Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q1 2023 Earnings Presentation
19 slides from Bulten Ab's earnings presentation, April 2023
Slide 1: Q1 Interim Report January-March 2023
Q1 Interim Report January-March 2023 1
Slide 2: Agenda
Agenda • Bulten in brief • Market development • First quarter • In focus 2
Slide 3: Bulten in brief
Bulten in brief 4‚474 Net sales 2022 (SEK million) 180 284 Operating earnings Adjusted operating (SEK million) earnings (SEK million) 4.0 % 6.3 % Operating margin Adjusted operating margin • Headquarters 19.9 % 1,575 • Manufacturing Growth Employees (FTE) • Technology and innovation ••• Sweden – Got
Slide 4: Forecast for long-term global vehicle production
Forecast for long-term global vehicle production GLOBAL PRODUCTION GROWTH RATE (YEAR-OVER-YEAR) LIGHT VEHICLES HEAVY COMMERCIAL VEHICLES Q4 2022 Q1 2023 Q4 2022 Q1 2023 10% 10% 6,8% 6,2% 6,7% 6,7% 6,2% 4,2% 4,7% 4,2% 5% 3,0% 2,8% 5% 0,1% 0% 0% -5% -5% -10% -10% -15% -15% -13,4% 2021 2022 2023 2024 2
Slide 5: Raw material price development
Raw material price development Steel – wire rod Q1 has been characterized by decreasing energy DSV Index indicated decreased wire rod prices in Q1 2023 prices, and to some extent lower costs for raw 1 600 material components such as Iron Ore and 1 400 Scrap. 1 200 1 000 Demand for steel wire rod is
Slide 6: Energy price development
Energy price development EUR per MWh 600 500 400 300 200 100 0 22-03 2018 2019 2020 21-01 21-02 21-03 21-04 21-05 21-06 21-07 21-08 21-09 21-10 21-11 21-12 22-01 22-02 22-04 22-05 22-06 22-07 22-08 22-09 22-10 22-11 22-12 23-01 23-02 23-03 ES IT DE Scandinavia Source: Trading Economics and Gestore M
Slide 7: Major events in Q1
Major events in Q1 • Held grand opening of new surface treatment plant in Poland • Started closure of plant in Pembroke, UK and move of production to other plants within the manufacturing network • Overview of distribution network – announced closure of one Swedish warehouse • Increased ownership in
Slide 8: TensionCam
TensionCam is a technology start-up developing products for measuring and monitoring clamp loads in critical applications such as wind turbines, industrial heat exchangers, pipe flanges and infrastructure Benefits of TensionCam technology for Bulten: • Providing opportunities for a new business mode
Slide 9: Grand Opening of new plant
Grand Opening of new plant In Q1, the new surface treatment facility in Radziechowy-Wierpz, Poland was inaugurated. This is Bulten’s largest investment ever. The new plant will lead to: • Improved margins due to insourcing and state-of-the-art processes • Shorter lead times and lower inventory • Low
Slide 10: Our legacy – 150 years of history
Our legacy – 150 years of history In 1873, the two engineers Gottfried Rystedt and Nils Petterson saw a business opportunity in manufacturing fasteners. Businessman Herman Friedländer helped with the start-up capital of 225 000 Swedish crowns. Bultfabriksaktiebolaget or “The Bolt Factory Corporation
Slide 11: Growth in sales volumes
Growth in sales volumes Q1 2023 • Group net sales - an increase of 34.1% on the same period last year • Fifth quarter with a net sales over SEK 1 billion • Overall positive sales growth in the automotive sector, as well as in other sectors 11
Slide 12: Change in R12M March 2022 to March 2023
Change in R12M March 2022 to March 2023 SEK m +1 166 SEK m Net sales per customer group (+31,8%) 2023-03-31 YTD 4 900 4 827 4 800 +166 Other industries outside Automotive OEM, light vehicles 4 700 4 600 7,4% +141 OEM, heavy vehicles 4 500 10,4% +106 4 400 4 300 Automotive suppliers 13,9% 4 200 4 100
Slide 13: Strong EBIT level
Strong EBIT level Q1 2023 Quarter EBIT margin • EBIT SEK 116 (-11) million with EBIT margin Reported Adjusted for non-recurring items amounted to 8.4% (-1,1%) in Q1 9% 8,4% 8,4% • Adjusted EBIT 116 (72) with adjusted EBIT margin 8% amounted to 8.4% (7.0) in Q1 7,0% 7% 6% 5% Positive: 4% 3% • EBIT/EB
Slide 14: Earnings per share
Earnings per share Q1 R12M FY APRIL 22- 2023 2022 ∆ MARCH 23 2022 ∆ Net sales 1,387 1,034 34.1% 4,827 4,474 7.9% Gross profit 283 205 78 904 826 78 Earnings before depreciation (EBITDA) 160 32 128 483 355 128 Operating earnings (EBIT) 116 -11 127 307 180 127 Operating margin, % 8.4 -1.1 9.5 6.4 4.0
Slide 15: Cash Flow, Balance Sheet and Net Debt
Cash Flow, Balance Sheet and Net Debt Q1 FULL YEAR CASH FLOW STATEMENT (MSEK) 2023 2022 2022 Cash flow from operating activities before changes in working capital 123 101 381 Cash flow from operating activities including changes in working capital 196 94 298 Cash flow from investing activities -40 -
Slide 16: Key Indicators
Key Indicators R12M FULL YEAR APRIL 22- APRIL 21- 2022 MARCH 23 MARCH 22 THE GROUP, 12 MONTHS RETURN INDICATORS Return on capital employed, % 11.2 5.3 6.3 Adjusted return on capital employed, % 11.9 8.7 9.9 Return on capital employed, (excluding financial lease) % 12.6 6.0 7.0 Adjusted return on cap
Slide 17: Financial Targets and Guidelines
Financial Targets and Guidelines R12M FULL YEAR GUIDE- Q1 2023 2022 LINES Average net working 19.0 21.4 20-25 Growth Margin ROCE capital as % of sales Net sales SEK 5 billion in Operating At least 15% CAPEX as % of sales 4.7 6.0 2-3 2024, equating to a margin of at least Depreciation as % 3.6 3.9 4-
Slide 18: In focus
In focus • Continue inventory right-sizing activities • Continue identification of M&A targets for diversification of customer sectors • Execute on operational improvements ─ Closure of manufacturing plant in Pembroke (UK) ─ Closure of warehouse in Gothenburg (SE) • Commercialize TensionCam technolo
Slide 19: Our strategy
Our strategy GOAL 2024 STRONG POSITION Enhanced offering, including leadership in FSP/FSPs concept, geographical proximity to important customers, sustainability and innovation. forefront of innovation and sustainability GROWTH ORGANIC Net sales SEK 5 billion Organic and acquisition growth, inside a