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Bulten Interim / Quarterly Report 2013

Oct 24, 2013

3019_10-q_2013-10-24_72f9a5a0-dfa4-4620-93d0-246d415894fd.pdf

Interim / Quarterly Report

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INTERIM REPORT January–September 2013

Good growth and improvement in profit margin. Significant business secured for the Bulten division

THIRD quarter

  • • Net sales reached SEK 714 million (649), up 10.0% on the same period last year.
  • • Earnings (EBIT) adjusted for non-recurring items were SEK 29 million (11), which corresponds to an adjusted operating margin of 4.0% (1.8).
  • • Earnings (EBIT) reached SEK 24 million (11), which corresponds to an operating margin of 3.4% (1.8).
  • • Profit after tax was SEK 14 million (3) and SEK 18 million (3) when adjusted for non-recurring items for restructuring measures.
  • • Order bookings amounted to SEK 698 million (610), up 14.5% on the same period last year.
  • • Cash flow from current activities was SEK 19 million (-84).
  • • Earnings per share were SEK 0.68 (0.15). Adjusted for non-recurring items, earnings per share were SEK 0.83 (0.15).
  • • A significant new full-service contract worth approximately EUR 35 million annually was signed by Bulten division, with start planned for early 2014.
  • • Restructuring of the foundry business within Finnveden Metal Structures division continues and has highest priority.

January-SEPTEMBER

  • • Net sales reached SEK 2,238 million (2,287) down 2.1% on the same period last year.
  • • Earnings adjusted for non-recurring items were SEK 99 million (92), which corresponds to an operating margin of 4.4% (4.0).
  • • Earnings (EBIT) reached SEK 65 million (92), which corresponds to an operating margin of 2.9% (4.0).
  • • The profit after tax was SEK 59 million (58) and SEK 60 million (58) when adjusted for non-recurring items of SEK 0,1 million net comprising a tax receivable from an approved interest deduction resulting from the verdict of the Swedish Administrative Court of Appeal of SEK 27.1 million and restructuring costs of SEK –27.2 million.
  • • Order bookings amounted to SEK 2,340 million (2,255), up 3.8% on the same period last year.
  • • Cash flow from current activities was SEK 133 million (29).
  • • Earnings per share were SEK 2.83 (2.77). Adjusted for non-recurring items, earnings per share were SEK 2.83 (2.77).

"The Group's earnings rose compared with the same period last year due to higher and more consistent delivery volumes and both ongoing and completed rationalisation measures. The strong demand noted in Q2 continued during the seasonally weaker Q3, which resulted in good order bookings and stable loading at our production units.

The Bulten division's successful FSP concept (Full Service Provider) continues to generate good growth. During the quarter the division won a significant new order from a major vehicle manufacturer corresponding to an annual sales value of approximately EUR 35 million. Opportunities for new business and higher market shares

going forward are expected to remain good. The profitability of the Finnveden Metal Structures division has also improved compared with the corresponding quarter last year, mainly due to increased volumes and ongoing rationalisation measures, where streamlining of the foundry business has highest priority."

Johan Westman, President and CEO

Group summary

Market and outlook for 2013

Of the Group's total net sales, around 80% is attributable to vehicle producers (OEMs) and around 20% to their sub-suppliers and to other sectors. Deliveries for light vehicles (cars and light commercial vehicles) currently account for 75% of FinnvedenBulten's income while heavy commercial vehicles account for 25%.

In Q3, FinnvedenBulten noted continued improvement in demand compared with the start of the year.

According to the IHS Automotives (IHS) forecast from September for light vehicles and from August for heavy vehicles, production of light vehicles in Western Europe is expected to fall by around 1.8% and production of heavy vehicles to fall by around 6.1% in 2013 compared with 2012. Weighted for FinnvedenBulten's exposure, this means a fall of around 2.9% — which is an upward revision of 1.5 percentage points compared with the IHS forecast in the previous quarter. Some uncertainty remains in the short term for production of heavy vehicles in Western Europe. The new EURO VI emissions directive that comes into effect on 1 January 2014 is having a prebuy effect on vehicle production in 2013, and is also expected to negatively affect production at the start of 2014.

FinnvedenBulten's future plans provide for good opportunities for continued increases in market share and increased volumes in the Bulten division, plus a more stable and more profitable business for the Finnveden Metal Structures division following the announced restructuring.

Order bookings and net sales

Third quarter

Order bookings for the period were SEK 698.3 million (609.7), an increase of 14.5% compared with the corresponding period in the previous year. Net sales for the Group totalled SEK 714.2 million (649.3), an increase of 10.0% compared with the corresponding period in the previous year. Strong order booking and sales in line with corresponding period in the strong year 2011.

January-September

Order bookings for the period were SEK 2,340.4 million (2,255.1), which was 3.8% higher than the corresponding period in the previous year. Net sales for the Group totalled SEK 2,237.9 million (2,286.8), a decrease of 2.1% compared with the corresponding period in the previous year. Adjusted for currency effects, the reduction was 1.2% compared with the same period last year.

Earnings and profitability Third quarter

The Group's gross profit was SEK 116.8 million (92.3), corresponding to a gross margin of 16.4% (14.2). Earnings before depreciation (EBITDA) were SEK 44.4 million (30.6), corresponding to an EBITDA margin of 6.2% (4.7). Adjusted for non-recurring items, earnings before depreciation were SEK 48.6 million (30.6), corresponding to an adjusted EBITDA margin of 6.8% (4.7).

Earnings (EBIT) were SEK 24.4 million (11.4), corresponding to an operating margin of 3.4% (1.8). Adjusted for non-recurring items, EBIT was SEK 28.6 million (11.4), corresponding to an adjusted EBIT margin of 4.0% (1.8). The sum of SEK 4.2 million in non-recurring

items relating to the restructuring programme to streamline the foundry business affected earnings during Q3.

