Bulten — Interim / Quarterly Report 2017

Jul 12, 2017

Q2

HALF YEAR REPORT

Strong order intake and new significant contracts signed

second quarter

• • Net sales reached SEK 708 million (686), an increase of 3.0% on the same period last year.
• • Operating earnings (EBIT) were SEK 57 million (54), which corresponds to an operating margin of 7.9% (7.8).
• • Earnings after tax were SEK 39 million (39).
• • Order bookings amounted to SEK 765 million (672), an increase of 13.9% on the same period last year.
• • Cash flow from operating activities was SEK 37 million (95).
• • Earnings per share were SEK 2.01 (1.92).

january–june

• • Net sales reached SEK 1,486 million (1,402), an increase of 6.0% on the same period last year.
• • Operating earnings (EBIT) were SEK 120 million (109), which corresponds to an operating margin of 8.0% (7.8).
• • Earnings after tax were SEK 90 million (79).
• • Order bookings amounted to SEK 1,485 million (1,370), an increase of 8.3% on the same period last year.
• • Cash flow from operating activities was SEK 35 million (173).
• • Earnings per share were SEK 4.60 (3.95).
• • Net cash was SEK 3 million (-89) and the equity/assets ratio at the end of the period was 69.4% (67.1).

significant events after the end of the reporting period

• • Bulten's joint venture, Ram-Bul, has signed a contract worth approximately USD 5.5 million per year at full volumes which is expected in 2019/2020. The estimated delivery value is distributed USD 5 million for Bulten and USD 0.5 million for Ramco.
• • Bulten has signed an FSP contract worth around EUR 30 million per year at full volumes which is expected in 2020.

ceo's comments

"It is very pleasing that after the end of the quarter Bulten signed both a new extensive FSP contract and a strategically important contract in the US. During Q2, net sales increased by 3.0%. The growth during the quarter has been affected by fewer production days compared with the corresponding quarter last year and by somewhat lower volumes due to model changes. The development indicates strong underlying demand in the automotive industry combined with Bulten's strong position on this market, which is confirmed by a strong order intake during the quarter. Earnings and profitability continued to have a positive development and the return on capital employed rose to 15%. Bulten's financial position is strong and during the quarter all our financial targets were reached and we are therefore well equipped for a phase of growth and investments in production and logistics.

In May, we received further evidence of our customers' appreciation when our joint venture, BBB Services Ltd, was awarded Ford Motor Company's prestigious Special Recognition World Excellence Award.

The development of electric vehicles requires that fasteners be adapted for new material choices and design solutions and Bulten is at the forefront of providing vehicle manufacturers with the latest technology. During the quarter, deliveries to pre-series to the next generation of electrical vehicles have started."

BULTEN IN SUMMARY

development during the quarter

Development in Q2 continued to be positive with a 3.0% increase in net sales and a 13.9% increase in order bookings for the first quarter compared with the same period last year. This is a good growth considering that there were fewer production days compared with the previous year and volumes were lower due to model changes. This performance indicates strong underlying demand in the automotive industry in combination with Bulten's strong position on this market.

Earnings and profitability continued to have a positive development with an operating margin of 7.9%, which is a sign of good cost control and flexibility in production among others. Return on capital employed climbed to 15.0% (17.4% excluding goodwill), which can be compared with the target of at least 15%. Bulten has a strong financial position and reached all its financial targets during the quarter and is thus well prepared for a phase of growth with investments in production and logistics.

The establishment in USA is making progress and during the quarter internal preparations continued for deliveries to existing customers. After the end of the quarter, Bulten's joint venture, Ram-Bul, signed a contract with an annual value of approximately USD 5.5 million at full volumes. The estimated delivery value is distributed USD 5.0 million for Bulten and USD 0.5 million for Ramco*. Further dialogue with customers is taking place and the total annual business potential for Bulten is estimated at around USD 30-40 million at full volumes in 2020, as previously announced.

After the end of Q2 Bulten has also signed a significant new FSP contract with an existing customer with an annual value of approximately EUR 30 million at full volumes*.

In May, Bulten received further proof of customer appreciation. Bulten's joint venture, BBB Services Ltd, was awarded Ford Motor Company's prestigious Special Recognition World Excellence Award, a recognition for partners who surpass expectations and achieve the highest levels in terms of quality, costs, performance and delivery.

The development of electric vehicles requires fasteners that are adapted for new materials and new design solutions. Bulten continues to develop fasteners for electric cars and deliveries to pre-series of next generation electric vehicles have now started. For these specific deliveries, this entail a considerably higher delivery value per car compared to an equivalent model with a combustion engine, up to approximately 40%. This is due to the fact that the number of fasteners increase, mainly in the body, depending on material selection and design. The volumes still remain very low.

