Bulten — Interim / Quarterly Report 2018

Jul 11, 2018

Q2

HALF YEAR REPORT

Very strong growth

second quarter

• Net sales amounted to SEK 810 (708) million, an increase of 14.5% on the same period last year.
• Operating earnings (EBIT) totalled SEK 57 (57) million, equating to an operating margin of 7.1% (7.9).
• Earnings after tax amounted to SEK 40 (39) million.
• Order bookings amounted to SEK 855 (765) million, an increase of 11.7% on the same period last year.
• Cash flow from operating activities totalled SEK 54 (37) million.
• Earnings per share were SEK 1.99 (2.01).
• Bulten was awarded the Jaguar Land Rover Global Supplier Excellence Award.
• Bulten AB:s (publ) Board of Directors has elected Anders Nyström as the new President and CEO from 8 February 2019.

january –june

• Net sales amounted to SEK 1,663 (1,486) million, an increase of 11.9% on the same period last year.
• Operating earnings (EBIT) totalled SEK 124 (120) million, equating to an operating margin of 7.4% (8.0).
• Earnings after tax amounted to SEK 88 (90) million.
• Order bookings amounted to SEK 1,634 (1,485) million, an increase of 10.0% on the same period last year.
• Cash flow from operating activities totalled SEK 80 (35) million.
• Earnings per share were SEK 4.42 (4.60).
• Net debt amounted to MSEK 118 (net cash balance 3) million and the equity/assets ratio was 66.0% (69.4) at the end of the period.

significant events after the end of the reporting period

• The Board has decided to utilize the authorization given at the Annual General Meeting 26 April 2018 concerning the decision on acquisition of own shares.

ceo's comments

"Very strong growth during the second quarter with increased net sales and order bookings of 14.5% and 11.7% respectively. Growth is primarily being driven by ramp-up in previously communicated contracts, but also by good demand in Bulten's customer segments.

Operating earnings were in line with the corresponding quarter last year, though with a lower operating margin. The lower operating margin is attributable to higher global market prices for steel and other metals as well as an uneven rate of production due to ramp-up in new models during the quarter, and the fact that last year was positively affected by a recovered claim. The negative effects on the operating earnings has however partly been balanced out by positive exchange rate fluctuations.

The financial position remains strong and our scope increased during the quarter, with a new long-term financing agreement to secure future growth. Bulten has long-standing contracts with customers and a strong position on the market, and we are well equipped to meet higher demand for our products and the increased rate of investment.

During the quarter, Bulten won another prestigious automotive industry prize: the Jaguar Land Rover Global Supplier Excellence Award – something we are very proud of."

BULTEN IN BRIEF

development during the quarter

Very strong growth during the second quarter with increased net sales and order bookings of 14.5% and 11.7% respectively, compared to the same period last year. Growth is primarily being driven by a ramp-up in previously communicated contracts, but also by good demand in Bulten's customer segments.

Operating earnings were in line with the corresponding quarter last year, though with a slightly lower operating margin. The lower operating profit can partly be explained by higher global market prices for steel and other metals. Volatility in raw material prices is usually compensated for by customers, although there is something of a delay in the adjustment. The operating margin was also affected by an uneven rate of production due to a ramp-up in new car models, and the fact that some of Bulten's raw material suppliers continue to have difficulties delivering at the desired rate.

The imbalances in production have, however, gradually improved by ongoing measures. The negative effects on the operating earnings has however partly been balanced out by positive exchange rate fluctuations. Last year's figures were positively affected by a impairment receivable of approximately SEK 4 million.

The financial position remains strong and the company's financial scope increased further during the quarter, with a new long-term financing agreement to secure future growth. The new financing includes an operating and mortgage credit of SEK 750 million in total. Bulten has long-standing contracts with customers and a strong position on the market, and is well equipped to meet higher demand for the company's products and for a higher rate of investment.

Planned investments in capacity are vital to Bulten's contracted growth and its objective to be the most cost-effective producer of fasteners on the market. With upcoming investments including a new production and logistics building in Poland, a new heat treatment plant in Hallstahammar and a new surface treatment plant at the Polish unit, Bulten's planned investment rate will be above the company's long-term investment guideline of 2-3% of net sales.

In May, Bulten was presented with the Global Supplier Excellence Award by Jaguar Land Rover, confirmation of the company's extraordinary efforts for the car maker.

In June, Bulten's Board of Directors announced that Anders Nyström had been appointed as the new President and CEO. He will take up the position on 8 February 2019. Tommy Andersson will remain as President and CEO until 7 February 2019, after which he will be retiring.

market and outlook

Approximately 86% of Bulten's net sales are attributable to light vehicles and roughly 14% to commercial vehicles. Around 92% of total sales are attributable to direct deliveries to vehicle manufacturers (OEMs) and the remainder to their tiers and other players. During the first five months of 2018 car sales in Europe (EU and EFTA) increased by 2.4% compared to the same period 2017 according to ACEA's statistics.

According to the latest LMC Automotive forecast in Q2 2018, European production of light vehicles is expected to increase by 1.9% and heavy commercial vehicles by 1.9% in 2018. Weighted for Bulten's business exposure, this means a rise of 1.9% in the corresponding period.

Bulten's products are mainly distributed to Europe, but demand is governed by the production of vehicles for the global market. The management believes that underlying demand for light vehicles in Europe remains good, as does the demand for vehicles that are exported from Europe to global markets.

