Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q3 2023 Earnings Presentation
18 slides from Bulten Ab's earnings presentation, November 2023
Slide 1: Interim Report (Q3) January-September 2023
Interim Report (Q3) January-September 2023 1
Slide 2: Agenda
Agenda • Bulten in brief • Market development • Third 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 • Manufacturing 19.9 % 1,575 • Technology and innovation Growth Employees (FTE) ••• 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 Q2 2023 Q3 2023 Q2 2023 Q3 2023 10% 10% 9,5% 7,8% 7,4% 6,8% 6,6% 5% 3,3% 5% 3,2% 2,4% 2,2% 2,0% 0% 0% -2,2% -5% -5% -10% -10% -15% -15% -14,2% 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 in order to reduce lead time for new orders. - The import of fas
Slide 6: Fastener supply constraints in Europe
Fastener supply constraints in Europe Actions taken by Bulten to increase production output: • Weekend overtime • Outsourcing of selected products in order to free up manufacturing capacity for key production volumes • Hiring and training new operators in Sweden and Poland • Installation of new equi
Slide 7: Major events in Q3
Major events in Q3 • Finalizing the closure of Gothenburg-based warehouse and moving activities to other European units • Finalizing the relocation of UK-based production from Pembroke to other plants • Large attention to improve the ongoing capacity issues in European factories that are due to heav
Slide 8: Exim & MFR Enterprise
Exim & MFR Enterprise • Based in Singapore with business in Singapore, India, Indonesia, Malaysia, Thailand, the Philippines, and Vietnam • An annual sales of about SGD 40 million (SEK 320 million) • A leading quality-assured distributor of fasteners and other C-class parts • Has a large number of c
Slide 9: Growth in sales volumes
Growth in sales volumes Q3 2023 • Group net sales - an increase of 25.9% on the same period previous year • Order bookings - an increase of 51.8% on the same period the previous year • Very strong sales growth in all sectors, but especially in the light vehicle sector 9
Slide 10: Change in R12M Sep 2022 to Sep 2023
Change in R12M Sep 2022 to Sep 2023 SEK m Net sales per customer group 2023-09-30 YTD 6 000 +1 432 SEK m Other industries outside Automotive OEM, light vehicles (+35,0%) 5 520 9,0% 5 500 +107 OEM, heavy vehicles +166 9,4% +126 5 000 Automotive suppliers 13,9% 67,7% +1 034 4 500 4 088 3 500 Sales R12
Slide 11: EBIT level
EBIT level Q3 2023 Quarter EBIT margin • EBIT SEK 31 (47) million with EBIT margin amounted Reported Adjusted for non-recurring items to 2.3% (4.3) in Q3 5% • Adjusted EBIT 36 (47) with adjusted EBIT margin 4,3% 4,3% amounted to 2.6% (4.3) in Q3 4% 3% Conclusion: 2,6% 2,3% • EBIT margin not in line
Slide 12: Earnings per share
Earnings per share Q3 R12M FY OCT 22- 2023 2022 ∆ SEP 23 2022 ∆ Net sales 1,378 1,095 25.9% 5,520 4,474 23.4% Gross profit 210 187 23 955 826 129 Earnings before depreciation (EBITDA) 77 91 -14 480 355 125 Operating earnings (EBIT) 31 47 -16 300 180 120 Operating margin, % 2.3 4.3 -2.0 5.4 4.0 1.4 A
Slide 13: Cash flow, balance sheet and net debt
Cash flow, balance sheet and net debt Q3 FULL YEAR CASH FLOW STATEMENT (MSEK) 2023 2022 2022 Cash flow from operating activities before changes in working capital 37 60 381 Cash flow from operating activities including changes in working capital 20 -27 298 Cash flow from investing activities -559 -6
Slide 14: Key indicators
Key indicators OCT 22- R12M OCT 21- FULL YEAR 2022 SEP 23 SEP 22 THE GROUP, 12 MONTHS RETURN INDICATORS Return on capital employed, % 9.1 4.5 6.3 Adjusted return on capital employed, % 9.8 7.9 9.9 Return on capital employed, (excluding financial lease) % 10.3 5.0 7.0 Adjusted return on capital emplo
Slide 15: Financial targets and guidelines
Financial targets and guidelines R12M FULL YEAR GUIDE- Q3 2023 2022 LINES Average net working 19.9 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 3.1 6.0 2-3 2024, equating to a margin of at least Depreciation as % 3.3 3.9 4-
Slide 16: In focus
In focus • Increase output from European factories to minimize risks related to capacity and delivery issues • Continue to develop Exim to create future opportunities for growth within new customer groups • Continue identification of other M&A targets for diversification of customer sectors and stre
Slide 17: 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 18: Questions?
Questions? l\ hh A STRONGER SOLUTION