Alimak Group Q4 and Full Year 2018, 22 February 2019 Tormod - - PowerPoint PPT Presentation
Alimak Group Q4 and Full Year 2018, 22 February 2019 Tormod Gunleiksrud, CEO Tobias Lindquist, CFO Q4 Including acquired businesses Acquisitions still affecting Full Year comparisons, Q4 comparisons are like-for-like Avanti Wind Systems
Q4 and Full Year 2018, 22 February 2019 Tormod Gunleiksrud, CEO Tobias Lindquist, CFO
Including acquired businesses
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Acquisitions still affecting Full Year comparisons, Q4 comparisons are like-for-like
from 1 February 2017
from 1 March 2017
▪ Strong order intake growth in the quarter for both Construction and Industrial. An
MSEK 1,214 (1,096) ▪ Revenue for the quarter at MSEK 1,150 (1,050), an
▪ EBITA adj. of MSEK 159 (145), representing a margin of 13.8%
Quarterly highlights: Continued strong order intake
Order intake & Revenue by R12M EBITA adj. & EBITA margin adj. by R12M
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4,001 4,184 4,101 4,220 4,320 4,101 4,279 4,268 4,503 4,621
1,000 2,000 3,000 4,000 5,000
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
510 531 506 541 555 12.8 12.7 12.3 12.8 12.8
5 10 15 20 200 400 600 800
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
Order intake & Revenue by Quarters EBITA adj. & EBITA margin adj. by Quarters
1,050 960 1,112 1,099 1,150 1,096 1,121 1,182 1,104 1,214
200 400 600 800 1,000 1,200 1,400
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
145 111 149 136 159 13.8 11.6 13.4 12.4 13.8
5 10 15 20 50 100 150 200
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
▪ Strong organic growth in order intake of 111% to MSEK 248 (113), driven by good development in the US ▪ Revenues of MSEK 176 (228) with an organic decrease of 27% following low order intake during previous quarter, especially in the Middle East – Also affected by external delivery delays ▪ Strong EBITA margin adj. of 19.5% (17.8) stemming from favourable market and product mix
Construction Equipment
Order intake & Revenue by R12M EBITA adj. & EBITA margin adj. by R12M
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793 813 735 766 714 830 749 726 681 816
200 400 600 800 1,000
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
110 113 101 114 108 13.9 13.9 13.8 14.9 15.2
5 10 15 20 30 60 90 120
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
Order intake & Revenue by Quarters EBITA adj. & EBITA margin adj. by Quarters
228 177 185 176 176 113 199 226 143 248
50 100 150 200 250 300
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
41 17 31 27 34 17.8 9.5 16.5 15.1 19.5
5 10 15 20 25 10 20 30 40 50
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
▪ Organic decrease in order intake of 9% to MSEK 600 (627). Q4 2017 included the MSEK 170 Sydney Harbour Bridge order for BMU-solutions. Growth in all other businesses ▪ Organic revenue growth of 23% to MSEK 580 (448) in the quarter ▪ EBITA adj. of MSEK 32 (21), translating into an improved margin of 5.5% (4.8) following the increase in revenue, realised cost synergies and the phasing of challenging BMU backlog
Industrial Equipment
Order intake & Revenue by R12M EBITA adj. & EBITA margin adj. by R12M
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1,795 1,894 1,887 1,938 2,069 1,857 2,071 2,038 2,284 2,257
500 1,000 1,500 2,000 2,500
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
69 68 55 64 75 3.8 3.6 2.9 3.3 3.6
2 4 6 8 10 20 40 60 80 100
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
Order intake & Revenue by Quarters EBITA adj. & EBITA margin adj. by Quarters
448 429 523 537 580 627 533 539 585 600
100 200 300 400 500 600 700
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
21 11 14 18 32 4.8 2.5 2.7 3.4 5.5
2 4 6 8 10 5 10 15 20 25 30 35
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
▪ Order intake of MSEK 254 (263), an organic decrease of 9% due to lower orders of parts and refurbishments – Full year organic growth
▪ Revenue at MSEK 303 (297), an organic decrease of 3% – Organic development for the full year was flat ▪ EBITA adj. of MSEK 78 (74), a margin of 25.7% (25.0) following slow growth and incurred costs in the BMU service business – Full year margin at 27.1%
After Sales
Order intake & Revenue by R12M EBITA adj. & EBITA margin adj. by R12M
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1,108 1,166 1,158 1,177 1,183 1,048 1,081 1,092 1,167 1,158
200 400 600 800 1,000 1,200 1,400
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
295 311 311 316 320 26.7 26.7 26.9 26.9 27.1
5 10 15 20 25 30 35 50 100 150 200 250 300 350
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
Order intake & Revenue by Quarters EBITA adj. & EBITA margin adj. by Quarters
296 274 316 290 303 263 286 303 314 254
50 100 150 200 250 300 350
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
74 74 92 76 78 27.2 29.1 26.2 25.7
10 20 30 40 25 50 75 100
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
25.0
▪ Order intake of MSEK 113 (93) in the quarter, an organic increase of 17% ▪ Organic revenue growth of 15% to MSEK 91 (77) ▪ Continued strong EBITA margin
