Be Group Ab · OMXSTO:BEGR

Be Group Ab — Q4 2013 Earnings Presentation

25 slides from Be Group Ab's earnings presentation, February 2014

  1. Slide 1: BE Group Year-End Report 2013

    BE Q4 Q BE GROUP YEAR-END REPORT 2013 Kimmo Väkiparta, President and CEO Torbjörn Clementz, Clementz CFO and Executive Vice President Slide 1

  2. Slide 2: Q4 – Better result than last year

    Q4 – Better result than last year Financial highlights  Shipped tonnage decreased 2%  Net sales decrease of 4%  Operating result of SEK -4 M (-42)  Underlying operating result of SEK 0 M (-33)  Nooddividend de d will be papaid d  Resolution on a fully secured rights issue of SEK 160 M. Require

  3. Slide 3: Market situation and operational highlights

    Market situation Operational highlights  The bottom of the cycle is behind us  Reduction of personnel finalized according to plan  Demand on post-summer level with substantial seasonality effect in  Continued impact from own efficiency December work and initiatives  Similar pattern in engineeri

  4. Slide 4: Financials in detail

    FINANCIALS IN DETAIL Slide 4

  5. Slide 5: Rights issue and new financing agreement

    Rights issue and new financing agreement Rights issue New financing agreement  Board of Directors has resolved on a  New three-year three year credit agreement rights issue of SEK 160 M signed with existing banks  Fully secured  Total facility SEK 1,250 M  Requires R i approvall ffrom E Extraor

  6. Slide 6: Seasonal impact during end of Q4

    Seasonal impact during end of Q4 Tonnage (‘000 tons) 125 500 125 117 100 114 108 400  Tonnage 2% down vs last year 98 98 102 96  Sweden -16% 92  Finland +7% 75 300  Other Units +19% 50 200  Long L vacation ti period i d around d year- end 25 100 0 0 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3

  7. Slide 7: Price sentiment becoming more stable

    Price sentiment becoming more stable Average sales price (SEK/kg) 11,50 11,00 11,31  Q4 average sales price (excl. 10,94 currency effects) decreased by 10,50 10,71 3% vs Q4 2012 and was largely 10,36 unchanged vs Q3 2013 , 10,25 10 00 10,00 10 15 10,15 10,04 9,93 10,05  Reported increase in Q4 mai

  8. Slide 8: Significantly improved EBIT result compared to Q4 2012

    Significantly improved EBIT result compared to Q4 2012 Sales EBIT and uEBIT (SEK M) Sales, 1 400 60 1 200 1 288 1 343 1 273  Net sales 4% down 1 000  Tonnage -2% 1 020 998 1 032 1 089 40  Price/mix -3% 3% 800 916 957  Currency +1% 600 400 20  Gross margin improvements 200 Sales EBIT 0 0 -200 20

  9. Slide 9: Q4 – EBIT above last year

    Q4 – EBIT above last year Q4 Q4 Change Q3 SEK M 2013 2012 2013 Net sales 957 998 -41 916 Underlying EBIT 0 -33 33 33 18 % of Sales 0.0% -3,3% 3.3% 2.0% Inventory gains/losses -4 -9 5 -5 Non-recurring items 0 0 0 - EBIT -4 -42 38 13 % of Sales -0.4% -4.2% 3.8% 1.4% Earnings before tax -20 -50 30 2 Ea

  10. Slide 10: FY 2013 – Weak demand compensated by lower costs

    FY 2013 – Weak demand compensated by lower costs SEK M 2013 2012 Change Net sales 3,994 4,634 -640 U d l i EBIT Underlying 40 49 -9 9 % of Sales 1.0% 1.1% -0.1% Inventory gains/losses -14 -23 9 Non-recurring items -29 0 -29 EBIT -3 26 -29 % of Sales -0.1% 0.6% -0.7% Earnings before tax -56 -13 -43 a

