HALF YEAR REPORT. Strong order intake and new significant contracts signed

Transcription

1 January June 2017 HALF YEAR REPORT Strong order intake and new significant contracts signed second quarter Net sales reached SEK 708 million (686), an increase of 3.0% on the same period last year. Operating earnings (EBIT) were SEK 57 million (54), which corresponds to an operating margin of 7.9% (7.8). Earnings after tax were SEK 39 million (39). Order bookings amounted to SEK 765 million (672), an increase of 13.9% on the same period last year. Cash flow from operating activities was SEK 37 million (95). Earnings per share were SEK 2.01 (1.92). january june Net sales reached SEK 1,486 million (1,402), an increase of 6.0% on the same period last year. Operating earnings (EBIT) were SEK 120 million (109), which corresponds to an operating margin of 8.0% (7.8). Earnings after tax were SEK 90 million (79). Order bookings amounted to SEK 1,485 million (1,370), an increase of 8.3% on the same period last year. Cash flow from operating activities was SEK 35 million (173). Earnings per share were SEK 4.60 (3.95). Net cash was SEK 3 million (-89) and the equity/assets ratio at the end of the period was 69.4% (67.1). significant events after the end of the reporting period Bulten s joint venture, Ram-Bul, has signed a contract worth approximately USD 5.5 million per year at full volumes which is expected in 2019/2020. The estimated delivery value is distributed USD 5 million for Bulten and USD 0.5 million for Ramco. Bulten has signed an FSP contract worth around EUR 30 million per year at full volumes which is expected in ceo s comments It is very pleasing that after the end of the quarter Bulten signed both a new extensive FSP contract and a strategically important contract in the US. During, net sales increased by 3.0%. The growth during the quarter has been affected by fewer production days compared with the corresponding quarter last year and by somewhat lower volumes due to model changes. The development indicates strong underlying demand in the automotive industry combined with Bulten s strong position on this market, which is confirmed by a strong order intake during the quarter. Earnings and profitability continued to have a positive development and the return on capital employed rose to 15%. Bulten s financial position is strong and during the quarter all our financial targets were reached and we are therefore well equipped for a phase of growth and investments in production and logistics. In May, we received further evidence of our customers appreciation when our joint venture, BBB Services Ltd, was awarded Ford Motor Company s prestigious Special Recognition World Excellence Award. The development of electric vehicles requires that fasteners be adapted for new material choices and design solutions and Bulten is at the forefront of providing vehicle manufacturers with the latest technology. During the quarter, deliveries to pre-series to the next generation of electrical vehicles have started. Tommy Andersson, President and CEO

