Bulten — Earnings Release 2016

Feb 9, 2017

Q4

FULL YEAR REPORT

fourth quarter

• • Net sales reached SEK 674 million (667), an increase of 1.0% on the same period last year.
• • Operating earnings (EBIT) were SEK 52 million (47), which corresponds to an operating margin of 7.7% (7.1).
• • Earnings after tax were SEK 37 million (24).
• • Order bookings amounted to SEK 744 million (674), an increase of 10.5% on the same period last year.
• • Cash flow from operating activities was SEK 122 million (91).
• • Earnings per share were SEK 1.82 (1.33).

january – december

• • Net sales reached SEK 2,676 million (2,693), down -0.6% on the same period last year.
• • Operating earnings (EBIT) were SEK 200 million (165), which corresponds to an operating margin of 7.5% (6.1).
• • Earnings after tax were SEK 146 million (111).
• • Order bookings amounted to SEK 2,717 million (2,673), an increase of 1.6% on the same period last year.
• • Cash flow from operating activities was SEK 351 million (141).
• • Earnings per share were SEK 7.27 (5.61).
• • Net cash was SEK 30 million (-176) and the equity/assets ratio at the end of the period was 68.9% (64.0).
• • The Board of Bulten AB proposes to the AGM a total dividend of SEK 4.50 per share for 2016, of which 3.50 SEK (3.25) per share is to be considered as ordinary dividend and 1.00 SEK per share is to be considered as extra dividend.

ceo's comments

"The year ended strongly with a 10.5% rise in order bookings for the final quarter compared with the same period last year. Bulten's prospects for winning market share will be good from the second half of 2017, based on signed contracts and also on ongoing discussions with customers.

Bulten continued to perform well in terms of profitability in the fourth quarter and is again reporting strong earnings and cash flow. During the quarter we have further reinforced our financial position and our key indicators, which is very pleasing. The board therefore proposes the AGM a total dividend of SEK 4.50 per share for 2016, of which 3.50 SEK per share is to be considered as ordinary dividend and 1.00 SEK per share is to be considered as extra dividend. The operating margin increased to 7.7% and the return on capital employed to 13.9%, which are the consequence of a good, even rate of production and of completed optimisation measures.

Being a supplier to the automotive industry is challenging on many levels but we have managed to strengthen our customer relations by, among other things, supplying the best quality and service at the lowest possible cost. We have also advanced our position in technology for electric cars and hybrids."

BULTEN IN SUMMARY

development during the quarter

The year ended strongly with a 10.5% increase in order bookings for the final quarter compared with the same period last year.

Bulten continued its strong progress in the final quarter and is again reporting strong earnings and cash flow. Bulten thereby further reinforced its financial position and key indicators. The continued positive trends in earnings and overall profitability, with an operating margin of 7.7% and a return on capital employed of 13.9%, are the consequence of a good, even rate of production and of completed optimisation measures.

Bulten has positioned itself with technology for electric cars and hybrids, among other things by developing its cooperation with one of the world's largest electric car producers and been appointed Certified Preferred Supplier.

During the fourth quarter Bulten advanced its position in China, winning an order from a new customer. The order was for fasteners for engines for a Chinese carmaker. The deliveries are initially small.

In the final quarter of 2016 Bulten announced that the Group management team would be gaining a new member and that a new global sales and marketing organization came into effect on 1 January 2017. This organization will be divided into two regions, east and west. There will be no changes to consolidated segment reporting as a result of this organizational change.

market and outlook for 2016/2017

Of Bulten's net sales, approximately 87% is attributable to light vehicles and approximately 13% to commercial vehicles. Of total net sales, approximately 90% are direct deliveries to vehicle producers (OEMs) and the remainder to their sub-suppliers and to other sectors.

According to LMC Automotive's latest forecast from Q4, production of vehicles in Europe grew in 2016. According to the forecast, production of light vehicles increased by 2.6% and production of heavy commercial vehicles by 2.5%. Weighted for Bulten's exposure, this means a rise of around 2.6% overall in 2016. According to the same forecast LMC Automotive predicts that annual production of light vehicles in Europe for 2017 will rise by 1.9% compared with 2016, a fall of 0.9% compared with its Q3 forecast. Production of heavy commercial vehicles in Europe for the same period is expected to increase by 2.5% in 2017 compared with 2016, a fall of 5.2% compared with the Q3 forecast. Weighted for Bulten's exposure, this means a rise of around 2.0% overall in 2017, a reduction compared with the Q3 forecast of 1.4%.

European car sales in Europe (EU and EFTA) rose by 6.8% in 2016 according to statistics from ACEA. Demand for Bulten's products is affected by production of vehicles for the global market and Bulten's management team considers that the underlying demand for light vehicles in Europe remains good. Demand for vehicles earmarked for export from Europe to global markets, including China, and production of heavy vehicles recovered in the final quarter but remain difficult to predict. Ongoing model changes by customers may give some volatility in demand for Bulten's products going forward.

At the end of 2016 and start of 2017, prices rose on global markets for steel and other metals. A significant portion of Bulten's purchase volumes consist of raw materials which steel accounts for the largest part. The relatively steep rise in prices is expected to have a short-term negative effect on profitability for Bulten at the start of 2017 of around SEK 4-5 million in the first quarter. The effects of price rises are then expected to gradually be balanced by the raw material clauses that Bulsten has in agreements with its customers.

Bulten's estimated market share at the end of 2016 was around 17% of the European market for fasteners for the auto sector, which is unchanged on the figure for 2015. On the corresponding market for FSP business, Bulten's market share is estimated at around 60%, which is also unchanged on the figure for 2015. This estimate is based on data about the European auto industry's purchasing of fasteners in 2016 according to the European Industrial Fasteners Institute (EIFI).

