Bulten — Interim / Quarterly Report 2022

Jul 13, 2022

HALF YEAR REPORT

Higher sales and closure in Russia create stability in a volatile business climate

second quarter

• Net sales amounted to SEK 1,006 (910) million, an increase of 10.5% on the same period last year.
• Operating earnings (EBIT) totaled SEK 41 (55) million, equating to an operating margin of 4.1% (6.0).
• Adjusted operating earnings totaled SEK 51 (55) million, equating to an adjusted operating margin of 5.0% (6.0). Divestment cost, mainly currency translation effect, related to the Russian operation, burdened the result with approximately SEK -10 million.
• Earnings after tax amounted to SEK 22 (38) million. Adjusted earnings after tax amounted to SEK 32 (38).
• Order bookings amounted to SEK 1,289 (947) million, an increase of 36.2% on the same period last year.
• Cash flow from operating activities totaled SEK -19 (32) million.
• Earnings per share were SEK 0.88 (1.80). Adjusted earnings per share were SEK 1.32 (1.80).
• During the quarter, the divestment of Bulten's Russian operation was finalized. The operation was bought by the Russian company CAR SEATS LLC, and all shares in the joint venture company previously owned by Bulten and GAZ were redeemed. A provision had already been accounted for the impact on operating profit during Q1. During the second quarter, a currency translation effect was accounted for in conjunction with the final settlement.

january – june

• Net sales amounted to SEK 2,040 (2,013) million, an increase of 1.3% on the same period last year.
• Operating earnings (EBIT) totaled SEK 30 (153) million, equating to an operating margin of 1.5% (7.6).
• Adjusted operating earnings totaled SEK 123 (153) million, equating to an adjusted operating margin of 6.0% (7.6). In light of Russia's invasion of Ukraine and the related sanctions, at the beginning of March Bulten decided to discontinue its operation in Russia. Divestment costs related to the Russian operation burdened the result by SEK -93 million. Apart from the transaction costs, the divestment has no effect on the cash flow.
• Earnings after tax amounted to SEK -17 (106) million. Adjusted earnings after tax amounted to SEK 76 (106).
• Cash flow from operating activities totaled SEK 75 (125) million.
• Earnings per share were SEK -1.02 (5.01). Adjusted earnings per share were SEK 3.38 (5.01).
• Net debt amounted to SEK 777 (438) million. Net debt (excluding lease liabilities) totaled SEK 446 (94) million.
• The equity/assets ratio was 47.3% (51.6) at the end of the period. The equity/assets ratio (excluding lease liabilities) totaled 51.9% (57.6).

Q2 SALES SEK 1,006MILLION NET				SEK 41 OPERATING MILLION EARNINGS				4.1 OPERATING % MARGIN
				ADJUSTED	SEK 51 MILLION			ADJUSTED	5.0 %
financial summary SEK MILLION		2022	Q2 2021		2022	JAN-JUNE 2021		12-MONTH ROLLING JULY 2021– JUNE 2022	FULL YEAR 2021
Net sales		1,006	910	10.5%	2,040	2,013	1.3%	3,757	3,730	0.7%
Gross profit		189	176	13	394	402	-8	702	710	-8
Earnings before depreciation (EBITDA)		84	96	-12	116	236	-120	280	400	-120
Operating earnings (EBIT)		41	55	-14	30	153	-123	109	232	-123
Operating margin, %		4.1	6.0	-1.9	1.5	7.6	-6.1	2.9	6.2	-3.3
	Adjusted operating earnings (EBIT) 1)	51	55	-4	123	153	-30	202	232	-30
Adjusted operating margin, %		5.0	6.0	-1.0	6.0	7.6	-1.6	5.4	6.2	-0.8
Earnings after tax		22	38	-16	-17	106	-123	31	154	-123
Adjusted earnings after tax		32	38	-6	76	106	-30	124	154	-30
Earnings per share before dilution, SEK		0.88	1.80	-0.92	-1.02	5.01	-6.03	0.82	6.85	-6.03
Adjusted earnings per share before dilution, SEK		1.32	1.80	-0.48	3.38	5.01	-1.63	5.22	6.85	-1.63
Return on capital employed, %		–	–	–	–	–	–	4.4	9.7	-5.3
Adjusted return on capital employed, %		–	–	–	–	–	–	8.1	9.7	-1.6

1) See specification page 14.

