Slide 1: Second Quarter 2016 Earnings Conference
Second Quarter 2016 Earnings Conference 21 July, 2016
Slide 2: Today's presenters
Today’s presenters JOHAN OSKAR MENCKEL HELLSTRÖM CEO CFO Since: 2012 Since: 2011 Gränges since: 2004 22
Slide 3: Gränges is the global leader with a market share of 20%
Gränges is the global leader with a market share of 20% SHANGHAI, CHINA FINSPÅNG, SWEDEN 46% Seoul 16% New York 38% Tokyo Pune Sao Paolo Sales and Technical support Sales destinations Percentage of sales volume FY 2015 3
Slide 4: Summary second quarter 2016 – Best quarter so far
Summary second quarter 2016 – Best quarter so far Sales volume increased by 7.0% Adjusted operating profit rose to SEK 179 million Higher sales volume and improved productivity contributed to higher adjusted operating profit Earnings per share of SEK 1.53 Cash flow before financing activit
Slide 5: Market growth of 3% expected for full year 2016
Market growth of 3% expected for full year 2016 Light vehicle production growth (YoY) Region Q2 2016 H2 2016 outlook FY 2016 outlook Asia +2% +4% +3% Europe +7% +2% +3% Americas 0% +3% +1% Global +3% +4% +3% Source: IHS Automotive, June 15, 2016 5
Slide 6: Recovery in Asia and continued strong development in Europe and North America
Recovery in Asia and continued strong development in Europe and North America Gränges sales volume (ktonnes) Asia Europe Americas +4% +3% 19.6 20.8 20.4 17.6 17.5 16.4 16.6 16.9 +23% 14.9 15.4 7.8 9.2 7.4 6.5 6.0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2015 2016 2015 2016 2015 2016 Strong sal
Slide 7: US acquisition still pending, approval expected late July
US acquisition still pending, approval expected late July Gränges in process to acquire Noranda’s downstream division Assets and business valued to USD 324.2 million on cash and debt free basis US bankruptcy court hearing to approve Gränges as buyer now scheduled for 28 July, 2016 Closing ex
Slide 8: Positive trend continues in second quarter
Positive trend continues in second quarter Rolling 12 months sales volume and adjusted operating profit 200 563 600 Adjusted operating profit (SEK million) 541 541 521 528 494 463 500 180 437 444 Sales volume (ktonnes) 401 169 374 372 164 166 362 371 163 163 400 348 160 160 160 160 161 160 158 159 1
Slide 9: Strong sales volume and earnings in the second quarter
Strong sales volume and earnings in the second quarter Financial overview SEK million Q2 January - June 2016 2015 Change 2016 2015 Change Sales volume (ktonnes) 46.5 43.4 7.0% 91.6 86.1 6.4% Net sales 1,442 1,506 -4.2% 2,802 2,962 -5.4% Adjusted operating profit1 179 158 13.6% 335 313 7.0% Adjusted
Slide 10: Net debt was SEK million at the end of second quarter
Net debt was SEK 335 million at the end of second quarter Change in net debt 0 0.4 Cash flow before financing SEK 157 million 0.4 Net debt position (SEK million) -100 26 -75 -21 -200 -300 228 -149 -316 -27 -335 -400 Net debt Adjusted Change in Other Investments & FY15 FX & Net debt Q1 2016 EBITDA wo
Slide 11: Outlook
Outlook Global Light Vehicle Production is expected to grow by 4%1 in the second half of 2016 Gränges’ sales volume is expected to show a higher growth than the market - but not as high growth as in second quarter - during second half of 2016 Higher than market growth is expected in Europe and
Slide 12: Summary of second quarter
Summary of second quarter Best quarter for Gränges so far Sales volume increased by 7.0% and reached new all-time-high at 46.5 ktonnes Adjusted operating profit rose to SEK 179 million Solid financial position US acquisition in process 12
Slide 13: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 14: GRANGES
GRANGES