* See 'Significant events after the end of the reporting period'.

market and outlook for 2017

Of Bulten's net sales, around 87% is attributable to light vehicles and around 13% to commercial vehicles. Of total net sales, 89% are direct deliveries to vehicle producers (OEMs) and the remainder to their sub-suppliers and to other sectors.

During the first five months of 2017 car sales in Europe (EU and EFTA) increased by 5.3% compared with the same period in 2016 according to ACEA's statistics.

According to LMC Automotive's latest forecast from Q2 2017, production of light vehicles is expected to increase by 1.8% and production of heavy commercial vehicles by 4.0% in 2017. Weighted for Bulten's exposure, this means a rise of around 2.1% for the same period.

Distribution of Bulten's products is primarily to Europe, although demand is affected by production of vehicles for the global market. Bulten's management team considers that the underlying demand for light vehicles in Europe remains good, as does demand for vehicles for export from Europe to global markets. Ongoing model changes by customers may contribute to volatility in demand.

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).

2017 has started strongly with new contracts and good order intake and Bulten's prospects for gaining market shares are good. Establishing in North America broadens Bulten's market and creates further opportunities for growth among both new and existing companies.

order bookings and net sales Q2

Order bookings were SEK 765 million (672), an increase of 13.9% compared with the corresponding period in the previous year.

Net sales for the Group totaled SEK 708 million (686), an increase of 3.0% compared with the corresponding period in the previous year. Adjusted for currency effects, organic growth was -1.3% in the same period.

January – June

Order bookings were SEK 1,485 million (1,370), an increase of 8.3% compared with the corresponding period in the previous year.

Net sales for the Group totalled SEK 1,486 million (1,402), an increase of 6.0% compared with the corresponding period in the previous year. Adjusted for currency effects, organic growth was 2.9% compared with corresponding period in the previous year.

earnings and profitability

Q2

The Group's gross earnings were SEK 141 million (138), corresponding to a gross margin of 20.0% (20.1). Earnings before depreciation (EBITDA) were SEK 76 million (71), corresponding to an EBITDA margin of 10.8% (10.3). Operating earnings (EBIT) were SEK 57 million (54), corresponding to an EBIT margin of 7.9% (7.8).

The increased world market prices for steel and other metals have had a negative impact on profitability of approximately 4 MSEK after consideration of raw material price compensation.

Sales have been affected by fewer production days and lower volumes due to model changes.

Operating earnings were affected positvely by currency changes amounting net to SEK 0 million (1) when converting working capital on the closing date. Further more the operating earnings were also effected positively by SEK 4 million from a previous impairment receivable.

Net financial items in the Group were SEK -5 million (-1). Financial income of SEK – million (1). Previous year comprised exchange rate gains of SEK 1 million. Financial costs of SEK -5 million (-2) comprised interest costs of SEK -1 million (-1), exchange rate loss of SEK -3 million (–) and other finacial cost of SEK -1 million (-1).

The Group's earnings before tax were SEK 52 million (52) and earnings after tax were SEK 39 million (39).

January – June

The Group's gross earnings were SEK 294 million (274), corresponding to a gross margin of 19.8% (19.6). Earnings before depreciation (EBITDA) were SEK 159 million (143), corresponding to an EBITDA margin of 10.7% (10.2). Earnings (EBIT) were SEK 120 million (109), corresponding to an operating margin of 8.0% (7.8).

The increased world market prices for steel and other metals have had a negative impact on profitability of approximately 8 MSEK after consideration of raw material price compensation.

Operating earnings were affected negatively by currency changes amounting net to SEK -1 million (4) when converting operating capital on the closing date. Further more the operating earnings were also effected positively by SEK 4 million from a previous impairment receivable.

Net financial items in the Group were SEK -1 million (-2). Financial income was SEK 2 million (2) of which currency gain amounted to SEK 2 million (2). Financial costs were SEK -3 million (-4), of which interest costs were SEK -2 million (-3) and other financial costs were SEK -1 million (-1).

The Group's earnings before tax were SEK 119 million (106) and earnings after tax were SEK 90 million (79).

cash flow, working capital, investments and financial position Q2

Cash flow from operating activities totaled SEK 37 million (95). Cash flow effects of changes in working capital amounted to SEK -33 million (29). The working capital is driven by the positive volume trend and the change in financial fixed assets that have been replaced by working capital financing. Inventories changed in the period by SEK 6 million (-1), while current receivables

decreased by SEK -9 million (-19). Current liabilities changed by SEK -25 million (5).

