Slide 1: First Quarter 2019 Earnings Conference
First Quarter 2019 Earnings Conference 26 April, 2019
Slide 2: Today's presenters
Today’s presenters JOHAN OSKAR MENCKEL HELLSTRÖM CEO CFO Since: 2012 Since: 2011 Gränges since: 2004 2
Slide 3: First quarter 2019: Stable operating profit in softening market conditions
First quarter 2019 Stable operating profit in softening market conditions ○ Softer market conditions continuing – Lower demand from automotive customers – Sales volume declined by 4% ○ Stable operating profit – Adjusted operating profit SEK 275 million – Supported by price increases and FX ○ Expansi
Slide 4: Light vehicle production declined by 6% in first quarter
Light vehicle production declined by 6% in first quarter End market production growth (YoY) End market Automotive HVAC Region Global Asia Europe Americas Americas Q1 2019 -6% -7% -5% -1% +5% Q2 2019 -3% -2% -6% +1% Full year 2019 ±0% +1% -2% ±0% +5% Source: Automotive light vehicle production - IHS
Slide 5: Sales volume decreased by 4% in first quarter – Asian automotive market especially challenging
Sales volume decreased by 4% in first quarter – Asian automotive market especially challenging Gränges sales volume (ktonnes) Asia Europe Americas Gränges Group -13% -4% -1% -4% 23,0 54,8 54,4 95,0 90,8 20,0 17,2 16,5 46,2 45,9 46,2 45,9 48,9 45,0 8,7 8,5 2018 2019 2018 2019 2018 2019 2018 2019 ○ De
Slide 6: Clear sustainability targets for 2025 show our ambitions
Clear sustainability targets for 2025 show our ambitions ETHICAL BUSINESS RESPONSIBLE AND SUSTAINABLE DIVERSE AND HIGH- SUSTAINABLE PRACTICES SUSTAINABLE SOURCING OPERATIONS PERFORMING TEAMS PRODUCT OFFERING ○ 100% of employees ○ 100% of the purchase ○ 3.0 recordable ○ 100% of employees ○ 80% of Grä
Slide 7: Lower sales volume but stable margins in first quarter
Lower sales volume but stable margins in first quarter Sales volume and adjusted operating profit Adjusted operating profit per tonne 500 1200 4 3,6 1005 997 Adjusted operating profit per tonne (kSEK) Adjusted operating profit (SEK million) 933 1000 400 3 Sales volume (ktonnes) 2,7 800 687 300 541 6
Slide 8: Financial overview – first quarter 2019
Financial overview – first quarter 2019 SEK million Q1 Rolling 12 months 2019 2018 Change Mar 2019 Dec 2018 Change Sales volume (ktonnes) 90.8 95.0 -4.4% 370.8 375.0 -1.1% Net sales 3,109 3,071 1.2% 12,947 12,910 0.3% Adjusted operating profit1 275 282 -2.5% 997 1,005 -0.7% Adjusted operating margin
Slide 9: Net debt was SEK 3.1 billion at the end of first quarter
Net debt was SEK 3.1 billion at the end of first quarter Change in net debt -1 000 1.8 Cash flow before financing SEK -173 million 2.2 -1 500 -2 000 SEK million -88 -17 -2 500 -2 494 382 -451 -3 000 -269 -120 -3 057 -3 500 Net debt Adjusted Change in Other Investments Leasing FX & Net debt 31 Dec EB
Slide 10: Outlook - second quarter 2019
Outlook - second quarter 2019 ○ IHS estimates that Global Light Vehicle Production will decrease by 3% in second quarter ○ Gränges expects a sales volume decline by mid-single digits in second quarter – Mid to high-single digit decline for Automotive materials on global level – Stable development fo
Slide 11: Summary - first quarter 2019
Summary - first quarter 2019 ○ Softer market conditions continuing ○ Stable operating profit ○ Expansion projects on track ○ Launch of new sustainability targets 11
Slide 12: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 13: Slide 13