Slide 1: Fourth Quarter 2015 Earnings Conference
Fourth Quarter 2015 Earnings Conference 4 February, 2016
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 46% New York 38% Tokyo 16% Seoul Pune Sao P aolo Sales a nd Technical support Sales d estinations Percentage o f sales volume FY 2 015 3
Slide 4: Strong performance against targets in 2015
Strong performance against targets in 2015 Growth ROCE Net debt over EBITDA Dividend1 +2.5% 18.1% 0.4 SEK 2.00 39% of Net Profit Target: Target: Target: Target: Higher than market 15-20% 1-2 30-50% of Net Profit (1) The Board of Director’s proposal for the 2016 Annual General Meeting 4
Slide 5: Summary Q4 2015 – Growth and improved earnings
Summary Q4 2015 – Growth and improved earnings Sales volume increased by 3.3% Adjusted operating profit improved by 12.9% to SEK 116 million Tailwind from favourable exchange rates partly offset by price lag on aluminium premiums and lower sales volume in Asia Earnings per share of SEK 1
Slide 6: Market growth of 3% expected for full year 2016
Market growth of 3% expected for full year 2016 Light vehicle production growth (YoY) Region Q4 2015 Q1 2016 outlook FY 2016 outlook Asia +8% +2% +4% Europe +4% +2% +2% Americas -3% +2% +2% Global +4% +2% +3% Source: IHS Automotive, January 16, 2016 6
Slide 7: Europe and North America show good growth whereas sales volume in Asia decreased
Europe and North America show good growth whereas sales volume in Asia decreased in the fourth quarter Gränges sales volume (ktonnes) Asia Europe Americas -7% +13% 20.7 19.6 18.8 17.6 17.5 16.0 16.4 14.9 15.4 13.6 +15% 5.9 7.4 6.5 6.0 5.2 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2014 2015 2014
Slide 8: Folded tube solution to be launched in first half of 2016
Folded tube solution to be launched in first half of 2016 Competing technology to MPE tubes Strategy Addressing Auto and HVAC&R Help customers convert to new technology 8
Slide 9: Continued positive earnings trend in fourth quarter
Continued positive earnings trend in fourth quarter Rolling 12 months sales volume and adjusted operating profit 521 528 541 200 550 494 Adjusted operating profit (SEK million) 463 437 444 180 450 401 Sales volume (ktonnes) 362 374 372 371 164 348 161 163 163 160 160 160 160 160 158 159 350 154 155
Slide 10: Growth and improved earnings during fourth quarter
Growth and improved earnings during fourth quarter Financial overview SEK million Q4 January - December 2015 2014 Change 2015 2014 Change Sales volume (ktonnes) 38.9 37.7 3.3% 163.9 160.0 2.5% Net sales 1,252 1,217 2.9% 5,494 4,748 15.7% Adjusted operating profit1 116 103 12.9% 541 463 16.9% Adjust
Slide 11: Net debt was SEK million at the end of fourth quarter
Net debt was SEK 275 million at the end of fourth quarter Change in net debt 0 0.6 0.4 Net debt position (SEK million) Cash flow before financing SEK 159 million -200 12 4 -25 168 7 -275 -400 -442 -600 Net Adjusted Change in Other Investments & FX & other Net debt EBITDA working operating dive
Slide 12: Outlook
Outlook Global Light Vehicle Production is expected to grow 2.2%1 in Q1 2016 Gränges’ sales volume is expected to develop better than the market during Q1 2016. Above market growth is expected in Europe and the Americas, while sales volume growth is estimated to be slightly lower than the mark
Slide 13: Summary of fourth quarter
Summary of fourth quarter A solid quarter with good sales growth and higher operating profit Sales volume increased by 3.3% Adjusted operating profit rose by 12.9% to SEK 116 million Solid financial position Well positioned for profitable growth 13
Slide 14: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 15: Gränges
GRANGES y 4