be group year-end report 2016 · year-end report 2016. slide 2 q4 ... non-recurring cost of sek -39...
TRANSCRIPT
Slide 1
Anders Martinsson, President and CEO
Andreas Karlsson, CFO
BE Q4
BE GROUP
YEAR-END REPORT 2016
Slide 2
Q4 – Volume growth on main markets and
improved operating result
Financial highlights
Net sales decreased by 3 percent
Tonnage growth of 4 percent when excluding
operations under restructuring
Gross profit improved to SEK 133 M (112)
Underlying operating result (uEBIT) of SEK -7 M (-12)
Operating result (EBIT) improved to SEK 4 M (-17)
Full year cash-flow from operations improved to
SEK 78 M (-93)
Net debt reduced to SEK 562 M (609)
Slide 3
Operational highlights
Tonnage growth in fourth quarter when
excluding operations under restructuring
Positive development in Distribution
business
Restructuring of the businesses in Czech
Republic and Slovakia follows plan but has a
negative effect on topline growth.
Negative development in Lecor and
BE Group Produktion Eskilstuna
Market situation
Market growth in main distribution markets
during the year
Increasing steel prices during the year.
Continued also in fourth quarter
Trade barriers make the steel market more
regional and have given a more healthy
balance between supply and demand.
Slide 4
FINANCIALS IN DETAIL
Slide 5
Operations under restructuring
Scope
Operations in Slovakia closed
Sales of carbon steel and aluminum och Czech market discontinued
Small production facility in Estonia closed
Status
Progress according to plan
Sale of building in Czech Republic and liquidation in Slovakia remains
Financial impact
Q4 sales of SEK 14 M (84), YTD sales of 155 MSEK (386)
Q4 EBIT of SEK -2 M (-4), YTD EBIT of SEK -52 M (-32)
Non-recurring cost of SEK -39 M taken in Q1 2016 - no further costs expected
Slide 6
Q4 tonnage – Increased tonnage on main markets
Growth in tonnage and sales (%) Sales affected by restructuring
Q4 YTD
Change in Net Sales -3% -7%
Tonnage -13% -8%
Price/Mix +8% 0%
Currency +2% +1%
Lower tonnage due to restructuringQ4 YTD
Change in tonnage -13% -8%
Sweden & Poland +1% 0%
Finland & Baltic +5% +4%
Op. under restructuring -97% -60%
-10%
-1% -1%
-3%
1%
-5%-3%
-13% -13%-15%
-10%
-5%
0%
5%
10%
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Tonnage growth, % Sales growth, %
Slide 7
Gross margin – continued improvement compared to 2015
Gross profit improved to SEK 133 M
(112) despite lower sales
Gross margin improved to 14.0% (11.4)
with help from inventory gains
Underlying gross margin improved to
13.0% (12.0)
Mix of sales between business areas had
positive effect on margins
Underlying margin improvement in BA
Finland and Baltics
0.4 percentage point negative impact
compared to Q3 from Lecor and BE
Group Produktion performance
Gross profit (SEK M) and gross margin (%)
124
144 144
124112
127
163
138 133
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
0
20
40
60
80
100
120
140
160
180
200
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Gross profit, SEK M Gross margin % uGross margin %
Slide 8
Quarterly comparison to last yearSEK M Q1 Q2 Q3 Q4 FY 2016
Net sales 2015 1 104 1 104 966 981 4 155
Change BA Sweden & Poland -49 -22 -26 -4 -101
Change BA Finland & Baltics -31 +17 +15 +48 +49
Change Other -46 -52 -63 -72 -233
Net sales 2016 978 1 047 892 953 3 870
Change -11% -5% -8% -3% -7%
Operating result 2015 10 10 -117 -17 -114
Inventory gains (-)/ losses (+) 2 2 3 5 12
Non-recurring items - - 124 - 124
Underlying operating result 2015 12 12 10 -12 22
Change in sales -17 -8 -10 -3 -38
Change in underlying gross margin 7 16 5 10 38
Change in overhead costs 7 1 5 -2 11
Underlying operating result 2016 9 21 10 -7 33
Inventory gains (+)/losses (-) -9 10 16 11 28
Non-recurring items -45 - - - -45
Operating result 2016 -45 31 26 4 16
Slide 9
Working capital – remains on a good level
Working capital (SEK M)
Year-end working capital decreased by
SEK 19 M compared to last year
Increase driven by tonnage growth
Structural reduction from restructuring
Czech and Slovakia
Q4 average working capital tied-up
13.1% (14.0)
426
486512
575
525
464 454493 506
0%
5%
10%
15%
20%
25%
30%
0
100
200
300
400
500
600
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
WC (period end), SEK M WC tied up (average), %
Slide 10
Cash-flow – FY operating cash-flow of SEK 78 M and
net debt reduction
Q4 operating cash-flow of SEK 3 M (37)
Investment cash-flow of SEK -3 M (-6) in Q4
Rolling twelve months operating cash flow of
SEK 78 M (-93)
Net debt of SEK 562 M (609) and gearing of
73% (78)
Debt amortization of SEK 66 M during the
year
Available cash SEK 127 M (133)
Cash-flow from operating activities (SEK M)
49
-54
-28
-48
37
51
36
-12
3
-120
-80
-40
0
40
80
120
-60
-40
-20
0
20
40
60
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Cash-flow from Op. activities Cash-flow from Op. activities R12
