Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q4 2023 Earnings Presentation
23 slides from Bulten Ab's earnings presentation, Feb 8, 2024
Slide 1: Full-Year Report/Interim Report Q4 2023
Full-Year Report/Interim Report Q4 2023 1
Slide 2: Agenda
Agenda • Bulten in brief • Market development • Q4/Full Year • In focus 2
Slide 3: Bulten in brief
Bulten in brief 5‚757 Net sales 2023 (SEK million) 230 243 Operating earnings Adjusted operating (SEK million) earnings (SEK million) 4.0 % 4.2 % Operating margin Adjusted operating margin 28.7 % 1,668 Growth Employees (FTE) NET SALES PER GEOGRAPHIC MARKET 5% North America 20% Asia • Countries where
Slide 4: Forecast for long-term global vehicle production
Forecast for long-term global vehicle production GLOBAL PRODUCTION GROWTH RATE (YEAR-OVER-YEAR) LIGHT VEHICLES HEAVY COMMERCIAL VEHICLES Q3 2023 Q4 2023 Q3 2023 Q4 2023 15% 15% 11,6% 10,1% 10% 10% 7,1% 7,0% 6,0% 5% 3,1% 5% 1,4% 1,9% 2,4% 0,9% 0% 0% -5% -5% -2,7% -10% -10% -15% -15% -14,3% 2022 2023
Slide 5: Major events Q4 2023
Major events Q4 2023 • Net sales over SEK 1.5 billion • Weak EBIT margin • Capacity constraints • Formation of JV in India for micro screws • Organization – new regional set up 5
Slide 6: Major events 2023
Major events 2023 • Grand opening of new surface treatment facility in Poland • 150th anniversary • Closure of UK plant and Swedish logistic center • Increased ownership of TensionCam • Capacity constraints • Acquisition of Exim & Mfr Enterprise • Formation of JV in India for micro screws • Organiza
Slide 7: Fastener supply constraints in Europe
Fastener supply constraints in Europe Context Background - The automotive OEMs ramped up their production speed after a long period of supply chain disruptions. - The import of fasteners from China and Taiwan to Europe declined due to new EU tariffs and geopolitical reasons. Current situation - Over
Slide 8: Fastener supply constraints in Europe: consequences and mitigation
Fastener supply constraints in Europe Consequences and mitigation Extraordinary measures necessary in Bulten’s value chain in order to maintain customer deliveries, impacting profits negatively by approximately 50 MSEK in Q4, and 170 MSEK in 2023. Containment actions • Overtime • Outsourcing of sele
Slide 9: New JV in India
New JV in India Bulten’s entry into the micro screw market through its JV in China has been very successful. India is a massively growing market for consumer electronics manufacturing (tablets, phones, watches, laptops, PCs…) with a need for local production of micro screws. Bulten now expands its m
Slide 10: Exim
Exim Successful onboarding process after acquisition in Q3. EXIM 2.0 • New MD – Felix Lian • 100 day plan executed focusing on: ─ growth with existing customers ─ new sales approaches ─ partnerships with key suppliers ─ price levels ─ leadership ─ digitalization & sustainability EXIM 1.0 ─ growth wi
Slide 11: New organizational/leadership structure
Bulten AB New organizational/ President & CEO Anders Nyström leadership structure Chief Financial SVP Corporate Officer Communications & Anna Åkerblad IR Ulrika Hultgren SVP Quality & SVP HR & Purchasing Sustainability Claes Lindroth Marlene Dybeck Chief Technology Officer Managing Director Exim* Em
Slide 12: Technology & Innovation
Technology & Innovation New engineering organization to strengthen the engineering resources within the company, with a clear purpose to deliver more value add product solutions to customers. Innovation Engineering Team (Identifying and developing new products based on strategy, trends and research)
Slide 13: New organizational/leadership structure
New organizational/leadership structure Christina Hallin – Interim President and CEO of Bulten from 9 February • Member of the Bulten Board of Directors since 2020 • Born in 1960 • Master in Engineering • Extensive international experience from the automotive industry • Has held several senior posit
Slide 14: Growth in sales volumes
Growth in sales volumes Q4 • Group net sales - an increase of 17.6% vs the same period previous year • Order bookings - an increase of 10.1% vs the same period the previous year Full Year • Group net sales - an increase of 28.7% vs previous year • Order bookings - an increase of 22.2% vs previous ye
Slide 15: Change in R12M Dec 2022 to Dec 2023
Change in R12M Dec 2022 to Dec 2023 SEK m Net sales per customer group 2023-12-31 YTD 6 000 +1 283 SEK m (+28,7%) 5 757 OEM, light vehicles OEM, heavy vehicles +99 Other industries 9,5% +282 outside Automotive 10,8% +126 Automotive 17,2% 5 000 suppliers 62,5% +776 4 474 4 000 Sales R12M OEM OEM Auto
Slide 16: EBIT level
EBIT level Q4 2023 Quarter EBIT margin • EBIT SEK 33 (103) million with EBIT margin Reported Adjusted for non-recurring items amounted to 2.1% (7.6) 9% 8,5% • Adjusted EBIT 33 (114) with adjusted EBIT margin 8% 7,6% amounted to 2.1% (8.5) 7% 6% Conclusion: 5% 4% • EBIT margin isn’t in line with Bult
Slide 17: Earnings per share
Earnings per share Q4 FY 2023 2022 ∆ 2023 2022 ∆ Net sales 1,576 1,339 17,6% 5,757 4,474 28.7% Gross profit 258 245 13 968 826 142 Earnings before depreciation (EBITDA) 87 148 -61 419 355 64 Operating earnings (EBIT) 33 103 -70 230 180 50 Operating margin, % 2.1 7.6 -5.5 4.0 4.0 - Adjusted operating
Slide 18: Cash flow, balance sheet and net debt
Cash flow, balance sheet and net debt Q4 FULL YEAR CASH FLOW STATEMENT (MSEK) 2023 2022 2023 2022 Cash flow from operating activities before changes in working capital 53 145 244 381 Cash flow from operating activities including changes in working capital 89 250 353 298 Cash flow from investing acti
Slide 19: Key indicators
Key indicators 2023 FULL YEAR 2022 FULL YEAR THE GROUP, 12 MONTHS RETURN INDICATORS Return on capital employed, % 8.1 6.3 Adjusted return on capital employed, % 8.5 9.9 Return on capital employed, (excluding financial lease) % 8.7 7.0 Adjusted return on capital employed, (excluding financial lease)
Slide 20: Financial targets and guidelines
Financial targets and guidelines FULL YEAR FULL YEAR GUIDE- 2023 2022 LINES Average net working 17.0 21.4 20-25 Growth Margin ROCE capital as % of sales Net sales SEK 5 billion in Operating At least 15% CAPEX as % of sales 2.6 6.0 2-3 2024, equating to a margin of at least Depreciation as % 3.3 3.9
Slide 21: Our strategy
Our strategy STRONG POSITION Enhanced offering, including leadership in FSP/FSPs concept, geographical proximity to important customers, sustainability and innovation. forefront of innovation and sustainability GROWTH Net sales SEK 5 billion Organic and acquisition growth, inside and outside automot
Slide 22: In focus
In focus • Improved margins through balancing of European manufacturing capacity with customer demand. • Further develop Exim to create opportunities for growth in new customer groups. • Continue to explore potential acquisition opportunities in order to diversify sales to new customer groups, and s
Slide 23: Questions?
Questions? l\ hh A STRONGER SOLUTION