Capacity utilization for most suppliers of fasteners is currently deemed high. The management team estimates that Bulten's market share at the end of 2017 amounted to about 17% of the European market for fasteners for the automotive industry, which is

unchanged from 2016. On the same market, Bulten's estimated market share for FSP business was around 60% at the end of 2017, which is also unchanged compared to 2016. The information is based on data from the European Industrial Fasteners Institute (EIFI) relating to European automotive industry purchases of fasteners during 2017.

Bulten has a strong position within its niche, and long-term growth opportunities are looking good, with incoming volumes from already signed contracts worth just over SEK 0.5 billion annually when full production is reached in 2020. Furthermore, the development toward more hybrid and electric cars works in Bulten's favour, as more fasteners will be needed for each car due to new materials and powertrains. The basis for winning new business is also deemed to remain strong.

order bookings and net sales Second quarter

Order bookings amounted to SEK 855 (765) million, an increase of 11.7% on the same period last year.

Group net sales amounted to SEK 810 (708) million, an increase of 14.5% on the same period last year. Adjusted for currency effects, organic growth totalled 8.7% for the same period.

January - June

Order bookings amounted to SEK 1,634 (1,485) million, an increase of 10.0% on the same period last year.

Group net sales totalled SEK 1,663 (1,486) million, an increase of 11.9% on the same period last year. Adjusted for currency effects, organic growth totalled 7.1% for the same period.

earnings and profitability

Second quarter

The Group's gross profit was SEK 156 (141) million, corresponding to a gross margin of 19.2% (20.0). Earnings before depreciation (EBITDA) amounted to SEK 80 (76) million, corresponding to an EBITDA margin of 9.8% (10.8). Operating earnings (EBIT) totalled SEK 57 (57) million, equating to an operating margin of 7.1% (7.9).

Profitability was affected negatively by higher global market prices for steel and other metals as well as an uneven rate of production, but was partly balanced out by currency effects; the operating earnings were affected positively by exchange rate fluctuations of SEK 4 (0) million net on converting working capital at the exchange rate on the closing date. Last year's working capital was positively affected by an amount of SEK 4 million attributable to a impairment receivable.

The Group's net financial items were SEK -5 (-5) million. Financial income was SEK 0 (0) million, including interest income of SEK 0 (0) million. Financial expenses were SEK -5 (-5) million, comprising interest expenses of SEK -1 (-1) million, foreign exchange losses of SEK -4 (-3) million and other financial expenses of SEK -0 (-1) million.

The Group's earnings before tax amounted to SEK 52 (52) million and earnings after tax amounted to SEK 40 (39) million.

January - June

The Group's gross profit was SEK 315 (294) million, corresponding to a gross margin of 18.9% (19.8). Earnings before depreciation (EBITDA) amounted to SEK 168 (159) million, corresponding to an EBITDA margin of 10.1% (10.7). Operating earnings (EBIT) totalled SEK 124 (120) million, equating to an operating margin of 7.4% (8.0).

Profitability was affected negatively by higher global market prices for steel and other metals as well as an uneven rate of production, but was partly balanced out by currency effects; the operating earnings were affected positively by exchange rate fluctuations of SEK 9 (-1) million net on converting working capital at the exchange rate on the closing date. Last year's working capital was positively affected by an amount of SEK 4 million attributable to a recovered claim.

The Group's net financial items were SEK -6 (-1) million. Financial income was SEK 0 (2) million, including interest income of SEK 0 (0) million, foreign exchange gains of SEK - (2) million. Financial expenses were SEK -6 (-3) million, comprising interest expenses of SEK -2 (-2) million, foreign exchange loss of SEK -3 (-) million and other financial expenses of SEK -1 (-1) million.

The Group's earnings before tax amounted to SEK 118 (119) million and earnings after tax were SEK 88 (90) million.

cash flow, working capital, investments and financial position

Second quarter

Cash flow from operating activities totalled SEK 54 (37) million. The effect on cash flow of the change in working capital amounted to SEK -12 (-33) million. Inventories increased during the period by SEK 52 (6) million, while current receivables decreased by SEK -78 (-9) million. Current liabilities decreased by SEK -40 (-25) million.

Cash flow from investing activities amounted to SEK -36 (2) million. Investments of SEK 36 (30) million relate to tangible fixed assets.

Cash flow from financing activities has been affected by dividend to parent company shareholders amounting to SEK -76 (-92) million.

January - June

Cash flow from operating activities totalled SEK 80 (35) million. The effect on cash flow of the change in working capital amounted to SEK -62 (-114) million. Working capital has been driven by positive developments in volume. Inventories changed during the period by SEK 45 (-24) million, while current receivables increased by SEK 30 (116) million. Current liabilities increased by SEK 40 (17) million.

Cash flow from investing activities amounted to SEK -75 (28) million. Investments of SEK 75 (37) million relate to tangible fixed assets. Last year the change in financial assets was SEK 67 million, relating to a loan to the joint venture company BBB Services Ltd. which was replaced by working capital financing. The change had a negative impact on consolidated cash flow from operating activities of SEK 67 million, with a corresponding positive impact on consolidated cash flow from investing activities.

Cash flow from financing activities has been affected by dividend to parent company shareholders amounting to SEK -76 (-92) million.

On the closing date, net debt amounted to SEK 118 million, of which SEK 27 million was cash and cash equivalents. In the previous year, the net cash balance amounted to SEK 3 million, of which SEK 81 million was cash and cash equivalents. Net debt adjusted for financial leasing agreements amounted to SEK 80 million. Adjusted net cash for the previous year amounted to SEK 40 million.

new financing agremeent signed

During the second quarter, the company signed a new, extended financing agreement with operating and mortgage credit totalling SEK 750 million, compared to the previous SEK 460 million. The agreement runs for a period of 4+1+1 years, initially running until the end of June 2022.