2 BULTEN IN SUMMARY development during the quarter Development in continued to be positive with a 3.0% increase in net sales and a 13.9% increase in order bookings for the first quarter compared with the same period last year. This is a good growth considering that there were fewer production days compared with the previous year and volumes were lower due to model changes. This performance indicates strong underlying demand in the automotive industry in combination with Bulten s strong position on this market. Earnings and profitability continued to have a positive development with an operating margin of 7.9%, which is a sign of good cost control and flexibility in production among others. Return on capital employed climbed to 15.0% (17.4% excluding goodwill), which can be compared with the target of at least 15%. Bulten has a strong financial position and reached all its financial targets during the quarter and is thus well prepared for a phase of growth with investments in production and logistics. The establishment in USA is making progress and during the quarter internal preparations continued for deliveries to existing customers. After the end of the quarter, Bulten s joint venture, Ram-Bul, signed a contract with an annual value of approximately USD 5.5 million at full volumes. The estimated delivery value is distributed USD 5.0 million for Bulten and USD 0.5 million for Ramco*. Further dialogue with customers is taking place and the total annual business potential for Bulten is estimated at around USD million at full volumes in 2020, as previously announced. After the end of Bulten has also signed a significant new FSP contract with an existing customer with an annual value of approximately EUR 30 million at full volumes*. In May, Bulten received further proof of customer appreciation. Bulten s joint venture, BBB Services Ltd, was awarded Ford Motor Company s prestigious Special Recognition World Excellence Award, a recognition for partners who surpass expectations and achieve the highest levels in terms of quality, costs, performance and delivery. The development of electric vehicles requires fasteners that are adapted for new materials and new design solutions. Bulten continues to develop fasteners for electric cars and deliveries to pre-series of next generation electric vehicles have now started. For these specific deliveries, this entail a considerably higher delivery value per car compared to an equivalent model with a combustion engine, up to approximately 40%. This is due to the fact that the number of fasteners increase, mainly in the body, depending on material selection and design. The volumes still remain very low. * See Significant events after the end of the reporting period. market and outlook for 2017 Of Bulten s net sales, around 87% is attributable to light vehicles and around 13% to commercial vehicles. Of total net sales, 89% are direct deliveries to vehicle producers (OEMs) and the remainder to their sub-suppliers and to other sectors. During the first five months of 2017 car sales in Europe (EU and EFTA) increased by 5.3% compared with the same period in 2016 according to ACEA s statistics. According to LMC Automotive s latest forecast from 2017, production of light vehicles is expected to increase by 1.8% and production of heavy commercial vehicles by 4.0% in Weighted for Bulten s exposure, this means a rise of around 2.1% for the same period. Distribution of Bulten s products is primarily to Europe, although demand is affected by production of vehicles for the global market. Bulten s management team considers that the underlying demand for light vehicles in Europe remains good, as does demand for vehicles for export from Europe to global markets. Ongoing model changes by customers may contribute to volatility in demand. Bulten s estimated market share at the end of 2016 was around 17% of the European market for fasteners for the auto sector, which is unchanged on the figure for On the corresponding market for FSP business, Bulten s market share is estimated at around 60%, which is also unchanged on the figure for This estimate is based on data about the European auto industry s purchasing of fasteners in 2016 according to the European Industrial Fasteners Institute (EIFI) has started strongly with new contracts and good order intake and Bulten s prospects for gaining market shares are good. Establishing in North America broadens Bulten s market and creates further opportunities for growth among both new and existing companies. order bookings and net sales Order bookings were SEK 765 million (672), an increase of 13.9% compared with the corresponding period in the previous year. Net sales for the Group totaled SEK 708 million (686), an increase of 3.0% compared with the corresponding period in the previous year. Adjusted for currency effects, organic growth was -1.3% in the same period. January June Order bookings were SEK 1,485 million (1,370), an increase of 8.3% compared with the corresponding period in the previous year. Net sales for the Group totalled SEK 1,486 million (1,402), an increase of 6.0% compared with the corresponding period in the previous year. Adjusted for currency effects, organic growth was 2.9% compared with corresponding period in the previous year. MSEK Q1 Q3 Q4 Q1 Q3 Q4 Q1 Q3 Q4 Q1 Q3 Q4 Q1 Q3 Q4 Q Net sales Order intake earnings and profitability The Group s gross earnings were SEK 141 million (138), corresponding to a gross margin of 20.0% (20.1). Earnings before depreciation (EBITDA) were SEK 76 million (71), corresponding to an EBITDA margin of 10.8% (10.3). Operating earnings (EBIT) were SEK 57 million (54), corresponding to an EBIT margin of 7.9% (7.8). The increased world market prices for steel and other metals have had a negative impact on profitability of approximately 4 MSEK after consideration of raw material price compensation. Sales have been affected by fewer production days and lower volumes due to model changes. Operating earnings were affected positvely by currency changes amounting net to SEK 0 million (1) when converting working capital on the closing date. Further more the operating earnings were also effected positively by SEK 4 million from a previous impairment receivable

