Alimak Group AB (publ)

STO:ALIG

Earnings Call Transcript 2022-Q4

[Operator]

Welcome to the Alimak Group Q4 2022 Report Presentation. [Operator Instructions].Now I will hand the conference over to the speakers: CEO, Ole Kristian Jodahl; and CFO, Sylvain Grange. Please go ahead.

[Ole Jodahl, executive]

Thank you, and welcome to this quarter 4 call for Alimak. And with me now today, I have Sylvain, the new CFO.

[Sylvain Grange, executive]

Good morning.

[Ole Jodahl, executive]

So then, if we turn page, we are very pleased with a very strong quarter 4, where we continue to see a solid trend from the previous quarters. We delivered a strong order intake. We have strong revenues. We have a strong result and also a very good cash flow in the quarter. Also, another very important piece for us, of course, was the closing of the Tractel acquisition that we did as of November 21st, which means that they have been included for approximately 5 weeks then in the quarter 4 results. The integration is also well underway, and I will come a little bit back to this later. All this together, we see a good momentum in quarter 4, and that also takes us into a good start to 2023, even though it's a challenging macro and geopolitical environment still around us.So next page, please. Looking into the group quarterly summary. We see order intake was up 53% in the quarter, 28% coming from acquisitions and 12% organically. Strong order intake in Construction and Industrial, and also, of course, then a solid contribution from Tractel, which also continued to develop very well.Revenues were up 36%, 25% coming from acquisitions, and it was then flat organically. We saw solid organic growth in Construction and Industrial, but Wind was still pulling this down, and we also had some deferred revenue in Facade Access for deliveries in U.S.EBITA adjusted increased to SEK 217 million, actually up 52% from the SEK 143 million last year, delivering a margin of 15.5%, up from the 13.9%. And here, of course, also we have a positive impact from Tractel, but also driven by higher volumes and cost and pricing activities that we have been focusing on throughout the whole year. We also had some items affecting comparability in the quarter, with a net positive impact of SEK 19 million.Turn page, please. Then looking at the full year, we can conclude that it's been a very good and also important year for the group then with all this. And this was the first year in Phase 3 of the New Heights Programme where we should be then in a profitable growth modes. And that I must say we have done during this first year of that part. We record a record order intake revenues and also EBITA during the year. We see strong order intake and revenues in Construction, Facade Access and Industrial.And we also have improved the profitability in Wind, which I'm very pleased in, even though that market for the Wind division has been, as you know, challenging throughout the whole year. We have done 2 acquisitions: Tall Crane Equipment that we closed as of August 24th out of Vancouver in Canada, which is also developing nicely for us; and Tractel then as we closed November 21st.We have also delivered good progress in our sustainability performance targets and [ target ] industries, this -- sustainable companies. Actually, we have increased to place 19, up from somewhere in the 40s last year, so a good progress there. And we also continue to invest in our product development. You know this business. It's not something you launch products every day. But we have launched some nice products during 2022, and we are also heavily investing forward. And those that follow us on social media will see that we are now letting out some teasers about a relatively big news coming up in the Construction area. So please follow us there.Turning page and looking at the full year summary. Order intake was up 27% during the year. Acquisitions contributed with 8%, and organically, we grew 9%. On the revenue side, we were up 21%. Acquisitions contributed also 8% here and organic growth was 3%. But if we then exclude Wind, the growth -- organic growth would have been 10% for the group, as Wind had a very challenging market, as you know.EBITA adjusted increased to SEK 616 million, up from the SEK 483 million last year, delivering a margin of 13.6% for the full year, up from 13% last year. Cash flow was slightly down to SEK 501 million from the SEK 646 million the year before, while earnings per share were reported at SEK 7.04, up 24% from the SEK 5.68 the year before. And the Board of Directors proposed a dividend of SEK 3.65 versus the SEK 3.30 last year, which is an increase of slightly more than 10%.Turning page and starting a little bit into the divisions, Facade Access. We see that order intake was up 29% during the quarter, 35% from acquisitions and a negative growth of 17% -- organic growth of 17% during the quarter. Important to note is that this is a project business where you see natural swings during months and quarters. So full year, this business has delivered an organic growth of 11%, something I'm very pleased with.Revenues were up 35%, 30% coming from acquisitions and down 7% organically in the quarter. And the main reason here was some deferred deliveries in Americas, while service remained strong. And as you know, with the 11% organic order intake during the year, we have a strong momentum into next year or this year.EBITA increased to SEK 34 million, up from SEK 29 million, delivering a margin of 7.6%, down slightly then from the 8.7% last year and is positively impacted by the Tractel acquisition. The higher raw material costs and supply chain issues due to the geopolitical situation in Europe, and also the fact that most of these contracts are in fixed prices, have actually led to that. We have not been able to lift the margin on the legacy business here the way we wanted during the year. So something I'm