Bulten's prospects for winning market share are good from the second half of 2017 based on signed contracts and also on ongoing discussions with customers.

order bookings and net sales Q4

Order bookings were SEK 744.0 million (673.6), an increase of 10.5% compared with the corresponding period in the previous year.

Net sales for the Group totalled SEK 673.7 million (666.7), an increase of 1.1% compared with the corresponding period in the previous year. Adjusted for currency effects, organic growth was -2.9% in the same period.

January-December

Order bookings were SEK 2,716.5 million (2,673.5), an increase of 1.6% compared with the corresponding period in the previous year.

Net sales for the Group totalled SEK 2,676.0 million (2,693.5), a decrease of -0.6% compared with the corresponding period in the previous year. Adjusted for currency effects, organic growth was -1.2% for the same period.

earnings and profitability Q4

The Group's gross earnings were SEK 140.1 million (131.6), corresponding to a gross margin of 20.8% (19.7). Earnings before depreciation (EBITDA) were SEK 71.3 million (63.9), corresponding to an EBITDA margin of 10.6% (9.6). Earnings (EBIT) were SEK 51.9 million (47.4), corresponding to an operating margin of 7.7% (7.1).

Operating earnings were affected negatively by currency changes amounting net to SEK -3.0 million (-3.6) when converting operating capital on the closing date. Operating earnings in 2016 were positively affected by capital gains of SEK 4.0 million relating to the sale of machinery.

Net financial items in the Group were SEK -2.1 million (-7.3). Financial costs were SEK -2.1 million (-7.3), of which interest costs were SEK -0.9 million (-1.8), currency costs were SEK -0.9 million (-2.8) and other financial costs were SEK -0.3 million (-2.7). The Group's earnings before tax were SEK 49.8 million (40.1) and earnings after tax were SEK 37.3 million (24.3).

January-December

The Group's gross earnings were SEK 530.8 million (510.1), corresponding to a gross margin of 19.8% (18.9). Earnings before depreciation (EBITDA) were SEK 271.2 million (225.0), corresponding to an EBITDA margin of 10.1% (8.4). Earnings (EBIT) were SEK 200.1 million (165.0), corresponding to an operating margin of 7.5% (6.1).

Operating earnings were affected positively by currency changes amounting net to SEK 3.8 million (-18.2) when converting operating capital on the closing date. Operating earnings in the previous year were positively affected by capital gains of SEK 3.8 million relating to the sale of a former warehouse in the UK and of SEK 4.0 million relating to the sale of machinery.

Net financial items in the Group were SEK -4.1 million (-11.3). Financial income was SEK 2.5 million (0.1), of which currency gains were SEK 2.2 million (–). Financial costs were SEK -6.6 million (-11.4), of which interest costs were SEK -5.0 million (-5.0), currency losses were SEK – million (-2.5) and other financial costs were SEK -1.6 million (-3.9).

The Group's earnings before tax were SEK 196.0 million (153.7) and earnings after tax were SEK 146.5 million (110.9).

cash flow, working capital, investments and financial position Q4

Cash flow from operating activities totalled SEK 122.3 million (90.8). Cash flow effects of changes in working capital amounted to SEK 60.2 million (39.6). Inventories increased in the period by SEK 16.1 million (-6.1), while operating receivables decreased by SEK -12.5 million (-34.0). Operating liabilities increased by SEK 63.9 million (27.0).

Cash flow from investing activities was SEK -30.6 million (-146.3). Investments of SEK 30.4 million (151.4) relate to tangible assets. The corresponding figure for intangible assets was SEK 0.4 million (0.3). Sales of tangible assets amounted to SEK -0.2 million (-5.2) Changes in financial fixed assets were SEK – million (0.2). In Q4 2015, the industrial and office premises in Hallstahammar in which Bulten operates were acquired. The total acquisition value was SEK 116.3 million.

January-December

Cash flow from operating activities totalled SEK 350.7 million (141.3). Cash flow effects of changes in working capital amounted to SEK 103.8 million (-45.5). Inventories changed during the period by SEK -22.6 million (46.4) and operating receivables decreased by SEK -15.9 million (-26.1). Operating liabilities changed by SEK 51.2 million (-12.2).

Cash flow from investing activities was SEK -82.1 million (-306.9). Investments of SEK 81.8 million (249.2) relate to tangible assets. The corresponding figure for intangible assets was SEK 0.6 million (1.1). Sales of tangible assets amounted to SEK -0.3 million (-9.1) Changes in financial fixed assets were SEK – million (-65.7).

At the end of the period net cash was SEK 30.4 million, of which cash and cash equivalents were SEK 108.6 million. Previous year net debt was SEK -176.0 million, of which cash and cash equivalents were SEK 40.5 million. Adjusted for financial leasing, net cash was SEK 68.2 million. Previous year adjusted net debt was SEK -137.7 million.

NET SALES operati		ng Ear nings			OPERATING MARGIN		4
674 sek million	52 sek	million			7.7 %		Q
FINANCIAL SUMMARY (SEK m )			Q4			Full year
Continuing operatio ns		2016	2015		2016	2015
Net sales		673.7	666.7	1.1%	2,676.0	2,693.5	-0.6%
Gross profit		140.1	131.6	8.5	530.8	510.1	20.7
Earnings before depreciation (EBITDA)		71.3	63.9	7.4	271.2	225.0	46.2
Operating earnings (EBIT)		51.9	47.4	4.5	200.1	165.0	35.1
Operating margin, %		7.7	7.1	0.6	7.5	6.1	1.4
Adjusted operating earnings (EBIT)1)		51.9	43.4	8.5	200.1	157.2	42.9
Adjusted operating margin, %		7.7	6.5	1.2	7.5	5.8	1.7
Earnings after tax		37.3	24.3	13.0	146.5	110.9	35.6
Adjusted earnings after tax 1)		37.3	20.3	17.0	146.5	103.1	43.4
Order bookings		744.0	673.6	10.5%	2,716.5	2,673.5	1.6%
Return on capital employed, %		–	–	–	13.9	11.5	2.4

1) Adjusted for non-recurring items. See page 13.

