Q2 2014 Presentation

Värnamo, August 13, 2014

2

Second 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

Second 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

Second quarter

5

Global Parts Productivity™

Second quarter

Over 120 000C-Parts

GlobalSupplierNetwork

In-houseProduction

CUSTOMERSATISFACTION

Lower total cost

Secured quality

Reliable delivery

Less complexity

Focus on core

6

Second quarter

Bufab’s strategy

2

Quality and Customer First!

Accelerated organic

GrowthImproved cost/capital

EfficiencyValue-adding

Acquisitions

7

Financial targets

Second 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

IMPROVED EFFICIENCY

VALUE-ADDING

ACQUISITIONS

8

Financial highlights, Group

Second quarter

Quarter 2

Continued good growth

�Adjusted for currency translation 6.4 %

�Strategic initiatives showing results – higher

market shares for segment International

�Higher underlying demand

*Excluding IPO costs of 18 MSEK

Improved gross margin

�Efficiency initiatives �

lower purchasing prices and supply chain costs

Operating margin

�Positively affected by higher sales, higher gross margin

�Negatively affected by higher costs for sales organization

� Improved Profit after tax and EPS

LTMQuarter 2 Δ Jan-Jun Δ Δ

SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 %

Order intake 565 530 6.5 1,128 1,050 7.4 2,150 2,072 3.7

Net sales 579 534 8.4 1,131 1,029 9.9 2,132 2,031 5.0

Gross margin, % 30.5 30.3 30.0 29.5 29.6 29.3

Adjusted operating profit 60 58 3.7 111* 98 13.6 216* 203 6.6

Adjusted operating margin, % 10.3 10.8 9.9 9.5 10.1 10.0

Profit after tax 44 40 8.4 61 63 -3.0 129 131 -1.5

Earnings per share 1.16 1.07 8.4 1.61 1.66 -3.0 3.38 3.43 -1.5

0

3

6

9

12

15

0

500

1000

1500

2000

2500

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Marg

in, %

LT

M N

et sale

s, S

EK

mill

ions

LTM Net sales, MSEK LTM Adjusted Operating Margin, %

-6 -6 -6

-8

-1

6

4

10

6

-10

-5

0

5

10

15

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

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

9

Financial development, Group

Second quarter

*Adjusted for currency translation effects

10

Segment Sweden

Second quarter

Quarter 2

Sustainable sales growth

�Stronger underlying demand

�Negatively affected by customers moving

production abroad which shows up positive in

segment International

Improved operating margin

�Higher sales

� Improved capacity utilization, savings and a revaluation

of SEK 3 M

LTMQuarter 2 Δ Jan-Jun Δ Δ

SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 %

Order intake* 255 257 -0.7 523 520 0.6 1,001 998 0.3

Net sales* 269 263 2.5 532 509 4.5 993 970 2.4

Adjusted operating profit 47 42 11.7 87 72 21.8 159 143 10.9

Adjusted operating margin, % 17.5 16.1 16.4 14.1 16.0 14.8

*Pertains to net sales and order intake from external customers

0

5

10

15

20

0

500

1000

1500

2000

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Marg

in, %

LT

M N

et sale

s, S

EK

mill

ions

LTM Net sales, MSEK LTM Adjusted Operating Margin, %

-3

-6

-7

-9

-6

-2

3

6

2

-10

-5

0

5

10

15

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Quarterly year-on-year net sales growth, %

11

Financial development, segment Sweden

Second quarter

12

Segment International

Second quarter

Quarter 2

Strong sales growth

�Adjusted for currency effects 10.2%

�Strategic initiatives showing results

� Improved underlying demand

Operating margin

�Positively affected by higher sales

�Negatively affected by higher costs for sales

organization

�Comparable earnings Q2 2013 impacted by +4 MSEK

for project business and revaluation item

LTMQuarter 2 Δ Jan-Jun Δ Δ

SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 %

Order intake* 310 273 13,4 605 530 14.1 1,149 1,074 6.9

Net sales* 310 271 14,1 599 520 15.1 1,140 1,061 7.4

Adjusted operating profit 23 23 -2,4 40 38 5.5 85 83 2.5

Adjusted operating margin, % 7.3 8.5 6.6 7.2 7.5 7.8

*Pertains to net sales and order intake from external customers

0,0

5,0

10,0

15,0

20,0

0

500

1000

1500

2000

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Marg

in, %

LT

M N

et sale

s, S

EK

mill

ions

LTM Net sales, MSEK LTM Adjusted Operating Margin, %

-8

-6-5

-7

5

13

6

14

10

-10

-5

0

5

10

15

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

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

13

Financial development, segment International

Second quarter

*Adjusted for currency translation effects

14

Second quarter

25,0%

30,0%

35,0%

40,0%

45,0%

0

200

400

600

800

1000

Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

As o

f%

ofnetsale

sS

EK

mill

ions

Net Working Capital Average of NWC as a % of NS LTM

Net working capital

15

Second quarter

� Continued good growth

– Highest quarterly sales ever

– Increased market shares

– Underlying demand increased

� Higher operating profit

– Improved by;

