Alleima

Investor Presentation • Apr 23, 2024

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Consistent strategy execution and improved resilience over time

• Order intake for the rolling 12-month period decreased by 10% to SEK 20,362 million (22,550), with organic growth of -8%. The backlog remained solid with a good product mix.
• Revenues decreased by 12% to SEK 4,740 million (5,376), with organic growth of -2%. Effects from changed alloy surcharges impacted revenues by -9%.
• Adjusted operating profit (EBIT) totaled SEK 453 million (567), corresponding to a margin of 9.6% (10.5), impacted by under-absorption and temporary challenges in deliveries.
• Operating profit (EBIT) amounted to SEK 126 million (1,045), corresponding to a margin of 2.7% (19.4), and included metal price effects of SEK -328 million (479).
• Adjusted earnings per share, diluted, was SEK 1.24 (1.75).
• Earnings per share, diluted, was SEK 0.21 (3.25).
• Free operating cash flow amounted to SEK 159 million (404).

	Financial overview

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Alleima 61

SEK M	Q1 2024	Q1 2023	Change, %	Full year 2023
Order intake, rolling 12 months 1	20,362	22,550	-10	21,684
Organic growth, rolling 12 months 1 , %	-8	6	–	-6
Revenues	4,740	5,376	-12	20,669
Organic growth, %	-2	12	–	8
Adjusted operating profit (EBIT)	453	567	-20	2,141
Margin, %	9.6	10.5	–	10.4
Operating profit (EBIT)	126	1,045	-88	2,046
Profit for the period	51	815	-94	1,574
Adjusted earnings per share, diluted, SEK	1.24	1.75	-29	6.56
Earnings per share, diluted, SEK	0.21	3.25	-94	6.27
Free operating cash flow	159	404	-61	1,688
Net debt/Equity ratio	-0.03	-0.02	–	-0.02

Notes to the reader: 1) Order intake in the quarter refers to the rolling 12-month period. Adjusted operating profit (EBIT) excludes items affecting comparability (IAC) and metal price effects, see Note 5 and the description of Alternative Performance Measures on page 24 for further details. Definitions and glossary can be found on www.alleima.com/investors. Tables and calculations in the report do not always agree exactly with the totals due to rounding. Comments refer to performance in the quarter and comparisons refer to the corresponding period last year, unless otherwise stated.

"Consistent execution in a challenging quarter, where we are showing resilience in the EBIT margin."

CEO's comment

Market conditions

Market conditions were mixed at the beginning of the year. Some positive signals were noted in a few of the segments where demand had previously been subdued. The stabilization we began to see at the end of 2023 continued in parts of the short-cycle business, especially in the Strip division's Consumer segment. At the same time, the Chemical and Petrochemical, and Industrial segments in North America remained challenging for Tube, while demand in the Nuclear segment, for example, was high. We received several significant orders in the Oil and Gas segment, and both the market and backlog are strong even though order intake decreased from high levels. In Kanthal, the Medical segment continued its positive trajectory while demand in Industrial Heating remained slightly subdued. Organic order intake growth for the rolling 12-month period was -8%, from high absolute levels.

Temporary delivery challenges during the quarter

Revenues in the quarter decreased organically by 2%, impacted primarily by our more low-refined business as well as challenges in deliveries related to the ongoing implementation of a new ERP system in our Tube and Strip divisions. Kanthal continued to strengthen its EBIT margin in pace with the ongoing improvement of the product mix. All together, the adjusted EBIT margin for the quarter totaled 9.6% (10.5). The decrease is attributable to several factors such as lower invoicing, impacted by the aforementioned temporary challenges in deliveries, and under-absorption in production as a result of lower volumes.

Solid margin resilience

With the challenges we faced in the quarter, and given lower production volumes, our adjusted EBIT margin has demonstrated good resilience. The rolling 12-month margin was 10.1%, which is a historically high number. Our diversified exposure to customer segments in various stages of the business cycle, and a clear strategy to grow in more profitable and less cyclical niches are important contributors to this. We have also been swift to adapt to changing market conditions, and adjusting capacity and cost where needed. Another important aspect of

the improved resilience is that we have stood firm on our price leadership strategy, declining to lower prices in order to win volumes. This has impacted cost coverage in parts of production over the short term, but when the market turns around and volumes begin to increase again, I see good opportunities for continued profitable growth over time.

Strategic initiatives

Our growth investments are proceeding as planned. For example, we are currently scaling up the capacity in our newly inaugurated production line for heat exchanger tubing in Mehsana, India, which will give us good opportunities to meet the growing demand in the Chemical and Petrochemical segment for Tube in Asia.

Sustainability drives innovation and business

In February, we were proud to launch the next generation of umbilical tubes for the Oil and Gas industry, with the new SAF™ 3007 alloy. This new alloy is even stronger and more durable, which enabling thinner and lighter tubes. With its lower weight and with less materials consumed, it yields obvious advantages for both our customers and the environment. Our materials technology makes a difference by yielding a smaller climate footprint, and we expect that SAF™ 3007 will be a vital addition to our existing offering. During the quarter, we received yet another order in carbon capture and storage (CCS) and, moreover, we are continuing to grow our business for tubes for the production of polysilicon, which is used in the production of solar panels. Additionally, the Kanthal division received an interesting order for heating modules, which will be used in a manufacturing process for green steel.

Continued value creation

Even though the beginning of 2024 was somewhat challenging, I take a positive view of the coming year. We are well positioned to continue strengthening our product mix, we are executing on our strategic priorities and our balance sheet is stronger than ever.

Göran Björkman, President and CEO

Market development and outlook

Market development

• Demand in the Oil and Gas segment continued growing from high levels.
• Demand for low-refined products in the Industrial segment continued to stabilize, but remained subdued in North America.
• Demand in the Chemical and Petrochemical segment remained healthy in Asia. In North America and Europe, demand was lower.
• Demand in the Industrial Heating segment declined slightly from high levels.
• Demand in the Consumer segment grew from low levels, driven primarily by the white goods industry.
• Demand in the Mining and Construction segment continued to increase.
• Demand in the Medical segment continued to grow from high levels.
• Demand in the Nuclear segment continued to strengthen.
• Demand in the Transportation segment remained at a good level, with high activity in the aerospace and space industries.
• A stable underlying demand was noted in the Hydrogen and Renewable Energy segment.

Perception underlying market demand

	OIL AND GAS	INDUSTRIAL	CHEMICAL AND PETROCHEMICAL	INDUSTRIAL HEATING	CONSUMER
Year on year underlying demand trend	↗	→	↘	↘	↗
% of Group revenues 2023	21%	21%	18%	11%	8%
	MINING AND CONSTRUCTION	MEDICAL	NUCLEAR	TRANSPORTATION	HYDROGEN AND RENEWABLE ENERGY
Year on year underlying demand trend	↗	↗	↗	→	→
% of Group revenues 2023	5%	5%	5%	4%	2%

Outlook for the second quarter 2024

Despite mixed demand in our markets during the quarter, underlying megatrends are expected to continue to mitigate the impact of uncertainties in the macroeconomic environment in the coming year. The backlog is solid in our key segments and we have good visibility in our near-term deliveries. We are continuously taking measures to mitigate potential impact from cost inflation and under-absorption of costs from the lower production volumes in certain segments. The product mix is expected to be similar to that of the first quarter. Cash flow is normally lower in the first half year compared with the second half.