CEO'S STATEMENT

The second quarter was characterized by a volatile business climate, where costs increased in tandem with fluctuations in our production. Underlying demand in the automotive industry remained strong, but unfortunately our customers' production volumes were negatively impacted early in the quarter by widespread component shortages. On a positive note, however, at the end of the quarter the production disruptions decreased significantly, and we also finalized the closure of our operation in Russia.

Net sales amounted to SEK 1,006 (910) million, an increase of 10% on the same quarter last year. Adjusted operating profit was SEK 51 (55) million, equating to an adjusted EBIT margin of 5.0% (6.0%).

I finished my previous quarterly statement by repeating that strong underlying demand and healthy customer order books provide confidence for the future. Everything looked good in March, but unfortunately there was another wave of component shortages for the European automotive industry, which led to extensive production stoppages among our customers. The ongoing pandemic lockdowns in China also affected not just the Chinese economy, but to some extent supply chains for vehicle components destined for Europe as well. These events had a negative impact on our own production, especially at the beginning of the quarter. Thankfully the situation now looks more stable, with fewer unforeseen production changes, which is reflected in our order bookings.

Market growth forecast downgraded

According to independent automotive forecaster LMC Automotive, the global production forecast for light vehicles for 2022 as a whole has been downgraded from 7.1% to 5.7% compared to expectations in April. The fall in production of heavy vehicles for the year as a whole is also expected to worsen from -5.2% in the previous forecast to -11%. For Bulten's automotive customer mix, based on both light and heavy vehicles, production is expected to increase by 3.7% for the whole year, compared to the 5.7% expected in the previous interim report. Although the forecast for our customer mix has been downgraded, this is an improvement on 2021 when production increased by 1.6% on an annual basis. We will have to accept continued uncertainty in how the market will develop, with higher inflation and geopolitical instability.

We have seen good development in other industries where we operate, including home electronics. This is positive bearing in mind the uneven production rate in the automotive industry during the spring. It also underlines the importance of our longterm strategy, which is focused on strengthening our market position in industries outside the automotive industry.

The second quarter was characterized by high prices for raw materials and energy, as well as transport and payroll costs. Steel prices reached new heights but are apparently now levelling out or falling slightly, which lays a better foundation for future quarters. Price rises have been implemented, but we are still seeing the effects of lagging income, related to the raw material adjustments built into our customer agreements.

Ongoing orders

It is evident that more manufacturers of light vehicles are increasing their capacity with more shifts, and are preparing for higher volumes than previously. It is also positive to see that many manufacturers of heavy vehicles have healthy order books. Order bookings of SEK 1,289 (947) million were considerably higher than the corresponding quarter of 2021. In summary, at the end of the first six months we can see brighter times in the second half-year, with higher and more stable volumes expected.

We continued to win many new small contracts during the quarter, primarily in areas where we can see opportunities for good growth in the long term. Our strategy is to continue to consolidate our position as a global fastener company that is a leader in sustainability.

Urgent and well-managed closure in Russia

It is very pleasing that we have been able to divest our Russian operation in just a couple of months. We have thereby minimized our risks and can focus on activities that create more stable, longterm growth. The operation was bought by the Russian company CAR SEATS LLC, and all shares in the joint venture company owned by Bulten and GAZ were redeemed. A provision had already been reported for the impact on operating profit during Q1. During this quarter, a currency translation effect was reported in conjunction with the final settlement.

Strong finances bring stability

Our finances remain strong, and we are well equipped to face this still volatile global climate of rising inflation and interest rates. It is also pleasing to note that further key recruitments were made in North America during the spring, and we are building a powerful team to secure future growth on this market.

Anders Nyström, President and CEO

BULTEN IN BRIEF

order bookings and net sales Second quarter

Order bookings amounted to SEK 1,289 (947) million, an increase of 36.2% on the corresponding period last year.

Group net sales amounted to SEK 1,006 (910) million, an increase of 10.5% on the same period last year. Adjusted for foreign exchange effects, growth totaled 4.8% for the same period.