Cash flow from investing activities was SEK 2 million (-6). Investments of SEK 30 million (7) relate to tangible assets. The change in financial fixed assets was SEK 33 million (1). During the quarter, around SEK 33 million of loans to the joint venture, BBB Services Ltd were replaced with working capital financing. The change meant that the Group's cash flow from operating activities has been negatively affected by SEK 33 million and the Group's cash flow from investing activities was affected positively by a corresponding amount.

January – June

Cash flow from operating activities totalled SEK 35 million (173). Cash flow effects of changes in working capital amounted to SEK -114 million (39). Inventories decreased in the period by SEK -24 million (-53), while current receivables increased by SEK 116 million (15). Current liabilities changed by SEK -17 million (1).

Cash flow from investing activities was SEK 28 million (-22). Investments of SEK 37 million (22) relate to tangible assets. The corresponding figure for intangible assets was SEK 1 million (0). Divestment of fixed assets amounted to SEK -0 million (-0).

During the year, around SEK 67 million of loans to the joint venture, BBB Services Ltd were replaced with working capital financing. The change meant that the Group's cash flow from operating activities has been negatively affected by SEK 67 million and the Group's cash flow from investing activities was affected positively by a corresponding amount.

At the end of the period net cash was SEK 3 million, of which cash and cash equivalents were SEK 81 million. In the previous year, net debt was SEK -89 million, of which cash and cash equivalents were SEK 49 million. Adjusted for financial leasing, net cash was SEK 40 million. Last year, adjusted net debt was SEK -53 million.

NET SALES	operati ng Ear nings
708	57
sek	sek
million	million

OPERATING MARGIN

Q2

FINANCIAL SUMMARY	Q2			Jan - June			12-month rolli ng	Full year
sek millio n	2017	2016		2017	2016		July 2016 – June 2017	2016
Net sales	708	686	3.0%	1,486	1,402	6.0%	2,760	2,676	3.2%
Gross profit	141	138	3	294	274	20	551	531	20
Earnings before depreciation (EBITDA)	76	71	5	159	143	16	287	271	16
Operating earnings (EBIT)	57	54	3	120	109	11	211	200	11
Operating margin, %	7.9	7.8	0.1	8.0	7.8	0.2	7.6	7.5	0.1
Earnings after tax	39	39	–	90	79	11	157	146	11
Order bookings	765	672	13.9%	1,485	1,370	8.3%	2,831	2,717	4.2%
Return on capital employed, %	–	–	–	–	–	–	15.0	13.9	1.1
Return on capital employed excluding goodwill, %	–	–	–	–	–	–	17.4	16.2	1.2

OTHER INFORMATION

accounting principles

This half year report has been prepared for the Group 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 2016 annual report.

All amounts are in SEK million unless otherwise stated. Amounts in brackets show figures for last year. Some figures are rounded up, which is why total amounts might not always add up.

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.

For a more detailed description of these risks, see Note 3, Risks and risk management, of the company's 2016 annual report.

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 2016 annual report.

employees

The total number of employees in the Group amounted on the closing day to 1,287 (1,247).

contingent liabilities

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

parent company

Bulten AB (publ) owns, directly or indirectly, all the companies in the Group. The equity/assets ratio was 74.1% (66.2). Equity was SEK 1,053 million (1,026). The parent company had no cash and cash equivalents on the closing day. The company had 9 employees on the closing day.

significant events after the end of the reporting period

Bulten's joint venture, Ram-Bul, has signed a new contract worth around USD 5.5 million per year at full volumes. The estimated delivery value is distributed USD 5.0 million for Bulten and USD 0.5 million for Ramco. Deliveries are expected to start in Q3 2018 and then successively increase up to full capacity in 2019/2020.

Bulten has signed an FSP contract with an existing customer, a significant vehicle manufacturer. The contract is worth around EUR 30 million per year. Deliveries are expected to start at the end of 2018 and then successively increase up to full capacity in 2020.

Deliveries for both the above contracts will take place over a number of years relating to the life length of the vehicles, which is normally five to ten years. Volumes will follow the life length and volume curve of the vehicles with a successive downscaling as the model reaches the end of its life.

auditor's verification

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

The Board of Directors and the CEO certify that the report provides a fair overview of the Group's operations, position and results and describes significant risks and uncertainty factors that the parent company and the Group face.

