Be Group Ab · OMXSTO:BEGR

Be Group Ab — Q3 2014 Earnings Presentation

22 slides from Be Group Ab's earnings presentation, October 2014

  1. Slide 1: BE Group Interim Report January–September 2014

    BE Q3 BE GROUP INTERIM REPORT JANUARY – SEPTEMBER 2014 Lars Engström, acting President and CEO Andreas Karlsson, CFO Slide 1

  2. Slide 2: Q3 – Sales in line with last year despite difficult market

    Q3 – Sales in line with last year despite difficult market Financial highlights  Net sales increased by 1%  Shipped tonnage decreased by 7%  Gross profit of SEK 120 M (121)  Operating result (EBIT) of SEK -1 M (13) Slide 2

  3. Slide 3: Market situation and operational highlights

    Market situation Operational highlights  Demand on the Swedish market was  Focus on active sales work continues weaker than expected during the third quarter  Margin improvements ongoing  Outlook in Finnish mechanical industry  Change of CEO positive but year-on-year output still negative  Gen

  4. Slide 4: Financials in detail

    FINANCIALS IN DETAIL Slide 4

  5. Slide 5: Q3 tonnage – positive development in BA Finland

    Q3 tonnage – positive development in BA Finland Tonnage (‘000 tons)  Tonnage 7% down vs Q3 2013  Sweden -10%  Finland 4%  Other Units -34%  Tonnage 12% down vs Q2 2014  Sweden -23%  Finland -6%  Other Units 4% Slide 5

  6. Slide 6: Average sales price increase driven by mix and currency effects

    Average sales price increase driven by mix and currency effects more than underlying price increases Average sales price (SEK/kg)  Q3 average sales price increased by 9% vs Q3 2013 and increased by 2% vs Q2 2014  Increase driven by:  Higher stainless steel prices  Sales mix  Currency effects Sl

  7. Slide 7: Underlying gross margin affected by under-absorption

    Underlying gross margin affected by under-absorption Overhead costs (SEK M) and margin (%)  Underlying gross margin of 12.9% (13.7)  Under-absorption in production  Production cost level adjusted to demand  Margin improvements continue to be a focus area  Sales and administration costs signific

  8. Slide 8: Sales slightly up, gross margin needs to be improved

    Sales slightly up, gross margin needs to be improved SEK M Q1 Q2 Q3 YTD Net sales 2013 1,032 1,089 916 3,037 Net sales 2014 1,003 1,027 923 2,953 Change -3% -6% +1% -3% Operating result 2013 -17 5 13 1 Inventory losses 2 3 5 10 Non-recurring items 29 - - 29 Underlying operating result 2013 14 8 18 4

  9. Slide 9: Working capital

    Working capital Cash-flow (SEK M)  Cash-flow after investments of SEK -8 M (-41)  Investments of SEK 1 M (13)  Total cash-flow of SEK -9 M (-22)  Working capital tied-up 12% (11)  Net debt of SEK 785 M (884) – gearing 104% (139) Slide 9

  10. Slide 10: Business areas status Q3 2014

    BUSINESS AREAS STATUS Q3 2014 Slide 10

  11. Slide 11: BA Sweden – Third quarter weaker than expected

    BA Sweden – Third quarter weaker than expected Sales, EBIT and uEBIT (SEK M)  Demand during quarter lower than expected before summer  Net sales decreased by 7% and tonnage decreased by 10% vs Q3 2013  EBIT of SEK 6 M (13) and uEBIT of SEK 5 M (14)  Comparison to second quarter affected by holid

  12. Slide 12: BA Finland – Sales and profit heading the right way

    BA Finland – Sales and profit heading the right way Sales, EBIT and uEBIT (SEK M)  Market demand remains below last year’s level  Net sales increased by 12% and tonnage increased by 4% compared to Q3 2013  New business compensates slow market and seasonal demand drop  EBIT of SEK 11 M (5) and uE

  13. Slide 13: Other Units – Improvement work continues

    Other Units – Improvement work continues Sales, EBIT and uEBIT (SEK M)  Net sales decreased by 10% vs Q3 2013, but increased compared to Q2  EBIT of SEK -6 M (-4), improvement vs Q2  Continued work with improving profitability in loss-making companies  Czech Republic (classified as operations fo

  14. Slide 14: Outlook

    OUTLOOK Slide 14

  15. Slide 15: Current business situation and outlook

    Current business situation and outlook  Uncertainty in the market increased  No major improvement in demand expected during fourth quarter  Steel prices are moving slightly downwards  Structural changes in the market start to give positive effects Slide 15

  16. Slide 16: Current focus areas

    Current focus areas  Build on strong position on main markets  Active sales work  Margin improvements  Cost control  Turn Other Units profitable Slide 16

  17. Slide 17: Our vision

    Our vision BE Group shall be the most: - Professional - Successful - Respected steel service company Slide 17

  18. Slide 18: Slide 18

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  19. Slide 19: Appendix Financial information

    APPENDIX FINANCIAL INFORMATION Slide 19

  20. Slide 20: Appendix: Financial summary

    Appendix: Financial summary 2013 2014 Full year Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 Tonnage 102 108 92 96 98 98 85 438 398 Net sales 1,032 1,089 916 957 1,003 1,027 923 4,634 3,994 Underlying EBIT 14 8 18 0 16 5 7 49 40 % of sales 1.4% 0.8% 2.0% 0.0% 1.6% 0.5% 0.8% 1.1% 1.0% EBIT -17 5 13 -4 12 4 -1 26 -

  21. Slide 21: Appendix: Sales per product area

    Appendix: Sales per product area Q3 – Share of total sales (MSEK) Long steel 248 258 Flat 344 steel 339 Reinforce- 46 ment 64 Stainless 176 steel 147 Aluminum 38 41 Other 71 67 0% 10% 20% 30% 40% 2014 2013 Slide 21

  22. Slide 22: Appendix: Sales per channel

    Appendix: Sales per channel Q3 – Share of total sales (MSEK) Direct 131 137 Inventory 439 455 Service 348 327 0% 10% 20% 30% 40% 50% 60% Sales outside scope of channels not included 2014 2013 Slide 22

BE Group — Q3 2014 Earnings Presentation on 6ix