Ferronordic Ab · OMXSTO:FNM
Ferronordic Ab — Investor Presentation (May 2023)
31 slides from Ferronordic Ab's investor presentation, May 11, 2023
Slide 1: Company Presentation May 2023
~~ FERRONORDIC Company Presentation May 2023
Slide 2: Introduction to Ferronordic
CIS Introduction to Ferronordic • Dealer of Volvo CE in Kazakhstan from January 2019 • Dealer of Mecalac in Kazakhstan from January 2019 Group • Dealer for Sandvik mobile crushers and screens in Kazakhstan from • Founded in 2010 September 2022 • Listed on Nasdaq Stockholm • Service and technical sup
Slide 3: Introduction to Ferronordic
Introduction to Ferronordic Development Employees Revenue (SEKm)1 Outlets 2010 (Start) ~160 1,184 6 Employees Revenue (SEKm)1 Outlets Q1 2023 464 2,149 28 Revenue by Activity (LTM) Revenue by Industry - CIS (2022) Othe r Re ve nue 5% Ge ne ral Quarrie s & Construction & Aggre gate s Equipme nt Othe
Slide 4: Value pyramid
Value pyramid Vision • Being the leading service and sales company in our markets Mission • Support the growth and leadership of our customers • Quality Values & • Excellence Operating Principles • Respect • Diversified experience • Innovative solutions Our Offer • Complex approach • Superior servic
Slide 5: Germany: Europe's largest truck market
Germany Europe’s largest truck market Heavy truck registrations in Germany (units) 80 000 120 70 264 70 000 67 797 68 450 115 65 280 66 441 61 940 60 218 58 574 57 988 110 60 000 55 167 55 215 55 386 55 089 50 427 105 48 827 50 000 40 322 100 40 000 95 30 000 90 20 000 85 10 000 80 0 75 2008 2009 20
Slide 6: Kazakhstan: Key regional hub
Kazakhstan: Key regional hub CIS Kazakhstan at a glance Kazakhstan’s GDP development5 • Population: ~19 million1 6,0% 4,8% 4,9% • Area: 2.7 million sq. km1 4,2% 4,1% 4,1% 4,5% 4,3% 3,3% 4,3% • Major transport and logistics hub in the region linking Europe and Asia • Rich in oil & gas (35% of GDP and
Slide 7: Strategic objectives
Strategic objectives Leadership in the market Aftermarket absorption Expansion into related for construction rate of at least 1.0 x business areas equipment and trucks Expansion and Industry leading digital development of Geographic expansion service and sales platforms contracting services 7
Slide 8: Strategic cornerstones
Strategic cornerstones Customer Orientation Build on Strong Brand - Volvo Customer centricity World leading manufacturer of trucks and construction equipment Leading service and product availability Strong brand position Tailored customer solutions (including contracting and other business
Slide 9: UN Sustainable Development Goals
UN Sustainable Development Goals 7 12 13 14 15 3 4 5 10 Minimum emissions and waste High-quality, long-life, fuel- efficient and safe machines Injury-free objective Maximising uptime for efficient 57,000 hours of training and production development Focus on sustainable transport Strivi
Slide 10: Product offering
Product offering Volvo CE Volvo & Mecalac Sandvik Renault Trucks Since Since Since Since 2019 2020 2019 2022 Product Range Product Range Product Range Product Range Mobile Crushers and Full VCE Range Full Volvo & Renault Trucks Backhoe Loaders and Range Compact Equipment Screens Area Area Area Area
Slide 11: Germany network
Germany Network • Ferronordic expanded to become dealer for Volvo and Renault Trucks in Germany in January 2020 • Germany is Europe’s largest trucks market Hanover with 55,000 registrations in 2022 Peine Barleben Coswig • Ferronordic’s sales area covers approx. 20% Dessau Nordhausen of the German ma
Slide 12: Kazakhstan network
Kazakhstan Network Astana Ust-Kamenogorsk Aktobe Karaganda Atyrau Aschaffenburg Almaty Shymkent 12 (7) Ferronordic outlets in Kazakhstan as of May 2023
Slide 13: Complexity of Customer Demand
Moving torward further customer integration Complexity of Customer Demand Business Consultancy Business Services Open Platform Total Cost of Ownership Customised Solutions Upcycling Part Sales Services Rental Segment Experience Grow in new Machine/Truck Sales Finance Segment Ferronordic’s Offering 1
Slide 14: Aftermarket focus
Aftermarket Sales Aftermarket focus • Proactive customer coverage based on real- time data from the existing machine population Share of sales Share of sales (LTM) CIS (LTM) Germany • Proprietary system transforms machine telematic signals (e.g. VCE’s CareTrack) into Other 5% sales leads on the mobi
Slide 15: Connectivity & Digitalisation
Connectivity & Digitalisation Focus on growing sales Telematics System Rules Engine Customer Proposals Sales Action Follow Up • Telematics systems, e.g. • Signals from the telematics • Sales leads and concrete • Responsible sales • Customer proposals Volvo CE’s CareTrack, systems flow through the cu