Slide 11
Q4 Q4 Change R12
SEK M 2016 2015
Net sales 953 981 -28 3,972
Underlying EBIT -7 -12 +5 28
% of Sales -0.7% -1.2% +0.5% 0.7%
Inventory gains/losses 11 -5 +16 -7
Non-recurring items - - - -169
EBIT 4 -17 +21 -148
% of Sales 0.4% -1.7% +2.1% -3.7%
Financial net -6 -9 +3 -28
Earnings before tax -2 -26 +24 -176
Net earnings -2 -23 +21 -190
Operating Cash-Flow R12 78 -93 +171 12.9
Net Debt 562 609 -47 -14.64
Gearing 73% 78% -5% 76
Financial Summary
Slide 12
BUSINESS AREAS
STATUS Q4 2016
Slide 13
BA Sweden & Poland – result affected by problems in
two units
Market demand above last year
Tonnage up 1% vs Q4 2015
Net sales down 1%, and amounted to SEK
490 M (494)
uEBIT of SEK -2 M (2)
Lower underlying result explained by
development in Lecor and BE Group
Produktion. Combined loss SEK -12 M (-4)
EBIT of SEK 2 M (1)
uEBIT (SEK M) and sales growth (%) Comments Q4 2016
911
52
7 81
-2
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
-20
-15
-10
-5
0
5
10
15
20
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Underlying EBIT, SEK M Sales growth, %
Slide 14
BA Finland & Baltic – Significantly improved result
Market demand above last year
Tonnage up 5% vs Q4 2015
Net sales up 12%, on the back of rising
average prices and a strengthened euro,
and amounted to SEK 455 M (407)
uEBIT of SEK 5 M (-3)
Underlying result improved due to higher
sales and margins
EBIT of SEK 12 M (-7)
uEBIT (SEK M) and sales growth (%) Comments Q4 2016
10 11 12
-3
12
21
16
5
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
-20
-15
-10
-5
0
5
10
15
20
25
30
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Underlying EBIT, SEK M Sales growth, %
Slide 15
OUTLOOK
Slide 16
Business outlook
Continued growth in market demand expected.
Restructuring will continue to have negative impact on
Group tonnage during first half of 2017
Prices expected to continue upwards in the beginning of the year
Distribution business expected to see continuous improvement
Focus to improve result in Lecor and BE Produktion Eskilstuna
Slide 17
Summary and conclusions
Market demand and price level have
upwards trend
Work with units under restructuring
coming to a end, savings will be fully
realized early 2017
Improvement actions in Lecor and
BE Production Eskilstuna
Positive Q4 EBIT of SEK 4 M (-17)
Positive cash-flow and net debt reduction
New Group structure and initiatives will
continue to improve performance
Slide 18
Q&A
Slide 19
APPENDIX
FINANCIAL
INFORMATION
Slide 20
Revised Segment reporting due to restructuring and new organisation
New segments applied from Q2 2016
Historical data for 2015 and Q1 2016 restated
BA Sweden & Poland; BE Group Sweden, BE Group Produktion Eskilstuna, Lecor Stålteknik and
BE Group Poland
BA Finland & Baltics; BE Group Finland, BE Group Estonia, BE Group Latvia and BE Group
Lithuania
Parent Company and consolidated items; BE Group AB, Group eliminations and Operations
under restructuring (BE Group Czech Republic, BE Group Slovakia and RTS Eesti)
Description of new segments
Slide 21
FY FY Change R12
SEK M 2016 2015
Net sales 3 870 4 155 -285 3,972
Underlying EBIT 33 22 +11 28
% of Sales 0.9% 0.5% +1.4% 0.7%
Inventory gains/losses 28 -12 +40 -7
Non-recurring items -45 -124 +79 -169
EBIT 16 -114 +130 -148
% of Sales 0.4% -2.8% +3.2% -3.7%
Financial net -27 -48 +21 -28
Earnings before tax -11 -162 +151 -176
Net earnings -20 -169 +149 -190
Number of shares period end (M) 12.98 12.98 0 12.9
EPS (SEK) -1.56 -13.02 +11.46 -14.64
Operating Cash-Flow R12 78 -93 +171 76
P&L Summary January to December
Slide 22
Dec Dec Change
SEK M 2016 2015
Non-current assets 874 907 -33
Inventories 527 546 -19
Accounts Receivable 442 409 +33
Other Receivables 49 66 -17
Cash 27 33 -6
Total Assets 1 919 1 961 -42
Equity 771 785 -14
Interest bearing liabilities 590 642 -52
Accounts payable 375 353 +22
Other liabilities 183 181 +2
Total Equity and liabilities 1 919 1 961 -42
Working Capital 506 525 -19
Net Debt 562 609 -47
Gearing 73% 78%
Balance sheet
Slide 23
Appendix: Tonnage development
Tonnage (‘000 tons)
97108 108
93 97103 105
81 85
-15%
-10%
-5%
0%
5%
10%
15%
20%
0
20
40
60
80
100
120
140
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Tonnage Tonnage growth, %
Slide 24
Appendix: Sales per product area
Q4 Sales (SEK M) YTD Sales (SEK M)
305
357
178
48 65
302
370
198
46 650
100
200
300
400
500
Long Flat Stainless Aluminium Other
2016 2015
1260
1434
722
194 260
1284
1645
780
194 2520
500
1000
1500
2000
Long Flat Stainless Aluminium Other
2016 2015
Slide 25
Appendix: Sales per business solution
Q4 Sales (SEK M) YTD Sales (SEK M)
113
406434
136
466
379
0
100
200
300
400
500
600
Direct Inventory Service
2016 2015
479
1714 1677
567
1960
1628
0
500
1000
1500
2000
Direct Inventory Service
2016 2015