Q3 2014 Presentation Vrnamo, November 4, 2014 Third quarter Who we - PowerPoint PPT Presentation

Q3 2014 Presentation Värnamo, November 4, 2014

Third 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

Third 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

Third quarter Volume vs. value 4

Third 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

Third 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 IMPROVED EFFICIENCY Bufab’s capital structure shall provide a high degree of financial <80% 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. 6

Third quarter Bufab´s Strategy Quality and Customer First! Accelerated organic Improved cost/capital Value-adding 2 Growth Efficiency Acquisitions • New Business Growth - • Consolidate Sourcing • Good Base Performance Customer Value Creation • Growth Synergies • Logistics Productivity • Products • All of Bufab, All the Time • Geography • Common Tools and • Customer • Global Parts Productivity ™ Processes • Shared Value Creation 7

Third quarter Financial highlights, Group 12 month Δ Δ Δ Jan-Sep Full year Quarter 3 rolling SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 % Order intake 528 503 5.0 1,656 1 553 6.7 2,175 2,072 5.0 Net sales 536 490 9.4 1,667 1 519 9.7 2,178 2,031 7.3 Gross margin, % 28.4 28.2 29.5 29.0 29.7 29.3 Adjusted operating profit* 48 49 -3.7 159* 148 7.8 214 203 5.7 Adjusted operating margin, % 8.9 10.1 9.5 9.7 9.8 10.0 *Excluding IPO costs of 18 MSEK Strong growth in a weaker market Operating margin � Order intake weaker than net sales � Positively affected by higher sales � Adjusted for currency translation 6.2 % � Negatively affected by higher costs for sales � Strategic initiatives showing result – higher organization – now levelling out � Strong comparable Q3 2013 market shares for segment International � Weaker underlying demand 8

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

Third quarter Segment Sweden 12 month Quarter 3 Δ Jan-Sep Δ Δ rolling SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 % Order intake* 212 237 -10.2 736 757 -2.8 977 998 -2.1 Net sales* 220 218 1.2 752 727 3.5 995 970 2.6 Adjusted operating profit 29 31 -6.1 117 103 13.3 157 143 9.6 Adjusted operating margin, % 13.3 14.3 15.5 14.2 15.8 14.8 *Pertains to net sales and order intake from external customers Weaker order intake Slightly weaker operating margin • Decreased order intake from one customer to • Higher operating costs manufacturing subsidiary • Q3 as a rule weaker than other quarters Net sales in line with last year • Negatively affected by customers moving production abroad which shows up in segment International, weaker demand 10

Third 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 2 1000 10 1 0 -2 500 5 -5 -6 -6 -7 -9 0 0 -10 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2013 2013 2013 2013 2014 2014 2014 2012 2012 2013 2013 2013 2013 2014 2014 2014 Net sales LTM, MSEK Adjusted Operating Margin, % 11

Third quarter Segment International 12 month Quarter 3 Δ Jan-Sep Δ Δ rolling SEK millions 2014 % 2014 % 2013/14 % 2013 2013 2013 316 921 1,198 Order intake* 267 18.5 797 15.6 1,074 11.5 Net sales* 316 272 15.9 914 792 15.4 1,183 1,061 11.5 Adjusted operating profit 23 27 -13.6 63 64 -2.4 82 83 -1.9 Adjusted operating margin, % 7.3 9.8 6.9 8.1 6.9 7.8 *Pertains to net sales and order intake from external customers Order intake in line with net sales Operating margin � Positively affected by higher sales Strong sales growth � Adjusted for currency effects 10.0% � Negatively by higher cost for stronger sales organization � Strategic initiatives showing results � Comparable earnings in 2013 positively impacted by � Higher market shares better business mix as well as of revaluation items of 4 MSEK 12

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

Third quarter Net working capital 1000 50,0% 800 45,0% As of % of net sales 600 40,0% SEK millions 400 35,0% 200 30,0% 0 25,0% Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Net Working Capital As of % of net sales 14

Third quarter Summary Q3 2014 � Strong growth in a weaker market – increased market shares � Order intake in Sweden weaker than net sales � Margin somewhat weaker than strong Q3 2013 � Increased earnings per share 15

BACK UP 16

Third quarter Consolidated income statement Quarter 3 SEK millions 2014 2013 Net sales 536 490 Cost of goods sold -384 -352 Gross profit 152 138 Distribution costs -77 -61 Administrative expenses -28 -29 Other operating income 6 8 Other operating expenses -5 -5 Operating profit Note 1 48 51 Profit/loss from financial items Interest and similar income 0 0 Interest and similar expenses -6 -10 Profit after financial items 42 41 Tax on profit of the period -11 -11 Profit for the period 31 30 17

Third quarter Consolidated balance sheet 30-sep-14 30-sep-13 31-dec-13 SEK millions ASSETS Non-current assets Intangible assets 745 739 739 Property, land and equipment 144 130 145 Financial assets 25 26 25 Total non-current assets 914 895 909 Current assets Inventories 670 585 626 Current receivables 516 470 440 Cash and cash equivalents 94 97 98 Total current assets 1,280 1,152 1,164 Total assets 2,194 2,047 2,073 EQUITY AND LIABILITIES Equity 1,121 966 1,012 Non-current liabilities Non-current liabilities, interest bearing 600 507 479 Non-current liabilities, non-interest 29 25 29 bearing Total non-current liabilities 629 532 508 Current liabilities Current liabilities, interest bearing 86 203 227 Current liabilities, non-interest bearing 358 346 326 Total current liabilities 444 549 553 Total equity and liabilities 2,194 2,047 2,073 18

Third quarter Key figures Quarter3 Δ 2014 % 2013 528 Order intake, SEK million 503 5,0 Net sales, SEK million 536 490 9,4 Gross profit, SEK million 152 138 10,1 Adjusted EBITDA, SEK million 56 57 -2,8 Operating profit, SEK million 48 51 -6,5 Adjusted operating profit, SEK million 48 49 -3,7 Profit after tax, SEK million 31 30 3,0 Gross margin, % 28,4 28,2 Operating margin, % 8,9 10,4 Adjusted operating margin, % 8,9 10,1 Net margin, % 5,8 6,1 Net debt, SEK million 592 613 -3,4 Debt/equity ratio, % 53 63 Net debt / adjusted EBITDA 2,4 2,7 Working capital, SEK million 828 709 Working capital / net sales, % 36,2 35,5 Equity/assets ratio, % 51 47 Operating cash flow, SEK million 34 46 Earnings per share, SEK 0,81 0,79 19