Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q2 2021 Earnings Presentation
22 slides from Bulten Ab's earnings presentation, Jul 13, 2021
Slide 1: Six Months Report, Jan-June 2021
SIX MONTHS REPORT, JAN-JUNE 2021 13 JULY 2021, AT 11.00 CET
Slide 2: Six Months Report, Jan-June 2021
Six Months Report, Jan-June 2021 Telephone/audio conference Direct Link Audiocast: 13 July 2021, at 11.00 CET https://tv.streamfabriken.com/bulten-q2-2021 Presented by: Call in to teleconference: SE: +46850558350 – Anders Nyström, President and CEO UK: +443333009264 – Anna Åkerblad, CFO SIX MONT
Slide 3: Agenda
Agenda 1. Bulten in brief 2. Market development 3. Second quarter 2021 4. In focus 2021
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 5,6% Hitachi Sony Honeywell TE Suppliers 10,1% Autoliv Lear Corporation Aisin Magna CATL
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
Slide 6: 2. Market Development
2. Market Development
Slide 7: LMC Automotive short-term market view
LMC Automotive short-term market view LMC Automotive estimate global automotive production, FY 2021 vs FY 2020 – Production of Light Vehicles in 2021 estimated up by 13,8% – Production of Heavy Commercial Vehicles (>15 t) in 2021 up by 6,6% – For Bulten’s mix towards automotive, up 13,0% • Light V
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% 13.8% 35% 15% 9.7% 30% 10% 25% 5% 2.8% 3.2% 20% 0% 15% 10% 6.6% 5.5% -5% -5.6% 5% -10% 0% -15% -5% -1.3% -
Slide 9: 3. Second Quarter 2021
3. Second Quarter 2021
Slide 10: Events during Q2 2021
Events during Q2 2021 The momentum from Q4 2020 and Q1 2021 was disturbed during Q2. The lack of semiconductors caused disruptions in the production in the entire industry. This shortage might continue during 2021. Lower volume and capacity utilization resulted in a lower profitability during th
Slide 11: Semiconductor shortage – a global problem
Semiconductor shortage – a global problem SIX MONTHS REPORT, JAN-JUNE 2021 11
Slide 12: Increase of steel prices: Cold rolled coil MEPS
Increase of steel prices: Cold rolled coil MEPS 1400 +100% Prices has increased approx. 100% versus 2014-2020 average 1200 1000 Imbalance between supply and 800 demand, especially in Europe 600 Time lag for price compensation 400 from customers 200 0 feb-16 jul-16 okt-17 aug-18 feb-21 jun-14 m
Slide 13: Sales: Increased sales, weak comparables
Sales: Increased sales, weak comparables Sales 910 MSEK (441), up 106% in Q2 SEK m Net Sales vs last year 1200 – Strong growth but weak comparables. 1000 800 Sales slowed down in Q2, due to lack of semiconductors that caused disruptions in 600 the production in the automotive 400 industry. 200 0 Q
Slide 14: EBIT: Lower volumes affected margins
EBIT: Lower volumes affected margins Quarter EBIT margin Quarter EBIT SEK 55 million (-59) with EBIT margin amounted to 6.0% (-13.3) 9% 6,0% 6,3% in Q2 7% 5% 3% – Lower volumes and capacity utilization 1% -1% – Lack of semiconductors -3% -5% – Higher steel prices -7% -9% -11% – Currency effects of
Slide 15: Group summary Q2 2021
Group summary Q2 2021 Q2 JAN - JUNE LTM FY FINANCIAL SUMMARY JULY 20 - 2021 2020 ∆ 2021 2020 ∆ 2020 ∆ JUNE 21 Net sales 910 441 106.2% 2,013 1,262 59.5% 3,946 3,195 23.5% Gross profit 176 40 136 402 194 208 775 567 208 Earnings before depreciation (EBITDA) 96 -18 114 236 65 171 448 277 171 Operating
Slide 16: Cash flow, Balance Sheet and Net Debt
Cash flow, Balance Sheet and Net Debt Q2 JAN-JUNE FULL YEAR CASH FLOW STATEMENT (MSEK) 2021 2020 2021 2020 2020 Cash flow from operating activities before changes in working capital 81 -9 196 38 234 Cash flow from operating activities including changes in working capital 32 51 125 114 447 Cash flow
Slide 17: Key indicators
Key indicators FULL YEAR FULL YEAR THE GROUP, 12 MONTHS JULY 20-JUNE 21 JULY 19-JUNE 20 2020 RETURN INDICATORS Return on capital employed, % 12.6 0.2 5.4 Adjusted Return on capital employed, % 12.5 2.1 5.2 Return on capital employed, (excluding financial lease) % 14.2 0.0 5.9 Adjusted Return on capi
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 compound annual growth least 8%. 2021-06-30 FULL YEAR GUIDE- rate (CAGR) of 10%. RTM 2020 LINES . Q2 RTM Q2 RTM RTM 2020 Average net working 19.4 22.4 20-25 capital
Slide 19: 4. In focus
4. In focus
Slide 20: In focus 2021
In focus 2021 Closely monitor and adapt to the current situation in the industry – Shortages of semiconductors – Higher steel prices Maintain strict cost and cash flow control Be prepared for recovery of customer production Continue margin improvement initiatives Accelerate innovation and
Slide 21: 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
Slide 22: Bulten - A Stronger Solution
BULTEN - A STRONGER SOLUTION