BE GROUP INTERIM REPORT JANUARY JUNE

Transcription

1 BE GROUP INTERIM REPORT JANUARY JUNE 211 Roger Johansson, President & CEO Torbjörn Clementz, CFO & Executive Vice President Slide 1

2 Q2 A quarter with continued growth Financial Highlights Net sales increase of 14% Delivered tonnage increase of 7% Operating result of 66 MSEK with an operating margin of 4.2% Slide 2

3 Q2 Good sales despite weakened steel market Market highlights Operational highlights Overall good demand on our products Continued phasing in of operational Strong activity it in engineering i sector investments Improved activity in construction sector Started transformation of Polish Increased sales prices in all three business with a unit for production business areas service The bullish price development from High focus on inventory management steel producers in Q1 turned to decline to be well balanced for Q3 Several internal initiatives launched to improve gross margin Slide 3

4 Slide 4 FINANCIALS IN DETAIL

5 Continued growth in sold tonnage Tonnage ( tons) Increased tonnage despite weak start of the quarter 5 q Sold tonnage 7% higher than Q2 21 In total tons best quarter since Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Quarterly Rolling 12 months Slide 5

6 Price volatility not fully reflected in average sales prices Average sales price (SEK/kg) 13, Q2 average sales price increase of 7% 12, 11, 1, 9, 8, 7, 6, 5, 4, 3, 2 2, 1,, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Quarterly Rolling 12 months Increase of 3% compared to Q1 Adjusted for currency effects, average sales price increased by 3% vs last year and 2% vs Q1 Slide 6

7 Q2: Higher sales with result not on par with last year Q2 Q2 Change Q1 SEK M Net sales 1,597 1, ,519 Underlying EBIT % of Sales 2.7% 3.3% -.6% 3.1% Inventory gain/loss EBIT % of Sales 4.2% 6.2% -2.% 2.9% Earnings before tax Net earnings EPS (SEK) Cash-flow before change in net debt Net debt Net debt / Equity 98% 14% -6% 96% Slide 7

8 EBIT improved vs latest quarter Sales, EBIT and uebit (SEK M) Sales Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 EBIT EBIT of 66 MSEK below last year due to lower inventory gains Underlying gross margin pressure by production ramp-up Leverage from acquisitions not fully achieved Inventory gains of 23 MSEK (4) EBIT margin of 4.2% (6.2) Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M Slide 8

9 8 Well managed working capital supports cash-flow Working capital (SEK M) 11,7 Working capital increase due to higher business volume 1,4 6 9,2 Tight working capital management 8,2 8,2 contributes to positive YTD cash-flow Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Period end working capital, SEK M Working capital tied up, % Cash-flow from investment activities -37 MSEK (-1) during the quarter Net debt of 851 MSEK (832) Unused credit facilities and available cash of 435 MSEK Gearing of 98% (14) Slide 9

10 H1: All in all an improvement vs last year H1 H1 Change SEK M Net sales 3,116 2, Underlying EBIT % of Sales 2.9% 1.4% +1.5% Inventory gain/loss EBIT % of Sales 3.6% 2.3% +1.3% Earnings before tax Net earnings EPS (SEK) Cash-flow before change in net debt Net debt Net debt / Equity 98% 14% -6% Slide 1

11 Slide 11 BUSINESS AREAS STATUS Q2 211

12 BA Sweden Improvement in demand Sales, EBIT and uebit (SEK M) Sales EBIT Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M Strengthened demand during the quarter after weak start Improvement from customers in both engineering and construction sector Net sales increase with 11% Operating margin improvement vs Q1 Integration of Lecor Stålteknik and RTS Produktion ongoing 2 g 1 Ongoing investment in new production facility for Lecor Stålteknik Slide 12

13 BA Finland Good margins despite production capacity ramp-up p Sales, EBIT and uebit (SEK M) Sales EBIT Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M 4 Stable demand with certain weakening at the end of period 5 Net sales increase of 13% with a tonnage increase of 7% 3 2 Operating margin of 7.7% 7% Increased production capacity yet to have an impact on sales 1 Decision on extension of production facility in Lapua. Investment of 2 MSEK Slide 13

14 BA CEE Transformation in Poland started Sales, EBIT and uebit (SEK M) Sales Q2 1 Q3 1 Q4 1 Q1 11 Q EBIT Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M Continued increase in demand from engineering sector with certain weakening at the end of the quarter Increase in net sales of 21% due to increase in shipped tonnage EBIT weakened to 1 MSEK (8) due to declining price trend -1 Investment of 15 MSEK in new production service center in Trebaczew started Slide 14

15 Slide 15 OUTLOOK

16 BE Group outlook Signs of continued increase in demand during H2/11 based on customer forecasts Pricing development to customers will vary depending on product Buying market currently stable with no major movements Continued focus on improving margins and building the best modus operandi in the sector Slide 16

17 Business ambitions for the next few years Profitable growth Sustainable profitability in CEE Service sales 5% of total sales Follow customers internationally Create leverage within the Group Slide 17

18 Slide 18

19 Slide 19 APPENDIX FINANCIAL INFORMATION

20 Appendix: Financial summary Full year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21 R12 Tonnage Net Sales 1,74 1,399 1,273 1,383 1,519 1,597 5,129 5,772 Underlying EBIT % of Sales -.9% 3.3% 2.5%.5% 3.1% 2.7% 1.5% 2.2% EBIT % of Sales -2.6% 6.2% 3.8% -.6% 2.9% 4.2% 1.9% 2.6% Net earnings Earnings/share Cash flow Working Capital Underlying EBITA(%) Underlying ROOC(%) Earnings per share after dilution 2 Cash flow before change in Net Debt 3 Period end working capital Slide 2

21 Appendix: Sales per customer segment January-June Q2 OEM & partners OEM & partners Project 23 Project Preprocessing Preprocessing Retail 8 Retail % 1% 2% 3% 4% 5% 6% % 1% 2% 3% 4% 5% 6% Slide 21

22 Appendix: Sales per product area January-June Q2 Long steel Long steel Flat steel Flat steel Reinforce- ment Reinforce- ment Stainless steel Stainless steel Aluminum Aluminum Other Other % 5% 1% 15% 2% 25% 3% 35% 4% % 5% 1% 15% 2% 25% 3% 35% 4% Change % Change % Slide 22

23 Appendix: Sales per channel January-June Q2 Direct Direct Inventory Inventory Service Service % 1% 2% 3% 4% 5% Sales outside scope of channels not included Change % % 1% 2% 3% 4% 5% Sales outside scope of channels not included Change % Slide 23