not fully happy with, of course. But I think we have done a lot of good things during the year, and we have a good trajectory now into next year should have.If you look at next page. Then, Tractel. They have a permanent access business, which is both highly profitable and also been very resilient in that for many, many, many years, and this has now become part of the Facade Access division. So this is something that -- a piece of Tractel that has had the average profitability that you see in the rest of Tractel. And then, if you add this together now with our legacy Alimak business, you see to the right that this is a business that in 2022 if we would have consolidated, it would have been close to SEK 2.1 billion with an EBITA of SEK 206 million and an EBITA margin of 9.9%. So that would be the -- let's say, the division if you looked at 2022.And this gives us a global leading market position, a strong business position. And also a good fact here is that we have a very, very solid backlog. So we entered the year with a record high order backlog. The margins, as you know, on the legacy, Alimak has not been good. But while the margins have been very good and are for a long time on Facade Access from Tractel -- and this is now something that we are working intense to put together, and it's under the leadership of Philippe Gastineau, the former CEO of Tractel, who knows this business well. He has been leading this for 5 years. So here, we are now having a good plan, and we know what to do. Of course, it will take some time, but we expect to see, of course, improvements already 2023, and we'll have a plan to [ list ] this going forward.Moving page into Construction. We see order intake was up 93% in the quarter. Very strong. 20% coming from acquisitions, but 59% organically. We saw strong equipment sales in Europe and Americas and also increased activity on the rental and the aftermarket side, especially in Asia Pacific.Revenues were up 34%, 17% coming from acquisitions and 6% organically, where the rental activity contributed nicely, and also increased deliveries then to Americas and also emerging markets. EBITA increased to SEK 73 million, up from SEK 55 million, with a margin of 18.8%, slightly down from last year of 19.1%. With high volumes, our price management and cost control has also kept these margins at a solid level.If we turn page, we look more into the Construction business. And also here, it's a significant piece coming from Tractel that we integrate, and it's the Scanclimber business, a Finnish brand, which is now becoming part of the Construction division. And this altogether would mean looking at 2022, a business over of slightly more than SEK 1.6 billion, and EBITA margin of SEK 281 million and an EBITA margin of 17.3%.You see that this margin is slightly lower than what we had before, and this is driven by Scanclimber, which has -- main focus has been on the Nordic market, and that was somewhat depressed then in quarter 4, which has affected the sales and the margins of that business during that quarter. But we foresee this to come back to, let's say, normal levels relatively soon.We see, of course, a lot of commercial synergies here that we are working intense now to realize. Also very nice is that we secured a lot of important orders and good business during quarter 4, which means we are also here entering 2023 with a record high order backlog. We see a relatively stable business momentum in most geographies, but we also, of course, read about the uncertainty and see some uncertainty in several places. So we are on our toes on what will come forward, of course. The acquisition that we did of Tall Crane Equipment in Canada during the summer is, of course, also positive here and creates a lot of opportunities for us in that area to grow.So next page, please. And we're looking into Height Safety and Productivity Solutions. And, yes, it's a relatively empty page, but this is then the new vertical, the new division of the group and coming with Tractel, and you see that order intake and revenues were the same at SEK 111 million during these 5 weeks then, that it was included in quarter 4. And as this is a more type of book-and-bill business, you don't have that order book that we see in the other divisions. EBITA was SEK 30 million during these 5 weeks and delivering a margin of very strongly 27.2%.If we turn page then, this is, as I said, a new division in the group as of November 21st. And if you look to the right here, you see that this is close to then SEK 1.3 billion, would have been in 2022 with an EBITA of SEK 253 million and a very strong margin of 20% EBITA. Here, we have a lot of different products -- high-quality products, which are leading in the niches where they -- where we operate, and it's related to personal and collective Height Safety products and solutions, but also what we call Productivity Solutions, which include then load measurement and control products, and also then lifting and handling products and solutions. These products are mostly sold through distributors. So it brings a global network of distributors into the business, a lot of new customers and a lot of new applications.And as I said, this has been a very resilient and highly profitable business for a long period of time, bringing even more resilience and stability into the group. The focus for us now going forward will, of course, be product development to make sure that we feed this with more growth opportunities, but also cross-selling opportunities. We see a lot of opportunities with all other divisions in the group that we are now pursuing.Turning page into Industrial. Order intake was up 25%, 14% organically. We had strong equipment and service order intake basically in all regions, and especially strong as you can maybe understand also in the Energy and the Ports segments. Revenue was up 23% in the quarter, 10% organically and yes, driven