Loading during the quarter was consistent and high. EBIT was also negatively affected by currency changes of SEK -8.3 million when translating working capital at the closing date, primarily relating to the Bulten division.

Net financial items in the Group were SEK –3.6 million (–5.7). Financial income was SEK 1.1 million (-) and mostly comprises currency differences of SEK 1.0 million (-). Financial costs were SEK -4.7 million (-5.7) and mainly comprise external interest costs amounting to SEK –2.9 million (–4.0). Currency differences in 2012 were SEK -1.9 million.

The Group's profit before tax was SEK 20.8 million (5.7) and the profit after tax was SEK 14.2 million (3.1).

January-September

The Group's gross profit was SEK 367.2 million (353.9), corresponding to a gross margin of 16.4% (15.5).

Earnings before depreciation (EBITDA) were SEK 137.5 million (148.9), corresponding to an EBITDA margin of 6.1% (6.5). Adjusted for non-recurring items, earnings before depreciation were SEK 157.3 million (148.9), corresponding to an adjusted EBITDA margin of 7.0% (6.5).

Earnings (EBIT) were SEK 64.7 million (91.8), corresponding to an operating margin of 2.9% (4.0). Adjusted for non-recurring items, EBIT was SEK 99.5 million (91.8), corresponding to an adjusted EBIT margin of 4.4% (4.0). The sum of SEK 34.8 million in non-recurring items relating to the restructuring programme to streamline the foundry business affected earnings during the year, of which SEK 19.8 million was before depreciation.

The first quarter was affected by lower sales and profitability problems at the Swedish foundry business within the Finnveden Metal Structures division. Loading during the following quarters was consistent and high. EBIT was also negatively affected by currency changes of SEK -3.6 million when translating working capital at the closing date relating to the Bulten division.

Net financial items in the Group were SEK –16.2 million (–9.2). Financial incomes were SEK 0.2 million (2.8). Last year's figures included positive currency effects of SEK 2.7 million. Financial costs were SEK -16.4 million (-12.0) and mainly refer to interest on loans from external creditors of SEK -9.7 million (-11.0) and currency

differences of SEK -4.2 million (-). The Group's profit before tax was SEK 48.5 million (82.6) and the profit after tax was SEK 59.5 million (58.2).

The tax cost for the period was SEK 11.0 million (–24.4) which included, inter alia, a deferred tax asset of SEK 27.1 million relating to additional loss deductions in accordance with a verdict from the Swedish Administrative Court of Appeal.

Investments

January-September

Investments in intangible and tangible fixed assets were SEK 77.8 million (75.3). SEK 72.4 million (75.3) of the investments relate to machinery and equipment. The corresponding sum for intangible fixed assets was SEK 5.4 million (-). Depreciation for the period was SEK -57.9 million (-57.1), and impairment for the period was SEK –15.0 million (-), an aggregate of SEK -72.9 million (-57.1).

Cash flow, working capital and financial position Third quarter

Cash flow from operating activities totalled SEK 19.0 million (-83.7). Cash flow effects of changes in working capital amounted to SEK -1.5 million (-78.2). Inventories decreased in the period by SEK 2.7 million (increase in 2012 of SEK 19.6 million), while operating receivables decreased by SEK 17.1 million (increase in 2012 of SEK 9.7 million).

Cash flow from investment activities had a positive effect of SEK 39.2 million due to the sale of a machine in a sale and lease-back transaction. Since this contract is classified as a financial lease the transaction had no impact on net debt.

January-September

Cash flow from operating activities totalled SEK 132.6 million (28.9). Cash flow effects of changes in working capital amounted to SEK 31.9 million (-63.2). Inventories decreased in the period by SEK 40.2 million (increase in 2012 of SEK 41.0 million), while operating receivables increased by SEK 87.7 million (33.9).

Net debt amounted to SEK 229.1 million (250.4) at the end of the period. Cash and cash equivalents were SEK 84.3 million (44.8) at the end of the period.

FINAN
CIAL SUMMARY (SEK m)
Q3 Jan-Sept 12-month
rolling
Full year
2013 2012 2013 2012 Oct 2012-
Sept 2013
2012
Net sales 714.2 649.3 10.0% 2,237.9 2,286.8 -2.1% 2,914.6 2,963.5
Gross profit 116.8 92.3 24.5 367.2 353.9 13.3 459.9 446.6
Earnings before depreciation (EBITDA) 44.4 30.6 13.8 137.5 148.9 -11.4 168.4 179.8
Adjusted earnings before depreciation (EBITDA) 48.6 30.6 18.6 157.3 148.9 8.4 188.2 179.8
Operating earnings (EBIT) 24.4 11.4 13.0 64.7 91.8 -27.1 76.2 103.3
Operating margin, % 3.4 1.8 1.6 2.9 4.0 -1.1 2.6 3.5
Adjusted operating earnings (EBIT) 28.6 11.4 17.2 99.5 91.8 7.7 111.0 103.3
Adjusted operating margin, % 4.0 1.8 2.2 4.4 4.0 0.4 3.8 3.5
Earnings after tax 14.2 3.1 11.1 59.5 58.2 1.3 44.8 43.5
Adjusted earnings after tax 17.5 3.1 14.4 59.6 58.2 1.4 64.0 62.6
Order bookings 698.3 609.7 14.5% 2,340.4 2,255.1 3.8% 2,918.2 2,832.9
Return on capital employed, % 5.8 8.2
Adjusted return on capital employed, % 8.3 8.2

Bulten is one of the largest suppliers of fasteners to the European automotive market. The product offer covers customer-specific standard products as well as customer-adapted special fasteners. Expertise is also provided in technical development, logistics, materials and production together with the Full Service Provider concept

Division BULTEN

Fastite is a self-tapping screw for securing light structures made of thin materials. The Fastite design means lower costs because no washers are needed, which in turn reduces weight and the number of articles in the production process.