Note: Comments refer to year on year market development in the quarter, unless otherwise stated. Comments regarding market development and outlook are based on the company's current perceptions about the underlying demand, and are not based on order intake in isolated quarters.

Order intake and revenues

Order intake for the rolling 12-month period decreased by 10% to SEK 20,362 million (22,550), with organic growth of -8%. The development was primarily attributable to lower order intake in the Industrial and Chemical and Petrochemical segments in North America in Tube, compared with the corresponding period last year. Even though demand continued to grow in the Oil and Gas segment, the order intake decreased from high levels.

Revenues decreased by 12% to SEK 4,740 million (5,376), with organic growth of -2%. Effects from changed alloy surcharges impacted revenues by -9%. The Tube and Strip divisions showed negative organic growth, mainly attributable to lower volumes in the short-cycle, low-refined business in the Industrial and Consumer segments, due to weaker market conditions for some time as well as temporary challenges in deliveries related to the implementation of a new ERP system. Organic revenue growth in Kanthal was neutral.

Book-to-bill was 102% for the rolling 12-month period. The backlog remained solid with a good product mix.

Growth bridge

SEK M	Order intake, R12	Revenues, Quarter
Q1 2023	22,550	5,376
Organic, %	-8	-2
Structure, %	0	0
Currency, %	2	-1
Alloys, %	-4	-9
Total growth, %	-10	-12
Q1 2024	20,362	4,740

Change compared to the corresponding quarter last year.

Order intake

Earnings

Gross profit decreased by 56% to SEK 726 million (1,667), with a gross margin of 15.3% (31.0). The development was mainly attributable to metal price effects.

Sales, administrative and R&D costs increased by 2% to SEK -631 million (-616), mainly due to cost inflation.

Adjusted EBIT decreased by 20% to SEK 453 million (567) with a margin of 9.6% (10.5), primarily impacted by under-absorption as a result of lower production volumes and temporary challenges in deliveries related to implementation of a new ERP system in the Tube and Strip divisions. Currency had a positive impact of SEK 24 million compared with the corresponding period last year. Depreciation and amortization amounted to SEK -230 million (-218).

Reported EBIT amounted to SEK 126 million (1,045), with a margin of 2.7% (19.4). Metal price effects had an impact of SEK -328 million (479).

Net financial items were SEK -42 million (2).

The reported tax rate was 38.3% (22.2) in the quarter. The normalized tax rate, excluding the impact of metal price effects in EBIT, was 24.6% (22.9).

Adjusted profit for the period amounted to SEK 310 million (439) and adjusted earnings per share, diluted, amounted to SEK 1.24 (1.75). Profit for the period amounted to SEK 51 million (815), corresponding to earnings per share, diluted, of SEK 0.21 (3.25). See page 25 for further details.

SEK M	Adjusted EBIT
Q1 2023	567
Organic	-137
Currency	24
Structure	0
Q1 2024	453

Change compared to the corresponding quarter last year.

Adjusted EBIT margin

9.6%

Cash flow and financial position

Capital employed excluding cash decreased to SEK 15,532 million (15,991). Return on capital employed excluding cash decreased to 7.1% (16.3), due to lower operating profit and changed metal prices.

Net working capital decreased year on year to SEK 6,923 million (7,246), and increased slightly compared with the preceding quarter. Net working capital in relation to revenues was 36.3% (32.0).

Capex amounted to SEK -141 million (-116). The increase was driven by investments in production optimizations and growth investments.

Net debt amounted to SEK -507 million (-256), i.e. a net cash position. The net debt to equity ratio was -0.03x (-0.02). The financial net debt was SEK -1,709 million (-1,116). Available credit facilities were unutilized at the end of the first quarter. The net pension liability increased year on year to SEK 722 million (461), primarily due to a lower long-term discount rate. Net debt corresponded to -0.17x (-0.09) of rolling 12-month adjusted EBITDA.

Free operating cash flow declined to SEK 159 million (404), due to lower earnings and higher capex.

Free operating cash flow

SEK M	Q1 2024	Q1 2023	Full year 2023
EBITDA	353	1,263	2,957
Non-cash items	-57	-11	54
Changes in working capital	36	-702	-380
Capex	-141	-116	-815
Amortization, lease liabilities	-31	-29	-128
Free operating cash flow1	159	404	1,688

1) Free operating cash flow before acquisitions and disposals of companies, net financial items and paid taxes.

Net debt to Equity

-0.03X

Quarter, Ratio

Net working capital

Quarter SEK % 0 5 10 15 20 25 30 35 40 45 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 NWC

NWC % of revenues

Alleima Q1 January 1 – March, 2024 Revenues per customer segment, 2023

• Chemical & Petrochemical
• Industrial
• Mining & Construction
• Nuclear
• Transportation
• Hydrogen and Renewable Energy
• Medical Industrial heating

Tube

Tube develops and manufactures seamless tubes and other long products in advanced stainless steels and special alloys used primarily in the customer segments of Oil and Gas, Chemical and Petrochemical, Industrial, Mining and Construction, Nuclear and Transportation. The offering also includes products and solutions for the growing Hydrogen and Renewable Energy segment.

Order intake and revenues

• Order intake for the rolling 12-month period decreased by 9% to SEK 14,954 million (16,377), with organic growth of -7%, primarily attributable to weaker order intake in the Industrial, and Chemical and Petrochemical segments in North America. Even though demand continued to grow in the Oil and Gas segment, the order intake decreased from high levels.
• Revenues in the quarter decreased by 11% to SEK 3,347 million (3,763), with organic growth of -1%. The negative organic revenue growth was mainly due to lower delivery volumes in the short-cycle, low-refined business in the Industrial segment and temporary challenges in deliveries related to the implementation of a new ERP system.
• Book-to-bill was 106% for the rolling 12-month period.

Earnings

• Adjusted EBIT totaled SEK 308 million (404), corresponding to a margin of 9.2% (10.7). Lower revenues, negative effects from temporary challenges in deliveries and under-absorption effects as a result of lower production volumes impacted the margin.
• EBIT amounted to SEK 34 million (838) and included metal price effects of SEK -274 million (434).
• Changes in exchange rates had a positive impact of SEK 36 million compared with the year-earlier period.
• Depreciation and amortization amounted to SEK -181 million (-174).

