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Bulten Audit Report / Information 2019
3019_10-k_2020-02-06_6e53cef4-ca01-4b0e-bded-83f8a3e8e191.pdf
Audit Report / Information
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FULL YEAR REPORT
Q4
Strategic measures implemented, strong order bookings and an agreement for acqui- sition create a stronger position for 2020
fourth quarter
- Net sales amounted to SEK 784 (747) million, an increase of 5.0% on the same period last year.
- Operating earnings (EBIT) totaled SEK 27 (48) million, equating to an operating margin of 3.5% (6.4).
- Operating earnings (EBIT) adjusted for costs attributable to relocation in China and the acquisition of PSM totaled SEK 42 (49) million, equating to an adjusted operating margin of 5.4% (6.6).
- Earnings after tax amounted to SEK 11 (30) million.
- Order bookings amounted to SEK 842 (741) million, an increase of 13.6% on the same period last year.
- Cash flow from operating activities totaled SEK 98 (60) million.
- Earnings per share were SEK 0.54 (1.50).
- Bulten entered into an agreement to acquire all shares in PSM International Holdings Limited (PSM) for a purchase price of USD 24.5 (SEK 230) million on a cash-free and debt-free basis.
january – december
- Net sales amounted to SEK 3,093 (3,132) million, a decrease of -1.2% on the same period last year.
- Operating earnings (EBIT) totaled SEK 98 (210) million, equating to an operating margin of 3.2% (6.7).
- Operating earnings (EBIT) adjusted for costs attributable to relocation in China, restructuring in Germany and the acquisition of PSM totaled SEK 147 (211) million, equating to an adjusted operating margin of 4.8% (6.7).
- Earnings after tax amounted to SEK 55 (143) million.
- Order bookings amounted to SEK 3,103 (3,098) million, an increase of 0.2% on the same period last year.
- Cash flow from operating activities totaled SEK 207 (125) million.
- Earnings per share were SEK 2.62 (7.19).
- Net debt amounted to SEK 565 (181) million. Net debt (excluding financial leasing) totaled SEK 299 (145) million.
- The equity/assets ratio was 55.2% (64.8) at the end of the period. The equity/assets ratio (excluding financial leasing) totaled SEK 60.5% (64.8).
significant events after the end of the reporting period
• The Board of Bulten AB will propose to the Annual General Meeting a dividend of SEK 4.00 (4.00) per share for 2019, divided into two payments.
ceo's comments
"Despite continued cautious market development, Bulten's net sales and order bookings developed well during the fourth quarter. Net sales increased by 5.0% and order bookings were up 13.6%, which indicate that deliveries of the already contracted business are now gathering momentum.
In 2019 we implemented several strategic measures. During the fourth quarter we completed the restructuring in Germany, in accordance with previous communication. This is expected to bring annual savings of approximately SEK 25 million from the 2020 calendar year. The relocation of our Chinese operation has also proceeded to plan and on November 22 we inaugurated our new production unit in Tianjin. The investment has taken our Chinese operation to a whole new level and is expected to bring further opportunities for growth. We finished the fourth quarter by entering into an agreement to acquire PSM. The acquisition broadens our customer base on growth markets in Asia and North America, while also strengthening both our production capacity and our product offering as our operations complement each other well.
Operating earnings for the quarter totaled SEK 27 million, equating to an operating margin of 3.5%. Operating earnings adjusted for costs attributable to relocation in China and the acquisition of PSM totaled SEK 42 million, equating to an adjusted operating margin of 5.4%.
All in all, 2019 was a middle year for Bulten, affected by a cautious market and initiated programs of measures. We now start off 2020 stronger and in a better position, thanks to implemented strategic measures, increased volumes from already contracted business and the agreed acquisition of PSM."
BULTEN IN BRIEF
development during the quarter
Despite continued cautious market development, Bulten's net sales and order bookings developed well during the fourth quarter. Net sales increased by 5.0% and order bookings were up 13.6%, an indicator that deliveries of the already contracted business are now gathering momentum.
In 2019 we implemented several strategic measures. During the fourth quarter the restructuring in Germany was completed, in accordance with previous communication. This is expected to bring annual savings of approximately SEK 25 million from the 2020 calendar year. Costs for this burdened earnings in Q3 and the year in total by SEK 20 million.
The relocation of our Chinese operation has proceeded to plan and on November 22 we inaugurated our new production unit in Tianjin. The cost totaled SEK 18 million, of which SEK 17 million in 2019 and SEK 3 million in the fourth quarter. The project is now finalized and the investment has taken Bulten's Chinese operation to a whole new level and is expected to bring further opportunities for growth.
The fourth quarter finished with Bulten entering into an agreement to acquire PSM. PSM delivers fasteners, mainly to the automotive industry, but also for consumer electronics and the home appliances industry. The company has around 350 employees, production units in China, Taiwan and the UK as well as distribution centers in 22 countries. Asia/the Pacific region is the largest market and accounts for approximately 50% of PSM's sales, followed by the US, which accounts for around 30%. During the twelve-month period up to and including August 2019, PSM's sales totaled approximately USD 42 (SEK 395) million with a normalized EBITDA margin of approximately 14%. PSM has a strong position as an innovative supplier of fasteners, and the operations complement each other well. The acquisition broadens Bulten's customer base on growth markets in Asia and North America, while strengthening both production capacity and product offering. PSM's opportunities for growth are also improving thanks to Bulten's strong position in Europe. The purchase price totals SEK 230 million on a cash-free and debt-free basis. Bulten sees potential for achieving synergies in a number of key areas and the transaction is expected to lead to improvements in earnings per share from 2020 onwards. The acquisition of PSM is expected to be completed during the first quarter of 2020.
Bulten's operating earnings for the quarter totaled SEK 27 million, equating to an operating margin of 3.5%. Operating earnings adjusted for costs attributable to relocation in China and the acquisition of PSM totaled SEK 42 million, equating to an adjusted operating margin of 5.4%.
Preparations for the planned factory investment in Poland are continuing and the purchase of land is now completed.
Fredrik Bäckström took over as Bulten's SVP Production on December 1 and thereby became a member of the Executive Management.
market and outlook
Approximately 87% of Bulten's net sales are attributable to light vehicles and roughly 13% to commercial vehicles. Around 92% of total sales relate to direct deliveries to vehicle manufacturers (OEMs) and the remainder to their suppliers and other players.
Bulten's products are mainly distributed to Europe, but demand is governed by the production of vehicles for the global market. At the end of 2019, the management assessed that Bulten's market shares were maintained compared with the previous year and the focus ahead is now to grow globally.
According to LMC Automotive's latest report from Q4, 2019, global light vehicle production have decreased by -0.5% and heavy commercial vehicles by -2.4% in 2019. Weighted for Bulten's exposure, this means a decrease of -2,4% for the corresponding period. In 2020, global light vehicle production is expected to increase by 1.1% and heavy commercial vehicles to
decrease by -7.3%. Weighted for Bulten's exposure, this means a decrease of -0.1% for the corresponding period.
According to LMC Automotive, developments in China during 2019 have led to a sales decline of approximately -10%, which also affects suppliers' production in Europe.
Continued cautious market development and new tax rules for light vehicles introduced in a number of European countries during 2020 make the development of the next few months difficult to predict. The coronavirus is an additional uncertainty factor that could affect automotive sales and production, especially in China. Overall, this could impact on Bulten's production rate in 2020, and ongoing adaptations are being made in both purchasing and production.
