Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q3 2024 Earnings Presentation
20 slides from Bulten Ab's earnings presentation, Oct 22, 2024
Slide 1: Interim Report Q3, 2024
Interim Report Q3, 2024 October 22 2024 1
Slide 2: Agenda
Agenda • Bulten in brief • Market development • Q3 update • In focus October 22 2024 2
Slide 3: Bulten in brief
Bulten in brief 5‚757 Net sales 2023 (SEK million) 230 243 Operating earnings Adjusted operating (SEK million) earnings (SEK million) 4.0 % 4.2 % Operating margin Adjusted operating margin 28.7 % 1,668 Growth Employees (FTE) NET SALES PER GEOGRAPHIC MARKET 5% North America 20% Asia • Countries where
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 2024 Q3 2024 Q2 2024 Q3 2024 14% 14% 13,3% 12% 12% 10,3% 10% 10% 8,8% 8% 8% 6% 6% 4% 2,6% 4% 3,1% 1,8% 1,7% 2% 2% 0% 0% -2% -0,5% -2% -2,1% -1,6% -4% -4% 2023 2
Slide 5: Group update Q3
Group update Q3 • Slightly lower automotive sales volumes in all markets • Improved operating results, a result of more stable and flexible operations • Continued cost focus, e.g. reduction in working hours and hiring freeze • Termination of non profit business • New President and CEO announced • Ax
Slide 6: Regional updates Q3 – Europe
Regional updates Q3 Europe • Large focus on cost cutting, efficiency and flexibility as well as net working capital • Sales volumes are flattening out (automotive) • Balancing insourcing/outsourcing • Growing new product areas and customer segments • Increased safety focus October 22 2024 6
Slide 7: Regional updates Q3 – Asia
Regional updates Q3 Asia • Continued strong growth in the consumer electronics sector • Growth in the electric vehicle market in China with new business awarded • Setting up a new manufacturing plant (JV) in India with the aim to start micro screw production in early 2025 • Increased quality focus O
Slide 8: Regional updates Q3 – North America
Regional updates Q3 North America • Investigating new business opportunities due to postponed customer volumes (existing automotive customer) • Completed market tests on quotes for selected part numbers and onsite audit (potential new automotive customer) October 22 2024 8
Slide 9: EXIM update Q3
EXIM update Q3 • Won project in Thailand and US for electrical component customers • Expanding VMI (Vendor Managed Inventory) parts for Singapore medical customers • Launching 3D printing services for customers’ prototyping and small batch production. Pilot orders won with Singapore oil & gas custom
Slide 10: Innovation and Technology
Innovation and Technology • Several projects in que and better availability for testing in our factories • Examples of product development, where we make our first cold forged samples: • Self locking fasteners • Self sealing fasteners • Low weight head designs • Examples of technology development, w
Slide 11: Sales volumes
Sales volumes Q3 • Group net sales of SEK 1,333 million – a decline of -3.3% vs the same period previous year • Lower demand in automotive October 22 2024 11
Slide 12: EBIT level
EBIT level Quarter EBIT margin Reported Adjusted for non-recurring items Q3 2024 8% 7,5% 7,5% • EBIT SEK 91 (31) million with EBIT margin 6,8% 6,8% 7% amounted to 6.8% (2.3) 6% • The EBIT margin has improved 5,1% 5,1% 5% compared to Q3, 2023 and last quarter 4% • Note that the EBIT is positively imp
Slide 13: Change in R12M Sep 2023 to Sep 2024
Change in R12M Sep 2023 to Sep 2024 SEK m +387 SEK m (+7,0%) 6 000 5 908 +195 5 521 +362 -193 +23 5 000 4 000 Sales R12M OEM OEM Automotive Other Sales R12M Sept 23 light veh. heavy veh. suppliers industries Sept 24 October 22 2024 13
Slide 14: Net sales per customer group – R12M
Net sales per customer group – R12M Net sales per customer group Net sales per customer group Oct 2023 – Sept 2024 Oct 2022 – Sept 2023 OEM, heavy vehicles OEM, light vehicles OEM, heavy vehicles OEM, light vehicles 9,2% 9,4% Other industries Other industries outside Automotive outside Automotive 10
Slide 15: Earnings per share
Earnings per share Q3 R12M FY OCT 2023 SEP 2024 2023 ∆ 2024 2023 ∆ Earnings per share before dilution, SEK 1.56 -1.49 3.05 7.42 4.89 2.53 Adjusted earnings per share before dilution, SEK 1.56 -1.25 2.81 7.42 5.51 1.91 October 22 2024 15
Slide 16: Cash flow and net debt
Cash flow and net debt Q3 FULL YEAR CASH FLOW STATEMENT (MSEK) 2024 2023 2023 Cash flow from operating activities including changes in working capital -61 20 353 Cash flow from investing activities -41 -559 -659 Cash flow from financing activities -91 597 203 Cash flow for the period -193 58 -103 Ca
Slide 17: Key indicators
Key indicators R12 M FULL YEAR OCT 23- OCT 22 – 2023 SEP 24 SEP 23 THE GROUP, 12 MONTHS RETURN INDICATORS Return on capital employed, % 9.8 9.1 8.1 Adjusted return on capital employed, % 9.8 9.8 8.5 Return on capital employed, (excluding financial lease), % 10.8 10.3 8.7 Adjusted return on capital e
Slide 18: Financial guidelines
Financial guidelines R12M Q3 2024 FULL YEAR 2023 GUIDELINES Average net working capital as % of sales 18.4 17.0 20-25 CAPEX as % of sales 3.1 2.6 2-3 Depreciation as % of sales (without IFRS 2.2 2.1 2-3 16) October 22 2024 18
Slide 19: In focus
In focus • Improve profitability • Take advantage of the reduced demand: • Commercial terms • Optimize manufacturing processes • Approach the right customers and segments • Larger focus on innovation & technology • Build a good foundation for next year and years ahead October 22 2024 19
Slide 20: Questions?
Questions? October 22 2024 20