Bulten Ab · OMXSTO:BULTEN

Bulten Ab — Q3 2021 Earnings Presentation

23 slides from Bulten Ab's earnings presentation, Oct 28, 2021

  1. Slide 1: Nine Months Report, Jan-Sep 2021

    NINE MONTHS REPORT, JAN-SEP 2021 28 OCTOBER 2021, AT 15.30 CET

  2. Slide 2: Nine Months Report, Jan-Sep 2021

    Nine Months Report, Jan-Sep 2021  Telephone/audio conference Direct Link Audiocast: 28 October 2021, at 15.30 CET http://www.financialhearings.com/event/13094 Call in to teleconference:  Presented by: SE: +46850558366 UK: +443333009035 – Anders Nyström, President and CEO US: +16467224904 – Anna Åk

  3. Slide 3: Agenda

    Agenda 1. Bulten in brief 2. Market development 3. Third quarter 2021 4. In focus 2021

  4. Slide 4: Strong customer base and relationships with major vehicle OEMs as well as Tier 1 suppliers

    Strong customer base and relationships with major vehicle OEMs as well as Tier 1 suppliers Heavy Vehicle OEM’s Other Akcom Jabil AB Volvo Renault Garmin Miele Mack Scania GE Mindary MAN UD Trucks Foxconn Philips 6,8% Hitachi Sony Honeywell TE Suppliers 10,0% Autoliv Lear Corporation Aisin Magna CATL

  5. Slide 5: Strong geographical footprint

    Strong geographical footprint SWEDEN Gothenburg, Arendal, Hallstahammar Production Head office - Gothenburg Sales Development GREAT BRITAIN Pembroke and Scunthorpe USA Streetsboro, Ohio POLAND Bielsko-Biala LOGISTICS CENTERS CHINA GERMANY In total, approx. 40 logistics RUSSIA TAIWAN Bergkamen Nizhny

  6. Slide 6: 2. Market Development

    2. Market Development

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

    LMC Automotive short-term market view  LMC Automotive estimate global automotive production, full-year 2021 +31% – Forecasts radically reduced in Q3 2021 compared to Q4 2020 – Full-year production of light vehicles in 2021 estimated up by 2.8% vs 2020 – Full-year production of heavy commercial vehi

  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) 20% 35% 15% 10.7% 9.8% 30% 10% 6.8% 25% 5% 2.8% 20% 0% 15% 8.1% -5% 10% 5.4% -5.6% 5% 1.3% -10% 0% -15% -5% -1

  9. Slide 9: 3. Third Quarter 2021

    3. Third Quarter 2021

  10. Slide 10: Events during Q3 2021

    Events during Q3 2021  Lack of semiconductors, which affected the entire industry throughout 2021, was a clear inhibiting factor for Bulten in Q3.  Lower volume, lower capacity utilization and record high raw material prices affected profitability negatively during the quarter, partly offset by ef

  11. Slide 11: New contracts Q3 2021

    New contracts Q3 2021  Extension of the scope of an existing FSP contract worth appr. SEK 68 million per year.  A new FSP contract from a new customer for Bulten, related to an electric vehicle program under development. The contract value is approximately SEK 220 million per year.  A strategical

  12. Slide 12: Semiconductor shortage – a global problem

    Semiconductor shortage – a global problem Source: LMC Automotive Flash Alert September 2021 NINE MONTHS REPORT, JAN-SEP 2021 12

  13. Slide 13: Increase of steel prices

    Increase of steel prices Iron Ore dropped significantly in Aug-Sep  Imbalance between supply and demand USD/ton  Prices have continued to increase significantly during the quarter  Time lag for price compensation from customers Coaking Coal on all time high levels in Aug-Sep Scrap has dropped sin

  14. Slide 14: Sales: Decreased sales, lack of semiconductors affected

    Sales: Decreased sales, lack of semiconductors affected  Sales 764 MSEK (853), down -10.5% in SEK m Net Sales Q3 vs last year 1200 – Sales slowed down in Q3, due to lack of 1000 semiconductors that caused disruptions in 800 the production in the automotive 600 industry. 400 – Strong Q3 last year du

  15. Slide 15: EBIT: Lower volumes affected margins

    EBIT: Lower volumes affected margins  Quarter EBIT SEK 31 million (40) with Quarter EBIT margin EBIT margin amounted to 4.1% (4.7) in 9% Q3 7% 5,2% – Lower volumes and capacity utilization 5% 4,1% 4,7% 3,8% – Lack of semiconductors 3% – Adjusted production capacity to meet 1% lower demand -1% – Hig

  16. Slide 16: Group summary Q3 2021

    Group summary Q3 2021 Q3 JAN - SEP LTM FY FINANCIAL SUMMARY OCT 20 - 2021 2020 ∆ 2021 2020 ∆ 2020 ∆ SEP 21 Net sales 764 853 -10.5% 2,777 2,115 31.3% 3,857 3,195 20.7% Gross profit 140 161 -21 542 355 187 754 567 187 Earnings before depreciation (EBITDA) 74 80 -6 310 145 165 442 277 165 Operating ea

  17. Slide 17: Cash flow, Balance Sheet and Net Debt

    Cash flow, Balance Sheet and Net Debt Q3 JAN-SEP FULL YEAR CASH FLOW STATEMENT (MSEK) 2021 2020 2021 2020 2020 Cash flow from operating activities before changes in working capital 64 75 260 113 234 Cash flow from operating activities including changes in working capital -122 157 3 271 447 Cash flow

  18. Slide 18: Key indicators

    Key indicators FULL YEAR FULL YEAR THE GROUP, 12 MONTHS OCT 20-SEP 21 OCT 19-SEP 20 2020 RETURN INDICATORS Return on capital employed, % 11.7 2.5 5.4 Adjusted Return on capital employed, % 11.6 3.1 5.2 Return on capital employed, (excluding lease, IFRS 16) % 13.5 2.6 5.9 Adjusted Return on capital e

  19. Slide 19: 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 compound annual growth least 8%. 2021-09-30 FULL YEAR GUIDE- rate (CAGR) of 10%. RTM 2020 LINES . Q3 RTM Q3 RTM RTM 2020 Average net working 21.0 22.4 20-25 capital

  20. Slide 20: 4. In focus

    4. In focus

  21. Slide 21: In focus 2021

    In focus 2021  Closely monitor and adapt to the current situation in the industry – Shortages of semiconductors – High steel prices  Maintain strict cost and cash flow control  Be prepared for recovery of customer production  Continue margin improvement initiatives  Accelerate innovation and su

  22. Slide 22: Bulten Strategy

    BULTEN STRATEGY Stronger 24 STRONG POSITION Strong offer including sustainability and innovation FSP concept 2.0, geographic proximity, forefront of innovation and sustainability leadership GROWTH Sales SEK 5 B 2024 Organic and Acquisition growth CAGR 10% MARGIN EXPANSION EBIT margin Synergies, econ

  23. Slide 23: Bulten - A Stronger Solution

    BULTEN - A STRONGER SOLUTION

Bulten — Q3 2021 Earnings Presentation on 6ix