Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Shareholder Meeting (April 2018)
22 slides from Bulten Ab's shareholder meeting presentation, Apr 26, 2018
Slide 1: Annual General Meeting 2018
ANNUAL GENERAL MEETING 2018 TOMMY ANDERSSON, PRESIDENT AND CEO 26 APRIL 2018
Slide 2: 2017 in Summary
2017 IN SUMMARY Advanced position with significant new FSP contracts – One of the company’s largest ever FSP contract signed Established on the American market Significant investment decisions during the year Development of technology for powertrains for electric cars and hybrids Investmen
Slide 3: Bulten at a Glance
BULTEN AT A GLANCE More than 140 years of fasteners experience, started in 1873 Full Service Provider (FSP) to international automotive industry Footprint Technology leader Quality leader Strong financials AGM 2018 3
Slide 4: A passenger car consists of 25 to 50 kilos of fasteners
A PASSENGER CAR CONSISTS OF 25 TO 50 KILOS OF FASTENERS Of Bulten’s sales, approximately 25% goes to powertrain and 75% to chassis The weight of The cost of Of which the cost all fasteners in a car is between all fasteners in a car is between per engine is between 20‐50 kg 70‐250 EUR 20‐40 EUR AGM 2
Slide 5: Strong customer base and relationships with major vehicle OEMs as well as Tier 1 suppliers
STRONG CUSTOMER BASE AND RELATIONSHIPS WITH MAJOR VEHICLE OEMS AS WELL AS TIER 1 SUPPLIERS HEAVY VEHICLES LIGHT VEHICLES 13% 79% TIERS 8% Selection of customers. Share of Bulten’s sales YTD AGM 2018 5
Slide 6: Bulten has its strongest position in Northern Europe but will grow on emerging markets
BULTEN HAS ITS STRONGEST POSITION IN NORTHERN EUROPE BUT WILL GROW ON EMERGING MARKETS GEOGRAPHIC SALES DISTRIBUTION BULTEN MARKET SHARE JANUARY – MARCH 2018 DEVELOPMENT Great Britain, 31.0% Market share of total European fasteners Germany, 22.0% 20% 17% 17% 17% 14% Sweden, 15.1% 15% 11% Poland, 0.9
Slide 7: Full Service Provider (FSP) to international automotive industry
FULL SERVICE PROVIDER (FSP) TO INTERNATIONAL AUTOMOTIVE INDUSTRY Bulten is one of few players in Europe that has a proven track record and can handle complex full service contracts for the automotive industry Complete responsibility throughout the entire value chain of fasteners Offers a full
Slide 8: Lower In Place Cost (IPC) with smart technologies
LOWER IN PLACE COST (IPC) WITH SMART TECHNOLOGIES IPC EQUALS THE TOTAL COST, Bulten’s advanced technology aim to THE SO CALLED IN PLACE COST optimize the total cost (IPC) for the customer Cost profile for a fastener The cost of the physical fastener normally 15% • Fastener cost amounts to 15% of
Slide 9: Predicted stronger Bulten growth vs the market
PREDICTED STRONGER BULTEN GROWTH VS THE MARKET Future Bulten growth contracts Market 2018 and Existing contracts & market growth Ramp up of new contracts New signed not yet started contracts & increased delivery value volatility and model shifts = onward in EV’s 6% 94% EUR 20 million/year EUR 700 th
Slide 10: Lean and well positioned logistics and manufacturing footprint and flexible supply chain
BULTEN HAS A LEAN AND WELL POSITIONED LOGISTICS AND MANUFACTURING FOOTPRINT AND FLEXIBLE SUPPLY CHAIN LEAN AND WELL POSITIONED LOGISTICS AND IN‐HOUSE VS. TRADING MANUFACTURING FACILITIES (SALES VALUE) LOGISTICS 2% OUTSOURCED IN‐HOUSE PRODUCTION PRODUCTION 39% 59% Global logistics footprint Bulte
Slide 11: Sustainability – a natural part of our business
SUSTAINABILITY – A NATURAL PART OF OUR BUSINESS SUSTAINABILITY FOCUS AREAS BASED ON BULTEN’S VALUE CHAIN NEW SOLUTIONS that have an environmental and economic impact throughout the value chain; choice of materials, waste generation, surface treatment, production, pollution, transport, recycling oppo
Slide 12: Trends that affect Bulten
TRENDS THAT AFFECT BULTEN TREND IMPLICATIONS FOR BULTEN BULTEN ACTIONS GLOBALIZATION Vehicle manufacturers to new markets. Follow customers and establish on selected markets. Expectations and higher demands on contributing to Systematic work to increase sustainability where SUSTAINABILITY increased
Slide 13: The next generation of electric cars consist of substantially more fasteners
THE NEXT GENERATION OF ELECTRIC CARS CONSIST OF SUBSTANTIALLY MORE FASTENERS THAN TRADITIONAL CARS Bulten has started deliveries of fasteners to the pre‐series of the next generation of electric vehicles These deliveries entail a considerably higher delivery value per car compared to an equivale
Slide 14: Increased recognition in the area of electric cars and sustainable development
INCREASED RECOGNITION IN THE AREA OF ELECTRIC CARS AND BULTEN AS A CONTRIBUTOR IN THE SUSTAINABLE DEVELOPMENT Bulten is involved in electrification projects with various automotive manufacturers and is helping to drive developments concerning fastener shape and material to create optimal condition
Slide 15: Shareholder information
SHAREHOLDER INFORMATION 10 LARGEST HOLDERS (2018‐02‐28 – 2018‐03‐29) Shareholder No. of shares Share of votes and SHARE DEVELOPMENT TEN LARGEST SHAREHOLDERS, capital (%) 31 MARCH 2016 Volito AB 4 500 000 21.4 Lannebo fonder 2 264 708 10.8 Öresund Investment AB 2 263 535 10.8 Spiltan Fonder AB 922 57
Slide 16: Q1 in Summary
Q1 IN SUMMARY
Slide 17: Operational highlights for the quarter
OPERATIONAL HIGHLIGHTS FOR THE QUARTER Sales increased by 9.6% Order intake increased 8.2% EBIT margin 7.8% (8.1) – Positive currency effect – Higher raw material prices – Irregular production pace First volumes delivered from new surface treatment unit in Germany First pre series volumes
Slide 18: Group Summary
GROUP SUMMARY FIRST QUARTER COMMENTS Net sales SEK 853 m (778) Sales up with 9.6% and strong order intake, up 8.2% EBIT margin 7.8% (8.1) ̶ Growth comes from gradually increasing volumes after model change and deliveries to a previously announced significant Earnings after tax SEK 48 m (51)
Slide 19: Currency fluctuations and raw material increases affected the targets
CURRENCY FLUCTUATIONS AND RAW MATERIAL INCREASES AFFECTED THE TARGETS Growth Margin ROCE EPS Dividend Profitable organic Operating At least 15% EPS At least one growth more margin of at development third of net strongly than the least 7% earnings after industry average tax Q1 9.6% 7.8% Na 2.43 SEK 3
Slide 20: Going Forward
GOING FORWARD
Slide 21: Going Forward
GOING FORWARD Entering new growth phase with secured contracts – Preparing for future growth through investments Bulten has taken – Ramp‐up preparation significant steps forward Becoming the most cost‐effective in the market and has FSP supplier in the industry created a high credibility in the
Slide 22: Bulten - A Stronger Solution
BULTEN ‐ A STRONGER SOLUTION