Alimak Group AB (publ)

And yeah, welcome to this Q1 call for 2025. And as always, as you've already heard, Sylva is with me here. Let's turn page and a short recap of the group. Well diversified industrial company. We are a leading provider of sustainable vertical access and working at height solutions. We have some fundamental drivers for success. And those you see to the right here, we are supported by global trends. even though we all have also something now which works against us, as we all know, but it's not really a global trend. We have a leading market position in focused niches. We have a very solid global footprint with a large installed base, which is also a fundamental piece in our spare part and service business globally. And altogether, we have a strong balance sheet, good cash conversion and a very solid financial position. turning page new Heights this is the transformation program we started in 2020 and which we are staying loyal and true to and we are now in the last part of this first phase the 25 year where we are now in profitable growth and as you will see we are still delivering profitable growth sorry the divisional structure you see down below and the strategic house this is really our value creation engine where the divisions are fully owning their full business and now as we have also talked about you know we are working on our 2030 plan the new heights 2.0 which we will come back to during the bottom where the focus will be even stronger profitable growth up to 2030. Turning page these are our financial and sustainability targets and yeah those of you that have followed us know that we have been delivering on our targets this is the second set that we have since we started new Heights and we are well en route to meet all of these if you are not already there and as you will also see more today turning page to say some few words about this tariff situation unfortunately it's something that we need to spend the time on and i believe it's both unlogical and counterproductive and it doesn't do anyone good and maybe at least the us uh but as a global group of course is something we need to manage and uh it's like any other thing that we are managing in the global business so and i think we are managing it in a in a good way short term we of course have been working on like everyone with pricing management the terms and conditions to manage to ensure that we can actually move on the tariffs and also of course also optimizing our supply chain and i think we are in a good position to to continue to manage this However, there's also this global economy effect and the markets, you know, how they turn and it's increased uncertainty. But all of this, it's also the risk, as we know, for a global GDP slowdown. And we also see, maybe specifically in the US, continued delay of investments decisions because of all the uncertainty. But we have not seen any significant impact on our competitiveness. We have competitors, of course, but they are all in the same position like us. No real making stuff in US. So we also feel very strongly that we are able to pass this on to the market. And we are confident that our model will continue to help us manage through these turbulent times. Turning page and diving into Q1. Started off 25 in a very good and strong way, I would say, continuing our new heights journey, driving profitable growth. We deliver a strong order intake in the quarter, up 16% and reaching now more than 2 billion SEC. We also deliver a strong earning and margin uptick with the margin from now 17.3 versus 16.4 last year. We made a smaller acquisition during the quarter where we acquired key assets from a Spanish company, Kamak Miner, which went bankrupt. And that also says something about the competitiveness now and the difficulty in the construction market where we are managing, I would still say, in a very strong way, in a very difficult market. And I'll come back to this Kamak Miner a little bit later. And altogether, we also report a very solid financial position, taking down our deleveraging to 1.58 in the quarter. And this also, again, really opens the door for us for driving acquisitions, which we're now also working even more actively on. Turning page, the details of Q1 for the group. Order intake was... 2 billion, 0.05, up 16%, 16% of concentrates also. Strong performance in industrial wind facade access and HSPS divisions. Revenue was 1 billion, 732, flat to last year. And EBITDA, we reported 300 million sec up from the 285, giving this margin of 17.3 versus the 16.4. and supported by strong performance in construction and HSPS. So we continue on our strong trend of profitable growth in a very challenging macro environment. And again, I think we are very well positioned to manage what comes ahead of us. Turning page, service. This is, as we all know, a fundamental piece of the group and also for each division. So very happy to see that we are continuing to grow this strongly. Order intake increased by 9% in the quarter, also in fixed currencies. 