches. With a presence in more than 120 countries, the Group develops, manufactures, and sells vertical access and working at height solutions with a wide range of usage that add customer value through enhanced safety, higher productivity, and improved cost efficiency.This is a compre hensive offering that creates strong customer loyalty and retention.
Decentralized and customer-centric organisation
Alimak Group is organised into five decentral- ized, customer-centric divisions that are responsible for the full customer journey: asset lifecycle, original equipment, spare parts and service. With a high degree of responsi bility and a close relationship with our cus- tomers, we develop and innovate effective and sustainable solutions that benefit our customers and drive solid profitability for the group.
Stable service and aftermarket revenue
Each division operates a global service
organisationthat provides support throughout the entire lifecycle of equipment, including performing routine maintenance, repairs, renovations, retrofits, and replacements. Our wide range of services plays a pivotal role in prolonging product lifetime, reducing environmental footprint, ensuring continued safe product operations, and enhancing customer utilization and cost efficiency. It is a fast- growing segment, and we see significant potential for further growth.
Cash-generative business model
Alimak Group has a capital light model and maintains a longstanding track record of profitability and robust cash generation, driven by strong earnings, a focus on working capital improvements, and limited capital expenditure requirements.
We are on a growth journey
In 2023, Alimak Group took significant steps in our profitable growth journey, based on the New Heights programme. Most of our divisions performed well during the year, and the ongoing transformation program within Facade Access is expected to lift the division's margin over time. As we are active in a frag-
Our mission
Moving people, material and businesses safely to new heights.
This is what we promise to deliver to our customers. Alimak Group has a market leading position, and we see good opportunities to grow and strengthen profitability as well as to accelerate value creation for all stakeholders.Through our products and services, we help our customers to enhance safety and productivity, and reduce their climate impact.
mented market, we also see many opportunities for bolt-on acquisitions that will enhance our offering, expand our footprint, and fuel growth.
Read more about the New Heights programme on page 10.
Other
March 2022, Atlanta, USA
Efriam Fakhry
Annual & Sustainability Report 2023 | 9 |
Strategy & Targets
Content
Group Strategy
GroupTargets and Progress 2023
Business environment and trends
May 2021, Madrid
Daniel Montilla
Strategy &Targets | Annual & Sustainability Report 2023 | 10 |
The New Heights programme
a strategic roadmap for profitable growth
During 2023, Alimak Group continued to execute the strategy to build a strong and resilient industrial group with a focus on sustainable, accelerated profitable growth.
Launched in 2020, the New Heights programme consists of three steps.The initial phase involved the establishment of a solid foundation, creating an efficient and empowered organi-
2025
The New Heights Programme Group Strategy
sation with a customer and market-centric focus.The next step, centered on securing margin improvements, implemented
various measures such as active price management, cost con- trol, and efficiency enhancements.
Having successfully completed the initial phases, our primary focus in 2023 has been the ongoing pursuit of our profitable growth agenda. A pivotal milestone in this journey was the integration ofTractel, introducing 1,000 highly skilled
3 Profitable growth
Focus on driving strong profitable growth, both organically and through acquisitions.
Construction | Industrial | Wind | ||
Height Safety & Productivity Solutions
GroupTargets and Progress 2023 Business environment and trends
Divisions
Sustainability
employees into our organisation.The addition of the highly profitableTractel Facade Access business led by Philippe
Gastineau, the former CEO ofTractel, is now focusing on
significantly enhancing the division's margins over time.This strategic acquisition also brought in a new division, Height Safety & Productivity Solutions, with a robust market position and impressive earnings within its segment.
2020
2 Secure margin improvements
- Elevate our understanding of customer needs and the factors influencing our business.
- Define effective division strategies.
- Strong focus on improving profitability.
Facade Access
Board Report
Financial Statements
Other
The turnaround in the Wind division, coupled with strong results in the Construction and Industrial divisions, serves as tangible evidence that our operational approach is yielding positive outcomes.
Having successfully integratedTractel in 2023 and strengthened our market position, we remain dedicated to the continuation of our profitable growth journey. We are confident in the direction of our current strategy and believe that we have
1 Establish the base
- Having the right organisation structure in place to drive value creation.
- Elevate customer and market understanding.
- Increased focus on people and culture; establish efficient and empowered organisation.
- Accelerated product and solution development.
- Focus on total asset lifecycle.
the right team in place to execute it effectively.
Read more about the divisions and the strategic priorities on pages 16-35.
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Alimak Group AB published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2024 08:04:00 UTC.