Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q1 2020 Earnings Presentation
24 slides from Bulten Ab's earnings presentation, Apr 23, 2020
Slide 1: Three Months Report, Jan-March 2020
THREE MONTHS REPORT, JAN-MARCH 2020 23 APRIL 2020, AT 15.30 CET
Slide 2: Three months report, Jan-March 2020
Three months report, Jan‐March 2020 Telephone/audio conference 23 April Direct Link Audiocast: 2020, at 15.30 CEST https://tv.streamfabriken.com/bulten‐q1‐2020 Call in to teleconference: Presented by: SE: +46850558373, – Anders Nyström, President and CEO UK +443333009265, – Helena Wennerströ
Slide 3: Agenda
Agenda 1. Bulten in brief 2. Market development 3. First quarter 2020 4. In focus 2020
Slide 4: 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 Vehicle OEM’s Other Akcom Jabil AB Volvo Renault Garmin Miele Mack Scania GE Mindary MAN UD Trucks Foxconn Philips 2% Hitachi Sony 10% Honeywell TE Suppliers Autoliv Lear Corporation 10% Aisin Magna Ligh
Slide 5: Strong geographical footprint
Strong geographical footprint SWEDEN Gothenburg, Arendal, Hallstahammar Production Head office ‐ Gothenburg Sales Development GREAT BRITAIN Pembroke and Scunthorpe USA Hudson Youngstown Streetsboro, Ohio* POLAND Bielsko‐Biala GERMANY RUSSIA CHINA TAIWAN Bergkamen LOGISTICS CENTERS Nizhny Novgorod Ti
Slide 6: 2. Market development
2. Market development
Slide 7: Market development 2019 and Q1 2020
Market development 2019 and Q1 2020 We maintained our market shares in 2019, going LIGHT VEHICLES SALES UNITS forward we will focus on growing globally GLOBALLY 2019 New tax regulations introduced in a number of European countries during 2020 Q1 2020 – Covid‐19 effects increased gradually In F
Slide 8: LMC Automotive short-term market view
LMC Automotive short‐term market view LMC Automotive estimate global automotive production, FY 2020 – Dramatic change of forecast in Feb and March – Production of LV in 2020 estimated down by 13.4% – Production of HCV (>15 t) in 2020 estimated down by 27.2% – For Bulten’s mix towards automotive, d
Slide 9: LMC Automotive long-term view for global production
LMC Automotive long‐term view for global production GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES HEAVY COMMERCIAL VEHICLES (>15T) 13,1% 35% 15% 25% 20,6% 10% 6,1% 10,7% 15% 5% 3,7% 2,7% 3,7% 5% 0% ‐5% -1,0% -2,5% ‐5% -5,6% ‐15% ‐10% ‐25% ‐1
Slide 10: 3. First quarter 2020
3. First quarter 2020
Slide 11: Events Q1 2020
Events Q1 2020 Renewed strategy and new financial targets presented on CMD Launch of BUFOe – new energy efficient product family Completed acquisition of PSM Actions taken to mitigate effects due to Covid19 – Withdrawn dividend – Short‐term layoffs – Halted investments THREE MONTHS REPORT, 2
Slide 12: Bulten + PSM = a stronger solution
Bulten + PSM = a stronger solution Purchase price USD 24.5 million (SEK 230 million) on cash‐free and debt‐free basis Bulten's customer base will broaden in important growth markets in Asia and North America – PSM's growth potential in Europe is also strengthened by Bulten's strong position in E
Slide 13: New vision and financial targets
Stronger 24 New financial targets New vision and financial targets Growth: 5 BSEK 2024 ‐ CAGR of 10% EBIT: > 8% ROCE: > 15% Dividend policy of at least one third of net earnings after tax unchanged We create and supply the most innovative and sustainable fastening Values solutions Professional Innov
Slide 14: Mitigation actions taken related to Covid-19 effects
Mitigation actions taken related to Covid‐19 effects Costs reduction – Short‐term layoffs for approximately 1,200 employees • Management has cut its wages by 10 percent over the next few months – Further measures have been taken to keep costs down Cash flow improvement measures – Investment rest
Slide 15: Group summary Q1 2020
Group summary Q1 2020 Q1 LTM FY FINANCIAL SUMMARY APR19‐ 2020 2019 ∆ 2019 ∆ MAR20 Net sales 821 810 1.4% 3,104 3,093 0.4% Gross profit 154 159 ‐5 538 543 ‐5 Earnings before depreciation (EBITDA) 83 91 ‐8 231 239 ‐8 Operating earnings (EBIT) 43 58 ‐15 83 98 ‐15 Operating margin, % 5.2 7.1 ‐1.9 2.7 3.
Slide 16: Sales: Ramp up new contracts couldn't balance for Covid-19 effect
Sales: Ramp up new contracts couldn’t balance for Covid‐19 effect The market decline is reflected in order bookings and net sales during the quarter, although the effects have been partially balanced out by the acquisition of PSM Order bookings down 6.1% in Q1 vs last year – The current uncertain
Slide 17: EBIT: Lower volumes affected margins
EBIT: Lower volumes affected margins EBIT margin down by 1.9% in Q1 vs last year (‐2,1 % currency adjusted) – Volumes and production downturn in March affected profitability – Adaption of production to demand, under‐absorption Quarterly volumes Employees (head counts) in the 1st quarter 8,0% 7,1%
Slide 18: Cash flow, Balance sheet and Net Debt
Cash flow, Balance sheet and Net Debt Q1 FULL YEAR CASH FLOW STATEMENT (MSEK) 2020 2019 2019 Cash flow from operating activities before changes in working capital 47 57 177 Cash flow from operating activities including changes in working capital 63 ‐57 207 Cash flow from investing activities ‐71 ‐35
Slide 19: Key indicators – capital structure & return indicators
Key indicators – capital structure & return indicators LTM FULL YEAR THE GROUP, 12 MONTHS APR 19‐ MAR 20 APR 18‐MAR 19 2019 RETURN INDICATORS Return on capital employed, % 3.9 10.9 5.5 Adjusted Return on capital employed, % * 5.9 11.0 8.1 Return on capital employed, (excluding lease IFRS 16) % 5.1 1
Slide 20: Financial guidelines 2020 and onwards
Financial guidelines 2020 and onwards FULL YEAR GUIDELINES THE GROUP Q1 2019 Average net working capital Comments for Q1 2020: 29.9 25.5 20-25 as % of sales* • NWC increased since year end 2019 due to CAPEX as % of sales* 6.3 7.1 2-3 acquisition of PSM and changed demand • Capex plan on hold Depreci
Slide 21: 4. In focus 2020
4. In focus 2020
Slide 22: In focus 2020
In focus 2020 Mitigate the Covid‐19 situation Strict cost and cash flow control Prepare for swift ramp‐up Capture PSM synergies Seize turmoil opportunities Increase innovation and sustainability activities Execute Stronger 24 strategy THREE MONTHS REPORT, 2020 22
Slide 23: Predicted stronger Bulten growth vs the market
Predicted stronger Bulten growth vs the market Covid‐19 Existing contracts + Ramp up of new + New signed not yet started + New signed not yet started ‐ Market volatility = Bulten growth & market growth contracts contracts contracts + and model shifts EUR 2 million/year Ramp up and new contracts not
Slide 24: Bulten - a stronger solution
Bulten ‐ a stronger solution