Be Group Ab · OMXSTO:BEGR
Be Group Ab — Q1 2013 Earnings Presentation
24 slides from Be Group Ab's earnings presentation, April 2013
Slide 1: BE Group Interim Report January–March 2013
BE Q1 Q BE GROUP INTERIM REPORT JANUARY – MARCH 2013 Kimmo Väkiparta, p , President and CEO Torbjörn Clementz, CFO and Executive Vice President Slide 1
Slide 2: Q1 – Weak quarter in comparison with last year
Q1 – Weak quarter in comparison with last year Financial Highlights Shi Shipped d ttonnage d decreased d 18% Net sales decrease of 23% Operating g result of SEK -17 M ((41)) Underlying operating result of SEK 14 M (51) Slide 2
Slide 3: Market highlights Operational highlights
Market highlights Operational highlights Continued tough market with Negotiations on personnel reductions substantial decrease in demand largely concluded vs 2012 Continued adaption to current market Deliveries per day gradually improved situation during the quarter G d costt control Good
Slide 4: Personnel reduction programme in progress
Personnel reduction programme in progress Adaption to current business situation and in order to improve competitiveness Negotiations largely concluded Expected to reduce number of employees by approximately 140 Mainly Sweden including Group functions and Finland are affected Yearly saving
Slide 5: Financials in detail
FINANCIALS IN DETAIL Slide 5
Slide 6: Way below last year but signs of improved demand
Way below last year but signs of improved demand Tonnage (‘000 tons) 125 500 Tonnageg 18% down vs 125 122 122 114 117 last year 100 111 102 400 Sweden -25% 98 98 Finland -18% 75 300 CEE -9% 50 200 Increasing pace in ton/day throughout the 25 100 quarter 0 0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2
Slide 7: Continued weak price sentiment
Continued weak price sentiment Average sales price (SEK/kg) 12,00 11,85 Q1 average sales price 11,50 decreased 3% vs Q1 2012 11,48 11,00 11,36 11,31 and were in line with Q4 10,94 2012, adjusted for currency 10,50 10,71 effects 10,36 10,00 10,25 10,15 9,50 9,00 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
Slide 8: Lower tonnage and non-recurring items drove EBIT down
Lower tonnage and non-recurring items drove EBIT down Sales EBIT and uEBIT (SEK M) Sales, Net sales 23% down 1 600 100 Tonnage -18% 1 400 1 445 80 Price/mix -3% 1 391 1 343 Currencyy -2% 1 200 1 268 1 288 1 273 60 EBIT of SEK -17 M (41) and 1 000 40 1 020 998 1 032 uEBIT of SEK 14 M (51) S
Slide 9: A Q1 with positive underlying EBIT again
A Q1 with positive underlying EBIT again Q1 Q1 Change Q4 SEK M 2013 2012 2012 Net sales 1,032 1,343 -311 998 Underlying EBIT 14 51 -37 -33 % of Sales 1.4% 3.8% -3.3% Inventory gains/losses -2 -10 8 -9 Non-recurring items -29 - -29 - EBIT -17 17 41 -58 58 -42 42 % of Sales -1.7% 3.1% -4.2% Earnings b
Slide 10: Working capital in good control
Working capital in good control Cashflow (SEK M) 150 Cashflow from operating activities 125 SEK -46 M (-15) 100 75 Investments of SEK 11 M (16) 50 Working capital tied-up 9% (8) 25 0 Net debt of SEK 822 M (806) – -25 gearing 128% (98%) -50 -75 75 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 EBITDA, SEK M C
Slide 11: Business areas status Q1 2013
BUSINESS AREAS STATUS Q1 2013 Slide 11
Slide 12: BA Sweden – Continued improved gross margin in distribution business
BA Sweden – Continued improved gross margin in distribution business Sales, EBIT and uEBIT (SEK M) 800 60 700 50 Net sales decreased withith 23% and 698 tonnage decreased by 25% 666 600 40 Demand from industrial customers 500 536 549 537 30 gradually strengthened during the quarter s Sales EBIT
Slide 13: BA Finland – Slowly in the right direction
BA Finland – Slowly in the right direction Sales, EBIT and uEBIT (SEK M) 600 100 Net sales decreased with 25% 500 80 Tonnage decrease by 18% 499 473 Demand improvement vs Q4 2012 in 400 60 the engineering sector 367 373 Sales prices in Euro down 7% vs Q4 Sales EBIT 300 333 40 2012 mainly due
Slide 14: BA CEE – Still tough environment
BA CEE – Still tough environment Sales, EBIT and uEBIT (SEK M) 200 10 Continued weak general economic trend 150 165 5 Decrease in net sales of 20% with 147 tonnage decrease of 9% 133 123 126 Continued price pressure in Central ales EBIT 100 0 Europe affects margin Sa E EBIT of SEK -3 M (0),
Slide 15: Outlook
OUTLOOK Slide 15
Slide 16: Current business situation and outlook
Current business situation and outlook Advance planning with regard to customers need is generally short-term g Based on signals from customers we expect p demand during g Q2 to continue to improve gradually Sales prices expected to fall in the second quarter C t structure Cost t t will ill
Slide 17: Current focus areas
Current focus areas Generate growth with customer and supplier cooperation Improve capacity utilization Improve cost control even more Efficient working capital utilization T Turnaround d lloss-makers k Slide 17
Slide 18: Our vision
Our vision BE Group shall be the most: - Professional - Successful S f l - Respected p steel service company Slide 18
Slide 19: Slide 19
Slide 19
Slide 20: Appendix Financial Information
APPENDIX FINANCIAL INFORMATION Slide 20
Slide 21: Appendix: Financial summary
Appendix: Financial summary 2012 2013 Full year Q1 Q2 Q3 Q4 Q1 2011 2012 Tonnage 125 117 98 98 102 469 438 Net Sales 1 343 1,343 1 273 1,273 1 020 1,020 998 1 032 1,032 5 392 5,392 4 634 4,634 Underlying EBIT 51 16 15 -33 14 157 49 % of Sales 3.8% 1.2% 1.5% -3.3% 1.4% 2.9% 1.1% EBIT 41 21 6 -42 -17
Slide 22: Appendix: Sales per customer segment
Appendix: Sales per customer segment Q1 – Share of total sales (%) OEM & partners 50% 45% Project 20% 26% Pre- 20% processing 20% 10% Retail 9% 0% 10% 20% 30% 40% 50% 60% 2013 2012 Slide 22
Slide 23: Appendix: Sales per product area
Appendix: Sales per product area Q1 – Share of total sales (MSEK) Long steel 301 374 Flat steel 377 469 Reinforce- ment 74 141 Stainless 174 steel 230 Aluminum 46 65 60 Other 64 0% 10% 20% 30% 40% 2013 2012 Slide 23
Slide 24: Appendix: Sales per channel
Appendix: Sales per channel Q1 – Share of total sales (MSEK) 183 Direct 242 488 Inventory y 683 361 Service 418 0% 10% 20% 30% 40% 50% 60% Sales outside scope of channels not included 2013 2012 Slide 24