Q1 2020 Presentation April 21, 2020 First quarter Q1 2020 in - PowerPoint PPT Presentation

Q1 2020 Presentation April 21, 2020

First quarter Q1 2020 in Brief • Sales up +21% 24% acquired, -5% organic and 2% currency. Order intake in line with net sales o Lower underlying demand but unchanged market share o • All-time-high sales, order intake and operating profit. Strong cash flow. • Overall, impact on of the COVID-19 pandemic was low in Q1, … • …but in April demand so far is down by 30% due to customer closures and government restrictions in Europe and North America. • Forceful measures taken to protect Health, Customer Quality and Delivery, and to meet lower demand in Q2 Short-time work schemes and some layoffs – working time reduced by 30% in April o Reduction all other cost and capex where possible o Ready to take more measures if demand falls further o Action program prioritises speed and retained flexibility o 2

First quarter Financial highlights, Group 12-months Quarter 1 Δ Full year rolling SEK million 2020 2019 2020/19 2019 % Order intake 1,321 1,084 4,591 4,354 22 Net sales 1,316 1,091 21 4,573 4,348 Gross profit 351 304 16 1,230 1,183 % 26.7 27.9 26.9 27.2 Operating expenses -226 -184 22 -841 -799 % -17.2 -16.9 -18.4 -18.4 Operating profit (EBITA) 126 119 390 384 5 % 9.5 10.9 8.5 8.8 Profit after tax 86 84 255 253 3 Earnings per share, SEK 2.31 2.23 4 6.83 6.75 EBITA Q1 2019 119 Currencies -6 Volume -16 Price/cost/mix/other +5 Acquisitions +24 EBITA Q1 2020 126 3

First quarter Financial development, Group Quarterly Net Sales growth Net Sales EBITA Organic growth Total growth 5 000 500 25 4 500 450 20 4 000 400 LTM Net Sales, SEK millions 3 500 350 LTM EBITA, SEK million 15 3 000 300 10 Percent 2 500 250 5 2 000 200 1 500 150 0 1 000 100 -5 500 50 0 0 -10 4

First quarter Bufab’s priorities during Corona crisis Protect 1 Health (team, families, society—prove we’re Responsible Partner) Protect 2 Customers (deliveries, flexibility, troubleshooting—prove we’re Solutionists) Protect 3 Bufab (it’s where we work—prove we’re Entrepreneurs w/Big Hearts) 5

First quarter In April, we are entering the second phase Jan-March April- Secure health Flexibly adapt and delivery to changing market Protect… Protect… Health Health Customers Customers Bufab 6

First quarter Corona virus pandemic means tough Q2 Negative Impact Strong Measures Taken, on Q2 Sales Flexibility Retained • Demand in China sharply down in • Thanks to actions taken, no February, but recovered in March health, delivery or quality red flags • From April on, substantial customer • Q3 -19 efficiency program intensified closures and lockdowns in Europe (opex, capex, margin, NWC) and North America • Short-time work actions taken in • Some countries, industries harder most subsidiaries to flexibly reduce hit—diversification helps work hours in line with sales • April started at -30% sales relative • April hours worked -30% normal levels relative normal levels • Unclear how long effect will last • New government regulations and support in many countries beneficial • Some customers restarting production now or soon • Focus on protection of key people, • Development pandemic and customer relations, and flexibility government action impossible to predict 7

First quarter New organisation for continued growth and improved efficicency To better reflect the Group’s international reach and 2  4 opportunities, Sweden/International will be replaced by Operating Segments West, North, East, and UK/North America To increase focus on growth opportunities and operational 6 Regions  improvement, and to allow for future scalability, the existing 10 Business Units 6 regions will be replaced by 10 business units • New organization fully operational Efficiency project • Efficiency project launched in Q3 2019 aiming at 40 MSEK savings on full-year basis, intensified during Q1 • No significant restructuring costs incurred 8

