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

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 materials, and services to the industry worldwide, providing solutions in manufacturing, quality, sourcing and logistics. Bufab’s offering – Global Parts Productivity TM It helps our customers reduce total cost and complexity, free up capital, achieve stable quality and deliveries. 2

First quarter Bufab Group Established Approx 2 000 MSEK in turnover in 1977 Around 800 Headquarters in 120 000 employees Värnamo, Sweden articles 12 000 30 wholly owned Listed on the In-house stock exchange customers subsidiaries in production 23 countries 3

First quarter Volume vs. value 4

First quarter Global Parts Productivity™ Global Over Supplier 120 000 Network C-Parts Lower total cost Secured quality Reliable delivery Less complexity CUSTOMER Focus on core SATISFACTION In-house Production 5

First quarter Bufab’s strategy 1 2 3 Selective Accelerated growth Efficiency initiatives acquisitive growth 6

First quarter Financial targets Sales growth Bufab’s goal is to achieve average annual organic growth over a +3 ppt 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. Profitability 12 % Bufab targets an average operating margin of 12 percent over a ACCELERATED business cycle. ORGANIC GROWTH Capital structure INCREASED Bufab’s capital structure shall provide a high degree of financial <80% EFFICIENCY flexibility and make acquisitions possible. The net debt/equity ratio should not exceed 80%. VALUE-ADDING ACQUISITIONS Net working capital 30% Bufab’s long-term goal is to achieve a net working capital/net sales ratio of 30 percent. Dividend policy Bufab’s target is to pay 50 percent of its net profit in dividends. 50% However, the company’s financial condition, cash flow, acquisition opportunities and future prospects will be taken into account in any dividend decision. 7

First quarter Financial highlights, Group 12 month Change Full year Change Quarter 1 rolling 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 *Excluding IPO costs of 18 MSEK Strong sales growth Improved gross margin � Adjusted for currency translation +10.5% � Efficiency initiatives � � Stronger economic conditions lower purchasing prices and supply chain costs � Strategic initiatives showing result Improved operating margin � Weak Q1 2013 – as comparison � Positively affected by higher sales, higher gross margin � Negatively affected by higher costs for sales Order intake exceeds net sales organization and warehouse move in Finland 8

First quarter Financial development, Group Quarterly year-on-year net sales growth, %* 2500 15 15 10 2000 12 10 LTM Net sales, SEK millions 6 4 1500 9 5 Margin, % 1000 6 0 -1 -3 500 3 -5 -6 -6 -6 -8 0 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2012 2012 2012 2012 2013 2013 2013 2013 2014 LTM Net sales 12 M, MSEK *Adjusted for currency translation effects Adjusted Operating Margin 12 M, % 9

First quarter Segment Sweden 12 month Quarter 1 Change Full year Change rolling 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 Improved operating margin � Stronger economic conditions � Higher sales � Strategic initiatives showing result � Improved capacity utilization and savings � Negatively affected by customers moving � Negatively by price adjustments production Order intake exceeds net sales 10

First quarter Financial development, segment Sweden Quarterly year-on-year net sales growth, % 2000 20 15 10 1500 15 LTM Net sales, SEK millions 6 5 Margin, % 3 1000 10 0 -2 500 5 -3 -5 -4 -6 -6 -7 -9 0 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2012 2012 2012 2012 2013 2013 2013 2013 2014 LTM Net sales 12 M, MSEK Adjusted Operating Margin 12 M, % 11

First quarter Segment International 12 month Quarter 1 Change Full year Change rolling 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 Strong sales growth Operating margin same as LY � Adjusted for currency translation +13.6% � Positively affected by sales increase and purchasing � Stronger economic conditions savings � Strategic initiatives showing results � Negatively by higher cost for sales organization and warehouse move in Finland Order intake exceeds net sales 12

First quarter Financial development, segment International Quarterly year-on-year net sales growth, %* 14 2000 20,0 15 13 10 1500 15,0 LTM Net sales, SEK millions 6 5 5 Margin, % 1000 10,0 0 500 5,0 -3 -5 -5 -6 -7 -8 0 0,0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 2012 2012 2012 2012 2013 2013 2013 2013 2014 LTM Net sales 12 M, MSEK *Adjusted for currency translation effects Adjusted Operating Margin 12 M, % 13

First quarter Net working capital 800 45,0% 600 40,0% As of % of net sales SEK millions 400 35,0% 200 30,0% 0 25,0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Net Working Capital As of % of net sales Q1 2014 increase in receivables 14

First quarter Summary Q1 2014 � 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 15

BACK UP 16

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 -4 -7 Operating profit 33 41 Profit/loss from financial items Interest and similar income 0 0 Interest and similar expenses -8 -11 Profit after financial items 25 30 Tax on profit of the period -8 -7 Profit for the period 17 23

First quarter Consolidated balance sheet SEK millions 31-mar-14 31-mar-13 31-dec-13 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

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

First quarter Shareholders Share of Number of capital and Shareholder shares votes, % Geographical distribution Bufab S.à.r.l 7,627,620 20.0 Lannebo Fonder 2,110,944 5.5 Carnegie Fonder 1,469,000 3.8 Sweden, 34% Handelsbanken Fonder 1,364,939 3.6 Luxemburg, 23% UK, 23% Enter Fonder 1,092,400 2.9 USA, 10% JPMorgan Chase N.A 1,020,665 2.7 Other, 10% 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 20