  11. Slide 11: Working capital in good control

    Working capital in good control Cash flow (SEK M) Cash-flow 150  Cash-flow from operating activities 125 SEK 42 M (97) 100  Investments of SEK 6 M (14) 75  Working capital tied-up 10% (10) 50 25  Net debt of SEK 851 M (779) – 0 gearing 136% (116) -25  Rights issue will strengthen the -50 balanc

  12. Slide 12: Business areas status Q4 2013

    BUSINESS AREAS STATUS Q4 2013 Slide 12

  13. Slide 13: BA Sweden – EBIT above last year despite lower sales

    BA Sweden – EBIT above last year despite lower sales Sales, EBIT and uEBIT (SEK M) 600 20  Demand on post-summer level with 500 533 substantial downturn in December 513 496 15 400 415 445  Prices slightly up vs Q4 last year 300 10  Net sales decreased by 13% and tonnage 200 Sales decreased byy 16

  14. Slide 14: BA Finland – Increased tonnage and lower costs

    BA Finland – Increased tonnage and lower costs Sales, EBIT and uEBIT (SEK M) 500 20  Demand somewhat down vs Q3 and 400 426 430 15 weak ending of the year 377 382 381 300 200 10  Net sales increased by 1% and tonnage 5 increased by 7% vs Q4 last year 100 Sales BIT 0 0  Sales prices (excl. (excl c

  15. Slide 15: Other Units – Heading in the right direction

    Other Units – Heading in the right direction Sales, EBIT and uEBIT (SEK M) 200 20  Net sales increased by 17% and tonnage 150 15 increased byy 19% vs Q4 last y year 151 148 141 100 127 129 10  EBIT of SEK -5 M (-18), mainly from BE Group Produktion and Poland 50 5  Continued work with improving S

  16. Slide 16: Outlook

    OUTLOOK Slide 16

  17. Slide 17: Current business situation and outlook

    Current business situation and outlook  Recovery in demand expected during 2014  Customers are currently expressing positive views  Implemented efficiency improvements will continue to strengthen our competitiveness  Rights g issue will strengthen g the Group’s p financial p position Slide 17

  18. Slide 18: Current focus areas

    Current focus areas  Actions ongoing in order to generate growth with customer and supplier cooperation  Improve capacity utilization  Improve p cost control even more  Efficient working capital utilization  Improve earnings in Other Units from currentt platform l tf Slide 18

  19. Slide 19: Our vision

    Our vision BE Group shall be the most: - Professional - Successful S f l - Respected p steel service company Slide 19

  20. Slide 20: Slide 20

    Slide 20

  21. Slide 21: Appendix financial information

    APPENDIX FINANCIAL INFORMATION Slide 21

  22. Slide 22: Appendix: Financial summary

    Appendix: Financial summary 2012 2013 Full year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 Tonnage 125 117 98 98 102 108 92 96 438 398 Net Sales 1,343 1,273 1,020 998 1,032 1,089 916 957 4,634 3,994 Underlying EBIT 51 16 15 -33 14 8 18 0 49 40 % of Sales 3.8% 1.2% 1.5% -3.3% 1.4% 0.8% 2.0% 0.0% 1.1% 1.0% EBI

  23. Slide 23: Appendix: Sales per customer segment

    Appendix: Sales per customer segment Q4 – Share of total sales (MSEK) OEM & 49% partners 47% Project 20% 24% Pre- 21% processing 19% Retail 10% 10% 0% 10% 20% 30% 40% 50% 60% 2013 2012 Slide 23

  24. Slide 24: Appendix: Sales per product area

    Appendix: Sales per product area Q4 – Share of total sales (MSEK) Long steel 272 274 Flat 357 steel 323 Reinforce- 68 ment 118 Stainless 150 steel 171 Aluminum 42 47 Other 68 65 % 0% 10% % 20% % 30% % 40% % 2013 2012 Slide 24

  25. Slide 25: Appendix: Sales per channel

    Appendix: Sales per channel Q4 – Share of total sales (MSEK) Direct 166 202 Inventory y 439 481 Service 352 315 0% 10% 20% 30% 40% 50% 60% Sales outside scope of channels not included 2013 2012 Slide 25

BE Group — Q4 2013 Earnings Presentation on 6ix