BE GROUP JANUARY MARCH Roger Johansson, President and CEO Torbjörn Clementz, CFO and Executive Vice President. Slide 1

Transcription

1 BE GROUP INTERIM REPORT JANUARY MARCH 2012 Roger Johansson, President and CEO Torbjörn Clementz, CFO and Executive Vice President Slide 1

2 Q1 Lower prices affect Q1-earnings Financial Highlights Net sales decrease of 5% Delivered tonnage decrease of 1% Operating result of SEK 35 M (45) Underlying operating result of SEK 43 M (47) Positive impact from profitability programme Proposed dividend id d SEK 0.25 per share Slide 2

3 Market highlights Cautious start with improvements in demand during quarter Sales still affected by uncertainty regarding future steel prices and demand Demand in Sweden largely at Q4- levels Decent demand but heavy price pressure in CEE Improved demand in Finland Operational highlights Significant production service order from Volvo Construction Equipment Transformation of Polish and Czech business ongoing Continued phasing in of other operational investments Profitability program running according to plan Slide 3

4 Slide 4 FINANCIALS IN DETAIL

5 Tonnage not fully on last year s level Tonnage ( 000 tons) Tonnage 1% down vs last year Recovery during quarter after slow start 25 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Mixed development between countries Quarterly (LHS) Rolling 12 months (RHS) Slide 5

6 Upward price trend for most products during Q1 Average sales price (SEK/kg) 12,00 10,00 8,00 6,00 4,00 2,00 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Quarterly Rolling 12 months Increasing gprices from December level but not reaching Q4 averages Q1 average sales price decreased 4% vs Q and 2% vs Q ASP affected by product mix impact Slide 6

7 Q1- Not fully up to last year s level Q1 Q1 Change Q4 SEK M Net sales 1,436 1, ,405 Underlying EBIT % of Sales 3.0% 3.1% -0.1% 1.3% Inventory gains/losses Non-recurring items EBIT % of Sales 2.5% 2.9% -0.4% neg Earnings before tax Net earnings EPS (SEK) Cash-flow before change in net debt Net debt Net debt / Equity 98% 96% 2% 96% Slide 7

8 Inventory losses affect EBIT Sales Sales, EBIT and uebit (SEK M) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 EBIT Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M EBIT of SEK 35 M (45) Inventory losses of SEK -8 M (+2) Underlying EBIT of SEK 43 M (47) Positive margin development vs last few quarters Slide 8

9 Cashflow affected by working capital build up Cashflow (SEK M) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 EBITDA, SEK M Change in Working Capital, SEK M Cash-flow from Operating activities, SEK M Cashflow after investments SEK -31 M (63) Investments of SEK 17 M (28) Net debt of SEK 806 M (783) Working capital tied-up 8% (8) Slide 9

10 Slide 10 BUSINESS AREAS STATUS Q1 2012

11 BA Sweden Stability in demand Sales, EBIT and uebit (SEK M) Sales EBIT Q1 11 Q2 11 Q3 11 Q4 11 Q4 12 Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M 10 0 Demand keeping up largely at Q4-levels Net sales decrease with 6% and tonnage decrease by 3% compared to Q1 11. EBIT-margin improved to 2.8% Personnel cutbacks finalized according to plan Significant production service order from Volvo Construction Equipment Slide 11

12 BA Finland Improvement vs latest quarters Sales, EBIT and uebit (SEK M) Sales 600 EBIT Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M 60 Improved demand vs Q4 Net sales decreased with 9% with tonnage decrease of 6% Underlying EBIT-margin improved to 6.7% Extended production facility in Lapua in operation Slide 12

13 BA CEE Ongoing turnaround Sales, EBIT and uebit (SEK M) Sales 400 EBIT Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M 40 Increase in net sales of 3% Increase in shipped tonnage of 12% Heavy price pressure Weak margins in Czech Republic and Poland Inventory consolidation and streamlining product range in Czech Republic more or less finalized Operations started in Trebaczew, Poland Slide 13

14 Slide 14 OUTLOOK

15 Current business situation and outlook Seasonality impact expected on Q2 demand Sales price increases during beginning of the quarter Steel producers continue to target price increases Profitability program finalized with full effect Increased utilization of investments will have positive impact Slide 15

16 Current focus Fix CEE! Preparing start-up of VCE order Yield from investments and acquisitions Continued working capital efficiency Win the market Slide 16

17 Our vision BE Group shall be the most: - Professional - Successful - Respected steel service company Slide 17

18 Slide 18

19 Slide 19 APPENDIX FINANCIAL INFORMATION

20 Appendix: Financial summary Full year Q1 Q2 Q3 Q4 Q Tonnage Net Sales 1,519 1,597 1,420 1,405 1,436 5,129 5,941 Underlying EBIT % of Sales 3.1% 2.7% 1.6% 1.3% 3.0% 1.5% 2.2% EBIT % of Sales 2.9% 4.2% 0.3% -1.4% 2.5% 1.9% 1.6% 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 20

21 Appendix: Sales per customer segment Q1 Share of total sales (MSEK) OEM & 635 partners Project Preprocessing Retail % 5% 10% 15% 20% 25% 30% 35% 40% Slide 21

22 Appendix: Sales per product area Q1 Share of total sales (MSEK) Long steel Flat steel Reinforcement Stainless steel Aluminum 71 Other % 5% 10% 15% 20% 25% 30% Slide 22

23 Appendix: Sales per channel Q1 Share of total sales (MSEK) Direct Inventory Service % 10% 20% 30% 40% Sales outside scope of channels not included Slide 23