Ferronordic as an investment Learn more about Ferronordic, our business areas and the way we create shareholder value. Strong brand portfolio Our partnership with Volvo – a world-leading manufacturer in the areas of construction equipment and trucks – gives Ferronordic an opportunity to offer premium products and services to a growing base of demanding customers. We continue to see potential to expand our portfolio with complementary brands to leverage our organisation and infrastructure, for the benefit of our partners, our customers, our investors and other stakeholders. Markets with high potential We see strong fundamentals in the markets where we operate. Russia/CIS is a relatively young market characterised by underinvested infrastructure and by significant pent-up demand for construction equipment. Our customers represent a cross-section of the industries in Russia/CIS. Strong commodity companies and state-backed infrastructure investment programs support a positive demand outlook. Germany has a highly industrialised and developed economy with the largest truck market in Europe. It also drives much of industrial innovation and benefits from growing economic activity, which provides opportunities for the world-class Volvo products that Ferronordic supplies and services. Strong development despite low market volumes in Russia/CIS Market (Units) 1 Operating Profit (SEK) % 2 Revenue (SEK) % 0 50 100 150 200 250 300 350 400 450 2011 2013 2015 2017 2019 1 Russian import statistics (until December 2020) compiled by Volvo CE. 2 Refer to adjusted EBIT, i.e. operating profit excluding (i) amortisation of transaction-related intangible assets and (ii) write-downs of non-current assets in Q4 2016. Further growth opportunities with attractive returns Ferronordic sees the potential to double its 2020 revenue in its existing markets by 2025, with significant contributions from contracting services and Germany, while maintaining an operating margin above 7%. We believe that our markets offer upside for our core business and that we have more opportunities to leverage our existing organisation to add complementary products and services. Ferronordic’s existing experience and business model also provide opportunities for further geographic expansion. Revenue and operating margin Revenue (SEK bn) Operating margin (%) 1377 1738 2010 2486 0 1,000 2,000 3,000 4,000 5,000 0% 2% 4% 6% 8% 10% 2017 2018 2019 2020 Dividend per share and earnings per share Dividend per share (SEK) Earnings per share (SEK) 1 1 3 4 6 5 0 2 4 6 8 10 12 14 16 18 2017 2018 2019 2020 Resilient business model and robust aftermarket business Our business model, which is built around a great team and robust aftermarket business, has been tested by currency volatility, turbulent market conditions and both supply and demand disruption. Our focus on aftermarket absorption makes us resilient, while our strong service platform and digital solutions allow us to work more closely with our clients. Our used business, contracting services and machine and component rebuild centre complement and diversify our business model and drive further customer integration. Investing in innovation We have invested in a number of innovative and industry-first solutions such as our digital sales support system which allows us to take a proactive and predictive approach to sales and service. We have developed a proprietary “rules engine” combining our expertise with the signals from machine telematics systems (e.g. Volvo CE’s CareTrack) to produce automatic sales leads and concrete equipment or maintenance recommendations to optimise the efficiency and performance of our customers’ fleets and our profitability. We have also invested in new business models like contracting services where we own and operate machines on behalf of our customers which helps them reduce tied up capital, machine downtime while improving productivity. Experienced management and strong corporate governance Ferronordic is a Swedish company with an international management team with long experience from the industry and the markets where we operate. We also have a strong board of directors. Working together towards a sustainable future We are committed to being a good, fair, and safe employer, applying the strictest standards of corporate governance and transparency and minimising our ecological footprint and resource waste. Strong balance sheet and cash flow support returns to shareholders Our ambition is to maintain a strong balance sheet to retain financial flexibility and strength. While short-term cash flows are sensitive to movements in working capital, Ferronordic has delivered strong cash flow performance over time. We are confident that Ferronordic has many opportunities to reinvest its cash flow with attractive returns to its shareholders. Ferronordic’s dividend policy is to distribute at least 50% of net profit if net debt/EBITDA is below 1 x and at least 25% if the leverage ratio is above 1 x. Financial objectives from 2020-2025 Our financial objectives are aligned with and support our strategic objectives. Double the revenue in its current markets Operating margin above 7% Net debt/EBITDA below 3 times (over a business cycle) Ferronordic AB Headquarter Nybrogatan 6 SE114 34 Stockholm, Sweden +46 85 090 72 80 info@ferronordic.com Explore Our offer Our industries Our markets Our partners Career Investor relations Stock information Latest quarter Reports & documents Financial calendar Investment case Latest news Press releases Financial Calendar Local market sites Russia (Pусский) Germany (Deutsch) Kazakhstan (Pусский) Sitemap Privacy Policy Cookies Who we are What we do Investor relations Corporate governance Our partners Contact Career EN 325.5 SEK