Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Shareholder Meeting (April 2016)
35 slides from Bulten Ab's shareholder meeting presentation, Apr 26, 2016
Slide 1: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 TOMMY ANDERSSON, PRESIDENT AND CEO 26 APRIL 2016
Slide 2: Corporate Presentation
CORPORATE PRESENTATION
Slide 3: Bulten is a leading supplier of fasteners to the international automotive industry
BULTEN IS A LEADING SUPPLIER OF FASTENERS TO THE INTERNATIONAL AUTOMOTIVE INDUSTRY VISION BUSINESS CONCEPT FINANCIAL TARGETS Supporting the global Bulten shall be the leading business partner and the most cost‐effective To grow stronger than the automotive industry supplier of fasteners and servic
Slide 4: More than 140 years of fasteners experience
MORE THAN 140 YEARS OF FASTENERS EXPERIENCE 2015 1873 BULTEN HAS HAD A STRONG GROWTH AND IS NOW A MAJOR PLAYER IN THE BULTEN WAS FOUNDED. EUROPEAN AUTMOTIVE MARKET 2000’s BULTEN STARTED TO FOCUS ON THE FSP CONCEPT AND WON SEVERAL SIGNIFICANT CONTRACTS. AGM 2016 4
Slide 5: 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 2016 5
Slide 6: Bulten is one of the largest suppliers of fasteners to the European automotive market
BULTEN IS ONE OF THE LARGEST SUPPLIERS OF FASTENERS TO THE EUROPEAN AUTOMOTIVE MARKET Development and production of a wide range of metallic fasteners and related Bulten’s offer services ̶ Major player in critical fasteners for Core products are METALLIC metallic screws, BOLTS/SCREWS engines bolts
Slide 7: 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 GEOGRAPHIC SALES DISTRIBUTION JANUARY – MARCH 2016 Great Britain, 34.9% Germany, 18.8% Sweden, 15.1% Poland, 0.9% Rest of Europe, 19.7% Russia, 0.6% US, 3.2% Turnover refers to where the customer’s delivery point
Slide 8: Bulten is expanding its manufacturing and logistic footprint
BULTEN IS EXPANDING ITS MANUFACTURING AND LOGISTIC FOOTPRINT LEAN AND WELL POSITIONED MANUFACTURING FACILITIES IN‐HOUSE VS. TRADING IN EUROPE AND ASIA (SALES VALUE) LOGISTICS 3% HEAD OFFICE PRODUCTION IN‐HOUSE TRADING 57% SALES LOGISTICS PRE DE
Slide 9: 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 OEMs TIER AUTOMOTIVE OEMs LIGHT VEHICLES SUPPLIERS HEAVY VEHICLES 77% 11% 12% 75% Share of Bulten’s sale, YTD 2015 . 28% Selection of customers. Share of Bulten’s sales YTD AGM 2016 9
Slide 10: Key success factors
KEY SUCCESS FACTORS TECHNOLOGY GEOGRAPHIC FINANCIAL LEADER PROXIMITY PLATFORM QUALITY EXPERIENCED FULL SERVICE LEADER MANAGEMENT PROVIDER (FSP) AND EMPOWERED EMPLOYEES AGM 2016 10
Slide 11: Bulten's overall objective regarding sustainability
BULTEN’S OVERALL OBJECTIVE REGARDING SUSTAINABILITY IS THAT IT SHOULD BE A NATURAL PART OF ALL ACTIVITIES THROUGHOUT THE GROUP ENVIRONMENTAL Social responsibility PRINCIPLES to conduct business that ̶ Consideration to human rights has as little environmental ̶ Treat people with respect an good eth
Slide 12: Trends and driving forces
TRENDS AND DRIVING FORCES Global platforms ̶ Realising economy of scale ̶ Opportunity for variation reduction, thus greater volumes per variant ̶ Bulten is one of few suppliers that can handle the large full service contracts High demands om suppliers ̶ OEMs are reducing their number of supplier
