Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Shareholder Meeting (April 2019)
20 slides from Bulten Ab's shareholder meeting presentation, Apr 25, 2019
Slide 1: Annual General Meeting 2019
ANNUAL GENERAL MEETING 2019 ANDERS NYSTRÖM, PRESIDENT AND CEO 25 APRIL 2019
Slide 2: My First Impression
MY FIRST IMPRESSION – Anders Nyström new CEO as of February 8, 2019 COMPANY SPIRIT • Integrity • Pride • Continuity “A truly solid company” CUSTOMERS STRONG FINANCIALS OFFERING EDGE • Strong brands • Security for • FSP excellence • Confidence customers • Global production • Potential for • Long‐term
Slide 3: 2018 in Summary
2018 IN SUMMARY Good growth thanks to ramping‐up of previously won FSP contracts which, at anticipated full production in 2021, are expected to contribute an annual sales value of EUR 65 million Continued increase in market shares New FSP contracts for electric cars Continuing to invest in h
Slide 4: A Passenger Car Consists of 25 to 50 Kilos of Fasteners
A PASSENGER CAR CONSISTS OF 25 TO 50 KILOS OF FASTENERS Of Bulten’s sales, approximately 25% goes to powertrain and 75% to chassis The weight of The cost of Of which the cost all fasteners in a car is between all fasteners in a car is between per engine is between 20‐50 kg 70‐250 EUR 20‐40 EUR AGM 2
Slide 5: Strong Customer Base and Relationships with Major Vehicle OEMs and Tier 1 Suppliers
STRONG CUSTOMER BASE AND RELATIONSHIPS WITH MAJOR VEHICLE OEMS AS WELL AS TIER 1 SUPPLIERS HEAVY VEHICLE OEM’S LIGHT VEHICLE OEM’S 15% 76% SUPPLIERS 9% Selection of customers. Share of Bulten’s sales YTD THREE MONTHS REPORT 2019 5
Slide 6: Bulten Has Its Strongest Position in Northern Europe but Will Grow in Emerging Markets
BULTEN HAS ITS STRONGEST POSITION IN NORTHERN EUROPE BUT WILL GROW IN EMERGING MARKETS GEOGRAPHIC SALES DISTRIBUTION BULTEN MARKET SHARE JANUARY – MARCH 2019 DEVELOPMENT 20% 17% 17% 17% 18% 14% Great Britain, 26.3% 15% 11% 2,7 3,5 5,0 Germany, 16.3% 10% 1,3 26,3 5% Sweden, 16.1% 0% Poland, 0.9% Mark
Slide 7: Full Service Provider (FSP) to International Automotive Industry
FULL SERVICE PROVIDER (FSP) TO INTERNATIONAL AUTOMOTIVE INDUSTRY Bulten is one of few players in Europe that has a proven track record and can handle complex full service contracts for the automotive industry Complete responsibility throughout the entire value chain of fasteners Offers a full
Slide 8: Lower In Place Cost (IPC)
LOWER IN PLACE COST (IPC) Bulten’s full service offer aims to optimize IPC EQUALS THE TOTAL COST, THE SO CALLED IN PLACE COST the total cost (IPC) for the customer The cost of the physical fastener normally Cost profile for a fastener amounts to 15% of the total cost 15% • Fastener cost Bulten
Slide 9: Predicted Stronger Bulten Growth vs the Market
PREDICTED STRONGER BULTEN GROWTH VS THE MARKET Future contracts Market Existing contracts & market growth Ramp up of new contracts New signed not yet started contracts & increased delivery value volatility and model shifts = Bulten growth in EV’s EUR 20 million/year Ramp up and new contracts 59% 41%
Slide 10: Lean and Well Positioned Logistics and Manufacturing Footprint
BULTEN HAS A LEAN AND WELL POSITIONED LOGISTICS AND MANUFACTURING FOOTPRINT AND FLEXIBLE SUPPLY CHAIN LEAN AND WELL POSITIONED LOGISTICS AND IN‐HOUSE VS. TRADING MANUFACTURING FACILITIES (SALES VALUE) LOGISTICS 2% OUTSOURCED IN‐HOUSE PRODUCTION PRODUCTION 38% 60% Global logistics footprint Bulte
Slide 11: Sustainability – A Natural Part of Our Business
SUSTAINABILITY – A NATURAL PART OF OUR BUSINESS SUSTAINABILITY FOCUS AREAS BASED ON BULTEN’S VALUE CHAIN New solutions that have an environmental and Continuous development of products, processes economic impact throughout the value chain; and technology: Enabling customer to improve the choice of m
Slide 12: Trends That Affect Bulten
TRENDS THAT AFFECT BULTEN TREND IMPLICATIONS FOR BULTEN BULTEN ACTIONS GLOBALIZATION Vehicle manufacturers are increasing their production in Follow customers and establish on selected markets. emerging countries and in new markets. Expectations and higher demands on contributing to Systematic work
Slide 13: Electrification – An Opportunity for Bulten
ELECTRIFICATION – AN OPPORTUNITY FOR BULTEN The growing electrification is a favorable development for Bulten Today, it is primarily hybrids, cars with combined combustion and electric engines, introduced on the market with a growing demand With double powertrains, the number of fasteners in t
Slide 14: Shareholder Information
SHAREHOLDER INFORMATION 10 LARGEST HOLDERS (2019‐02‐28 – 2018‐03‐29) Shareholder No. of Share of shares votes SHARE DEVELOPMENT TEN LARGEST SHAREHOLDERS, and 31 MARCH 2016 capital (%) 1. Volito AB 4 750 000 22.6 2. Öresund Investment AB 2 900 000 13.8 3. Lannebo fonder 2 648 433 12.6 4. Bulten AB 96
Slide 15: Q1 in Summary
Q1 IN SUMMARY
Slide 16: Operational Highlights for the Quarter
OPERATIONAL HIGHLIGHTS FOR THE QUARTER Net sales SEK 810 m (853) Q1 FINANCIAL SUMMARY (MSEK) 2019 2018 ∆ Operating earnings amounted to SEK 58 m (67) Net sales 810 853 ‐5.1% Gross profit 159 159 ‐4 EBIT margin 7.1% Earnings before depreciation (EBITDA) 91 88 3 – Lower sales volumes Operating e
Slide 17: Volumes and Raw Material Prices Affected the Targets
VOLUMES AND RAW MATERIAL PRICES AFFECTED THE TARGETS Growth Margin ROCE EPS Dividend Profitable organic Operating At least 15%. EPS At least one third growth more margin of at development of net earnings strongly than the least 7%. after tax. industry average. Q1 R12 Q1 R12 Q1 R12 Q1 R12 PROPOSED RE
Slide 18: In Focus 2019
4 IN FOCUS 2019
Slide 19: In Focus 2019
IN FOCUS 2019 Continue ramping up won contracts Secure continued efficient, profitable production Begin capacity investments in Poland Relocate the production plant in China Cultivate the American market further Win new FSP contracts Continue to promote and develop innovation and susta
Slide 20: Bulten - A Stronger Solution
BULTEN ‐ A STRONGER SOLUTION