BE GROUP YEAR-END REPORT 2011

Transcription

1 BE GROUP YEAR-END REPORT Including company presentation ti Roger Johansson, President and CEO Torbjörn Clementz, CFO and Executive Vice President Slide 1

2 Slide 2 BE GROUP PRESENTATION

3 BE Group Trading and service company in steel and other metals Broad range of steel, stainless and aluminum Increasing production service Strong logistics i 900 employees in 10 countries Wide range of customers Turnover SEK 5,9 billion Listed on NASDAQ OMX Stockholm BE Group China (Shanghai) Slide 3

4 Financials recovery of sales and earnings continues Sales EBIT Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M Slide 4

5 Shareholder structure December 31, 2011 Largest shareholders Largest countries Name #ofshares % % AB Traction 6,370, Sweden 86.8 Swedbank Robur Fonder 4,611, Great Britain 3.7 IF Skadeforsäkring AB 3,774, Luxembourg 3.7 Odin Fonder 2,686, USA 1.5 SEB 1,421, Isle of Man 0.9 Other shareholders 31,135, Other countries 3.4 Total number of shareholders 9,570 Slide 5

6 The foundation of the business concept Steel, stainless steel and aluminum Independent Efficient distribution Excellent service Production service Strengthening customers competitiveness Slide 6

7 Broad range of products and production service offerings Hot rolled plates Stainless steel Long products Thin sheets and coils Steel tubes Aluminum Reinforcement Engineering steel ~20, products Cutting and slitting Shot blasting and painting Laser cutting, bending, Sawing drilling etc. Slide 7

8 BE Group s added values Few steel producers Broad customer base Material knowledge Inventory Management Production service Logistics solutions Slide 8

9 Our business model Mission Improve our customers competitiveness Customer development Purchasing excellence Optimized inventory Competitive production service Effective pricing Improved earnings Slide 9

10 BE Group A solutions provider Design & Production planning Materials & Production Customized distribution Ready product Moving forward in the value chain Slide 10

11 Slide 11 BE GROUP YEAR-END REPORT 2011

12 Q4 Operating loss but strong cash-flow Financial Highlights Net sales increase of 2% Delivered tonnage increase of 5% Operating result of SEK -19 M (-8) Improvement in underlying operating result to SEK 18 M (7) Strong cash-flow from operating activities of SEK 162 M (58) Proposed dividend SEK 0.25 per share Slide 12

13 Market highlights Operational highlights Sales affected by uncertainty Inventory adjustment finalized regarding future steel prices and Transformation of Polish and Czech demand business ongoing Weakening price sentiment until Continued phasing in of other December operational investments Demand in Sweden and Finland Several internal initiatives launched to largely at Q3-levels improve gross margin Decent demand but heavy price Profitability program initiated and pressure in CEE running according to plan Slide 13

14 Slide 14 FINANCIALS IN DETAIL

15 Tonnage continued to increase Tonnage ( 000 tons) Demand more or less in-line with Q3 Increase of 5% vs Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Quarterly (LHS) Rolling 12 months (RHS) 0 Slide 15

16 Downward price pressure continued during Q4 Average sales price (SEK/kg) 13,00 12, ,00 9,00 8,00 7,00 11,00 Weak price sentiment during the quarter Q4 average sales price decreased 3% 6,00 vs Q and 1% vs Q ,00 4,00 3, ,00 1,00 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Quarterly Rolling 12 months Slide 16

17 Improvement of underlying EBIT Q4 Q4 Change Q3 SEK M Net sales 1,405 1, ,420 Underlying EBIT % of Sales 1.3% 0.5% +0.8% 1.6% Inventory losses Non-recurring items EBIT % of Sales neg neg - 0.3% Earnings before tax Net earnings EPS (SEK) Cash-flow before change in net debt Net debt Net debt / Equity 96% 107% 108% Slide 17

18 High inventory level during fall affects EBIT Sales, EBIT and uebit (SEK M) Sales EBIT EBIT of SEK -19 M (-8) Inventory losses of SEK -26 M (-15) Underlying EBIT improved to SEK 18 M (7) Non-recurring items Profitability program SEK -26 M Reversal of provision SEK 15 M SEK -11 M Slide 18

