Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q2 2023 Earnings Presentation
19 slides from Bulten Ab's earnings presentation, June 2023
Slide 1: Half-Year Financial Report (Q2) January-June 2023
Half-Year Financial Report (Q2) January-June 2023 1
Slide 2: Agenda
Agenda • Bulten in brief • Market development • Second quarter • In focus 2
Slide 3: Bulten in brief
Bulten in brief 4‚474 Net sales 2022 (SEK million) 180 284 Operating earnings Adjusted operating (SEK million) earnings (SEK million) 4.0 % 6.3 % Operating margin Adjusted operating margin • Headquarters 19.9 % 1,575 Growth Employees (FTE) • Manufacturing • Technology and innovation ••• Sweden – Got
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 Q1 2023 Q2 2023 Q1 2023 Q2 2023 10% 10% 8,3% 6,8% 6,9% 6,5% 5,9% 5% 4,2% 5% 4,5% 2,7% 2,8% 2,5% 0% 0% -2,5% -5% -5% -10% -10% -15% -15% -14,3% 2022 2023 2024 2025
Slide 5: Fastener supply constraints in Europe
Fastener supply constraints in Europe Background - The automotive OEMs are ramping up their production speed after a long period of supply chain disruptions. The order stock is still significant and the OEMs are pushing hard to produce to reduce lead time for new orders. - The import of fasteners fr
Slide 6: Fastener supply constraints in Europe
Fastener supply constraints in Europe Actions taken by Bulten: ▪ Outsourcing of selected products in order to free up capacity ▪ Major hiring and training of new operators in plants ▪ Investments in new equipment to increase capacity ▪ Accelerated start-up of new surface treatment plant in Poland Th
Slide 7: Raw material price development in Q2
Raw material price development in Q2 Steel – wire rod Wire rod prices have remained stable and DSV Index indicated decreased wire rod prices in Q2 2023 the supply situation has improved. 1 600 1 400 As the European economy remains in a slow- 1 200 down, we anticipate the supply situation to 1 000 im
Slide 8: Major events in Q2
Major events in Q2 ▪ Starting closure of Gothenburg based warehouse and moving activities to other European units ▪ Execution of relocation of UK based production from Pembroke to other plants ▪ Capacity issues in European factories due to large manufacturing volumes related to ramped up production
Slide 9: Exim & MFR Enterprise
Exim & MFR Enterprise • Established in 1982 and based in Singapore with approximately 140 employees in Singapore, India, Indonesia, Malaysia, Thailand, the Philippines, and Vietnam • A leading quality-assured distributor of fasteners and other C-class parts from more than 1,800 manufacturers and 180
Slide 10: Growth in sales volumes
Growth in sales volumes Q2 2023 • Group net sales - an increase of 40.8% on the same period last year • Sixth quarter with a net sales over SEK 1 billion • Very strong sales growth in all sectors, but especially in the light vehicle sector 10
Slide 11: Change in R12M June 2022 to June 2023
Change in R12M June 2022 to June 2023 +1 480 SEK m (+39,4%) Net sales per customer group SEK m 5 237 2023-06-30 YTD +129 5 000 +185 Other industries outside Automotive OEM, light vehicles 7,9% +121 OEM, heavy vehicles 10,0% 4 500 Automotive suppliers 13,2% +1 045 68,9% 4 000 3 757 3 500 Sales R12M O
Slide 12: EBIT level
EBIT level Q2 2023 Quarter EBIT margin • EBIT SEK 50 (41) million with EBIT margin amounted Reported Adjusted for non-recurring items to 3.5% (4.1) in Q2 5,0% • Adjusted EBIT 58 (51) with adjusted EBIT margin 5% amounted to 4.0% (5.0) in Q2 4,1% 4,0% 4% 3,5% Conclusion: 3% • EBIT margin not in line
Slide 13: Earnings per share
Earnings per share Q2 R12M FY JULY 22- 2023 2022 ∆ JUNE 23 2022 ∆ Net sales 1,416 1,006 40.8% 5,237 4,474 17.1% Gross profit 217 189 28 932 826 106 Earnings before depreciation (EBITDA) 95 84 11 494 355 139 Operating earnings (EBIT) 50 41 9 316 180 136 Operating margin, % 3.5 4.1 -0.5 6.0 4.0 2.0 Ad
Slide 14: Cash flow, balance sheet and net debt
Cash flow, balance sheet and net bebt Q2 FULL YEAR CASH FLOW STATEMENT (MSEK) 2023 2022 2022 Cash flow from operating activities before changes in working capital 31 75 381 Cash flow from operating activities including changes in working capital 46 -19 298 Cash flow from investing activities -33 -50
Slide 15: Key indicators
Key indicators JULY 22- R12M JULY 21- FULL YEAR 2022 JUNE 23 JUNE 22 THE GROUP, 12 MONTHS RETURN INDICATORS Return on capital employed, % 11.8 4.4 6.3 Adjusted return on capital employed, % 12.5 8.1 9.9 Return on capital employed, (excluding financial lease) % 13.1 4.9 7.0 Adjusted return on capital
Slide 16: Financial targets and guidelines
Financial targets and guidelines R12M FULL YEAR GUIDE- Q2 2023 2022 LINES Average net working 18.9 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 4.1 6.0 2-3 2024, equating to a margin of at least Depreciation as % 3.4 3.9 4-
Slide 17: In focus
In focus • Increase output from European factories to minimize risks related to capacity and delivery issues • Contain inventories while increasing production • Execute on operational improvements ─ Closure of manufacturing plant in Pembroke (UK) ─ Closure of warehouse in Gothenburg (SE) • Complete
Slide 18: 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 19: Questions?
Questions? l\ hh A STRONGER SOLUTION