3 Net financial items in the Group were SEK -5 million (-1). Financial income of SEK million (1). Previous year comprised exchange rate gains of SEK 1 million. Financial costs of SEK -5 million (-2) comprised interest costs of SEK -1 million (-1), exchange rate loss of SEK -3 million ( ) and other finacial cost of SEK -1 million (-1). The Group s earnings before tax were SEK 52 million (52) and earnings after tax were SEK 39 million (39). January June The Group s gross earnings were SEK 294 million (274), corresponding to a gross margin of 19.8% (19.6). Earnings before depreciation (EBITDA) were SEK 159 million (143), corresponding to an EBITDA margin of 10.7% (10.2). Earnings (EBIT) were SEK 120 million (109), corresponding to an operating margin of 8.0% (7.8). The increased world market prices for steel and other metals have had a negative impact on profitability of approximately 8 MSEK after consideration of raw material price compensation. Operating earnings were affected negatively by currency changes amounting net to SEK -1 million (4) when converting operating capital on the closing date. Further more the operating earnings were also effected positively by SEK 4 million from a previous impairment receivable. Net financial items in the Group were SEK -1 million (-2). Financial income was SEK 2 million (2) of which currency gain amounted to SEK 2 million (2). Financial costs were SEK -3 million (-4), of which interest costs were SEK -2 million (-3) and other financial costs were SEK -1 million (-1). The Group s earnings before tax were SEK 119 million (106) and earnings after tax were SEK 90 million (79). cash flow, working capital, investments and financial position Cash flow from operating activities totaled SEK 37 million (95). Cash flow effects of changes in working capital amounted to SEK -33 million (29). The working capital is driven by the positive volume trend and the change in financial fixed assets that have been replaced by working capital financing. Inventories changed in the period by SEK 6 million (-1), while current receivables decreased by SEK -9 million (-19). Current liabilities changed by SEK -25 million (5). Cash flow from investing activities was SEK 2 million (-6). Investments of SEK 30 million (7) relate to tangible assets. The change in financial fixed assets was SEK 33 million (1). During the quarter, around SEK 33 million of loans to the joint venture, BBB Services Ltd were replaced with working capital financing. The change meant that the Group s cash flow from operating activities has been negatively affected by SEK 33 million and the Group s cash flow from investing activities was affected positively by a corresponding amount. January June Cash flow from operating activities totalled SEK 35 million (173). Cash flow effects of changes in working capital amounted to SEK -114 million (39). Inventories decreased in the period by SEK -24 million (-53), while current receivables increased by SEK 116 million (15). Current liabilities changed by SEK -17 million (1). Cash flow from investing activities was SEK 28 million (-22). Investments of SEK 37 million (22) relate to tangible assets. The corresponding figure for intangible assets was SEK 1 million (0). Divestment of fixed assets amounted to SEK -0 million (-0). During the year, around SEK 67 million of loans to the joint venture, BBB Services Ltd were replaced with working capital financing. The change meant that the Group s cash flow from operating activities has been negatively affected by SEK 67 million and the Group s cash flow from investing activities was affected positively by a corresponding amount. At the end of the period net cash was SEK 3 million, of which cash and cash equivalents were SEK 81 million. In the previous year, net debt was SEK -89 million, of which cash and cash equivalents were SEK 49 million. Adjusted for financial leasing, net cash was SEK 40 million. Last year, adjusted net debt was SEK -53 million. NET SALES sek 708million operating Earnings sek 57million OPERATING MARGIN 7.9 % FINANCIAL SUMMARY Jan - June sek million month rolling Full year July 2016 June Net sales % 1,486 1, % 2,760 2, % Gross profit Earnings before depreciation (EBITDA) Operating earnings (EBIT) Operating margin, % Earnings after tax Order bookings % 1,485 1, % 2,831 2, % Return on capital employed, % Return on capital employed excluding goodwill, %