  • • Net sales in Q3 increased by SEK 49 million, up 12.8% on the same period last year.
  • • Operating earnings in Q3 were SEK 20 million (12).
  • • A significant new full-service contract worth approximately EUR 35 million annually was signed in Q3, with start planned for early 2014.

The Bulten division reported strong development in Q3 with higher net sales and order bookings. Bulten continues to increase volumes and gain market shares, mainly within the framework of its Full Service Provider concept.

During the quarter a significant fullservice contract was signed with a global vehicle manufacturer concerning deliveries of fasteners. The contract is worth approximately EUR 35 million annually, of which EUR 30 million is for new deliveries. The technical competence within the division combined with many years of experience of successful supplies of complex and critical fasteners to the auto industry were of major significance for Bulten in winning this contract. Deliveries will take place over several years starting in early 2014. Full volumes are expected to be reached in 2015.

The turbulence in the automotive industry in recent years has left its mark on several suppliers of fasteners. In this environment Bulten has positioned itself well and has

good opportunities to grow organically and gain market shares.

The division's initiative in Russia continues with preparations for production start and registration of the company. Necessary permissions from competition authorities have been granted and there is major interest from potential new customers. Production start is expected during the first half of 2014 provided that the authorities approves the registration as planned.

Third quarter

Order bookings amounted to SEK 434.8 million (386.7), up 12.4% compared with the same period last year.

Net sales reached SEK 435.2 million (385.9), up 12.8% compared with the same period last year and up 9.8% when adjusted for currency effects.

Earnings before depreciation (EBITDA) reached SEK 30.3 million (22.5), corresponding to an EBITDA margin of 7.0% (5.8).

Operating earnings (EBIT) were SEK 19.8 million (12.0), corresponding to an operating margin of 4.5% (3.1). EBIT was negatively affected by currency changes of SEK -6.5 million when translating working capital at the closing date.

January-September

Order bookings amounted to SEK 1,382.1 million (1,341.8), up 3.0% compared with the same period last year.

Net sales reached SEK 1,337.0 million (1,318.6), up 1.4% compared with the same period last year and up 2.8% when adjusted for currency effects.

Earnings before depreciation (EBITDA) reached SEK 112.4 million (95.0), corresponding to an EBITDA margin of 8.4% (7.2).

Operating earnings (EBIT) were SEK 80.1 million (63.9), corresponding to an operating margin of 6.0% (4.8). EBIT was negatively affected by currency changes of SEK -1.6 million when translating working capital at the closing date.

435
SEK
milli
on
20
SEK
milli
on
4.5%
--------------------------- -------------------------- ------

NET SALES EBIT OPERATING MARGIN

rt
a
u
FINAN
CIAL SUMMARY (SEK m)
Q3 Jan-Sept 12-month
rolling
Full year
q 2013 2012 2013 2012 Oct 2012-
Sept 2013
2012
Net sales 435.2 385.9 12.8% 1,337.0 1,318.6 1.4% 1,728.9 1,710.5
Earnings before depreciation (EBITDA) 30.3 22.5 7.8 112.4 95.0 17.4 140.5 123.1
D Operating earnings (EBIT) 19.8 12.0 7.8 80.1 63.9 16.2 97.7 81.5
R Operating margin, % 4.5 3.1 1.4 6.0 4.8 1.2 5.7 4.8
I Order bookings 434.8 386.7 12.4% 1,382.1 1,341.8 3.0% 1,710.5 1,670.2

Finnveden Metal Structures manufactures in series components in steel, magnesium and aluminium, or a combination of those materials. The key manufacturing processes are stamping, die-casting and joining. The manufactured components include interior, chassis and body parts for the automotive industry and also customer-specific components for general industry.

Division FINNVEDEN METAL STRUCTURES

Robot welded yoke assy for heavy commercial vehicles. This construction consists of both in-house produced and purchased components. Some parts are surface treated both before and after the joining process, which makes the welding process complex.

  • • Net sales in Q3 increased by SEK 16 million, up 5.9% on the same period last year.
  • • Operating earnings in Q3 were SEK 5 million (0), or SEK 9 million (0) when adjusted for non-recurring items.
  • • Restructuring of the foundry business continues with high intensity, and the initiatives in China will have lower priority for a period of time.

Net sales for the Finnveden Metal Structures division increased by 5.9% in Q3 compared with the same period last year. The general improvement in demand in Q2 continued into Q3.

Due to higher volumes and the rationalisation measures that have been implemented, profitability improved in Q3 compared with the same period last year.

The ongoing restructuring of the foundry operations has highest priority. The relocation of equipment and products in production from Sweden to Poland is planned to be completed around year end and is expected to incur costs of around SEK 40 million, of which SEK 4.2 million has affected earnings during the quarter. The restructuring programme is expected to generate SEK 30-35 million in earnings improvements compared with the outcome in 2012. Full effect is expected from the second half of 2014.

The process of selling the remaining part of the Swedish aluminium business is ongoing, and discussions are being held with several parties. The aim is for the division to develop its multi-material offer connected to magnesium die-casting and sheet metal stamping.

The ongoing restructuring programme continues with high intensity and full focus for the division, which means that the establishment in China will have a lower priority for a period of time.

Third quarter

Order bookings amounted to SEK 267.3 million (224.4), up 19.1% compared with the same period last year when order bookings were relatively low. Net sales reached SEK 280.5 million (264.9), up 5.9% compared with the same period last year, and up 4.9% when adjusted for currency effects.

Earnings before depreciation (EBITDA) reached SEK 14.6 million (8.5), corresponding to an EBITDA margin of 5.2% (3.2). Adjusted for non-recurring items, earnings before depreciation amounted to SEK 18.8 million (8.5), corresponding to an EBITDA margin of 6.7% (3.2).