Göteborg, Sweden 12 July 2017 Bulten AB (publ)

Ulf Liljedahl Ann-Sofi Danielsson Hans Gustavsson

Chairman of the board Board member Board member

Board member Board member Board member

Hans Peter Havdal Peter Karlsten Anne-Lie Lind

Gustav Lindner Johan Larsson Board member Employee representative

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 specialist, customized 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 around 1,300 employees in nine countries and has its head office in Göteborg, Sweden. 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 average.
• • The Group's target is to achieve an operating margin of at least seven (7) percent.
• • The Group's target is to achieve a return on average capital employed of at least fifteen (15) percent.
• • Bulten'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, USA, Russia and China. The prospects for Bulten to continue to grow organic on the global automotive market are 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 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 cost-effective solutions to OEMs.

Shareholder information

		Q2			Jan-JUNe		12-month rolling	Full YEAR
pri ce-relate d share data	2017	2016		2017	2016		July 2016 – JUNe 2017	2016
Share price at period-end (final pay price), SEK	120.00	81.75	38.25	120.00	81.75	38.25	120.00	89.00
Highest share price during period (final pay price), SEK	135.50	86.00	49.50	135.50	86.00	49.50	135.50	99.75
Lowest share price during period (final pay price),SEK	110.00	72.50	37.50	89.00	67.75	21.25	78.25	67.75
Market value at period end, MSEK	2,525	1,664	861	2,525	1,664	861	2,525	1,873
P/E	–	–	–	–	–	–	15.14	12.23
Dividend yield, %	–	–	–	–	–	–	–	5.06
Data per share
Earnings before depreciation (EBITDA)	3.74	3.46	0.28	7.80	7.00	0.80	14.12	13.32
Operating earnings (EBIT)	2.76	2.63	0.13	5.87	5.35	0.52	10.35	9.83
Earnings after net financial items (EAFI)	2.53	2.57	-0.04	5.83	5.24	0.59	10.22	9.63
Earnings for the period	2.01	1.92	0.09	4.60	3.95	0.65	7.93	7.27
Shareholders equity	–	–	–	66.64	61.63	5.01	–	65.96
Cash flow from the operating activities	1.85	4.67	-2.82	1.73	8.50	-6.77	–	17.23
Cash flow for the period	-2.06	-2.27	0.21	-1.38	0.37	-1.75	–	3.27
Dividend	–	–	–	–	–	–	–	4.50
Total outstanding ordinary shares, 000s
Weighted total during the period	20,359.7	20,359.7	–	20,359.7	20,359.7	–	20,359.7	20,359.7
At period end	–	–	–	20,359.7	20,359.7	–	20,359.7	20,359.7

Source: Cision register, 30 June 2017

bulten's TEN largest shareholders

sharehol der	noof shares	hol ding, %
Volito AB	4,450,000	21.2
Lannebo fonder	2,712,098	12.9
Investment AB Öresund	2,263,535	10.8
Spiltan Fonder AB	967,312	4.6
JP Morgan	749,600	3.6
Bulten AB	680,500	3.2
Skandinaviska Enskilda Banken S.A	471,834	2.2
Sjöbergstiftelsen	400,000	1.9
CBNY-DFA-INTSMLCAPV	334,579	1.6
Clients Accounts-DCS	309,849	1.5

Total number of shareholders: 7,171

Source: Euroclear Sweden AB´s register, 30 June 2017

information about this interim report

Bulten aims to operate a sustainable business and strives to identify areas where we can reduce our environmental impact. As from Q2 2016 Bulten no longer print the interim reports.

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

SEK millio n Net sales Cost of goods sold Gross profit Other operating income		Q2			jan-JUNE		12-month ­rolli ng	Full YEAR
	2017	2016		2017	2016		July 2016 – JUNE 2017	2016
	708	686	22	1,486	1,402	84	2,760	2,676
	-567	-548	-19	-1,192	-1,128	-64	-2,209	-2,145
	141	138	3	294	274	20	551	531
	9	8	1	13	16	-3	23	26
Selling expenses	-49	-46	-3	-97	-93	-4	-192	-188
Administrative expenses	-45	-42	-3	-90	-83	-7	-172	-165
Other operating expenses	–	-1	1	-2	-1	-1	-2	1
Share of result ofJoint Venture	1	-2	3	2	-4	6	3	-3
Operating earnings	57	54	3	120	109	11	211	200
Financial income	–	1	-1	2	2	–	3	3
Financial expenses	-5	-3	-2	-3	-5	2	-6	-7
Earnings before tax	52	52	–	119	106	13	209	196
Tax on period's earnings	-13	-13	–	-29	-27	-2	-52	-50
Earnings after tax	39	39	–	90	79	11	157	146
Attributable to
Parent company shareholders	41	39	2	93	80	13	161	148
Minority interests	-2	-0	-2	-3	-1	-2	-4	-2
Earnings after tax	39	39	–	90	79	11	157	146
Earnings per share attributable to parent company shareholders
Earnings per share, SEK 1)	2.01	1.92	0.09	4.60	3.95	0.62	7.93	7.27
Weighted outstanding ordinary shares, 000 1)	20,359.7	20,359.7	–	20,359.7	20,359.7	–	20,359.7	20,359.7

