Ferronordic Ab · OMXSTO:FNM
Ferronordic Ab — Q4 2023 Earnings Presentation
19 slides from Ferronordic Ab's earnings presentation, Feb 23, 2024
Slide 1: Ferronordic Fourth quarter 2023
Ferronordic Fourth quarter 2023
Slide 2: Q4 2023: A restart
Q4 2023: A restart Key Group and segment items: • Successful completion of Rudd acquisition in the US in Q4 2023 • Rudd result consolidated for December and balance sheet on 31 December 2023 • Group revenue increased by 30% to SEK 915m mainly driven by USA • Operating result declined to SEK -62m or
Slide 3: Q4 2023 A restart
Q4 2023 On November 30, the A restart acquisition of Rudd Equipment Company • On 30 November, Ferronordic acquired the Rudd Equipment Company, a major dealer of was completed Volvo CE and certain other brands in the US • In a strong December, Rudd had revenue of SEK 308m, with an operating profit of
Slide 4: Acquisition of Rudd - details
Q4 2023 Acquisition of Rudd - details Ferronordic paid USD 95m for 100% of • Acquisition announced on 13 November and completed on 30 November the shares in Rudd • Ferronordic paid USD 10m for 2 workshops and USD 95m for 100% of the shares in Rudd • During the full year 2023, Rudd had revenue of USD
Slide 5: Group summary financials
Q4 2023 Group summary financials SEK 915m Group revenue +30% to SEK 915m (+30%) revenue • German revenue -10% to SEK 555m (-14% in EUR) • CA revenue -41% (-41% in local currency) to SEK 52m • US revenue contribution of SEK 308m (December 2023) SEK -62m Group operating profit increased to SEK -62m op
Slide 6: Germany operational highlights
Q4 2023 Our new truck sales in Germany operational highlights units decreased by • Based on registrations of new trucks, the total German market for heavy 58% to 167 units in Q4 trucks increased by 5% in Q4 20231 2023 • New trucks registered in Ferronordic’s sales area increased in line with market
Slide 7: Germany efficiency program
Germany efficiency program • Ferronordic has taken measures to make its organisation in Germany more We have reduced the number of efficient and to reduce costs regions in our sales area from • One key objective is to increase Ferronordic’s absorption level; how much of four to two… fixed costs are
Slide 8: CA operational highlights
Q4 2023 Sales of new machines CA operational highlights in units decreased by 35% to 17 • The Kazakh market for construction equipment is supported by Kazakhstan’s growing role as a regional hub, strong commodity prices and big infrastructure projects • Despite a strong economy and supportive govern
Slide 9: US network
US network • On November 30 Ferronordic acquired 100% of the shares in the Rudd Equipment Company IL IN OH PA • Rudd is one of the largest distributors of WV MO KY Volvo CE as well as other strong brands such as Hitachi, Sandvik and Link-Belt • The company’s sales area for Volvo CE covers all or par
Slide 10: German network
German network • Fulda - Transaction closed in January 2021 • Limburg - Transaction closed in April 2021 • Nordhausen - Transaction closed in June 2021 Hanover • Bergstrasse - Transaction closed in October 2021 Peine Barleben Coswig • Bingen, Kirn and Simmern - Transaction closed in Northeim Dessau
Slide 11: Kazakh network
Kazakh network Astana Ust-Kamenogorsk Aktobe Karaganda Atyrau Aschaffenburg Almaty Shymkent 11 (7) Ferronordic outlets in Kazakhstan as of February 2023
Slide 12: Economic development
Economic development US economy • US grew 2.5% in 2023 • +2.5% GDP in 20231 and +1.4% GDP expected in 20242 • Core PCE inflation at +2.9% in 20233 • Effective Fed Funds Rate stands at 5.33%4 • Germany German economy • -0.4% GDP in Q4 2023, -0.3% GDP in 20235 declined -0.3% in 2023 • 0.9% expected in
Slide 13: Income statement
Q4 2023 Income statement Q4 2022 Q4 2022 Q4 2022 Q4 2022 Q4 2023 Q4 2023 Q4 2023 Q4 2023 % change SEK MM • Total revenue up by +30% to SEK 915m** CA Germany US Group CA Germany US** Group Group o 61% Germany, 34% US and 6% CA FX (SEK/KZT, SEK/EUR, SEK/USD) 43.99 10.93 43.73 11.48 10.69 o 69% equipme
Slide 14: Segment reporting
Q4 2023 Segment reporting Unallocated US Germany CA Total Group costs1 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 SEK m (or as stated) External revenue 308 0 555 616 52 89 915 705 Equipment and truck sales 212 0 379 459 39 75 630 534 Aftermarket sales 80 0 157 13
Slide 15: Balance sheet
Q4 2023 Balance sheet US • PP&E increased Y-o-Y mainly due to the SEK MM Q4 2022 Q3 2023 Q4 2023 US business acquisition and addition of Q4 2023 FX SEK/EUR 10.93 11.76 11.48 rental fleet in the US FX SEK/USD - - 10.69 10.69 • In CA, net working capital increased FX SEK/KZT 43.99 42.10 43.73 Q-o-Q fr
Slide 16: Group net debt development Q4 2023
Group net debt development Q4 2023 US net debt before Net cash BoP US business acquisition acquisition Working capital increase Other Net debt EoP 500 378 0 SEKm -1 093 -500 65 -1,349 -1,000 -487 EBIT Q4 19 -133 EBIT Q4 20 -14 -1,500 16
Slide 17: Group NAV Q4 2023
SEKm 1,000 2,000 3,000 4,000 5,000 0 Cash and equivalents 426 EBIT Q4 19 Trade and other receivables Inventory 637 1,443 Group NAV Q4 2023 Property, plant and equipment 1,828 Other assets 371 Trade and other payables 997 Borrowings 1,695 Lease and other liabilities 391 65 EBIT Q4 20 NAV 1,622 17
Slide 18: Outlook
Outlook After a challenging and transformative 2023, we look forward with confidence to a restart in 2024. We are optimistic about our expansion in USA and the opportunities there. USA is the world's second largest market for construction equipment. Demand is supported by a dynamic economy and exten
Slide 19: In Ferronordic
IN FERRONORDIC