SEK M	Order intake R12	Revenues Q	Adj. EBIT Q
Q1 2023	16,377	3,763	404
Organic	-7%	-1%	-128
Structure	0%	0%	-3
Currency	2%	-1%	36
Alloys	-4%	-10%	N/A
Total growth	-9%	-11%	-95
Q1 2024	14,954	3,347	308

Change compared to same period last year. For order intake and revenues, the table is multiplicative, i.e. the different components must be multiplied to determine the total effect.

SEK M	Q1 2024	Q1 2023	Change %	Full year 2023
Order intake, R12 1	14,954	16,377	-9	16,052
Organic growth, R12 1, %	-7	8	–	-3
Revenues	3,347	3,763	-11	14,475
Organic growth, %	-1	14	–	9
Adjusted EBIT	308	404	-24	1,491
Margin, %	9.2	10.7	–	10.3
EBIT	34	838	-96	1,460
Margin, %	1.0	22.3	–	10.1
Total workforce 2	4,550	4,359	4	4,515

1) Order intake in the quarter refers to the rolling 12-month period. 2) Total workforce includes employees and third-party workers and is based on full-time equivalents.

Revenues Adjusted EBIT

6

Industrial Heating Consumer Medical

Industrial Transportation

Kanthal

Kanthal is a provider of products and services in the area of industrial heating technology and resistance materials, and also offers ultra-fine wire in stainless steel for use in medical appliances. The customers are primarily in the segments Industrial Heating, Consumer, Medical and Industrial.

Order intake and revenues

• Order intake for the rolling 12-month period decreased by 12% to SEK 4,064 million (4,606), with organic growth of -9%, primarily attributable to lower order intake in the Industrial and Industrial Heating segments.
• Revenues in the quarter decreased by 11% to SEK 1,069 million (1,195), with organic growth of 0%. Revenues decreased in the Industrial segment and increased in the Industrial Heating and Medical segments.
• Book-to-bill was 91% for the rolling 12-month period.

Earnings

• Adjusted EBIT totaled SEK 197 million (196), corresponding to a margin of 18.5% (16.4). The improved margin was attributable to a stronger product mix, price increases and an improved cost position.
• EBIT amounted to SEK 153 million (233) and included metal price effects of SEK -44 million (38).
• Changes in exchange rates had an impact of SEK -10 million compared with the year-earlier period.
• Depreciation and amortization amounted to SEK -31 million (-28).

SEK M	Order intake R12	Revenues Q	Adj. EBIT Q
Q1 2023	4,606	1,195	196
Organic	-9%	0%	8
Structure	2%	–	3
Currency	2%	-1%	-10
Alloys	-6%	-9%	N/A
Total growth	-12%	-11%	2
Q1 2024	4,064	1,069	197

Change compared to same period last year. For order intake and revenues, the table is multiplicative, i.e. the different components must be multiplied to determine the total effect.

SEK M	Q1 2024	Q1 2023	Change %	Full year 2023
Order intake, R12 1	4,064	4,606	-12	4,321
Organic growth, R12 1, %	-9	7	–	-7
Revenues	1,069	1,195	-11	4,609
Organic growth, %	0	11	–	11
Adjusted EBIT	197	196	1	844
Margin, %	18.5	16.4	–	18.3
EBIT	153	233	-34	778
Margin, %	14.3	19.5	–	16.9
Total workforce 2	1,414	1,375	3	1,436

1) Order intake in the quarter refers to the rolling 12-month period. 2)Total workforce includes employees and third-party workers and is based on full-time equivalents.

Revenues Adjusted EBIT

8

Revenues per customer segment, 2023

Strip

Strip develops and manufactures a wide range of precision strip steel products and also offers pre-coated strip steel for one of the most critical components in the hydrogen fuel cell stack – the bipolar plates. The customers are in the segments consumer, industrial, transportation, hydrogen and renewable energy as well as medical.

Order intake and revenues

• Order intake for the rolling 12-month period decreased by 14% to SEK 1,344 million (1,567), with organic growth of -13%, primarily attributable to lower order intake in the Industrial, and Hydrogen and Renewable Energy segments. Demand in the Consumer segment continued to stabilize, mainly driven by the white goods industry.
• Revenues in the quarter decreased by 22% to SEK 324 million (418), with organic growth of -19%, driven by a general decline in the market that has been noted in several quarters.
• Book-to-bill was 90% for the rolling 12-month period.

Earnings

• Adjusted EBIT totaled SEK 10 million (41), with a margin of 3.1% (9.7). Lower revenues, negative effects from temporary challenges in deliveries and under-absorption effects as a result of lower production volumes impacted the margin.
• EBIT amounted to SEK 1 million (48) and included metal price effects of SEK -9 million (7).
• Changes in exchange rates had an impact of SEK -2 million compared with the year-earlier period.
• Depreciation and amortization amounted to SEK -11 million (-11).

SEK M	Order intake R12	Revenues Q	Adj. EBIT Q
Q1 2023	1,567	418	41
Organic	-13%	-19%	-28
Structure	–	–	–
Currency	-1%	-3%	-2
Alloys	-1%	-2%	N/A
Total growth	-14%	-22%	-30
Q1 2024	1,344	324	10

Change compared to same period last year. For order intake and revenues, the table is multiplicative, i.e. the different components must be multiplied to determine the total effect.

SEK M	Q1 2024	Q1 2023	Change %	Full year 2023
Order intake, R12 1	1,344	1,567	-14	1,310
Organic growth, R12 1, %	-13	-7	–	-24
Revenues	324	418	-22	1,585
Organic growth, %	-19	1	–	-5
Adjusted EBIT	10	41	-75	109
Margin, %	3.1	9.7	–	6.9
EBIT	1	48	-98	110
Margin, %	0.3	11.4	–	6.9
Total workforce 2	488	543	-10	491

1) Order intake in the quarter refers to the rolling 12-month period. 2) Total workforce includes employees and third-party workers and is based on full-time equivalents.

Revenues Adjusted EBIT

Sustainability

Alleima's strategy includes to be leading in the market from a sustainability perspective, contribute to increased circularity and support general health and well-being, both through our product offering and our operations. Developing a sustainable product offering, combined with several initiatives to reduce the overall environmental impact of the production process, are some of the most important success factors.

Making an impact through our offering

Demand for electrification and energy transition is continuing in a broad range of industries. During the quarter, the Kanthal division received an order for Fibrothal® heating modules for the steel industry. The heating modules will be used in the roller hearth furnace at a new factory in Europe for the manufacture of green steel. Electric heating contributes to lower carbon emissions and improved energy efficiency in the furnace, resulting in an end-product with lower environmental impact compared with the use of conventional technology. With decades of experience in working with electric heating, Kanthal has developed a range of solutions suitable for the steel industry. Some of the advantages in using electric heating are reduced carbon emissions, improved energy efficiency and temperature control.

