Q1 2014 Presentation Stockholm, April 29, 2014 First quarter Who - - PowerPoint PPT Presentation

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Q1 2014 Presentation Stockholm, April 29, 2014 First quarter Who - - PowerPoint PPT Presentation

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Q1 2014 Presentation Stockholm, April 29, 2014 First quarter Who we are Bufab is a leading Supply Chain Partner . We provide C-Parts , covering everything from traditional fasteners to complicated processed and assembled components in different

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Q1 2014 Presentation

Stockholm, April 29, 2014

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First quarter

Bufab is a leading Supply Chain Partner. We provide C-Parts, covering everything from traditional fasteners to complicated processed and assembled components in different materials, and services to the industry worldwide, providing solutions in manufacturing, quality, sourcing and logistics. Bufab’s offering – Global Parts ProductivityTM It helps our customers reduce total cost and complexity, free up capital, achieve stable quality and deliveries.

Who we are

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Bufab Group

First quarter Established in 1977 Around 800 employees 30 wholly owned subsidiaries in 23 countries Approx 2 000 MSEK in turnover Headquarters in Värnamo, Sweden 120 000 articles Listed on the stock exchange 12 000 customers In-house production

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Volume vs. value

First quarter

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Global Parts Productivity™

First quarter

Over 120 000 C-Parts Global Supplier Network In-house Production

CUSTOMER SATISFACTION

Lower total cost Secured quality Reliable delivery Less complexity Focus on core

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First quarter

Bufab’s strategy

Accelerated growth Efficiency initiatives Selective acquisitive growth

1 2 3

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Financial targets

First quarter Sales growth Bufab’s goal is to achieve average annual organic growth over a business cycle exceeding the growth of the manufacturing industry in countries where Bufab is active by three percentage

  • points. In addition, Bufab intends to grow through acquisitions.

+3 ppt

Profitability Bufab targets an average operating margin of 12 percent over a business cycle.

12 %

Capital structure Bufab’s capital structure shall provide a high degree of financial flexibility and make acquisitions possible. The net debt/equity ratio should not exceed 80%.

<80%

Net working capital Bufab’s long-term goal is to achieve a net working capital/net sales ratio of 30 percent.

30%

Dividend policy Bufab’s target is to pay 50 percent of its net profit in dividends. However, the company’s financial condition, cash flow, acquisition opportunities and future prospects will be taken into account in any dividend decision.

50%

ACCELERATED ORGANIC GROWTH INCREASED EFFICIENCY VALUE-ADDING ACQUISITIONS

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Financial highlights, Group

First quarter 12 month rolling Quarter 1 Change Full year Change SEK millions 2014 2013 % 2013/14 2013 % Order intake 563 520 8.3 2,115 2,072 2.1 Net sales 552 495 11.5 2,088 2,031 2.8 Gross margin, % 29.5 28.7 29.5 29.3 Adjusted operating profit 52* 41 27.3 214 203 5.4 Adjusted operating margin, % 9.4 8.2 10.2 10.0 Strong sales growth Adjusted for currency translation +10.5% Stronger economic conditions Strategic initiatives showing result Weak Q1 2013 – as comparison Order intake exceeds net sales

*Excluding IPO costs of 18 MSEK

Improved gross margin Efficiency initiatives lower purchasing prices and supply chain costs Improved operating margin Positively affected by higher sales, higher gross margin Negatively affected by higher costs for sales

  • rganization and warehouse move in Finland
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3 6 9 12 15 500 1000 1500 2000 2500 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Margin, % LTM Net sales, SEK millions LTM Net sales 12 M, MSEK Adjusted Operating Margin 12 M, %

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  • 6
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  • 1

6 4 10

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5 10 15 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Quarterly year-on-year net sales growth, %*

9

Financial development, Group

First quarter

*Adjusted for currency translation effects

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Segment Sweden

First quarter 12 month rolling Quarter 1 Change Full year Change SEK millions 2014 2013 % 2013/14 2013 % Order intake 268 263 1.8 1,003 998 0.5 Net sales 263 246 6.8 987 970 1.7 Adjusted operating profit 40 30 36.3 153 143 7.0 Adjusted operating margin, % 15.3 12.0 15.5 14.8 Good sales growth Stronger economic conditions Strategic initiatives showing result Negatively affected by customers moving production Improved operating margin Higher sales Improved capacity utilization and savings Negatively by price adjustments Order intake exceeds net sales

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5 10 15 20 500 1000 1500 2000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Margin, % LTM Net sales, SEK millions LTM Net sales 12 M, MSEK Adjusted Operating Margin 12 M, %

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3 6

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5 10 15 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Quarterly year-on-year net sales growth, %