4 OTHER INFORMATION accounting principles This half year report has been prepared for the Group in accordance with IAS 34 (Interim Financial Reporting) and the Swedish annual accounts act. The financial statement for the parent company has been drawn up in accordance with the Swedish annual accounts act and RFR 2 (Reporting for legal entities) of the Swedish Financial Accounting Standards Council. The accounting principles are unchanged compared with the principles explained in the 2016 annual report. All amounts are in SEK million unless otherwise stated. Amounts in brackets show figures for last year. Some figures are rounded up, which is why total amounts might not always add up. risks and risk management Exposure to operational and financial risks are a natural part of business activity and this is reflected in Bulten s approach to risk management. The purpose is to identify and prevent risks and limit any damage that may result. The main risks that the Group is exposed to relate to the impact of the business cycle on demand, supplies of raw materials and their price variations, as well as general economic and geopolitical factors. For a more detailed description of these risks, see Note 3, Risks and risk management, of the company s 2016 annual report. seasonal variations Bulten is not exposed to traditional seasonal variations. The year reflects customers production days, which vary between quarters. The lowest net sales and operating earnings normally occur in Q3, where there are fewest production days. The other quarters are relatively even although variations may occur. transaction with related parties No significant transactions were made with related parties during the reporting period. For further information, see note 34 of the 2016 annual report. employees The total number of employees in the Group amounted on the closing day to 1,287 (1,247). contingent liabilities During the report period there was no significant change in contingent liabilities. parent company Bulten AB (publ) owns, directly or indirectly, all the companies in the Group. The equity/assets ratio was 74.1% (66.2). Equity was SEK 1,053 million (1,026). The parent company had no cash and cash equivalents on the closing day. The company had 9 employees on the closing day. significant events after the end of the reporting period Bulten s joint venture, Ram-Bul, has signed a new contract worth around USD 5.5 million per year at full volumes. The estimated delivery value is distributed USD 5.0 million for Bulten and USD 0.5 million for Ramco. Deliveries are expected to start in Q and then successively increase up to full capacity in 2019/2020. Bulten has signed an FSP contract with an existing customer, a significant vehicle manufacturer. The contract is worth around EUR 30 million per year. Deliveries are expected to start at the end of 2018 and then successively increase up to full capacity in Deliveries for both the above contracts will take place over a number of years relating to the life length of the vehicles, which is normally five to ten years. Volumes will follow the life length and volume curve of the vehicles with a successive downscaling as the model reaches the end of its life. auditor s verification This report has not been verified by the company s auditors. The Board of Directors and the CEO certify that the report provides a fair overview of the Group s operations, position and results and describes significant risks and uncertainty factors that the parent company and the Group face. Göteborg, Sweden 12 July 2017 Bulten AB (publ) Ulf Liljedahl Ann-Sofi Danielsson Hans Gustavsson Chairman of the board Board member Board member Hans Peter Havdal Peter Karlsten Anne-Lie Lind Board member Board member Board member Gustav Lindner Board member Johan Larsson Employee representative Tommy Andersson President and CEO

5 HEAD OFFICE ProduCtion SALES LOGISTICS PRE DEVELOPMENT product DEVELOPMENT about bulten Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company s product range includes everything from customer-specific standard products to specialist, customized fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has around 1,300 employees in nine countries and has its head office in Göteborg, Sweden. The share (BULTEN) is listed on Nasdaq Stockholm. 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. with empowered and dedicated people continuously develop its full service concept and actively launch innovations. develop long-term relations based on professionalism and good business ethics. financial targets and dividend policy The Group s target is to achieve profitable organic growth and to grow more strongly than the industry average. The Group s target is to achieve an operating margin of at least seven (7) percent. The Group s target is to achieve a return on average capital employed of at least fifteen (15) percent. Bulten s dividend policy over time is to pay out a dividend of at least one third of net earnings after tax. Consideration is given, however, to the company s financial position, cash flow and outlook. strategy Bulten has a clear focus on organic growth in Europe, USA, Russia and China. The prospects for Bulten to continue to grow organic on the global automotive market are good. Bulten shall be a preferred full service provider and provide everything from development, production and logistics to final delivery at the customer s assembly line. This has been a successful concept and the strategy is to continue developing the business in this direction. Already today Bulten s contract portfolio consists of approximately three quarters full service contracts and the share is expected to increase. Bulten s strategy is based on offering competitive products and services. This will be achieved by having production processes at low costs with geographical proximity to the customer. Bulten is continuously working to develop its expertise in order to offer its customers the best possible quality at the best possible price. Part of Bulten s strategy is also to constantly develop the innovative and technological know-how needed to create new products together with customers, thus offering improved and more cost-effective solutions to OEMs