Making an impact through our operations

• The total recordable injury frequency rate (TRIFR) for the rolling 12-month period was 6.4 (8.3). TRIFR in the quarter was 7.5 (9.0).
• The share of recycled steel, i.e., scrap metal input in steel manufacturing, for the rolling 12-month period was 80.0% (82.5), a decrease of 3% attributable to the product mix. The share for the quarter totaled 80.8% (80.9).
• CO₂ emissions for the rolling 12-month period amounted to 94 kton (101), corresponding to a reduction of 6%. CO₂ emissions during the quarter amounted to 26 kton (28), corresponding to a reduction of 7%.
• The share of female managers increased to 23.5% (22.4) in the quarter.

Definitions and glossary can be found at www.alleima.com/investors.

Recycle rate, R12 %

Sustainability overview

	Q1 2024	Q1 2023	Change, %	R12, Q1 2024	R12, Q1 2023	Change, %
TRIFR 1	7.5	9.0	-16	6.4	8.3	-23
CO2 emissions, thousand tons	26	28	-7	94	101	-6
Recycled steel, %	80.8	80.9	0	80.0	82.5	-3
Share of female mana gers, %	23.5	22.4	5	-	-	-

1) Total recordable injury frequency rate. Normalization factor: 1,000,000 exposure hours.

Health and safety Recycled steel CO2 emissions Share of female managers

9

Significant events

During the quarter

– On January 23, the Nomination Committee proposed the re-election of Board members Göran Björkman, Claes Boustedt, Ulf Larsson, Andreas Nordbrandt, Susanne Pahlén Åklundh and Karl Åberg, and the election of Victoria Van Camp as new Board member. Andreas Nordbrandt was proposed to be re-elected as Chairman of the Board

After the quarter

– There were no significant events after the quarter.

Guidance and financial targets

Guidance

Guidance relating to certain non-operational key figures considered useful when modeling financial outcome is provided below:

Capex (Cash) (full year)	Estimated at approximately SEK 950 million for 2024.
Currency effects (quarterly)	Based on currency rates at the end of March 2024, it is estimated that transaction and translation currency effects will have an impact of about SEK 25 million on operating profit (EBIT) for the second quarter of 2024, compared to the corresponding period last year.
Metal price effects (quarterly)	In view of currency rates, inventory levels and metal prices at the end of March 2024, it is estimated that there will be an impact of approximately SEK -100 million on operating profit (EBIT) for the second quarter of 2024.
Tax rate, normalized (full year)	Estimated at 24-26% for 2024.

Financial targets

Alleima has four long-term financial targets:

Organic growth	Deliver profitable organic revenue growth in line with or above growth in targeted end-markets over a business cycle.
Earnings	Adjusted EBIT margin (excluding items affecting comparability and metal price effects) to average above 9% over a business cycle.
Capital structure	A net debt to equity ratio below 0.3x.
Dividend policy	Dividend on average 50% of net profit (adjusted for metal price effects) over a business cycle. Dividend to reflect financial position, cash flow and outlook.

Stockholm, April 23, 2024 Alleima AB (publ) 559224-1433

Göran Björkman

President and CEO

About us

Alleima is a world-leading developer, manufacturer, and supplier of high value-added products in advanced stainless steels and special alloys as well as products for industrial heating, operating with a global footprint. Based on close and long-term customer partnerships, Alleima advances processes and applications in the most demanding industries through materials that are lightweight, durable,

corrosion-resistant and able to withstand extremely high temperatures and pressures.

Through its offering and in-depth expertise in materials technology, metallurgy and industrial processes, Alleima enables its customers to become more efficient, profitable, safe and sustainable.

Tube

Tube develops and manufactures seamless tubes and other long products in advanced stainless steels and special alloys.

Kanthal

Kanthal is a provider of products and services in the area of industrial heating technology and resistance materials, and also offers ultra-fine wire in stainless steel for use in medical appliances.

Strip

Strip develops and manufactures a wide range of precision strip steel products and also offers pre-coated strip steel.

Purpose

We advance industries through materials technology Our unique and leading expertise enables more efficient, more profitable and more sustainable processes, products and applications for our customers.

Business model

The business model is based on close customer cooperation and extensive industry knowledge in combination with materials and process competence and a global footprint. Customer relationships are often characterized by a high degree of technical collaboration, including identifying the customers' needs and finding innovative ways to solve complex challenges. Approximately 80 percent of products are sold directly through Alleima's own global sales network and the remainder is often sold through distributors. Alleima has a fully integrated value chain, including in-house R&D, two steel mills with melt shops, five extrusion presses and several hot working, cold working, and finishing facilities.

Strategy

The strategy is based on four pillars:

Values

• Drive profitable growth by capitalizing on global megatrends such as energy transition, energy efficiency, electrification and medical growth
• Continuous focus of R&D activities and digital innovations toward new business opportunities, defending and strengthening the current business and widening ofthe material portfolio
• Operational and commercial excellence through continuous improvement, price management, mix optimization, cost flexibility,footprint optimization and resilience
• Industry-leading sustainability that benefits the climate, increases circularity and supports general health and wellbeing, both through product offering as well as operations.

Customer segments sales exposure

We care We deliver We evolve

Revenues per customer segment is based on full-year 2023. Historically, these percentages have not changed substantially between the quarters and the full year figures of 2023 will therefore give a good approximation.

Revenues per customer segment, full year 2023

• Oil & Gas
• Industrial Chemical & Petrochemical
• Industrial heating
• Consumer
  • Mining & Construction Medical
  • Nuclear
• Transportation Hydrogen and Renewable Energy

Financial reports summary

The Group | Condensed consolidated income statement

SEK M	Note	Q1 2024	Q1 2023	Full year 2023
Revenues	3	4,740	5,376	20,669
Cost of goods sold		-4,014	-3,709	-16,090
Gross profit		726	1,667	4,579
Selling expenses		-303	-322	-1,288
Administrative expenses		-261	-233	-973
Research and development costs		-67	-61	-255
Other operating income		82	61	229
Other operating expenses		-51	-67	-245
Operating profit/loss	4,5	126	1,045	2,046
Financial income		47	69	172
Financial expenses		-89	-67	-144
Net financial items		-42	2	28
Profit/loss after net financial items		83	1,048	2,074
Income tax	6	-32	-233	-500
Profit/loss for the period		51	815	1,574
Profit/loss for the period attributable to
Owners of the parent company		51	815	1,574
Non-controlling interests		-	-	-
Earnings per share, SEK
Basic	9	0.21	3.25	6.28
Diluted	9	0.21	3.25	6.27

The Group | Condensed consolidated comprehensive income

SEK M	Note	Q1 2024	Q1 2023	Full year 2023
Profit/loss for the period		51	815	1,574
Other comprehensive income
Items that will not be reclassified to profit (loss)
Actuarial gains (losses) on defined benefit pension plans		127	51	-327
Tax relating to items that will not be reclassified		-26	-10	69
Total items that will not be reclassified to profit (loss)		101	40	-258
Items that may be reclassified to profit (loss)
Foreign currency translation differences		261	54	-227
Hedge reserve adjustment		-93	-874	-965
Tax relating to items that may be reclassified		19	180	199
Total items that may be reclassified to profit (loss)		187	-640	-994
Total other comprehensive income		288	-600	-1,252
Total comprehensive income		340	215	322
Total comprehensive income attributable to
Owners of the parent company		340	215	322
Non-controlling interests		-	-	-