1) Both before and after dilution.

Consolidated statement of comprehensive income

	Q2			jan-JUNE			12-month­rolling	Full YEAR
SEK millio n	2017	2016		2017	2016		July 2016 – JUNE 2017	2016
Earnings after tax	39	39	–	90	79	11	157	146
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluationofdefinedbenifitpensionplan, net aftertax	–	–	–	–	–	–	1	1
Items thatmaybereclassifiedsubsequently toprofitorloss
Exchange rate differences	-1	11	-12	11	9	2	31	29
Total comprehensive income	38	50	-12	101	88	13	189	176
Attributable to
Parent company shareholders	41	49	-8	104	87	17	191	174
Minority interests	-3	1	-4	-3	1	-4	-2	2
Total comprehensive income	38	50	-12	101	88	13	189	176

Consolidated balance sheet

SEK millio n	30-06-2017	30-06-2016	31-12-2016
ASSETS
Fixed assets
Intangible fixed assets1)	206	203	206
Tangible fixed assets	578	542	570
Financial assets	5	59	61
Deferred tax receivables	19	48	35
Total fixed assets	808	852	872
Current assets
Inventories	425	419	450
Current receivables	655	569	538
Cash and cash equivalents	81	49	109
Total current assets	1,161	1,037	1,097
Total assets	1,969	1,889	1,969
EQUITY AND LIABILITIES
Equity
Equity attributable to parent company shareholders	1,357	1,255	1,343
Minority interests	10	12	14
Total equity	1,367	1,267	1,357
Non-current liabilities
Non-current interest-bearing liabilities and provisions	80	90	78
Total non-current liabilities	80	90	78
Current liabilities
Current liabilities, interest-bearing	3	53	5
Current liabilities, non-interest-bearing	519	479	529
Total current liabilities	522	532	534
Total equity and liabilities	1,969	1,889	1,969

1) Whereof goodwill SEK 203 million (201) (204).

Consolidated statement of changes in equity

		jan-JUNE
SEK millio n	30-06-2017	30-06-2016	31-12-2016
Opening equity	1,357	1,245	1,245
Comprehensive income
Earnings after tax	90	79	146
Other comprehensive income	11	9	30
Total comprehensive income	101	88	176
Transactions with shareholders
Share-based payment to employees	1	–	2
Dividend paid to parent company shareholders	-92	-66	-66
Total transactions with shareholders	-91	-66	-64
Closing equity	1,367	1,267	1,357

Consolidated cash flow statement

		Q2	jan-JUNE	Full year
SEKmillio n	2017	2016	2017	2016	2016
Operating activities
Earnings after financial items	52	52	119	107	196
Adjustments for items not included in cash flow	23	20	42	38	72
Tax paid	-5	-6	-12	-11	-21
Cash flow from operating activities before changes in working capital	70	66	149	134	247
Cash flow from changes in working capital
Change in working capital	-33	29	-114	39	104
Cash flow from operating activities	37	95	35	173	351
Investing activities
Acquisition of intangible fixed assets	-1	-0	-1	-0	-1
Acquisition of tangible fixed assets	-30	-7	-37	-22	-82
Disposal of tangible fixed assets	0	0	0	0	0
Change of financial assets	33	1	66	–	–
Cash flow from investing activities	2	-6	28	-22	-82
Financing activities
Change in overdraft facilities and other financial liabilities	10	-69	0	-77	-136
Dividend paid to parent company shareholders	-92	-66	-92	-66	-66
Cash flow from financing activities	-82	-135	-92	-143	-202
Cash flow for the period	-43	-46	-29	7	67
Change in cash and cash equivalents	-43	-46	-29	7	67
Cash and cash equivalents at start of financial year	122	94	109	40	40
Exchange rate difference in cash and cash equivalents	2	1	1	1	2
Cash and cash equivalents at end of period	81	49	81	49	109