Other than this, the new financing agreement entails no significant changes compared to the previous one.

The credit does have certain conditions (known as covenants) which encompass relational figures including EBITDA, net debt/ equity and certain financial expenses.

All new and old covenants have been fulfilled in 2017 and 2018.

OPERATING MARGIN

NET SALES OPERATING EARNINGS

SEK810MILLION SEK57MILLION

57 810 SEK SEK MILLION		MILLION				7.1	%
FINANCIAL SU MMARY		Q2			JAN-JUNE		12-MONTH ROLLING	YEAR
SEK MILLION	2018	2017		2018	2017		JULY 2017– JUNE 2018	2017
Net sales	810	708	14.5%	1,663	1,486	11.9%	3,033	2,856	6.2%
Gross profit	156	141	15	315	294	21	579	558	21
Earnings before depreciation (EBITDA)	80	76	4	168	159	9	299	290	9
Operating earnings (EBIT)	57	57	–	124	120	4	214	210	4
Operating margin, %	7.1	7.9	-0.8	7.4	8,0	-0.6	7.1	7.4	-0.3
Earnings after tax	40	39	1	88	90	-2	157	159	-2

Order bookings 855 765 11.7% 1,634 1,485 10.0% 3,164 3,015 4.9% Return on capital employed, % – – – – – – 14.1 14.4 -0.3 Return on capital employed, excluding goodwill, % – – – – – – 16.2 16.7 -0.5

Q2

OTHER INFORMATION

accounting principles

This interim report has, for the Group, been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The financial reporting for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for legal entities, issued by the Swedish Financial Reporting Board. The accounting principles applied are unchanged compared to those outlined in the 2017 Annual Report, with the following exceptions:

From 1 January 2018, the Group is applying IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. IFRS 9 covers the classification, measurement and recognition of financial assets and liabilities. It replaces the parts of IAS 39 that concern the classification and measurement of financial instruments. IFRS 15 contains a combined model for revenue recognition for customer contracts not covered by other standards. It replaces IAS 11 Construction Contracts, IAS 18 Revenue and the related interpretations IFRIC 13, 15, 18 and SIC-31.

The implementation of IFRS 9 and IFRS 15 does not have any significant effect on the Group's financial reports. Consequently, no transition effects have arisen as a result of introducing these accounting standards.

As from 1 of january 2019, the Group is applying IFRS 16 Leases. The standard requires that assets and liabilities relating to all leases, with some exceptions, be recognised in the balance sheet and in the income statement through the depreciation of the asset and an interest expense for the lease liabilities. For operating leases, under the current IAS 17, lease payments are expensed over the term of the lease. The Group is lessee in operating leases that are expected to be affected by IFRS 16. The group has started but not yet finalized the evaluation of the full effect on the Group's financial reporting.

All amounts in SEK million unless otherwise stated. Figures in brackets refer to the previous year. Some figures are rounded, so amounts might not always appear to match when added up.

risks and risk management

Exposure to risk is a natural part of a business and this is reflected in Bulten's approach to risk management. This aims to identify risks and prevent risks from occurring and to limit any damage resulting from these risks. The most significant risks for the Group relate to the economic situation's effect on demand, access to and price fluctuations in raw materials, and geopolitical and financial external factors.

For a more detailed description of risks, please see Note 5 Risks and risk management in the 2017 Annual Report.

seasonal variations

Bulten has no traditional seasonal variation but the year reflects the customers' production days, which vary between quarters. Generally speaking, the lowest net sales and operating earnings are seen in the third quarter with the lowest number of production days. The other quarters are relatively even but may vary slightly.

transactions with related parties

There have been no significant transactions between related parties during the reporting period. For further information, please see Note 37 of the 2017 Annual Report.

employees

The average number of employees (FTE) in the Group was 1,418 (1,287) during the period 1 January - 30 June, 2018.

contingent liabilities

Three were no significant changes in contingent liabilities during the interim period.

parent company

Bulten AB (publ) owns, directly or indirectly, all companies in the Group. The equity/assets ratio was 73.8% (74.1). Equity amounted to SEK 1,040 (1,053) million. There were no cash or cash equivalents on the closing date. The company had nine employees on the closing date.

significant events after the end of the reporting period

The Board has decided to utilize the authorization given at the Annual General Meeting 26 April 2018 concerning the decision on acquisition of own shares. According to the Board's decision, the acquisition of shares may amount to a maximum of 50 MSEK, on conditions that otherwise comply with the authorization granted to the Board from the Annual General Meeting. The company may not hold more than 10 percent of the company's shares at any time. The total number of shares in Bulten AB amounts to 21,040 207 of which Bulten today holds 680 500 own shares.

There are no other significant events to report.

auditor's verification

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

The Board of Directors and the CEO give their assurance that this report provides a fair overview of the Parent Company's and the Group's operations, financial position and performance, and also describes material risks and uncertainties facing the Parent Company and the Group.