The Group | Condensed consolidated balance sheet

SEK M	Note	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Goodwill		1,673	1,588	1,621
Other intangible assets		307	257	292
Property, plant and equipment		7,314	7,258	7,281
Right-of-use assets		475	398	502
Financial assets	7	74	376	103
Deferred tax assets		181	182	164
Non-current assets		10,023	10,059	9,963
Inventories		7,492	8,323	7,360
Current receivables	7	3,963	4,285	4,077
Cash and cash equivalents		1,713	1,124	1,595
Current assets		13,168	13,732	13,033
Total assets		23,191	23,792	22,996
Equity attributable to owners of the parent company	9	15,996	16,156	15,732
Non-controlling interest		0	0	0
Total equity		15,996	16,156	15,732
Non-current interest-bearing liabilities		1,124	854	1,266
Non-current non-interest-bearing liabilities	7	949	1,137	971
Non-current liabilities		2,073	1,991	2,237
Current interest-bearing liabilities		126	106	130
Current non-interest-bearing liabilities	7	4,996	5,540	4,897
Current liabilities		5,123	5,645	5,027
Total equity and liabilities		23,191	23,792	22,996

The Group | Condensed consolidated cash flow statement

SEK M	Note	Q1 2024	Q1 2023	Full year 2023
Operating activities
Operating profit/loss		126	1,045	2,046
Adjustments for non-cash items:
Depreciation, amortization and impairments		227	217	911
Other non-cash items		-57	-11	54
Received and paid interest		45	17	22
Income tax paid		-116	-189	-419
Cash flow from operating activities before changes in working capital		225	1,079	2,615
Changes in working capital		36	-702	-380
Cash flow from operating activities		260	377	2,234
Investing activities
Investments in intangible and tangible assets		-143	-117	-827
Proceeds from sale of intangible and tangible assets		2	1	12
Acquisition and sale of shares and participations	10	0	0	-174
Other investments and financial assets, net		0	0	1
Cash flow from investing activities		-141	-116	-988
Financing activities
Proceeds from loans		0	0	18
Repayments of loans		-1	-1	-22
Amortization of lease liabilities		-31	-29	-128
Equity swap	9	-	-	-20
Dividends paid	9	-	-	-351
Cash flow from financing activities		-32	-30	-503
Net change in cash and cash equivalents		87	231	743
Cash and cash equivalents at beginning of period		1,595	892	892
Exchange rate differences in cash and cash equivalents		31	1	-39
Cash and cash equivalents at end of the period		1,713	1,124	1,595

The Group | Condensed consolidated statements of changes in equity

SEK M	Note	Equity attributable to owners of the parent company	Non controlling interest	Total equity
Equity at January 1, 2023		15,901	0	15,901
Changes
Net profit		815	-	815
Other comprehensive income for the period, net of tax		-600	-	-600
Total comprehensive income for the period		215	-	215
Cash flow hedge, transferred to cost of hedged item		49	-	49
Tax on cash flow hedge, transferred to cost		-10	-	-10
Net cash flow hedge, transferred to cost		39	-	39
Equity at March 31, 2023		16,156	0	16,156
Changes
Net profit		759	-	759
Other comprehensive income for the period, net of tax		-652	-	-652
Total comprehensive income for the period		107	-	107
Cash flow hedge, transferred to cost of hedged item		-193	-	-193
Tax on cash flow hedge, transferred to cost		32	-	32
Net cash flow hedge, transferred to cost		-161	-	-161
Shared-based payments	9	2	-	2
Equity swap		-20	-	-20
Dividends		-351	-	-351
Total transactions with owners		-369	-	-369
Equity at December 31, 2023		15,732	0	15,732
Changes
Net profit		51	-	51
Other comprehensive income for the period, net of tax		288	-	288
Total comprehensive income for the period		340	-	340
Cash flow hedge, transferred to cost of hedged item		-97	-	-97
Tax on cash flow hedge, transferred to cost		20	-	20
Net cash flow hedge, transferred to cost		-77	-	-77
Shared-based payments	9	1	-	1
Total transactions with owners		1	-	1
Equity at March 31, 2024		15,996	0	15,996

The Parent Company | Condensed income statement

SEK M Note	Q1 2024	Q1 2023	Full year 2023
Revenues	6	6	24
Gross profit	6	6	24
Administrative expenses	-18	-20	-84
Other operating income	0	0	1
Other operating expenses	-1	0	0
Operating loss	-12	-14	-59
Dividend from group companies	-	-	485
Interest revenue and similar income	9	7	32
Interest expense and similar costs	0	0	-1
Profit/loss after financial items	-3	-7	458
Appropriations	-	-	31
Income tax	1	1	0
Profit/loss for the period	-3	-6	488

The Parent Company | Condensed balance sheet

SEK M	Note	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Financial assets		11,907	11,907	11,907
Deferred tax assets		3	2	2
Non-current assets		11,910	11,910	11,909
Current receivables		1,576	1,434	1,580
Current assets		1,576	1,434	1,580
Total assets		13,486	13,344	13,490
Restricted equity		251	251	251
Unrestricted equity	9	13,187	13,064	13,188
Total equity		13,438	13,314	13,439
Non-current interest-bearing liabilities		2	0	2
Non-current non-interest-bearing liabilities		14	7	13
Non-current liabilities		16	7	14
Current interest-bearing liabilities		0	0	0
Current non-interest-bearing liabilities		32	21	36
Current liabilities		32	22	36
Total equity and liabilities		13,486	13,344	13,490

Notes

Note 1 | Basis of preparation

The financial statements of the Group were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report for the Group was prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and the Swedish Annual Accounts Act, and for the parent company in accordance with the Swedish Annual Accounts Act and RFR 2 Reporting for legal entities and other statements issued by the Swedish Financial Reporting Board. The accounting principles and computation methods applied in the preparation of this interim report are the same as those applied in the Annual Report 2023 as amended below. All amounts are in million SEK (SEK M) unless otherwise stated. Roundings may occur.

The interim information on pages 1–28 is an integrated part of these financial statements.

Changes in IFRS standards

IASB has published amendments of standards that are effective as of January 1, 2024 or later. The standards have not had any material impact on the financial reports.

