Slide 1: First Quarter 2015 Earnings Conference
First Quarter 2015 Earnings Conference May 4, 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 a global aluminium company focused on rolled products for brazed heat exchangers
Gränges is a global aluminium company focused on rolled products for brazed heat exchangers Heat exchanger value chain Aluminium producers Material producers Heat exchanger producers Automotive and HVAC&R 3
Slide 4: Modern vehicles have up to ten different heat exchangers, sometimes even more
Modern vehicles have up to ten different heat exchangers, sometimes even more Air condition evaporator Cabin heater Battery radiator (for passive battery cooling) Engine radiator Charge air cooler Hybrid system radiator Chiller (for active battery cooling) Air condition condenser Transmission oil co
Slide 5: Improved earnings and higher volume in first quarter
Improved earnings and higher volume in first quarter Sales volume +3.3%, partly due to stock building by a number of customers in Asia Adjusted operating profit increased by 25% to SEK 155 million Support from favorable exchange rates offset by higher costs and slightly lower conversion prices
Slide 6: Intensified investments in new products
Intensified investments in new products Increased production capacity for TRILLIUM® in second quarter – Simplifies the brazing process for our customers – Enables a more compact heat exchanger design Good potential for products within MULTICLAD® Gränges was recognized for its leading edge in n
Slide 7: Modest market growth expected for full-year 2015
Modest market growth expected for full-year 2015 Light vehicle production growth (YoY) Region Q1 2015 Q2 2015 outlook FY 2015 outlook Asia +1% +2% +3% Europe +2% -2% ±0% Americas -1% +1% ±0% Global +1% +1% +2% Source: IHS Automotive, April 16, 2015 7
Slide 8: Continued good volume growth in Asia
Continued good volume growth in Asia Gränges sales volume (ktonnes) Asia Europe Americas +7% +1% 21,1 20,7 19,4 19,1 18,8 16,0 15,0 16,0 14,0 13,6 -2% 6,0 5,7 6,2 5,2 5,9 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2014 2015 2014 2015 2014 2015 Continued growth for light vehicle Increased sales
Slide 9: Positive earnings trend continued in first quarter
Positive earnings trend continued in first quarter Rolling 12 months sales volume and adjusted operating profit 494 200 463 500 437 444 Adjusted operating profit (SEK million) 401 180 362 374 372 371 400 Sales volume (ktonnes) 348 160 160 160 160 161 286 158 159 160 154 155 300 152 147 149 148 140 2
Slide 10: Increased volume and earnings
Increased volume and earnings Financial overview SEK million Q1 Rolling 12 months 2015 2014 Change Mar 2015 Dec 2014 Change Sales volume (ktonnes) 42.7 41.3 3.3% 161.4 160.0 0.9% Net sales 1,456 1,157 25.8% 5,047 4,748 6.3% Adjusted operating profit1 155 124 24.7% 494 463 6.6% Adjusted operating mar
Slide 11: Net debt position (SEK million)
Net debt was SEK 775 million at the end of Q1 2015 Change in net debt 0 -100 1.2 1.1 Net debt position (SEK million) -200 Net cash flow before financing SEK -1 million -300 -400 -500 -600 -700 -132 -800 -46 -765 206 -29 -9 -775 -900 -1 000 Net Adjusted Change in Other Investments FX & other Net debt
Slide 12: Working capital increased year over year
Working capital increased by 5 days year over year Average working capital days 150 Average working capital (days) 125 +5 101 102 99 97 95 94 95 100 93 93 90 86 89 84 75 50 25 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 12
Slide 13: Outlook
Outlook Aims to further strengthen our position and continue to grow with good profitability Global light vehicle production is expected to grow by 1% in Q2 2015 For the full year 2015 IHS forecasts a 2% growth in global light vehicle production Gränges’ growth in Asia is expected to be in l
Slide 14: Summary of first quarter
Summary of first quarter A positive start to 2015 – Q1 the best quarter so far Sales volume +3.3% Adjusted operating profit increased by 25% to SEK 155 million Solid financial position Well positioned for profitable growth 14
Slide 15: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 16: GRANGES
GRANGES y 4