OTHER INFORMATION

accounting principles

This interim report has, for the Group, been drawn up in accordance with IAS 34 (Interim Financial Reporting) and the Swedish annual accounts act. The financial statement for the parent company has been drawn up in accordance with the Swedish annual accounts act and RFR 2 (Reporting for legal entities) of the Swedish Financial Accounting Standards Council. The accounting principles are unchanged compared with the principles explained in the 2015 annual report.

risks and risk management

Exposure to operational and financial risks are a natural part of business activity and this is reflected in Bulten's approach to risk management. The purpose is to identify and prevent risks and limit any damage that may result. The main risks that the Group is exposed to relate to the impact of the business cycle on demand, supplies of raw materials and their price variations, as well as general economic and geopolitical factors.

The Group continually monitors the functional currency of foreign subsidiaries. Partly as a consequence of several recently won customer contracts having their sales prices denominated in EUR, management has decided that the functional currency of the joint venture, BBB Services Ltd and its subsidiary, Bulten Ltd. UK, is now EUR rather than GBP. The function currency was changed starting from December 2015 for BBB Services Ltd and from January 2016 for Bulten Ltd. UK. This change in functional currency is expected to reduce transaction-related currency exposure between GBP and EUR significantly.

For a more detailed description of these risks, see Note 3, Risks and risk management, of the company's 2015 annual report.

incentive scheme

The Annual General Meeting held on 26 April 2016 resolved to establish a long-term share-based incentive scheme for around 15 senior executives and key employees of the Bulten Group. The scheme will run over three years starting in April 2016 and will comprise a maximum of 300,000 shares, corresponding to a dilution effect of approximately 1.5% of the total number of outstanding shares. Participants in the scheme will invest in shares in the company and for each invested share the participant will receive free-of-charge a so-called matching share. In addition, the participant will have the opportunity to receive additional shares free-of-charge, so-called performance shares, provided that a performance target (earnings per share) set by the board is met. In accordance with IFRS 2, the cost of the scheme will be carried in the income statement during the vesting period (20 May 2016 -20 May 2019). The reported cost of this scheme was SEK 1.1 million (-) in Q4 and SEK 3.0 million (-) for the full year.

seasonal variations

Bulten is not exposed to traditional seasonal variations. The year reflects customers' production days, which vary between quarters. The lowest net sales and operating earnings normally occur in Q3, where there are fewest production days. The other quarters are relatively even although variations may occur.

transaction with related parties

No significant transactions were made with related parties during the reporting period.

For further information, see note 34 of the 2015 annual report.

employees

The total number of employees in the Group amounted on the closing day to 1,264 (1,199).

contingent liabilities

During the report period there was no significant change in contingent liabilities.

divested business

As of 30 June 2014 the Group completed the divestment of the Finnveden Metal Structures division and consequently Finnveden Metal Structures is reported as discontinued operations separate from continuing operations.

cash flow

For the January-December period cash flow for discontinued operations was SEK – million (2.5).

parent company

Bulten AB (publ) owns, directly or indirectly, all the companies in the Group. The equity/assets ratio was 73.1% (70.4). Equity was SEK 1,154.7 million (1,100.8). Disposable cash and cash equivalents in the parent company totalled SEK – (1.1) million. The company had 9 employees on the closing day.

significant events after the end of the reporting period

There were no significant events to report.

proposed dividend

Bulten's target is to pay dividends to shareholders representing over time one third of net earnings after tax. Consideration shall however be given to Bulten's financial position, cash flow and outlook.

The Board of Bulten AB proposes to the AGM a total dividend of SEK 4.50 per share for 2016, of which 3.50 SEK (3.25) per share is to be considered as ordinary dividend and 1.00 SEK per share is to be considered as extra dividend. This represents around 62% of net earnings after tax adjusted for non-recurring items. The reconciliation date for the dividend is proposed to be 27 April 2017.

2017 annual general meeting

The Annual General Meeting for Bulten AB (publ) will be held on 25 April 2017 in Göteborg. Shareholders wishing to have matters dealt with at the meeting must send their proposals to the Board of directors via email to chairman@bulten.com or via post to

Bulten AB (publ) Årsstämma Box 9148 SE-400 93 Göteborg Sweden

Proposals must reach the company no later than 17 February 2017.

2016 annual report

Bulten's annual report for 2016 is expected to be available at the latest on 5 April 2017 when it will be published on the company's website, www.bulten.se, where it may also be ordered in printed form.

auditor's verification

This report has not been verified by the company's auditors.

nominations committee

In accordance with the resolution of the AGM, the Nominations Committee shall comprise four members, one representative each for the three largest shareholders as of the final banking day in September who wish to appoint a representative to the nominations committee, and the chairman of the Board. The three largest shareholders are those registered and owner-grouped by Euroclear Sweden AB as of the final banking day in September.

The Nominations Committee for the 2017 AGM is as follows:

• Claes Murander, appointed by Lannebo Fonder
• Öystein Engebretsen, appointed by Investment AB Öresund
• Pär Andersson, appointed by Spiltan Fonder AB
• Ulf Liljedahl, Chairman of Bulten AB

Göteborg, Sweden 9 February 2017 Bulten AB (publ)

Tommy Andersson President and CEO

about bulten

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 1,300 coworkers in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm.

vision

Supporting the global automotive industry with state of the art fastener technology and services.

business concept

Bulten shall:

• • be the leading business partner and the most cost-effective supplier of fasteners and services to the automotive industry.
• • with empowered and dedicated people continuously develop its full service concept and actively launch innovations.
• • develop long-term relations based on professionalism and good business ethics.

financial targets and dividend policy

• • The Group's target is to achieve profitable organic growth and to grow more strongly than the industry in general.
• • The Group's target is that the operating margin shall be at least seven (7) per cent.
• • The Group's target is that the return on average working capital shall be at least fifteen (15) per cent.
• • The Group's dividend policy 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.*)

strategy

Bulten has a clear focus on organic growth in Europe, Russia and China. Over the past six years Bulten has reported an average growth of around 12% per year, which is much higher than the market in general. The prospects for Bulten to grow organic on the global automotive market are continued good.