As previously announced, Bulten has won new contracts worth approximately half a billion SEK a year at full pace in 2022, of which 90 MSEK from several smaller contracts received during 2019. Ramp up of the new contracts is expected to gradually compensate for the general market downturn over coming quarters and this is indicated, for example, by the company's order bookings in the fourth quarter.
order bookings and net sales Fourth quarter
Order bookings amounted to SEK 842 (741) million, an increase of 13.6% on the same period last year.
Group net sales amounted to SEK 784 (747) million, an increase of 5.0% on the same period last year. Adjusted for foreign exchange effects, organic growth increased by 1.6% for the same period.
January - december
Order bookings amounted to SEK 3,103 (3,098) million, an increase of 0.2% on the same period last year.
Group net sales amounted to SEK 3,093 (3,132) million, a decrease of -1.2% on the same period last year. Adjusted for foreign exchange effects, organic growth fell by -4.2% for the same period.
earnings and profitability
Fourth quarter
The Group's gross profit was SEK 149 (142) million, corresponding to a gross margin of 19.0% (19.0). Earnings before depreciation and amortization (EBITDA) amounted to SEK 65 (71) million, corresponding to an EBITDA margin of 8.3% (9.6). Operating earnings (EBIT) totaled SEK 27 (48) million, equating to an operating margin of 3.5% (6.4). Operating earnings adjusted for relocation and acquisition costs totaling SEK 15 million, amounted to SEK 42 (49) million, equating to an adjusted operating margin of 5.4% (6.6). Operating earnings were affected by exchange rate fluctuations of SEK -4 (-3) million when converting working capital at the closing day rate.
The Group's net financial items were SEK -1 (-4) million. Financial income of SEK 3 (0) million comprises currency gains of SEK 3 (-)
2 Q4 2019
million. Financial expenses of SEK -4 (-4) million include interest expenses of SEK -3 (-1) million, of which interest expenses for financial leases total SEK -2 (-) million. Currency losses amount to SEK - (-2) million. Other financial expenses amount to SEK -1 (-1) million.
The Group's earnings before tax amounted to SEK 26 (44) million and earnings after tax amounted to SEK 11 (30) million.
January - december
The Group's gross profit was SEK 543 (600) million, corresponding to a gross margin of 17.5% (19.2). Earnings before depreciation and amortization (EBITDA) amounted to SEK 239 (300) million, corresponding to an EBITDA margin of 7.7% (9.6). Operating earnings (EBIT) totaled SEK 98 (210) million, equating to an operating margin of 3.2% (6.7). Bulten's earnings were adversely affected during the year by restructuring costs of approximately SEK 20 million in Germany, and costs relating to relocation in China which totaled SEK 17 million. Bulten's full-year results were also adversely affected by acquisition costs for PSM International of around SEK 12 million. Operating earnings adjusted for this totaled SEK 147 (211) million, equating to an adjusted operating margin of 4.8% (6.7). Measures to adapt production to the weaker market development and stock development have had a negative impact on the company's earnings during the year, in the form of under-absorption in the region of SEK 43 million.
Operating earnings were affected by exchange rate fluctuations of SEK 0 (2) million net when converting working capital at the closing day rate.
The Group's net financial items were SEK -6 (-12) million. Financial income of SEK 8 (0) million comprises currency gains. Financial expenses of SEK -14 (-12) million include interest expenses of SEK -11 (-4) million, of which interest expenses for financial leases total SEK -7 (-) million. Other financial expenses amount to SEK -3 (-3) million.
The Group's earnings before tax amounted to SEK 92 (198) million and earnings after tax amounted to SEK 55 (143) million.
cash flow, working capital, investments and financial position Fourth quarter
Cash flow from operating activities totaled SEK 98 (60) million. The effect on cash flow of the change in working capital amounted to SEK 64 (2) million.
Inventories changed during the period by SEK -25 (68) million. The decrease in stock is a result of initiated stock reduction measures. Current receivables decreased by SEK -27 (-67) million. Current liabilities decreased by SEK -20 (-5) million.
Cash flow from investing activities amounted to SEK -50 (-51) million. Investments of SEK 50 (56) million relate to property, plant and equipment.
Cash flow from financing activities was affected by the buy-back of own shares in the amount of SEK - (-22) million.
January - december
Cash flow from operating activities totaled SEK 207 (125) million. The effect on cash flow of the change in working capital amounted to SEK 30 (-129) million.
Inventories changed during the period by SEK -57 (176) million. The decrease in stock is a result of initiated stock reduction measures. Current receivables changed by SEK 19 (-52) million. Current liabilities decreased by SEK -23 (-29) million.
Cash flow from investing activities amounted to SEK -218 (-160) million. Investments of SEK 218 (164) million relate to property, plant and equipment.
Cash flow from financing activities was affected by a dividend to Parent Company shareholders of SEK -80 (-76) million and a buy-back of own shares of SEK -14 (-22) million.
On the closing date, net debt amounted to SEK 565 million. Net debt for the previous year amounted to SEK 181 million. Net debt (excluding financial leasing) totaled SEK 299 million. Net debt (excluding financial leasing) in the previous year totaled SEK 145 million.
Consolidated cash equivalents amounted to SEK 64 (18) million at the end of the period. In addition to cash equivalents, the Group also had approved but unused overdraft facilities of SEK 400 (592) million, which means that the Group's liquidity amounted to SEK 464 (611) million.
financial agreement
At the end of the second quarter, the company utilized the extension option in its existing financing agreement of SEK 750 million, which now runs until June 2023 under the same conditions.
NET SALES OPERATING EARNINGS ADJUSTED SEK 42MILLION OPERATING MARGIN
3.5% ADJUSTED 5.4% Q4
FINANCIAL SU MMARY Q4 FULL YEAR SEK MILLION 2019 2018 2019 2018 Net sales 784 747 5.0% 3,093 3,132 -1.2% Gross profit 149 142 7 543 600 -57 Earnings before depreciation (EBITDA) 65 71 -6 239 300 -61 Operating earnings (EBIT) 27 48 -21 98 210 -112 Operating margin, % 3.5 6.4 -2.9 3.2 6.7 -3.5 Adjusted operating earnings (EBIT) 1) 42 49 -7 147 211 -64 Adjusted operating margin, % 5.4 6.6 -1.2 4.8 6.7 -1.9 Earnings after tax 11 30 -19 55 143 -88 Earnings per share before dilution, SEK 0.54 1.50 -0.96 2.62 7.19 -4.57 Adjusted earnings per share before dilution, SEK 1.27 1.55 -0.28 4.73 7.24 -2.51 Order bookings 842 741 13.6% 3,103 3,098 0.2% Return on capital employed, % – – – 5.5 12.8 -7.3 Return on capital employed, (excluding lease liabilities), % – – – 5.8 12.8 -7.0
1) See specification page 14.
OTHER INFORMATION
accounting principles
This interim report has, for the Group, been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The financial reporting for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for legal entities, issued by the Swedish Financial Reporting Board. The accounting policies applied are unchanged compared to those outlined in the 2018 Annual Report, with the exception that IFRS 16 Leases has been applied from January 1, 2019. The Group has conducted an overview of all of the leases, where the information has been compiled and summarized as background information for calculations and quantifications in conjunction with converting to IFRS 16. The leases for the Group primarily involved leasing premises and in certain cases leasing equipment. The Group has decided to apply the simplified transition method, which means that comparison figures do not need to be converted and there is no effect on opening equity. In the opening balance for 2019, non-current assets and interest-bearing liabilities increased by SEK 223 million.