by the strong order backlog, of course, but also our focus on the service, which is a very important part of this division.EBITA increased to SEK 69 million, up from the SEK 53 million last year, a margin of 20.6%, up from the 19.6% and is driven by higher volumes and our cost and pricing management throughout the year. And of course, here, we're also still continuing to invest and drive our activities to be closer to the customers and, yes, the segments.Turning page. We continue to see good order intake trend in the Industrial business, both for equipment and services. We see positive trends in China also now after they start to open up, and we have some business there. It's not a big -- a very important base for us. But, of course, now when it opens up, it will create more opportunities. This is also a division where we have had now for more than 2 years, very strong order intake and sales, and that means that we are also entering '23 with a record high order book.We continue to see solid demand in most segments. And then we have also, during the quarter, updated our structure a little bit to be able to attend and drive sales and segment focus even stronger. And else, for this division, other than this is also, of course, now working intense with the HSPS division to identify and realize commercial synergies.Turning page into Wind. Order intake was down 8% in the quarter, 18% organically, and we continue to see a challenging market, but also now with clear signs of improvement. Revenue was down 7%, 17% organically, and, yes, driven by the lower order intake that we have seen for a long while. EBITA increased to [ SEK 12 million ], very positive, up from the 6%, and a margin of 9.4% versus the 4.7%. And, yes, the focus during the year has really been on the results because the market we cannot really change, and we have focused on cost reductions and pricing management, and I'm very happy that we have been able to lift margins solidly during the year.If we turn page, then, the market is -- market challenges, as we said, remain during quarter 4, but we'll also now start to see clear signs of increased market activity. And in the U.S., we have this U.S. Inflation Reduction Act, which is driving investments and demand for Wind, energy. So we start to see this coming there. And also, in general, demand we expect to improve during 2023 and also further accelerate in '24 and onwards. The decreased costs that we have been driving this year and improved margins, together with product development, we feel position us very well now for the year -- for this year and onwards, to take benefit of the growing market that we expect. And else also here, we are working on defining and realizing the synergies with HSPS divisions.Turning page. Looking back a little bit. I came to the group, June 2020, and then we initiated a new strategic program that we call the New Heights Programme where we had 3 phases. It was first to set a good organizational base. So we had a model that we could build upon. So we made these 4 divisions fully accountable for the business and focusing on specific markets and clear ownership.Then, during Phase 2 '21, we focused -- the division is focused then on what to grow and what to drive and really securing that we have the right strategies in place, preparing us for the phase of '22 to '25 and onwards, where we should then be delivering profitable growth. And we have done 1, 2, and also now the first phase of 3 in 2022.And you see also below here. our financial targets. We are well delivering the revenue growth. We are delivering also the EBITA margin. And with the Tractel acquisition, we will be in the high areas of this target. So this is something we are now overseeing and we'll come back on latest at the Capital Market Day that we planned for June.Turning page and looking at the Tractel integration. They have now been part of the group for almost 3 months, and that has led to that we have a new organization. We have a new group with the fifth division, and a huge impact on Facade Access and on Construction immediately.We also have a new executive management team in place where I'm happy to have Sylvain Grange as the CFO, who has been with this business for 15 years, so knows the business extremely well and have managed Tractel together with Philippe Gastineau, who was the CEO, and both are with us going forward, and Philippe will then manage Facade Access and also the High Safety and Productivity Solutions division. And then also, the rest of the management team and people of Tractel are on board, and it's important for us, of course, that we bring them with us forward, and this is moving nicely. So the focus, of course, initially, is to make sure we retain the value.Tractel, important to remember, it's a highly profitable, resilient good business. So the -- first of all is to make sure that we take care of that and not lose any speed or any of the value that they have in themselves, while at the same time now also then diving into the synergies and creating more value from this. And here, we believe, we have a lot to gain going forward, and we work with our customers, employees and altogether then to drive and realize all these synergies forward. We see a high level of engagement, and this is also important to me. It's not driven top down. It's driven from both angles, both bottom-up and top-down, and high engagement level, as I said. And so far, very well and nothing really popping up that would be of a negative surprise.Following this, we also have said that we will do a share rights issue, and we said that should be conducted as soon as practically possible. Now we are releasing results today in a phase where this will be practically possible. So as soon as we have some more data and information around this, we will come back.Turning page, and that takes us through the synergies, and then I'll leave the floor for Sylvain.