6 Shareholder information Jan-JUNe price-related share data month rolling Full YEAR July 2016 JUNe Share price at period-end (final pay price), SEK Highest share price during period (final pay price), SEK Lowest share price during period (final pay price),sek Market value at period end, MSEK 2,525 1, ,525 1, ,525 1,873 P/E Dividend yield, % 5.06 Data per share Earnings before depreciation (EBITDA) Operating earnings (EBIT) Earnings after net financial items (EAFI) Earnings for the period Shareholders equity Cash flow from the operating activities Cash flow for the period Dividend 4.50 Total outstanding ordinary shares, 000s Weighted total during the period 20, , , , , ,359.7 At period end 20, , , ,359.7 the share SEK Index July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Bulten Share SEK Bulten Index OMX Stockholm PI Index bulten s TEN largest shareholders shareholder no of shares holding, % Volito AB 4,450, Lannebo fonder 2,712, Investment AB Öresund 2,263, Spiltan Fonder AB 967, JP Morgan 749, Bulten AB 680, Skandinaviska Enskilda Banken S.A 471, Sjöbergstiftelsen 400, CBNY-DFA-INT SML CAP V 334, Clients Accounts-DCS 309, Total number of shareholders: 7,171 Source: Cision register, 30 June 2017 Source: Euroclear Sweden AB s register, 30 June 2017 information about this interim report Bulten aims to operate a sustainable business and strives to identify areas where we can reduce our environmental impact. As from 2016 Bulten no longer print the interim reports. All of Bulten s reports can be read at, and downloaded from, Shareholders who are unable to read reports online may order a printed copy by contacting Bulten. Our subscription service at gives you the opportunity to subscribe for Bulten s reports and press releases via

7 financial information Consolidated income statement jan-june SEK million month ROLLIng Full YEAR July 2016 JUNE Net sales ,486 1, ,760 2,676 Cost of goods sold ,192-1, ,209-2,145 Gross profit Other operating income Selling expenses Administrative expenses Other operating expenses Share of result of Joint Venture Operating earnings Financial income Financial expenses Earnings before tax Tax on period s earnings Earnings after tax Attributable to Parent company shareholders Minority interests Earnings after tax Earnings per share attributable to parent company shareholders Earnings per share, SEK 1) Weighted outstanding ordinary shares, 000 1) 20, , , , , , ) Both before and after dilution. Consolidated statement of comprehensive income jan-june SEK million month ROLLIng Full YEAR July 2016 JUNE Earnings after tax Other comprehensive income Items that will not be reclassified to profit or loss Revaluation of defined benifit pension plan, net after tax 1 1 Items that may be reclassified subsequently to profit or loss Exchange rate differences Total comprehensive income Attributable to Parent company shareholders Minority interests Total comprehensive income

8 Consolidated balance sheet SEK million ASSETS Fixed assets Intangible fixed assets 1) Tangible fixed assets Financial assets Deferred tax receivables Total fixed assets Current assets Inventories Current receivables Cash and cash equivalents Total current assets 1,161 1,037 1,097 Total assets 1,969 1,889 1,969 EQUITY AND LIABILITIES Equity Equity attributable to parent company shareholders 1,357 1,255 1,343 Minority interests Total equity 1,367 1,267 1,357 Non-current liabilities Non-current interest-bearing liabilities and provisions Total non-current liabilities Current liabilities Current liabilities, interest-bearing Current liabilities, non-interest-bearing Total current liabilities Total equity and liabilities 1,969 1,889 1,969 1) Whereof goodwill SEK 203 million (201) (204). Consolidated statement of changes in equity jan-june Full year SEK million Opening equity 1,357 1,245 1,245 Comprehensive income Earnings after tax Other comprehensive income Total comprehensive income Transactions with shareholders Share-based payment to employees 1 2 Dividend paid to parent company shareholders Total transactions with shareholders Closing equity 1,367 1,267 1,

9 Consolidated cash flow statement jan-june SEK million Operating activities Earnings after financial items Adjustments for items not included in cash flow Tax paid Cash flow from operating activities before changes in working capital Cash flow from changes in working capital Change in working capital Cash flow from operating activities Full year Investing activities Acquisition of intangible fixed assets Acquisition of tangible fixed assets Disposal of tangible fixed assets Change of financial assets Cash flow from investing activities Financing activities Change in overdraft facilities and other financial liabilities Dividend paid to parent company shareholders Cash flow from financing activities Cash flow for the period Change in cash and cash equivalents Cash and cash equivalents at start of financial year Exchange rate difference in cash and cash equivalents Cash and cash equivalents at end of period Consolidated net cash/net debt SEK million Non-current interest-bearing liabilities Provisions for pensions Current interest-bearing liabilities Financial interest-bearing liabilities Cash and cash equivalents Net cash(+)/net debt(-) Adjusted for interest bearing liabilities related to financial lease agreements Adjusted net cash(+)/net debt(-)

