Bulten Ab · OMXSTO:BULTEN
Bulten Ab — Q2 2022 Earnings Presentation
24 slides from Bulten Ab's earnings presentation, Jul 13, 2022
Slide 1: Six Months Report, Jan-June 2022
SIX MONTHS REPORT, JAN-JUNE 2022 13 JULY 2022, AT 11.00 CEST
Slide 2: Six Months Report, January-June 2022
SIX MONTHS REPORT, JANUARY-JUNE 2022 Telephone/audio conference 13 July Direct Link Audiocast: 2022, at 11.00 CEST https://tv.streamfabriken.com/bult en-q2-2022 Presented by: – Anders Nyström, President and CEO Call in to teleconference: – Anna Åkerblad, CFO SE: +46850558350 UK: +44333300903
Slide 3: Agenda
AGENDA 1. Bulten in brief 2. Market development 3. Second quarter 2022 4. In focus 2022
Slide 4: Bulten in brief
BULTEN IN BRIEF Source: All above numbers are from the Annual Report 2021 SIX MONTHS REPORT 2022 4
Slide 5: 2. Market development
2. MARKET DEVELOPMENT
Slide 6: A quarter marked by a multi-challenge world
A QUARTER MARKED BY A MULTI-CHALLENGE WORLD Continued shortage of semiconductors causing supply chain disruptions, especially at the beginning of the quarter Production slow-downs due to COVID-19 lockdowns in China causing lower production levels for the automotive OEMs, mostly in China but also
Slide 7: LMC Automotive short-term market view
LMC AUTOMOTIVE SHORT-TERM MARKET VIEW Q2 light vehicle production (according to LMC Automotive) – A decrease by -0.8% for Q2 2022, compared to same period 2021 2022 full-year vehicle production estimate (according to LMC Automotive) – Production of light vehicles in 2022 estimated up by 5.7% vs
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) 15% 35% 10% 7,1% 30% 5,7% 4,9% 4,9% 5% 3,0% 25% 20% 14,8% 0% 15% -5% 10% 5,0% 5% 1,1% 0,1% -10% 0% -15% -5% -1
Slide 9: Raw material price development
RAW MATERIAL PRICE DEVELOPMENT Steel – wire rod Q2 has been characterized by cost inflation related DSV Index indicated a new all time high to energy and base commodities which impact steel price level in Q2 2022 prices. 1 400 1 200 The demand situation is still high in Europe which 1 000 leads to s
Slide 10: Steel price development
STEEL PRICE DEVELOPMENT 1800 Cold Rolled Coil 1600 1400 1200 Cold Rolled Coil has plunged in Europe. The main drivers 1000 are weakening demand, as well as price pressure from 800 600 Turkey and Russia. Analysts anticipate EU steel mills to 400 reduce capacity to defend price levels. 200 0 2 Jan 1
Slide 11: Other indicators
OTHER INDICATORS Electricity & Gas The European producer price for electricity and gas was 213.80 points in January 2022. This was a record high. Source: EUROSTAT Wages The labour cost in EU is expected to be 112.14 points by the end of the second quarter. In the long-term, the EU labour cost is
Slide 12: 3. Second quarter 2022
3. SECOND QUARTER 2022
Slide 13: Events during Q2 2022
EVENTS DURING Q2 2022 A successful divestment of our Russian operation was finalized during the quarter, eliminating risks connected to the Russian market. Several smaller business wins in areas we see high potential long-term. Bulten has the highest year-to-date rate of new business wins ever.
Slide 14: Higher sales and completed divestment of Russian operation
HIGHER SALES AND COMPLETED DIVESTMENT OF RUSSIAN OPERATION Q2 2022 Slightly higher sales to automotive OEMs Continued sales growth in other industries outside the automotive sector SIX MONTHS REPORT 2022 14
Slide 15: Change R12M July 21 – June 22
CHANGE R12M JULY 21 – JUNE 22 Net sales per customer group, Q2 3 757 SIX MONTHS REPORT 2022 15
Slide 16: EBIT impacted by increased costs
EBIT IMPACTED BY INCREASED COSTS Quarter EBIT margin Q2 2022 Reported EBIT SEK 41 (55) million Adjusted EBIT SEK 51 (55) million – Divestment costs of Russian operation (SEK -10 million) impacted the EBIT margin – Continued increased costs in energy, steel rods and transports, combined with contin
Slide 17: Group summary Q2 2022
GROUP SUMMARY Q2 2022 Q2 R12M FY FINANCIAL SUMMARY JULY 21 - 2022 2021 ∆ 2021 ∆ JUNE 22 Net sales 1,006 910 10.5% 3,757 3,730 0.7% Gross profit 189 176 13 702 710 -8 Earnings before depreciation (EBITDA) 84 96 -12 280 400 -120 Operating earnings (EBIT) 41 55 -14 109 232 -123 Operating margin, % 4.1
Slide 18: Cash flow, balance sheet and net debt
CASH FLOW, BALANCE SHEET AND NET DEBT Q2 JAN-JUNE FULL YEAR CASH FLOW STATEMENT (MSEK) 2022 2021 2022 2021 2021 Cash flow from operating activities before changes in working capital 75 81 176 196 332 Cash flow from operating activities including changes in working capital -19 32 75 125 48 Cash flow
Slide 19: Key indicators
KEY INDICATORS R12M FULL YEAR THE GROUP, 12 MONTHS JULY 21-JUNE 22 JULY 20-JUNE 21 2021 RETURN INDICATORS Return on capital employed, % 4.4 12.6 9.7 Adjusted return on capital employed, % 8.1 12.5 9.7 Return on capital employed, (excluding financial lease) % 4.9 14.2 11.0 Adjusted return on capital
Slide 20: 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 2022-06-30 FULL YEAR GUIDE- compound annual growth least 8% R12M 2021 LINES rate (CAGR) of 10% Average net working Q2 R12M Q2 R12M Q2 2021 23.0 20.7 20-25 capital as
Slide 21: 4. In focus
4. IN FOCUS
Slide 22: In focus 2022
IN FOCUS 2022 Be prepared for recovery of customer production Intensify customer pricing activities to minimize impact of inflation driven cost increases Maintain momentum on innovation and sustainability activities Continue identification of M&A target in North America Win incremental bus
Slide 23: Strategy
STRATEGY STRONG POSITION STRONG OFFER Including sustainability and FSP concept, geographic proximity, forefront of innovation and sustainability innovation leadership GROWTH SALES 5 BSEK Organic and acquisition growth, inside and outside automotive CAGR 10% MARGIN EXPANSION EBIT MARGIN Economy of sc
Slide 24: Bulten - a stronger solution
BULTEN - A STRONGER SOLUTION