� Higher Sales

� Improved efficiency

– Lowered by;

� Higher selling cost

� Improved Profit after tax and EPS

� Uncertain demand outlook but continued stable order intake

Summary Q2 2014

16

BACK UP

Second quarter

Consolidated income statement

17

Quarter 2 Jan–Jun

SEK millions 2014 2013 2014 2013

Net sales 579 534 1,131 1,029

Cost of goods sold -402 -372 -791 -725

Gross profit 177 162 339 304

Distribution costs -86 -76 -168 -147

Administrative expenses -34 -33 -82 -62

Other operating income 8 10 13 15

Other operating expenses -4 -5 -8 -12

Operating profit Note 1 60 58 93 98

Profit/loss from financial items

Interest and similar income 2 0 2 1

Interest and similar expenses -3 -4 -12 -15

Profit after financial items 59 54 83 84

Tax on profit of the period -15 -14 -22 -21

Profit for the period 44 40 61 63

Second quarter

Consolidated balance sheet

18

30-jun-14 30-jun-13 31-dec-13SEK millions

ASSETS

Non-current assets

Intangible assets 744 740 739

Property, land and equipment 146 135 145

Financial assets 24 25 25

Total non-current assets 914 900 909

Current assets

Inventories 657 575 626

Current receivables 522 492 440

Cash and cash equivalents 79 84 98

Total current assets 1,258 1,151 1,164

Total assets 2,172 2,051 2,073

EQUITY AND LIABILITIES

Equity 1,085 940 1,012

Non-current liabilities

Non-current liabilities, interest bearing 599 508 479

Non-current liabilities, non-interest

bearing29 26 29

Total non-current liabilities 628 534 508

Current liabilities

Current liabilities, interest bearing 91 216 227

Current liabilities, non-interest bearing 368 361 326

Total current liabilities 459 577 553

Total equity and liabilities 2,172 2,051 2,073

Second quarter

Key figures

19

Quarter 2 Δ Jan-Jun Δ

2014 2013 % 2014 2013 %

Order intake, SEK million 565 530 6.5 1,128 1,050 7.4

Net sales, SEK million 579 534 8.4 1,131 1,029 9.9

Gross profit, SEK million 177 162 9.3 339 304 11.7

Adjusted EBITDA, SEK million 68 65 3.5 127 114 11.7

Operating profit, SEK million 60 58 3.7 93 98 -5.2

Adjusted operating profit, SEK million 60 58 3.7 111 98 13.6

Profit after tax, SEK million 44 40 8.4 61 63 -3.0

Gross margin, % 30.5 30.3 30.0 29.5

Operating margin, % 10.3 10.8 8.2 9.5

Adjusted operating margin, % 10.3 10.8 9.9 9.5

Net margin, % 7.7 7.6 5.4 6.1

Net debt, SEK million 611 640 -4.5

Debt/equity ratio, % 56 68

Net debt / adjusted EBITDA 2.5 3.3

Working capital, SEK million 811 706

Working capital / net sales, % 35.8 36.0

Equity/assets ratio, % 50 46

Operating cash flow, SEK million 24 56 34 125

Earnings per share, SEK 1.16 1.07 1.61 1.66

20

Shareholders

Second quarter

Shareholders

Number of

shares

Share of

capital and votes, %

Bufab S.à.r.l 7,627,620 20.0

Lannebo Fonder 3,100,000 8.1

Invesco Funds 1,922,826 5.0

Carnegie Fonder 1,683,035 4.4

Handelsbanken Fonder 1,559,788 4.1

Grandeur Peak 1,534,300 4,0

Fondita Nordic Micro Cap SR 1,160,000 3.0

JPMorgan Chase N.A 1,157,730 3.0

Spiltan Fonder 901,397 2.4

State Street Bank & Trust Com,

Boston 848,755 2.2

Total, largest shareholders 21,495,451 56.2

Other shareholders 16,615,138 43.8

Geographical distribution

Sweden, 34%

Other Nordic, 5%

Other Europe,48%

USA, 11%

Other, 2%

June 30, 2014