Alimak Group (ALIG) Capital Markets Update 2024 summary

Strategic transformation and growth initiatives

• Launched the New Heights program in 2020, focusing on building a sustainable, resilient, and profitable industrial group through decentralization and a customer-driven approach.

• Five divisions now operate with full P&L and cash responsibility, supported by a lean central structure and digitalization initiatives.

• Significant progress in fixing underperforming units, integrating acquisitions, and expanding product and market focus beyond traditional niches.

• Safety and sustainability are core pillars, with a focus on zero harm, operational excellence, and innovation.

• New financial targets set: adjusted EBITDA/EBITA above 18% within 2–3 years, with updated division strategies planned.

Financial performance and capital allocation

• Group turnover increased from SEK 4 billion to SEK 7 billion in four years, with margins rising from 12.9% to 17%.

• Service revenue now represents 37% of total, providing resilience and recurring cash flow; service is a key competitive advantage.

• Leverage ratio reduced to 2.1, with a target below 2.5x, and stable ROCE around 20–24%.

• Financial targets include 6–10% revenue growth, >18% EBITA margin, and 40–60% dividend payout.

• M&A remains a priority, focusing on quality, profitable, and well-managed targets, with disciplined capital allocation.

Digitalization and innovation

• Strategic investment in digital competencies complements R&D, with over 4,000 connected machines and digital solutions enhancing safety, efficiency, and customer value.

• Digital tools (BIM, My Alimak, AliCalc) and proprietary control systems enable advanced features, remote monitoring, and condition-based maintenance.

• Machine learning and data-driven service models are being rolled out to shift from planned to condition-based maintenance.

• Marketplaces for used equipment and RRR (Refurbishment, Retrofit, Replacement) strategies support circular economy goals.

• Digitalization is a group-wide platform, enabling all divisions to improve customer value, safety, productivity, and carbon footprint.