Slide 1: First Quarter 2016 Earnings Conference
First Quarter 2016 Earnings Conference 28 April, 2016
Slide 2: Today’s presenters
Today’s presenters JOHAN OSKAR MENCKEL HELLSTRÖM CEO CFO Since: 2012 Since: 2011 Gränges since: 2004 22
Slide 3: Gränges is the global leader with a market share of 20%
Gränges is the global leader with a market share of 20% SHANGHAI, CHINA FINSPÅNG, SWEDEN 46% Seoul 16% New York 38% Tokyo Pune Sao P aolo Sales a nd Technical support Sales d estinations Percentage o f sales volume FY 2 015 3
Slide 4: Summary Q1 2016 – Volume growth and stable profit
Summary Q1 2016 – Volume growth and stable profit Sales volume increased by 5.7% Adjusted operating profit was unchanged at SEK 155 million Tailwind from favorable exchange rates was offset by negative price and mix effects and the aluminium premium price lag Earnings per share of SEK 1.
Slide 5: Market growth of 3% expected for full year 2016
Market growth of 3% expected for full year 2016 Light vehicle production growth (YoY) Region Q1 2016 Q2 2016 outlook FY 2016 outlook Asia +1% +6% +4% Europe +2% +4% +2% Americas 0% +2% +2% Global +1% +4% +3% Source: IHS Automotive, April 11, 2016 5
Slide 6: Europe and North America show good growth whereas sales volume in Asia remained flat
Europe and North America show good growth whereas sales volume in Asia remained flat in the first quarter Gränges sales volume (ktonnes) Asia Europe Americas +0% +3% 20.7 19.6 20.8 16.6 17.6 17.5 16.0 16.4 14.9 15.4 +32% 7.4 6.5 7.8 5.9 6.0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2015 2016 2015
Slide 7: 2020 goal and strategy
2020 goal and strategy Grow significantly above the market rate Become the market leader in all geographical regions Maintain good and sustainable profitability Increase efficiency Grow presence Drive growth through Create value from through continuous through structural innovation sustaina
Slide 8: Volume growth and stable profit in first quarter
Volume growth and stable profit in first quarter Rolling 12 months sales volume and adjusted operating profit 200 521 528 541 541 550 Adjusted operating profit (SEK million) 494 463 437 444 180 450 Sales volume (ktonnes) 401 362 374 372 371 163 163 164 166 348 160 160 160 160 161 160 158 159 350 152
Slide 9: Volume growth and stable profit in first quarter – Financial overview
Volume growth and stable profit in first quarter Financial overview SEK million Q1 Rolling 12 months 2016 2015 Change Mar 2016 Dec 2015 Change Sales volume (ktonnes) 45.1 42.7 5.7% 166.4 163.9 1.5% Net sales 1,360 1,456 -6.6% 5,398 5,494 -1.7% Adjusted operating profit1 155 155 0.3% 541 541 0.1% A
Slide 10: Net debt position (SEK million)
Net debt was SEK 316 million at the end of the first quarter Change in net debt 0 0.4 Cash flow before financing -22 0.4 206 Net debt position (SEK million) -100 -200 -154 -300 -275 -60 -14 -19 -316 -400 Net debt Adjusted Change in Other Investments FX & other Net debt Q4 2015 EBITDA work
Slide 11: Outlook
Outlook Global Light Vehicle Production is expected to grow 4.2%1 in Q2 2016 Gränges’ sales volume is expected to develop in line with the market during Q2 2016 The aluminium premium has stabilised and is not expected to have any substantial effect on profitability for the remainder of 2016
Slide 12: Summary of first quarter
Summary of first quarter A solid quarter with good sales growth and stable earnings Sales volume increased by 5.7% Adjusted operating profit stable at SEK 155 million Solid financial position Well positioned for profitable growth 12
Slide 13: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 14: GRANGES
GRANGES