11

Financial development, segment Sweden

First quarter

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Segment International

First quarter Strong sales growth Adjusted for currency translation +13.6% Stronger economic conditions Strategic initiatives showing results Operating margin same as LY Positively affected by sales increase and purchasing savings Negatively by higher cost for sales organization and warehouse move in Finland Order intake exceeds net sales 12 month rolling Quarter 1 Change Full year Change SEK millions 2014 2013 % 2013/14 2013 % Order intake 295 257 14.9 1,112 1,074 3.5 Net sales 289 250 15.7 1,100 1,061 3.7 Adjusted operating profit 17 15 12.6 85 83 2.4 Adjusted operating margin, % 6.0 6.0 7.8 7.8

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0,0 5,0 10,0 15,0 20,0 500 1000 1500 2000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Margin, % LTM Net sales, SEK millions LTM Net sales 12 M, MSEK Adjusted Operating Margin 12 M, %

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5 13 6 14

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5 10 15 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Quarterly year-on-year net sales growth, %*

13

Financial development, segment International

First quarter

*Adjusted for currency translation effects

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First quarter

25,0% 30,0% 35,0% 40,0% 45,0% 200 400 600 800 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 As of % of net sales SEK millions Net Working Capital As of % of net sales

Net working capital

Q1 2014 increase in receivables

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First quarter

Strong growth in net sales

– Weak Q1 2013

Good margin improvement

– However higher costs in International, due to sales initiatives and costs in Finland

Increased net working capital driven by growth

– Increased net sales and therefore higher accounts receivables

Order intake exceeds net sales

Summary Q1 2014

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BACK UP

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First quarter

Consolidated income statement

Quarter 1 SEK millions 2014 2013 Net sales 552 495 Cost of goods sold

  • 390
  • 353

Gross profit 162 142 Distribution costs

  • 82
  • 70

Administrative expenses

  • 48
  • 29

Other operating income 5 5 Other operating expenses

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  • 7

Operating profit 33 41 Profit/loss from financial items Interest and similar income Interest and similar expenses

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Profit after financial items 25 30 Tax on profit of the period

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Profit for the period 17 23

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First quarter

Consolidated balance sheet

31-mar-14 31-mar-13 31-dec-13 SEK millions ASSETS Non-current assets Intangible assets 742 739 739 Property, land and equipment 140 138 145 Financial assets 25 25 25 Total non-current assets 907 902 909 Current assets Inventories 635 556 626 Current receivables 502 457 440 Cash and cash equivalents 76 80 98 Total current assets 1,213 1,093 1,164 Total assets 2,120 1,995 2,073 EQUITY AND LIABILITIES Equity 1,031 887 1,012 Non-current liabilities Non-current liabilities, interest bearing 598 542 479 Non-current liabilities, non-interest bearing 29 26 29 Total non-current liabilities 627 568 508 Current liabilities Current liabilities, interest bearing 100 221 227 Current liabilities, non-interest bearing 362 319 326 Total current liabilities 462 540 553 Total equity and liabilities 2,120 1,995 2,073

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First quarter

Key figures

Quarter 1 Change 2014 2013 % Order intake, SEK million 563 520 8.3 Net sales, SEK million 552 495 11.5 Gross profit, SEK million 162 142 14.4 Adjusted EBITDA, SEK million 60 49 23.6 Operating profit, SEK million 33 41

  • 18.0

Adjusted operating profit, SEK million 52 41 27.3 Profit after tax, SEK million 17 23

  • 24.8

Gross margin, % 29.5 28.7 Operating margin, % 6.0 8.2 Adjusted operating margin, % 9.4 8.2 Net margin, % 3.1 4,6 Net debt, SEK million 622 683

  • 8.9

Debt/equity ratio, % 60 77 Net debt / adjusted EBITDA 2,5 4.3 Working capital, SEK million 775 694 Working capital / net sales, % 35.5 36.5 Equity/assets ratio, % 49 44 Operational cash flow, SEK million 9 69 Earnings per share, SEK 0.45 0.59

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Shareholders

First quarter Shareholder Number of shares Share of capital and votes, % Bufab S.à.r.l 7,627,620 20.0 Lannebo Fonder 2,110,944 5.5 Carnegie Fonder 1,469,000 3.8 Handelsbanken Fonder 1,364,939 3.6 Enter Fonder 1,092,400 2.9 JPMorgan Chase N.A 1,020,665 2.7 Fondita Nordic Micro Cap SR 1,010,000 2.6 JPMorgan Chase N.A 841,701 2.2 Didner & Gerge Fonder Aktiebolag 825,000 2.2 State Street Bank & Trust Com, Boston 785,681 2.1 Total, largest shareholders 18,147,950 47.6 Other shareholders 19,962,583 52.4 Geographical distribution

Sweden, 34% Luxemburg, 23% UK, 23% USA, 10% Other, 10%