Slide 1: Q1 Report – Discovering the Next Solution
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T
Slide 2: Q1 Report
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T
Slide 3: First quarter highlights
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T First quarter highlights Erik Lundén President & CEO
Slide 4: First quarter highlights – a good start of the year
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T First quarter highlights – a good 2 500 2 386 2 149 2 184 start of the year 2 000 1 500 1 000 • Positive sales growth of 1.6% after several quarters of negative growth 500 • Organic growth of -0.1%, an improvement over Q4 0 Q1 Q2 Q3
Slide 5: Financial Highlights
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Financial Highlights Pär Ihrskog CFO
Slide 6: Positive sales growth of 1.6% after several quarters of negative growth
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Positive sales growth of 1.6% after several quarters of negative growth Net Sales by quarter Organic growth +1,6% 2 184 2 500 2 149 2 142 2 184 2 000 1 880 1 863 1,1% 2 149 1 500 -0,1% 0,6% 1 000 500 0 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25
Slide 7: Improved gross margin by 1.2 pp driven by our trading business
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Improved gross margin by 1.2 pp driven by our trading business Gross Profit Margin EBITA adjusted and EBITA margin adjusted 400 16 +1,2 14 35 12,2% 12,7% 12,7% 29,8% 30,6% 29,7% 30,3% 300 12,1% 30 29,1% 10,8% 12 25 200 10 20 15 259
Slide 8: The underlying cost level lower than last year when adjusted for one-offs
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T The underlying cost level lower than last year when adjusted for one-offs, restructuring costs and currency effects Operating expenses • Higher level of operating expenses vs Q1 2024 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 -400 -376 -376 -376
Slide 9: Cash flow from operations lower than last year due to lower inventory reduction
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Cash flow from operations lower than last year due to the lower inventory reduction compared to Q1 2024 Cash flow from operating activities, MSEK Cash flow from operating activities, MSEK 1,0 427 450 259 32 -58 0,9 400 0,8 350 322 -
Slide 10: Net debt reduced to previous quarter; Net debt/EBITDA was 2.5
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Net debt reduced to previous quarter mainly due to reduction of loans. Net debt/EBITDA was 2.5 Net Debt, MSEK Leverage Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 2,9 2,8 2,8 2,7 2,7 2,7 2,6 2,5 2,4 1 852 1 981 Net Fin debt 2 187 2 212 2 162 515
Slide 11: Regional highlights
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Regional highlights Erik Lundén President & CEO
Slide 12: Region Europe North & East
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T 968 Region 1 000 868 772 Europe North & East 750 500 • Total growth was -11.0% and organic growth was 0.8% 250 • Bufab Finland noted continued weak development, while 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Bufab Poland saw improved demand 202
Slide 13: Region Europe West
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Region 750 601 Europe West 600 546 490 450 • Total growth amounted to 22.7% and the organic 300 growth was -2.3% 150 • The organic growth decrease is due to lower activity 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 levels in the automotive and co
Slide 14: Region Americas
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Region 400 315 Americas 300 278 274 200 • Total growth amounted to -1.5% and the organic growth was -4.2% 100 0 • Demand was stable for the important RV and trailer Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 market, but low demand was noted in the
Slide 15: Region UK & Ireland
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Region 450 427 398 400 UK & Ireland 300 • Total growth amounted to 0.4% and the organic 150 growth was -1.7% • Lower market prices in mainly Apex and low 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 demand from the manufacturing industry 2023 2024
Slide 16: Region Asia-Pacific
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Region 160 131 138 Asia-Pacific 120 116 80 • Total growth amounted to 19.0% and the organic 40 growth was 17.2% 0 • Strong demand in all companies, led by Bufab Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Shanghai 2023 2024 2025 Net Sales, MSEK • Gr
Slide 17: US business & impact from tariffs
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T US business & impact from tariffs Erik Lundén President & CEO
Slide 18: Our US business and impact from US tariffs
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Our US business and impact from US tariffs Our US business Impact from US tariffs Mitigating actions • Two niche companies: American • ABS source ~ 38% and CSG ~ 8% • Price increases passed on to Bolt & Screw and Component from Chin
Slide 19: Summary, Outlook & Priorities
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Summary, Outlook & Priorities Erik Lundén President & CEO
Slide 20: Summary, Outlook & Priorities
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Summary, Outlook & Priorities • Improved gross margin and operating margin, and the organic growth continues to strengthen • Several measures to reduce the cost base have been implemented and more to come, will give effect in 2025/2
Slide 21: Q&A
D I S C O V E R I N G T H E N E X T S O L U T I O N Q 1 R E P O R T Q&A