SIX MONTHS REPORT, JAN JUN 2017

Transcription

1 SIX MONTHS REPORT, JAN JUN 2017 TELEPHONE/AUDIO CONFERENCE 12 JULY 2017, AT CET TOMMY ANDERSSON, PRESIDENT AND CEO HELENA WENNERSTRÖM, EVP AND CFO DIRECT LINK AUDIOCAST: Q TELECONFERENCE: SE: , UK: , US:

2 SAVE THE DATE CAPITAL MARKET DAY SEPTEMBER 21, 2017

3 AGENDA 1. Bulten in brief 2. Market development 3. Second quarter Going forward

4 BULTEN IS A LEADING SUPPLIER OF FASTENERS TO THE INTERNATIONAL AUTOMOTIVE INDUSTRY VISION Supporting the global automotive industry with state of the art fastener technology and services. BUSINESS CONCEPT Bulten shall be the leading business partner and the most cost effective supplier of fasteners and services to the automotive industry. Bulten shall with empowered and dedicated people continuously develop its full service concept and actively launch innovations. Bulten shall develop long term relations based on professionalism and good business ethics. FINANCIAL TARGETS To grow stronger than the industry in average Operating Profit (EBIT) > 7% Return on Capital Employed (ROCE) > 15% FOOTPRINT HEAD OFFICE PRODUCTION SALES LOGISTICS PRE DEVELOPMENT PRODUCT DEVELOPMENT Corporate presentation 4

5 STRONG CUSTOMER BASE AND RELATIONSHIPS WITH MAJOR VEHICLE OEMS AS WELL AS TIER 1 SUPPLIERS OEMs LIGHT VEHICLES TIER AUTOMOTIVE SUPPLIERS OEMs HEAVY VEHICLES 75% 76% 11% 13% Share of Bulten s sale, YTD % v Selection of customers. Share of Bulten s sales YTD 5

6 2. MARKET DEVELOPMENT

7 BULTEN MARKET SHARE DEVELOPMENT BULTEN MARKET SHARE DEVELOPMENT Management estimates*: 20% 17% 17% Market share 17% of the European market of fasteners for the automotive industry 2016, flat versus % 10% 5% 11% 14% Market share of FSP contracts for the same market to be 60% 2016, flat versus % Market share of total European fasteners 70% 60% 50% 40% 30% 20% 10% 0% 45% 56% 60% 60% Market share of European fastener FSP contracts * Based on data from EIFI (European Industrial Fasteners Institute) 7

8 MARKET DEVELOPMENT LMC Automotive reports for automotive production in Europe, 2017: Production of LV in 2017 up by 1.8% compared to 2016 Production of HCV (>15 t) in 2017 up by 4.0% compared to 2016 For Bulten s mix, up 2.1% LV stands for ~87% of sales HCV stands ~13% of sales ACEA reports for LV sales in Europe for the five first months, 2017 European LV sales for the five first months, 2017 up 5.3% compared to 2016 Source: LMC Automotive Q2, ACEA five months,

9 LMC AUTOMOTIVE REPORTS FOR AUTOMOTIVE PRODUCTION IN EUROPE PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES EUROPE PRODUCTION GROWTH RATE (YEAR ON YEAR) HEAVY COMMERCIAL VEHICLES (>15t) EUROPE 5% 4% 4% 3% 3% 2% 2% 2,9% 4,1% 2,7% 1,8% 1,9% 2,0% 10% 5% 0% 5% 7,3% 5,1% 4,0% 4,3% 4,6% 1% 1% 0% 2014E 2015E 2016E 2017E 2018E 2019E 10% 15% -12,5% 2014E 2015E 2016E 2017E 2018E 2019E Q Q Q Q LMC Automotive (Q report) has not changed its forecast level on LV production 2017 compared to the Q report. LMCA forecast an increase of 1.8% compared to LMC Automotive (Q report) has increased its forecast of HCV production 2017 compared to the Q report with 1.1%, to an increase of 4.0% compared to Source: LMC Automotive Q

10 3. SECOND QUARTER 2017

11 OPERATIONAL HIGHLIGHTS FOR THE QUARTER Sales increased by 3.0% Despite fewer production days vs Q Model shifts Strong order intake of 13.9% Strong EBIT margin 7.9% Good cost control and flexible production Improved financial key ratios All financial targets reached FSP contract of approximately EUR 30 m annually at full volume in 2020 Ram Bul contract USD 5.5 m annually at full volume in 2019/2020 Ford honors Bulten JV (BBB Services Ltd) with a special award Recognition World Excellence Award 11

12 TWO NEW IMPORTANT CONTRACTS SIGNED AFTER THE QUARTER FSP CONTRACT FSP contract signed with a major vehicle manufacturer The annual order value amounts to approximately EUR 30 million Deliveries starts end of 2018 and gradually increase to full capacity in 2020 Thereafter, deliveries will extend over a number of years Strengthens the relationship with the customer in the coming years RAM BUL CONTRACT Through Bulten s JV Ram Bul in the US, contract signed with a major vehicle manufacturer The annual order value amounts to approximately USD 5.5 million. The delivery value is distributed USD 5.0 million to Bulten and USD 0.5 million to Ramco Deliveries will continue over a number of years, with start and ramp up during Full volumes are expected to be reached in 2019/2020 Significant breakthrough on the north American market and further strengthens our position as manufacturer of high quality fasteners 12

13 THE NEXT GENERATION OF ELECTRIC CARS CONSIST OF SUBSTANTIALLY MORE FASTENERS THAN TRADITIONAL CARS Bulten has started deliveries of fasteners to the pre series of the next generation of electric vehicles These deliveries entail a considerably higher delivery value per car compared to an equivalent model with a combustion engine Up to approximately 40% The number of fasteners increase, mainly in the body, depending on material selection and design Still very low volumes for the industry 13