Consolidated net cash/NEt debt

SEK millio n	30-06-2017	30-06-2016	31-12-2016
Non-current interest-bearing liabilities	-63	-70	-60
Provisions for pensions	-17	-20	-18
Current interest-bearing liabilities	-3	-53	-5
Financial interest-bearing liabilities	5	5	5
Cash and cash equivalents	81	49	109
Net cash(+)/net debt(-)	3	-89	30
Adjusted for interest bearing liabilities related to financial lease agreements	37	36	38
Adjusted net cash(+)/net debt(-)	40	-53	68

Consolidated key indicators

THE GROUP Margins EBITDA margin, % EBIT margin (operating margin), % Net margin, % Capital structure Interest coverage ratio, times Data per share attributable to parent company shareholders		q2		jan-JUNE	12-month­rolling	Full year
	2017	2016	2017	2016	JuLY 2016 – JUNE 2017	2016
	10.8	10.3	10.7	10.2	10.4	10.1
	7.9	7.8	8.0	7.8	7.6	7.5
	5.5	5.7	6.1	5.7	5.7	5.5
	30.7	26.2	40.4	28.4	37.2	30.6
Earnings per share, SEK *)	2.01	1.92	4.60	3.95	7.93	7.27
Number of outstanding ordinary shares
Weighted outstanding ordinary shares, 000 *)	20.359,7	20.359,7	20.359.7	20.359.7	20.359,7	20.359.7

THE GROUP		30-06-2017 30-06-2016	31-12-2016
Capital structure
Net debt/equity ratio, times	0.0	-0.1	0.0
Equity/assets ratio, %	69.4	67.1	68.9
Other
Net cash(+)/net debt(-), SEK m	3	-89	30
Adjusted net cash(+)/net debt(-), SEK m	40	-53	68
Equity per share attributable to parent company shareholders
Equity per share, SEK*)	66.64	61.63	65.96
Number of outstanding ordinary shares
Number of outstanding ordinary shares at period end, 000 *)	20,359.7	20,359.7	20,359.7
	12-month rolli	ng	Full year
	JuLY 2016 –	JULY 2015 –

THE GROUP, 12 months rolli ng	JUNE 2017	JUNE 2016	2016
Return indicators
Return on capital employed, %	15.0	13.4	13.9
Adjusted return on capital employed, % 1)	15.0	13.1	13.9
Return on capital employed excluding goodwill, %	17.4	15.7	16.2
Adjusted return on capital employed excluding godwill, % 1)	17.4	15.3	16.2
Return on equity, %	12.4	10.5	11.5
Adjusted return on equity, % 2)	12.4	10.3	11.5
Capital structure
Capital turnover, times	1.9	1.9	1.8
Employees
Sales per employee, SEK '000	2,145	2,154	2,117
Operating earnings per employee, SEK '000	164	154	158
Number of employees on closing date	1,287	1,247	1,264

*) Refers to both before and after dilution.

Definitions

Definitions of key indicators are unchanged compared with those used in the 2016 annual report.

Other key indicators not used in the annual report or on page 13 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

		2017 2016			2015
SEKmillio n	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Order bookings	765	720	744	602	672	699	674	652	688
Income statement
Net sales	708	778	674	601	686	715	667	618	696
Gross earnings	141	153	140	117	138	136	132	112	136
Earnings before depreciation (EBITDA)	76	83	71	57	71	72	64	51	60
EBITDA margin, %	10.8	10.6	10.6	9.6	10.3	10.1	9.6	8.2	8.6
Adjusted earnings before depreciation (EBITDA)	76	83	71	57	71	72	60	51	56
Adjusted EBITDA margin, %	10.8	10.6	10.6	9.6	10.3	10.1	9.0	8.2	8.0
Operating earnings (EBIT)	57	63	52	39	54	55	47	36	45
EBIT margin (operating margin), %	8.1	8.1	7.7	6.5	7.8	7.7	7.1	5.8	6.5
Adjusted operating earnings (EBIT)	57	63	52	39	54	55	43	36	41
Adjusted EBIT margin (operating margin), %	8.1	8.1	7.7	6.5	7.8	7.7	6.5	5.8	5.9
Earnings after tax	39	51	37	30	39	40	24	22	35
Net margin, %	5.5	6.6	5.5	5.0	5.7	5.6	3.6	3.5	5.1
Adjusted earnings after tax	39	51	37	30	39	40	20	22	31
Adjusted net margin, %	5.5	6.6	5.5	5.0	5.7	5.6	3.0	3.5	4.5
Cash flow from
operating activities	37	-2	122	55	95	78	91	-12	14
investment activities	2	26	-31	-29	-6	-16	-146	-40	-33
financing activities	-82	-10	-69	10	-135	-8	21	5	-65
Cash flow for the period	-43	14	23	36	-46	54	-35	-48	-84
Earnings per share attributable to parent company shareholders
Earnings per share, SEK *)	2.01	2.59	1.82	1.50	1.92	2.03	1.33	1.14	1.69
Earnings per share, adjusted for one-off effects, SEK *)	2.01	2.59	1.82	1.50	1.92	2.03	1.21	1.14	1.50
Number of outstanding ordinary shares
Weighted outstanding ordinary shares, 000 *)	20,359.7	20,359.7	20,359.7	20,359.7	20,359.7	20,359.7	20,457.6		20,786.7 21,040.2