New accounting policies on January 1, 2019
The Group as lessee
The Group's leases primarily comprise right-of-use assets regarding premises and equipment. The leases are recognized as right-of-use assets equating to a lease liability on the day the leased asset becomes available for use by the Group. Short-term leases and leases for which the underlying asset is of low value are excepted.
Each lease payment is distributed between repayment of lease liability and financial expense. The financial expense shall be distributed over the term of the lease so that each accounting period is charged with an amount corresponding to a fixed rate of interest for the liability recognized in the respective period.
The lease period is established as the non-terminable period together with both periods covered by an opportunity to extend the lease if the lessee is reasonably certain to utilize that option, and periods covered by an opportunity to terminate the lease if the lessee is reasonably certain not to utilize that option.
The Group's lease liabilities are entered at the present value of the Group's fixed fees (including fees which are substantially fixed). Call options are included in the fees if it is reasonably certain that these will be utilized to acquire the underlying asset. Penalty fees which are charged on termination of the lease are included if the lease period reflects the fact that the lessee will utilize an opportunity to terminate the lease. The lease payments are discounted by the lease's imputed rate of interest if this interest rate can easily be established, otherwise the Group's incremental borrowing rate is used.
The Group's right-of-use assets are recognized at cost and initially include the present value of the lease liability, adjusted for lease fees paid on or before the start date, as well as initial direct
costs. Restoration costs are included in the asset if a corresponding provision relating to restoration costs has been identified. The rightof-use asset is depreciated on a straight-line basis over the shorter of the asset's useful life and the length of the lease.
Reclassification of logistics costs
From January 1, 2019 the Group recognizes external costs for logistics as selling expenses. In previous periods, these costs were entered partly in cost of goods sold. The comparison period has been recalculated for comparison purposes as follows:
| JAN–DEC 2018 | |||||||
|---|---|---|---|---|---|---|---|
| PREVIOUSLY REPORTED |
RECLASSIFI RECALCU CATION |
||||||
| Cost of goods sold | -2,546 | 14 | -2,532 | ||||
| Gross profit | 586 | 14 | 600 | ||||
| Selling expenses | -229 | -14 | -243 | ||||
| Operating earnings | 210 | 0 | 210 |
Other periods presented in the interim report on pages 11 and 12 have also been recalculated for comparison purposes. The recalculation is presented on the Bulten website at www.bulten.com/ en/IR/Interim-reports.
All amounts in SEK million unless otherwise stated. Figures in parentheses refer to the previous year. Some figures are rounded, so amounts might not always appear to match when added up.
risks and risk management
Exposure to risk is a natural part of a business and this is reflected in Bulten's approach to risk management. This aims to identify risks and prevent risks from occurring and to limit any damage resulting from these risks. The most significant risks for the Group relate to the economic situation's effect on demand, access to and price fluctuations in raw materials, and external geopolitical and financial factors.
For a more detailed description of risks, please see Note 5 Risks and risk management in the 2018 Annual Report.
seasonal variations
Bulten has no traditional seasonal variation but the year reflects the customers' production days, which vary between quarters. Generally speaking, the lowest net sales and operating earnings are seen in the third quarter with the lowest number of production days. The other quarters are relatively even but may vary slightly.
transactions with related parties
There have been no significant transactions between related parties during the reporting period. For further information, please see Note 37 of the 2018 Annual Report.
| FINANCIAL SUMMARY EXCLUDING FINANCIAL LEASING IN ACCORDANCE WITH IFRS 16 (MSEK UNLESS OTHERWISE STATED) |
JAN–DEC 2019 (REPORTED) |
ADJUSTMENT FOR EFFECT OF IFRS 16 |
JAN-DEC 2019 (PRO FORMA) |
JAN–SEPT 2018 |
|---|---|---|---|---|
| Gross profit | 543 | -1 | 542 | 600 |
| Operating profit before depreciation and amortization (EBITDA) | 239 | -42 | 197 | 300 |
| Operating earnings | 98 | -1 | 97 | 210 |
| Net financial income/expense | -6 | 6 | 0 | -12 |
| Earnings before tax | 92 | 4 | 96 | 198 |
| Earnings after tax | 55 | 3 | 58 | 143 |
| Return on capital employed, % | 5.5 | +0.3 | 5.8 | 12.8 |
| Net debt (-) | -565 | +233 | -332 | -181 |
| Equity/assets ratio, % | 55.2 | +5.3 | 60.5 | 64.8 |
employees
The average number of employees (FTE) in the Group during the period January 1 – December 31, 2019 was 1,425 (1,433).
contingent liabilities
Three were no significant changes in contingent liabilities during the interim period
parent company
Bulten AB (publ) owns, directly or indirectly, all the companies in the Group. The equity/assets ratio was 63.9% (71.8). Equity amounted to SEK 1,048 (1,115) million. There were no cash or cash equivalents on the closing date. The company had nine employees on the closing date.
significant events after the end of the reporting period
There are no other significant events to report.
proposed appropriation of earnings
Bulten's target over time is to pay out a dividend of at least one third of net earnings after tax. Consideration is given, however, to the company's financial position, cash flow and outlook. The Board of Bulten AB will propose to the Annual General Meeting a dividend of SEK 4.00 (4.00) per share for the 2019 financial year, divided into two payments, SEK 2.00 per share on 30 April 2020 and SEK 2.00 per share in October 2020, corresponding to a total of SEK 84* (80) million. This represents a dividend of approximately 160% of net earnings after tax. It is proposed that April 27, 2020 will be the record day for the first payment of the dividend.
annual general meeting 2020
The Annual General Meeting of Bulten AB (publ) will be held on April 23, 2020 in Gothenburg. Shareholders wishing to have a matter discussed at the AGM should send their suggestion to the Board by e-mail at [email protected] or by mail to:
Bulten AB (publ) Annual General Meeting Box 9148 SE-400 93 Gothenburg, Sweden
The proposals must reach the company by February 14, 2020.
* Provided that the PSM acquisition is completed.
annual and sustainability report 2019
Bulten's Annual and Sustainability Report for 2019 should be available by April 3, 2020 when it will be published on the Bulten website at www.bulten.se; it may also be ordered in print from the website.
auditor's review
This full-year report has not been reviewed by the company's auditors.
the nomination committee
According to an AGM decision, the nomination committee shall comprise four members: one representative for each of the three largest shareholders on the final banking day in September who wish to appoint a member, and the Chairman of the Board. The three largest shareholders are considered to be the three largest shareholders as registered with Euroclear Sweden AB on the final banking day in September.
