Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q3 2022 Earnings Presentation
24 slides from Bulten Ab's earnings presentation, Oct 27, 2022
Slide 1: Nine month report, Jan-Sep 2022
Nine month report, Jan-Sep 2022 27 October 2022
Slide 2: Nine months report, Jan-Sep 2022: conference call details
NINE MONTHS REPORT, JAN-SEP 2022 ◼ Telephone/audio conference ◼ Direct Link Audiocast: 27 October 2022, at 15.30 CEST https://tv.streamfabriken.com/bult en-q3-2022 ◼ Presented by: – Anders Nyström, President and CEO Call in to teleconference: – Anna Åkerblad, CFO ◼ SE: +46850558353 UK: +443333009035
Slide 3: Agenda
Agenda ─ Bulten in brief ─ Market development ─ Third quarter 2022 ─ In focus 2022
Slide 4: Bulten in brief
BULTEN IN BRIEF Source: All above numbers are from the Annual Report 2021 NINE MONTHS REPORT 2022 4
Slide 5: Market development
Market development
Slide 6: LMC Automotive's short-term market view
LMC AUTOMOTIVE’S SHORT-TERM MARKET VIEW • Q3 light vehicle production ─ An increase by 26.4% for Q3 2022, compared to same period 2021 • 2022 full-year vehicle production estimates ─ Production of light vehicles in 2022 estimated up by 6.8% vs 2021 ─ Production of heavy commercial vehicles (>15 t) i
Slide 7: LMC Automotive's long-term view for global production
LMC AUTOMOTIVE’S LONG-TERM VIEW FOR GLOBAL PRODUCTION GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES (LV) HEAVY VEHICLES (HCV) Q2 2022 Q3 2022 Q2 2022 Q3 2022 20,00% 20,00% 15,00% 15,00% 11.5% 7.3% 10,00% 10,00% 6.8% 6.7% 5.5% 3.6% 4.1% 5,00%
Slide 8: Raw material price development
RAW MATERIAL PRICE DEVELOPMENT Steel – wire rod Q3 has been characterized by cost inflation DSV Index indicated a new all time high price level in Q3 2022 related to energy and base commodities. This 1 600 has had an impact on steel prices. 1 400 1 200 The demand situation is still high in Europe, 1
Slide 9: Indicators – cold rolled coil & stainless steel
INDICATORS – COLD ROLLED COIL & STAINLESS STEEL Development Comment 1800 1600 Colled Rolled Coil (CRC) prices has plunged in Europe. The main drivers for 1400 the price drop are weakening demand, as well as price pressure from Turkey Cold Rolled Coil 1200 & Russia. 1000 800 600 As EU producers are s
Slide 10: Energy price development
ENERGY PRICE DEVELOPMENT EUR per MWh 600 500 400 300 200 100 0 ES IT DE Scandinavia Natural gas (Dutch TTF) highly volatile. Price levels Electricity prices at peak levels in August. plunging as EU gas storages are more or less full. Electricity prices plunging as natural gas prices Natural gas dema
Slide 11: Third quarter 2022
Third quarter 2022
Slide 12: Increased turnover in a challenging environment
INCREASED TURNOVER IN A CHALLENGING ENVIRONMENT ─ Increased turnover – 2nd highest quarter and highest Q3 in Bulten’s history ─ Somewhat improved automotive manufacturing forecast ─ Positive growth in business outside Automotive ─ Continued shortage of semi-conductors causing supply chain disruption
Slide 13: Events during Q3 2022
EVENTS DURING Q3 2022 ─ Bulten was nominated as a supplier of fasteners for a new global electric vehicle (EV) platform to be produced in China. The order value is estimated at approximately SEK 155 million a year at full production. ─ Bulten began a collaboration with Polestar on the development pr
Slide 14: Increasing sales volumes
INCREASING SALES VOLUMES Q3 2022 ─ Higher sales to automotive OEMs ─ Continued sales growth in other industries outside the automotive sector ─ > 4 BSEK 12-month rolling NINE MONTHS REPORT 2022 14
Slide 15: Change R12M September 2021 to September 2022
CHANGE R12M SEPTEMBER 2021 TO SEPTEMBER 2022 NET SALES PER CUSTOMER GROUP 2022-09-30 YTD 10.5 (6.8)% 16.2 (17.3)% 9.3 (10.0)% 64.0 (65.9)% OEM, light vehicles OEM, heavy vehicles Automotive suppliers Other industries outside Automotive NINE MONTHS REPORT 2022 15
Slide 16: Improved EBIT even in challenging times
IMPROVED EBIT EVEN IN CHALLENGING TIMES Q3 2022 Quarter EBIT margin ◼ EBIT SEK 47 (31) million with EBIT margin Reported Adjusted for currency effects amounted to 4.3% (4.1) in Q3 5% 4,3% 4,1% 3,9% 3,8% 4% Positive: ─ Improved EBIT/EBIT margin compared to Q3 in 3% 2021 21 2% Negative: 98 99 43 41 1%
Slide 17: Group summary Q3 2022
GROUP SUMMARY Q3 2022 Q3 R12M FY Oct 21 - FINANCIAL SUMMARY 2022 2021 ∆ Sep 22 2021 ∆ Net sales 1,095 764 43.3% 4,088 3,730 9.6% Gross profit 187 140 47 749 710 39 Earnings before depreciation (EBITDA) 91 74 17 297 400 -103 Operating earnings (EBIT) 47 31 16 125 232 -107 Operating margin, % 4.3 4.1
Slide 18: Cash flow, balance sheet and net debt
CASH FLOW, BALANCE SHEET AND NET DEBT Q3 Jan-Sep FULL YEAR CASH FLOW STATEMENT (MSEK) 2022 2021 2022 2021 2021 Cash flow from operating activities before changes in working capital 60 64 236 260 332 Cash flow from operating activities including changes in working capital -27 -122 48 3 48 Cash flow f
Slide 19: Key indicators
KEY INDICATORS R12M FULL YEAR THE GROUP, 12 MONTHS Oct 21-Sep 22 Oct 20-Sep 21 2021 RETURN INDICATORS Return on capital employed, % 4.5 11.7 9.7 Adjusted return on capital employed, % 7.9 11.6 9.7 Return on capital employed, (excluding financial lease) % 5.0 13.5 11.0 Adjusted return on capital empl
Slide 20: Financial targets and guidelines
FINANCIAL TARGETS AND GUIDELINES 2022-09-30 FULL YEAR GUIDE- R12M 2021 LINES Average net working 24.7 20.7 20-25 Growth Margin ROCE capital as % of sales Net sales SEK 5 billion in Operating At least 15% CAPEX as % of sales 6.5 4.6 2-3 2024, equating to a margin of at Depreciation as % 4.2 4.5 4-5 c
Slide 21: In focus
In focus AY
Slide 22: In focus 2022
IN FOCUS 2022 ─ Dramatically decrease inventory levels and convert to cash ─ Intensify customer pricing activities to minimize impact of inflation driven cost increases ─ Maintain momentum on innovation and sustainability activities ─ Continue identification of M&A target ─ Win incremental business
Slide 23: Strategy
STRATEGY STRONG POSITION STRONG OFFER Including sustainability and FSP/FSPs concept, geographic proximity, forefront of innovation and sustainability innovation leadership GROWTH SALES 5 BSEK Organic and acquisition growth, inside and outside automotive CAGR 10% MARGIN EXPANSION EBIT MARGIN Economy
Slide 24: A stronger solution
A stronger solution 24