Gothenburg, 10 July 2018 Bulten AB (publ)

Ulf Liljedah Hans Gustavsson Hans Peter Havdal Chairman of the board Board member Board member Peter Karlsten Anne-Lie Lind Nicklas Paulson

Board member Board member Board member

Mikael Jansson Lars Jonsson Employee representative Employee representative

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 1,400 employees in eight countries and its 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 goal is to achieve profitable organic growth and to grow more strongly than the industry average.
• The Group's goal is to achieve an operating margin of at least 7% (7).
• The Group's goal is to achieve a return on average capital employed of at least 15% (15).
• The Group's dividend policy is, over time, to pay out a dividend of at least one third of net earnings after tax. Consideration shall, however, be given to Bulten's financial position, cash flow and outlook.

strategy

Global system supplier of fastener solutions

Bulten shall be a global full service provider (FSP) of fastener solutions to the automotive industry.

Value enhancement throughout the value chain

Bulten creates value throughout the value chain: from predevelopment, technology and product development, production, purchasing and logistics, to final delivery at the customer's production line.

Organic growth

Bulten's primary strategy is to grow organically. Acquisitions and joint ventures deemed to complement the offering either in terms of products, processes or geography are also of interest.

Customers in the automotive industry

Vehicle manufacturers and suppliers in the automotive industry are the primary target groups.

Geographic proximity

Bulten's geographic spread allows global delivery capacity to the automotive industry.

Innovation drives development

An innovative climate serves to develop technological know-how to create optimal, sustainable, cost-effective solutions for the customer.

Global purchasing strategy

Bulten's global purchasing strategy harmonizes and consolidates the purchase of intermediate goods in a sustainable, cost-effective way

Sustainable, cost-effective production

Bulten's production technology and structure ensures sustainable, cost-effective production of the highest quality.

Strong balance sheet for growth investments

A strong balance sheet and low indebtedness provide flexibility and preparedness for investments in increased capacity and growth, as well as for strategic acquisitions.

Personnel and a unique corporate

culture create a sustainable operation

Bulten's employees contribute to sustainable development with their expertise and keen dedication. The company's core values are the foundation of Bulten's unique corporate culture.

Development of sustainability work

All activities within Bulten should be sustainably designed and in line with the company's ethical guidelines, based on social responsibility, environmental principles and responsible corporate governance.

SHAREHOLDER INFORMATION

		Q2			JAN-JUNE	12-MONTH ROLLING	YEAR
PRICE-RELATED SHARE DATA	2018	2017		2018	2017		JULY 2017 – JUNE 2018	2017
Share price at end of period (price paid), SEK	104.40	120.00	-15.60	104.40	120.00	-15.60	104.40	122.50
Highest share price during the period (price paid), SEK	117.20	135.50	-18.30	124.40	135.50	-11.10	130.50	135.50
Lowest share price during the period (price paid), SEK	103.00	110.00	-7.00	100.60	89.00	11.60	100.60	89.00
Market value at end of period, SEK million	2,197	2,525	-328	2,197	2,525	-328	2,197	2,577
P/E	–	–	–	–	–	–	13.38	15.36
Yield, %	–	–	–	–	–	–	–	3.06
Data per share
Earnings before depreciation (EBITDA) *)	3.91	3.74	0.17	8.25	7.80	0.45	14.67	14.22
Operating earnings (EBIT) *)	2.80	2.76	0.04	6.08	5.87	0.21	10.52	10.32
Earnings after net financial items (EAFI) *)	2.53	2.53	–	5.79	5.83	-0.04	10.27	10.32
Earnings for the period *)	1.99	2.01	-0.02	4.42	4.60	-0.18	7.80	7.98
Equity *)	–	–	–	73.01	66.64	6.37	–	70.76
Cash flow from operating activities *)	2.67	1.85	0.82	3.93	1.73	2.20	–	2.88
Cash flow for the period *)	-0.85	-2.06	-1.21	-1.19	-1.38	0.19	–	-3.13
Dividend	–	–	–	–	–	–	–	3.75
Total outstanding ordinary shares, 000
Weighted number during the period *)	20 359.7	20 359.7	–	20 359.7	20 359.7	–	20 359.7	20,359.7
At the end of the period *)	20 359.7	20 359.7	–	20 359.7	20 359.7	–	20 359.7	20,359.7

*) Before dilution.

share performance

bulten's ten largest shareholders

SHAREHOLDERS	NO. OF SHARES	SHARE HOLDING, %
Volito AB	4,500,000	21.4
Lannebo fonder	2,775,924	13.2
Investment AB Öresund	2,263,535	10.8
Spiltan Fonder AB	859,717	4.1
Bulten AB	680,500	3.2
Third AP Fund	559,485	2.7
Skandinaviska Enskilda Banken S.A.	509,834	2.4
CBNY-DFA-INT SML CAP V	367,881	1.8
NORDEN SMALL	350,000	1.7
Clients Accounts-DCS	309,849	1.5

Total number of shareholders: 7,131

Source: Euroclear Sweden AB on 30 June 2018

information about interim reports

Bulten strives for sustainable business, and to find areas where we can minimize environmental impact. From Q2 2016, interim reports are no longer available in printed form.

All of Bulten's reports are available to read and download at bulten.se. Shareholders who are unable to access the reports digitally can order printed copies by contacting Bulten.

Our subscription service at bulten.se also enables users to subscribe to Bulten's reports and press releases by e-mail.

