Alimak Group Q2 and January - June, 17 August 2017 Tormod Gunleiksrud, CEO Per Ekstedt, CFO
Q2 Strong growth in the quarter ▪ Solid order intake, revenue and result ▪ Continued strong performance in Construction Equipment and After Sales ▪ Integration according to plan and significant contribution on order intake and revenues from acquired businesses 2
Q2 Strong growth in the quarter ▪ EBITA margin (adj.) of 14.5% (17.6), due to expected lower margin levels in acquired companies EBITA adj. MSEK 173 (92) ▪ Organic revenue growth was 20%, while reported revenues increased 128% MSEK 1,194 (524) ▪ Organic order intake growth was 14%, while reported order intake grew 120% MSEK 1,193 (543) Management assessment, if the acquired companies would have been fully consolidated by 1 January 2016: Order intake growth during January-June 2017 would have been 17% Revenue growth during January-June 2017 would have been 10% 3
Q2 Construction Equipment ▪ EBITA adj. was MSEK 42 (23). EBITA margin adj. of 16.0% (13.6) mainly driven by higher volumes and favorable product mix ▪ Organic revenue growth of +55% ▪ Organic order intake growth of +30% driven by strong underlying demand in all markets Order intake & Revenue EBITA adj. & EBITA margin adj. MSEK MSEK % 280 50 25 300 249 250 213 40 20 199 188 200 16.0 30 15 13.7 13.6 150 11.7 20 10 9.0 100 10 5 50 166 147 215 157 262 23 17 30 14 42 0 0 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Revenue Δ +57.5% Order intake Δ +32.4% EBITA adj. Δ +85.1% EBITA adj. % (Q2-17/Q2-16) (Q2-17/Q2-16) (Q2-17/Q2-16) 4
Q2 Industrial Equipment ▪ EBITA adj. increased to MSEK 27 (2). EBITA margin adj. of 5.1% (1.6) with significant impact from the acquired businesses ▪ Organic revenue growth was 6%, while reported revenue increased 406% ▪ Organic order intake declined 20%, while reported order intake increased 417% Order intake & Revenue EBITA adj. & EBITA margin adj. MSEK 573 600 500 400 319 300 200 111 82 41 100 105 79 123 330 530 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Revenue Δ +405.7% Order intake Δ +416.9% (Q2-17/Q2-16) (Q2-17/Q2-16) 5
Q2 After Sales ▪ EBITA adj. increased to MSEK 92 (59). EBITA margin adj. was 28.3% (34.5), due to expected lower margins in the acquired businesses ▪ Organic revenue growth was 6%, while reported revenue increased 89% ▪ Organic order intake growth was 28%, while reported order intake increased 82% Order Intake & Revenue EBITA adj. & EBITA margin adj. MSEK MSEK % 350 100 40 292 300 254 34.5 34.3 32.5 75 30 250 28.3 27.3 166 161 161 200 50 20 150 100 25 10 50 172 165 185 215 325 59 54 64 59 92 0 0 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Revenue Δ +89.2% Order intake Δ +81.7% EBITA adj. Δ +55.3% EBITA adj. % (Q2-17/Q2-16) (Q2-17/Q2-16) (Q2-17/Q2-16) 6
Q2 Rental ▪ EBITA adj. increased to MSEK 12 (9). EBITA margin adj. was 15.9% (10.7), driven by higher utilisation ▪ Organic revenue declined by 1% ▪ Organic order intake declined by 6% due to lower levels in Australia Order intake & Revenue EBITA adj. & EBITA margin adj. MSEK MSEK % 93 90 100 16 20 83 79 15.9 77 80 13.0 12 15 10.7 9.9 60 8.6 8 10 40 4 5 20 82 80 74 75 78 9 8 10 6 12 0 0 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Revenue Δ -4.8% Order intake Δ -5.0% EBITA adj. Δ +41.2% EBITA adj. % (Q2-17/Q2-16) (Q2-17/Q2-16) (Q2-17/Q2-16) 7
Q2 BA´s: Share of total Revenue & EBITA adj. ▪ Acquired companies integrated into business area Industrial Equipment & After Sales EBITA adj. Q2 2017 – share of group Revenue Q2 2017 – share of group total (Q2 2016) total (Q2 2016) Construction Construction Equipment 22% (32%) Equipment 24% (25%) Industrial Equipment Industrial Equipment 44% (20%) 16% (2%) After Sales 53% (64%) After Sales 27% (33%) Rental 7% (10%) Rental 7% (16%) 8
