April 21, 2020

Q1 2020Presentation

First quarter

Q1 2020 in Brief• Sales up +21%

o 24% acquired, -5% organic and 2% currency. Order intake in line with net sales o Lower underlying demand but unchanged market share

• 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

o Short-time work schemes and some layoffs – working time reduced by 30% in Aprilo Reduction all other cost and capex where possibleo Ready to take more measures if demand falls furthero Action program prioritises speed and retained flexibility

2

EBITA Q1 2019 119Currencies -6

Volume -16

Price/cost/mix/other +5

Acquisitions +24

EBITA Q1 2020 126

3

First quarter

Financial highlights, GroupQuarter 1 Δ

12-monthsrolling Full year

SEK million 2020 2019 % 2020/19 2019Order intake 1,321 1,084 22 4,591 4,354Net sales 1,316 1,091 21 4,573 4,348Gross 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 5 390 384% 9.5 10.9 8.5 8.8

Profit after tax 86 84 3 255 253Earnings per share, SEK 2.31 2.23 4 6.83 6.75

Financial development, Group

-10

-5

0

5

10

15

20

25

Perc

ent

Quarterly Net Sales growthOrganic growth Total growth

0

50

100

150

200

250

300

350

400

450

500

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

LTM

EBI

TA, S

EK m

illion

LTM

Net

Sal

es, S

EK m

illion

s

Net Sales EBITA

4

First quarter

5

First quarter

Bufab’s priorities during Corona crisis

1Protect

Health(team, families, society—prove we’re Responsible Partner)

2Protect

Customers(deliveries, flexibility, troubleshooting—prove we’re Solutionists)

3Protect

Bufab(it’s where we work—prove we’re Entrepreneurs w/Big Hearts)

Protect…Health

Customers

Bufab6

First quarter

In April, we are entering the second phase

Jan-March

Secure health and delivery

Protect…Health

Customers

April-

Flexibly adapt to changing market

First quarter

Corona virus pandemic means tough Q2

7

Negative Impact on Q2 Sales

Strong Measures Taken, Flexibility Retained

• Demand in China sharply down in February, but recovered in March

• From April on, substantial customer closures and lockdowns in Europe and North America

• Some countries, industries harder hit—diversification helps

• April started at -30% sales relative normal levels

• Unclear how long effect will last• Some customers restarting production

now or soon• Development pandemic and

government action impossible to predict

• Thanks to actions taken, no health, delivery or quality red flags

• Q3 -19 efficiency program intensified (opex, capex, margin, NWC)

• Short-time work actions taken in most subsidiaries to flexibly reduce work hours in line with sales

• April hours worked -30%relative normal levels

• New government regulations and support in many countries beneficial

• Focus on protection of key people, customer relations, and flexibility

First quarter

New organisation for continued growth and improved efficicency

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2 4 Operating Segments

To better reflect the Group’s international reach and opportunities, Sweden/International will be replaced by West, North, East, and UK/North America

6 Regions10 Business Units

To increase focus on growth opportunities and operational improvement, and to allow for future scalability, the existing 6 regions will be replaced by 10 business units

Efficiency project • New organization fully operational• Efficiency project launched in Q3 2019 aiming at

40 MSEK savings on full-year basis, intensified during Q1• No significant restructuring costs incurred

First quarter

Segment North

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

Quarter 1 ΔRolling 12

months Full year

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 25 501 474

% 24.8 26.3 25.5 25.4

Operating expenses -82 -69 19 -313 -300

% -14.8 -15.2 -15.9 -16.1

Operating profit (EBITA) 56 50 11 180 174

% 10.1 10.9 9.1 9.3

Segment West

10

First quarter

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

Quarter 1 ΔRolling 12

months Full year

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 -10 297 306

% 25.1 27.3 25.9 26.5

Operating expenses -52 -51 3 -208 -207

% -17.4 -16.6 -18.2 -17.9

Operating profit (EBITA) 23 34 -32 88 99

% 7.7 11.0 7.7 8.6

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

Segment East

11

First quarter

Quarter 1 ΔRolling 12

months Full year

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 1 231 230

% 31.0 31.4 31.7 31.8

Operating expenses -32 -32 0 -134 -134

% -17.0 -17.3 -18.4 -18.5

Operating profit (EBITA) 27 27 2 97 97

% 14.1 14.2 13.4 13.4

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

Segment UK/North America

12

First quarter

Quarter 1 ΔRolling 12

months Full year

SEK million 2020 2019 % 2020/19 2019

Order intake 268 139 94 732 602

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 87 -164 -138

% -20.6 -21.0 -22.6 -23.1

Operating profit (EBITA) 29 15 95 61 47

% 10.8 10.5 8.4 7.9

First quarter

Gross margin development

13

22,0%

24,0%

26,0%

28,0%

30,0%

32,0%

Q2 19 Q3 19 Q4 19 Q1 20

Segment NorthGP%-development

Segment North, excl. HT Bendix

Segment North, as reported

22,0%

24,0%

26,0%

28,0%

30,0%

32,0%

Q2 19 Q3 19 Q4 19 Q1 20

GroupGP%-development

Group, excl. HT Bendix & ABS

Group, as reported

First quarter

Acquisitions since 2014

14

First quarter

EBITA Bridge

15

Q1

EBITA 2019 119

Currency -6

Volume -16

Price/cost/mix/other +5

Acquisitions +24

EBITA 2020 126

Q1

EBITA 2019 119

North +6

West -11

East +0

UK/North America +14

Group/Other -2

EBITA 2020 126

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

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