References

For more information concerning: – Group summary, refer to page 1

– Significant events, refer to page 10

Note 2 | Risks and uncertainties

As an international group with a wide geographical spread, Alleima is exposed to several strategic, business and financial risks. Strategic risk at Alleima is defined as emerging risks affecting the business long-term, such as industry shifts, technological shifts, and macroeconomic developments. The business risks can be divided into operational, sustainability, compliance, legal and commercial risks. The financial risks include currency risks, interest rate risk, price risk, tax risks and more. These risk areas can all impact the business negatively both long and short-term but often also create business opportunities if managed well. Risk management at Alleima begins with an assessment in operational management teams where the material risks to their operations are first identified, followed by an evaluation of the probability of the risks occurring and their potential impact on the Group. Once the key risks have been identified and evaluated, risk mitigating activities to eliminate or reduce the risks are agreed on. For a more detailed description of Alleima's analysis of risks and risk universe, see the Annual Report 2023.

Situation by the Red Sea

The uncertainties that have arisen around the situation in the Red Sea and transports through the Suez Canal may have certain effects on freight costs, lead-times and capital tie-up as Alleima has some logistical exposure through the geographical area. As there is a general uncertainty regarding how the situation will evolve, it is difficult to foresee the final impact on Alleima's financial results and financial position.

Note 3 | Order intake by division and region

Order intake by division and region

SEK M	Note	R12 Q1 2024	R12 Q1 2023	Organic %
Tube
Europe		8,857	9,008	0
North America		3,048	3,182	-3
Asia		2,135	1,945	16
Other		914	2,242	-60
Total		14,954	16,377	-7
Kanthal
Europe		1,263	1,377	-10
North America		1,222	1,773	-27
Asia		1,362	1,270	13
Other		217	185	15
Total		4,064	4,606	-9
Strip
Europe		564	671	-16
North America		116	198	-42
Asia		641	681	-2
Other		23	17	31
Total		1,344	1,567	-13
GROUP
Europe		10,684	11,056	-2
North America		4,386	5,154	-13
Asia		4,139	3,896	11
Other		1,153	2,444	-54
Total		20,362	22,550	-8

Revenues by division and region

SEK M	Note	Q1 2024	Q1 2023	Organic %	Full year 2023
Tube
Europe		2,023	2,112	8	7,975
North America		583	704	-7	2,780
Asia		516	458	26	2,127
Other		225	488	-53	1,593
Total		3,347	3,763	-1	14,475
Kanthal
Europe		333	404	-7	1,459
North America		382	417	2	1,584
Asia		302	330	3	1,373
Other		52	43	24	193
Total		1,069	1,195	0	4,609
Strip
Europe		142	213	-32	712
North America		29	62	-52	217
Asia		142	139	10	636
Other		12	4	190	20
Total		324	418	-19	1,585
GROUP
Europe		2,498	2,729	2	10,146
North America		993	1,184	-6	4,581
Asia		960	928	16	4,137
Other		289	535	-45	1,806
Total		4,740	5,376	-2	20,669

Note 4 | Segment information

Alleima has three reportable operating segments, Tube, Kanthal and Strip. Items not included in the operating segments, mainly related to Group staff functions typically to run the Group or items Alleima considers to be centrally decided, are presented as Common functions.

Note	Q1 2024	Q1 2023	Full year 2023	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Order intake, rolling 12 months, SEK M 1
Tube	14,954	16,377	16,052	14,954	16,052	16,401	15,637	16,377
Kanthal	4,064	4,606	4,321	4,064	4,321	4,619	4,561	4,606
Strip	1,344	1,567	1,310	1,344	1,310	1,342	1,438	1,567
Total2	20,362	22,550	21,684	20,362	21,684	22,362	21,636	22,550
Revenues, SEK M
Tube	3,347	3,763	14,475	3,347	3,557	3,130	4,025	3,763
Kanthal	1,069	1,195	4,609	1,069	1,082	1,153	1,179	1,195
Strip	324	418	1,585	324	399	334	435	418
Total2	4,740	5,376	20,669	4,740	5,038	4,617	5,638	5,376
Adjusted EBIT, SEK M
Tube	308	404	1,491	308	430	199	457	404
Kanthal	197	196	844	197	207	214	227	196
Strip	10	41	109	10	29	-4	44	41
Common functions	-63	-73	-303	-63	-84	-59	-86	-73
Total2	453	567	2,141	453	582	350	642	567
Adjusted EBIT margin, %
Tube	9.2	10.7	10.3	9.2	12.1	6.4	11.4	10.7
Kanthal	18.5	16.4	18.3	18.5	19.1	18.6	19.3	16.4
Strip	3.1	9.7	6.9	3.1	7.3	-1.3	10.0	9.7
Common functions	N/M	N/M	N/M	N/M	N/M	N/M	N/M	N/M
Total¹	9.6	10.5	10.4	9.6	11.6	7.6	11.4	10.5
EBIT, SEK M
Tube	34	838	1,460	34	339	94	189	838
Kanthal	153	233	778	153	161	182	203	233
Strip	1	48	110	1	29	-10	44	48
Common functions	-63	-73	-303	-63	-84	-59	-86	-73
Total2	126	1,045	2,046	126	444	206	350	1,045

1) Order intake for the quarter refers to the rolling 12 months period.

2) Internal transactions had negligible effect on division profits.

Note 5 | Adjustment items on EBIT

SEK M	Q1 2024	Q1 2023	Full year 2023	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
EBIT
Items affecting comparability
Tube	0	0	0	0	0	0	0	0
Kanthal	0	0	0	0	0	0	0	0
Strip	0	0	0	0	0	0	0	0
Common functions	0	0	0	0	0	0	0	0
Total	0	0	0	0	0	0	0	0
Metal price effect
Tube	-274	434	-30	-274	-91	-105	-268	434
Kanthal	-44	38	-65	-44	-46	-33	-24	38
Strip	-9	7	0	-9	-1	-6	0	7
Total	-328	479	-95	-328	-138	-144	-293	479
Total adjustment items EBIT
Tube	-274	434	-30	-274	-91	-105	-268	434
Kanthal	-44	38	-65	-44	-46	-33	-24	38
Strip	-9	7	0	-9	-1	-6	0	7
Common functions	0	0	0	0	0	0	0	0
Total	-328	479	-95	-328	-138	-144	-293	479

Note 6 | Taxes

SEK M	Q1 2024			Q1 2023		Full year 2023
Reported tax	-32	38.3%	-233	22.2%	-500	24.1%
Tax on adjustment items (note 5)	-69	-21.1%	103	-21.4%	-22	-23.3%
Tax excluding adjustment items	-101	24.6%	-130	22.9%	-522	24.1%
Adjustment for one time items taxes	0	0.0%	0	0.0%	-3	0.1%
Normalized tax rate	-101	24.6%	-130	22.9%	-525	24.2%

The reported tax rate of 38.3% for Q1 2024 is higher than normal, which is a consequence of the consolidation of countries with losses and profits that affect the consolidated effective tax rate.

Note 7 | Financial assets and liabilities

Financial instruments - fair values

In order to mitigate financial risks, the Group has entered into financial instruments such as currency-, commodity- and electricity- and gas derivatives. All derivatives belong to Level 2 in the fair value hierarchy, i.e. observable inputs have been used in deriving the fair values. Fair values, which equals carrying amounts, of outstanding derivatives amounted at each reporting period to the amounts below.