Bulten shall be a preferred full service provider and provide everything from development, production and logistics to final delivery at the customer's assembly line. This has been a successful concept and the strategy is to continue developing the business in this direction. Already today Bulten's contract portfolio consists of approximately three quarters full service contracts and the share is expected to increase.

Bulten's strategy is based on offering competitive products and services. This will be achieved by having advanced production processes at low costs with geographical proximity to the customer. Bulten is continuously working to develop its expertise in order to offer its customers the best possible quality at the best possible price.

Part of Bulten's strategy is also to constantly develop the innovative and technological know-how needed to create new products together with customers, thus offering improved and more costeffective solutions to OEMs.

Shareholder information

		Q4		Full YEAR
pri ce-related share data	2016	2015		2016	2015
Share price at period-end (final pay price), SEK	89.00	82.00	7.00	89.00	82.00	7.00
Highest share price during period (final pay price), SEK	99.75	87.50	12.25	99.75	104.75	-5.00
Lowest share price during period (final pay price),SEK	79.25	71.75	7.50	67.75	62.00	5.75
Market value at period end, MSEK	1,812.0	1,669.5	142.5	1,812.0	1,669.5	142.5
P/E	–	–	–	12.23	14.62	-2.39
P/E, adjusted for non-recurring items	–	–	–	12.23	15.47	-3.24
Dividend yield, %	–	–	–	5.06	3.96	1.10
Data per share
Earnings before depreciation (EBITDA)	3.50	3.13	0.37	13.32	10.80	2.52
Operating earnings (EBIT)	2.55	2.32	0.23	9.83	7.92	1.91
Earnings after net financial items (EAFI)	2.45	1.96	0.49	9.63	7.38	2.25
Earnings for the period	1.82	1.33	0.49	7.27	5.61	1.66
Earnings for the period, adjusted for non-recurring items	1.82	1.21	0.61	7.27	5.30	1.97
Shareholders equity	–	–	–	65.96	60.58	5.38
Cash flow from the operating activities	6.01	4.37	1.64	17.23	6.79	10.44
Cash flow for the period	1.12	-1.68	2.80	3.27	-10.07	13.34
Dividend 1)	–	–	–	4.50	3.25	1.25
Total outstanding ordinary shares, 000s
Weighted total during the period	20,359.7	20,457.6	-97.9	20,359.7	20,829.5	-469.8
At period end	20,359.7	20,359.7	–	20,359.7	20,359.7	–

1) The Board of Bulten AB proposes to the AGM a total dividend of SEK 4.50 per share for 2016, of which 3.50 SEK (3.25) per share is to be considered as ordinary dividend and 1.00 SEK per share is to be considered as extra dividend.

Source: Cision register, 31 December 2016

bulten's TEN largest shareholders

shareholder	noof shares	holdi ng, %
Volito AB	4,450,000	21.2
Lannebo fonder	2,896,443	13.8
Investment AB Öresund	2,263,535	10.8
JP Morgan	1,046,329	5.0
Spiltan Fonder AB	752,479	3.6
Bulten AB	680,500	3.2
Sjöbergstiftelsen	400,000	1.9
Clients Accounts-DCS	362,996	1.7
CBNY-JOHNHANCOCKFUNDS	314,593	1.5
CBNY-DFA-INTSMLCAPV	310,142	1.5

Total number of shareholders: 6,568

Source: Euroclear Sweden AB´s register, 31 December 2016

information about this interim report

Bulten aims to operate a sustainable business and strives to identify areas where we can reduce our environmental impact. Starting in Q2 2016 we will therefore no longer produce our interim report in printed paper format.

All of Bulten's reports can be read at, and downloaded from, www.bulten.se. Shareholders who are unable to read reports online may order a printed copy by contacting Bulten.

Our subscription service at www.bulten.se gives you the opportunity to subscribe for Bulten's reports and press releases via email.

financial information

Consolidated income statement

		Q4		Full YEAR
SEK millio n	2016	2015		2016	2015
Net sales	673.7	666.7	7.0	2,676.0	2,693.5	-17.5
Cost of goods sold	-533.6	-535.1	1.5	-2,145.2	-2,183.4	38.2
Gross profit	140.1	131.6	8.5	530.8	510.1	20.7
Other operating income	5.5	10.6	-5.1	26.5	32.5	-6.0
Selling expenses	-48.7	-49.5	0.8	-188.0	-191.6	3.6
Administrative expenses	-42.5	-40.6	-1.9	-164.8	-166.5	1.7
Other operating expenses	-3.5	-4.3	0.8	-1.5	-19.7	18.2
Share of result ofJoint Venture	1.0	-0.4	1.4	-2.9	0.2	-3.1
Operating earnings	51.9	47.4	4.5	200.1	165.0	35.1
Financial income	–	–	–	2.5	0.1	2.4
Financial expenses	-2.1	-7.3	5.2	-6.6	-11.4	4.8
Earnings before tax	49.8	40.1	9.7	196.0	153.7	42.3
Tax on period's earnings	-12.5	-15.8	3.3	-49.5	-42.8	-6.7
Earnings after tax	37.3	24.3	13.0	146.5	110.9	35.6
Attributable to
Parent company shareholders	37.2	27.2	10.0	148.1	116.8	31.3
Minority interests	0.1	-2.9	3.0	-1.6	-5.9	4.3
Earnings after tax	37.3	24.3	13.0	146.5	110.9	35.6
Earnings per share attributable to parent company shareholders
Earnings per share, SEK 1)	1.82	1.33	0.49	7.27	5.61	1.66
Earnings per share, adjusted for one-off effect, SEK1)	1.82	1.21	0.61	7.27	5.30	1.97
Weighted outstanding ordinary shares, 000 1)	20,359.7	20,457.6	-97.9	20,359.7	20,829.5	-469.8

1) Both before and after dilution.