10 Consolidated key indicators THE GROUP q2 jan-june month ROLLIng Full year JuLY 2016 JUNE Margins EBITDA margin, % EBIT margin (operating margin), % Net margin, % Capital structure Interest coverage ratio, times Data per share attributable to parent company shareholders Earnings per share, SEK * ) Number of outstanding ordinary shares Weighted outstanding ordinary shares, 000 * ) , , , THE GROUP Capital structure Net debt/equity ratio, times Equity/assets ratio, % Other Net cash(+)/net debt(-), SEK m Adjusted net cash(+)/net debt(-), SEK m Equity per share attributable to parent company shareholders Equity per share, SEK* ) Number of outstanding ordinary shares Number of outstanding ordinary shares at period end, 000 * ) 20, , , month rolling Full year THE GROUP, 12 months rolling Return indicators JuLY 2016 JUNE 2017 JULY 2015 JUNE Return on capital employed, % Adjusted return on capital employed, % 1) Return on capital employed excluding goodwill, % Adjusted return on capital employed excluding godwill, % 1) Return on equity, % Adjusted return on equity, % 2) Capital structure Capital turnover, times Employees Sales per employee, SEK 000 2,145 2,154 2,117 Operating earnings per employee, SEK Number of employees on closing date 1,287 1,247 1,264 *) Refers to both before and after dilution. Definitions Definitions of key indicators are unchanged compared with those used in the 2016 annual report. Other key indicators not used in the annual report or on page 13 in this interimreport are explained below. 1) Adjusted return on capital employed: Earnings before financial cost adjusted for non-recurring items in percentage of average capital employed. 2) Adjusted return on equity: Net earnings adjusted for non-recurring items divided with average equity

11 Consolidated quarterly data SEK million Q1 Q4 Q3 Q1 Q4 Q3 Order bookings Income statement Net sales Gross earnings Earnings before depreciation (EBITDA) EBITDA margin, % Adjusted earnings before depreciation (EBITDA) Adjusted EBITDA margin, % Operating earnings (EBIT) EBIT margin (operating margin), % Adjusted operating earnings (EBIT) Adjusted EBIT margin (operating margin), % Earnings after tax Net margin, % Adjusted earnings after tax Adjusted net margin, % Cash flow from operating activities investment activities financing activities Cash flow for the period Earnings per share attributable to parent company shareholders Earnings per share, SEK * ) Earnings per share, adjusted for one-off effects, SEK * ) Number of outstanding ordinary shares Weighted outstanding ordinary shares, 000 * ) 20, , , , , , , , ,040.2 SEK million Balance sheet Fixed assets Current assets 1,161 1,205 1,097 1,071 1,037 1,103 1,067 1,145 1,162 Equity 1,367 1,420 1,357 1,319 1,267 1,283 1,245 1,263 1,277 Non-current liabilities Current liabilities Other Net cash(+)/net debt(-) Adjusted net cash(+)/net debt(-) Equity per share attributable to parent company shareholders Equity per share, SEK* ) Number of outstanding ordinary shares Number of outstanding ordinary shares at period end, 000 * ) 20, , , , , , , , ,040.2 Shareprice Sharesprice at period end, (SEK) *) Refers to both before and after dilution

12 consolidated, 12 month rolling SEK million July 2016 June 2017 April 2016 March 2017 January 2016 December 2016 October 2015 SEPT EMBER 2016 July 2015 June 2016 April 2015 March 2016 January 2015 December 2015 October 2014 SEPT EMBER 2015 Order bookings 2,831 2,738 2,717 2,646 2,696 2,712 2,673 2,705 2,624 July 2014 June 2015 Income statement Net sales 2,760 2,739 2,676 2,669 2,686 2,695 2,693 2,648 2,624 Gross result Earnings before depreciation (EBITDA) EBITDA-margin, % Adjusted earnings before depreciation (EBITDA) Adjusted EBITDA-margin, % Operating earnings (EBIT) EBIT-margin (operating margin), % Adjusted operating earnings (EBIT) Adjusted EBIT-margin (operating margin), % Earnings after tax Net margin, % Adjusted earnings after tax Adjusted net margin, % Employees Net sale per employee, SEK 000 2,145 2,140 2,117 2,115 2,154 2,193 2,246 2,216 2,168 Operating earnings per employee, SEK Number of employee on closing day 1,280 1,280 1,264 1,262 1,247 1,229 1,199 1,195 1,210 Return indicators Return on capital employed, % Adjusted return on capital employed, % 1) Return on capital employed excluding goodwill, % Adjusted return on capital employed excluding goodwill, % 1) Return on equity, % Adjusted return on equity, % 2) Others Net cash(+)/net debt(-)/ebitda Adjusted net cash(+)/net debt(-)/ebitda

