Slide 1: Third Quarter 2015 Earnings Conference
Third Quarter 2015 Earnings Conference 23 October, 2015
Slide 2: Today's presenters
Today’s presenters JOHAN OSKAR MENCKEL HELLSTRÖM CEO CFO Since: 2012 Since: 2011 Gränges since: 2004 22
Slide 3: Gränges is the global leader with a market share of 20%
Gränges is the global leader with a market share of 20% FINSPÅNG, SHANGHAI, SWEDEN CHINA 49% New York 37% Tokyo 14% Seoul Pune Sao P aolo Sales a nd Technical support Sales d estinations Percentage o f sales volume FY 2 014 3
Slide 4: Summary Q3 2015 – Good growth in Europe and North America. Market remains weak in China
Summary Q3 2015 – Good growth in Europe and North America. Market remains weak in China Sales volume decreased by 0.9% Adjusted operating profit improved by 6.2% to SEK 112 million Tailwind from favourable exchange rates partly offset by price lag on aluminium premiums and lower sales volum
Slide 5: Limited market growth expected for full year 2015
Limited market growth expected for full year 2015 Light vehicle production growth (YoY) Region Q3 2015 Q4 2015 outlook FY 2015 outlook Asia -1% ±0% ±0% Europe +5% +1% +3% Americas ±0% -3% -1% Global +1% ±0% +1% Source: IHS Automotive, September 16, 2015 5
Slide 6: Europe and North America show good growth, while market remain weak in China
Europe and North America show good growth, while market remain weak in China Gränges sales volume (ktonnes) Asia Europe Americas -8% +6% 20.7 19.6 19.1 18.8 17.6 16.4 16.0 14.9 +4% 14.0 13.6 6.2 5.9 7.4 6.5 5.2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2014 2015 2014 2015 2014 2015 Slowdown i
Slide 7: Efficiency measures and focus on growth
Efficiency measures and focus on growth Further steps taken in third quarter to increase operational efficiency Organisational changes – increased focus on strategic R&D – applied R&D in closer cooperation with operations Metal management improvement through a more focused leadership Red
Slide 8: Continued positive earnings trend in third quarter
Continued positive earnings trend in third quarter Rolling 12 months sales volume and adjusted operating profit 200 521 528 550 494 Adjusted operating profit (SEK million) 463 437 444 180 450 401 Sales volume (ktonnes) 362 374 372 371 348 161 163 163 160 160 160 160 160 158 159 350 154 155 149 148 1
Slide 9: Higher earnings and strong cash flow in third quarter
Higher earnings and strong cash flow in third quarter Financial overview SEK million Q3 January - September 2015 2014 Change 2015 2014 Change Sales volume (ktonnes) 38.9 39.3 -0.9% 125.0 122.3 2.2% Net sales 1,281 1,198 6.9% 4,243 3,531 20.2% Adjusted operating profit1 112 106 6.2% 425 360 18.0% A
Slide 10: Net debt position (SEK million)
Net debt was SEK 442 million at the end of third quarter Change in net debt 0 1.0 0.6 Net debt position (SEK million) -200 Cash flow before financing SEK 267 million -400 -49 -34 17 -442 -600 183 -725 165 -800 -1 000 Net Adjusted Change in Other Investments & FX & other Net debt EBITDA work
Slide 11: Outlook
Outlook We aim to further strengthen our leading global position and continue to grow with good profitability Global production of light vehicles is expected to be flat to slightly negative in the fourth quarter, according to IHS. Growth below 1% is expected for FY2015 Gränges’ sales volume
Slide 12: Summary of third quarter
Summary of third quarter Positive long-term view on China although the uncertainty has increased short term Sales volume decreased by 0.9% Adjusted operating profit rose by 6.2% to SEK 112 million Solid financial position Well positioned for profitable growth 12
Slide 13: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 14: GRANGES
GRANGES 4