Consolidated statement of comprehensive income

		Q4			Full YEAR
SEK millio n	2016	2015		2016	2015
Earnings after tax	37.3	24.3	13.0	146.5	110.9	35.6
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation ofdefinedbenifitpensionplan, net aftertax	1.4	0.9	0.5	1.4	0.9	0.5
Items thatmaybereclassifiedsubsequently toprofitorloss
Exchange rate differences	-1.9	-22.3	20.4	27.7	-21.5	49.2
Total comprehensive income	36.8	2.9	36.0	175.6	90.3	85.3
Attributable to
Parent company shareholders	35.4	7.0	28.4	173.8	98.5	75.3
Minority interests	1.4	-4.1	5.5	1.8	-8.2	10.0
Total comprehensive income	36.8	2.9	33.9	175.6	90.3	85.3

Consolidated balance sheet

ASSETS Fixed assets 206.0 Intangible fixed assets1) Tangible fixed assets 570.5 60.7 Financial assets Deferred tax receivables 35.0 872.2 Total fixed assets Current assets Inventories 449.6 538.7 Current receivables Cash and cash equivalents 108.6 1,096.9 Total current assets 1,969.1 Total assets EQUITY AND LIABILITIES Equity 1,342.9 Equity attributable to parent company shareholders 13.9 Minority interests 1,356.8 Total equity Non-current liabilities 78.1 Non-current interest-bearing liabilities and provisions 78.1 Total non-current liabilities Current liabilities 4.8 Current liabilities, interest-bearing 529.4 Current liabilities, non-interest-bearing 534.2 Total current liabilities 1,969.1 Total equity and liabilities 1,333.5 Pledged assets 46.2 Contingent liabilities	SEK millio n	31-12-2016	31-12-2015
			202.9
			547.5
			61.2
			65.7
			877.3
			472.2
			554.5
			40.5
			1,067.2
			1,944.5
			1,233.5
			11.7
			1,245.2
			167.7
			167.7
			53.5
			478.1
			531.6
			1,944.5
			1,260.8
			47.2

1) Whereof goodwill SEK 203.9 million (201.3).

Consolidated statement of changes in equity

SEK millio n	31-12-2016	31-12-2015
Opening equity	1,245.2	1,272.7
Comprehensive income
Earnings after tax	146.5	110.9
Other comprehensive income	29.1	-20.6
Total comprehensive income	175.6	90.3
Transactions with shareholders
Buy-back of own shares	–	-54.7
Share-based payment to employees	2.2	–
Dividend paid to parent company shareholders	-66.2	-63.1
Total transactions with shareholders	-64.0	-117.8
Closing equity	1,356.8	1,245.2

Consolidated cash flow statement

	Q4		Full year
SEK millio n	2016	2015	2016	2015
Continuing Operations
Operating activities
Earnings after financial items	49.8	40.1	196.0	153.7
Adjustments for items not included in cash flow	17.0	15.1	71.6	54.7
Tax paid	-4.7	-4.0	-20.7	-21.6
Cash flow from operating activities before changes in working capital	62.1	51.2	246.9	186.8
Cash flow from changes in working capital
Change in working capital	60.2	39.6	103.8	-45.5
Cash flow from operating activities	122.3	90.8	350.7	141.3
Investing activities
Acquisition of intangible fixed assets	-0.4	-0.3	-0.6	-1.1
Acquisition of tangible fixed assets 1)	-30.4	-151.4	-81.8	-249.2
Disposal of tangible fixed assets	0.2	5.2	0.3	9.1
Change of financial assets	–	0.2	–	-65.7
Cash flow from investing activities	-30.6	-146.3	-82.1	-306.9
Financing activities
Change in overdraft facilities and other financial liabilities	-68.9	41.9	-135.9	73.8
Buy back of own shares	–	-21.0	–	-54.7
Dividend paid to parent company shareholders	–	–	-66.2	-63.1
Cash flow from financing activities	-68.9	20.9	-202.1	-44.0
Cash flow for the period continuing operations	22.8	-34.6	66.5	-209.6
DISCONTINUED OPERATIONS
Cash flow from operating activities	–	–	–	-2.5
Cash flow for the period discontinued operations	–	–	–	-2.5
Cash flow for the period	22.8	-34.6	66.5	-212.1
Change in cash and cash equivalents	22.8	-34.6	66.5	-212.1
Cash and cash equivalents at start of financial year	86.1	78.0	40.5	255.5
Exchange rate difference in cash and cash equivalents	-0.3	-2.9	1.6	-2.9
Cash and cash equivalents at end of period	108.6	40.5	108.6	40.5

1) Cash flow from the acquisition of tangible fixed assets in Q4 2015 include cash flow effect of the acquisition of industrial and office property in Hallstahammar.