Slide 13: The automotive industry is facing major challenges with electrification and autonomous cars
THE AUTOMOTIVE INDUSTRY IS FACING MAJOR CHALLENGES WITH ELECTRIFICATION AND AUTONOMOUS CARS MOST IN FOCUS The electrification trend is driven by both Forecast EV volumes 2025 regulatory requirements and consumer demand 7000000 6000000 The world’s car manufacturers have investment focus on new te
Slide 14: Bulten as a contributor in the sustainable development
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 conditions for the new technology. Participation in Chalmers p
Slide 15: Shareholder information
SHAREHOLDER INFORMATION NO. OF SHARE OF TEN LARGEST SHAREHOLDERS, SHARES VOTES & 31 MARCH 2016 CAPITAL SHARE DEVELOPMENT (%) Volito AB 4 435 686 21.1 Öresund Investment AB 2 263 535 10.8 Lannebo fonder 1 877 631 8.9 JP Morgan 1 060 537 5.0 Spiltan Fonder AB 752 479 3.6 Bulten AB 680 500 3.2 CBLDN‐OM
Slide 16: 2015 in brief
2015 IN BRIEF
Slide 17: Bulten market share development
BULTEN MARKET SHARE DEVELOPMENT Management estimates*: ̶ Bulten market share to be 17% of the Bulten market share development European market of fasteners for the automotive industry 2015, up 3 pp. since 2014 17% 2013 ̶ Bulten market share of FSP contracts 14% 11% 2014 for the same market to be 60
Slide 18: Summary of 2015
SUMMARY OF 2015 Financial targets Continued sales growth; ‐ target performance 2015 ̶ The FSP contracts signed in 2013‐2014 now Profitable organic EBIT margin fully in production growth in excess of of at least 7% ̶ New FSP contracts wins the market ̶ Recovery of European car market Improved pro
Slide 19: 2. Market development
2. MARKET DEVELOPMENT
Slide 20: Market development
MARKET DEVELOPMENT LMC Automotive reports for automotive production in Europe, 2016: ̶ Production of LV in 2016 up by 2.4% compared to 2015 ̶ Production of HCV (>15 t) in 2016 up by 1.3% compared to 2015 ̶ For Bulten’s mix, up 2.3% • LV stands for ~88% of sales • HCV stands ~12% of sales ACEA re
Slide 21: LMC Automotive reports for automotive production in Europe
LMC AUTOMOTIVE REPORTS FOR AUTOMOTIVE PRODUCTION IN EUROPE PRODUCTION GROWTH RATE (YEAR ON YEAR) PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES EUROPE HEAVY COMMERCIAL VEHICLES (>15t) EUROPE 5% 15% 4,0% 4% 10% 7,9% 7,7% 8,7% 4% 2,9% 2,8% 2,9% 4,2% 3% 2,4% 5% 1,3% 3% 2% 0% 2% ‐5% 1% 0,5% ‐10% 1
Slide 22: 3. First quarter 2016
3. FIRST QUARTER 2016
Slide 23: Operational highlights
OPERATIONAL HIGHLIGHTS Improved earnings with effects from optimization and smooth and steady production and good order intake of +5.9% Strong cash flow as a result of good profitability and reduction in working capital Several new small orders in Russia ‐ total initial value of approximately
Slide 24: Group summary
GROUP SUMMARY FIRST QUARTER COMMENTS Net sales up 0.3% Good sales to customers with a focus in the premium segment and strong order booking EBIT margin 7.7% (5.1) Stronger EBIT margin; optimization, smooth and steady Earnings after tax SEK 40.4 m (29.5) production EPS 2.03 SEK (1.44) Q1
