Slide 1: First Quarter 2018 Earnings Conference
First Quarter 2018 Earnings Conference 26 April, 2018
Slide 2: Today's presenters
Today’s presenters JOHAN OSKAR MENCKEL HELLSTRÖM CEO CFO Since: 2012 Since: 2011 Gränges since: 2004 2
Slide 3: Gränges today
Gränges today ○ 1,600 employees ○ Listed on Nasdaq Stockholm ○ Net sales of SEK11 billion ○ Production capacity of 420,000 20% Global market share in rolled products for brazed aluminium metric tonnes heat exchangers ○ Adjusted operating profit of SEK 933 million 3
Slide 4: First quarter 2018 – improved performance contributed to higher profit
First quarter 2018 – improved performance contributed to higher profit ○ Sales volume increased by 0.3% to 95.0 ktonnes ○ Adjusted operating profit increased by 18.7% to SEK 282 million ○ Profit for the period rose to SEK 167 million ○ Cash flow before financing was SEK 192 million ○ Net debt of 1.8
Slide 5: Market growth of 2% expected for full year 2018
Market growth of 2% expected for full year 2018 Light vehicle production growth (YoY) Region Q1 2018 Q2 2018 outlook FY 2018 outlook Asia -2% +5% +1% Europe +1% +5% +3% Americas -1% +6% +4% Global -1% +5% +2% Source: IHS Automotive, 16 March 2018 5
Slide 6: Stable volume development in the first quarter
Stable volume development in the first quarter Gränges sales volume (ktonnes) Asia Europe Americas -1% +1% +2% 23,0 55,3 58,5 56,8 54,8 22,7 22,3 20,7 20,6 50,6 16,9 17,9 17,2 15,5 15,4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2017 2018 2017 2018 2017 2018 ○ Good growth in commercial ◦ Growth in
Slide 7: Sales of Gränges TRILLIUM technology to be ramped up in 2018-19
Sales of Gränges TRILLIUM® technology to be ramped up in 2018-19 ○ Successful customer trials now turning into real orders ○ Discussions with several large European car brands for battery cooling plate material ○ TRILLIUM® expected to be a significant share of European sales volume in 3-5 years 7
Slide 8: The positive earnings trend continued in the first quarter
The positive earnings trend continued in the first quarter Rolling 12 months sales volume and adjusted operating profit 450 1100 977 925 933 Adjusted operating profit (SEK million) 400 879 900 769 Sales volume (ktonnes) 350 687 632 700 300 521 528 541 541 563 494 437 444 463 500 250 374 348 372 371
Slide 9: Improved performance contributed to higher profit
Improved performance contributed to higher profit Financial overview SEK million Q1 Rolling 12 months 2018 2017 Change Mar 2018 Dec 2017 Change Sales volume (ktonnes) 95.0 94.8 0.3% 373.2 373.0 0.1% Net sales 3,071 2,892 6.2% 11,614 11,435 1.6% Adjusted operating profit1 282 237 18.7% 977 933 4.8% A
Slide 10: Net debt was SEK 2.4 billion at the end of first quarter
Net debt was SEK 2.4 billion at the end of first quarter Change in net debt -1 800 1.8 Cash flow before financing SEK 192 million 1.8 -1 900 -2 000 -55 -15 SEK million -2 100 -123 21 -2 200 -2 300 -2 292 364 -2 400 -253 -2 353 -2 500 Net debt Adjusted Change in Other Investments Acquisitions FX & Ne
Slide 11: Increased uncertainty in the aluminium market following imposed US trade tariffs and sanctions
Increased uncertainty in the aluminium market following imposed US trade tariffs and sanctions ○ US section 232 – General tariffs of 10% on all aluminium imports – Final framework and exemptions to be decided ○ US sanctions against Rusal – Prohibiting US persons and limiting non-US persons to transa
Slide 12: Outlook
Outlook ○ Global Light Vehicle Production is expected to increase 5% during second quarter – for the full year 2018 a growth of 2% is projected1 ○ Gränges outlook for the second quarter is a lower growth rate than what IHS currently is expecting for automotive ○ HVAC & Others in the US is estimated
Slide 13: Summary of first quarter 2018
Summary of first quarter 2018 ○ Higher growth than the market in automotive in all regions ○ Sales volume was stable at 95.0 ktonnes ○ Strong demand in the US, still limited by capacity constrains ○ Adjusted operating profit rose to SEK 282 million ○ Net debt of 1.8 x adjusted EBITDA 13
Slide 14: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 15: Slide 15