Operating earnings (EBIT) were SEK 5.0 million (-0.3), corresponding to an operating margin of 1.8% (-0.1). After adjustments for non-recurring items, EBIT was SEK 9.2 million (-0.3), corresponding to an operating margin of 3.3% (-0.1).

January-September

Order bookings amounted to SEK 963.9 million (919.3) up 4.9% compared with the same period last year. Net sales reached SEK 905.9 million (974.9), down 7.1% compared with the same period last year, and down 6.7% when adjusted for currency effects.

Earnings before depreciation (EBITDA) reached SEK 26.9 million (60.4), corresponding to an EBITDA margin of 3.0% (6.2). Adjusted for non-recurring items, earnings before depreciation amounted to SEK 46.7 million (60.4), corresponding to an adjusted EBITDA margin of 5.2% (6.2).

Operating earnings (EBIT) were SEK –13.6 million (34.3), corresponding to an operating margin of –1.5% (3.5). After adjustments for non-recurring items, EBIT was SEK 21.2 million (34.3), corresponding to an operating margin of 2.3% (3.5).

NET SALES EBIT
9
Adj
ust
ed
SeK
milli
on
OPERATING MARGIN
280
Sek
milli
on
Adj
ust
ed
3.3 %
SeK5milli
report
ed
on
report
ed
1.8%
FINAN
CIAL SUMMARY (SEK m)
Q3 Jan-Sept 12-month
rolling
Full year
2013 2012 2013 2012 Oct 2012-
Sept 2013
2012
Net sales 280.5 264.9 5.9% 905.9 974.9 -7.1% 1,192.4 1,261.4
Earnings before depreciation (EBITDA) 14.6 8.5 6.1 26.9 60.4 -33.5 33.5 64.8
Adjusted earnings before depreciation (EBITDA) 18.8 8.5 10.3 46.7 60.4 -13.7 51.1 64.8
Operating earnings (EBIT) 5.0 -0.3 5.3 -13.6 34.3 -47.9 -17.8 30.1
Operating margin, % 1.8 -0.1 1.9 -1.5 3.5 -5.0 -1.5 2.4
Adjusted operating earnings (EBIT) 9.2 -0.3 9.5 21.2 34.3 -13.1 17.0 30.1
Adjusted operating margin, % 3.3 -0.1 3.4 2.3 3.5 -1.2 1.4 2.4
Order bookings 267.3 224.4 19.1% 963.9 919.3 4.9% 1,214.7 1,170.1

Other information

Accounting principles

This interim report has 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 RFR 2 (Reporting for legal entities) of the Swedish Financial Accounting Standards Council.

With effect from Q1 2013 the amendment to accounting rules concerning IAS 19, Employee benefits, has been applied. The changes relate to reporting of defined-benefit pension plans. The new principles affect reporting retroactively, which is why the opening balance for 1 January 2012 has been recalculated and equity has been reduced by SEK 3.3 million. The switch to the new accounting principles has meant that net pension allocations including a special salary tax have risen by SEK 2.1 million as of 31 December 2012. For the full year 2012 earnings improved by SEK 1.5 million (SEK 0.07 per share) and other comprehensive income increased by SEK 0.3 million as a consequence of the new accounting principles. The change did not affect the Group's earnings for the first three quarters of either 2012 or 2013. The accounting principles are otherwise unchanged.

Risks and risk management

Exposure to operational and financial risks are a natural part of business activity and this is reflected in FinnvedenBulten'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 factors.

For a more detailed description of these risks, see Note 3, Risks and risk management, of the company's 2012 annual report.

Verdict of Swedish Administrative Court of Appeal concerning interest deduction

In a verdict dated 11 April 2013, the administrative court of appeal in Stockholm has reversed the review decision of the Swedish Tax Agency and permitted a deduction for interest on a shareholder loan in accordance with the submitted tax forms. The verdict, which is subject an appeal by the Tax Agency at the Supreme Administrative Court, means that FinnvedenBulten AB (publ) may make a further deduction of SEK 197 million, of which SEK 123 million remained unutilised as of 30 September 2013. Following consultation with leading tax experts, the company's management team considers the possibility that the Tax Agency will succeed with its appeal to be low, but it cannot be ruled out. Consequently, a deferred tax asset of SEK 27.1 million has been reported for the second quarter.

Seasonal variations

FinnvedenBulten 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.

Transactions with related parties

No transactions were made with related parties during the reporting period. For further information, see note 39 of the 2012 annual report.

Financial targets

  • • 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.

Employees

The total number of employees in the Group amounted on the closing day to 1,802 (1,828).

Contingent liabilities

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

Parent company

FinnvedenBulten AB (publ) owns, directly or indirectly, all the companies in the Group. The equity/assets ratio was 80.4% (84.0). Equity was SEK 1,183.3 million (1,209.6). Disposable cash and cash equivalents in the parent company totalled SEK 1.0 (2.2) million. The company had 8 employees on the closing day.

Important events after the end of the interim period

There were no significant events to report after the closing date.

Nomination committee

The nomination committee shall, according to the AGM's decision, consist of four members, a representative for each of the three major shareholders as at the last banking day in September who wish to appoint a member to the nomination committee and the Chairman of the Board. The three major shareholders refer to those registered and ownership-grouped by Euroclear Sweden AB as at the last banking day in September.

The nomination committee, for the 2014 Annual General Meeting, has the following composition:

  • • Ulf Rosberg for Nordic Capital Fund V
  • • Karl-Axel Granlund for Volito AB
  • • Fredrik Grevelius for Investment AB Öresund
  • • Roger Holtback, Chairman of the Board of FinnvedenBulten

Göteborg, 24 October 2013 FinnvedenBulten AB (publ)

Johan Westman President and CEO

FinnvedenBulten's footprint

PRODUCTION

  • • Production takes place mainly in Western and Eastern Europe with significant low-cost production in Poland and China.
  • • Lean and well positioned manufacturing facilities in Europe and Asia.