SEK M	Dec 31, 2023	Mar 31, 2023	Dec 31, 2023
Financial assets derivatives	64	655	327
Financial liabilities derivatives	520	544	493

The carrying amounts for other financial assets and liabilities are considered to represent a good approximation of the fair values due to the short durations.

Note 8 | Related party transactions

The Group companies have related party relationships with their subsidiaries. All related party transactions are based on market terms and negotiated on an arm's length basis. For outstanding share right programs refer to Note 9. Other remunerations to senior executives for Alleima are presented in the Annual Report 2023 in Note 3.

Note 9| Equity, number of shares and incentive programs

Number of shares	Mar 31, 2024	Dec 31, 2023
Total number of shares	250,877,184	250,877,184
Number of shares in equity swap (LTI)	-410,620	-410,620
Number of outstanding shares	250,466,564	250,466,564
Number of outstanding shares, weighted average	250,466,564	250,630,812
Number of shares after dilution	250,861,761	250,870,108
Number of shares after dilution, weighted average	250,865,935	250,875,769

Outstanding share right programs

Information regarding Alleima's long-term share-based incentive program (LTI 2023), such as the objective, conditions and requirements, is presented in Note 3 in the Annual Report for 2023. During the first three months of 2024, the total pre-tax cost for the program amounted to SEK 1 (0) million. As of March 31, 2024, LTI 2023 comprises 395,197 share rights (403,544).

Dividend

To the Annual General Meeting on May 2, 2024, Alleima's Board of Directors proposes for the financial year 2023 an ordinary dividend of SEK 2.00 per share (SEK 502 million), proposed to be paid on May 10, 2024.

Not 10 | Business combinations

The acquisitions of business combinations executed during the 12 months period are set out on the table below. For the acuisitions in 2023 please refer to details in the Alleima Annual report 2023, Note 28. Annual revenue and number of employees reflect the situation at the date of the respective transaction.

Division/Cash Generating Unit	Company	Country	Acquisition date	Annual revenue	No. of employees
Tube	Söderfors Steel Operations AB	Sweden	May 2, 2023	SEK 145 M in 2022	50

Key ratios

	Q1 2024	Q1 2023	Full year 2023	Full year 2022	Full year 2021	Full year 2020
Adjusted EBITDA, SEK M	683	785	3,056	2,540	1,811	1,933
Adjusted EBITDA margin, %	14.4	14.6	14.8	13.8	13.1	13.9
Adjusted EBIT, SEK M	453	567	2,141	1,681	1,055	1,205
Adjusted EBIT margin, %	9.6	10.5	10.4	9.1	7.6	8.7
Operating profit (EBIT), SEK M	126	1,045	2,046	2,122	1,379	492
Operating profit (EBIT) margin, %	2.7	19.4	9.9	11.5	10.0	3.5
Normalized tax rate, % (Note 6)	24.6	22.9	24.2	24.3	24.9	31.6
Net working capital to revenues, % 1	36.3	32.0	34.3	32.8	31.2	30.4
Return on capital employed, % 2	6.8	15.2	12.2	13.2	10.4	3.8
Return on capital employed excluding cash, % 2	7.1	16.3	12.9	14.2	11.0	3.8
Net debt/Adjusted EBITDA ratio	-0.17	-0.09	-0.08	0.01	0.73	0.90
Net debt/Equity ratio	-0.03	-0.02	-0.02	0.00	0.11	0.17
Free operating cash flow, SEK M	159	404	1,688	505	1,046	1,483
Adjusted earnings per share, diluted, SEK	1.24	1.75	6.56	4.46	3.82	3.69
Earnings per share adjusted for metalprice effects, diluted, SEK	1.24	1.75	6.56	3.66	3.27	2.09
Average number of shares, diluted, at the end of the period (millions) (Note 9)	250.866	250.877	250.876	250.877	250.877	250.877
Number of shares at the end of the period (millions) (Note 9)	250.467	250.877	250.467	250.877	250.877	250.877
Number of employees 3	6,153	5,942	6,110	5,886	5,465	5,084
Number of consultants 3	558	588	596	612	413	287

1) Quarter is quarterly annualized and the annual number is based on a four quarter average.

2) Based on rolling 12 months operating profit, in percentage of a four-quarter average capital employed (including respectively excluding cash). 3) Full-time equivalent.

Alternative Performance Measures

This interim report contains certain alternative performance measures that are not defined by IFRS. These measures are included as they are considered to be important performance indicators of the operating performance and liquidity of Alleima. They should not be considered a substitute for Alleima's financial statements prepared in accordance with IFRS. Alleima's definitions of these measures are described below, and as other companies may calculate non IFRS measures differently, these measures are therefore not always comparable to similar measures used by other companies.

Organic order intake and revenue growth

Change in order intake and revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions and alloy surcharges. Organic growth is used to analyze the underlying sales performance in the Group, as most of its revenues are in currencies other than in the reporting currency (i.e. SEK, Swedish Krona). Alloy surcharges are used as an instrument to pass on changes in alloy costs along the value chain and the effects from alloy surcharges may fluctuate over time.

Adjusted operating profit (EBIT)

Alleima considers Adjusted operating profit (EBIT) and the related margin to be relevant measures to present profitability of the underlying business excluding metal price effects and items affecting comparability (IAC).

Metal price effect is the difference between sales price and purchase price on metal content used in the production of products. Metal price effect on operating profit in a particular period arises from changes in alloy prices arising from the timing difference between the purchase, as included in cost of goods sold, and the sale of an alloy, as included in revenues, when alloy surcharges are applied. IAC includes capital gains and losses from divestments and larger restructuring initiatives, impairments, capital gains and losses from divestments of financial assets as well as other material items having a significant impact on the comparability.

Adjusted operating profit (EBIT) and margin: Operating profit (EBIT) excluding items affecting comparability and metal price effects. Margin is expressed as a percentage of revenues.

Adjusted operating profit (EBIT)

SEK M	Q1 2024	Q1 2023	Full year 2023	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Operating profit/loss	126	1,045	2,046	126	444	206	350	1,045
Reversal (Note 5):
Items affecting comparability	0	0	0	0	0	0	0	0
Metal price effect	328	-479	95	328	138	144	293	-479
Impairments	0	0	0	0	0	0	0	0
Adjusted operating profit (EBIT)	453	567	2,141	453	582	350	642	567
Revenues	4,740	5,376	20,669	4,740	5,038	4,617	5,638	5,376
Adjusted operating profit (EBIT) margin, %	9.6	10.5	10.4	9.6	11.6	7.6	11.4	10.5

Adjusted earnings per share, diluted

Alleima considers Adjusted earnings per share (EPS), diluted to be relevant to understand the underlying performance, which excludes items affecting comparability and metal price effects between periods.