First quarter Segment North Rolling 12 Quarter 1 Full year Δ months SEK million 2020 2019 2020/19 2019 % Order intake 565 451 25 1,980 1,866 Net sales 554 453 22 1,966 1,865 Gross profit 137 119 501 474 25 % 24.8 26.3 25.5 25.4 Operating expenses -82 -69 -313 -300 19 % -14.8 -15.2 -15.9 -16.1 Operating profit (EBITA) 56 50 11 180 174 % 10.1 10.9 9.1 9.3  Good start for trading activity but lower demand towards end of March  Weak performance in Demark and within furniture and fittings  Producing units in Sweden noted a low demand, due to the automotive industry  Gross margin down mainly attributable to recent acquisition  EBITA improvement despite negative organic growth due to acquisitions and good cost control 9

First quarter Segment West Rolling 12 Quarter 1 Δ Full year months SEK million 2020 2019 2020/19 2019 % Order intake 299 310 -4 1,146 1,157 Net sales 301 308 -2 1,148 1,155 Gross profit 75 84 297 306 -10 % 25.1 27.3 25.9 26.5 Operating expenses -52 -51 -208 -207 3 % -17.4 -16.6 -18.2 -17.9 Operating profit (EBITA) 23 34 -32 88 99 % 7.7 11.0 7.7 8.6  Strong start but demand weakened in the middle of the quarter  Demand fell mainly in Germany, the Netherland and France and among customers within the automotive industry  Gross margin was significantly lower mainly due to a poorer business mix  EBITA fell compared to a very strong comparison quarter in 2019, but improved sequentially 10

First quarter Segment East Rolling 12 Quarter 1 Full year Δ months SEK million 2020 2019 2020/19 2019 % Order intake 189 183 3 727 721 Net sales 189 185 2 727 723 Gross profit 59 58 231 230 1 % 31.0 31.4 31.7 31.8 Operating expenses -32 -32 -134 -134 0 % -17.0 -17.3 -18.4 -18.5 Operating profit (EBITA) 27 27 2 97 97 % 14.1 14.2 13.4 13.4  First segment to be hit by the crisis  Demand was weaker at the beginning of the quarter in China, but stronger at the end of the quarter  Somewhat lower gross margin, but good cost control led to an unchanged EBITA 11

First quarter Segment UK/North America Rolling 12 Quarter 1 Full year Δ months SEK million 2020 2019 2020/19 2019 % Order intake 268 139 732 602 94 Net sales 272 143 90 727 598 Gross profit 85 45 89 225 185 % 31.4 31.8 31.0 30.9 Operating expenses -56 -30 -164 -138 87 % -20.6 -21.0 -22.6 -23.1 Operating profit (EBITA) 29 15 95 61 47 % 10.8 10.5 8.4 7.9  Good start but substantially lower demand towards end of March when restrictions started  Strong EBITA improvement mainly due to acquisition of American Bolt & Screw i November 2019 12

First quarter Gross margin development Segment North Group GP%-development GP%-development 32,0% 32,0% 30,0% 30,0% 28,0% 28,0% 26,0% 26,0% 24,0% 24,0% 22,0% 22,0% Q2 19 Q3 19 Q4 19 Q1 20 Q2 19 Q3 19 Q4 19 Q1 20 Segment North, excl. HT Bendix Group, excl. HT Bendix & ABS Segment North, as reported Group, as reported 13

First quarter Acquisitions since 2014 14

First quarter EBITA Bridge Q1 Q1 119 119 EBITA 2019 EBITA 2019 -6 +6 Currency North -16 -11 Volume West +5 +0 Price/cost/mix/other East +24 +14 Acquisitions UK/North America -2 Group/Other 126 126 EBITA 2020 EBITA 2020 15

Outlook Summary and outlook First quarter: strong growth, improved profit and cash flow • Limited effects of corona virus in Q1 • Drop in demand noted toward end of the quarter Outlook: • Challenging demand situation in Q2 • Comprehensive action program in place Priorities 2020 • During Corona crisis: Protect Health, Customers and Bufab • Continued focus on new business generation • Continue building Leadership platform 16

Q&A 17 www.bufab.com