FINANCIAL INFORMATION

CONSOLIDATED INCOME STATEMENT

			Q2			JAN-JUNE		12-MONTH ROLLING	YEAR
SEK MILLION	NOTE	2018	2017		2018	2017		JULY 2017 – JUNE 2018	2017
Net sales	1	810	708	102	1,663	1,486	177	3,033	2,856
Cost of goods sold		-654	-567	-87	-1,348	-1,192	-156	-2,454	-2,298
Gross profit		156	141	15	315	294	21	579	558
Other operating income		8	9	-1	17	13	4	35	25
Selling expenses		-57	-49	-8	-113	-97	-16	-212	-196
Administrative expenses		-48	-45	-3	-95	-90	-5	-181	-177
Other operating expenses		-4	–	-4	-4	-2	-2	-13	-4
Share of profit in joint ventures		2	1	1	4	2	2	6	4
Operating earnings		57	57	–	124	120	4	214	210
Financial income		–	–	–	0	2	-2	5	6
Financial expenses		-5	-5	–	-6	-3	-3	-10	-6
Earnings before tax		52	52	–	118	119	-1	209	210
Tax on earnings for the period		-12	-13	1	-30	-29	-1	-52	-51
Earnings after tax		40	39	1	88	90	-2	157	159
Attributable to
Parent Company shareholders		41	41	–	90	93	-3	159	162
Non-controlling interests		-1	-2	1	-2	-3	1	-2	-3
Earnings after tax		40	39	1	88	90	-2	157	159
Earnings per share attributable to Parent Company shareholders
Earnings per share before dilution, SEK		1.99	2.01	-0.02	4.42	4.60	-0.18	7.80	7.98
Earnings per share after dilution, SEK		1.98	2.00	-0.02	4.40	4.58	-0.18	7.77	7.93
Weighted number of outstanding ordinary shares before dilution, 000		20,359.7	20,359.7	–	20,359.7	20,359.7	–	20,359.7	20,359.7
Weighted number of outstanding ordinary shares after dilution, 000		20,451.9	20,462.8	-10.9	20,451.9	20,462.8	-10.9	20,451.9	20,464.4

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Q2				JAN-JUNE	12-MONTH ROLLING	YEAR
SEK MILLION	2018	2017		2018	2017		JULY 2017 – JUNE 2018	2017
Earnings after tax	40	39	1	88	90	-2	157	159
Other comprehensive income
Items not to be reversed in the income statement
Revaluation of defined-benefit pension plans, net after tax	–	–	–	–	–	–	-1	-1
Items that may later be reversed in the income statement
Exchange differences	1	-1	2	31	11	20	45	25
Total comprehensive income	41	38	3	119	101	18	201	183
Attributable to
Parent Company shareholders	42	41	1	121	104	17	204	187
Non-controlling interests	-1	-3	2	-2	-3	1	-3	-4
Total comprehensive income	41	38	3	119	101	18	201	183

CONSOLIDATED BALANCE SHEET

SEK MILLION	30-06-2018	30-06-2017	31-12-2017
ASSETS
Fixed assets
Intangible fixed assets 1)	206	206	206
Tangible fixed assets	669	578	628
Financial assets	4	5	5
Deferred tax assets	7	19	8
Total fixed assets	886	808	847
Current assets
Inventories	578	425	533
Current receivables	781	655	750
Cash equivalents	27	81	48
Total current assets	1,386	1,161	1,331
Total assets	2,272	1,969	2,178
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent Company shareholders	1,486	1,357	1,440
Non-controlling interests	12	10	14
Total equity	1,498	1,367	1,454
Long-term liabilities
Long-term interest-bearing liabilities and provisions	145	80	97
Total long-term liabilities	145	80	97
Current liabilities
Current liabilities, interest-bearing	4	3	4
Current liabilities, non interest-bearing	625	519	623
Total current liabilities	629	522	627
Total equity and liabilities	2,272	1,969	2,178

1) Of which goodwill SEK 203 (203) (203) million.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	JAN-JUNE		YEAR
SEK MILLION	30-06-2018	30-06-2017	31-12-2017
Equity at start of period	1,454	1,357	1,357
Comprehensive income
Earnings after tax	88	90	159
Other comprehensive income	31	11	24
Total comprehensive income	1,573	101	183
Transactions with shareholders
Transaction with non-controlling interests	–	–	4
Share-based remuneration to employees	1	1	2
Dividend to Parent Company shareholders	-76	-92	-92
Total transactions with shareholders	-75	-91	-86
Equity at end of period	1,498	1,367	1,454

CONSOLIDATED CASH FLOW STATEMENT

	Q2		JAN-JUNE	YEAR
SEK MILLION	2018	2017	2018	2017	2017
Operating activities
Earnings after financial items	52	52	118	119	210
Adjustments for items not included in cash flow	21	23	40	42	74
Taxes paid	-7	-5	-16	-12	-25
Cash flow from operating activities before changes in working capital	66	70	142	149	259
Cash flow from changes in working capital
Change in working capital	-12	-33	-62	-114	-201
Cash flow from operating activities	54	37	80	35	58
Investing activities
Acquisition of intangible fixed assets	–	-1	–	-1	-1
Acquisition of tangible fixed assets	-36	-30	-75	-37	-122
Divestment of tangible fixed assets	0	0	0	0	2
Change in financial assets	–	33	–	66	66
Cash flow from investing activities	-36	2	-75	28	-55
Financing activities
Change in overdraft facilities and other financial liabilities	41	10	47	0	21
Dividend to Parent Company shareholders	-76	-92	-76	-92	-92
Transactions with non-controlling interests	–	–	–	–	4
Cash flow from financing activities	-35	-82	-29	-92	-67
Cash flow for the period	-17	-43	-24	-29	-64
Cash flow for the period	-17	-43	-24	-29	-64
Cash and cash equivalents at start of period	44	122	48	109	109
Exchange rate difference in cash and cash equivalents	0	2	3	1	3
Cash and cash equivalents at end of period	27	81	27	81	48

