Bulten Ab · OMXSTO:BULTEN

Bulten Ab — Q1 2022 Earnings Presentation

22 slides from Bulten Ab's earnings presentation, Apr 28, 2022

  1. Slide 1: First Quarter, January-March 2022

    FIRST QUARTER, JANUARY-MARCH 2022 28 APRIL 2022, AT 15.30 CEST

  2. Slide 2: Three Months Report, January-March 2022

    THREE MONTHS REPORT, JANUARY-MARCH 2022  Telephone/audio conference 28 April  Direct Link Audiocast: 2022, at 15.30 CEST https://tv.streamfabriken.com/bulten-q1-2022  Call in to teleconference:  Presented by:  SE: +46856642693 – Anders Nyström, President and CEO UK: +443333009035 – Anna Åkerbla

  3. Slide 3: Agenda

    AGENDA 1. Bulten in brief 2. Market development 3. First quarter 2022 4. In focus 2022

  4. Slide 4: Bulten in brief

    BULTEN IN BRIEF Source: All above numbers are from the Annual Report 2021 THREE MONTHS REPORT 2022 4

  5. Slide 5: 2. Market development

    2. MARKET DEVELOPMENT

  6. Slide 6: A turbulent global context

    A TURBULENT GLOBAL CONTEXT  COVID-19 – currently causing lock-down related production losses in China and at the beginning of the quarter excessive absenteeism in customer plants in Europe  Continued shortage of semiconductors – still causing supply chain disruptions for some customers  The war i

  7. Slide 7: LMC Automotive short-term market view

    LMC AUTOMOTIVE SHORT-TERM MARKET VIEW  Q1 light vehicle sales (according to LMC Automotive) – A decrease by -5.9% for Q1 2022, compared to same period 2021  2022 full-year vehicle production estimates (according to LMC Automotive) – Production of light vehicles in 2022 estimated up by 7.1% vs 2021

  8. Slide 8: LMC Automotive long-term view for global production

    LMC AUTOMOTIVE LONG-TERM VIEW FOR GLOBAL PRODUCTION GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) GLOBAL PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES HEAVY COMMERCIAL VEHICLES (>15T) 15% 12.5% 9,1% 35% 10% 7,1% 6,7% 30% 4,2% 5% 3,0% 25% 0% 20% 15% 12,8% -5% 10% 6,0% -10% 5% 0,1% -15% 0% -15,8

  9. Slide 9: Steel (wire rod) price development

    STEEL (WIRE ROD) PRICE DEVELOPMENT Steel – wire rod  Q1 has been characterized by cost DSV Index indicated a new all time high inflation related to energy and base price level in Q1 2022 commodities which impacts steel prices € 1 400 1 200 1 000  The demand is still high in Europe which 800 leads

  10. Slide 10: 3. First quarter 2022

    3. FIRST QUARTER 2022

  11. Slide 11: Events during Q1 2022

    EVENTS DURING Q1 2022  Lack of semiconductors continued to hamper the production of vehicles  Intensive margin protection activities, including sales price adjustments, starting to offset cost increases  Signed two Full Service Provider (FSP) contracts in Europe – Contract value of ~ SEK 175 mill

  12. Slide 12: Strong quarter despite weak beginning

    STRONG QUARTER DESPITE WEAK BEGINNING Q1 2022  Continued sales growth in automotive suppliers and other industries outside the automotive sector  Lower sales to automotive OEMs as a consequence of partly uneven production due to COVID-19 and semiconductor shortage THREE MONTHS REPORT 2022 12

  13. Slide 13: Change R12M April 21 – March 22

    CHANGE R12M APRIL 21 – MARCH 22 Net sales per customer group 3 661 THREE MONTHS REPORT, 2022 13

  14. Slide 14: EBIT impacted by divestment costs

    EBIT IMPACTED BY DIVESTMENT COSTS Quarter EBIT margin  Reported EBIT SEK -11 (98) million 8,9% 8,9% 9,0% Adjusted EBIT SEK 72 (98) million 9% 7,4% – Divestment costs of Russian operation (SEK -83 7,0% 7% million) impacted the EBIT margin – Continued increased costs in energy, steel rods 5% and tran

  15. Slide 15: Group summary Q1 2022

    GROUP SUMMARY Q1 2022 Q1 R12M FY FINANCIAL SUMMARY APR 21 - 2022 2021 ∆ 2021 ∆ MAR 22 Net sales 1,034 1,103 -6.3% 3,661 3,730 -1.8% Gross profit 205 226 -21 689 710 -21 Earnings before depreciation (EBITDA) 32 140 -108 292 400 -108 Operating earnings (EBIT) -11 98 -109 123 232 -109 Operating margin,

  16. Slide 16: Cash flow, balance sheet and net debt

    CASH FLOW, BALANCE SHEET AND NET DEBT FULL Q1 CASH FLOW STATEMENT (MSEK) YEAR 2022 2021 2021 Cash flow from operating activities before changes in working capital 101 115 332 Cash flow from operating activities including changes in working capital 94 93 48 Cash flow from investing activities -75 -16

  17. Slide 17: Key indicators

    KEY INDICATORS R12M FULL YEAR THE GROUP, 12 MONTHS APR 21-MAR 22 APR 20-MAR 21 2021 RETURN INDICATORS Return on capital employed, % 5.3 7.4 9.7 Adjusted return on capital employed, % 8.7 7.3 9.7 Return on capital employed, (excluding financial lease) % 6.0 8.3 11.0 Adjusted return on capital employe

  18. Slide 18: Financial targets and guidelines

    FINANCIAL TARGETS AND GUIDELINES Growth Margin ROCE Net sales SEK 5 billion in Operating At least 15% 2024, equating to a margin of at 2022-03-21 FULL YEAR GUIDE- compound annual growth least 8% R12M 2021 LINES rate (CAGR) of 10% Average net working Q1 R12M Q1 R12M Q1 2021 21.2 20.7 20-25 capital as

  19. Slide 19: 4. In focus 2022

    4. IN FOCUS 2022

  20. Slide 20: In focus 2022

    In focus 2022  Continue to closely monitor and adapt to the current situation in the industry  Be prepared for recovery of customer production  Continue margin improvement initiatives in order to offset cost increases  Maintain momentum on innovation and sustainability activities  Continue iden

  21. Slide 21: Strategy

    STRATEGY STRONG POSITION STRONG OFFER Including sustainability and FSP 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 of sc

  22. Slide 22: Bulten - a stronger solution

    BULTEN - A STRONGER SOLUTION

Bulten — Q1 2022 Earnings Presentation on 6ix