Page 1. Telephone conference November 14th 2012

Transcription

1 Page 1 Telephone conference November 14th 2012

2 CEO comment to the Q3 report A positive product mix within ProPac and lower costs thanks to previously implemented restructuring programmes resulted in an improvement in the third quarter. The worsening economic situation in Europe has a negative impact on the envelope market and we will continue to actively work with cost cutting measures to deal with the situation, says Bong s President and CEO Anders Davidsson. Page 2

3 Continued weak demand in the third quarter Economic slowdown impacting demand for envelopes and ProPac negatively West European envelope volumes decreasing year on year. Decline of 7% in Q3 vs. last year according to FEPE Continued consolidation and capacity reduction: Printeos (former Tompla group) acquired KRPA in Czech Republic, Mayer announced closure of two UK factories etc. Continued growth in packaging for E-trading and other niche products within the ProPac range Page 3

4 Higher gross margin and capital gains offset the effect of volume decline SEK million Net Sales Gross Margin EBIT Restructuring costs Capital Gains Adjusted EBIT Adjusted EBIT % Jan-Sep ,3% ,7% Jan-Sep ,5% 57 N/A ,2% Page 4

5 Strong result in Q3 through higher ProPac share and lower fixed costs SEK million Net Sales Jul-Sep Jul-Sep Of which ProPac Gross Margin Fixed Costs EBIT EBIT Margin 16,5% 20,4% ,0% 14,9% 19,0% ,0% Page 5

6 Cash flow burdened by seasonality and restructuring payments SEK million Jan-Sep 2012 EBITDA Financial net Restructuring payments Tax paid Change in Working Capital Other Provisions Cash Flow from operations Investments & Acquisitions Cash Flow after Investing Activities Page 6

7 Cash Flow by quarter MSEK Page 7

8 Net debt on its way down after the merger MSEK Key drivers Negative - Restructuring costs Positive - Working capital improvement - Asset sales Oct 2010 Q Pension Debt Owner Loan and Convertibles Page 8 Bank Loans etc.

9 Closure of the Washington site in UK to improve productivity and save costs Closure of the envelope production in Washington announced in October all reel production in UK concentrated to Milton Keynes Around 60 redundancies Annual savings of approximately 15 MSEK MSEK restructuring charge to be booked in Q4 Real estate and some machines to be divested Page 9

10 Significant reduction of employees since the merger Number of FTEs Staff level Dec 2010 Acquisitions FTE reduction Staff level Sep 2012 Ongoing restructuring projects Staff level after ongoing projects Page 10

11 Acquisition of DM Qvert AB Overprinter and broker close to Gothenburg, Sweden 50% owned since 2009 Remaining 50% acquired in October 2012 Overprinting operations moved to Bong s entity in Kristianstad Consolidated as subsidiary as of Q4, 2012 Expected to add ca 15 MSEK turnover to Bong Page 11

12 ProPac sales stable vs Fixed currency rates YTD September Q ProPac sales, MSEK Share of total sales 15,4% 14,7% 16,4% 14,9% ProPac growing its share of total Bong sales Strong organic growth in Retail Gift Bags, many new customers E-business machinery growing from a low base Page 12

13 Håkan Gunnarsson appointed new CFO of the group Ulf Zenk leaves Bong end of November to become CFO of Lantmännen Håkan Gunnarsson (43) appointed as new CFO Håkan joined Bong in 1999 and has had different financial roles within Nordic and ProPac Page 13

14 Report Summary Continued tough market conditions for envelopes ProPac gaining in importance Margin improvement in Q3 Cash flow temporarily burdened by seasonality and restructuring payments Additional restructuring measures in UK and Sweden (DM Qvert) ongoing Page 14

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