[Sylvain Grange, executive]

Thank you very much, Ole. As far as synergies are concerned, we believe, the Tractel integration will lead to annual cost synergies of approximately SEK 70 million, of which approximately SEK 40 million are estimated to be realized by 2024. Those expected cost synergies will come from efficiency improvements in SG&A, supply chain and procurement. As mentioned by Ole, we expect as well significant commercial synergies, mostly cross-selling, generating additional cash flows estimated to be around SEK 40 million in 2024, increasing to SEK 80 million in 2026. In short, we confirm what was previously communicated.Next, please. We present here an overview of the new group by division. This is an aggregate of Tractel and legacy Alimak as if -- Tractel had been acquired on 1st of Jan, 2022. So in aggregate, this is a group which has generated SEK 6.5 billion of revenue last year with an adjusted EBITA margin of close to 16%, which is the high end of the financial targets.If we now look at the pie chart, you see that Facade Access has become the largest division of the group with 31% of total revenue. And together with Construction division, it's a bit more than 55% of the [indiscernible] 2 divisions in the group.Moving on to the share of EBITA, which we believe is very interesting. One can see there are roughly 3 groups of divisions in the group now. One group of, let's say, profitable, or at the level we want, which is Construction, HSPS and Industrial, with EBITA margins between 17% and 20%. Wind is behind at 12.8% EBITA margin, although improving, as mentioned earlier. And clearly, Facade Access today is a laggard with an EBITA margin of around 10%. But as we said earlier, we are confident, this is something we can improve over time. Tractel has set the example. The Tractel margin has been much higher in this business. So we believe this is the biggest potential for improvement in the profitability of the various divisions.Next, please. You see an overview of the financials as reported. So those numbers include 5 weeks of Tractel P&L in 2022. As previously indicated, the acquisitions make most of the difference between the reported growth and the organic growth.I'd like to draw your attention to a few key numbers, especially on a quarterly basis. The organic growth of order intake has reached 12%, which we believe is satisfactory for the quarter. The EBITA margin -- adjusted EBITA margin for the quarter of Q4 2022 amounted to 15.5%. And the last key number is the operating cash flow, which amounted to close to SEK 300 million in the quarter, which is a strong improvement versus the same quarter in 2021, and I'll come back to that later.Next, please. We present a summary of earnings. The margin improved significantly versus last year mainly due to increased revenues and solid contribution from the Tractel acquisition. We have kept the gross margin on a high level through active price management vis-a-vis our customer, which has offset a difficult market with high-cost inflation. Items affecting comparability amounted to SEK 19 million in the quarter, and this is made of 2 components. SEK 33 million profit due to a U.S. government grant in respect of COVID-19, and a loss of SEK 14 million, which relates to transaction costs. Regarding financial net, we have an interest of SEK 31 million a charge, and then the increase versus previous period mainly comes from the debt financing of the Tractel acquisition. The tax rate has been stable at around 23% of the EBITA.Next, please. We are now coming to the bottom line. The result for the period was SEK 130 million versus SEK 92 million in Q4 2021. Adjusted for items affecting comparability, this is SEK 11l million. EPS for the quarter was SEK 2.43, which is a growth of 42% versus Q4 2021, and adjusted for items affecting capability, it's SEK 2.08, which is still a growth of 22%. On a full year basis, the EPS was SEK 7.04 which is again a strong growth of 24%. As mentioned by Ole, the Board proposes a dividend of SEK 3.65, which is a bit more than 10% growth versus last year, and this dividend is obviously based upon the actual number of outstanding shares.Next, please. Regarding cash flows, as I mentioned earlier, that we had strong cash flows in Q4 2022, close to SEK 300 million. Those strong cash flows come from stable inventories and a decrease in receivables, thanks to strong cash collection efforts. Of course, there is an element of catch-up or cash back from the previous quarters which were a little bit soft. But moving forward, we will continue focusing on cash flows from operation. This is clearly a priority for us.Next, please. The net debt has increased significantly over the quarter, and most of it is due to the Tractel acquisition, which had an impact of SEK 5.5 billion. After the completion of the planned rights issue and the related share issue, we will repay the bridge loan, and we expect the net debt/EBITDA ratio to be at around 3 when including 12 months of Tractel EBITDA.Moving forward, that will be clearly a top priority to deleverage and get closer to our financial targets. Further capital allocation priorities will be to continue paying a dividend according to the policy. We will be focusing on profitable growth, developing sales. And M&A is still on the list. But clearly, in the short term, we'll be focusing on deleveraging, as I mentioned earlier, mostly by an increase in cash flows from operations.Next, please. We present here an overview of our balance sheet. And if one looks at the main changes versus the picture at the end of 2021, this is again the Tractel acquisition which makes the biggest deviations. You can see that goodwill and other intangible assets have increased significantly due to that acquisition. And the same comment applies to long-term borrowings, which have increased to finance the Tractel acquisition.And I will now pass the baton again to Ole for the conclusion.

