Alimak Group Q1 2020, 24 April 2020 Tormod Gunleiksrud, CEO Tobias - PowerPoint PPT Presentation

Alimak Group Q1 2020, 24 April 2020 Tormod Gunleiksrud, CEO Tobias Lindquist, CFO

COVID-19 impact and actions Industrial Equipment After Sales Construction Equipment Rental ▪ ▪ Restricted access to ▪ ▪ Restricted access to Production Production sites customer sites disruptions in China in disruptions in China, February and March Spain, Germany and ▪ The Group’s rental ▪ Reduced utilisation Brazil during Q1 markets heavily following safety affected from precautions mid-March ▪ ▪ ▪ ▪ Temporary reductions Operational focus for Limited redundancies Cost adaptions in of workforce in Q2 to stabilise supply to keep core service Skellefteå in mid-April affected countries technicians and production capabilities 2

Q1 Quarterly highlights ▪ Order intake decreased by 3% to Order intake & Revenue by Quarters Order intake & Revenue by R12M MSEK 1,067 (1,101) with an MSEK MSEK 4,601 4,569 4,504 organic decrease of 5% 5,000 4,363 4,329 1,500 1,150 – Drop for Construction and 1,101 1,073 4,000 1,067 1,039 1,200 Industrial Equipment 3,000 900 – Improved orders for Rental 2,000 600 and After Sales 1,000 300 4,527 4,609 4,594 4,587 4,337 ▪ 1,167 1,193 1,084 1,143 916 Revenue decreased by 21% to 0 0 Q119 Q219 Q319 Q419 Q120 MSEK 916 (1,167) with an organic Q119 Q219 Q319 Q419 Q120 Revenue Order intake decrease of 23% Revenue Order intake – Lower volumes in all EBITA adj. & EBITA margin adj. by Quarters EBITA adj. & EBITA margin adj. by R12M business areas MSEK MSEK % % – COVID-19 impact on 200 20 800 20 production and supply of 14.0 14.4 13.7 13.8 equipment and services 12.8 13.2 13.4 13.2 13.2 150 15 600 15 ▪ EBITA adj. decreased to MSEK 79 8.7 100 10 400 10 (153), margin 8.7% (12.9) 50 5 200 5 – Lower margins for Industrial 153 172 152 151 79 597 620 636 629 555 Equipment and After Sales 0 0 0 0 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 EBITA adj. EBITA adj. % EBITA adj. EBITA adj. % 3

Q1 Construction Equipment ▪ Order intake decrease of 15%, Order intake & Revenue by Quarters Order intake & Revenue by R12M down 18% organic, to MSEK 179 MSEK MSEK (212) 300 1,000 829 212 767 753 250 – Sequential improvement 800 634 179 601 200 164 – Strong UK and Nordics 600 128 129 150 400 ▪ Revenue decrease of 40%, down 100 42% organic, to MSEK 124 (208) 200 50 208 271 131 204 124 746 832 786 813 729 – Low backlog at beginning of 0 0 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 year Revenue Order intake Revenue Order intake – COVID-19-related factory closure in China EBITA adj. & EBITA margin adj. by Quarters EBITA adj. & EBITA margin adj. by R12M ▪ EBITA adj. at MSEK 12 (30), a MSEK MSEK % % 50 25 150 25 margin of 9.7% (14.5) 18.5 – Effect of low volumes and 40 20 120 20 17.0 17.0 16.2 16.1 15.4 14.5 14.6 15.5 utilisation 30 15 90 15 9.7 20 10 60 10 10 5 30 5 30 50 19 31 12 121 141 133 131 113 0 0 0 0 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 EBITA adj. EBITA adj. % EBITA adj. EBITA adj. % 4

Q1 Rental ▪ Order intake increase of 24% to Order intake & Revenue by Quarters Order intake & Revenue by R12M MSEK 113 (90), up 24% MSEK MSEK organically 150 500 379 377 373 – Strong quarter for 353 351 113 120 400 90 89 85 Australia 86 90 300 ▪ Revenue decrease of 5% in the 60 200 quarter, down 6% organic, to 30 100 MSEK 87 (91) 91 99 100 107 87 364 376 380 397 392 0 0 – Limited access to Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 Revenue Order intake Revenue Order intake construction sites in France and Australia EBITA adj. & EBITA margin adj. by Quarters EBITA adj. & EBITA margin adj. by R12M ▪ EBITA adj. at MSEK 10 (12), MSEK MSEK % % margin at 11.4% (13.0) 16 20 60 20 15.3 14.9 14.8 14.8 15.5 14.6 14.7 14.4 12 13.0 15 45 15 11.4 8 10 30 10 4 5 15 5 12 15 15 16 10 53 56 56 58 56 0 0 0 0 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 EBITA adj. EBITA adj. % EBITA adj. EBITA adj. % 5

