Raute Oyj Class A · OMXHEX:RAUTE
Raute Oyj Class A — Q1 2023 Earnings Presentation
23 slides from Raute Oyj Class A's earnings presentation, Apr 28, 2023
Slide 1: Interim Report Q1 2023
Interim Report Q1 2023 Mika Saariaho, President and CEO 28 April 2023
Slide 2: Where are we now
Where are we now ✓ Good start of the year in challenging environment • M€ 49.6 mill order for Lumin as a highlight of the quarter; active discussions on other new mill orders and modernizations • Single line orders and services impacted by market uncertainties • Sales at good level and profitability
Slide 3: Raute Q1 / 2023 in brief
Raute Q1 / 2023 in brief • Q1 Net sales 11% below previous year Q1 Q1 Q1-Q4 › Wood Processing 20% below previous year due to Key figures 2023 2022 2022 high proportion of Russia in 2022 › Analyzers growth strong Net sales, M€ 36,8 41,3 158,3 › Services growing steadily Comparable EBITDA, M€ 2,8 -0,1
Slide 4: Order intake
Order intake 67 Asia-Pacific M€ North 2% Russia M€ 250 America 4% 0% Europe 200 16 % South America 150 78% 100 50 • Mill-size order for Lumin 49.6 M€ 0 received in March (in Q1 numbers) 2019 2020 2021 2022 2023 • Latvijas Finieris Verems order of 29 M€ received in April (not in Q1 numbers) Q1 Q2 Q3
Slide 5: Order book
Order book 121 M€ • Order book growing thanks to mill-size order received • Slow quarter for other orders • Remaining order book for Russia M€ 3 Rest of world Russia 5 www.raute.com
Slide 6: Net sales
Net sales Analyzers 11% M€ 180 36,8 M€ Wood Processing 160 66% Services 140 22% 120 100 Asia–Pacific 80 South 7% America 60 4% Europe Russia 48% 40 15% 20 0 2019 2020 2021 2022 2023 North America Q1 Q2 Q3 Q4 27% 6 www.raute.com
Slide 7: Comparable EBITDA
Comparable EBITDA M€ 2,8 M€ 8,0 6,0 • Q1 Comparable EBITDA M€ 2.8 4,0 and margin 7.7% 2,0 • Comparable EBITDA impacted by 0,0 • Improving margins and -2,0 reduced cost pressure -4,0 • Controlled wind-down of -6,0 remaining Russian order -8,0 book proceeding -10,0 -12,0 2021 2022 2023 Q1 Q2 Q3 Q4 www
Slide 8: Operating profit (YTD)
Operating profit (YTD) M€ 10,0 0,9 M€ • Q1 operating profit M€ 0.9 5,0 • Operating profit negatively 0,0 impacted by • Shanghai market area closure costs (M€ -0.6) -5,0 • Cloud-based ERP implementation costs -10,0 (M€ -0.3) -15,0 -20,0 2019 2020 2021 2022 2023 Q1 Q1-Q2 Q1-Q3 Q1-Q4 www.raute.com
Slide 9: Segment performance
Segment performance Net Sales Comparable EBITDA 1,5 35 30 1 25 0,5 20 0 15 -0,5 10 -1 5 0 -1,5 Wood Processing Analyzers Services Wood Processing Analyzers Services Q1 2022 Q1 2023 Q1 2022 Q1 2023 9 www.raute.com
Slide 10: Capital expenditure and Depreciation and amortization
Capital expenditure and Depreciation and amortization M€ M€ 8 8 0,9 7 M€ 7 6 6 • Key items in Capex include 5 5 renewal project for ICT and 4 4 ERP systems 3 3 2 2 1 1 0 0 2019 2020 2021 2022 Q1 2023 Capital expenditure Depreciation and amortization, excl. depreciation from right-of-use assets 10 ww
Slide 11: Research and Development
Research and Development M€ 1,3 % 7 M€ 5 6 4 5 3 4 3 2 2 1 1 0 0 2019 2020 2021 2022 Q1 2023 R&D costs R&D costs, % of net sales 11 www.raute.com
Slide 12: Personnel
Personnel Headcount at the end of the period, in books 733 Others China 5% 800 8% 700 600 North America 17% 500 400 300 200 Europe 100 71% 0 2019 2020 2021 2022 31.3.2023 12 www.raute.com
Slide 13: Equity and Return on equity (ROE)
Equity and Return on equity (ROE) M€ % 60 7,7 30 % 20 50 10 40 0 30 -10 -20 20 -30 10 -40 0 -50 2019 2020 2021 2022 31.3.2023 Equity Return on equity (ROE) 13 www.raute.com
Slide 14: Market capitalization and Share price
Market capitalization and Share price M€ €, at the end of the period at the end of the period 120 30,00 41,4 € M€ 9,70 100 25,00 80 20,00 60 15,00 40 10,00 20 5,00 0 0,00 2019 2020 2021 2022 31.3.2023 2019 2020 2021 2022 Q1 2023 Share price at the end of the period Market cap Average share price for
Slide 15: Income statement, Balance sheet and Key ratios
Income statement, Balance sheet and Key ratios Q1 Q1 Balance sheet, M€ 31.3. 31.12. Income statement, M€ 2023 2022 2022 2023 2022 Net sales 36,8 41,3 158,3 Goodwill 1,7 1,7 Operating result 0,9 -1,5 -14,6 Other intangible assets 10,0 9,4 Financial expenses, net -0,1 0,3 0,8 Property, plant and equip
Slide 16: Outlook for 2023
Outlook for 2023 Business environment Raute • Looking ahead in 2023, market situation expected to • ERP-system go-live at main site in Nastola continue uncertain, although principal interest to scheduled for Q2. Minor disturbance on business Raute’s solutions so-far remaining quite good operations p
Slide 17: Raute strategy 2028
Raute strategy 2028 17 www.raute.com
Slide 18: Our purpose Our Promise
Our purpose Our Promise We are the partner to future-proof the wood industry. With our unique solutions, we drive change and promote resource- efficient society. 18 www.raute.com
Slide 19: Strategic themes 2023–2028
Strategic themes 2023–2028 Increase Exceed market profitability and growth and decrease volatility expand offering Drive ESG agenda in our industry 19 www.raute.com
Slide 20: Strategic themes of Raute's business units
Strategic themes of Raute’s business units Raute close to the customer • Wood Processing – Profitability improvement, geographical expansion and increasing modernizations • Services – Expansion of the global network of services and offering of digital services • Analyzers – New software solutions th
Slide 21: Financial targets 2023–2028
Financial targets 2023–2028 Comparable EBITDA Net sales over margin Equity ratio over 250 40 % 12 % 40 % EUR million including Services and Analyzers on average over cycle both organic and relative share of the inorganic growth Group’s net sales Dividend policy: stable and sustainable dividend over
Slide 22: Further information
Further information Mika Saariaho President and CEO +358 40 1549393 [email protected] Minna Yrjönmäki Interim CFO +358 40 5702067 [email protected] 22 www.raute.com
Slide 23: Thank you for your interest!
Thank you for Follow us online: your interest! www.raute.com Twitter: @rautemachinery, @RauteOyj LinkedIn: Raute Oyj Youtube: www.youtube.com/RauteMachinery Facebook: Raute Corporation Instagram: @rautecorporation