[Ole Jodahl, executive]

Yes. Thank you. So then we are at a summary slide. So we are accelerating our profitable growth and, as I said, delivering now into a step 3 of the New Heights Programme. Very happy that we have Tractel on board and that we have gotten well underway with the integration. And as I said, focus is to, first of all, retain the value, which I feel that we have already started off well, and second is to drive the synergies, which is also very well underway. Then, of course, the divisions will -- since they changed somewhat and so forth, they will update also their strategies, and we plan then to have this Capital Market Day in June 14th, where we will give more details about the divisions. And also that's the latest point where we will update our financial targets or come back on those.We are now entering 2023 with a record high order backlog. We have good momentum in all divisions. And I also feel that we are more resilient and also diversified than before. And after 3 years of a tough macro environment, we are starting to get used to this. So we should also be well prepared to handle this uncertainty into 2023. So with that, thank you to all employees that have delivered a solid year and a solid quarter, and we turn into the Q&A.

[Operator]

[Operator Instructions] The next question comes from Hana Lindbo from DNB.

[Hanna Lindbo, analyst]

I was thinking of the High Safety and Productivity Solutions division, if we could get some more color on the drivers of that business, and if you would say, more resilient to economic downturns than compared to other ones?

[Ole Jodahl, executive]

Yes. I would say, more color, I think, will most likely come in this Capital Market Day, but it is a product which is not having this investment nature that you see in the other divisions. It's more book-to-bill, it's distribution type of products, focusing on personal protective equipment, collective protective equipment, and also fencing and stuff like this on construction or industrial sites. It's about lifting and handling. So not the big overhead cranes, but smaller type of things and personal safety. It's about -- for people coming into a confined space as an example, how you do that in a safe way. So that business have a different nature. And also, it's been with high margins and very resilient going back historically. So maybe also Sylvain can add some flavor to that, yes?

[Sylvain Grange, executive]

Yes. I would say that it's a very diversified business in terms of end applications, which certainly makes it relatively resilient. So there is no exposure to one specific industry.

[Ole Jodahl, executive]

No. The products end up to a lot of different type of industrial segments and construction segments. So -- and that's why we also see a lot of synergies, both with Wind, Industrial and Construction from that division.