The nomination committee ahead of the 2020 AGM is composed as follows:
- Tim Floderus, appointed by Investment AB Öresund
- Claes Murander, appointed by Lannebo Fonder
- Pär Andersson, appointed by Spiltan Fonder AB
- Ulf Liljedahl, Chairman of the Board of Bulten AB
Gothenburg,February 6, 2020 Bulten AB (publ)
Anders Nyström President and CEO
SHAREHOLDER INFORMATION
| Q4 | FULL YEAR | |||||
|---|---|---|---|---|---|---|
| PRICE-RELATED SHARE DATA | 2019 | 2018 | 2019 | 2018 | ||
| Share price at end of period (price paid), SEK | 78.80 | 88.20 | -9.40 | 78.80 | 88.20 | -9.40 |
| Highest share price during the period (price paid), SEK | 81.40 | 112.20 | -30.80 | 97.00 | 124.40 | -27.00 |
| Lowest share price during the period (price paid), SEK | 57.60 | 85.90 | -28.30 | 57.60 | 85.90 | -28.30 |
| Market value at end of period, SEK million | 1,658 | 1,856 | -198 | 1,658 | 1.856 | -198 |
| P/E | – | – | – | 30.03 | 12.26 | 17.77 |
| Yield, % | – | – | – | 5.08 | 4.54 | 0.54 |
| Data per share | ||||||
| Earnings before depreciation (EBITDA) *) | 3.27 | 3.55 | -0.28 | 11.93 | 14.78 | -2.85 |
| Operating earnings (EBIT) *) | 1.37 | 2.38 | -1.01 | 4.92 | 10.32 | -5.40 |
| Earnings after net financial items (EAFI) *) | 1.30 | 2.20 | -0.90 | 4.61 | 9.76 | -5.15 |
| Earnings for the period *) | 0.54 | 1.50 | -0.96 | 2.62 | 7.19 | -4.57 |
| Equity *) | – | – | – | 74.09 | 74.70 | -0.64 |
| Cash flow from operating activities *) | 4.92 | 2.93 | 1.99 | 10.33 | 6.14 | 4.19 |
| Cash flow for the period *) | 1.28 | -0.33 | 1.61 | 2.25 | -1.56 | 3.81 |
| Dividend | – | – | – | 4.00 | 4.00 | – |
| Total outstanding ordinary shares, 000 | ||||||
| Weighted number during the period *) | 19,988.0 | 20,216.9 | -228.9 | 20,030.8 | 20.323.7 | -292.9 |
| At the end of the period *) | 19,988.0 | 20,133.0 | -145.0 | 19,988.0 | 20.133.0 | 145.0 |
*) Before dilution.
share performance
Source: Cision on 31 December 2019
bulten's ten largest shareholders
| SHAREHOLDERS | NO. OF SHARES |
SHARE HOLDING, % |
|---|---|---|
| Volito AB | 4,800,000 | 22.8 |
| Investment AB Öresund | 2,900,000 | 13.8 |
| Lannebo fonder | 2,615,308 | 12.4 |
| Bulten AB | 1,052,215 | 5.0 |
| State Street Bank & Trust Com., Boston | 945,271 | 4.5 |
| Spiltan Fonder AB | 419,320 | 2.0 |
| CBNY-DFA-INT SML CAP V | 375,313 | 1.8 |
| Försäkringsaktiebolaget, Avanza Pension | 343,692 | 1.6 |
| Carnegie fonder | 334,057 | 1.6 |
| Nordea Investment Funds | 324,268 | 1.5 |
Total number of shareholders: 7,133
Source: Euroclear Sweden AB on 31 December 2019
information about interim reports
Bulten strives for sustainable business, and to find areas where we can minimize environmental impact. From Q2 2016, interim reports are no longer available in printed form.
All of Bulten's reports are available to read and download at bulten.se. Shareholders who are unable to access the reports digitally can order printed copies by contacting Bulten.
Our subscription service at bulten.se also enables users to subscribe to Bulten's reports and press releases by e-mail.
FINANCIAL INFORMATION
CONSOLIDATED INCOME STATEMENT
| Q4 | FULL YEAR | ||||||
|---|---|---|---|---|---|---|---|
| SEK MILLION | NOTE | 2019 | 2018 | 2019 | 2018 | ||
| Net sales | 1 | 784 | 747 | 37 | 3,093 | 3,132 | -39 |
| Cost of goods sold | -635 | -605 | -30 | -2,550 | -2,532 | -18 | |
| Gross profit | 149 | 142 | 7 | 543 | 600 | -57 | |
| Other operating income | – | 5 | -5 | 15 | 19 | -4 | |
| Selling expenses | -59 | -60 | 1 | -252 | -243 | -9 | |
| Administrative expenses | -59 | -39 | -20 | -203 | -173 | -30 | |
| Other operating expenses | -4 | -3 | -1 | -7 | -1 | -6 | |
| Share of profit in joint ventures | 0 | 3 | -3 | 2 | 8 | -6 | |
| Operating earnings | 27 | 48 | -21 | 98 | 210 | -112 | |
| Financial income | 3 | 0 | 3 | 8 | 0 | 8 | |
| Financial expenses | -4 | -4 | 0 | -14 | -12 | -2 | |
| Earnings before tax | 26 | 44 | -18 | 92 | 198 | -106 | |
| Tax on earnings for the period | -15 | -14 | -1 | -37 | -55 | 18 | |
| Earnings after tax | 11 | 30 | -19 | 55 | 143 | -88 | |
| Attributable to | |||||||
| Parent Company shareholders | 11 | 30 | -19 | 53 | 146 | -93 | |
| Non-controlling interests | 0 | 0 | 0 | 2 | -3 | 5 | |
| Earnings after tax | 11 | 30 | -19 | 55 | 143 | -88 | |
| Earnings per share attributable to Parent Company shareholders |
|||||||
| Earnings per share before dilution, SEK | 0.54 | 1.50 | -0.96 | 2.62 | 7.19 | -4.57 | |
| Earnings per share after dilution, SEK | 0.54 | 1.50 | -0.96 | 2.62 | 7.18 | -4.56 | |
| Weighted number of outstanding ordinary shares before dilution, 000 |
19,988.0 | 20,216.9 | -228.9 | 20,030.8 | 20,323.7 | -292.9 | |
| Weighted number of outstanding ordinary shares after dilution, 000 |
19,988.0 | 20,251.7 | -263.7 | 20,044.1 | 20,358.5 | -314.4 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Q4 | FULL YEAR | |||||
|---|---|---|---|---|---|---|
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | ||
| Earnings after tax | 11 | 30 | -19 | 55 | 143 | -88 |
| Other comprehensive income | ||||||
| Items not to be reversed in the income statement |
||||||
| Revaluation of defined-benefit pension plans, net after tax | 0 | 0 | 0 | 0 | 0 | 0 |
| Items that may later be reversed in the income statement | ||||||
| Exchange differences | -21 | -6 | -15 | 19 | 17 | 2 |
| Total comprehensive income | -10 | 24 | -34 | 74 | 160 | -86 |
| Attributable to | ||||||
| Parent Company shareholders | -10 | 25 | -35 | 70 | 164 | -94 |
| Non-controlling interests | 0 | -1 | 1 | 4 | -4 | 8 |
| Total comprehensive income | -10 | 24 | -34 | 74 | 160 | -86 |
CONSOLIDATED BALANCE SHEET
| SEK MILLION | 31-12-2019 | 31-12-2018 |
|---|---|---|
| ASSETS | ||
| Fixed assets | ||
| Intangible fixed assets 1) | 208 | 205 |
| Tangible fixed assets | 790 | 702 |
| Right-of-use assets | 265 | – |
| Financial assets | 6 | 6 |
| Deferred tax assets | 5 | 5 |
| Total fixed assets | 1,274 | 918 |
| Current assets | ||
| Inventories | 652 | 709 |
| Current receivables | 720 | 693 |
| Cash equivalents | 64 | 18 |
| Total current assets | 1,436 | 1,420 |
| Total assets | 2,710 | 2,338 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Equity attributable to Parent Company shareholders | 1,481 | 1,504 |
| Non-controlling interests | 16 | 10 |
| Total equity | 1,497 | 1,514 |
| Long-term liabilities | ||
| Deferred tax liabilities | 5 | – |
| Long-term interest-bearing lease liabilities | 225 | 33 |
| Other long-term interest-bearing liabilities and provisions | 349 | 168 |
| Total long-term liabilities | 579 | 201 |
| Current liabilities | ||
| Current lease liabilities, interest-bearing | 42 | 2 |
| Other current liabilities, interest-bearing | 17 | 1 |
| Other current liabilities, non interest-bearing | 575 | 620 |
| Total current liabilities | 634 | 623 |
| Total equity and liabilities | 2,710 | 2,338 |
1) Of which goodwill SEK 204 (201) million.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| SEK MILLION | 31-12-2019 | 31-12-2018 |
|---|---|---|
| Equity at start of period | 1,514 | 1,454 |
| Comprehensive income | ||
| Earnings after tax | 55 | 143 |
| Other comprehensive income | 19 | 17 |
| Total comprehensive income | 74 | 160 |
| Transactions with shareholders | ||
| Transaktion with minority | 3 | – |
| Share-based remuneration to employees | 0 | -2 |
| Buy-back of own shares | -14 | -22 |
| Dividend to Parent Company shareholders | -80 | -76 |
| Total transactions with shareholders | -91 | -100 |
| Equity at end of period | 1,497 | 1,514 |
CONSOLIDATED CASH FLOW STATEMENT
CONSOLIDATED BALANCE SHEET
ASSETS Fixed assets
Current assets
Equity
EQUITY AND LIABILITIES
Long-term liabilities
Current liabilities
1) Of which goodwill SEK 204 (201) million.
