investor relations – 2009 q1 seco tools group q1-2009
TRANSCRIPT
Investor Relations – 2009 Q1
Seco Tools GroupQ1-2009
Investor Relations – 2009 Q1
Highlights Q1
• Revenue growth was -28% in fixed currencies and -17% in SEK
• Decrease relatively evenly spread between countries and regions
• We continue to win market-share
• EBIT-margin for the quarter 7,0% (excl. restructuring 9,1%) vs. 24,7% last year
• Impacts from saving programs and currency impact only partly offsets volume decline
• Ongoing saving programs
• Programs announced in November and February comprising among other things employee reductions of 800 employees is running according to plan
• Total annual savings estimated to 500 MSEK, whereof 400 will impact 2009. Impact in Q1 is 68 MSEK
• Around 30 MSEK in additional restructuring costs estimated for Q2
• Uncertain 2009
• Stock reductions at end customers impact current demand situation
• Sales levels appear to have stabilized at low level but demand situation very difficult to assess.
• We stay the course!
• Maintain strategic direction
• Launches of several new competitive products
• New subsidiaries formed in Indonesia, Brazil and India
Investor Relations – 2009 Q1
Growth Analysis Q1
Eastern Europe excl. ALG: -33%
Fixed currency -29 %Acquisition + 1 %Currency +11 %
SEK total -17 %
Seco Tools Group
I nvoicing in local currency
-30%-28%
-22%
-34%
-28%
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
WesternEurope
NAFTA EasternEurope
Asia SouthAmerica
Investor Relations – 2009 Q1
Seco Tools Total Monthly Revenues(fixed currency)
0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 0002
00
4
20
05
20
06
20
07
20
08
20
09
TS
EK
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
% Y
-O-Y
Sales Y-o-Y Change 3 per. glid. med. (Y-o-Y Change)
Jan-Mar: -29%*)
Y-o-Y:2008 + 6%2009:Jan - 29%Feb - 31%Mar - 26%*)
Q1 - 29%
*) -30% acc. excl. structure
-27% monthly excl. structure
Investor Relations – 2009 Q1
Seco Tools Revenues, SEK M(Fixed currencies)
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Ro
llin
g 4
Q
0
500
1 000
1 500
2 000
2 500
Qu
art
er
Quarter 4Q Rolling
Financial keydata
Investor Relations – 2009 Q1
Seco Tools RevenuesYear-on-Year Change %
(Fixed currencies)
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Ro
llin
g 4
Q
Quarter 4Q rolling
Financial keydata
Investor Relations – 2009 Q1
Seco Tools revenues in fixed currencies excl ALG.Macro data up to 31/01/2009.
Seco Tools revenue development and weighted production index (12 mths rolling)
Weighted IPI consists of IPI From EU12, US, CEE and AP
Investor Relations – 2009 Q1
Western Europe - Revenues(Fixed Currency)
0
200 000
400 000
600 000
800 000
1 000 000
1 200 0001
99
9
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
SE
K 0
00
-40%
-30%
-20%
-10%
0%
10%
20%
30%
% Y
-O-Y
Y-o-Y:2008 + 4%2009:Q1 - 30%
Financial keydata
Investor Relations – 2009 Q1
Seco revenues in fixed currencies.Macro data up to 31/01/2009.
Financial keydata
EU12 Economic Indicators & Seco Western Europe 3M Average InvoicingY-o-Y % Change
Local Currencies
-10%
-5%
0%
5%
10%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Ind
ica
tors
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Se
co T
oo
ls
EU12 Industrial Production EU12 Basic and Fabricated Metals
EU12 Machinery & Equipment
Investor Relations – 2009 Q1
NAFTA - Revenues(Fixed Currency)
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
SE
K 0
00
-40%
-30%
-20%
-10%
0%
10%
20%
30%
% Y
-O-Y
Y-o-Y:2008 + 3%2009:Q1 - 28%
Financial keydata
Investor Relations – 2009 Q1
Seco revenues in fixed currencies.Macro data up to 28/02/2009.
Financial keydata
US Economic Indicators & Seco NAFTA 3M Average Invoicing
Y-o-Y % ChangeLocal Currencies
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Ind
ica
tors
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Se
co T
oo
ls
US Industrial Production Primary metals Fabricated Metals Machinery
Investor Relations – 2009 Q1
Central and Eastern Europe - Revenues(Fixed Currency)
0
50 000
100 000
150 000
200 000
250 000
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
SE
K 0
00
-30%
-20%
-10%
0%
10%
20%
30%
40%
% Y
-O-Y
Y-o-Y:2008 +17%2009:Q1 - 22%
Financial keydata
YTD -33% excl ALG
Investor Relations – 2009 Q1
Asia - Revenues(Fixed Currency)
0
50 000
100 000
150 000
200 000
250 000
300 000
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
SE
K 0
00
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
% Y
-O-Y
Y-o-Y:2008 + 5%2009:Q1 - 28%
Financial keydata
Investor Relations – 2009 Q1
The decline in historical perspective
Revenue fixed currency, quarterlyY-o-Y % Change
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Investor Relations – 2009 Q1
Cost reduction measures (1)
Personnel reductions corresponding to 250 employees globally, whereof 200 workers, in addition to the reduction of approx 100 temporaries
Quarter 4 charged with 60 MSEK in restructuring
Completed by end of quarter 1
Large decrease in external spending
Full impact from quarter 2
Announcement Nov 20
Investor Relations – 2009 Q1
Cost reduction measures (2)
Personnel reduction corresponding to 550 employees globally, whereof 410 workers
Includes agreements on reduced working time and salary in for instance Fagersta
Further reduction in external spending
Quarter 1 charged with 29 MSEK in restructuring Similar amount to be expected for quarter 2.