[Hanna Lindbo, analyst]

Yes. And if you jump to the synergies, the commercial synergies, where -- in which areas you see the most potential for [ analysts ]?

[Ole Jodahl, executive]

We have synergies in all divisions, which is, I think, a little bit unique. But of course, Construction and Facade Access, these are the 2 divisions where we see the biggest impact as of now. But still, we are working on it, but we believe strongly that our global structure and with Construction, bringing in one more leading brand, which is not having the same global positioning -- But at the same time, they also have a lot of customers that we didn't have. So there, we believe there is a lot of synergies, and then Facade Access. We are both operating in that same market. So we become a bigger and more solid player. We take a bigger piece of that market overall, and we become a clear #1.The other thing there is about business management. It's that we have a business in legacy Alimak, which has not been performing for historic reasons. Even though we have made some nice steps, I would say, that we also should see benefits from now next year. But the bigger thing is that Tractel have led such a business for decades, highly profitable, highly resilient, and they have a model which we now see, and that's being led by Philippe to put that in place for that overall business. So something I feel very, very good about.

[Hanna Lindbo, analyst]

My last question was on Wind because, you said you started to see -- you expect increased activity in 2023. And have you already seen this started in Q1 that more orders are coming in? Or how does this look like?

[Ole Jodahl, executive]

Yes. As I said, we already see that this business is changing so -- without being too specific, but we see changes, and we expect in this year already.

[Operator]

The next question comes from Gustav Osterberg from Carnegie.

[Gustav Österberg, analyst]

And I just have a question on sort of where your assessments are on demand levels. I mean we had obviously an impact from COVID and then the acquisition of Tractel, and now we're seeing order intake still going up organically 13%. So I'm just curious, could you give us some sort of brief background of where we are from a trend and cycle standpoint in terms of demand?

[Ole Jodahl, executive]

Yes, you ask at a very different -- difficult point in time, with all these things around us and still a big geopolitical uncertainty and also the effects of the inflation, that we maybe haven't seen the full thing or outcome of yet them. But as I said, we have a good momentum in our Industrial division. And there, investments -- and yes, it's ongoing and we are exposed to some segments which are very strong there. So that looks good. We have a good momentum into this year. If you look at Construction, as you saw, we had a very strong order intake during quarter 4.There is, of course, more -- also we are more not concerned, but are curious about what's happening with that market, but we have a relatively resilient model being global -- truly global. So we are not exposed to Nordic. It's important, yes, but it's a very small piece. So it's not that important. As you see -- and we have the rental business. We have the aftermarket business there. We have made some nice acquisitions. We have Scanclimber that we can work upon. So we have a lot to work upon there, even though the market might be softer.And then, one thing is the property commercial side, but also -- in this division, we also put up temporary machines for industrial investments, wherever there are things like this. So that's also an important part for that division. When -- for Wind, as I just said, we start to see this is changing, and we know all about the energy investments about -- needed and about to come. It will not be a quick type of rush, but we see already changes in wind, and we expect changes there now next year that we have bottomed out for this year.And for Height Safety and the Productivity Solutions, they are very widely spread into many, many segments. So they also have proven over time to be a very resilient type of business. And then Facade Access, we have had a good 11% order intake growth this year. Now we also do a lot of activities there to get this together. So that's important. And the main priority is, of course, there to start to also lift the margins. So we will also there be selective on what type of projects we choose. And there, we get the business with smaller projects. Well, we have also had a business with bigger projects. So that's a balance. So that will more be what we -- how we also manage it. But market-wise, I think it still looks decent.So maybe Sylvain, do you want to add something?

[Sylvain Grange, executive]

Yes. I mean, we read the press like you do, and we know that this year may be more uncertain, notably in the Construction environment. Maybe one additional comment is that we are not that exposed to residential. So within the Construction space, those segments we address are likely to be less affected by the rate increase that we will see. But of course, still, it's an uncertain arrangement. So, also, we will be agile. Today, we don't feel a big impact on demand.

[Gustav Österberg, analyst]

And then just a quick follow-up on supply chain and easing of supply chains. I mean, outside of Facade Access, are you seeing any larger changes in terms of access to components or price increases that have slowed down or the likes?