Consolidated income statement

Q3 Jan-Sept 12 months
rolling
Full year
SEK million 2013 2012 2013 2012 Oct 2012-
Sept 2013
2012
Net sales 714.2 649.3 64.9 2,237.9 2,286.8 -48.9 2,914.6 2,963.5
Cost of goods sold -597.4 -557.0 -40.4 -1,870.7 -1,932.9 62.2 -2,454.7 -2,516.9
Gross profit 116.8 92.3 24.5 367.2 353.9 13.3 459.9 446.6
Other operating income 5.9 -5.9 10.3 14.4 -4.1 20.1 24.2
Selling expenses -37.0 -34.8 -2.2 -112.4 -109.4 -3.0 -150.2 -147.2
Administrative expenses -49.9 -48.7 -1.2 -162.8 -160.1 -2.7 -213.7 -211.0
Other operating expenses
Note 1
-5.5 -3.3 -2.2 -37.6 -7.0 -30.6 -39.9 -9.3
Operating earnings 24.4 11.4 13.0 64.7 91.8 -27.1 76.2 103.3
Financial income 1.1 1.1 0.2 2.8 -2.6 2.4 5.0
Financial expenses -4.7 -5.7 1.0 -16.4 -12.0 -4.4 -20.2 -15.8
Earnings before tax 20.8 5.7 15.1 48.5 82.6 -34.1 58.4 92.5
Tax on period's earnings
Note 2
-6.6 -2.6 -4.0 11.0 -24.4 35.4 -13.6 -49.0
Earnings after tax 14.2 3.1 11.1 59.5 58.2 1.3 44.8 43.5
Attributable to
Parent company shareholders 14.2 3.1 11.1 59.5 58.2 1.3 44.8 43.5
Minority interests
14.2 3.1 11.1 59.5 58.2 1.3 44.8 43.5
Non-recurring items in the period
Note1 Cost for restructuring program
Impairment of fixed assets -15.0 -15.0 -15.0
Restructuring program -4.2 -4.2 -19.8 -19.8 -19.8
Total non-recurring items with effect
on operating earning 1)
-4.2 -4.2 -34.8 -34.8 -34.8
Note2 Tax on period's earnings
Tax effect on restructuring cost 0.9 0.9 7.6 7.6 7.6
Deferred tax on additionaltax loss carry forward 27.1 27.1 27.1
One-off effect of deferred taxes due to changed
tax rate in Sweden
-19.1 -19.1
Total one-off effect on tax adjustment with
effect on period's earnings
0.9 0.9 34.7 34.7 15.6 -19.1
Earnings per share , SEK2) 0.68 0.15 0.53 2.83 2.77 0.06 2.13 2.07
Earningsper share,adjustedforone-offeffect,SEK2) 0.83 0.15 0.68 2.83 2.77 0.06 3.04 2.98
Weighted outstanding ordinary shares, 000 2) 21,040.2 21,040.2 21,040.2 21,040.2 21,040.2 21,040.2

1) Non-recurring items of SEK 4,2 million are accounted as Cost of goods sold in Q3 and Jan-Sept 2013. Furthermore, non-recurring items of SEK 30,6 million accounted as Other operating expenses during Jan-Sept 2013 whereof SEK 15,0 million as Impairment of fixed assets. 2) Both before and after dilution.

Consolidated statement of comprehensive income

Q3 Jan-Sept 12 months
rolling
Full year
SEK million 2013 2012 2013 2012 Oct 2012-
Sept 2013
2012
Earnings after tax 14.2 3.1 11.1 59.5 58.2 1.3 44.8 43.5
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gain on post employment benifit
obligations after tax
0.3 0.3
Items that may be reclassified subsequently
to profit or loss
Derivative instruments, cash flow hedging,
net after tax
0.4 1.4 -1.0 -0.9 2.1 -3.0 -4.2 -1.2
Exchange rate differences 1.5 -7.0 8.5 -4.1 -6.4 2.3 2.9 0.6
Total comprehensive income 16.1 -2.5 18.6 54.5 53.9 0.6 43.8 43.2
Attributable to
Parent company shareholders 16.1 -2.5 18.6 54.5 53.9 0.6 43.8 43.2
Minority interests
Total comprehensive income 16.1 -2.5 18.6 54.5 53.9 0.6 43.8 43.2

Consolidated balance sheet

SEK million 30-09-2013 30-09-2012 31-12-2012
ASSETS
Fixed assets
Intangible fixed assets 199.4 181.9 194.2
Tangible fixed assets 391.5 394.9 404.8
Financial assets 142.1 136.8 106.0
Total fixed assets 733.0 713.5 705.0
Current assets
Inventories 478.0 502.9 518.2
Current receivables 662.7 677.5 575.0
Cash and cash equivalents 84.3 44.8 51.8
Total current assets 1,225.0 1,225.2 1,145.0
Total assets 1,958.0 1,938.7 1,850.0
EQUITY AND LIABILITIES
Equity
Equity attributable to parent company shareholders 1,043.0 1,044.6 1,030.6
Minority interests
Total equity 1,043.0 1,044.6 1,030.6
Non-current liabilities
Non-current interest-bearing liabilities and provisions 270.8 271.5 270.2
Non-current non-interest-bearing liabilities and provisions 2.3 4.1 2.2
Total non-current liabilities 273.1 275.6 272.4
Current liabilities
Interest-bearing current liabilities 45.2 26.6 30.5
Current liabilities, non-interest-bearing 596.7 591.9 516.5
Total current liabilities 641.9 618.5 547.0
Total equity and liabilities 1,958.0 1,938.7 1,850.0
Pledged assets 1,419.1 1,385.2 1,382.3
Contingent liabilities 48.0 84.5 83.5