Adjusted EPS, diluted: Profit/loss, adjusted for items affecting comparability and metal price effects, attributable to equity holders of the Parent Company divided by the average number of shares, diluted, outstanding during the period.

Adjusted profit for the period and adjusted earnings per share, diluted

SEK M	Q1 2024	Q1 2023	Full year 2023	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Profit/loss for the period	51	815	1,574	51	403	137	218	815
Reversal:
Adjustment items EBITDA/EBIT (Note 5)	328	-479	95	328	138	144	293	-479
Tax on adjustment items (Note 6)	-69	103	-22	-69	-30	-34	-61	103
Adjusted profit for the period	310	439	1,647	310	511	247	449	439
Attributable to
Owners of the parent com pany	310	439	1,647	310	511	247	449	439
Non-controlling interests	-	-	-	-	-	-	-	-
Average number of shares, dil uted, at the end of the period (millions)	250.866	250.877	250.876	250.866	250.874	250.877	250.877	250.877
Adjusted earnings per share, diluted, SEK	1.24	1.75	6.56	1.24	2.04	0.99	1.79	1.75

Net working capital (NWC) in relation to revenues and return on capital employed (ROCE)

Alleima considers NWC in relation to revenues for the quarter relevant as a measure of both the Group's efficiency and its short-term financial health.

Net working capital (NWC): Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, including those classified as liabilities and assets held for sale, but excluding tax assets and liabilities and provisions. Net working capital (NWC) in relation to revenues: Quarter is quarterly annualized and year-to-date numbers are based on a four-quarter average.

Alleima considers ROCE to be useful for the readers of its financial reports as a complement in assessing the possibility of implementing strategic investments and considering the Group's ability to meet its financial commitments. In addition, it is useful to also follow ROCE excluding cash, as it is focused on the operating capital employed.

Capital employed: Total assets less non-interest-bearing liabilities (including deferred tax liabilities).

ROCE: Rolling 12 months' operating profit/loss plus financial income (excl. derivatives), as a percentage of a four-quarter average capital employed.

ROCE excluding cash: Rolling 12 months' operating profit/loss, as a percentage of a four-quarter average capital employed excluding cash and cash equivalents.

SEK M	Q1 2024	Q1 2023	Dec 31, 2023
Inventories	7,492	8,323	7,360
Trade receivables	3,172	3,182	2,952
Account payables	-2,233	-2,815	-2,003
Other receivables	642	605	720
Other liabilities	-2,149	-2,049	-2,205
Net working capital	6,923	7,246	6,825
Average net working capital	6,874	6,883	7,087
Revenues annualized	18,961	21,503	20,669
Net working capital to revenues, %	36.3	32.0	34.3
Tangible assets	7,314	7,258	7,281
Intangible assets	1,979	1,845	1,913
Cash and cash equivalents	1,713	1,124	1,595
Other assets	12,185	13,564	12,206
Other liabilities	-5,946	-6,677	-5,868
Capital employed	17,246	17,115	17,128
Average capital employed	17,066	16,742	16,999
Operating profit rolling 12 months	1,126	2,532	2,046
Financial income, excl. derivatives, rolling 12 months	41	21	34
Total return rolling 12 months	1,167	2,553	2,080
Return on capital employed (ROCE), %	6.8	15.2	12.2
Average capital employed excl. cash	15,822	15,558	15,920
Return on capital employed excl. cash, %	7.1	16.3	12.9

Free operating cash flow (FOCF)

Alleima considers free operating cash flow (FOCF) to be useful for providing an indication of the funds the operations generate to be able to implement strategic investments, make amortizations and pay dividends to the shareholders.

Free operating cash flow (FOCF): Operating profit (EBIT) excluding depreciations and amortizations (EBITDA), adjusted for non-cash items plus the change in net working capital minus investments and disposals of tangible and intangible assets and plus the amortization of lease liabilities.

Net debt to Equity and Net debt to Adjusted EBITDA

Alleima considers both Net debt to Equity and Net debt to Adjusted EBITDA to be useful for the readers of its financial reports as a complement for assessing the possibility of dividends, implementing strategic investments and considering

the Group's ability to meet its financial commitments. Net debt to Equity ratio is included in Alleima's financial targets.

Net debt: Interest-bearing current and non-current liabilities, including net pension liabilities and leases, less cash and cash equivalents.

Adjusted EBITDA: Operating profit (EBIT) before depreciation and amortizations, adjusted for metal price effects and items affecting comparability.

Financial net debt

Alleima considers financial net debt to be a useful indicator of the business's ability to pay off all debt, excluding pension liabilities and lease liabilities, at a certain point in time.

Financial net debt: Net debt, excluding net pension and lease liabilities.

Net debt to Equity and Net debt to Adjusted EBITDA

SEK M	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Interest-bearing non-current liabilities	1,124	854	1,266
Interest-bearing current liabilities	126	106	130
Prepayment of pensions	-43	-91	-43
Cash & cash equivalents	-1,713	-1,124	-1,595
Net debt	-507	-256	-242
Net pension liability	-722	-461	-843
Leasing liabilities	-480	-399	-505
Financial net debt	-1,709	-1,116	-1,590
Adjusted EBITDA accumulated current year	683	785	3,056
Adjusted EBITDA previous year	2,271	1,939	-
Adjusted EBITDA rolling 12 months	2,954	2,724	3,056
Total equity	15,996	16,156	15,732
Net debt/Equity ratio	-0.03	-0.02	-0.02
Net debt/Adjusted EBITDA ratio (multiple)	-0.17	-0.09	-0.08

Shareholder information

Disclaimer statement

Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors, for example the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.

This report is published in Swedish and English. The Swedish version shall prevail in any instance where the two versions differ.

Annual General Meeting

The Annual General Meeting will be held in Sandviken, Sweden on May 2, 2024. Related documents are available on Alleima's website and resolutions from the Annual General Meeting will be published in the prescribed manner after the meeting. As previously communicated, the Board of Directors proposes a dividend of SEK 2.00 per share.

For further information, please contact: Emelie Alm, Head of Investor Relations +46 79 060 87 17 or emelie.alm@alleima.com

Conference call and webcast:

A conference call will be held on April 23, 2024 at 13:00 PM CEST.

Presentation for download and webcast link: https://www.alleima.com/en/investors/

Dial-in detalis for the conference call: Participants in Sweden: +46 (0)8 5051 0031 Participants in the UK: +44 (0) 207 107 06 13 Participants in the US: +1 (1) 631 570 56 13

Financial calendar

Annual General Meeting, Sandviken May 2, 2024 Proposed record date to receive dividends May 6, 2024 Proposed date to receive dividends May 10, 2024 Q2 interim report January - June July 19, 2024 Q3 interim report January - September October 22, 2024

Alleima AB (publ), corporate registration no. 559224-1433 Postal address: SE-811 81 Sandviken, Sweden Visiting address: Storgatan 2, Sandviken, Sweden Telephone: +46 26 426 00 00

This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CET on April 23, 2024.