[Ole Jodahl, executive]

Overall, we see that price increases are slowing down. So we see some easing on the raw material that we have seen for a while. But, as for supply, that's been a challenge, but we have managed it well. And there might be some sort of -- or there are some easing on it, but I think it's not something that has really been very, very painful for us either other than a lot of work up to now. But it's -- yes, I don't foresee that to be a major issue going forward, no.

[Sylvain Grange, executive]

So I had one -- just a small comment additional. The biggest impact for us has been the increase in inventories in 2022 because the disruption in the supply chain has forced us to be more conservative in terms of stock levels. Now we don't see a further degradation. So we don't think we'll have to increase stocks again in a significant way moving forward.

[Operator]

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

[Ole Jodahl, executive]

Yes. Thank you. We have some written questions here. So let's look. One question here is, how is the market in Height Safety and Productivity Solutions, a lot of smaller players? How is the potential for acquisitions in that segment.And, yes, this is also a very, very fragmented market. And in that division, along with the other divisions, we see a lot of acquisition potential. So it's a good question. This is an area where I believe opens up a lot of new growth opportunities, both organic and M&A wise in the years to come.

[Sylvain Grange, executive]

Absolutely.

[Ole Jodahl, executive]

Then the next question, is the current -- currently -- is the current backlog in Facade Access better priced for higher margins?And that, I would say the answer is yes, we have had a strong focus in legacy Alimak during the last year on being more selective and pushing prices. So that we expect to see coming forward. But that's one element of it. The other element is that you actually also keep control of the project and manage it the way you should. So which is, again, some competence that Tractel brings in an excellent way. So absolutely, we do expect to see improvements here.

[Ole Jodahl, executive]

Next question, yes, what can you share regarding the turnaround plan for Facade Access especially the legacy business? Has new management already outlined what actions will be taken?Yes, we are -- it's then Philippe, the CEO of Tractel, that has now taken on that responsibility, has now worked for 3 months on that business very intensely. And I think that -- or I know that he now have a very good knowledge about the overall thing, and what he would like to do forward and what we need to do. So we start to form out quite a detailed plan. It's quite obvious, but it will take time to also implement some easy wins there, but also some wins that will take time. But, as also Sylvain said, we expect, and this we should expect to be a division that should deliver in line with these other divisions in due time.

[Ole Jodahl, executive]

Then, can you provide an indicative pro forma order intake for 2022 for the new group?No, we do not have this. And the figures that you see now is actually what we can provide, and that's also triggered by the rights issue and the prospectus that we are working on there that puts legal constraints on what type of -- or that all figures need to be audited and checked going back. And it's a choice we have made that we did not want to spend a lot of money and time on auditing with our team 2 years back, everything in Tractel. So that's the reason. You know that we are now a little bit constrained in that respect. But we said something about the Tractel development in the -- when we closed the deal. It was a growth of 11% then 12 years back. And I would say that this business is, yes, continuing on a good trajectory and is developing solid.

[Ole Jodahl, executive]

Then, it's a new question here. What can you -- I think we have taken that. What's -- yes, can you provide -- yes. You -- yes, maybe Sylvain, you want to comment it also?

[Sylvain Grange, executive]

Yes. Another question is regarding the profile of the order backlog from Tractel. Basically, as you understood, there are mainly 2 legacies. Tractel has been split between mainly 2 divisions, HSPA and Facade Access. As far as HSPA is concerned, as mentioned earlier by Ole, this is a flow business with small products sold by our distribution, and there is almost no backlog. And for Facade Access, it's the same profile as legacy Alimak Facade Access with a significant backlog with maturity, which is over 1 year.

[Ole Jodahl, executive]

And Scanclimber.

[Sylvain Grange, executive]

And Scanclimber, it's a sort of mid -- small backlog of a few months in between HSPS and Façade Access.

[Ole Jodahl, executive]

Yes. Similar to our Construction and [ Industrial ].

[Ole Jodahl, executive]

Okay. I think that's the questions we have here for now. So then with that, I think we round off, and I would like to thank everyone that listened in and asking questions. Again, thank you to the team and everyone in Alimak Group then delivering a solid quarter 4 and also a solid full year, giving us a good start into 2023. So thank you all, and see you soon again. Thank you.

[Operator]

The presentation has now ended. Thank you for participating.