819 million SEK now, up from 748. Revenue was more or less flat. and 643 versus the 638 creates resilience of course and opportunities and is something we really strategically continue to to drive turning page and diving into the divisions facade access i would say good performance in remaining challenging markets order intake was 496 million sec up 17 or 16 percent that concentrates we saw a strong order intake driven by equipment orders in hong kong and australia and also also with refurbishment orders in malaysia order intake in emea was also strong supported by the middle east and particularly uie While we continue to see that the North American building maintenance unit market for the tall buildings continues to be soft. And that's been there from the pandemic hit and through the interest rates and now through the tariff situation. But it is something that the pipe is there. It's just that it's not being kicked or started. So it will come at some certain stage. Absolutely. Revenue was 482 million SEK, down 1%. EBITDA at 46 million SEK, flat to last year, and also margin-wise, 9.5%, same as last year. And this was negatively impacted in the quarter by some significant work in the final phase of some larger legacy projects. And we have talked about this before that we see that the 25 is the year where we will start to really phase out and should end these older legacy projects. So I can't give you exact timing throughout the year, but it's something that we are now finalizing throughout the year. But also that the building maintenance unit market is soft and that's also of course affecting somewhat our factory utilization. Turning page, we continue to drive what really we can affect, you know, it's the aftermarket service, retrofit, refurbishment and replacement. And this continues to serve us very well. It's an important piece of the business and a growing piece. We also continue to focus heavily on infrastructure and we launched what you can see up right there, infrastructure access solutions. So really to take an even more strategic drive towards the infrastructure. and we also continue to focus on low complexity equipment and we saw good development both in asia pacific and emea in the in the quarter we drive organizational change and the developed organization you know we have closed down a factory in germany last year now it's empty and the land was sold in the quarter while we're also opening a new office in indonesia to also ensure further growth So we continue to drive this transformation program that we have set out to do to secure margin improvements and maintain this focus on these areas I mentioned. And as you also all know now, this is a division which have full focus from Filip. He was in the first phase now of the Tractel integration, managing both Fasadex S and HSPS. While now, you know that, you know, first phase of the tracktail integration, I would say is really done in a very well way. So it was time to really stay true to the full overall concept that we have one EVP for each division. So now Filip will give this division full attention. Turning page, construction, also very solid performance. Order intake was 490 million sec, up 1% and 1% also in fixed rates. Solid order intake for rental in Australia. We saw also used equipment in Europe continues to develop very well for us. But overall also a very high book to bill ratio. And this is a high order intake level. So it's a good level for us. Revenue was 413 million SEK, up 11%, 11 at constant rates. And the increase was driven also by the good order intake in Q4. EBITA margin or EBITA was at 66 million sec up from the 39 giving a margin of 16.1 versus the 10.4 and it was driven by higher volumes and then primarily in hoist mass climbing work platforms and the spare parts which then have led to a improved factory utilization. Turning page. so yeah we made a small acquisition in the quarter we know many of our competitors struggle in these times and have struggled for a long time and this was one that went bankrupt but they have some very nice products that we were able then to acquire the ip We acquired the spare parts and the inventory and of course also the customer lists. And it's some ladder hoist solution they have. They have a hoist or a winch that fits into the Tractel portfolio. hsps and they also have this rack and pinion lighter base which they have more than 2 000 installed machines around the world which we now will both service and provide spare parts and also hopefully convert in due time We have launched the Vectio 350, a lighter transport platform in the quarter and we saw some nice orders coming from this and this is also a machine which is now having this some new features with the smart mode for both safety and ergonomics. The STS-300 that we launched now, it's almost two years ago. It takes time. The industry is very traditional. But now we really start to see this product moving. And this is a