Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Investor Day (2020)
16 slides from Bulten Ab's investor day presentation, 2020
Slide 1: Strong Financial Platform
Strong Financial Platform Helena Wennerström EXECUTIVE VICE PRESIDENT AND CFO
Slide 2: Financial platform
Financial platform Financial targets – 2019 – outcome – 2020 – New financial targets Strong organic growth – LMC forecast a global market decrease of 0.1% for 2020 weighted for Bulten´s We have a strong financial exposure platform and a position to Strong financial platform – Financial leverag
Slide 3: Volumes, strategic initiatives and inventory adjustments affected the outcome of 2019
Volumes, strategic initiatives and inventory adjustments affected the outcome of 2019 Growth Margin ROCE EPS Dividend Profitable organic growth Operating margin of At least 15%. EPS development At least one third of more strongly than the at least 7%. net earnings after industry average. tax. Q4 201
Slide 4: New vision and financial targets
Stronger 24 New financial targets New vision and financial targets Growth: 5 BSEK 2024 ‐ CAGR of 10% EBIT: > 8% ROCE: > 15% We create and supply the most Values innovative and sustainable fastening solutions Professional Innovative Dedicated Empowered Strong customer offer Full Service Provider Inno
Slide 5: LMC Automotive reports for Global production
LMC Automotive reports for Global production G L O B A L P R O D U C T I O N G R O W T H R A T E ( Y E A R O N Y E A R ) G L O B A L P R O D U C T I O N G R O W T H R A T E ( Y E A R O N Y E A R ) LIGHT VEHICLES HEAVY COMMERCIAL VEHICLES (>15T) 5,00% 8,00% Q3 2019 Q4 2019 Q3 2019 Q4 2019 4,00% 6,00%
Slide 6: Short term market view
LIGHT VEHICLES SALES UNITS Short term GLOBALLY 2019 market view 90 million Market uncertainty has continued in Q4 – Brexit – General economic uncertainty LIGHT VEHICLES SALES PER GEOGRAPHY 2019 We maintained our market shares in 2019, going forward we will focus on growing globally New tax regulatio
Slide 7: Ramp up new contracts and uncertain market development
Ramp up new contracts and uncertain market development Sales up 5.0% in Q4 vs last year (1.6 % currency adjusted) Order bookings up 13.6% in Q4 vs last year – Ramp up of the new contracts has now started in a higher pace than in Q3 however the uncertain macro situation and Brexit makes the devel
Slide 8: Predicted stronger Bulten organic growth vs the market
Predicted stronger Bulten organic growth vs the market However market uncertainty may have an impact on volumes Existing contracts + Ramp up of new + New signed not yet started + New signed not yet started ‐ Market volatility = Bulten growth & market growth contracts contracts contracts + and model
Slide 9: Grow to a 5 billion company within 5 years
Stronger 24 Grow to a 5 billion company within 5 years 2019 GROWTH CAGR 10% 2024 Net sales Net sales Organic 3.1 growth Acquisitions 5.0 BSEK BSEK Become a truly global company Sustainable growth BULTEN CMD 2020 25
Slide 10: Margin expansion to > 8 %
Stronger 24 Margin expansion to > 8 % 2019 MARGIN EXPANSION 2024 Production and Acquisition Adj EBIT distribution synergies EBIT margin efficiency margin 4.8 % Economy of scale Strengthened position in China and US > 8.0 % Technology Financial leverage Sustainable business BULTEN CMD 2020 26
Slide 11: Return on capital employed > 15 %
Stronger 24 Return on capital employed > 15 % 2019 STRONG FINANCIAL PLATFORM 2024 Adj Financial Secured ROCE ROCE leverage financing and 8.1 % continued distribution of solid equity/asset > 15.0 % dividends ratio We create great benefit for all our stakeholders Sustainable return on investments BULT
Slide 12: Strong Financial Position – Secured financing
Strong Financial Position – Secured financing GREEN FINANCE • Secured financing • Acquisition • Property in Poland – aiming for green financing • Investment in Growth and efficiency • Strong balance sheet with an equity ratio of 55.2% BULTEN CMD 2020 28
Slide 13: Financial guidelines 2020 and onwards
Financial guidelines 2020 and onwards T H E G R O U P F U L L Y E A R F U L L Y E A R G U I D E L I N E S Comments for 2019: 2 0 1 9 2 0 1 8 NWC higher than our guidelines Average net working capital – Increased since half year 2019 due to changed 25.5 23.0 20‐25 as % of sales demand, projects a
Slide 14: Investments for continued growth
Investments for continued growth Bulten invests and develops its business at a low risk MSEK Net investments and share of sales Capex as percentage of sales 300 250 Extended facility in Poland incl surface treatment line 200 250‐300 MSEK* 150 Capacity 0‐2%, depending on market development 100 50 250
Slide 15: Ownership structure
Ownership structure 10 LARGEST SHAREHOLDERS – 2020‐01‐31 S H A R E O F N O . O F S H A R E H O L D E R V O T E S A N D S H A R E S C A P I T A L ( % ) 1. Volito AB 4 800 000 22.8 2. Öresund Investment AB 2 900 000 13.8 N O . O F S H A R E H O L D E R S 3. Lannebo fonder 1 848 574 8.8 I N T O T A L 4
Slide 16: Bulten development
Bulten development Group Growth and Structure divestment Consolidation Bulten part of Divestment of Finnveden Executing new FSP contracts, Focus on Growth FinnvedenBulten Metal Structures. Several operation/optimization program, Investments for the Investments for the future and Group. new FSP contr