Bulten Ab · OMXSTO:BULTEN
Bulten Ab — FY2022 Earnings Presentation
22 slides from Bulten Ab's earnings presentation, Feb 9, 2023
Slide 1: Full Year report, Jan-Dec 2022
Full Year report, Jan-Dec 2022 February 9, 2023, at 15:30 CET
Slide 2: Twelve Months Report, Jan-Dec 2022
TWELVE MONTHS REPORT, JAN-DEC 2022 ◼ Telephone/audio conference ◼ Direct Link Audiocast: February 9, 2023, at 15.30 CET https://financialhearings.com/ event/43564 ◼ Presented by: – Anders Nyström, President and CEO Call in to teleconference: – Anna Åkerblad, CFO ◼ SE: +46 850 516 386 UK: +44 203 198
Slide 3: Agenda
Agenda ─ Bulten in brief ─ Market development ─ Fourth quarter and full year 2022 ─ In focus 2023
Slide 4: Bulten in brief
BULTEN IN BRIEF All numbers are for full-year 2022 12 MONTHS REPORT 2022 4
Slide 5: Market development
Market development
Slide 6: LMC Automotive's long-term view for global production
LMC AUTOMOTIVE’S LONG-TERM VIEW FOR GLOBAL PRODUCTION GLOBAL PRODUCTION GROWTH RATE (YEAR-OVER-YEAR) LIGHT VEHICLES HEAVY COMMERCIAL VEHICLES Q3 2022 Q4 2022 Q3 2022 Q4 2022 15% 15% 10% 10% 7,5% 6,1% 7,0% 4,8% 4,8% 4,6% 5,6% 5% 3,0% 5% 0,1% 0% 0% -5% -5% -5,3% -10% -10% -15% -15% -15,8% -14,6% -20%
Slide 7: Raw material price development
RAW MATERIAL PRICE DEVELOPMENT Steel – wire rod Q4 has been characterized by cost inflation DSV Index indicated a new all time high related to energy and base commodities, price level in Q4 2022 1 600 however, the price for wire rod has 1 400 remained stable. 1 200 The demand has been steady, but sh
Slide 8: Energy price development
ENERGY PRICE DEVELOPMENT EUR per MWh 600 500 400 300 200 100 0 ES IT DE Scandinavia Natural gas (Dutch TTF) prices in declining trend Electricity prices increased somewhat during the during second half of Q4. Price levels anticipated fourth quarter, mainly driven by colder weather in December, and b
Slide 9: Fourth quarter and full year 2022
Fourth quarter and full year 2022
Slide 10: Major events
MAJOR EVENTS Q4 2022 Full year 2022 ◼ Net sales over SEK 1,3 billion ◼ Record high net sales SEK 4,5 billion ◼ Adjusted operating margin in line with 2024 targets ◼ Closure of Russian operations ◼ Strong sales growth in all sectors ◼ Strong new contract wins ◼ Closure of Pembroke (UK) plant decided
Slide 11: A sustainable leader
A SUSTAINABLE LEADER In the fourth quarter, Bulten was awarded a Platinum Medal for its sustainability work by EcoVadis, an international provider of sustainability ratings. The award places Bulten in the top one percent of all 75,000 companies assessed by EcoVadis. 12 MONTHS REPORT 2022 11
Slide 12: Increasing sales volumes
INCREASING SALES VOLUMES Q4 2022 ▪ Group net sales - an increase of 40.5% on the same period last year ▪ Overall positive sales growth in the automotive sector, as well as in other sectors ▪ > SEK 4.5 billion 12-month rolling 12 MONTHS REPORT 2022 12
Slide 13: Change R12M December 2021 to December 2022
CHANGE R12M DECEMBER 2021 TO DECEMBER 2022 +744 SEK m SEK m (+19,9%) 4 500 4 474 4 400 Net sales per customer group +197 2022-12-31 YTD 4 300 +125 Other industries outside Automotive OEM, light vehicles 4 200 +38 11,8% 4 100 4 000 Automotive suppliers +384 15,8% 3 900 3 800 3 730 63,1% 9,3% 3 700 OE
Slide 14: Improved EBIT even in challenging times
IMPROVED EBIT EVEN IN CHALLENGING TIMES Q4 2022 Quarter EBIT margin Reported Adjusted for non-recurring items ◼ Adjusted EBIT SEK 114 (48) million with adjusted EBIT margin amounted to 8.5% (5.0) in Q4 10% 9% 8,5% Positive: 8% 7,6% ─ Improved EBIT/EBIT margin compared to Q4, 2021 7% (at the level se
Slide 15: Earnings per share
EARNINGS PER SHARE Q4 FY 2022 2021 ∆ 2022 2021 ∆ Net sales 1,339 953 40.5% 4,474 3,730 19.9% Gross profit 245 168 77 826 710 116 Earnings before depreciation (EBITDA) 148 90 58 355 400 -45 Operating earnings (EBIT) 103 48 55 180 232 -52 Operating margin, % 7.6 5.0 2.6 4.0 6.2 -2.2 Adjusted operating
Slide 16: Cash flow, balance sheet and net debt
CASH FLOW, BALANCE SHEET AND NET DEBT Q4 FULL YEAR CASH FLOW STATEMENT (MSEK) 2022 2021 2022 2021 Cash flow from operating activities before changes in working capital 145 72 381 332 Cash flow from operating activities including changes in working capital 250 45 298 48 Cash flow from investing activ
Slide 17: Key indicators
KEY INDICATORS FULL YEAR THE GROUP, 12 MONTHS 2022 2021 RETURN INDICATORS Return on capital employed, % 6.3 9.7 Adjusted return on capital employed, % 9.9 9.7 Return on capital employed, (excluding financial lease) % 7.0 11.0 Adjusted return on capital employed, (excluding financial lease) % 11.2 11
Slide 18: Financial targets and guidelines
FINANCIAL TARGETS AND GUIDELINES FULL YEAR FULL YEAR GUIDE- 2022 2021 LINES Average net working 21.4 20.7 20-25 Growth Margin ROCE capital as % of sales Net sales SEK 5 billion in Operating At least 15% CAPEX as % of sales 6.0 4.6 2-3 2024, equating to a margin of at Depreciation as % 3.9 4.5 4-5 co
Slide 19: In focus
In focus AY
Slide 20: In focus 2023
IN FOCUS 2023 ─ Accelerate inventory right-sizing activities ─ Continue identification of M&A targets for diversification of customer sectors ─ Execute on operational improvements ─ Ramp-up of new surface treatment plant in Radziechowy-Wieprz (Poland) ─ Closure of manufacturing plant in Pembroke (UK
Slide 21: Strategy
STRATEGY GOAL 2024 STRONG POSITION Enhanced offering, including leadership in sustainability and innovation. FSP/FSPs concept, geographical proximity to important customers, forefront of innovation and sustainability GROWTH ORGANIC Net sales SEK 5 billion Organic and acquisition growth CAGR 10% MARG
Slide 22: A stronger solution
A stronger solution 22