CONSOLIDATED NET CASH/NET DEBT COMPOSITION

SEK MILLION	30-06-2018	30-06-2017	31-12-2017
Long-term interest-bearing liabilities	-132	-63	-84
Provision for pensions	-13	-17	-13
Current interest-bearing liabilities	-4	-3	-4
Financial interest-bearing receivables	4	5	4
Cash and bank	27	81	48
Net cash (+)/net debt (-)	-118	3	-49
Less interest-bearing liabilities attributable to financial leases	38	37	37
Adjusted net cash (+)/net debt (-)	-80	40	-12

KEY FIGURES FOR THE GROUP

		Q2		JAN-JUNE	12-MONTH ROLLING	YEAR
GROUP	2018	2017	2018	2017	JULY 2017 – JUNE 2018	2017
Margins
EBITDA margin, %	9.8	10.8	10.1	10.7	9.8	10.1
EBIT margin (operating margin), %	7.1	7.9	7.4	8.0	7.1	7.4
Net margin, %	4.9	5.5	5.3	6.1	5.2	5.6
Capital structure
Interest coverage ratio, times	10.2	12.2	20.7	40.4	25.6	38.8
Earnings per share attributable to Parent Company shareholders
Earnings per share before dilution, SEK	1.99	2.01	4.42	4.60	7.80	7.98
Earnings per share after dilution, SEK	1.98	2.00	4.40	4.58	7.77	7.93
Number of outstanding ordinary shares
Weighted number of outstanding ordinary shares before dilution, 000	20,359.7	20,359.7	20,359.7	20,359.7	20,359.7	20,359.7
Weighted number of outstanding ordinary shares after dilution, 000	20,451.9	20,462.8	20,451.9	20,462.8	20,451.9	20,464.4

GROUP	30-06-2018	30-06-2017	31-12-2017
Capital structure
Net debt/equity ratio, times	-0.1	0.0	-0.0
Equity/assets ratio, %	66.0	69.4	66.8
Other
Net cash (+)/net debt (-), SEK million	-118	3	-49
Adjusted net cash (+)/net debt (-), SEK million	-80	40	-12
Equity per share attributable to Parent Company shareholders
Equity per share before dilution, SEK	73.01	66.64	70.76
Equity per share after dilution, SEK	72.68	66.30	70.39
Number of outstanding ordinary shares
Number of outstanding ordinary shares before dilution on the closing date, 000	20,359.7	20,359.7	20,359.7
Number of outstanding ordinary shares after dilution on the closing date, 000	20,451.9	20,462.8	20,464.4

		12-MONTH ROLLING	YEAR
GROUP, 12-MONTH ROLLING	JULY 2017 – JUNE 2018	JULY 2016 – JUNE 2017	2017
Profitability ratios
Return on capital employed, %	14.1	15.0	14.4
Return on capital employed, excluding goodwill, %	16.2	17.4	16.7
Return on equity, %	11.2	12.4	11.7
Capital structure
Capital turnover rate, times	2.0	1.9	1.9
Employees
Net sales per employee, SEK 000	2,139	2,145	2,189
Operating earnings per employee, SEK 000	151	164	161
Average number of full-time employees (FTE)	1,418	1,287	1,305

DEFINITIONS

Definitions of calculated key indicators are unchanged compared to the definitions in the 2017 Annual Report.

Other key indicators not in the Annual Report or on page 13 of this interim report are explained below.

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

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

QUARTERLY DATA FOR THE GROUP

	2018	2017				2016
SEK MILLION	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Order bookings	855	779	839	691	765	720	744	602	672
Income statement
Net sales	810	853	740	630	708	778	674	601	686
Gross profit	156	159	142	122	141	153	140	117	138
Earnings before depreciation (EBITDA)	80	88	76	55	76	83	71	57	71
EBITDA margin, %	9.8	10.4	10.2	8.7	10.8	10.6	10.6	9.6	10.3
Operating earnings (EBIT)	57	67	55	35	57	63	52	39	54
EBIT margin (operating margin), %	7.1	7.8	7.5	5.5	7.9	8.1	7.7	6.5	7.8
Earnings after tax	40	48	47	22	39	51	37	30	39
Net margin, %	4.9	5.7	6.3	3.5	5.5	6.6	5.5	5.0	5.7
Cash flow from
operating activities	54	26	2	21	37	-2	122	55	95
investing activities	-36	-39	-43	-40	2	26	-30	-29	-6
financing activities	-35	6	-1	26	-82	-10	-69	10	-135
Cash flow for the period	-17	-7	-42	7	-43	14	23	36	-46
Earnings per share attributable to Parent Company shareholders
Earnings per share before dilution, SEK	1.99	2.43	2.26	1.11	2.01	2.59	1.82	1.50	1.92
Number of outstanding ordinary shares
Weighted number of outstanding ordinary shares before dilution, 000	20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7