Consolidated statement of changes in equity

SEK million 30-09-2013 30-09-2012 31-12-2012
Opening equity 1,030,6 1,032,8 1,032,8
Effect of change in accounting principles -3.3
Adjusted opening equity 1,030.6 1,032.8 1,029.5
Comprehensive income
Earnings after tax 59.5 58.2 43.5
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gain on post employment benifit obligations after tax 0.3
Items that may be reclassified subsequently to profit or loss
Derivative instruments, cash flow hedging, net after tax -0.9 2.1 -1.2
Exchange rate differences -4.1 -6.4 0.6
Total comprehensive income 54.5 53.9 43.2
Transactions with shareholders
Dividend paid to parent company shareholders -42.1 -42.1 -42.1
Total transactions with shareholders -42.1 -42.1 -42.1
Closing equity 1,043.0 1,044.6 1,030.6

Consolidated cash flow statement

Jan-Sept Full year
SEK million 2013 2012 2012
Operating activities
Earnings after financial items 48.5 82.6 92.5
Adjustments for items not included in cash flow 71.3 28.3 48.2
Taxes paid -19.1 -18.8 -17.7
Cash flow from operating activities before changes in working capital 100.7 92.1 123.0
Cash flow from changes in working capital
Change in working capital 31.9 -63.2 -50.6
Cash flow from operating activities 132.6 28.9 72.4
Investing activities
Acquisition of intangible fixed assets -5.4 -12.5
Acquisition of tangible fixed assets -72.4 -75.3 -100.2
Disposal of tangible fixed assets 42.6 1.5 1.6
Settlement of financial assets 0.7 0.6 0.7
Cash flow from investing activities -34.5 -73.2 -110.4
Financing activities
Change in overdraft facilities and other financial liabilities -23.1 33.3 31.9
Dividend paid to parent company shareholders -42.1 -42.1 -42.1
Cash flow from financing activities -65.2 -8.8 -10.2
Cash flow for the period 32.9 53.1 -48.2
Change in cash and cash equivalents 32.9 -53.1 -48.2
Cash and cash equivalents at start of financial year 51.8 102.7 102.7
Exchange rate difference in cash and cash equivalents -0.4 -4.8 -2.7
Cash and cash equivalents at end of period 84.3 44.8 51.8

Consolidated net debt composition

SEK million 30-09-2013 30-09-2012 31-12-2012
Non-current interest-bearing liabilities 249.7 255.4 249.6
Provisions for pensions 21.1 16.1 20.6
Current interest-bearing liabilities 45.2 26.6 30.5
Financial interest-bearing liabilities -2.6 -2.9 -2.8
Cash and cash equivalents -84.3 -44.8 -51.8
Net debt 229.1 250.4 246.1

Consolidated segment reports

Q3 2013
SEK million Bulten Finnveden
Metal Structures
Other* The Group
Net sales 435.2 280.5 -1.5 714.2
Earnings before depreciation (EBITDA) 30.3 14.6 -0.5 44.4
Adjusted earnings before depreciation (EBITDA) 1) 30.3 18.8 -0.5 48.6
Operating profit (EBIT) 19.8 5.0 -0.4 24.4
Operating margin, % 4.5 1.8 3.4
Adjusted operating margin (EBIT) 1) 19.8 9.2 -0.4 28.6
Adjusted operating margin, % 1) 4.5 3.3 4.0
Q3 2012
SEK million Bulten Finnveden
Metal Structures
Other* The Group
Net sales 385.9 264.9 -1.5 649.3
Earnings before depreciation (EBITDA) 22.5 8.5 -0.4 30.6
Operating profit (EBIT) 12.0 -0.3 -0.3 11.4
Operating margin, % 3.1 -0.1 1.8
Jan - Sept 2013
SEK million Bulten Finnveden
Metal Structures
Other* The Group
Net sales 1,337.0 905.9 -5.0 2,237.9
Earnings before depreciation (EBITDA) 112.4 26.9 -1.8 137.5
Adjusted earnings before depreciation (EBITDA) 2) 112.4 46.7 -1.8 157.3
Operating profit (EBIT) 80.1 -13.6 -1.8 64.7
Operating margin, % 6.0 -1.5 2.9
Adjusted operating margin (EBIT) 3) 80.1 21.2 -1.8 99.5
Adjusted operating margin, % 3) 6.0 2.3 4.4
SEK million Jan - Sept 2012
Bulten Finnveden
Metal Structures
Other* The Group
Net sales 1,318.6 974.9 -6.7 2,286.8
Earnings before depreciation (EBITDA) 95.0 60.4 -6.5 148.9
Operating profit (EBIT) 63.9 34.3 -6.4 91.8
Operating margin, % 4.8 3.5 4.0

* Other includes parent company and Group eliminations.

1) Adjustment relates to restructuring cost within division Finnveden Metal Structures of SEK -4.2 million during Q3.

2) Adjustment relates to restructuring cost within division Finnveden Metal Structures of SEK -19.8 million during 2013.

3) Adjustment relates to restructuring cost including impairment of fixed assets within division Finnveden Metal Structures of SEK -34.8 million under 2013.

Income statement, parent company

Q3 Jan-Sept Full year
SEK million 2013 2012 2013 2012 2012
Net sales 6.7 5.8 20.1 17.5 24.7
Cost of goods sold
Gross profit 6.7 5.8 20.1 17.5 24.7
Administrative expenses -6.6 -6.5 -22.9 -25.3 -33.4
Operating earnings 0.1 -0.7 -2.8 -7.8 -8.7
Interest expenses and similar items -2.7 -2.5 -7.8 -6.7 -9.1
Earnings before tax -2.6 -3.2 -10.6 -14.5 -17.8
Tax on earnings for the year 1) 2) 0.5 0.8 29.3 3.7 -5.1
Earnings after tax -2.1 -2.4 18.7 -10.8 -22.9

1) Deferred tax revenue from additional tax losses of SEK 27.1 million was reported in the period January - September 2013. 2) For the whole year 2012 a one-off effect due to changed tax rate in Sweden is included with SEK million -9.6.

