Bulten Ab · OMXSTO:BULTEN

Bulten Ab — Q2 2020 Earnings Presentation

26 slides from Bulten Ab's earnings presentation, Jul 10, 2020

  1. Slide 1: Six Months Report, Jan-June 2020

    SIX MONTHS REPORT, JAN-JUNE 2020 10 JULY 2020, AT 11.00 CET

  2. Slide 2: Six Months Report, Jan-June 2020 conference details

    SIX MONTHS REPORT, JAN‐JUNE 2020  Telephone/audio conference 10  Direct Link Audiocast: July 2020, at 11.00 CET https://tv.streamfabriken.com/bulten‐q2‐2020  Presented by: Call in to teleconference: – Anders Nyström, President and CEO SE: +46850558359 UK: +443333009274 – Helena Wennerström, EVP a

  3. Slide 3: Agenda

    AGENDA 1. Bulten in brief 2. Market development 3. Second quarter 2020 4. In focus 2020

  4. Slide 4: Strong customer base and relationships with major vehicle OEMs as well as Tier 1

    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 4% Hitachi Sony 10% Honeywell TE Suppliers Autoliv Lear Corporation Aisin Magna CATL Mah

  5. Slide 5: Strong geographical footprint

    Strong position 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 Ni

  6. Slide 6: Equity story - Stronger24 Investment highlights

    Equity story ‐ Stronger 24 Investment highlights Strong financial Strong position Growth Margin expansion platform FSP concept Organic growth Acquisition synergies Financial leverage continued One of the few players that Leveraging strong position and ramp‐up of existing distribution of dividends of

  7. Slide 7: 2. Market development

    2. MARKET DEVELOPMENT

  8. Slide 8: LMC Automotive short-term market view

    LMC AUTOMOTIVE SHORT‐TERM MARKET VIEW  LMC Automotive estimate global automotive production, FY 2020 – More stable forecast situation in June compared to April – Production of LV in 2020 estimated down by 19.9% – – Production of HCV (>15 t) in 2020 estimated down by 26.9% For Bulten’s mix towards a

  9. 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) 20% 16,0% 35% 15% 10% 8,0% 25% 4,5% 16,3% 12,9% 5% 15% 4,9% 5,2% 0% 5% ‐5% -0,9% -5,7% ‐5% ‐10% -2,5% ‐15% ‐15

  10. Slide 10: 3. Second quarter 2020

    3. SECOND QUARTER 2020

  11. Slide 11: Events during and after Q2 2020

    EVENTS DURING AND AFTER Q2 2020 DURING Q2  Actions taken to mitigate effects due to Covid19 – Withdrawn dividend – Short‐term layoffs – Halted investments  In line with the company’s sustainability strategy, Bulten’s unit in Poland has signed an agreement for fossil‐free electricity for its extern

  12. Slide 12: Mitigation actions taken related to Covid-19 effects

    MITIGATION ACTIONS TAKEN RELATED TO COVID‐19 EFFECTS  Costs reduction – Short‐term layoffs for the most 1,200 employees • During the quarter, the rate of layoffs decreased as volumes increased – Measures and adjustments to the company's operations have been implemented in each market. – In purchasi

  13. Slide 13: Acquisition of minority stake in TensionCam Systems AB

    ACQUISITION OF MINORITY STAKE IN TENSIONCAM SYSTEMS AB  Bulten has acquired 27 percent of the shares in TensionCam Systems AB for SEK 6 million  TensionCam is a Gothenburg‐based company, specializing in the development of sensors for clamp force monitoring in screw joints  Bulten and TensionCam w

  14. Slide 14: Bulten awarded a new FSP contract of appr. EUR 60 million annually

    BULTEN AWARDED A NEW FSP CONTRACT OF APPR. EUR 60 MILLION ANNUALLY  Bulten was awarded an FSP contract for supply of fasteners to a European automotive manufacturer, also one of its existing customers  The contract is a transfer of an ongoing FSP set up for two assembly plants  The annual order v

  15. Slide 15: Changes in Bulten's Group Management

    CHANGES IN BULTEN'S GROUP MANAGEMENT Markus Baum has been recruited to Claes Lundqvist, currently VP Business Fredrik Bäckström, formerly SVP a newly established position as Controller, has been appointed acting Production Bulten, will take up a Chief Financial Officer (CFO) starting on Chief Commer

