Be Group Ab · OMXSTO:BEGR
Be Group Ab — Q2 2014 Earnings Presentation
23 slides from Be Group Ab's earnings presentation, July 2014
Slide 1: BE Group Interim Report January–June 2014
BE Q2 BE GROUP INTERIM REPORT JANUARY – JUNE 2014 Kimmo Väkiparta, President and CEO Andreas Karlsson, CFO Slide 1
Slide 2: Q2 – Reduced cost base compensates lower sales
Q2 – Reduced cost base compensates lower sales Financial highlights Shipped tonnage decreased by 10% Net sales decreased by 6% or SEK 62 M Gross profit of SEK 132 M (144) Operating result of SEK 4 M (5) Slide 2
Slide 3: Market situation and operational highlights
Market situation Operational highlights The Swedish market demand Tight cost control continued to give continued to slowly improve during positive impact the quarter Focus on improved service level Demand on the Finnish market was coupled with operational efficiency more or less on the same
Slide 4: Financials in detail
FINANCIALS IN DETAIL Slide 4
Slide 5: Q2 tonnage – improvement on main markets vs. Q1
Q2 tonnage – improvement on main markets vs. Q1 Tonnage (‘000 tons) Tonnage 10% down vs Q2 2013 Sweden -7% Finland 0% Other Units -39% Tonnage flat vs Q1 2014 Sweden +6% Finland +1% Other Units -20% Slide 5
Slide 6: Average sales price increase driven by mix and currency effects
Average sales price increase driven by mix and currency effects more than underlying price increases Average sales price (SEK/kg) Q2 average sales price increased by 4% vs Q2 2013 and increased by 3% vs Q1 2014 Increase driven by: Stainless steel prices turning upwards during quarter Sales m
Slide 7: Cost under control, margins in focus
Cost under control, margins in focus Overhead costs (SEK M) and margin (%) Underlying gross margin of 13.0% (13.5) are below expectation Fierce competition mainly on flat products Margin improvement in focus Higher inventory adjustments compared to average quarter Sales and Administration
Slide 8: Lower sales compensated by reduced cost
Lower sales compensated by reduced cost SEK M Q1 Q2 H1 Net sales 2013 1,032 1,089 2,121 Net sales 2014 1,003 1,027 2,030 Change -3% -6% -4% Operating result 2013 -17 5 -12 Inventory losses 2 3 5 Total non-recurring items 29 0 29 Underlying operating result 2013 14 8 22 Tonnage-, price- and mix effec
Slide 9: Working capital in good control
Working capital in good control Cash-flow (SEK M) Cash-flow after investments of SEK -20 M (-4) due to working capital build-up Investments of SEK 2 M (13) Total cash-flow of SEK -45 M (-4) Working capital tied-up 10% (9) Net debt of SEK 776 M (844) – gearing 101% (132) Slide 9
Slide 10: Business areas status Q2 2014
BUSINESS AREAS STATUS Q2 2014 Slide 10
Slide 11: BA Sweden – EBIT in line with last year despite lower sales
BA Sweden – EBIT in line with last year despite lower sales Sales, EBIT and uEBIT (SEK M) Gradually improved sales pace during the quarter Net sales decreased by 9% and tonnage decreased by 7% vs Q2 2013 Fewer sales days during 2014 affects comparison vs last year Fierce competition in flats
Slide 12: BA Finland – Stable sales despite weak demand
BA Finland – Stable sales compared to last year despite of weak demand Sales, EBIT and uEBIT (SEK M) Overall market demand lower than last year but in line with Q1 2014 Net sales increased by 1% and tonnage was flat compared to Q2 2013 Active sales work and good service level compensate for lo
Slide 13: Other Units – Improvement work continues
Other Units – Improvement work continues Sales, EBIT and uEBIT (SEK M) Net sales decreased by 18% vs Q2 2013 Net sales decrease from Slovakia EBIT of SEK -9 M (-8), losses mainly from BE Group Produktion Continued work with improving profitability in loss-making companies Czech Republic (c
Slide 14: Outlook
OUTLOOK Slide 14
Slide 15: Current business situation and outlook
Current business situation and outlook Customers’ signals indicate slight improvement in demand Moderate increase in demand expected on main markets during second half of 2014 Steel prices seem to have stabilized Implemented efficiency improvements will continue to strengthen our competitive
Slide 16: Current focus areas
Current focus areas Build on strong position on main markets Margin improvements Continue to improve efficiency in terms of cost, capacity and capital Turn Other Units profitable Slide 16
Slide 17: Our vision
Our vision BE Group shall be the most: - Professional - Successful - Respected steel service company Slide 17
Slide 18: Slide 18
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Slide 19: Appendix Financial Information
APPENDIX FINANCIAL INFORMATION Slide 19
Slide 20: Appendix: Financial summary
Appendix: Financial summary 2013 2014 Full year Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 Tonnage 102 108 92 96 98 98 438 398 Net Sales 1,032 1,089 916 957 1,003 1,027 4,634 3,994 Underlying EBIT 14 8 18 0 16 5 49 40 % of Sales 1.4% 0.8% 2.0% 0.0% 1.6% 0.5% 1.1% 1.0% EBIT -17 5 13 -4 12 4 26 -3 % of Sales -1.7% 0
Slide 21: Appendix: Sales per customer segment
Appendix: Sales per customer segment Q2 – Share of total sales (%) OEM & 50% partners 49% Project 21% 20% Pre- 21% processing 21% Retail 8% 10% 0% 10% 20% 30% 40% 50% 60% 2014 2013 Slide 21
Slide 22: Appendix: Sales per product area
Appendix: Sales per product area Q2 – Share of total sales (MSEK) Long steel 297 306 Flat 379 steel 410 Reinforce- 58 ment 86 Stainless 177 steel 173 Aluminum 44 49 Other 72 65 0% 10% 20% 30% 40% 2014 2013 Slide 22
Slide 23: Appendix: Sales per channel
Appendix: Sales per channel Q2 – Share of total sales (MSEK) Direct 147 163 Inventory 492 528 Service 403 402 0% 10% 20% 30% 40% 50% 60% Sales outside scope of channels not included 2014 2013 Slide 23