January – June

Group net sales amounted to SEK 2,040 (2,013) million, a increase of 1.3% on the same period last year. Adjusted for foreign exchange effects, growth totaled -3.8% for the same period.

earnings and profitability Second quarter

The Group's gross profit was SEK 189 (176) million, corresponding to a gross margin of 18.7% (19.4). Earnings before depreciation and amortization (EBITDA) amounted to SEK 84 (96) million, corresponding to an EBITDA margin of 8.3% (10.6). Operating earnings (EBIT) totaled SEK 41 (55) million, equating to an operating margin of 4.1% (6.0). Adjusted operating earnings (EBIT) totaled SEK 51 (55) million, equating to an operating margin of 5.1% (6.0). Divestment cost, mainly currency translation effect, related to the Russian operation, burden the result with approximately SEK -10 million. Operating earnings were affected by exchange rate fluctuations of SEK 2 (-2) million when converting working capital at the closing day rate.

The Group's net financial items were SEK -1 (-1) million. Financial income of SEK 4 (5) million include interest income of SEK 0 (0) million and currency gain of SEK 3(5) million. Other financial income amounted to SEK 1 (-) million. Financial expenses of SEK -5 (-6) million include interest expenses of SEK -3 (-4) million, of which interest expenses for leases total SEK -2 (-2) million. Other financial expenses amounted to SEK -2 (-2) million.

The Group's profit before tax amounted to SEK 40 (54) million and profit after tax was SEK 22 (38) million. Adjusted profit before tax amounted to SEK 50 (54) million, and adjusted profit after tax amounted to SEK 32 (38) million.

January – June

The Group's gross profit was SEK 394 (402) million, corresponding to a gross margin of 19.3% (20.0). Earnings before depreciation and amortization (EBITDA) amounted to SEK 116 (236) million, corresponding to an EBITDA margin of 5.7% (11.7). Operating earnings (EBIT) totaled SEK 30 (153) million, equating to an operating margin of 1.5% (7.6). Adjusted operating earnings (EBIT) totaled SEK 123 (153) million, equating to an operating margin of 6.0% (7.6). In the

light of Russia's invasion of Ukraine and related sanctions, at the beginning of March Bulten decided to discontinue its operation in Russia. Divestment costs related to the Russian operation burdened the earnings with SEK -93 million. Operating earnings were affected by exchange rate fluctuations of SEK -3 (-3) million when converting working capital at the closing day rate.

The Group's net financial items were SEK -10 (-11) million. Financial income of SEK 1 (1) million include interest income of SEK 1 (0) million and currency gain of SEK - (1) million. Financial expenses of SEK -11 (-12) million include interest expenses of SEK -7 (-9) million, of which interest expenses for leases total SEK -5 (-5) million. Currency losses amounts to SEK -1 (-) million. Other financial expenses amounted to SEK -3 (-3) million.

The Group's profit before tax amounted to SEK 20 (142) million and profit after tax was SEK -17 (106) million. Adjusted profit before tax amounted to SEK 113 (142) million, and adjusted profit after tax amounted to SEK 76 (106) million.

cash flow, working capital, investments and financial position Second quarter

Cash flow from operating activities totaled SEK -19 (32) million. The effect on cash flow of the change in working capital amounted to SEK -94 (-49) million.

Inventories increased during the period by SEK 65 (111) million. Current receivables changed by SEK 10 (-153) million and current liabilities decreased by SEK -58 (-84) million.

Cash flow from investing activities amounted to SEK -50 (-25) million. Investments of SEK 50 (25) million relate to property, plant and equipment, of which a significant part relates to the construction of the company's new production unit in Radziechowy-Wieprz, Poland.

January – June

Cash flow from operating activities totaled SEK 75 (125) million. The effect on cash flow of the change in working capital amounted to SEK -101 (-71) million.

Inventories increased during the period by SEK 86 (138) million. Current receivables changed by SEK 75 (-45) million and current liabilities increased by SEK 44 (12) million.

Cash flow from investing activities amounted to SEK -125 (-41) million. Investments of SEK 125 (41) million relate to property, plant and equipment, of which a significant part relates to the construction of the company's new production unit in Radziechowy-Wieprz, Poland. This has contributed to an increase in net debt.

On the closing date, net debt amounted to SEK 777 (438) million. Net debt (excluding lease liabilities) totaled SEK 446 (94) million.