Consolidated net cash/NEt debt

SEK millio n	31-12-2016	31-12-2015
Non-current interest-bearing liabilities	-60.4	-147.7
Provisions for pensions	-17.7	-20.0
Current interest-bearing liabilities	-4.8	-53.5
Financial interest-bearing liabilities	4.7	4.7
Cash and cash equivalents	108.6	40.5
Net cash(+)/net debt(-)	30.4	-176.0
Adjusted for interest bearing liabilities related to financial lease agreements	37.8	38.3
Adjusted net cash(+)/net debt(-)	68.2	-137.7

Consolidated key indicators

		Q4	Full	year
THE GROUP	2016	2015	2016	2015
Margins
EBITDA margin, %	10.6	9.6	10.1	8.4
Adjusted EBITDA margin, %	10.6	9.0	10.1	8.1
EBIT margin (operating margin), %	7.7	7.1	7.5	6.1
Adjusted EBIT margin (operating margin), %	7.7	6.5	7.5	5.8
Net margin, %	5.5	3.6	5.5	4.1
Adjusted net margin, %	5.5	3.0	5.5	3.8
Capital structure
Interest coverage ratio, times	40.9	6.4	30.6	14.4
Data per share attributable to parent company shareholders
Earnings per share, SEK *)	1.82	1.33	7.27	5.61
Earnings per share, adjusted for one-off effects, SEK *)	1.82	1.21	7.27	5.30
Number of outstanding ordinary shares
Weighted outstanding ordinary shares, 000 *)	20,359.7	20,457.6	20,359.7	20,829.5

THE GROUP	31-12-2016	31-12-2015
Capital structure
Net debt/equity ratio, times	0.0	-0.1
Equity/assets ratio, %	68.9	64.0
Other
Net cash(+)/net debt(-), SEK m	30.4	-176.0
Adjusted net cash(+)/net debt(-), SEK m	68.2	-137.7
Equity per share attributable to parent company shareholders
Equity per share, SEK*)	65.96	60.58
Number of outstanding ordinary shares
Number of outstanding ordinary shares at period end, 000 *)	20,359.7	20,359.7

THE GROUP, 12 months rolli ng	2016	2015
Return indicators
Return on capital employed, %	13.9	11.5
Adjusted return on capital employed, % 1)	13.9	11.0
Return on equity, %	11.5	9.4
Adjusted return on equity, % 2)	11.5	8.9
Capital structure
Capital turnover, times	1.8	1.9
Employees
Sales per employee, SEK '000	2,117.1	2,246.5
Operating earnings per employee, SEK '000	158.3	137.6
Number of employees on closing date	1,264	1,199

*) Refers to both before and after dilution.

Definitions

Definitions of key indicators are unchanged compared with those used in the 2015 annual report.

Other key indicators not used in the annual report or on page 13, 14 in this interimreport are explained below.

1) Adjusted return on capital employed: Earnings before financial cost adjusted for non-recurring items in percentage of average capital employed.

2)Adjusted return on equity: Net earnings adjusted for non-recurring items divided with average equity.

Consolidated quarterly data

		2015
THE GROUP	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Order bookings	744.0	602.1	671.8	698.6	673.6	652.3	688.0	659.6
Income statement
Net sales	673.7	600.6	686.4	715.3	666.7	617.5	695.8	713.5
Gross earnings	140.1	116.6	138.2	135.9	131.6	112.0	135.9	130.6
Earnings before depreciation (EBITDA)	71.3	57.4	70.5	72.0	63.9	50.9	59.7	50.5
EBITDA margin, %	10.6	9.6	10.3	10.1	9.6	8.2	8.6	7.1
Adjusted earnings before depreciation (EBITDA)	71.3	57.4	70.5	72.0	59.9	50.9	55.9	50.5
Adjusted EBITDA margin, %	10.6	9.6	10.3	10.1	9.0	8.2	8.0	7.1
Operating earnings (EBIT)	51.9	39.3	53.6	55.3	47.4	36.0	45.2	36.4
EBIT margin (operating margin), %	7.7	6.5	7.8	7.7	7.1	5.8	6.5	5.4
Adjusted operating earnings (EBIT)	51.9	39.3	53.6	55.3	43.4	36.0	41.4	36.4
Adjusted EBIT margin (operating margin), %	7.7	6.5	7.8	7.4	6.4	5.8	5.9	5.1
Earnings after tax	37.3	29.9	38.9	40.4	24.3	21.8	35.3	29.5
Net margin, %	5.5	5.0	5.7	5.6	3.6	3.5	5.1	4.1
Adjusted earnings after tax	37.3	29.9	38.9	40.4	20.3	21.8	31.5	29.5
Adjusted net margin, %	5.5	5.0	5.7	5.6	3.0	3.5	4.5	4.1
Cash flow from
operating activities	122.3	55.4	95.1	77.9	90.8	-12.4	14.2	48.7
investment activities	-30.6	-29.0	-6.5	-16.0	-146.3	-40.0	-33.0	-87.6
financing activities	-68.9	9.8	-134.7	-8.3	20.9	4.6	-65.4	-4.1
Cash flow for the period	22.8	36.2	-46.1	53.6	-34.6	-47.8	-84.2	-43.0
Earnings per share attributable to parent company shareholders
Earnings per share, SEK *)	1.82	1.50	1.92	2.03	1.33	1.14	1.69	1.44
Earnings per share, adjusted for one-off effects, SEK *)	1.82	1.50	1.92	2.03	1.21	1.14	1.50	1.44
Number of outstanding ordinary shares
Weighted outstanding ordinary shares, 000 *)	20,359.7	20,359.7	20,359.7	20,359.7	20,457.6	20,786.7	21,040.2	21,040.2