Comprehensive income
Transactions with shareholders
SEK MILLION 31-12-2019 31-12-2018
Intangible fixed assets 1) 208 205 Tangible fixed assets 790 702 Right-of-use assets 265 – Financial assets 6 6 Deferred tax assets 5 5 Total fixed assets 1,274 918
Inventories 652 709 Current receivables 720 693 Cash equivalents 64 18 Total current assets 1,436 1,420 Total assets 2,710 2,338
Equity attributable to Parent Company shareholders 1,481 1,504 Non-controlling interests 16 10 Total equity 1,497 1,514
Deferred tax liabilities 5 – Long-term interest-bearing lease liabilities 225 33 Other long-term interest-bearing liabilities and provisions 349 168 Total long-term liabilities 579 201
Current lease liabilities, interest-bearing 42 2 Other current liabilities, interest-bearing 17 1 Other current liabilities, non interest-bearing 575 620 Total current liabilities 634 623 Total equity and liabilities 2,710 2,338
SEK MILLION 31-12-2019 31-12-2018 Equity at start of period 1,514 1,454
Earnings after tax 55 143 Other comprehensive income 19 17 Total comprehensive income 74 160
Transaktion with minority 3 – Share-based remuneration to employees 0 -2 Buy-back of own shares -14 -22 Dividend to Parent Company shareholders -80 -76 Total transactions with shareholders -91 -100 Equity at end of period 1,497 1,514
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Q4 | FULL YEAR | ||||
|---|---|---|---|---|---|
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | |
| Operating activities | |||||
| Earnings after financial items | 26 | 44 | 92 | 198 | |
| Adjustments for items not included in cash flow | 17 | 18 | 152 | 82 | |
| Taxes paid | -9 | -4 | -67 | -26 | |
| Cash flow from operating activities before changes in working capital | 34 | 58 | 177 | 254 | |
| Cash flow from changes in working capital | |||||
| Change in working capital | 64 | 2 | 30 | -129 | |
| Cash flow from operating activities | 98 | 60 | 207 | 125 | |
| Investing activities | |||||
| Acquisition of intangible fixed assets | 0 | – | 0 | -1 | |
| Acquisition of tangible fixed assets | -50 | -56 | -218 | -164 | |
| Divestment of tangible fixed assets | 0 | 5 | 0 | 5 | |
| Cash flow from investing activities | -50 | -51 | -218 | -160 | |
| Financing activities | |||||
| Change in overdraft facilities and other financial liabilities | -10 | 6 | 194 | 101 | |
| Amortization of lease liabilities | -13 | – | -44 | – | |
| Dividend to Parent Company shareholders | – | – | -80 | -76 | |
| Buy-back of own shares | – | -22 | -14 | -22 | |
| Cash flow from financing activities | -23 | -16 | 56 | 3 | |
| Cash flow for the period | 25 | -7 | 45 | -32 | |
| Cash flow for the period | 25 | -7 | 45 | -32 | |
| Cash and cash equivalents at start of period | 39 | 25 | 18 | 48 | |
| Exchange rate difference in cash and cash equivalents | – | – | 1 | 2 | |
| Cash and cash equivalents at end of period | 64 | 18 | 64 | 18 |
CONSOLIDATED NET DEBT COMPOSITION
| SEK MILLION | 31-12-2019 | 31-12-2018 |
|---|---|---|
| Long-term interest-bearing liabilities | -559 | -185 |
| Provision for pensions | -15 | -16 |
| Current interest-bearing liabilities | -59 | -3 |
| Financial interest-bearing receivables | 4 | 5 |
| Cash and bank | 64 | 18 |
| Net debt (-) | -565 | -181 |
| Less interest-bearing liabilities attributable to lease liabilities | -267 | 36 |
| Adjusted net debt (-), (excluding lease liabilities) | -299 | -145 |
KEY FIGURES FOR THE GROUP
| Q4 | FULL YEAR | ||||
|---|---|---|---|---|---|
| GROUP | 2019 | 2018 | 2019 | 2018 | |
| Margins | |||||
| EBITDA margin, % | 8.3 | 9.6 | 7.7 | 9.6 | |
| Adjusted EBITDA margin, % 3) | 10.2 | 9.7 | 9.3 | 9.6 | |
| EBIT margin (operating margin), % | 3.5 | 6.4 | 3.2 | 6.7 | |
| Adjusted EBIT margin (operating margin), % 3) | 5.4 | 6.6 | 4.8 | 6.7 | |
| Net margin, % | 1.4 | 4.0 | 1.8 | 4.6 | |
| Adjusted Net margin, % 3) | 3.3 | 4.1 | 3.1 | 4.6 | |
| Capital structure | |||||
| Interest coverage ratio, times | 7.1 | 13.2 | 7.6 | 18.2 | |
| Earnings per share attributable to Parent Company shareholders | |||||
| Earnings per share before dilution, SEK | 0.54 | 1.50 | 2.62 | 7.19 | |
| Adjusted earnings per share before dilution, SEK 3) | 1.27 | 1.55 | 4.73 | 7.24 | |
| Earnings per share after dilution, SEK | 0.54 | 1.50 | 2.62 | 7.18 | |
| Number of outstanding ordinary shares | |||||
| Weighted number of outstanding ordinary shares before dilution, 000 | 19,988.0 | 20,216.9 | 20,030.8 | 20,323.7 | |
| Weighted number of outstanding ordinary shares after dilution, 000 | 19,988.0 | 20,251.7 | 20,044.1 | 20,358.5 | |
| GROUP | 31-12-2019 | 31-12-2018 | |||
| Capital structure | |||||
| Net debt/equity ratio, times | -0.4 | -0.1 | |||
| Equity/assets ratio, % | 55.2 | 64.8 | |||
| Equity/assets ratio, (excluding lease liabilities), % | 60.5 | 64.8 | |||
| Other | |||||
| Net debt (-), SEK million | -565 | -181 | |||
| Adjusted net debt (-), (excluding lease liabilities), SEK million | -299 | -145 | |||
| Equity per share attributable to Parent Company shareholders | |||||
| Equity per share before dilution, SEK | 74.09 | 74.73 | |||
| Equity per share after dilution, SEK | 74.09 | 74.86 | |||
| Number of outstanding ordinary shares | |||||
| Number of outstanding ordinary shares before dilution on the closing date, 000 | 19,988.0 | 20,323.7 | |||
| Number of outstanding ordinary shares after dilution on the closing date, 000 | 19,988.0 | 20,133.0 | |||
| GROUP, 12-MONTH ROLLING | 2019 | 2018 | |||
| Profitability ratios | |||||
| Return on capital employed, % | 5.5 | 12.8 | |||
| Adjusted return on capital employed, % 1) | 8.1 | 12.9 | |||
| Return on capital employed, (excluding lease liabilities), % | 5.8 | 12.8 | |||
| Adjusted return on capital employed, (excluding lease liabilities), % | 8.5 | 12.9 | |||
| Return on capital employed, excluding goodwill, % | 6.2 | 14.6 | |||
| Return on equity, % | 3.5 | 9.9 | |||
| Adjusted return on equity, % 2) | 6.4 | 10.0 | |||
| Capital structure | |||||
| Capital turnover rate, times | 1.6 | 1.9 | |||
| Employees | |||||
| Net sales per employee, SEK 000 | 2,171 | 2,186 | |||
| Operating earnings per employee, SEK 000 | 69 | 146 | |||
| Average number of full-time employees (FTE) | 1,425 | 1,433 | |||
DEFINITIONS
Definitions of calculated key indicators are unchanged compared to the definitions in the 2018 Annual Report.