Q2 Order Intake & Revenue by Quarters MSEK 1,400 1,193 1,200 943 1,000 800 543 519 512 600 400 200 524 471 597 777 1,194 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Revenue Δ +127.7% Order intake Δ +119.7% (Q2-17/Q2-16) (Q2-17/Q2-16) 9
Q2 EBITA adj. & margin by Quarters MSEK % 200 40 150 30 100 20 17.6 17.6 15.5 14.5 11.7 50 10 92 73 105 91 173 0 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 EBITA adj. Δ +87.5% EBITA adj. % (Q2-17/Q2-16) Acquired companies fully consolidated in Q2 2017 impacting margins 10
Q2 Cash flow and Net debt Cash Flow, MSEK ▪ Solid financial position Rights issue fully subscribed 160 (MSEK 791 before issue costs) 135 140 ▪ Cash flow from operating activities was 120 MSEK 44 (67) 100 ▪ Net debt MSEK 1,140 (385) 80 67 ▪ Leverage (Net debt/EBITDA ratio) 60 44 44 at 2.44 (1.02) 40 Due to the completion of the 20 -8 acquisitions - leverage has increased 0 Leverage target: a net debt of around -20 2x EBITDA Q216 Q316 Q416 Q117 Q217 11
Q2 EPS by Quarters EPS, SEK * ▪ EPS SEK 1.48 (1.38) EPS impacted by higher tax in 1,6 1,45 1,4 acquired companies 1,2 1,20 1 0,95 ▪ 54,157,861 shares as of 2017-06-30 0,93 0,8 0,89 0,6 0,4 0,2 1,38 1,08 1,02 1,07 1,48 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Earnings per share, SEK² Earnings per share, SEK, as per numbers of shares at 30 June 2017 * Previous periods have been adjusted to take into account the change in the number of shares after completion of the rights issue in Q2 2017. The staples in the graph represent regulatory information while the line represents EPS calculated by the numbers of shares by 30 June 2017. 12
Q2 Mid Term Financial Targets Revenue growth target EBITA margin target Leverage target (net debt/EBITDA) 6% 15% 2.0x The Group’s mid -term target is to have an The Group’s mid -term target is to reach an The company will maintain an effective average annual organic revenue growth of operating EBITA margin of at least 15%. capital structure with a net debt of around at least 6%. 2.0x EBITDA. The capital structure will be flexible and allow for strategic initiatives. 13
Q2 Integration plan & progress ▪ Synergies of 2 percentage points (baseline 12.0%, actual proforma 2016) on the EBITA margin with full effect 2019 – Procurement and manufacturing optimization – After Sales Synergy potential • Increased footprint, size and utilization • Improved structure and service levels – Strengthened organization and structure ▪ Transformation ready by 2019 ▪ 15 cross functional work streams with the task to develop best practice across the organization ▪ Integration costs ~110 MSEK Integration plan – Costs expected to be incurred in 2017 and 2018 14
Q2 Summary ▪ Solid order intake growth during the quarter 14% organic ▪ Strong revenue growth 20% organic ▪ EBITA adj. margin of 14.5% reflects a solid margin in Construction Equipment, After Sales and Rental ▪ Challenges in Oil & Gas and General Industry but level of enquiries has increased ▪ Acquired companies performing in line with expectations ▪ Integration activities according to plan Management assessment, if the acquired companies would have been fully consolidated by 1 January 2016: Order intake growth during January-June 2017 would have been 17% Revenue growth during January-June 2017 would have been 10% 15
Q&A 16
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