Be Group Ab · OMXSTO:BEGR

Be Group Ab — Q1 2016 Earnings Presentation

24 slides from Be Group Ab's earnings presentation, April 2016

  1. Slide 1: BE Group Interim Report January–March 2016

    BE Q1 BE GROUP INTERIM REPORT JANUARY – MARCH 2016 Anders Martinsson, President and CEO Andreas Karlsson, CFO Slide 1

  2. Slide 2: Q1 – Strong operational cash-flow

    Q1 – Strong operational cash-flow Financial highlights  Shipped tonnage decreased by 5%  Net sales decreased by 11%  Gross profit of SEK 127 M (144)  Underlying operating result (uEBIT) of SEK 9 M (12)  Operating result (EBIT) of SEK -45 M (10) affected by one-off costs in amount of SEK 45 M 

  3. Slide 3: Market situation and Operational highlights

    Market situation Operational highlights  Challenging market conditions remains  Increased underlying gross margin in the quarter and lower overhead costs  Steel prices on significantly lower level than last year, but stabilized during the quarter  Decision to restructure the businesses in Czech

  4. Slide 4: Non-recurring items

    Non-recurring items  Q1 EBIT affected by non-recurring items of 45 MSEK  36 MSEK Restructuring of Czech and Slovak operations  6 MSEK related to Reduction of employees  3 MSEK Closing cost Estonian production operation  Approximately 16 MSEK will affect cash-flow Slide 4

  5. Slide 5: Financials in detail

    FINANCIALS IN DETAIL Slide 5

  6. Slide 6: Quarterly comparison to last year

    Quarterly comparison to last year SEK M Q1 Q2 Q3 Q4 Net sales 2015 1 104 1 104 966 981 Net sales 2016 978 Change -11% Operating result 2015 10 10 -117 -17 Inventory losses 2 2 3 5 Non-recurring items 0 0 124 0 Underlying operating result 2015 12 12 10 -12 Tonnage-, price- and mix effects -17 Change

  7. Slide 7: Q1 tonnage – Tonnage mainly affected by lower sales in Czech and Slovakia

    Q1 tonnage – Tonnage mainly affected by lower sales in Czech and Slovakia Growth in tonnage and sales (%)  Net sales decreased by 11% vs Q1 2015 Q1 10% Change in Net Sales -11%  Tonnage -5% 5%  Price/Mix -6% 1%  Currency 0% 0% -2% -1% -1%  Stable tonnage main business areas -5% -3% -5% Q1 -6% C

  8. Slide 8: Gross margin – Improvement compared to 2015

    Gross margin – Improvement compared to 2015 Gross profit (SEK M) and gross margin (%)  Lower sales level affected gross profit 200 20,0% negatively by SEK 17 M 180 19,0% 160 144 18,0%  Negative effect mitigated by 141 144 140 127 137 127 17,0% strengthened underlying gross margin of 125 124 124 12

  9. Slide 9: Working capital – Back to normal level

    Working capital – Back to normal level Working capital (SEK M) 600 20,0%  Q1 Period-end working capital decreased by SEK 22 M compared to 575 500 last year 512 525 479 486 15,0% 400 436 465 426 464  Accounts payables back to normalized 388 level after being unusually low levels at 300 10,0% the en

  10. Slide 10: Cash-flow – Strong cash flow during the quarter

    Cash-flow – Strong cash flow during the quarter Cash-flow from operating activities (SEK M) 60 120  Q1 operating cash-flow of SEK 51 M (-54) 40 49 51 80 42 37  Investment cash-flow of SEK -2 M (-4) 20 40  Rolling twelve months operating cash 0 0 flow of SEK 12 M -18 -8 -20 -28 -40  Net debt of S

  11. Slide 11: Business areas status Q1 2016

    BUSINESS AREAS STATUS Q1 2016 Slide 11

  12. Slide 12: BA Sweden – Sales and earnings affected by lower prices

    BA Sweden – Sales and earnings affected by lower prices uEBIT (SEK M) and sales growth (%) 20 20%  Underlying market demand stable but Q1 was negatively affected by the Easter 15 15% holidays 10 13 12 13 10% 5 8 10 10 5%  Tonnage decreased by 2% vs Q1 2015 0 5 5 6 0 0%  Net sales fell by 11% comp

  13. Slide 13: BA Finland – Improved underlying result

    BA Finland – Improved underlying result uEBIT (SEK M) and sales growth (%) 20 20%  Demand in Finland recovered after Q4 slow-down 15 15% 10 12 13 12 12 10%  Tonnage flat compared to Q1 2015 10 11 5 8 5% 2 7  Net sales decreased by 7% compared to 0 0% -3 Q1 last year on the back of lower steel -5

  14. Slide 14: Other Units – Restructuring in Czech and Slovak initiated

    Other Units – Restructuring in Czech and Slovak initiated uEBIT (SEK M) and sales growth (%)  Tonnage in Czech and Slovak markets 10 10% affected by the restructuring decision of 5 5% the business 0 0% -5 -9 -5 -6 -7 -5 -5 -7 -9 -7 -5%  Net sales decreased by 25% vs Q1 2015 -10 -10 -10% and amount

  15. Slide 15: Outlook

    OUTLOOK Slide 15

  16. Slide 16: Business outlook

    Business outlook  Demand in Finland did recover from Q4 low level  No significant changes in demand expected in near future  Steel prices are increasing. Started with flat products but are now seen in all product groups  With renewed focus on main markets and new Group structure we are in a good

  17. Slide 17: Summary and conclusions

    Summary and conclusions  Strong operational cash-flow in quarter and positive during rolling 12 months  Activities to increase margins and reduce costs are giving results  Demand on a stable level and increasing prices  Exit activities in Czech Republic and Slovakia will have a positive effect o

  18. Slide 18: Q&A

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  19. Slide 19: Appendix Financial Information

    APPENDIX FINANCIAL INFORMATION Slide 19

  20. Slide 20: January – March

    January – March Q1 Q1 Change SEK M 2016 2015 Net sales 978 1,104 -126 Underlying EBIT 9 12 -3 % of Sales 1.0% 1.1% -0.1% Inventory gains/losses -9 -2 -7 Non-recurring items -45 - -45 EBIT -45 10 -55 % of Sales Neg 0.9 - Financial net -8 -10 +2 Earnings before tax -53 0 -53 Net earnings -53 0 -53 Num

  21. Slide 21: Balance sheet

    Balance sheet Mar Mar Change SEK M 2016 2015 Non-current assets 895 1,073 -178 Inventories 535 584 -49 Accounts Receivable 469 596 -127 Other Receivables 59 74 -15 Cash 63 10 +53 Total Assets 2,021 2,337 -316 Equity 734 711 +23 Interest bearing liabilities 628 815 -187 Accounts payable 444 610 -166

  22. Slide 22: Appendix: Tonnage development

    Appendix: Tonnage development Tonnage (‘000 tons) 5% 140 120 0% 100 108 109 110 108 108 103 95 97 93 97 80 -5% 60 40 -10% 20 0 -15% Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Tonnage Tonnage growth, % Slide 22

  23. Slide 23: Appendix: Sales per product area

    Appendix: Sales per product area Q1 Sales (SEK M) 500 400 447 382 300 346 310 200 202 177 100 47 52 62 57 0 Long Flat Stainless Aluminium Other 2016 2015 Slide 23

  24. Slide 24: Appendix: Sales per business solution

    Appendix: Sales per business solution Q1 Sales (SEK M) 600 500 536 400 456 428 404 300 200 100 140 118 0 Direct Inventory Service 2016 2015 Slide 24

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