Slide 25: Continued increase in sales and order intake
CONTINUED INCREASE IN SALES AND ORDER INTAKE SEK m 800 699 700 715 600 500 400 300 200 100 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Net Sales Order bookings Sales up 0.3% in Q1 vs last year and 1% currency adjusted Order intake up 5.9% in Q1 vs last year AG
Slide 26: Improved EBIT trend continued in Q1
IMPROVED EBIT TREND CONTINUED IN Q1 SEK m 60 55.3 9,0% 7.7% 8,0% 50 7,0% 40 6,0% 5,0% 30 EBIT 4,0% EBIT margin 20 3,0% 2,0% 10 1,0% 0 0,0% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Improved EBIT of SEK 55.3 m (36.4), EBIT margin of 7.7% (5.1%) ̶ Positive effect of optimization and smoo
Slide 27: EBIT improvements – optimization and steady production
EBIT IMPROVEMENTS – OPTIMIZATION AND STEADY PRODUCTION SEK m 200 180 175,4 165.0 160 140 133.4 135,3 6.1% 6.5% 120 5.5% 5.6% 100 80 60 55,3 52,2 40 7.7% 7.3% 20 0 FY 2014 FY 2015 Q1 2016 EBIT EBIT Excl. FX, property sale and ramp‐ups Q1 2016 EBIT affected by ̶ Pos. FX‐effect SEK +3.1 m (‐13.1) AGM
Slide 28: Cash flow, balance sheet and net debt
CASH FLOW, BALANCE SHEET AND NET DEBT CASH FLOW STATEMENT, MSEK JAN‐MARCH FULL YEAR 2016 2015 2015 Cash flow from operating activities before changes in working capital 67.6 48.8 186.8 Cash flow from operating activities 77.9 48.7 141.3 Cash flow from investing activities ‐16.0 ‐87.6 ‐306.9 Cash flo
Slide 29: Key indicators – capital structure and return indicators
KEY INDICATORS – CAPITAL STRUCTURE AND RETURN INDICATORS 12 M ROLLING FULL YEAR Apr 2015‐ Apr 2015‐ THE GROUP, 12 MONTHS Mar 2016 Mar 2016 2015 RETURN INDICATORS Return on capital employed, % 12.3 9.6 11.5 Return on equity % 10.0 13.3 9.4 Return on equity, adjusted % 9.5 12.6 8.9 CAPITAL STRUCTURE C
Slide 30: Financial guidelines
FINANCIAL GUIDELINES 12 M ROLLING FULL YEAR THE GROUP Q1 2015 GUIDELINES Average net working capital as % of sales 19.6 19.8 20 CAPEX as % of sales 8.9 9.3 2‐3 Depreciation as % of sales 2.3 2.2 2‐3 Tax rate 27.8 27.8 26‐29 NWC is in line with our guidelines Capex and depreciation mirrored by th
Slide 31: 4. Going forward
4. GOING FORWARD
Slide 32: Summary of Q1 2016
SUMMARY OF Q1 2016 During Q1 2016 Bulten: Strong result and cash flow Sales slightly below market growth but good order intake New FSP contract win in China Expanding the customer base in Russia Focus on operation with improved profitability and strong cash flow Preparation for launch of
Slide 33: Capture future growth
CAPTURE FUTURE GROWTH CAGR 2003‐2015 7,3% CAGR 2009‐ 2015 14,1% CAGR 2013‐2015 22,1% Sales current business 3000 2500 2000 PROFITABLE 1500 GROWTH Sales current business 1000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 RESTRUCTURING FSP FINANCIAL INDUSTRY RAPID GROWTH PERIO
Slide 34: Opportunities ahead
OPPORTUNITIES AHEAD Bulten’s opportunities ahead are: Continued long‐term organic growth potential ̶ 2016 a year in line with market growth ̶ Very good possibilities for market share gains the years thereafter, based on already won contracts and discussions with customers Bulten has taken ̶ Oppo
Slide 35: Bulten – a stronger solution
BULTEN – A STRONGER SOLUTION