Completed by end of quarter 3
Full impact from quarter 4
Announcement Feb 18
Investor Relations – 2009 Q1
Total cost reductions Impact in quarter 1 is 68 MSEK
Annual cost level including both fixed and variable cost will be reduced by 500 MSEK
Impact in 2009 is estimated to approx 400 MSEK
Total personnel reduction is 800 employees, whereof around 200 are staff employees
Total savings
Cost reduction measures (3)
Investor Relations – 2009 Q1
Accumulated market growth- goal: 0,2 percentage unit per year
Target Seco
0,0%
0,2%
0,4%
0,6%
0,8%
1,0%
2005 2006 2007 2008 2009 2010
referens
We are taking market share!
Investor Relations – 2009 Q1
– Customer intimacy and understanding the customer’s manufacturing process
– Solutions orientation
– High performance products and services
– Global competence and support structures
– Distributors
Customer Intimacy and Solution Orientation
Strategic Direction
We stay the course!
Investor Relations – 2009 Q1
Positioning for Growth
Number of employees
40% field sales and technicans close to customers 2005 till 2008
Capital expenditure(excl acquisitions)
0%
2%
4%
6%
8%
10%
12%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
% o
f re
ven
ues
Time for payback and consolidation
Investor Relations – 2009 Q1
• Invoicing, SEK M 1,351 1,632
• EBIT margin 7,0% 24,7%
• EBIT, SEK M 95 403
• Earnings per share (SEK) 0,37 1,89
• ROCE (Roll 12 mths) 22,9% 40,6%
• Net debt / equity ratio 0,71 0,38
Q1-2009 Q1-2008
Financial keydata
Investor Relations – 2009 Q1
-100
-50
0
50
100
150
200
250
300
350
400
4502
00
8 Q
1
20
09
Q1
EB
IT (
MS
EK
)Result development Q1-2009
Rev. / EBIT
Rev. / EBIT
1 351 / 7%
1 351 / 7%
Volu
me a
nd
oth
er
Restr
uctu
rin
g
Cu
rren
cy
Savin
gs
Investor Relations – 2009 Q1
Revenues and EBIT margin 1988-2008
0
1000
2000
3000
4000
5000
6000
7000
8812
8912
9012
9112
9212
9312
9412
9512
9612
9712
9812
9912
0012
0112
0212
0312
0412
0512
0612
0712
0812
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
Revenues EBIT%
Financial keydata
Investor Relations – 2009 Q1
- Reduced level of trade receivables- Lower investment level
0
50
100
150
200
250
300
350
400
Q1
00
Q2
00
Q3
00
Q4
00
Q1
01
Q2
01
Q3
01
Q4
01
Q1
02
Q2
02
Q3
02
Q4
02
Q1
03
Q2
03
Q3
03
Q4
03
Q1
04
Q2
04
Q3
04
Q4
04
Q1
05
Q2
05
Q3
05
Q4
05
Q1
06
Q2
06
Q3
06
Q4
06
Q1
07
Q2
07
Q3
07
Q4
07
Q1
08
Q2
08
Q3
08
Q4
08
Q1
09
MS
EK
Operational CF EBIT
Operational Cash Flow
Operating cash flow includes changes in working capital but excludes aquistions
Financial keydata
Investor Relations – 2009 Q1
Working Capital
15%
20%
25%
30%
35%
40%
45%
50%
9803
9809
9903
9909
0003
0009
0103
0109
0203
0209
0303
0309
0403
0409
0503
0509
0603
0609
0703
0709
0803
0809
0903
15%
20%
25%
30%
35%
40%
45%
Quarter Rolling
Financial keydata
Investor Relations – 2009 Q1
Inventory
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
30%
9803
9809
9903
9909
0003
0009
0103
0109
0203
0209
0303
0309
0403
0409
0503
0509
0603
0609
0703
0709
0803
0809
0903
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
30%
Quarter Rolling
Financial keydata
Investor Relations – 2009 Q1
Trade Receivables
10%
12%
14%
16%
18%
20%
22%
24%
9803
9809
9903
9909
0003
0009
0103
0109
0203
0209
0303
0309
0403
0409
0503
0509
0603
0609
0703
0709
0803
0809
0903
10%
12%
14%
16%
18%
20%
22%
24%
Quarter Rolling
Financial keydata
Investor Relations – 2009 Q1
Shareholder Value4Q Rolling
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
2002
2003
2004
2005
2006
2007
2008
2009
0%
10%
20%
30%
40%
50%
60%
Return on Equity EPS
Financial keydata
Investor Relations – 2009 Q1
0
1
2
3
4
5
6
7
8
2003 2004 2005 2006 2007 2008Regular dividend Extra ordinary dividend
Earnings per share, SEK
Earnings and dividend per share
Investor Relations – 2009 Q1