Q1 Industrial Equipment ▪ Order intake decrease of 7%, Order intake & Revenue by Quarters Order intake & Revenue by R12M down 9% organic, to MSEK 442 (477) MSEK MSEK 2,213 750 2,500 2,201 2,151 2,110 – Low orders for Oil & Gas 2,075 559 551 600 2,000 523 477 – Delayed contract signing in 442 450 1,500 BMU but strong pipeline and underlying demand 300 1,000 150 500 ▪ Revenue decrease of 28%, down 30% 570 493 535 517 413 2,209 2,179 2,177 2,115 1,958 organically to MSEK 413 (570) 0 0 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 – COVID-19 impact on all units in Revenue Order intake Revenue Order intake terms of production and supply – Wind still facing revenue comps EBITA adj. & EBITA margin adj. by Quarters EBITA adj. & EBITA margin adj. by R12M for tower internals MSEK MSEK % % 40 8 120 8 ▪ EBITA adj. at MSEK -1 (34), a margin 5.9 6.0 of -0.3% (5.9) following drop in factory 30 6 5.3 4.8 90 5.1 6 4.6 4.4 output and utilisation 3.5 20 4 3.7 60 4 10 2 30 2 34 17 32 25 0 0 98 101 115 108 73 Q119 Q219 Q319 Q419 Q120 -1 0 0 -0.3 -10 -2 Q119 Q219 Q319 Q419 Q120 EBITA adj. EBITA adj. % EBITA adj. EBITA adj. % 6

Q1 After Sales ▪ Order intake increase of 4% to Order intake & Revenue by Quarters Order intake & Revenue by R12M MSEK 333 (321), up 1% MSEK MSEK organically 400 1,600 333 346 1,281 321 1,269 1,236 1,223 302 299 1,193 – Continued good 300 1,200 momentum for Wind and BMU 200 800 – Fewer refurbishment and 100 400 spare part orders 297 331 319 316 292 1,206 1,221 1,250 1,263 1,258 0 0 ▪ Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 2% decrease of revenue, down Revenue Order intake Revenue Order intake 4% organically, to MSEK 292 (297) – Restrictions on access to EBITA adj. & EBITA margin adj. by Quarters EBITA adj. & EBITA margin adj. by R12M customer sites MSEK MSEK % % 100 40 360 40 ▪ EBITA adj. at MSEK 59 (78), a 26.2 26.5 27.2 26.3 26.8 75 30 270 30 margin of 20.1% (26.2) 26.7 25.1 26.4 24.9 20.1 – Effect of mix and 50 20 180 20 COVID-19 precautions lowering utilisation rate 25 10 90 10 78 90 85 79 59 324 322 331 332 313 0 0 0 0 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 EBITA adj. EBITA adj. % EBITA adj. EBITA adj. % 7

Q1 Earnings summary ▪ Lower EBITA adj. △ MSEK MSEK Q1 2020 Q1 2019 – Revenue/volume driven EBITA adj. 79 153 -74 – Industrial Equipment, After Sales and Construction Equipment Non-recurring costs 0 (2) +2 – Expenses slightly down ▪ Financial net EBITA 79 151 -72 – Negative currency impact on loans Amortisations (12) (11) -1 – Lower interest costs (loan and rate) EBIT 68 140 -72 ▪ Taxes Financial net (14) (9) -5 – Lower result – Tax rate stable EBT 53 130 -77 Taxes (12) (32) +20 Result for the period 41 98 -53 8

Q1 Tax Expense ▪ Tax expense and Tax rate by Quarter Tax expense for the quarter was MSEK 12 (32), a tax rate of 22% (24) MSEK 40 40% 30 30% 25% 24% 23% 22% 20 20% 16% 10 10% 32 36 29 17 12 0 0% Q119 Q219 Q319 Q419 Q120 Tax, MSEK Tax Rate % 9

Q1 Result for the period and EPS Result for the period and EPS ▪ Result for the period MSEK 41 (98) – The decrease mainly came from the lower EBITA adj. result MSEK SEK ▪ 150 3 EPS thereby decreased to SEK 0.76 (1.94) for the quarter 2.00 1.82 1.83 2 100 1.62 50 1 0.76 98 108 100 88 41 0 0 Q119 Q219 Q319 Q419 Q120 Result for the period EPS* *) Calculated on numbers of shares at 2020-03-31: 54,157,861 10

Q1 Cash flow and Net debt ▪ Operating Cash flow, MSEK by Quarter Cash flow from operations in the quarter MSEK 12 (36) 250 226 – Lower EBITA adj. result – Payments of Swedish tax relating to both 200 2018 and 2019 134 150 ▪ Working capital decreased by MSEK 40 106 – Lower receivables – increased focus on 100 cash management 36 50 – Higher inventory – delayed shipments 12 0 Q119 Q219 Q319 Q419 Q120 ▪ Net debt totalled MSEK 1,045 (1,007 as of December 31, 2019) Net debt, MSEK and Leverage by Quarter ▪ Leverage (Net Debt/EBITDA) at March 31, 2020 1,500 3 1,321 1,262 was 1.52 (1.33 as of December 31, 2019) 1,234 1,045 1,007 ▪ Changed dividend proposal to SEK 1.75 to 1,000 2 create increased flexibility in a time of uncertainty 500 1 0 0 Q119 Q219 Q319 Q419 Q120 Net Debt Leverage 11

Q1 Summary ▪ Good demand and order intake with continued growth for After Sales and sequential improvements in Construction Equipment ▪ Construction and Industrial Equipment supply and production output impacted by COVID-19 in Q1. After Sales and Rental impacted by restrictions for access to customer sites ▪ Expecting weak Q2 followed by stronger second half of the year ▪ Strong financial position and maintained positive cash flow from operations ▪ Leading market position and global footprint – foundation for future growth 12

Q&A