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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