  16. Slide 16: Group summary Q2 2020

    GROUP SUMMARY Q2 2020 Q2 JAN ‐ JUNE LTM FY FINANCIAL SUMMARY JUL 19‐ 2020 2019 ∆ 2020 2019 2019 ∆ JUN 20 Net sales 441 781 ‐43.5% 1262 1591 ‐20.7% 2764 3,093 ‐10.6% Gross profit 40 129 ‐89 194 288 ‐94 449 543 ‐94 Earnings before depreciation (EBITDA) ‐18 54 ‐72 65 145 ‐80 159 239 ‐80 Operating earni

  17. Slide 17: Sales: ramp up new contracts couldn't balance for Covid-19 effect

    SALES: RAMP UP NEW CONTRACTS COULDN’T BALANCE FOR COVID‐ 19 EFFECT  Sales down ‐43.5% in Q2 vs last year – Sales in PSM accorded for 90 MSEK in the quarter  Order bookings down ‐45.6 % in Q2 vs last year – considered to be unreliable due to the current uncertain production situation in the automot

  18. Slide 18: EBIT: lower volumes affected margins

    EBIT: LOWER VOLUMES AFFECTED MARGINS  EBIT SEK ‐59 million with EBIT margin down to ‐13.3 % in Q2 – Volumes and production downturn affected profitability – Currency effects of SEK ‐11 million EBIT margin Employees (head counts) in Q2 8% 6% 4% 2,7% 2,7% 2% 21 21 0% ‐2% ‐4% ‐59 ‐48 ‐6% ‐8% ‐10% ‐12%

  19. Slide 19: Cash flow, balance sheet and net debt

    CASH FLOW, BALANCE SHEET AND NET DEBT Q2 JAN – JUNE FY CASH FLOW STATEMENT (MSEK) 2020 2019 2020 2019 2019 Cash flow from operating activities before changes in working capital ‐9 48 38 105 177 Cash flow from operating activities including changes in working capital 51 52 114 ‐5 207 Cash flow from i

  20. Slide 20: Key indicators

    KEY INDICATORS LTM FULL YEAR THE GROUP, 12 MONTHS JUL 19‐ JUN 20 JUL 18‐JUN 19 2019 RETURN INDICATORS Return on capital employed, % 0.2 9.0 5.5 Adjusted Return on capital employed, % 2.1 9.5 8.1 Return on capital employed, (excluding financial lease) % 0.0 9.5 5.8 Adjusted Return on capital employed

  21. Slide 21: Financial agreements

    FINANCIAL AGREEMENTS  Bulten is mainly financed through SHB via a financing agreement of SEK 750 million, which runs until June 2024.  During Q2 Bulten has reached another financing agreement with Danske Bank, mainly for the Polish operations. – Final documentation will be completed at the beginni

  22. Slide 22: Financial targets and guidelines

    FINANCIAL TARGETS AND GUIDELINES Growth Margin ROCE Net sales SEK 5 billion in Operating At least 15%. 2024, equating to a margin of at compound annual growth least 8%. FULL YEAR GUIDE‐ rate (CAGR) of 10%. RTM 2019 LINES . Q2 RTM Q2 RTM Q2 RTM Average net working 31.4 25.5 20‐25 capital as % of sale

  23. Slide 23: 4. In focus 2020

    4. IN FOCUS 2020

  24. Slide 24: Predicted stronger Bulten growth vs the market

    PREDICTED STRONGER BULTEN GROWTH VS THE MARKET Covid‐19 Future contracts Existing contracts & sales growth + Ramp up of new contracts 2020 + New signed not yet started + and increased ‐ Market volatility = Bulten growth Expected annual sales 2019 an onwards contracts delivery value in + and model sh

  25. Slide 25: In focus 2020

    IN FOCUS 2020  Mitigate current situation in the industry  Apply strict cost and cash flow control  Prepare for swift ramp‐up  Capture PSM synergies  Seize turmoil opportunities  Increase innovation and sustainability activities  Execute Stronger24 strategy SIX MONTHS REPORT, JAN‐JUNE 2020 25

  26. Slide 26: Bulten - a stronger solution

    BULTEN ‐ A STRONGER SOLUTION

Bulten — Q2 2020 Earnings Presentation on 6ix