Ferronordic Ab · OMXSTO:FNM
Ferronordic Ab — Q1 2023 Earnings Presentation
19 slides from Ferronordic Ab's earnings presentation, May 11, 2023
Slide 1: Ferronordic First quarter 2023
Ferronordic First quarter 2023
Slide 2: 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 3: Q1 2023 Positive operating profit 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 4: 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 5: 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 6: 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 7: Business development
Business development Germany Looking at new markets and business opportunities • In the quarter, we launched operations at our new workshop in Peine • We had an opening ceremony with partners and customers at our new service and sales hub in Hannover • Ferronordic continues to work closely with part
Slide 8: German network expansion
German network expansion • Fulda - Transaction closed in January 2021 • Limburg - Transaction closed in April 2021 • Nordhausen - Transaction closed in June 2021 Hanover • Service and sales hub in Hanover Peine Barleben Coswig • Greenfield Dessau Nordhausen • Investments in 2021 and 2022 Kassel Leip
Slide 9: Kazakhstan network
Kazakhstan network Astana Ust-Kamenogorsk Aktobe Karaganda Atyrau Aschaffenburg Almaty Shymkent (7) Ferronordic outlets in Kazakhstan as of May 2023 9
Slide 10: Economic development
Economic development Germany’s economy • Germany +0.5% in Q4 2022 • +1.8% GDP in 2022 and +0.2% GDP in Q1 20231 • +0.1% GDP expected in 20232 • +1.4% GDP expected in 20242 Inflation reached 8.7% Y-o-Y in • Inflation rate at +7.9% in 2022 and +7.2% in April 20233 January 2023 • Kazakhstan • +3.3% GDP
Slide 11: 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 12: 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 13: Germany: Trend in operating result and margin
Germany: Trend in operating result and margin 10 5% 5 0,8% 0 0% -0,4% -1,6% -1,4% -1,8% -2 -5 -7 -7 -10 -5% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Operating profit (SEK m) Operating margin (%) 13
Slide 14: Kazakhstan: Trend in operating result and margin
Kazakhstan: Trend in operating result and margin 10 15% 7 10% 10% 9% 5 9% 8% 5 4 3 6% 5% 2 0 0% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Operating profit (SEK m) Operating margin (%) 14
Slide 15: Balance sheet
Q4 2022 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 16: Group NAV Q1 2023
SEKm 0 1 000 2 000 3 000 4 000 Cash and equivalents 1 574 EBIT Q4 19 Trade and other 373 receivables Inventory 534 Group NAV Q1 2023 Property, plant and 557 equipment Other assets 166 Trade and other payables 392 Borrowings 834 91 Lease and other liabilities 65 EBIT Q4 20 NAV 1 886 16
Slide 17: 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 18: 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 19: Ferronordic
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