bufab group - q1 presentation [skrivskyddad]3 bufab group first quarter established in 1977 around...
TRANSCRIPT
Q1 2014 Presentation
Stockholm, April 29, 2014
2
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
3
Bufab Group
First quarter
Established
in 1977
Around 800
employees
30 wholly owned
subsidiaries in23 countries
Approx 2 000 MSEK in turnover
Headquarters in
Värnamo, Sweden
120 000
articles
Listed on the stock exchange
12 000customers
In-house
production
4
Volume vs. value
First quarter
5
Global Parts Productivity™
First quarter
Over 120 000C-Parts
GlobalSupplierNetwork
In-houseProduction
CUSTOMERSATISFACTION
Lower total cost
Secured quality
Reliable delivery
Less complexity
Focus on core
6
First quarter
Bufab’s strategy
Accelerated growth Efficiency initiativesSelective
acquisitive growth
1 2 3
7
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
8
Financial highlights, Group
First quarter
12 month
rollingQuarter 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
organization and warehouse move in Finland
0
3
6
9
12
15
0
500
1000
1500
2000
2500
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Marg
in, %
LT
M N
et sale
s, S
EK
mill
ions
LTM Net sales 12 M, MSEK
Adjusted Operating Margin 12 M, %
-3
-6 -6 -6
-8
-1
6
4
10
-10
-5
0
5
10
15
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Quarterly year-on-year net sales growth, %*
9
Financial development, Group
First quarter
*Adjusted for currency translation effects
10
Segment Sweden
First quarter
12 month
rollingQuarter 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
0
5
10
15
20
0
500
1000
1500
2000
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Marg
in, %
LT
M N
et sale
s, S
EK
mill
ions
LTM Net sales 12 M, MSEK
Adjusted Operating Margin 12 M, %
-4
-3
-6
-7
-9
-6
-2
3
6
-10
-5
0
5
10
15
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Quarterly year-on-year net sales growth, %
11
Financial development, segment Sweden
First quarter
12
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
rollingQuarter 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
0,0
5,0
10,0
15,0
20,0
0
500
1000
1500
2000
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Marg
in, %
LT
M N
et sale
s, S
EK
mill
ions
LTM Net sales 12 M, MSEK
Adjusted Operating Margin 12 M, %
-3
-8
-6-5
-7
5
13
6
14
-10
-5
0
5
10
15
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Quarterly year-on-year net sales growth, %*
13
Financial development, segment International
First quarter
*Adjusted for currency translation effects
14
First quarter
25,0%
30,0%
35,0%
40,0%
45,0%
0
200
400
600
800
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
As o
f%
ofnetsale
sS
EK
mill
ions
Net Working Capital As of % of net sales
Net working capital
Q1 2014 increase in receivables
15
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
16
BACK UP
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
31-mar-14 31-mar-13 31-dec-13SEK 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
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
20
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%