machine then to optimize and make more safe and effective installation and the installation of scaffolding systems. overall i would say construction continue to deliver very well in the remaining challenging market we continue to invest in this business and we will for sure be very well positioned for the day when the market really starts to come back Turning page, HSPS, also very good start. Order intake 382 million, up 14%, 13% at constant rates. Strong order intake of temporary access solutions in North America, and also we saw nice orders in the Middle East and India on the elevator customer segment. Revenue was 349 million SEK from 354 down 1% or 2% at constant rates and it's mainly impacted by also the exposure we have here to the construction end market and specifically in Europe then. EBITDA at 70 million SEC, up from 61 million SEC, giving a margin of 20%, 17.4 last year, and driven by and supported by higher gross margin, favorable product mix, and also good cost control. So happy to see this is continuing to deliver well. Turning page. Focus here. Temporary access solutions in North America. Really happy to see it's coming back. It has been slow moving and these are suspended access. Many also call them. So these are, as you see up right in the picture, machines used for maintenance of facade. um hanging up from the top so typically a solution that would be in a city like new york you would see a lot of this so it's not for everywhere but some markets really do this and we have the drive units so it's an important piece for our business We also see continued success in our confined space. It's an initiative that has been driven for quite a long time and now we start to see some business coming both in Spain and in the Netherlands. Water companies are adopting our product. And of course, we continue to drive heavily product development changes. Now we have EVP, which is full time here. Jose Maria that has been driving wind for many years is now full time here. And I'm sure we will see both changes and we will have benefits from really getting both new eyes and the full time focus on this business. Turning page, industrial, also here, very solid start. Order intake was 432 million SEC, up 32% or 31% at fixed rates. Yeah, and the strong growth, of course, leads to a significant backlog increase during the quarter. Good growth for both new equipment and aftermarket. North America, Middle East are the areas within the quarter that are delivering most growth. Revenue was 354 million SEK, down 11%. And this is just due to timing of new equipment deliveries. As you know, this is also project business, not normally that very long project, but still projects. And the timing of when you close them is, of course, important. And that's the only thing that sits in the somewhat lower revenue in the quarter. EBITDA at 90 million SEC, down from 106, giving still a very high margin of 25.3% versus 26.6, but impacted then by lower revenue, partly offset by improved gross margins and also a nice aftermarket sales share. Turning page and industrial, we continue to do what we have done for a long time. We are focusing on customers, we are focusing on segments, being closer, developing better solutions, understanding customer needs. And more and more segments come into this. We are driving, of course, cement, oil and gas, heavy industries. water ports and also data centers is a nice growing area for us so fundamental piece of the strategy then we saw as i mentioned last quarter we developed this mini 400 as a alicom replacement now we have seen the first orders coming and we continue also here to invest in both product development and sales resources globally which you also see a little bit in in their result Sorry. Wind. Strong start also for wind. Order intake was 217 million sec, up 24% or 25% at constant rates. Strong growth for new equipment in Asia Pacific and also a promising start in North and Central Europe. Especially the aftermarket is important in the quarter. Revenue was 153 million sec, flat to last year. So stable. And related to the order intake, of course, but also important to note, it's a very solid uptick in the order book in the quarter. EBITDA at the 28 million SEC, slightly down from the 30 last year, margin of 18.2 versus 19.8. Still, I would say this is the margin which is a good level for this business. It's very competitive. uh this was slight decrease due to some mixed effects and uh you know but here we also continue to invest turning page so yeah continue to drive operational excellence improving processes manufacturing focusing on both safety and efficiency cost out to stay competitive in this industry, but also focusing on the top line, you know, investing in both the markets and also our products to ensure that we will continue to grow in this business. And now it's then Rafa, which was the COO in the wind division over many years, which is now the head of OWIND. So that takes us to the profit and loss and Sylvain.

