Slide 1: First Quarter 2017 Earnings Conference
First Quarter 2017 Earnings Conference 27 April, 2017
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 Group
Gränges Group • A global leader in the market for rolled products for aluminium heat exchangers • Production in Sweden, China and in the US • R&D Centre in Sweden and China • Headquarter in Stockholm • Gränges is represented all over the world • 1,500 employees • Net sales of SEK 10 billion includin
Slide 4: First quarter 2017 – Strong sales and operating profit in the first quarter
First quarter 2017 – Strong sales and operating profit in the first quarter Good demand across regions –strong development in China Sales volume increased by 110% to 94.8 ktonnes – organic growth 7% Adjusted operating profit increased to SEK 237 million – SEK 172 million excluding the acquisit
Slide 5: Market growth of 2% expected for full year 2017
Market growth of 2% expected for full year 2017 Light vehicle production growth (YoY) Region Q1 2017 Q2 2017 outlook FY 2017 outlook Asia +3% +9% +3% Europe +7% -5% +2% Americas +3% +1% -0% Global +4% +3% +2% Source: IHS Automotive, March 16, 2017 5
Slide 6: Strong development in Asia and continued strong growth in Americas
Strong development in Asia and continued strong growth in Americas – both organic and through acquisition Gränges sales volume (ktonnes) Asia Europe Americas +613% +9% +2% 2016 2017 2016 2017 2016 2017 Strong sales to Chinese Growth for heat exchanger Sales volume from acquired automotive cust
Slide 7: Positive trend continues in first quarter and is further strengthened by the US acquisition
Positive trend continues in first quarter and is further strengthened by the US acquisition Rolling 12 months sales volume and adjusted operating profit Adjusted operating profit (SEK million) Sales volume (ktonnes) Sales volume Adjusted operating profit 7
Slide 8: Strong sales and operating profit in the first quarter
Strong sales and operating profit in the first quarter Financial overview SEK million Q1 Rolling 12 months 2017 2016 Change Mar 2017 Dec 2016 Change Sales volume (ktonnes) 94.8 45.1 110.0% 288.8 239.1 20.8% Net sales 2,892 1,360 112.7% 8,740 7,207 21.3% Adjusted operating profit1 237 155 52.7% 769 6
Slide 9: Net debt was SEK 2.7 billion at the end of first quarter
Net debt was SEK 2.7 billion at the end of first quarter Change in net debt 2.1 2.1 MSEK Cash flow before financing SEK 75 million Net Debt1 Adjusted Change in Other Investments & FX & Other Net Debt1 31 Dec EBITDA working operating Divestments 31 Mar 2016 capital items of fixed assets 2017 Net debt
Slide 10: Outlook
Outlook Global Light Vehicle Production is expected to grow by 3%1 in Q2 2017 – for the full year 2017 a growth of 2% is projected Automotive HEX - above market growth is expected in Europe and the Americas, while growth in line with or slightly lower than the market is projected in Asia in Q2
Slide 11: Summary of first quarter
Summary of first quarter Continued good development in all our regions US operations continues according to plan, close to maximum capacity Sales volume 94.8 ktonnes Adjusted operating profit rose to SEK 237 million Net debt of 2.1x EBITDA 11
Slide 12: Q&A
Q&A Johan Menckel, CEO Oskar Hellström, CFO
Slide 13: Gränges
GRANGES