SEK millio n	30-06-2017	31-03-2017			31-12-2016 30-09-2016 30-06-2016 31-03-2016			31-12-2015 30-09-2015 30-06-2015
Balance sheet
Fixed assets	808	832	872	868	852	867	877	725	711
Current assets	1,161	1,205	1,097	1,071	1,037	1,103	1,067	1,145	1,162
Equity	1,367	1,420	1,357	1,319	1,267	1,283	1,245	1,263	1,277
Non-current liabilities	80	69	78	100	90	160	168	154	114
Current liabilities	522	548	534	519	532	527	532	453	482
Other
Net cash(+)/net debt(-)	3	54	30	-63	-89	-114	-176	-73	12
Adjusted net cash(+)/net debt(-)	40	91	68	-25	-53	-76	-138	-71	14
Equity per share attributable to parent company shareholders
Equity per share, SEK*)	66.64	69.08	65.96	64.20	61.63	62.48	60.58	60.52	59.71
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	20,359.7	20,359.7		20,612.7 21,040.2
Shareprice
Sharesprice at period end,(SEK)	120.00	112.25	89.00	97.50	81.75	74.50	82.00	71.50	81.50

*) Refers to both before and after dilution.

consolidated, 12 month rolling

	July 2016– June 2017	April 2016– March 2017	January 2016– December	October 2015– Sept­ember	July 2015– June 2016	April 2015– March 2016	January 2015– December	October 2014– Sept­ember	July 2014– June 2015
SEK millio n Order bookings	2,831	2,738	2016 2,717	2016 2,646	2,696	2,712	2015 2,673	2015 2,705	2,624
Income statement
Net sales	2,760	2,739	2,676	2,669	2,686	2,695	2,693	2,648	2,624
Gross result	551	548	531	522	518	515	510	493	486
Earnings before depreciation (EBITDA)	287	282	271	264	257	246	225	212	197
EBITDA-margin, %	10.4	10.3	10.1	9.9	9.6	9.1	8.4	8.0	7.5
Adjusted earnings before depreciation (EBITDA)	287	282	271	260	253	239	217	209	182
Adjusted EBITDA-margin, %	10.4	10.3	10.1	9.7	9.4	8.9	8.1	7.9	6.9
Operating earnings (EBIT)	211	208	200	196	192	184	165	156	145
EBIT-margin (operating margin), %	7.6	7.6	7.5	7.3	7.2	6.8	6.1	5.9	5.5
Adjusted operating earnings (EBIT)	211	208	200	192	188	176	157	152	130
Adjusted EBIT-margin (operating margin), %	7.6	7.6	7.5	7.2	7.0	6.5	5.8	5.7	4.9
Earnings after tax	157	157	146	134	125	122	111	105	100
Net margin, %	5.7	5.7	5.5	5.0	4.7	4.5	4.1	4.0	3.8
Adjusted earnings after tax	157	157	146	130	121	114	103	101	88
Adjusted net margin, %	5.7	5.7	5.5	4.9	4.5	4.2	3.8	3.8	3.3
Employees
Net sale per employee, SEK 000	2,145	2,140	2,117	2,115	2,154	2,193	2,246	2,216	2,168
Operating earnings per employee, SEK 000	164	163	158	155	154	150	138	130	120
Number of employee on closing day	1,280	1,280	1,264	1,262	1,247	1,229	1,199	1,195	1,210
Return indicators
Return on capital employed, %	15.0	14.4	13.9	13.7	13.4	12.3	11.5	10.9	10.7
Adjusted return on capital employed, % 1)	15.0	14.4	13.9	13.5	13.1	11.8	11.0	10.6	9.6
Return on capital employed excluding goodwill, %	17.4	16.7	16.2	16.0	15.7	14.3	13.4	12.7	12.5
Adjusted return on capital employed
excluding goodwill, % 1)	17.4	16.7	16.2	15.6	15.3	13.6	12.8	12.4	11.2
Return on equity, %	12.4	11.9	11.5	10.8	10.5	10.0	9.4	9.0	8.6
Adjusted return on equity, % 2)	12.4	11.9	11.5	10.6	10.3	9.5	8.9	8.7	7.6
Others
Net cash(+)/net debt(-)/EBITDA	0.0	0.2	0.1	-0.2	-0.3	-0.5	-0.8	-0.3	0.1
Adjusted net cash(+)/net debt(-)/EBITDA	0.1	0.3	0.3	-0.1	-0.2	-0.3	-0.6	-0.3	0.1