Thank you very much, Ulle. Good morning, everybody. And then once again, we are pleased to report an adjusted EBITDA growing more than revenue in the quarter. It's a 5% growth for adjusted EBITDA versus almost flat revenue. And I will provide some additional color on the next slide. Items affecting comparability relate to the sale of the Mammondorf real estate. We sold the premises and received 100% of the cash in the quarter. With that sale, the restructuring project is basically completed in a successful way. Below EBITDA, quarterly amortization is coming down. This is due to Intangible assets related to the Tractel acquisitions, which were fully amortized in 2024. Finance net is down as well, and that's coming from a lower debt level, low interest. And with 44 million SEC, we are close to what we expect this year, which is around 40 million SEC per quarter in the year. Taxation rates in the quarter has come down as well slightly to 25.5% versus 26.1% in Q1 2024. And that's basically factoring the evolution in the country mix. With that taxation rate, we are basically very close to what we normally expect in the group, which is around 25% taxation rate as a recurring rate. Combining an improvement in adjusted EBITDA, the moment of capital gain, lower amortization charge, we have a very nice growth in EBIT this quarter. It's a 28% growth. And if we add to that growth the effect of lower finance net, lower taxation rate, that together leads to a very strong increase in the net result for the period. It's a 40% increase versus Q1 last year. Now moving to the main drivers behind the improved adjusted EBITDA. It was a very good quarter for a gross margin. We saw margin expansion for industrial construction and high safety productivity solution divisions. Facade access and wind were flat in the quarter. And there are some, of course, some specific drivers for some divisions explaining the improved gross margin, but there are some common drivers as well. All divisions have been working on their manufacturing costs, on their supply chain, on their ability to pass on to the market unavoidable cost increases. And those actions play a big role in the gross margin improvement in the quarter. Regarding operating expenses, if one excludes the effect of items affecting comparability, we saw a slight increase in the quarter as a percentage of revenue, 24.8% versus 24% in Q1 2024. And that increase is basically due to the industrial division, which has a larger sales organization in order to support the growth. All other divisions were either flat or slightly decreasing their G&A in the quarter. despite some cost inflation, typically labor, despite some increases in specific expenses, such as product development, digital. So that shows that we continue working on our cost efficiency, increasing expenses, which are required to serve our strategy, but reducing some costs as well when we don't need them. Let's move on to the result for the period. So as I said earlier, it's a 40% growth in the quarter to 184 million SEC versus 131 million SEC in Q1 2024. Excluding items affecting comparability, the result for the period was 156 million SEC versus 135 last year. That's a 16% increase. EPS was 1.74 sec versus 1.24 last year and adjusted for items affecting comparability and acquisition related amortization, EPS was 1.79 sec versus 1.66 in Q1 last year. If we move to cash flow now, cash flow from operations was 175 million SEC this quarter, slightly below last year. It was a bit soft and mostly related to an increase in working capital driven by higher inventories. Some of it is due to temporary increases, for example, work in progress in Facade Access corresponding to projects which will be fully delivered later in the year, so it will be reversed. Some of it may correspond to additional businesses such as mass climbing work platforms in Australia in the construction division. In the long run, we are confident we can keep working capital stable as a percentage of revenue and we will continue to focus highly on cash generation. Next page relates to net debt and ROSI. Net debt came down to 2.4 billion SEC in the quarter versus 2.6 2.6, sorry, end of Q4 2024. And that decrease is driven by the revaluation of the EuroTerm law mainly. Our leverage came down to 1.58. That was 1.79 at the end of Q4 2024 and 2.26 at the end of Q1 last year. And of course, this is well in line with our financial target of being below 2.5. As I just said, we will continue to focus on operating cash flow. That's very important to us. Our capital allocation priorities remain unchanged. We invest in organic growth. I alluded earlier to sales, product development, digital. We are actively working on acquisitions. We have a growing funnel. And of course, with the lower leverage, we do have the necessary dry product to deliver on those acquisitions financially. We are committed to delivering on our dividend policy, which is to pay 40% to 60% of our net earnings. Of course, this is ultimately a board proposal and AGM decision. And one final comment on return on capital employed, which has been going up and we are pleased to see that up to 25.4% excluding goodwill, 10.4% including goodwill. The increase is basically driven by the improved EBIT. Most of this improvement comes from a better recurring performance of the business of course in the quarter the higher ebit was supported by the moment of capital gain but again it's mostly driven by the better improve better recurring performance on that positive note i'm handing over to ule thank you sylvan so turning to the summary slide

uh so overall a strong start to the year and something we are happy with uh continue to deliver on on the new heights program and the order intake as we said about two billion sec mark in the quarter increase of 16 percent and the contribution by all divisions so very nice to see uh we increased the group earnings and margins and took another significant step up in in the margin from the 16.4 to the 17.3 which makes us very well en route to deliver on the north of 18 percent as we have said yeah now close to two years ago from within two to three years We are managing and we will manage also, we believe, the increased market uncertainty due to the US tariffs. We have a good setup that will manage this. We do have a solid financial position. We have a good business model. both from a strategic perspective but also from an operational perspective and this will allow us to continue to invest I'm sure in our profitable growth agenda like we have also done in Q1 so we remain committed to our financial and sustainability targets and would like to thank all our employees customers and partners for another good quarter and taking the group to new heights So with that, we turn page and move to Q&A.