Be Group Ab · OMXSTO:BEGR
Be Group Ab — Q1 2014 Earnings Presentation
23 slides from Be Group Ab's earnings presentation, April 2014
Slide 1: BE Group Interim Report January–March 2014
BE Q1 BE GROUP INTERIM REPORT JANUARY – MARCH 2014 Kimmo Väkiparta, President and CEO Torbjörn Clementz, CFO and Executive Vice President Slide 1
Slide 2: Q1 – Improved result
Q1 – Improved result Financial highlights Shipped tonnage decreased by 4% Net sales decreased by 3% Operating result of SEK 12 M (-17) During the quarter a rights issue was completed. BE Group received SEK 154 M after transaction costs. The rights issue was oversubscribed by 70% A new thre
Slide 3: Market situation and operational highlights
Market situation Operational highlights Gradual improvement in demand in Reduction of personnel finalized Sweden during the quarter according to plan Demand in Finland largely at the same Continued impact from own efficiency level as during the fall 2013 work and initiatives Similar patter
Slide 4: Financials in detail
FINANCIALS IN DETAIL Slide 4
Slide 5: Some improvement in demand during Q1
Some improvement in demand during Q1 Tonnage (‘000 tons) Tonnage 4% down vs last year Sweden -3% Finland -1% Other Units -12% Slide 5
Slide 6: Price sentiment becoming more stable
Price sentiment becoming more stable Average sales price (SEK/kg) Q1 average sales price (excl. currency effects) decreased by 1% vs Q1 2013 and increased by 2% vs Q4 2013 Reported increase in Q1 mainly driven by currency and mix effects Slide 6
Slide 7: Improved EBIT compared to Q1 2013
Improved EBIT compared to Q1 2013 Sales, EBIT and uEBIT (SEK M) Net sales 3% down Tonnage -4% Price/mix -1% Currency +2% Gross margin improvement (13.6% vs 13.4%) Cost reductions and own initiatives compensate for lower tonnage Some negative currency impact on cost level EBIT improve
Slide 8: Q1 – EBIT significantly above last year
Q1 – EBIT significantly above last year Q1 Q1 Change Q4 SEK M 2014 2013 2013 Net sales 1,003 1,032 -29 957 Underlying EBIT 16 14 2 0 % of Sales 1.6% 1.4% 0.2% 0.0% Inventory gains/losses -4 -2 -2 -4 Non-recurring items 0 -29 29 0 EBIT 12 -17 29 -4 % of Sales 1.2% -1.7% 2.9% -0.4% Earnings before tax
Slide 9: Working capital in good control
Working capital in good control Cash-flow (SEK M) Cash-flow after investments of SEK -48 M (-56) due to working capital build-up Minor investments Total cash-flow improved to SEK 48 M (-49) through the rights issue Working capital tied-up 9% (9) Net debt of SEK 743 M (822) – gearing 96% (1
Slide 10: Business areas status Q1 2014
BUSINESS AREAS STATUS Q1 2014 Slide 10
Slide 11: BA Sweden – EBIT above last year despite lower sales
BA Sweden – EBIT above last year despite lower sales Sales, EBIT and uEBIT (SEK M) Gradual improvement in demand during the quarter Net sales decreased by 6% and tonnage decreased by 3% vs Q1 last year EBIT of SEK 12 M (-5) and uEBIT of SEK 13 M (11) Good impact from improved gross margin an
Slide 12: BA Finland – Flat net sales but improved margins
BA Finland – Flat net sales but improved margins Sales, EBIT and uEBIT (SEK M) Demand on same level as during fall 2013 Net sales flat and tonnage decreased by 1% vs Q1 last year Weak sentiment in Finnish engineering sector Some improvements noted at the end of the quarter EBIT of SEK 9 M
Slide 13: Other Units – Hurt by lower activity
Other Units – Hurt by lower activity Sales, EBIT and uEBIT (SEK M) Net sales flat vs Q1 last year EBIT of SEK -6 M (-4), mainly from BE Group Produktion Continued work with improving profitability in loss making companies Czech Republic (classified as operations for sale) shows effects from
Slide 14: Outlook
OUTLOOK Slide 14
Slide 15: Current business situation and outlook
Current business situation and outlook Customers’ signals indicate improvement in demand A continued recovery in demand expected on main markets Signals from the Swedish market are more positive than in Finland Steel prices seem to have stabilized. Higher commodity prices are expected to sup
Slide 16: Current focus areas
Current focus areas Actions ongoing to generate growth with customer and supplier cooperation Utilize upcoming structural changes Improve capacity utilization Continue to improve cost control even more Efficient working capital utilization Improve activity and earnings in Other Units fro
Slide 17: Our vision
Our vision BE Group shall be the most: - Professional - Successful - Respected steel service company Slide 17
Slide 18: Slide 18
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Slide 19: Appendix Financial Information
APPENDIX FINANCIAL INFORMATION Slide 19
Slide 20: Appendix: Financial summary
Appendix: Financial summary 2013 2014 Full year Q1 Q2 Q3 Q4 Q1 2012 2013 Tonnage 102 108 92 96 98 438 398 Net Sales 1,032 1,089 916 957 1,003 4,634 3,994 Underlying EBIT 14 8 18 0 16 49 40 % of Sales 1.4% 0.8% 2.0% 0.0% 1.6% 1.1% 1.0% EBIT -17 5 13 -4 12 26 -3 % of Sales -1.7% 0.5% 1.4% -0.4% 1.2% 0
Slide 21: Appendix: Sales per customer segment
Appendix: Sales per customer segment Q1 – Share of total sales (MSEK) OEM & 50% partners 50% Project 20% 20% Pre- 23% processing 20% Retail 7% 10% 0% 10% 20% 30% 40% 50% 60% 2014 2013 Slide 21
Slide 22: Appendix: Sales per product area
Appendix: Sales per product area Q1 – Share of total sales (MSEK) Long steel 297 301 Flat 389 steel 377 Reinforce- 45 ment 74 Stainless 159 steel 174 Aluminum 45 46 Other 68 60 0% 10% 20% 30% 40% 50% 2014 2013 Slide 22
Slide 23: Appendix: Sales per channel
Appendix: Sales per channel Q1 – Share of total sales (MSEK) Direct 148 183 Inventory 476 489 Service 386 361 0% 10% 20% 30% 40% 50% Sales outside scope of channels not included 2014 2013 Slide 23