13 reconciliation between IFRS and used key indicators Some of the information in this report used by company managers and analysts to assess the Group s development is not produced in accordance with IFRS. Company managers consider that this information makes it easier for investors to analyse the Group s results and financial structure. Investors should see this information as a complement to, rather than a replacement for, financial reporting in accordance with IFRS. adjusted net sales, organic growth Jan - JUNE sek million Net sales ,486 1, Currency effect current period Adjusted net sales ,442 1, When calculating adjusted net sales, organic growth, net sales are adjusted using currency effects of the current period and if necessary with net sales from completed acquisitions. This measurement gives a figure for comparing net sales with the previous year. earnings before depreciation, ebitda Jan - JUNE sek million month ROLLIng FULL YEAR JuLY 2016 JUNE Operating earnings (EBIT) Depreciation and amortisation Earnings before depreciation (EBITDA) When calculating operating earnings excluding depreciation (EBITDA), depreciation and impairments are returned to operating earnings (EBIT). This measurement provides a figure for operating earnings excluding depreciation which are in turn based on investments. adjusted net cash/net debt sek million Net cash(+)/net debt(-) Adjusted for interest bearing liabilities related to financial lease agreements Adjusted net cash(+)/net debt(-) When calculating adjusted net cash/net debt, interest-bearing debt attributable to financial leases is deducted from net cash/net debt. This measurement provides a figure for a refined financial structure excluding lease liabilities

14 Income statement, parent company jan-june FULL YEAR SEK million Net sales Gross profit Administrative expenses Operating earnings Interest expenses and similar items Earnings after financial items Appropriations 174 Earnings before tax Tax on period s earnings Earnings after tax Balance sheet, parent company SEK million ASSETS Fixed assets Intangible fixed assets Tangible fixed assets Total intangible and tangible fixed assets Financial fixed assets Participations in Group companies 1,382 1,382 1,382 Deferred tax assets Other non-current receivables 1 2 Total financial fixed assets 1,404 1,439 1,403 Total fixed assets 1,406 1,442 1,405 Current assets Current receivables from Group companies Other current receivables 3 2 Total current assets Total assets 1,421 1,550 1,581 EQUITY AND LIABILITIES Equity Restricted equity Non-restricted equity ,045 Total equity 1,053 1,026 1,155 Non-current liabilities Non-current liabilities to Group companies Total non-current liabilities Current liabilities Current liabilities to Group companies Other current liabilities Total current liabilities Total equity and liabilities 1,421 1,550 1,

15 Comments

16 January JUNE 2017 Bulten, through its majority owned joint venture company BBB Services Ltd, was honored by Ford Motor Company with a Special Recognition World Excellence Award. The award honors suppliers that exceed expectations and achieve the highest levels of excellence in quality, cost, performance and delivery. In the picture from the left to right: Hau Thai-Tang, Executive Vice President, Product Development and Purchasing, Ford Motor Company; Tommy Andersson, President and CEO of Bulten and Chairman of BBB Services Ltd; Raj Nair, Executive Vice President and President, North America, Ford Motor Company. future financial report dates 26 October 2017 Interim report, January September February 2018 Full year report, January December 2017 The reports are available on Bulten s website, as of the above dates. capital market day 21 September 2017 contact For further information, please contact Kamilla Oresvärd, Senior Vice President Corporate Communications Tel: , kamilla.oresvard@bulten.com invitation to presentation Investors, analysts and media are invited to participate in the teleconference on July 12 at 11:00 CET. The report will be presented by Tommy Andersson, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast. The presentation will be held in English and can be followed live via the link: It will also be possible to take part of the audiocast afterwards at the same address or at To participate in the teleconference, please call 5 minutes before the opening: SE: , UK: , US: This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the Senior Vice President Corporate Communications set out above, at 08:30 CET on July 12, Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,300 employees in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at Bulten AB (publ) Box 9148, SE Göteborg, Sweden Visiting address: August Barks Gata 6 A Tel , Fax