Other key indicators not in the Annual Report or on page 14 of this interim report are explained below.
1) Adjusted return on capital employed: Earnings before financial expenses adjusted for non-recurring items as a percentage of average capital employed.
2)Adjusted return on equity: Net earnings adjusted for non-recurring items divided by average equity.
3) Adjusted result: Result adjusted for items affecting comparability.
QUARTERLY DATA FOR THE GROUP
| 2019 | 2018 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK MILLION | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Order bookings | 842 | 776 | 752 | 733 | 741 | 723 | 855 | 779 |
| Income statement | ||||||||
| Net sales | 784 | 718 | 781 | 810 | 747 | 722 | 810 | 853 |
| Gross profit | 149 | 106 | 129 | 159 | 142 | 135 | 160 | 163 |
| Adjusted gross profit 3) | 149 | 117 | 134 | 160 | 142 | 135 | 160 | 163 |
| Earnings before depreciation (EBITDA) | 65 | 29 | 54 | 91 | 71 | 61 | 80 | 88 |
| EBITDA margin, % | 8.3 | 4.1 | 6.9 | 11.2 | 9.6 | 8.4 | 9.8 | 10.4 |
| Adjusted Earnings before depreciation (EBITDA) 3) | 80 | 56 | 60 | 92 | 72 | 61 | 80 | 88 |
| Adjusted EBITDA margin, % 3) | 10.2 | 6.8 | 7.6 | 11.4 | 9.7 | 8.4 | 9.8 | 10.4 |
| Operating earnings (EBIT) | 27 | -8 | 21 | 58 | 48 | 38 | 57 | 67 |
| EBIT margin (operating margin), % | 3.5 | -1.0 | 2.7 | 7.1 | 6.4 | 5.2 | 7.1 | 7.8 |
| Adjusted Operating earnings (EBIT) 3) | 42 | 19 | 27 | 59 | 49 | 38 | 57 | 67 |
| Adjusted EBIT margin (operating margin), % 3) | 5.4 | 2.8 | 3.4 | 7.3 | 6.6 | 5.2 | 7.1 | 7.8 |
| Earnings after tax | 11 | -14 | 14 | 44 | 30 | 25 | 40 | 48 |
| Net margin, % | 1.4 | -2.1 | 1.8 | 5.4 | 4.0 | 3.5 | 4.9 | 5.7 |
| Adjusted earnings after tax 3) | 26 | 6 | 20 | 45 | 31 | 25 | 40 | 48 |
| Adjusted Net margin, % 3) | 3.3 | 0.8 | 2.5 | 5.6 | 4.1 | 3.5 | 4.9 | 5.7 |
| Cash flow from | ||||||||
| operating activities | 98 | 114 | 52 | -57 | 60 | -15 | 54 | 26 |
| investing activities | -50 | -84 | -49 | -35 | -51 | -34 | -36 | -39 |
| financing activities | -23 | -57 | 34 | 102 | -16 | 48 | -35 | 6 |
| Cash flow for the period | 25 | -27 | 37 | 10 | -7 | -1 | -17 | -7 |
| Earnings per share attributable to Parent Company shareholders |
||||||||
| Earnings per share before dilution, SEK | 0.54 | -0.75 | 0.71 | 2.12 | 1.50 | 1.26 | 1.99 | 2.43 |
| Adjusted earnings per share before dilution, SEK |
0.54 | -0.75 | 0.98 | 2.20 | 1.55 | 1.26 | 1.99 | 2.43 |
| Number of outstanding ordinary shares | ||||||||
| Weighted number of outstanding ordinary shares before dilution, 000 |
19,988.0 | 19,989.5 | 20,044.2 | 20,103.4 | 20,216.9 | 20,359.7 | 20,359.7 | 20,359.7 |
| SEK MILLION | 31-12-2019 30-09-2019 30-06-2019 | 31-03-2019 | 31-12-2018 30-09-2018 30-06-2018 | 31-03-2018 | ||||
|---|---|---|---|---|---|---|---|---|
| Balance sheet | ||||||||
| Fixed assets | 1,274 | 1,268 | 1,198 | 1,160 | 918 | 895 | 886 | 877 |
| Current assets | 1,436 | 1,483 | 1,558 | 1,551 | 1,420 | 1,433 | 1,386 | 1,428 |
| Equity | 1,497 | 1,507 | 1,511 | 1,572 | 1,514 | 1,515 | 1,498 | 1,533 |
| Long-term liabilities | 579 | 581 | 626 | 494 | 201 | 191 | 145 | 104 |
| Current liabilities | 634 | 663 | 619 | 646 | 623 | 622 | 629 | 668 |
| Other | ||||||||
| Net debt (-) | -565 | -596 | -595 | -501 | -181 | -164 | -118 | -60 |
| Adjusted net debt (-) | -299 | -328 | -347 | -252 | -145 | -128 | -80 | -22 |
| Equity per share attributable to Parent Company shareholders |
||||||||
| Equity per share before dilution, SEK | 74.09 | 74.60 | 74.79 | 77,70 | 74.73 | 73.86 | 73.01 | 74.66 |
| Number of outstanding ordinary shares | ||||||||
| Number of outstanding ordinary shares on closing date before dilution, 000 |
19,988.0 | 19,988.0 | 19,999.5 | 20,075.9 | 20,323.7 | 20,359.7 | 20,359.7 | 20,359.7 |
| Share price | ||||||||
| Share price at end of period (SEK) | 78.80 | 62.30 | 73.00 | 79.50 | 88.20 | 107.20 | 104.40 | 112.00 |
GROUP, 12-MONTH ROLLING
| SEK MILLION | JANUARY 2019– DECEMBER 2019 |
OCTOBER 2018– SEPTEMBER 2019 |
JULY 2018– JUNE 2019 |
APRIL 2018– MARCH 2019 |
JANUARY 2018– DECEMBER 2018 |
OCTOBER 2017– SEPTEMBER 2018 |
JULY 2017– JUNE 2018 |
APRIL 2017– MARCH 2018 |
JANUARY 2017– DECEMBER 2017 |
|---|---|---|---|---|---|---|---|---|---|
| Order bookings | 3,103 | 3,002 | 2,949 | 3,052 | 3,098 | 3,196 | 3,164 | 3,074 | 3,015 |
| Income statement | |||||||||
| Net sales | 3,093 | 3,056 | 3,060 | 3,089 | 3,132 | 3,125 | 3,033 | 2,931 | 2,856 |
| Gross profit | 543 | 536 | 565 | 586 | 600 | 604 | 594 | 610 | 572 |
| Adjusted gross profit 3) | 558 | 551 | 570 | 587 | 600 | 604 | 594 | 610 | 572 |
| Earnings before depreciation (EBITDA) | 239 | 245 | 277 | 303 | 300 | 304 | 299 | 295 | 290 |
| EBITDA margin, % | 7.7 | 8.0 | 9.1 | 9.8 | 9.6 | 9.7 | 9.8 | 10.1 | 10.1 |
| Adjusted earnings before depreciation (EBITDA) 3) |
288 | 281 | 285 | 305 | 301 | 304 | 299 | 295 | 290 |
| Adjusted EBITDA margin, % 3) | 9.3 | 9.2 | 9.3 | 9.9 | 9.6 | 9.7 | 9.8 | 10.1 | 10.1 |
| Operating earnings (EBIT) | 98 | 119 | 165 | 201 | 210 | 217 | 214 | 214 | 210 |