THE GROUP		31-12-2016 30-09-2016 30-06-2016		31-03-2016		31-12-2015 30-09-2015 30-06-2015		31-03-2015
Balance sheet
Fixed assets	872.2	867.6	851.6	866.9	877.3	725.4	711.1	699.3
Current assets	1,096.9	1,070.7	1,037.4	1,103.1	1,067.2	1,144.8	1,161.6	1,238.9
Equity	1,356.8	1,319.2	1,267.1	1,283.5	1,245.2	1,263.3	1,276.6	1,312.6
Non-current liabilities	78.1	100.3	89.7	159.5	167.7	153.8	114.2	115.9
Current liabilities	534.2	518.8	532.2	527.0	531.6	453.1	481.9	509.7
Other
Net cash(+)/net debt(-)	30.4	-62.6	-89.3	-114.0	-176.0	-73.2	12.0	95.2
Adjusted net cash(+)/net debt(-)	68.2	-24.7	-52.6	-76.1	-137.7	-71.3	14.1	97.5
Equity per share attributable to parent company shareholders
Equity per share, SEK*)	65.96	64.20	61.63	62.48	60.58	60.52	59.71	61.40
Number of outstanding ordinary shares
Number of outstanding ordinary shares at period end, 000 *)	20,359.7	20,359.7	20,359.7	20,359.7	20,359.7	20,612.7	21,040.2	21,040.2
Shareprice
Sharesprice at period end,(SEK)	89.00	97.50	81.75	74.50	82.00	71.50	81.50	93.50

*) Refers to both before and after dilution.

consolidated, 12 month rolling

	January 2016– December	October 2015– Sept­ember	July 2015–	April 2015–	January 2015– December	October 2014– Sept­ember	July 2014–	April 2014–	January 2014– December
the group , 12 monthrolli ng	2016	2016	June 2016	March 2016	2015	2015	June 2015	March 2015	2014
Order bookings	2,716.5	2,646.1	2,696.3	2,712.5	2,673.5	2,705.5	2,623.7	2,584.4	2,556.8
Income statement
Net sales	2,676.0	2,669.0	2,685.9	2,695.3	2,693.5	2,647.9	2,623.7	2,546.3	2,414.3
Gross result	530.8	522.3	517.7	515.4	510.1	493.4	486.2	474.9	454.6
Earnings before depreciation (EBITDA)	271.2	263.8	257.3	246.5	225.0	212.5	197.3	186.4	179.8
EBITDA-margin, %	10.1	9.9	9.6	9.1	8.4	8.0	7.5	7.3	7.4
Adjusted earnings before depreciation (EBITDA)	271.2	259.8	253.3	238.7	217.2	208.7	182.3	175.2	168.6
Adjusted EBITDA-margin, %	10.1	9.7	9.4	8.9	8.1	7.9	6.9	6.9	7.0
Operating earnings (EBIT)	200.1	195.6	192.3	183.9	165.0	156.0	144.7	136.9	133.4
EBIT-margin (operating margin), %	7.5	7.3	7.2	6.8	6.1	5.9	5.5	5.4	5.5
Adjusted operating earnings (EBIT)	200.1	191.6	188.3	176.1	157.2	152.2	129.7	125.7	122.2
Adjusted EBIT-margin (operating margin), %	7.5	7.2	7.0	6.5	5.8	5.7	4.9	4.9	5.1
Earnings after tax	146.5	133.5	125.4	121.8	110.9	105.0	100.2	91.4	84.4
Net margin, %	5.5	5.0	4.7	4.5	4.1	4.0	3.8	3.6	3.5
Adjusted earnings after tax	146.5	129.5	121.4	114.0	103.1	101.2	87.7	82.7	75.7
Adjusted net margin, %	5.5	4.9	4.5	4.2	3.8	3.8	3.3	3.2	3.1
Employees
Net sale per employee, SEK 000	2,117.1	2,114.9	2,153.9	2,193.1	2,246.5	2,215.8	2,168.3	2,136.2	2,054.7
Operating earnings per employee, SEK 000	158.3	155.0	154.2	149.6	137.6	130.5	119.6	114.8	113.5
Number of employee on closing day	1,264	1,262	1,247	1,229	1,199	1,195	1,210	1,192	1,175
Return indicators
Return on capital employed, %	13.9	13.7	13.4	12.3	11.5	10.9	10.7	9.6	9.6
Adjusted return on capital employed, % 1)	13.9	13.5	13.1	11.8	11.0	10.6	9.6	8.8	8.8
Return on equity, %	11.5	10.8	10.5	10.0	9.4	9.0	8.6	13.3	15.0
Adjusted return on equity, % 2)	11.5	10.6	10.3	9.5	8.9	8.7	7.6	12.6	13.1
Others
Net cash(+)/net debt(-)/EBITDA	0.1	-0.2	-0.3	-0.5	-0.8	-0.3	0.1	0.5	0.8
Adjusted net cash(+)/net debt(-)/EBITDA	0.3	-0.1	-0.2	-0.3	-0.6	-0.3	0.1	0.5	0.8

reconciliation between IFRS and used key indicators

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 analyse 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.

adjusted net sales, organic growth

	Q4				FULL YEAR
adJusted net sales	2016	2015		2016	2015
Net sales	673.7	666.7	1.1%	2,676.0	2,693.5	-0.6%
Currency effect current period	-26.4	–	–	-15.9	–	–
Adjusted net sales	647.3	666.7	-2.9%	2,660.1	2,693.5	-1.2%

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
ear ningsbefore depre ciatio n (ebitda )	2016	2015		2016	2015
Operating earnings (EBIT)	51.9	47.4	4.5	200.1	165.0	35.1
Depreciation and amortisation	19.4	16.5	2.9	71.1	60.0	11.1
Earnings before depreciation (EBITDA)	71.3	63.9	7.4	271.2	225.0	46.2

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 operating earnings

		Q4			FULL YEAR
adjusted operati ng ear nings	2016	2015		2016	2015
Operating earnings (EBIT)	51.9	47.4	4.5	200.1	165.0	35.1
Capital gain from sale oftangible fixed assets	–	-4.0	4.0	–	-7.8	7.8
Adjusted operating earnings	51.9	43.4	8.5	200.1	157.2	42.9

When calculating adjusted operating earnings (EBIT), non-recurring items are returned to operating earnings (EBIT). This measurement provides a figure for operating earnings excluding non-recurring items, which may affect comparability.