SEK MILLION	30-06-2018 31-03-2018 31-12-2017 30-09-2017 30-06-2017 31-03-2017 31-12-201630-09-201630-06-2016
Balance sheet
Fixed assets	886	877	847	823	808	832	872	867	852
Current assets	1,386	1,428	1,331	1,189	1,161	1,205	1,097	1,071	1,037
Equity	1,498	1,533	1,454	1,381	1,367	1,420	1,357	1,319	1,267
Long-term liabilities	145	104	97	100	80	69	78	100	90
Current liabilities	629	668	627	531	522	548	534	519	532
Other
Net cash (+)/net debt (-)	-118	-60	-49	-13	3	54	30	-63	-89
Adjusted net cash (+)/net debt (-)	-80	-22	-12	23	40	91	68	-25	-53
Equity per share attributable to Parent Company shareholders
Equity per share before dilution, SEK	73.01	74.66	70.76	67.18	66.64	69.08	65.96	64.20	61.63
Number of outstanding ordinary shares
Number of outstanding ordinary shares on closing date before dilution, 000								20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7 20,359.7
Share price
Share price at end of period (SEK)	104.40	112.00	122.50	126.00	120.00	112.25	89.00	97.50	81.75

GROUP, 12-MONTH ROLLING

	JULY 2017– JUNE	APRIL 2017– MARCH	JANUARY 2017– DECEMBER 2017	OCTOBER 2016– SEPTEMBER 2017	JULY 2016– JUNE	APRIL 2016– MARCH 2017	JANUARY 2016– DECEMBER 2016	OCTOBER 2015– SEPTEMBER 2016	JULY 2015– JUNE
SEK MILLION	2018	2018			2017				2016
Order bookings	3,164	3,074	3,015	2,920	2,831	2,738	2,717	2,646	2,696
Income statement
Net sales	3,033	2,931	2,856	2,790	2,760	2,739	2,676	2,669	2,686
Gross profit	579	564	558	556	551	548	531	522	518
Earnings before depreciation (EBITDA)	299	295	290	285	287	282	271	264	257
EBITDA margin, %	9.8	10.1	10.1	10.2	10.4	10.3	10.1	9.9	9.6
Adjusted earnings before depreciation (EBITDA)	299	295	290	285	287	282	271	260	253
Adjusted EBITDA margin, %	9.8	10.1	10.1	10.2	10.4	10.3	10.1	9.7	9.4
Operating earnings (EBIT)	214	214	210	207	211	208	200	196	192
EBIT margin (operating margin), %	7.1	7.3	7.4	7.4	7.6	7.6	7.5	7.3	7.2
Adjusted operating earnings (EBIT)	214	214	210	207	211	208	200	192	188
Adjusted EBIT margin (operating margin), %	7.1	7.3	7.4	7.4	7.6	7.6	7.5	7.2	7.0
Earnings after tax	157	156	159	149	157	157	146	134	125
Net margin, %	5.2	5.3	5.6	5.4	5.7	5.7	5.5	5.0	4.7
Adjusted earnings after tax	157	156	159	149	157	157	146	130	121
Adjusted net margin, %	5.2	5.3	5.6	5.4	5.7	5.7	5.5	4.9	4.5
Employees
Net sales per employee, SEK 000	2,139	2,111	2,189	2,161	2,145	2,140	2,117	2,115	2,154
Operating earnings per employee, SEK 000	151	154	161	160	164	163	158	155	154
Average number of full-time employees (FTE) on closing date	1,418	1,388	1,305	1,291	1,287	1,280	1,264	1,262	1,247
Profitability ratios
Return on capital employed, %	14.1	13.7	14.4	13.9	15.0	14.4	13.9	13.7	13.4
Adjusted return on capital employed, % 1)	14.1	13.7	14.4	13.9	15.0	14.4	13.9	13.5	13.1
Return on capital employed, excluding goodwill, %	16.2	15.8	16.7	16.1	17.4	16.7	16.2	16.0	15.7
Adjusted return on capital employed, excluding goodwill, % 1)	16.2	15.8	16.7	16.1	17.4	16.7	16.2	15.6	15.3
Return on equity, %	11.2	10.9	11.7	11.5	12.4	11.9	11.5	10.8	10.5
Adjusted return on equity, % 2)	11.2	10.9	11.7	11.5	12.4	11.9	11.5	10.6	10.3
Other
Net cash(+)/net debt(-)/EBITDA	-0.4	-0.2	-0.2	-0.0	0.0	0.2	0.1	-0.2	-0.3
Adjusted net cash(+)/net debt(-)/EBITDA	-0.3	-0.1	-0.0	0.1	0.1	0.3	0.3	-0.1	-0.2

NOTE 1 INCOME

Bulten is engaged in manufacturing and sales of fasteners. Revenues from product sales are reported at the time the control of the product is transferred to the customer. This usually takes place at the time of delivery to the customer and ownership is transferred. Bulten's customers are mainly in the automotive industry in Europe, Asia and the United States. The tabel below refers to income by geographic market where the customer's delivery point is located. The Group has the major of its income from customers in Northern Europe, but part of the sales is then exported to other markets in the rest of the world. Customers are mainly manufacturers of light vehicles but also heavy commercial vehicles and other suppliers, so-called tiers. For heavy commercial vehicles, most of the deliveries are for critical fasteners for engines. Of the total sales, the majority goes to the chassis.