| EBIT margin (operating margin), % | 3.2 | 3.9 | 5.4 | 6.5 | 6.7 | 7.0 | 7.1 | 7.3 | 7.4 |
| Adjusted operating earnings (EBIT) 3) | 147 | 154 | 173 | 203 | 211 | 217 | 214 | 214 | 210 |
| Adjusted EBIT margin (operating margin), % 3) | 4.8 | 5.1 | 5.6 | 6.6 | 6.7 | 7.0 | 7.1 | 7.3 | 7.4 |
| Earnings after tax | 55 | 74 | 113 | 139 | 143 | 160 | 157 | 156 | 159 |
| Net margin, % | 1.8 | 2.4 | 3.7 | 4.5 | 4.6 | 5.1 | 5.2 | 5.3 | 5.6 |
| Adjusted earnings after tax 3) | 97 | 102 | 121 | 140 | 144 | 160 | 157 | 156 | 159 |
| Adjusted net margin, % 3) | 3.1 | 3.3 | 4.0 | 4.6 | 4.6 | 5.1 | 5.2 | 5.3 | 5.6 |
| Employees | |||||||||
| Net sales per employee, SEK 000 | 2,171 | 2,119 | 2,103 | 2,107 | 2,186 | 2,185 | 2,139 | 2,111 | 2,189 |
| Operating earnings per employee, SEK 000 | 69 | 83 | 113 | 137 | 146 | 152 | 151 | 154 | 161 |
| Average number of full-time employees (FTE) on closing date |
1,425 | 1,442 | 1,455 | 1,466 | 1,433 | 1,430 | 1,418 | 1,388 | 1,305 |
| Profitability ratios | |||||||||
| Return on capital employed, % | 5.5 | 6.4 | 9.0 | 10.9 | 12.8 | 14.0 | 14.1 | 13.7 | 14.4 |
| Adjusted return on capital employed, % 1) | 8.1 | 8.3 | 9.5 | 11.0 | 12.9 | 14.0 | 14.1 | 13.7 | 14.4 |
| Return on capital employed, (excluding lease liabilities), % |
5.8 | 6.8 | 9.5 | 11.5 | 12.8 | 14.0 | 14.1 | 13.7 | 14.4 |
| Return on capital employed, excluding goodwill, % 1) |
6.2 | 7.2 | 10.1 | 12.2 | 14.6 | 16.0 | 16.2 | 15.8 | 16.7 |
| Adjusted return on capital employed, excluding goodwill, % 1) |
9.0 | 9.3 | 10.6 | 12.3 | 14.7 | 16.0 | 16.2 | 15.8 | 16.7 |
| Return on equity, % | 3.5 | 4.8 | 7.6 | 9.0 | 9.9 | 11.3 | 11.2 | 10.9 | 11.7 |
| Adjusted return on equity, % 2) | 6.4 | 6.7 | 8.1 | 9.2 | 10.0 | 11.3 | 11.2 | 10.9 | 11.7 |
| Other | |||||||||
| Net debt(-)/EBITDA | -2.4 | -2.4 | -2.1 | -1.7 | -0.6 | -0.5 | -0.4 | -0.2 | -0.2 |
| Adjusted net debt(-)/EBITDA*) | -1.3 | -1.3 | -1.3 | -0.8 | -0.5 | -0.4 | -0.3 | -0.1 | -0.0 |
*) Adjusted net debt(-): Net debt exclusive lease liabilities
NOTE 1 INCOME
Bulten is engaged in manufacturing and sales of fasteners. Revenues from product sales are reported at the time the control of the product is transferred to the customer. This usually takes place at the time of delivery to the customer and ownership is transferred. Bulten's customers are mainly in the automotive industry in Europe, Asia and the United States. The tabel below refers to income by geographic market where the customer's delivery point is located. The Group has the major of its income from customers in Northern Europe, but part of the sales is then exported to other markets in the rest of the world. Customers are mainly manufacturers of light vehicles but also heavy commercial vehicles and other suppliers, so-called tiers. For heavy commercial vehicles, most of the deliveries are for critical fasteners for engines. Of the total sales, the majority goes to the chassis/body.
income by geographic market
| Q4 | FULL YEAR | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | ||||
| Sweden | 119 | 135 | -16 | 476 | 499 | -23 | ||
| Germany | 104 | 106 | -2 | 452 | 545 | -93 | ||
| UK | 213 | 184 | 29 | 806 | 856 | -50 | ||
| Poland | 7 | 7 | – | 29 | 28 | 1 | ||
| Rest of Europe | 239 | 208 | 31 | 922 | 808 | 114 | ||
| China | 35 | 34 | 1 | 123 | 137 | -14 | ||
| USA | 25 | 30 | -5 | 131 | 102 | 29 | ||
| Rest of the world | 42 | 43 | -1 | 154 | 157 | -3 | ||
| Total income | 784 | 747 | 37 | 3,093 | 3,132 | -39 |
income by customer group
| SEK MILLION | Q4 | FULL YEAR | |||||
|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | ||||
| OEM Light vehicle | 631 | 563 | 68 | 2,411 | 2,412 | -1 | |
| OEM Heavy commercial vehicle | 84 | 114 | -30 | 407 | 437 | -30 | |
| Tiers | 69 | 70 | 1 | 275 | 283 | -8 | |
| Total income | 784 | 747 | 37 | 3,093 | 3,132 | -39 |
income by chassis/body and powertrain
| Q4 | FULL YEAR | |||||
|---|---|---|---|---|---|---|
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | ||
| Chassis/body | 580 | 558 | 22 | 2,255 | 2,345 | -90 |
| Powertrain | 204 | 189 | 15 | 838 | 787 | 51 |
| Total income | 784 | 747 | 37 | 3,093 | 3,132 | -39 |
income distributed by income category
| Q4 | FULL YEAR | ||||||
|---|---|---|---|---|---|---|---|
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | |||
| Own production | 459 | 460 | -1 | 1,848 | 1,871 | -23 | |
| Outsourced production | 309 | 271 | 38 | 1,157 | 1,194 | -37 | |
| Other | 16 | 16 | – | 88 | 67 | 21 | |
| Total income | 784 | 747 | 37 | 3,093 | 3,132 | -39 |
RECONCILIATION BETWEEN IFRS AND KEY INDICATORS USED
Some of the information in this report used by company managers and analysts to assess the Group's development is not produced in accordance with IFRS. Company managers consider that this information makes it easier for investors to analyze the Group's results and financial structure. Investors should see this information as a complement to, rather than a replacement for, financial reporting in accordance with IFRS.
