Q1 2018 Presentation 26 April 2018 First quarter Q1 2018 In Brief - PowerPoint PPT Presentation

Q1 2018 Presentation 26 April 2018

First quarter Q1 2018 In Brief • Strong growth, both organic and acquired Solid organic growth, despite calendar effects. Order intake as sales. o • Higher underlying demand, both segments • Market share gains, both segments • Fewer working days, appears stronger in Sweden • Stable margins, but significant improvement over late 2017 Gross margin: currency and prices o EBIT margin: growth and gross margin, but also investments in Leadership o International in particular shows strong performance all metrics o • Acquisitions continue to contribute well • Good delivery performance despite high pressure • Price increases still important in 2018 2

First quarter Financial highlights, Group 12 months Δ Quarter 1 Full year rolling SEK million 2018 2018/17 2017 % 2017 Order intake 944 811 16 3,389 3,256 Net sales 945 815 16 3,331 3,201 Gross profit 277 238 956 917 16 % 29.3 29.2 28.7 28.6 Operating expenses -171 -147 16 -630 -606 18.1 18.9 % 18.0 18.9 Operating profit (EBITA) 106 91 326 311 16 % 11.2 11.1 9.8 9.7 EBITA Q1 2017 91  Strong growth, both organic and acquired Currencies +4  Stable margins, but significant improvement over late 2017 Volume +16  Acquisitions continue to contribute well Price/cost/mix/other -13  Good delivery performance despite high pressure Acquisitions +8  Price increases still important in 2018 EBITA Q1 2018 106 3

First quarter Financial development, Group Quarterly Net Sales growth Net Sales EBITA Organic growth Acquisitions and currency translation 3500 350 20 3000 300 15 LTM Net Sales, SEK millions LTM Adj EBITA, SEK million 2500 250 10 2000 200 Percent 5 1500 150 0 1000 100 -5 500 50 0 0 -10 4

First quarter Segment International Rolling 12 Δ Quarter 1 Full year months SEK million 2018 2017 2018/17 2017 % Order intake 647 531 22 2,288 2,172 Net sales 648 536 21 2,256 2,144 Gross profit 192 156 23 660 623 % 29.7 29.2 29.2 29.1 Operating expenses -121 -101 -440 -420 20 % 18.7 18.8 19.9 19.6 Operating profit (EBITA) 71 55 219 203 28 11.0 9.7 % 10.3 9.5 EBITA Q1 2017 55  Net sales grew by 21%, whereof 9% organic Currencies +4  Higher underlying demand and increased market share Volume +13  Gross margin higher than last year: currencies, price increases Price/cost/mix/other -9  Good growth and leverage drive strong margin and EBITA improvement Acquisition +8  Acquisitions continue to contribute well EBITA Q1 2018 71 5

First quarter Financial development, International Quarterly Net Sales growth Net Sales EBITA Organic growth Acquisitions and currency translation 2500 250 35 30 25 2000 200 LTM Net Sales, SEK millions LTM Adj EBITA, SEK million 20 1500 150 15 Percent 10 5 1000 100 0 -5 500 50 -10 -15 0 0 6

First quarter Segment Sweden Rolling 12 Δ Quarter 1 Full year months SEK million 2018 2018/17 2017 % 2017 Order intake 297 280 1,106 1,089 6 Net sales 297 279 1,075 1,057 7 Gross profit 89 86 315 312 3 29.9 29.3 % 30.9 29.5 Operating expenses -47 -45 5 -175 -173 % 15.8 16.1 16.3 16.4 Operating profit (EBITA) 42 41 2 140 139 % 14.1 14.9 13.0 13.2 EBITA Q1 2017 41  Net sales increased by 7%, all organic Currencies 0  Higher underlying demand and increased market share Volume +3  Gross margin negatively affected by higher purchasing prices recent Price/cost/mix/other -2 quarters, however… Acquisition 0  …the margin was higher than in 4Q17 due to implemented price EBITA Q1 2018 42 increases 7

First quarter Financial development, Sweden Quarterly Net Sales growth Organic growth Currency translation effects and acquisition Net Sales EBITA 20 2000 200 15 LTM Net Sales, SEK millions 1500 150 LTM Adj EBITA, SEK million 10 5 Percent 1000 100 0 -5 500 50 -10 0 0 -15 8

First quarter Acquisitions since 2014 9

First quarter NWC as % of Net Sales (12 months rolling) 40 39 38 37 36 35 34 33 32 31 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 Bufab Group Excluding Apex 10

First quarter EBITA Bridge Group International Sweden Other EB ITA Q1 2017 91 55 41 -6 Currency +4 +4 0 0 Volume +16 +13 +3 0 Price/cost/mix/other -13 -9 -2 -1 Acquisitions +8 +8 0 0 EBITA Q1 2018 106 71 42 -7 11

First quarter Summary and outlook Q1 Summary • Strong growth; demand - market share - acquisitions • Stable gross margin but significant improvement over Q4 due to currency and price increases • Good delivery performance despite high pressure • Acquisitions continue to contribute well Outlook • Strong demand and order intake in line with net sales • Due to continued raw material price increases in 2017, the ambition is to implement further price increases in 2018 • Continued investments in our “Leadership 2020” initiatives 12

Q&A 13 www.bufab.com