adjusted earnings after tax

	Q4			FULL YEAR
adjusted ear ningsafter tax	2016	2015		2016	2015
Earnings after tax	37.3	24.3	13.0	146.5	110.9	35.6
Capital gain from sale oftangible fixed assets	–	-4.0	4.0	–	-7.8	7.8
Adjusted earnings after tax	37.3	20.3	17.0	146.5	103.1	43.4

When calculating adjusted earnings after tax, non-recurring items after tax are returned to earnings after tax. This measurement provides a figure for earnings after tax excluding non-recurring items, which may affect comparability.

reconciliation between IFRS and used key indicators

adjusted earnings per share

	Q4				FULL YEAR
adjusted ear ningsper share	2016	2015		2016	2015
Earnings after tax attributable to parent company shareholders	37.2	27.2	10.0	148.1	116.8	31.3
Capital gain from sale oftangible fixed assets aftertax attributable to parent company shareholders	–	-2.5	2.5	–	-6.4	6.4
Adjusted earnings after tax attributable to parent company shareholders	37.2	24.7	12.5	148.1	110.4	37.7
Weighted outstanding ordinary shares	20,359.7	20,457.6	-97.9	20,359.7	20,829.5	-469.8
Adjusted earnings per share 1)	1.82	1.21	0.61	7.27	5.30	1.97

1) Attributable to parent company shareholders.

When calculating adjusted earnings after tax attributable to the parent company, non-recurring items after tax attributable to the parent company are returned to earnings after tax attributable to the parent company. This measurement provides a figure for earnings per share excluding non-recurring items, which may affect comparability.

adjusted net cash/net debt

adjusted net cash / netdebt	31-12-2016	31-12-2015
Net cash(+)/net debt(-), MSEK	30.4	-176.0
Adjusted for interest bearing liabilities related to financial lease agreements	37.8	38.3
Adjusted net cash(+)/net debt(-), MSEK	68.2	-137.7

When calculating adjusted net cash/net debt, interest-bearing debt attributable to financial leases is deducted from net cash/net debt. This measurement provides a figure for a refined financial structure excluding lease liabilities.

Income statement, parent company q4 FULL YEAR

SEK millio n	2016	2015		2016	2015
Net sales	6.0	10.0	-4.0	27.9	27.0	0.9
Gross profit	6.0	10.0	-4.0	27.9	27.0	0.9
Administrative expenses	-8.6	-9.8	1.2	-39.1	-36.0	-3.1
Operating earnings	-2.6	0.2	-2.8	-11.2	-9.0	-2.2
Interest expenses and similar items	-1.9	-2.5	0.6	-8.4	-10.0	1.6
Earnings after financial items	-4.5	-2.3	-2.2	-19.6	-19.0	-0.6
Appropriations	174.0	120.0	54.0	174.0	120.0	54.0
Earnings before tax	169.5	117.7	51.8	154.4	101.0	53.4
Tax on period's earnings	-37.4	-26.0	-11.4	-34.3	-22.6	-11.7
Earnings after tax	132.1	91.7	40.4	120.1	78.4	41.7

Balance sheet, parent company

SEK millio n	31-12-2016	31-12-2015
ASSETS
Fixed assets
Intangible fixed assets	1.1	1.1
Tangible fixed assets	1.3	1.7
Total intangible and tangible fixed assets	2.4	2.8
Financial fixed assets
Participations in Group companies	1,382.5	1,382.5
Deferred tax assets	19.3	53.6
Other non-current receivables	0.3	0.4
Total financial fixed assets	1,402.1	1,436.5
Total fixed assets	1,404.5	1,439.3
Current assets
Current receivables from Group companies	174.1	120.2
Other current receivables	2.1	2.5
Cash and cash equivalents	–	1.1
Total current assets	176.2	123.8
Total assets	1,580.7	1,563.1
EQUITY AND LIABILITIES
Equity
Restricted equity	110.1	110.1
Non-restricted equity	1,044.6	990.7
Total equity	1,154.7	1,100.8
Non-current liabilities
Non-current liabilities to Group companies	345.6	328.4
Total non-current liabilities	345.6	328.4
Current liabilities
Current liabilities to Group companies	67.0	121.1
Other current liabilities	13.4	12.8
Total current liabilities	80.4	133.9
Total equity and liabilities	1,580.7	1,563.1
Pledged assets	1,382.5	1,382.5
Contingent liabilities	6.5	6.6

January – DEcEMBER 2016

Bulten has positioned itself with technology for electric cars and hybrids, among oter things by developing its cooperation with one of the world's largest electric car producers and been appointed Certified Preferred Supplier.

future financial report dates

25 April 2017 Interim report, Janyary – March 2017 12 July 2017 Half year report, January – June 2017 26 October 2017 Interim report, January – September 2017 8 February 2018 Full year report, January – December 2017

The reports are available on Bulten's website, www.bulten.com as of the above dates.

contact

For further information, please contact Kamilla Oresvärd, Senior Vice President Corporate Communications Tel: +46 31 734 59 00, e-mail: kamilla.oresvard@bulten.com

invitation to presentation

Investors, analysts and media are invited to participate in the teleconference on Febrary 9 at 15.30 CET when the report will be presented by Tommy Andersson, President and CEO and Helena Wennerström, Executive Vice President and CFO.

The presentation will be held in English and can be followed live via the link: https://wonderland.videosync.fi/bulten-q4-report-2016. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening to SE: +46856642509, UK: +442030089807 US: +18558315945.

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 9, 2017.

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 1,300 employees in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com

Bulten AB (publ) Box 9148, SE-400 93 Göteborg, Sweden Visiting address: August Barks Gata 6 A Tel +46 31 734 59 00, Fax +46 31 734 59 09 www.bulten.com