| sales, organic adjusted net growth |
|||||||
|---|---|---|---|---|---|---|---|
| Q4 | FULL YEAR | ||||||
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | |||
| Net sales | 784 | 747 | 37 | 3,093 | 3,132 | -39 | |
| Currency effect, current period | -25 | – | -25 | -92 | – | -92 | |
| Adjusted net sales | 759 | 747 | 12 | 3,001 | 3,132 | -131 |
When calculating adjusted net sales, organic growth, net sales are adjusted using currency effects of the current period and if necessary with net sales from completed acquisitions. This measurement gives a figure for comparing net sales with the previous year.
earnings before depreciation, ebitda Q4 FULL YEAR
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | |||
|---|---|---|---|---|---|---|---|
| Operating earnings (EBIT) | 27 | 48 | -21 | 98 | 210 | -112 | |
| Depreciation/amortization and impairments | 38 | 23 | 15 | 141 | 90 | 51 | |
| Operating earnings before depreciation (EBITDA) | 65 | 71 | -6 | 239 | 300 | -61 |
When calculating operating earnings excluding depreciation (EBITDA), depreciation and impairments are returned to operating earnings (EBIT). This measurement provides a figure for operating earnings excluding depreciation which are in turn based on investments.
adjusted earnings before depreciation, adjusted ebitda Q4 FULL YEAR
| SEK MILLION | |||||||
|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | ||||
| Operating earnings excluding depreciation (EBITDA) |
65 | 71 | -6 | 239 | 300 | -61 | |
| Relocation costs | 3 | 1 | 2 | 17 | 1 | 16 | |
| Restructuring cost | 0 | – | 0 | 20 | – | 20 | |
| Acqusition cost | 12 | – | 12 | 12 | – | 12 | |
| Adjusted operating earnings before depreciation (EBITDA) |
80 | 72 | 8 | 288 | 301 | -13 |
adjusted operating earnings, adjusted ebit Q4 FULL YEAR
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | |||
|---|---|---|---|---|---|---|---|
| Operating earnings (EBIT) | 27 | 48 | -21 | 98 | 210 | -112 | |
| Relocation costs | 3 | 1 | 2 | 17 | 1 | 16 | |
| Restructuring cost | 0 | – | 0 | 20 | – | 20 | |
| Acqusition cost | 12 | – | 12 | 12 | – | 12 | |
| Adjusted operating earnings (EBIT) | 42 | 49 | -7 | 147 | 211 | -64 |
| adjusted net earnings |
|||||||
|---|---|---|---|---|---|---|---|
| Q4 | FULL YEAR | ||||||
| SEK MILLION | 2019 | 2018 | 2019 | 2018 | |||
| Net earnings | 11 | 30 | -19 | 55 | 143 | -88 | |
| Relocation costs | 3 | 1 | 2 | 17 | 1 | 16 | |
| Restructuring cost | 0 | – | 0 | 13 | – | 13 | |
| Acqusition cost | 12 | – | 12 | 12 | – | 12 | |
| Adjusted net earnings | 26 | 31 | -5 | 97 | 144 | -47 |
adjusted net debt (excluding lease liabilities)
| SEK MILLION | 31-12-2019 | 31-12-2018 |
|---|---|---|
| Net debt (-) | -565 | -181 |
| Less interest-bearing liabilities attributable to lease liabilities | 267 | 36 |
| Adjusted net debt (-), (excluding lease liabilities) | -299 | -145 |
When calculating adjusted net debt, interest-bearing debt attributable to lease liabilities is deducted from net debt. This measurement provides a figure for a refined financial structure excluding lease liabilities.
INCOME STATEMENT, PARENT COMPANY
| SEK MILLION | Q4 | FULL YEAR | ||||
|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||
| Net sales | 7 | 6 | 1 | 33 | 32 | 1 |
| Gross profit | 7 | 6 | 1 | 33 | 32 | 1 |
| Administrative expenses | -10 | -6 | -4 | -52 | -46 | -6 |
| Operating earnings | -3 | 0 | -3 | -19 | -14 | -5 |
| Interest income | 1 | – | 1 | 1 | – | 1 |
| Interest expenses and similar loss items | -2 | -1 | -1 | -5 | -3 | -2 |
| Earnings after net financial items | -4 | -1 | -3 | -23 | -17 | -6 |
| Appropriations | 60 | 132 | -72 | 60 | 132 | -72 |
| Earnings before tax | 56 | 131 | -75 | 37 | 115 | -78 |
| Tax on earnings for the period | -13 | -29 | 16 | -9 | -26 | 17 |
| Earnings after tax | 43 | 102 | -59 | 28 | 89 | -61 |
BALANCE SHEET, PARENT COMPANY
| SEK MILLION | 31-12-2019 | 31-12-2018 |
|---|---|---|
| ASSETS | ||
| Fixed assets | ||
| Intangible fixed assets | 1 | 1 |
| Tangible fixed assets | 1 | 1 |
| Total intangible and tangible fixed assets | 2 | 2 |
| Financial assets | ||
| Participations in Group companies | 1,382 | 1,382 |
| Deferred tax assets | – | 1 |
| Other long-term receivables | 1 | 2 |
| Total financial assets | 1,383 | 1,385 |
| Total fixed assets | 1,385 | 1,387 |
| Current assets | ||
| Current receivables from Group companies | 209 | 163 |
| Other current receivables | 16 | 3 |
| Total current assets | 225 | 166 |
| Total assets | 1,610 | 1,553 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Restricted equity | 110 | 110 |
| Non-restricted equity | 938 | 1,005 |
| Total equity | 1,048 | 1,115 |
| Long-term liabilities | ||
| Long-term liabilities to Group companies | 287 | 285 |
| Other long-term liabilities | 250 | 50 |
| Total long-term liabilities | 537 | 355 |
| Current liabilities | ||
| Current liabilities to Group companies | 0 | 67 |
| Other current liabilities | 25 | 36 |
| Total current liabilities | 25 | 103 |
| Total equity and liabilities | 1,610 | 1,553 |
JANUARY – DECEMBER 2019
Bulten's new production unit in Tianjin, China opened on November 22. The relocation from Beijing has proceeded to plan and the investment is expected to bring further growth opportunities for Bulten.
financial calendar
April 23, 2020 Interim report January–March 2020 July 10, 2020 Half-year report January–June 2020 October 22, 2020 Interim report January–September 2020 February 11, 2021 Full-year report January–December2020
The reports can be found on the Bulten website at www.bulten.se on their date of publication.
capital markets day
February 20, 2020 12:00–17:00 CET in Stockholm. Please contact Bulten's SVP Corporate Communications to register (details below).
contact
Kamilla Oresvärd, SVP Corporate Communications Phone: +46 (0)31-734 59 00, e-mail: [email protected]
invitation to presentation
Investors, analysts and media are invited to participate in the teleconference on February 6 at 15:30 CET. The report will be presented by Anders Nyström, President and CEO and Helena Wennerström, Executive Vice President and CFO via audiocast.
The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q4-2019. It will also be possible to access the audiocast afterwards at the same address or via www.bulten.com/ir.
To participate in the teleconference, please call about 5 minutes before the opening: SE: + 46856642695 UK: + 443333009266 US: + 18335268382
This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13:30 CET on February 6, 2020.
Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company's product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,400 employees in eight countries and its head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.se
Bulten AB (publ) Box 9148, SE-400 93 Göteborg Visiting address: August Barks Gata 6 A Phone +46 (0)31-734 59 00 www.bulten.se