14 GROUP SUMMARY SECOND QUARTER Net sales SEK 708 m (686) EBIT margin 7.9% (7.8) Earnings after tax SEK 39 m (39) EPS 2.01 SEK (1.92), increased by 4.7% COMMENTS Sales up with 3.0% and strong order intake, up 13.9% Return on capital employed increased to 15.0%, (adjusted for goodwill 17.4%). All financial target reached Q1 12M ROLLING FULL YEAR FINANCIAL SUMMARY (MSEK) Apr 2016 Mar Net sales % 2,760 2, % Gross profit Earnings before depreciation (EBITDA) Operating earnings (EBIT) Operating margin, % Earnings after tax Order bookings % 2,831 2, % Return on capital employed, % Return on capital employed excluding goodwill, %

15 CONTINUED INCREASE IN SALES AND ORDER INTAKE SEK m Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Net Sales Order bookings Sales up 3.0% in Q2 vs last year and 1.3% currency adjusted The number of production days have been lower in the quarter compared to the same quarter prior year Low volumes due to model shifts Order intake up 13.9% in Q2 vs last year 15

16 IMPROVED EBIT TREND CONTINUED IN Q2 SEK m ,0% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q % 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% EBIT EBIT margin EBIT amounted to SEK 57m (54), EBIT margin of 7.9% (7.8) Positive effect of 4 MSEK from reclaimed receivables Negative effect of 4 MSEK from higher raw material prices after consideration of raw material compensation 16

17 CASH FLOW, BALANCE SHEET AND NET CASH CASH FLOW STATEMENT, MSEK Q2 JAN.JUNE FULL YEAR Cash flow from operating activities before changes in working capital Cash flow from operating activities Cash flow from investing activities Cash flow for the period Cash and cash equivalents at end of period BALANCE SHEET, MSEK ASSETS Total assets 1,969 1,889 1,969 EQUITY AND LIABILITIES Equity 1,367 1,267 1,357 Liability Total equity and liabilities 1,969 1,889 1,969 MSEK Net cash (+)/net debt ( ) Adjusted net cash (+)/net debt ( )

18 KEY INDICATORS CAPITAL STRUCTURE AND RETURN INDICATORS THE GROUP, 12 MONTHS July 2016 June M ROLLING Full Year July 2015 June RETURN INDICATORS Return on capital employed, % Return on capital employed excluding goodwill, % Return on equity % Return on equity, adjusted % CAPITAL STRUCTURE Capital turnover, times Net cash (+) Net debt ( ) / EBITDA THE GROUP CAPITAL STRUCTURE Net cash/equity ratio, times Equity/assets ratio, %

19 FINANCIAL GUIDELINES THE GROUP 12 M ROLLING Q2 FULL YEAR 2016 GUIDELINES Average net working capital as % of sales CAPEX as % of sales Depreciation as % of sales Tax rate NWC lower than guidelines Capex in line with our guidelines investments in new plating lines in Germany and Poland in 2017 Tax rate in line with our guidelines 19

20 ALL FINANCIAL TARGETS REACHED IN Q2 Growth Margin ROCE EPS Dividend Profitable organic growth more strongly than the industry average Operating margin of at least 7% At least 15% EPS development At least one third of net earnings after tax Q2 R12 3.0% 3.2% 7.9% 7.6% Na 15.0% 17.4% excl. goodwill 2.01 SEK 7.93 SEK 4.50 SEK ( SEK /share) 62% for

21 BULTEN DEVELOPMENT % 50 SEK +34% growth 67 SEK 5.5% +12% growth 82 SEK 6.1% Flat dev. 7.5% 89 SEK +3% growth 120 SEK 7.6% m rolling CAPTURE FUTURE GROWTH Sales Share development Operating margin GROUP STRUCTURE GROWTH AND DIVESTMENT CONSOLIDATION CONSOLIDATION GROWTH Bulten part of FinnvedenBulten Group. Divestment of Finnveden Metal Structures. Several new FSP contracts. Executing new FSP contracts. Focus on operation/optimiz ation program Investments for the future and executing new contracts 21

22 4. GOING FORWARD

23 PREDICTED STRONGER BULTEN GROWTH VS THE MARKET Existing contracts & market growth Ramp up of new contracts New signed not yet started contracts Future contracts & increased delivery value in EV s Market volatility and model shifts Bulten growth late 2017 and onward Market growth according to LMC Automotive 1.9% Market share gains through existing contracts New contracts under ramp up for Bulten: - LV FSP contract. SEK 130 million/year at full pace Started 2015 with slow ramp up - HCV contract. SEK 17 million/year. Started late China LV contract. SEK 60 million in total. Started 2017, contract period New signed contracts to be ramped up: - LV FSP contract. EUR 20 million/year. Starts late 2017 full pace Russia LV contract. EUR 700 thousand/year. Starts 2017 full pace US LV contract (Ram Bul) of USD 5.5 million at full volume 2019/2020. Bulten part USD 5.0 million. - LV FSP contract of approx. EUR 30 million at full volume 2020 Future contracts; ongoing customer discussions and increased value/car in EV s 23

24 GOING FORWARD Continued long term organic growth potential Capture future growth, based on already won contracts and ongoing discussions New major FSP contract at an annual value of 30 MEUR New contract in USA at an annual value of 5.5 MUSD Opportunities in emerging markets Continuing interesting possibilities in the US market through new establishment Preparing for future growth through investments and continued streamlining Development of fasteners technology for EV is ongoing, Becoming the most cost effective FSP supplier in the industry Strong financial position All financial targets reached Q2, 2017 Bulten has taken significant steps forward in the market and has created a high credibility in the automotive industry 24

25 BULTEN A STRONGER SOLUTION