Granges Ab · OMXSTO:GRNG

Granges Ab — Q3 2017 Earnings Presentation

15 slides from Granges Ab's earnings presentation, Oct 26, 2017

1. Slide 1: Third Quarter 2017 Earnings Conference

   Third Quarter 2017 Earnings Conference 26 October, 2017

2. Slide 2: Today's presenters

   Today’s presenters JOHAN OSKAR MENCKEL HELLSTRÖM CEO CFO Since: 2012 Since: 2011 Gränges since: 2004 22

3. Slide 3: Gränges Group

   Gränges Group • A global leader in the market for rolled products for aluminium heat exchangers • Production in Sweden, China and in the US • R&I centres in Sweden and China • Headquarter in Stockholm • Gränges is represented all over the world • 1,600 employees • Net sales of SEK 11 billion and ope

4. Slide 4: Third quarter 2017 – Strong demand in all regions

   Third quarter 2017 – Strong demand in all regions — Several important steps taken in our strategic growth plan — Sales volume increased by 48% to 93 ktonnes — Adjusted operating profit increased to SEK 227 million — Cash flow before financing increased to SEK 148 million — Net debt of 1.7 x EBITDA 4

5. Slide 5: Gränges will invest USD 110 million to expand Huntingdon plant

   Gränges will invest USD 110 million to expand capacity and capabilities in the Huntingdon plant — Investment in Huntingdon, Tennessee to meet growing demand for Auto HEX, HVAC, and light gauge foil — Huntingdon production capacity will increase from 160 to 200 ktonnes — The expansion will create 85

6. Slide 6: Investment in advanced spray-forming production provides opportunities within Active Brazing

   Investment in advanced spray-forming production provides opportunities to expand within Active Brazing — Investment together with Erbslöh Aluminium to secure: – Competence for spray-forming of aluminium billets – Supply chain for next generation of materials for brazed heat exchangers — Gränges inve

7. Slide 7: Market growth of 2% expected for full year 2017

   Market growth of 2% expected for full year 2017 Light vehicle production growth (YoY) Region Q3 2017 Q4 2017 outlook FY 2017 outlook Asia +3% -2% +2% Europe 5% +6% +3% Americas -4% -1% ±0% Global +2% ±0% +2% Source: IHS Automotive, September 18, 2017 7

8. Slide 8: Strong demand across all regions

   Strong demand across all regions Gränges sales volume (ktonnes) Asia Europe Americas +97% +9% +3% 55,3 58,5 56,8 22,7 22,3 48,8 19,0 20,7 20,7 16,9 17,9 15,0 15,2 15,5 28,9 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2016 2017 2016 2017 2016 2017 — Continued strong sales to — Growth in automotive h

9. Slide 9: Positive trend continues in third quarter

   Positive trend continues in third quarter and is further strengthened by the US acquisition Rolling 12 months sales volume and adjusted operating profit 400 925 1000 879 Adjusted operating profit (SEK million) 350 769 800 687 Sales volume (ktonnes) 632 300 563 521 528 541 541 600 494 250 437 444 463

10. Slide 10: Continued strong growth and profitability in third quarter

    Continued strong growth and profitability in third quarter Financial overview SEK million Q3 January - September 2017 2016 Change 2017 2016 Change Sales volume (ktonnes) 93.0 62.8 48.0% 286.5 154.4 85.5% Net sales 2,728 1,859 46.7% 8,701 4,662 86.7% Adjusted operating profit1 227 181 25.1% 754 516 4

11. Slide 11: Net debt was SEK 2.3 billion at the end of third quarter

    Net debt was SEK 2.3 billion at the end of third quarter Change in net debt -2 000 MSEK 1.9 1.7 Cash flow before financing SEK 148 million -2 100 -2 200 -42 -46 -2 300 -2 280 -74 54 -2 400 -2 500 -2 481 309 -2 600 Net Debt Adjusted Change in Other Investments & FX & Other Net Debt 30 Jun EBITDA work

12. Slide 12: Outlook

    Outlook — Global Light Vehicle Production is expected to remain stable in the fourth quarter – for the full year 2017 a growth of 2% is projected1 — Automotive HEX – lower sales volume is expected in Asia and the Americas, while growth in Europe is projected to be in line with the market rate in fou

13. Slide 13: Summary of third quarter

    Summary of third quarter — Strong demand in all regions — Acquired business in the US is performing very well — Sales volume 93.0 ktonnes — Adjusted operating profit rose to SEK 227 million — Net debt of 1.7 x EBITDA — Several important steps taken in strategic growth plan 13

14. Slide 14: Q&A

    Q&A Johan Menckel, CEO Oskar Hellström, CFO

15. Slide 15: GRANGES

    GRANGES

Gränges — Q3 2017 Earnings Presentation on 6ix