19 Strong cash-flow due to working capital reduction Cash-flow (SEK M) Cash-flow from operating activities SEK 162 M (58) Working capital tied up of 9.4% (10.4) Investments t of SEK 28 M Net debt of SEK 773 M (842) Unused credit facilities and available cash of SEK 371 M Gearing of 96% (107) Slide 19

20 Full year comparison Jan-Dec Jan-Dec Change SEK M Net sales 5,941 5, Underlying EBIT % of Sales 2.2% 1.5% +0.7% Inventory gains/losses Non-recurring items EBIT % of Sales 1.6% 1.9% -0.3% Earnings before tax Net earnings EPS (SEK) Cash-flow before change in net debt Net debt Net debt / Equity 96% 107% Slide 20

21 Slide 21 BUSINESS AREAS STATUS Q4 2011

22 BA Sweden Stability in demand Sales, EBIT and uebit (SEK M) Sales EBIT Demand keeping up largely at Q3-levels with normal seasonal effect Net sales increase with 5% and tonnage increase by 2% Underlying EBIT-margin of 3.3% New production facility for Lecor Stålteknik in production Personnel cutbacks initiated Slide 22

23 BA Finland Cautiousness among customers Sales, EBIT and uebit (SEK M) Sales EBIT Demand largely at Q3-levels also in Finland Net sales decreased with 5% due to tonnage decrease Continued price pressure Extension of production facility in Lapua operational in March Personnel cutbacks ongoing Slide 23

24 BA CEE Ongoing profitability improvement program Sales, EBIT and uebit (SEK M) Sales EBIT Increase in net sales of 9% Increase in shipped tonnage of 28% with impact from sell-out activities Negative price trend during the quarter Inventory consolidation and streamlining product range in Czech Republic affected the result Operations started in Trebaczew, Poland Slide 24

25 Slide 25 OUTLOOK

26 Current business situation and outlook Slightly optimistic outlook from customers for H1 Stable demand expected in Sweden and CEE Steel producers continue to push prices Utilize positive price sentiment during Q1 Efficiency measures and profitability program continues and will have positive impact Slide 26

27 Current focus Yield from investments and acquisitions Operational excellence Continued working capital efficiency Win the market Slide 27

28 Our vision BE Group shall be the most: - Professional - Successful - Respected steel service company Slide 28

29 Slide 29

30 Slide 30 APPENDIX FINANCIAL INFORMATION

31 Profitability improvement program Ongoing since October Personnel reductions in all business areas Approximately 100 employees impacted Inventory consolidation and reduction of product portfolio in Czech Republic Production service concentration ti in Poland Annual cost savings estimated to SEK 50 M Costs of SEK 26 M provided during Q4 Fully initiated and full impact during Q Slide 31

32 Appendix: Financial summary Full year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Tonnage Net Sales 1,074 1,399 1,273 1,383 1,519 1,597 1,420 1,405 5,129 5,941 Underlying EBIT % of Sales -0.9% 3.3% 2.6% 0.5% 3.1% 2.7% 1.6% 1.3% 1.5% 2.2% EBIT % of Sales -2.6% 6.2% 3.8% -0.6% 2.9% 4.2% 0.3% -1.4% 1.9% 1.6% Net earnings Earnings/share Cash flow Working Capital Underlying EBITA(%) Underlying ROOC(%) Earnings per share after dilution 2 Cash flow before change in Net Debt 3 Period end working capital Slide 32

33 Appendix: Sales per customer segment January-December Q4 OEM & partners OEM & partners Project Project Preprocessing Preprocessing Retail Retail Slide 33

34 Appendix: Sales per product area January-December Q4 Long steel +14 Flat steel +16 Long steel Flat steel -2-2 Reinforce- ment Reinforce- ment Stainless steel +14 Stainless steel +10 Aluminum -6 Aluminum -23 Other Other Change % Change % Slide 34

35 Appendix: Sales per channel January-December Q4 Direct +6 Direct +2 Inventory +17 Inventory +3 Service +27 Service +2 Sales outside scope of channels not included Sales outside scope of channels not included Change % Change % Slide 35