Slide 1: Second Quarter 2015 Earnings Conference
Second Quarter 2015 Earnings Conference July 21, 2015
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% FINSPÅNG, SHANGHAI, SWEDEN CHINA 47% New York 38% Tokyo 15% Seoul Pune Sao P aolo Sales a nd Technical support Sales d estinations Percentage o f sales volume H1 2 015 3
Slide 4: Summary Q2 2015 – Earnings at new high, while Asia is slowing down
Summary Q2 2015 – Earnings at new high, while Asia is slowing down Sales volume increased by 4% driven by Europe and Americas Adjusted operating profit improved by 21% to SEK 158 million Tailwind from favourable exchange rates partly offset by price lag on aluminium premiums Earnings per
Slide 5: Modest market growth expected for full year 2015
Modest market growth expected for full year 2015 Light vehicle production growth (YoY) Region Q2 2015 H1 2015 H2 2015 outlook FY 2015 outlook Asia -2% ±0 % +2% +1% Europe +1% +2% +2% +2% Americas -1% -1% +1% ±0% Global ±0 % +1% +2% +2% Source: IHS Automotive, July 16, 2015 5
Slide 6: Good volume growth in Europe while Asia is slowing down
Good volume growth in Europe while Asia is slowing down Gränges sales volume (ktonnes) Asia Europe Americas -7% 21.1 +9% 20.7 19.6 19.1 18.8 15.0 16.0 16.4 14.0 13.6 +31% 6.2 5.9 7.4 5.7 5.2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2014 2015 2014 2015 2014 2015 Reversal of inventory build-u
Slide 7: Continued positive earnings trend in second quarter
Continued positive earnings trend in second quarter Rolling 12 months sales volume and adjusted operating profit 200 521 550 494 Adjusted operating profit (SEK million) 463 437 444 180 450 401 Sales volume (ktonnes) 362 374 372 371 348 161 163 160 160 160 160 160 158 159 350 154 155 149 148 152 147
Slide 8: Increased sales volume and earnings
Increased sales volume and earnings Financial overview SEK million Q2 January - June 2015 2014 Change 2015 2014 Change Sales volume (ktonnes) 43.4 41.7 4.0% 86.1 83.1 3.7% Net sales 1,506 1,176 28.0% 2,962 2,333 26.9% Adjusted operating profit1 158 130 21.2% 313 254 22.9% Adjusted operating margin
Slide 9: Net debt position (SEK million)
Net debt was SEK 725 million at the end of second quarter Change in net debt 0 1.1 1.0 Net debt position (SEK million) -200 Cash flow before financing SEK 175 million -400 -600 37 -34 -37 -112 -12 -725 -800 -775 210 -1 000 Net Adjusted Change in Other Invest- FY 2014 FX & other Net debt
Slide 10: Aluminium premiums have dropped dramatically in 2015
Aluminium premiums have dropped dramatically in 2015 European aluminium premium1 600 European aluminium premium (USD per tonne) -64% 500 400 300 200 100 0 2010 2011 2012 2013 2014 2015 1. Aluminium premium, in-warehouse Rotterdam duty-paid. Source: Metal Bulletin 10
Slide 11: Outlook
Outlook We aim to further strengthen our leading global position and continue to grow with good profitability IHS forecasts global light vehicle production to grow by 2% in the second half of the year as well as in the full year of 2015 In the third quarter sales volume in Asia is expected
Slide 12: Summary of second quarter
Summary of second quarter Continued positive development – Q2 the best quarter so far Sales volume increased by 4% Adjusted operating profit rose by 21% to SEK 158 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 4