Slide 16: Contracting services
Contracting services Integrating with our customers Traditional method Contracting services • Part of strategy to become increasingly integrated in the business of our customers • In addition to supplying and maintaining machines, we Machines provide customers with operators to carry out specific wo
Slide 17: Volvo & Renault Trucks Germany
Volvo & Renault Trucks Germany Authorised aftermarket dealer for Volvo and Renault Trucks in parts of Germany • Ferronordic services and sells Volvo and Renault trucks, trades and restores used trucks and manages a trucks rental business • Ferronordic will invest to grow and improve network in area
Slide 18: Cash flow & capital allocation
Cash flow & capital allocation Working Capital Development Net Debt/(Cash) Development 1 200 30% 800 1184 23% 1 000 400 712 579 800 917 20% 255 0 SEKm SEKm 600 18% 11% -400 -681 400 14% 503 10% 225 -800 -957 200 3% 215 0 0% -1 200 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 20
Slide 19: First quarter 2023
~~ FERRONORDIC First quarter 2023 May 2023
Slide 20: Milestone reached in Germany
Milestone reached in Germany Group • 39% revenue growth on strong performance in both operating segments • Improvement in operating result to SEK -14m and in operating margin to -2.2% • Ferronordic continues to explore new growth opportunities Germany • Revenue increased 30% to SEK 548m, partly due
Slide 21: Q1 2023 Positive result in Germany
Q1 2023 Positive operating profit for the quarter Positive result in Germany in Germany • Focus on Germany and Kazakhstan and on Ferronordic's next growth opportunities • Positive operating profit in Germany for the first time since the start of operations in 2020 • Result of growing our network fro
Slide 22: Q1 2023 Group summary financials
Q1 2023 Group summary financials SEK 631m Group revenue +39% to SEK 631m (+39%) revenue • German revenue +30% to SEK 548m (+22% in EUR) • Truck sales +31% (+22% in EUR), aftermarket sales +33% (+25% in EUR) and other sales +11% (+4% in EUR) • CIS revenue +138% (+113% in local currency) in SEK 83m SE
Slide 23: Q1 2023 Germany operational highlights
Q1 2023 Our new truck sales in Germany operational highlights units increased by 8% • Based on registrations of new trucks, the total German market for to 244 units in Q1 2023 heavy trucks increased by 19% in Q1 2023, mainly as supply improved1 • Rigids increased by 11% while tractors grew by 24% •
Slide 24: Q1 2023 CIS operational highlights
Q1 2023 173% growth CIS operational highlights in equipment sales (144% in local currency) in Q1 2023 • The Kazakh market is supported by Kazakhstan’s growing role as a regional hub, strong commodity prices and big infrastructure projects • In Q1 2023, the Kazakh market for construction equipment de
Slide 25: Germany: Trend in operating result and margin
Germany: Trend in operating result and margin 10 5% 5 0,8% 0 0% -0,4% -1,4% -2 -1,6% -1,8% -5 -7 -7 -10 -5% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Operating profit (SEK m) Operating margin (%) 7
Slide 26: Kazakhstan: Trend in operating result and margin
Kazakhstan: Trend in operating result and margin 10 15% 7 10% 9% 10% 9% 5 8% 5 4 6% 3 5% 2 0 0% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Operating profit (SEK m) Operating margin (%) 26
Slide 27: Q1 2023 Income statement
Q1 2023 Income statement Q1 2022 Q1 2022 Q1 2022 Q1 2023 Q1 2023 Q1 2023 % change • Total revenue of SEK 631m SEK MM CIS Germany Group CIS Germany Group Group o 87% Germany and 13% CIS FX (SEK/KZT, EUR/SEK) 48.73 10.48 43.59 11.20 o 70% equipment and trucks, 26% New units sold 12 226 238 23 244 267
Slide 28: Q1 2023 Segment reporting
Q1 2023 Segment reporting Unallocated Germany CIS Group costs3 Total Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 SEK m (or as stated) 2023 2022 2023 2022 2023 2022 2023 2022 External revenue 548 420 83 35 631 455 Equipment and truck sales 375 287 68 25 443 312 Aftermarket sales 149 112 15 10 164 122 Other revenue 23 21
Slide 29: Q1 2023 Balance sheet
Q1 2023 Balance sheet SEK MM Q1 2022 Q4 2022 Q1 2023 • PP&E decreased Y-o-Y mainly due to the disposal of Russian subsidiaries FX (SEK/KZT, EUR/SEK) 49.42, 10.34 44.29, 11.13 43.08, 11.28 • In CIS, net working capital Property, plant and equipment 950 560 557 increased Q-o-Q from -3% to 17% of LTM r
Slide 30: Outlook
Outlook In Germany, we continue to see strong demand for service and trucks, despite concerns about a weaker economy. Supply constraints continue to limit market growth. Our sales area is at the heart of Europe’s transport business and benefits from commercial activity across industries. We also see
Slide 31: n~ FERRONORDIC
n~ FERRONORDIC