Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q3 2020 Earnings Presentation
22 slides from Bulten Ab's earnings presentation, Oct 22, 2020
Slide 1: Nine Months Report, Jan-Sep 2020
NINE MONTHS REPORT, JAN-SEP 2020 22 OCTOBER 2020, AT 15.30 CET
Slide 2: Telephone/audio conference and presenters
SIX MONTHS REPORT, JAN‐JUNE 2020 Telephone/audio conference 22 Direct Link Audiocast: October 2020, at 15.30 CET https://tv.streamfabriken.com/bulten‐q3‐2020 Presented by: Call in to teleconference: – Anders Nyström, President and CEO SE: +46850558352 UK: +443333009267 – Claes Lundqvist, actin
Slide 3: Agenda
AGENDA 1. Bulten in brief 2. Market development 3. Third quarter 2020 4. In focus 2020
Slide 4: Strong customer base and relationships with major vehicle OEMs as well as Tier 1 suppliers
Strong customer base and relationships with major vehicle OEMs as well as Tier 1 suppliers Heavy Vehicle OEM’s Other Akcom Jabil AB Volvo Renault Garmin Miele Mack Scania GE Mindary MAN UD Trucks Foxconn Philips 5% Hitachi Sony 9% Honeywell TE Suppliers Autoliv Lear Corporation Aisin Magna Light veh
Slide 5: Strong geographical footprint
Strong position STRONG GEOGRAPHICAL FOOTPRINT SWEDEN Gothenburg, Arendal, Hallstahammar Production Head office ‐ Gothenburg Sales Development GREAT BRITAIN Pembroke and Scunthorpe USA Streetsboro, Ohio POLAND Bielsko‐Biala GERMANY RUSSIA CHINA TAIWAN Bergkamen LOGISTICS CENTERS Nizhny Novgorod Tianj
Slide 6: Stronger 24 Bulten strategy
Stronger 24 Bulten strategy Strong financial Strong position Growth Margin expansion platform FSP concept Organic growth Acquisition synergies Financial leverage continued One of the few players that Leveraging strong position and ramp‐up of existing distribution of dividends offers complete service
Slide 7: 2. Market development
2. MARKET DEVELOPMENT
Slide 8: LMC Automotive short-term market view
LMC AUTOMOTIVE SHORT‐TERM MARKET VIEW LMC Automotive estimates of global automotive production, FY 2020 – Stabilized forecast situation in Q3 compared to Q2 – – Production of LV in 2020 estimated down by 16.7% Production of HCV (>15 t) in 2020 estimated down by 21.1% ‐19% – For Bulten’s mix toward
Slide 9: LMC Automotive long-term view for global production
LMC AUTOMOTIVE LONG‐TERM VIEW FOR GLOBAL PRODUCTION GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES HEAVY COMMERCIAL VEHICLES (>15T) 20% 14,4% 35% 15% 10% 6,8% 25% 4,0% 11,0% 9,4% 5% 15% 4,8% 5,3% 0% 5% ‐5% -1,0% -5,6% ‐5% ‐10% -3,3% ‐15% ‐15%
Slide 10: 3. Third quarter 2020
3. THIRD QUARTER 2020
Slide 11: Events during Q3 2020
EVENTS DURING Q3 2020 After a slow start in Q3 volumes increased at the end of August and in September – Automotive industry recovery – Ramp up of new contracts and PSM acquisition Bulten signed a new full‐service contract (FSP) in July, with an annual value of approximately EUR 60 million at fu
Slide 12: Bulten awarded a new FSP contract
BULTEN AWARDED A NEW FSP CONTRACT Bulten awarded an FSP contract for supply of FROM COMPLEX AND TIME CONSUMING fasteners to a European automotive TO ONE POINT OF CONTACT manufacturer for two assembly plants Supplier Takeover of existing FSP from a competitor, deliveries started immediately (July
Slide 13: Group summary Q3 2020
GROUP SUMMARY Q3 2020 Q3 JAN ‐ SEP LTM FY FINANCIAL SUMMARY OCT 19‐ 2020 2019 ∆ 2020 2019 2019 ∆ SEP 20 Net sales 853 718 18.8% 2,115 2,309 ‐8.4% 2,899 3,093 ‐6.3% Gross profit 161 106 55 355 394 ‐39 504 543 ‐39 Earnings before depreciation (EBITDA) 80 29 51 145 174 ‐29 210 239 ‐21 Operating earning
Slide 14: Sales: positive market development and ramp up of new contracts
SALES: POSITIVE MARKET DEVELOPMENT AND RAMP UP OF NEW CONTRACTS Sales 853 MSEK (718), up 18.8% in Q3 vs last year – 117 MSEK of sales is attributable to PSM Order bookings 1322 MSEK (776), up 70% in Q3 vs last year – Due to new contracts, positive market development and pent‐up demand – 113 MSEK
Slide 15: EBIT: higher volumes affected margins
EBIT: HIGER VOLUMES AFFECTED MARGINS Quarter EBIT SEK 40 million with EBIT margin rising to 4.7% (‐1.0) in Q3 – Volumes and production affected profitability positively mainly in September, but low in July and partly August – Government support 8 MSEK related to pandemic. No lay‐offs as from Octob
Slide 16: Cash flow, balance sheet and net debt
CASH FLOW, BALANCE SHEET AND NET DEBT Q3 JAN – SEP FY CASH FLOW STATEMENT (MSEK) 2020 2019 2020 2019 2019 Cash flow from operating activities before changes in working capital 75 38 113 143 177 Cash flow from operating activities including changes in working capital 157 114 271 109 207 Cash flow fro
Slide 17: Key indicators
KEY INDICATORS LTM FULL YEAR THE GROUP, 12 MONTHS OCT 19‐SEP 20 OCT 18‐SEP 19 2019 RETURN INDICATORS Return on capital employed, % 2.5 6.4 5.5 Adjusted Return on capital employed, % 3.1 8.3 8.1 Return on capital employed, (excluding financial lease) % 2.6 6.8 5.8 Adjusted Return on capital employed,
Slide 18: Financial targets and guidelines
FINANCIAL TARGETS AND GUIDELINES Growth Margin ROCE Net sales SEK 5 billion in Operating At least 15%. 2024, equating to a margin of at compound annual growth least 8%. FULL YEAR GUIDE‐ rate (CAGR) of 10%. RTM 2019 LINES . Q3 RTM Q3 RTM Q3 RTM Average net working 27.1 25.5 20‐25 capital as % of sale
Slide 19: 4. In focus 2020
4. IN FOCUS 2020
Slide 20: Predicted stronger Bulten growth vs the market
PREDICTED STRONGER BULTEN GROWTH VS THE MARKET Covid‐19 Future contracts Existing contracts & sales growth + Ramp up of new contracts 2020 + Signed not yet started contracts, + and increased ‐ Market volatility = Bulten growth Expected annual sales 2019 an onwards end of 2019 delivery value in + and
Slide 21: In focus 2020
IN FOCUS 2020 Closely monitor current situation in the industry and pandemic effects Continue strict cost and cash flow control Continue efficient ramp‐ups Capture PSM synergies Increase innovation and sustainability activities Execute Stronger 24 strategy NINE MONTHS REPORT, JAN‐SEP 202
Slide 22: Bulten - a stronger solution
BULTEN ‐ A STRONGER SOLUTION