Balance sheet, parent company

SEK million 30-09-2013 30-09-2012 31-12-2012
ASSETS
Fixed assets
Tangible fixed assets
Equipment 0.2 0.2 0.2
Total tangible fixed assets 0.2 0.2 0.2
Financial fixed assets
Participations in Group companies 1,382.5 1,367.1 1,381.3
Deferred tax assets 78.2 60.9 48.9
Other non-current receivables 5.3 5.7 5.6
Total financial fixed assets 1,466.0 1,433.7 1,435.8
Total fixed assets 1,466.2 1,433.9 1,436.0
Current assets
Current receivables 5.5 3.7 21.5
Cash and cash equivalents 1.0 2.2 6.0
Total current assets 6.5 5.9 27.5
Total assets 1,472.6 1,439.8 1,463.5
EQUITY AND LIABILITIES
Equity 1,183.3 1,209.6 1,206.6
Non-current liabilities
Liabilities to Group companies 278.0 220.4 245.7
Total non-current liabilities 278.0 220.4 245.7
Current liabilities
Other current liabilities 11.3 9.8 11.2
Total current liabilities 11.3 9.8 11.2
Total equity and liabilities 1,472.6 1,439.8 1,463.5
Pledged assets 1,386.9 1,371.5 1,385.7
Contingent liabilities 13.1 48.5 49.0

Review report

Introduction

We have reviewed this report for the period 1 January 2013 to 30 September 2013 for FinnvedenBulten AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Göteborg, 24 October 2013 PricewaterhouseCoopers AB

Fredrik Göransson Authorized Public Accountant

Consolidated key indicators

Q3 Jan-Sept Full year
THE GROUP 2013 2012 2013 2012 2012
Margins
EBITDA margin, % 6.2 4.7 6.1 6.5 6.1
Adjusted EBITDA margin, % 6.8 4.7 7.0 6.5 6.1
EBIT margin (operating margin), % 3.4 1.8 2.9 4.0 3.5
Adjusted EBIT margin (operating margin), % 4.0 1.8 4.4 4.0 3.5
Net margin, % 2.0 0.5 2.7 2.5 1.5
Adjusted net margin, % 2.5 0.5 2.7 2.5 2.1
Capital structure
Interest coverage ratio, times 5.5 2.0 4.0 7.9 6.9
Data per share
Earnings per share, SEK *) 0.68 0.15 2.83 2.77 2.07
Earningspershare,adjustedforone-offeffects,SEK*) 1) 0.83 0.15 2.83 2.77 2.98
Number of outstanding ordinary shares
Weighted outstanding ordinary shares, 000 *) 21,040.2 21,040.2 21,040.2 21,040.2 21,040.2
THE GROUP 30-09-2013 30-09-2012 31-12-2012
Capital structure
Net debt/equity ratio, times 0.2 0.2 0.2
Equity/assets ratio, % 53.3 53.9 55.7
Other
Net debt, SEK m 229.1 250.4 246.1
12 months rolling Full year
Oct 2012- Oct 2011-
THE GROUP, 12 months rolling Sept 2013 Sept 2012 2012
Return indicators
Return on capital employed, % 5.8 10.4 8.2
Adjusted return on capital employed, % 5) 8.3 10.5 8.2
Return on equity, % 4.3 8.5 4.2
Adjusted return on equity, % 2) 6.1 8.5 6.1
Capital structure
Capital turnover, times 2.2 2.3 2.3
Employees
Net sales per employee, SEK '000 1,617.4 1,690.2 1,637.3
Operating profit/loss per employee, SEK '000 42.3 73.9 57.1
Average no. of employees on closing date 1,802 1,828 1,810

*) Refers to both before and after dilution.

Definitions

Definitions of key indicators are unchanged compared with those used in the 2012 annual report. Other indicators not used in the annual report are explained below.

1) Earnings per share adjusted for non-recurring items: Net earnings adjusted for non-recurring items divided by the number of weighted outstanding ordinary shares on the closing day. Current and deferred tax is considered for all adjusted items.

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

3) Net debt/Adjusted EBITDA: Net debt divided with Earnings before depreciation (EBITDA) adjusted with non recurring items.

4) Adjusted operating earnings: Operating earnings adjusted for non-recurring costs.

5) Adjusted return on capital employed. Earnings after financial items plus financial costs and non-recurring costs as a percentage of average capital employed.

6) Adjusted earnings before depreciation (EBITDA): Earnings before depreciation (EBITDA) adjusted with non-recurring items.

