Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Shareholder Meeting (April 2017)
21 slides from Bulten Ab's shareholder meeting presentation, Apr 25, 2017
Slide 1: Annual General Meeting 2017
ANNUAL GENERAL MEETING 2017 TOMMY ANDERSSON, PRESIDENT AND CEO 25 APRIL 2017
Slide 2: Bulten at a glance
BULTEN AT A GLANCE Bulten has more than 140 years of fasteners experience, started in 1873 Full Service Provider (FSP) to international automotive industry ̶ One of few players in Europe that has a proven track record and can handle complex full service contracts for the automotive industry Fo
Slide 3: A passenger car contains a total of 1,500-2,000 fasteners
A PASSENGER CAR CONTAINS A TOTAL OF 1,500‐2,000 FASTENERS Of Bulten’s sales, approximately 25% goes to powertrain and 75% to chassis The weight of The cost of Of which the cost all fasteners in a car is between all fasteners in a car is between per engine is between 20‐50 kg 70‐250 EUR 20‐40 EUR AGM
Slide 4: Strong customer base and relationships with major vehicle OEMs as well as Tier 1 suppliers
STRONG CUSTOMER BASE AND RELATIONSHIPS WITH MAJOR VEHICLE OEMS AS WELL AS TIER 1 SUPPLIERS HEAVY VEHICLES LIGHT VEHICLES 12% 78% TIER 1 10% Selection of customers. Share of Bulten’s sales YTD AGM 2017 4
Slide 5: Bulten has its strongest position in Northern Europe but will grow on emerging markets
BULTEN HAS ITS STRONGEST POSITION IN NORTHERN EUROPE BUT WILL GROW ON EMERGING MARKETS BULTEN MARKET SHARE DEVELOPMENT 17% 17% 14% 11% GEOGRAPHIC SALES DISTRIBUTION 2013 2014 2015 2016 JANUARY – MARCH 2017 Market share of total European fasteners Great Britain, 31.0% Germany, 22.0% Sweden, 15.1% 60%
Slide 6: Full Service Provider (FSP) to international automotive industry
FULL SERVICE PROVIDER (FSP) TO INTERNATIONAL AUTOMOTIVE INDUSTRY Bulten is one of few players in Europe that has a proven track record and can handle complex Reducing of intersection points full service contracts for the automotive industry Cost and capital Complete responsibility effective thro
Slide 7: Lower in place cost (IPC) with smart technologies
LOWER IN PLACE COST (IPC) WITH SMART TECHNOLOGIES IPC EQUALS THE TOTAL COST, Bulten’s advanced technology aim to THE SO CALLED IN PLACE COST optimize the total cost (IPC) for the customer Cost profile for a fastener The cost of the physical fastener normally 15% • Fastener cost amounts to 15% of
Slide 8: Predicted stronger Bulten growth vs the market
PREDICTED STRONGER BULTEN GROWTH VS THE MARKET Existing Ramp up of New signed Market Bulten contracts & new not yet Future volatility growth market contracts started contracts and model late 2017 growth contracts ? shifts and onward Market growth according to LMC Automotive 1.9% 2017. Market share
Slide 9: Lean and well positioned logistics and manufacturing footprint and flexible supply chain
BULTEN HAS A LEAN AND WELL POSITIONED LOGISTICS AND MANUFACTURING FOOTPRINT AND FLEXIBLE SUPPLY CHAIN LEAN AND WELL POSITIONED LOGISTICS AND IN‐HOUSE VS. TRADING MANUFACTURING FACILITIES (SALES VALUE) LOGISTICS 2% HEAD OFFICE PRODUCTION IN‐HOUSE SA
Slide 10: Production process
PRODUCTION PROCESS 6. HEAT TREATMENT 8. SURFACE TREAMENT 5. THREADING 7. QUALITY ASSURANCE 9. INSPECTION 10. PACKING 3. MATERIAL 11. SHIPPING 4. COLD FORGING 2. TOOLING 1. ENGINEERING AGM 2017 10
Slide 11: Bulten's overall sustainability objective
BULTEN’S OVERALL SUSTAINABILITY OBJECTIVE IS THAT IT SHOULD BE A NATURAL PART OF ALL ACTIVITIES THROUGHOUT THE GROUP Social responsibility ̶ Consideration to human rights ̶ Treat people with respect an good ethics ̶ Work methods based on core values Corporate governance ̶ High business ethics, g
Slide 12: Increased recognition in the area of electric cars and sustainable development
INCREASED RECOGNITION IN THE AREA OF ELECTRIC CARS AND BULTEN AS A CONTRIBUTOR IN THE SUSTAINABLE DEVELOPMENT Bulten is involved in electrification projects with various automotive manufacturers and is helping to drive developments concerning fastener shape and material to create optimal condition
Slide 13: Shareholder information
SHAREHOLDER INFORMATION 10 LARGEST SHAREHOLDERS No. of Share of TEN LARGEST 2017‐02‐28 SHAREHOLDERS, ‐ 2017‐03‐31 shares votes and 31 MARCH 2016 capital (%) SHARE DEVELOPMENT Volito AB 4 450 000 21.2 Lannebo fonder 2 574 407 12.2 Öresund Investment AB 2 263 535 10.8 Spiltan Fonder AB 849 479 4.0 JP
Slide 14: 2016 and Q1, 2017 in summary
2016 AND Q1, 2017 IN SUMMARY
Slide 15: 2016 in summary
2016 IN SUMMARY Strong profitability growth ̶ The operating margin rose to 7.5% and we exceeded our operating margin ̶ Result of • implemented optimization and streamlining of production, purchasing and logistics • good and steady production Strengthened financial position Further steps toward
Slide 16: Bulten establishes in USA and forms a joint venture with Ramco
BULTEN ESTABLISHES IN USA AND FORMS A JOINT VENTURE WITH RAMCO FOR FASTENER SOLUTIONS FOR THE NA MARKET Bulten and Ramco have signed an agreement to form a joint Tommy Andersson, CEO of Bulten and venture for distribution of fasteners to the automotive industry Rick Malson, President of Ramco at f
Slide 17: Group summary
GROUP SUMMARY FIRST QUARTER COMMENTS Net sales SEK 778 m (715) Strong sales up 8.8%, order intake up 3.0% EBIT margin 8.1% (7.7) Stronger EBIT margin; volumes up, efficient and smooth production Earnings after tax SEK 51 m (40) Return on capital employed increased to 14.4%, EPS 2.59 SE
Slide 18: Financial targets
FINANCIAL TARGETS Growth Margin ROCE EPS Dividend Profitable Operating At least 15% EPS At least one organic margin of at development third of net growth more least 7% earnings strongly than after tax the industry average Q1 8.8% 8.1% Na 2.59 SEK 4.50 SEK* R12 1.6% 7.6% 14.4% 7.83 SEK (3.50 + 1.00 S
Slide 19: Bulten development
BULTEN DEVELOPMENT 3500 3000 Capture Flat future 112 SEK 2500 +12% +34% dev. growth growth 7.5% 2000 growth 82 SEK 7.6% 1500 6.0% 67 SEK 89 SEK 1000 6.1% 500 5.5% Sales Share development 50 SEK 0 Operating margin 2013 2014 2015 2016 2017 12 m rolling GROUP STRUCTURE GROWTH AND CONSOLIDATION CONSOLID
Slide 20: Going forward
GOING FORWARD
Slide 21: Going forward
GOING FORWARD Continued long‐term organic growth potential ̶ Capture future growth, based on already won contracts and ongoing discussions ̶ Opportunities in emerging markets ̶ Interesting possibilities in the US market through new establishment Preparing for future growth through investments an