Rental
Order intake & Revenue by R12M EBITA adj. & EBITA margin adj. by R12M
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305 311 320 340 354 365 377 412 371 391
100 200 300 400 500
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
36 39 39 45 51 11.8 12.5 12.1 13.3 14.4
3 6 9 12 15 10 20 30 40 50 60
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
Order intake & Revenue by Quarters EBITA adj. & EBITA margin adj. by Quarters
77 80 87 95 91 93 102 114 61 113
30 60 90 120 150
Q417 Q118 Q218 Q318 Q418
Revenue Order intake MSEK
9 9 12 15 15 11.3 11.6 15.8 15.9
5 10 15 20 4 8 12 16
Q417 Q118 Q218 Q318 Q418
EBITA adj. EBITA adj. % MSEK %
14.0
3.58 5.38 6.35 2.3 2.75
0.00 2.00 4.00 6.00 8.00
0.00 2.00 4.00 6.00 8.00
2016 2017 2018
EPS Dividend
▪ Order intake growth in all business areas except Construction Equipment ▪ Year of consolidation – positive effects of integration starting to materialise ▪ Dividend of SEK 2.75 (2.30) per share proposed by the Board of Directors
FY 2018
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Order intake, Revenue and Margin, by Years
MSEK
Management assessment: If the acquired companies would have been fully consolidated by 1 January 2017: Order intake growth in 2018 would have been 4% Revenue growth in 2018 would have been 3%
2,144 4,101 4,621 2,049 4,001 4,320 16.1 12.8 12.8 00 05 10 15 20 25 1,000 2,000 3,000 4,000 5,000 2016 2017 2018 Order intake Revenue EBITA margin adj. %
% SEK SEK
EPS and Dividend, by Years
2.30 1.60
Cash Flow and Net Debt
▪ Cash flow from operating activities in the fourth quarter was MSEK 148 (174) – Full year cash flow MSEK 240 (335), high working capital in first half of the year – Full year investments of MSEK 68 (37), in line with depreciation ▪ Net debt at end of 2018 was MSEK 867 (910) ▪ Leverage (Net debt/EBITDA) at 1.55 (1.72) ▪ A strong financial position for the Group
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Net Debt, MSEK and Leverage by Quarter
174
113 148
50 100 150 200 Q417 Q118 Q218 Q318 Q418
910 919 1,090 980 867
1 2 3 4
300 600 900 1,200 Q417 Q118 Q218 Q318 Q418
Net Debt Leverage
Cash Flow, MSEK by Quarter
Tax Expense
▪ Tax income for the fourth quarter was positive MSEK 22 (tax expense Q4 2017 was MSEK 8), supported by MSEK 47 of changes in deferred taxes – MSEK 40 of these from legal restructuring within the Group ▪ As of December 31, 2018, total tax losses carried forward amounted to MSEK 517 (590) with related balance of recognised deferred tax assets of MSEK 68 (19) ▪ Tax rate for the full year of 13% (25)
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8 18 33 23
8% 25% 29% 25%
0% 10% 20% 30%
10 20 30 40
Q417 Q118 Q218 Q318 Q418
Tax, MSEK Tax Rate %
MSEK
Tax Expense and Tax Rate by Quarter
Q418
Net profit and EPS
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Net Profit and EPS
90 53 79 68 144 1.67 0.97 1.46 1.26 2.65
0.00 0.50 1.00 1.50 2.00 2.50 3.00
20 40 60 80 100 120 140 160
Q417 Q118 Q218 Q318 Q418
Net Profit EPS*
▪ Net profit of MSEK 144 (90) in the quarter – EPS was SEK 2.65 (1.67) in the quarter based on current number of shares ▪ Net profit MSEK 344 (292) for the full year – EPS for the full year was SEK 6.35 (5.38) ▪ Dividend of SEK 2.75 (2.30) per share proposed by the Board of Directors
MSEK SEK
*) Calculated on numbers of shares at 2018-12-31: 54,157,861
Synergy potential Integration plan
▪ Large portion of transformation completed
– 15 cross functional work streams with the task to develop the best practice
across the organization, majority finished
▪ Forward focus on areas including design and manufacturing with longer-term
perspective
▪ Integration costs ~MSEK 110
– Actions remaining in 2019 have been provisioned for in Q4 2018
▪ Synergies of 2 percentage points (baseline 12.0%, actual proforma 2016) on
the EBITA margin with full effect by end of 2019
▪ Procurement and manufacturing optimization ▪ After Sales
– Increased footprint, size and utilization – Improved structure and service levels
▪ Strengthened organisation and structure
Integration update
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Revenue growth target EBITA margin target Leverage target (net debt/EBITDA)
The Group’s mid-term target is to have an average annual organic revenue growth of at least 6%. The Group’s mid-term target is to reach an
The company will maintain an effective capital structure with a net debt of around 2.0x EBITDA. The capital structure will be flexible and allow for strategic initiatives.
Mid-term Financial Targets
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Summary
▪ Strong order intake growth in the quarter, even when comparing to Q4 2017 including all time high-order of MSEK 170 for Sydney Harbour Bridge ▪ Group margin in line with last year, improved margins in all business areas but with a changed business mix ▪ Market sentiment looks encouraging even though uncertainties like Brexit and geopolitical volatility exist ▪ Run rate on financial targets by end of 2019
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