income by geographic market

Total income	810	708	102	1,663	1,486	177	3,033	2,856
Rest of the world	39	42	-3	73	76	-3	99	102
USA	25	24	1	48	45	3	89	86
China	42	29	13	67	56	11	122	111
Rest of Europe	210	159	51	421	317	104	733	629
Poland	8	7	1	15	14	1	28	27
UK	210	206	4	463	448	15	896	881
Germany	144	126	18	313	298	15	578	563
Sweden	132	115	17	263	232	31	488	457
SEK MILLION	2018	2017		2018	2017		JULY 2017 – JUNE 2018	2017
		Q2			JAN-JUNE	12-MONTH ROLLING	YEAR

income by customer group

Total income	810	708	102	1,663	1,486	177	3,033	2,856
Tiers	73	81	-8	146	158	-12	279	291
OEM Heavy commercial vehicle	119	105	14	228	199	29	416	387
OEM Light vehicle	618	522	96	1,289	1,129	160	2,338	2,178
SEK MILLION	2018	2017		2018	2017		JULY 2017 – JUNE 2018	2017
		Q2			JAN-JUNE		12-MONTH ROLLING	YEAR

income by chassis and powertrain

	Q2			JAN-JUNE			12-MONTH ROLLING	YEAR
SEK MILLION	2018	2017		2018	2017		JULY 2017 – JUNE 2018	2017
Chassis & other	596	510	86	1,241	1,128	113	2,167	2,054
Powertrain	214	198	16	422	358	64	866	802
Total income	810	708	102	1,663	1,486	177	3,033	2,856

RECONCILIATION BETWEEN IFRS AND KEY INDICATORS USED

Some of the information in this report used by company managers and analysts to assess the Group's development is not produced in accordance with IFRS. Company managers consider that this information makes it easier for investors to analyze the Group's results and financial structure. Investors should see this information as a complement to, rather than a replacement for, financial reporting in accordance with IFRS.

adjusted net sales, organic growth

	Q2					JAN-JUNE
SEK MILLION	2018	2017		2018	2017
Net sales	810	708	102	1,663	1,486	177
Currency effect, current period	-41	–	-41	-73	–	-73
Adjusted net sales	769	677	61	1,590	1,486	-104

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

	Q2			JAN-JUNE			12-MONTH ROLLING	YEAR
SEK MILLION	2018	2017		2018	2017		JULY 2017 – JUNE 2018	2017
Operating earnings (EBIT)	57	57	–	124	120	4	214	210
Depreciation/amortization and impairments	23	19	4	44	39	5	85	80
Operating earnings excl. depreciation (EBITDA)	80	76	4	168	159	9	299	290

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 MILLION	30-06-2018	30-06-2017	31-12-2017
Net cash (+)/net debt (-)	-118	3	-49
Less interest-bearing liabilities attributable to financial leases	38	37	37
Adjusted net cash (+)/net debt (-)	-80	40	-12

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.

BALANCE SHEET, PARENT COMPANY

	Q2			JAN-JUNE			YEAR
SEK MILLION	2018	2017		2018	2017		2017
Net sales	7	12	-5	13	18	-5	31
Gross profit	7	12	-5	13	18	-5	31
Administrative expenses	-12	-17	-5	-24	-29	5	-51
Operating earnings	-5	-5	–	-11	-11	–	-20
Interest expenses and similar loss items	-1	-1	–	-1	-1	–	-3
Earnings after net financial items	-6	-6	–	-12	-12	–	-23
Appropriations	–	–	–	–	–	–	99
Earnings before tax	-6	-6	–	-12	-12	–	76
Tax on earnings for the period	3	1	2	3	2	1	-17
Earnings after tax	-3	-5	2	-9	-10	1	59

INCOME STATEMENT, PARENT COMPANY

SEK MILLION	30-06-2018	30-06-2017	31-12-2017
ASSETS
Fixed assets
Intangible fixed assets	1	1	1
Tangible fixed assets	1	1	1
Total intangible and tangible fixed assets	2	2	2
Financial assets
Participations in Group companies	1,382	1,382	1,382
Deferred tax assets	6	22	3
Total financial assets	1,388	1,404	1,385
Total fixed assets	1,390	1,406	1,387
Current assets
Current receivables from Group companies	11	12	106
Other current receivables	7	3	4
Total current assets	18	15	110
Total assets	1,408	1,421	1,497
EQUITY AND LIABILITIES
Equity
Restricted equity	110	110	110
Non-restricted equity	930	943	1,014
Total equity	1,040	1,053	1,124
Long-term liabilities
Long-term liabilities to Group companies	284	289	290
Total long-term liabilities	284	289	290
Current liabilities
Current liabilities to Group companies	67	67	67
Other current liabilities	17	12	16
Total current liabilities	84	79	83
Total equity and liabilities	1,408	1,421	1,497

During the quarter, Bulten received the prestigious Global Supplier Excellence Award from Jaguar Land Rover which recognises extraordinary contribution and performance to Jaguar Land Rover's business over the course of the last year. In the picture, from the awards ceremony, Dr Ralf Speth Jaguar Land Rover CEO, Anders Karlsson Executive Advisor Business Development Bulten, Tommy Andersson CEO Bulten, Jennifer Saunders British actress, Neal Thomas SVP Marketing and Sales, Ian Harnett Global Purchasing Director, Jaguar Land Rover.

financial calendar

October 25, 2018 Interim report January–September 2018 February 7, 2019 Full-year report January–December 2018

The reports can be found on the Bulten website at www.bulten.se on their date of publication.

contact

Kamilla Oresvärd, SVP Corporate Communications Phone: +46 (0)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 11 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-q2-2018. It will also be possible to access the audiocast afterwards at the same address or via www.bulten.com/ir.

To participate in the teleconference, please call 5 minutes before the opening:

UK: +442030089807 SE: +46856642669 US: +18558315944

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 Senior Vice President Corporate Communications set out above, at 08:30 CET on July 11, 2018.

Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company's product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,400 employees in eight countries and its head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.se.

Bulten AB (publ) Box 9148, SE-400 93 Göteborg Visiting address: August Barks Gata 6 A Phone +46 (0)31-734 59 00 www.bulten.se