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

		Q2			Jan - JUNE
sek millio n	2017	2016		2017	2016
Net sales	708	686	22	1,486	1,402	84
Currency effect current period	-31	–	-31	-44	–	-44
Adjusted net sales	677	686	-9	1,442	1,402	40

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

Earnings before depreciation (EBITDA)	76	71	5	159	143	16	287	271	16
Depreciation and amortisation	19	17	2	39	34	5	76	71	5
Operating earnings (EBIT)	57	54	3	120	109	11	211	200	11
sek millio n	2017	2016		2017	2016		JuLY 2016 – JUNE 2017	2016
		Q2			Jan - JUNE		12-month­rolling	FULL YEAR

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 net cash/net debt

sek millio n		30-06-2017 30-06-2016	31-12-2016
Net cash(+)/net debt(-)	4	-89	30
Adjusted for interest bearing liabilities related to financial lease agreements	37	36	38
Adjusted net cash(+)/net debt(-)	40	-53	68

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

	Q2			jan-JUNE			FULL YEAR
SEK millio n	2017	2016		2017	2016		2016
Net sales	12	10	2	18	16	2	28
Gross profit	12	10	2	18	16	2	28
Administrative expenses	-17	-15	-2	-29	-23	-6	-39
Operating earnings	-5	-5	–	-11	-7	-4	-11
Interest expenses and similar items	-1	-2	1	-1	-4	3	-9
Earnings after financial items	-6	-7	1	-12	-11	-1	-20
Appropriations	–	–	–	–	–	–	174
Earnings before tax	-6	-7	1	-12	-11	-1	154
Tax on period's earnings	1	1	–	2	2	–	-34
Earnings after tax	-5	-6	1	-10	-9	-1	120

Balance sheet, parent company

SEK millio n	30-06-2017	30-06-2016	31-12-2016
ASSETS
Fixed assets
Intangible fixed assets	1	1	1
Tangible fixed assets	1	2	1
Total intangible and tangible fixed assets	2	3	2
Financial fixed assets
Participations in Group companies	1,382	1,382	1,382
Deferred tax assets	22	56	19
Other non-current receivables	–	1	2
Total financial fixed assets	1,404	1,439	1,403
Total fixed assets	1,406	1,442	1,405
Current assets
Current receivables from Group companies	12	108	174
Other current receivables	3	–	2
Total current assets	15	108	176
Total assets	1,421	1,550	1,581
EQUITY AND LIABILITIES
Equity
Restricted equity	110	110	110
Non-restricted equity	943	916	1,045
Total equity	1,053	1,026	1,155
Non-current liabilities
Non-current liabilities to Group companies	289	389	346
Total non-current liabilities	289	389	346
Current liabilities
Current liabilities to Group companies	67	117	67
Other current liabilities	12	18	13
Total current liabilities	79	135	80
Total equity and liabilities	1,421	1,550	1,581

Comments

January–JUNE 2017

Bulten, through its majority owned joint venture company BBB Services Ltd, was honored by Ford Motor Company with a Special Recognition World Excellence Award. The award honors suppliers that exceed expectations and achieve the highest levels of excellence in quality, cost, performance and delivery. In the picture from the left to right: Hau Thai-Tang, Executive Vice President, Product Development and Purchasing, Ford Motor Company; Tommy Andersson, President and CEO of Bulten and Chairman of BBB Services Ltd; Raj Nair, Executive Vice President and President, North America, Ford Motor Company.

future financial report dates

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.

capital market day 21 September 2017

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 July 12 at 11:00 CET. The report will be presented by Tommy Andersson, 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-q2-2017. 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: SE: +46856642662, UK: +442030089807, US: +18558315945

This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the Senior Vice President Corporate Communications set out above, at 08:30 CET on July 12, 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