Alimak : Delårsrapport Q3 2023 Presentation

Alimak Group

Q3 2023, 24 October 2023

Ole Kristian Jødahl, CEO

Sylvain Grange, CFO

Alimak Group - a diversified global industrial company

Highlights

• Leading provider of premium 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

Market growth, product development, cross-

selling, and continued M&A

Continued operational efficiency, Tractel

synergies, and Facade Access improvements

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

Business update - Q1	FOR INTERNAL USE ONLY
New heights for profit and cash flow	Q3

• Positive momentum and another solid quarter, despite an overall challenging macro environment
• Adjusted EBITA-margin of 16.1% (13.7%)
• • Aggregated EBITA increased by 7%*
• Outstanding cash flow from operations
• • Improved working capital management
• Deleveraging to net debt/EBITDA of 2.53 (2.47, incl R12 months Tractel EBITDA)

5	* Aggregated numbers as if Tractel was acquired as of 1 January 2022

Group quarterly summary	Q3

• Order intake was MSEK 1,678, +55% (+55% from acquisitions. -4% organically)
• • Strong organic growth in Construction and Wind
  • Facade Access faced delayed award decisions, due to high interest rates
• Revenue was MSEK 1,730 +58%
  (53% from acquisitions. 1% organically)
• • Strong organic growth in Industrial and Wind
• EBITA adj. increased to MSEK 279 (150), margin at 16.1% (13.7). Adj. aggregated EBITA increased by 7%*
• • High performance in Industrial, Wind and Construction
  • Improved margin in Facade Access

Order intake & Revenue by Quarters

MSEK

2 200
			1 870	1 782
2 000
				1 678
1 800
		1 396
1 600
1 400
1 086
1 200
1 000
800
600
400
200	1 095	1 403	1 745	1 784	1 730
0
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			Revenue			Order intake

EBITA adj & EBITA adj by Quarters

MSEK					%
320					20
16,6	16,5
270
15,5	16,1		17

220 13,7

170									14
120									11
70									8
150	217	289	295	279
20
-30									5
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			EBITA adj.			EBITA adj. %

Order intake & Revenue by R12M

MSEK

7 000							6 726
				6 134
6 000				5 601
		4 784
5 000
4 300
4 000
3 000
4 137	4 512	5 321	6 027	6 662
2 000
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			Revenue			Order intake

EBITA adj & EBITA adj by R12M

MSEK								%
1 200				15,0	15,8	16,2		18
1 100	13,1	13,6				16
1 000
							14
900
								12
800
700									10
600
							8
500
							6
400
								4
300	542	616	797	951	1 080
200									2
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			EBITA adj.			EBITA adj. %

6 * Aggregated numbers as if Tractel was acquired as of 1 January 2022

Facade Access	Q3

• Order intake was MSEK 376, +9% (+55% from acquisitions. -48% organically)
• • Service continues to contribute positively
  • Impact of higher interest rates resulting in some projects being put on hold or delayed in all geographies
  • Comparing to a strong Q3 last year, including a major project in Hong Kong
  • Our higher margin expectations have led us to step out of a few tenders
• Revenue was MSEK 507, +56% (+68% from acquisitions. -16% organically)
• EBITA at MSEK 40 (12), margin 7.8% (3.7)
• • Continued execution on the transformation program to deliver significantly improved margins over time

Order intake & Revenue by Quarters

MSEK
550
			493
500
450					433
						376
		364
400
345
350
300
250
325	443	485	495	507
200
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			Revenue			Order intake

EBITA & EBITA margin by Quarters

MSEK	EBITA % & EBITA By Quarters	%
50										10
		7,6			7,8
40					6,0	5,3				7
	3,7
30										4
20										1
10										-2
	12	34	29	26		40
0										-5
	Q3-22	Q4-22	Q1-23	Q2-23		Q3-23
				EBITA			EBITA %

Order intake & Revenue by R12M

MSEK

2 000

1 800				1 617	1 635	1 666
		1 389
1 600
1 307
1 400
1 200
1 000
800
1 258	1 372	1 566	1 748	1 930
600
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			Revenue			Order intake

EBITA & EBITA margin by R12M

MSEK					%
160								15
120									12
								9
80				5,2	5,8			6,7
						6
4,1		4,1
40
								3
51		56	81	101			128
0										0
	Q3-22	Q4-22	Q1-23	Q2-23		Q3-23
			EBITA				EBITA %

7

Facade Access - business update	Q3

• Transformation program well under way
• • Organization 100% implemented, commercial 90%, operations work in progress
• Innovation on Integrated Design Services (upstream engineering design services offered to architects and general contractors)
• New web site to be launched Q1 2024, presenting all 3 brands and all offerings
• Strong focus on retrofit, refurbishment and replacement with local service teams
• Levers for CO2 reduction identified, work in progress

8

Facade Access - new projects	Q3

• Sky Towers, Dolmen City, Karachi, Pakistan
• • 35-storeystwin towers (existing buildings)
  • 2 Manntech Type 6 BMUs will be added to the existing 2 BMUs to meet the client requirements of improving the cleaning cycles
• Medical Properties Trust, Atlanta, USA
• • Equipment for sprawling 4 story building. The top three levels will feature Davit systems and Travsmart HLL systems
  • The main roof will have more than 1200 feet of lifelines, and the third floor more than 500 feet of lifelines
• Campus Point CP3, San Diego, USA
• • Equipment for 9 story Campus Point CP3. The building will have our standard 8' 6" davits
  • Tractel's 12'6" extended davits will be provided for hard-to-reach areas of the exterior of the building

9

Construction	Q3

• Order intake was MSEK 489, +65% (+26% from acquisitions. 36% organically)
• • Strong rental and new equipment order intake
  • Major rental orders received in Australia, Canada, France and Germany on large multi-storey projects
• Revenue was MSEK 440, +25% (+22% from acquisitions. -1% organically)
• • High level of rental activity
• EBITA at MSEK 82 (65), margin 18.7% (18.6)

Order intake & Revenue by Quarters

MSEK
550
		494	469	476	489
500
450
400
350
297
300
250
351	387	467	402	440
200
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			Revenue			Order intake

EBITA & EBITA margin by Quarters

MSEK									%
100										25
90
18,6	18,8	18,5	17,5		18,7	20
80
70										15
60
								10
50
65		73	86	71			82
40										5
Q3-22	Q4-22	Q1-23	Q2-23		Q3-23
			EBITA				EBITA %

Order intake & Revenue by R12M

MSEK

2 000							1 928
1 900
				1 735
1 800
			1 613
1 700
1 600
		1 466
1 500
1 400
1 228
1 300
1 200
1 100
1 249	1 346	1 543	1 607	1 695
1 000
Q3-22	Q4-22	Q1-23	Q2-23	Q3-23
			Revenue			Order intake

EBITA & EBITA margin by R12M

MSEK							%
350								20
			18,7
				18,3		18,4
	18,1	18,1
300
								18
250
								16
200
225		243	288	295			312
150										14
	Q3-22	Q4-22	Q1-23	Q2-23		Q3-23
			EBITA				EBITA %

10