Consolidated quarterly data

Q3
698.3
Q2
829.6
Q1 Q4 Q3 Q2 Q1 Q4 Q3
812.5 577.8 609.7 780.7 864.7 780.1 736.0
714.2 814.3 709.4 676.7 649.3 830.4 807.1 802.9 703.9
116.8 140.7 109.7 92.7 92.3 128.7 132.9 139.2 116.3
44.4 54.5 38.6 30.9 30.6 59.3 59.0 61.8 60.6
48.6 70.1 38.6 30.9 30.6 59.3 59.0 61.8 60.6
24.4 20.8 19.5 11.5 11.4 40.2 40.2 43.4 43.1
28.6 51.4 19.5 11.5 11.4 40.2 40.2 43.5 43.3
19.0 59.8 53.8 43.5 -83.7 62.5 50.1 97.4 -42.7
15.2 -22.2 -27.5 -37.2 -28.7 -21.6 -22.9 -17.0 -30.7
-17.3 -44.0 -3.9 -1.4 39.2 -43.8 -4.2 -24.9 -96.6
16.9 -6.4 22.4 4.9 -73.2 -2.9 23.0 55.5 -170.0
0.68 1.87 0.28 -0.70 0.15 1.20 1.42 1.40 1.06
0.83 1.72 0.28 0.21 0.15 1.20 1.42 1.40 1.06
21,040.2 21,040.2 21,040.2 21,040.2 21,040.2 21,040.2 21,040.2
21,040.2 21,040.2
THE GROUP 30-09-2013 30-06-2013 31-03-2013 31-12-2012 30-09-2012 30-06-2012 31-03-2012 31-12-2011 30-09-2011
Balance sheet
Fixed assets 733.0 732.1 708.0 705.0 713.5 701.1 702.8 692.7 713.7
Current assets 1,225.0 1,227.7 1,194.4 1,145.0 1,225.2 1,272.9 1,267.2 1,208.1 1,183.0
Equity 1,043.0 1,026.9 1,018.3 1,030.6 1,044.6 1,047.1 1,067.6 1,032.8 1,008.7
Non-current liabilities 273.1 252.2 274.8 272.4 275.6 243.5 246.2 243.4 268.5
Current liabilities 641.9 680.7 609.3 547.0 618.5 683.4 656.2 624.6 619.5
Other
Net debt 229.1 222.1 227.4 246.1 250.4 132.8 135.6 161.6 238.5
GROUP, 12 months rolling October
2012-
September
2013
July
2012-
June
2013
April
2012-
March
2013
January
2012-
December
2012
October
2011-
September
2012
July
2011-
June
2012
April
2011-
March
2012
January
2011-
December
2011
October
2010-
September
2011
Order bookings 2,918.2 2,829.6 2,780.7 2,832.9 3,035.2 3,161.5 3,235.2 3,208.9 3,214.0
Income statement
Net sales 2,914.6 2,849.7 2,865.8 2,963.5 3,089.7 3,144.3 3,096.0 3,085.0 3,012.4
Gross earnings 459.9 435.4 423.4 446.6 493.1 517.0 539.2 558.9 549.6
Earnings before depreciation (EBITDA) 168.4 154.6 159.4 179.8 210.7 240.7 260.7 273.2 268.8
Adjusted earnings before depreciation (EBITDA) 6) 188.2 170.2 159.4 179.8 210.7 240.7 260.7 273.2 268.8
Operating earnings (EBIT) 76.2 63.2 82.6 103.3 135.2 166.9 188.0 201.5 199.8
Adjusted operating earnings (EBIT) 4) 111.0 93.8 82.6 103.3 135.3 167.2 193.7 219.7 218.6
Employees
Net sales per employee, SEK '000 1,617.4 1,580.5 1,591.2 1,637.3 1,690.2 1,707.0 1,718.1 1,766.9 1,682.9
Operating profit/loss per employee, SEK '000 42.3 35.1 45.9 57.1 73.9 90.6 104.3 115.4 111.6
Average no. of employees on closing date 1,802 1,803 1,801 1,810 1,828 1,842 1,802 1,746 1,790
Return indicators
Capital employed, % 5.8 4.9 6.2 8.2 10.4 12.8 14.6 15.4 16.5
Adjusted return on capital employed, %5) 8.3 7.2 6.2 8.2 10.5 12.8 15.0 16.8 18.0
Equity, % 4.3 3.2 1.9 4.2 8.5 10.5 12.2 15.1 39.2
Adjusted return on equity,% 2) 6.1 4.8 3.7 6.1 8.5 10.5 12.2 15.1 39.2
Other
Net debt/EBITDA 1.4 1.4 1.4 1.4 1.2 0.6 0.5 0.6 0.9
Net debt/ Adjusted EBITDA 3) 1.2 1.3 1.4 1.4 1.2 0.6 0.5 0.6 0.9

*) Refers to both before and after dilution.

FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions — Bulten and Finnveden Metal Structures — both with strong positions in their respective customer segments. Customers are mainly found in the automotive and engineering industries in Europe, Asia and the US. Production takes place Sweden, Germany, Poland and China with ongoing establishment in Russia.

Future financial report dates

6 February 2014 | Full year report January - December 2013 29 April 2014 | Interim report January - March 2014 29 April 2014 | Annual General Meeting 2014

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

For further information, please contact Kamilla Oresvärd, Vice President Corporate Communications. Tel. +46 31-734 59 17, Switchboard: +46 31-734 59 00, e-mail: [email protected]

Invitation to conference call

Investors, analysts and media are invited to participate in the teleconference on Thursday, October 24 at 15:30 CET when the report will be presented by FinnvedenBulten's President and CEO Johan Westman. Additional participants from the company are Executive Vice President Tommy Andersson and CFO Helena Wennerström.

To participate, please call 5 minutes before the opening of the conference call to Sweden +46 8 506 443 86, UK +44 207 153 9154, US +1 877 423 0830. Code: 936391#.

A replay of the telephone conference is available until November 7, 2013 on the phone numbers Sweden +46 8-505 564 73, UK +44 203 364 5200, USA +1 877 679 2989. Code: 348828#.

HEAD OFFICE

FinnvedenBulten AB (publ)

Box 9148 400 93 Göteborg SWEDEN Visiting address: August Barks Gata 6 B Tel +46 31-734 59 00 Fax +46 31-734 59 09 www.finnvedenbulten.com

DIVISIONS

Bulten Box 9148 400 93 Göteborg SWEDEN Visiting address: August Barks Gata 6 B Tel +46 31-734 59 00 Fax +46 31-734 59 39

Finnveden Metal Structures Box 9148 400 93 Göteborg SWEDEN Visiting address: August Barks Gata 6 B Tel +46 31-734 59 00 Fax +46 31-734 59 59