Consolidated cash equivalents amounted to SEK 233 (192) million at the end of the period. In addition to cash equivalents, the Group also had approved but unused overdraft facilities of SEK 774 (634) million, which means that the Group's liquidity amounted to SEK 1,007 (826) million.

financing agreements

Bulten is primarily financed through Svenska Handelsbanken under a financing agreement which amounts to SEK 1,300 million. During the second quarter, the company utilized the extension option for another year. The credit facility now runs until June 2025. There is also a financing agreement with Danske Bank with credit totaling EUR 12 million. The credit facilities are associated with certain covenants. All covenant conditions with financiers were met during the year.

OTHER INFORMATION

accounting policies

This interim report has, for the Group, been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The financial reporting for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for legal entities, issued by the Swedish Financial Reporting Board. The accounting policies applied are unchanged compared to those outlined in the 2021 Annual Report.

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 market and macroeconomic risks, legal and political risks, IT related risks, financial risks and force majeure.

The geopolitical situation in the world due to Russia's invasion of Ukraine could have repercussions on the global supply chain, etc. Also, COVID-19 is still an uncertainty factor that could affect sales and production. The impact of these situations on Bulten's operation is being carefully monitored. The company enjoys close collaboration with customers and other business partners so as to mitigate the effects as far as possible. Bulten takes measures to protect employees such as travel restrictions and quarantine, while also following government guidelines and recommendations.

For a more detailed description of risks, please see Note 5 Risks and risk management in the 2021 Annual Report.

seasonal variations

Bulten has no traditional seasonal variation but the year does reflect 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 2021 Annual Report.

employees

The average number of employees (FTE) in the Group during the period January 1 – June 30, 2022 was 1,591 (1,655). The number of employees on the closing date was 1,598.

contingent liabilities

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

parent company

Bulten AB (publ) owns, directly or indirectly, all the companies in the Group. The equity/assets ratio was 70.3% (70.7). Equity amounted to SEK 1,032 (1,071) million. On the closing date, SEK 0 (0) million was in cash or cash equivalents. The Parent Company had eight employees on the closing date.

significant developments after

the end of the reporting period There are no significant events to report.

auditor's review

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

	Gothenburg, July 13, 2022 Bulten AB (publ)
Ulf Liljedahl	Karin Gunnarsson	Hans Gustavsson
Chair of the Board	Board member	Board member
Christina Hallin	Hans Peter Havdal	Peter Karlsten
Board member	Board member	Board member
Joakim Stenberg Employee representative		Harri Åman Employee representative

Anders Nyström President and CEO

BULTEN IN BRIEF

Bulten was founded in 1873, and has since developed into one of the largest suppliers of fasteners to the international automotive industry, as well as other customer groups such as consumer electronics . Today, we have around 1,600 employees worldwide and are headquartered in Gothenburg, Sweden. Our offering extends from a wide range of standard products to adapted fasteners manufactured to the customers' specific needs. With our Full Service Provider concept (FSP), our customers can either leave total responsibility for fasteners to us, which means that we take care of development, sourcing, logistics and service, or choose just certain parts of the concept. The share (BULTEN) is listed on Nasdaq Stockholm.

vision

We create and supply the most innovative and sustainable fastening solutions.

mission

We draw from Bulten's close to 150 years of fastener knowledge to deliver, not merely fasteners, but complete solutions. Our experienced and dedicated people help our customers around the globe succeed in everything from product design to production, procurement and service.

Our nature is to expand the boundaries of our business. By driving innovation, as well as seeking partnerships with other innovative companies, we integrate new functionality and new services into our offer.

Being committed to sustainability and cost-efficiency, we continuously improve our products and our value chain to maintain industry leadership in minimal carbon footprint and use of natural resources, and we are a positive contributor to the society, wherever we are present. Sustainability is an integral part of our business model and of who we are.

business concept

We continuously deliver market leading fastening solutions that meet customer requirements on efficiency, quality, price and sustainability.

With clear objectives, global presence, responsible conduct and the latest in technology and innovation, we are the company that makes a difference, and creates the greatest benefit for the customer.

SHAREHOLDER INFORMATION

		Q2		JAN-JUNE			12-MONTH ROLLING	FULL YEAR
PRICE-RELATED SHARE DATA	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
Share price at end of period (price paid), SEK	64.00	102.80	-38.80	64.00	102.80	-38.80	64.00	93.00
Highest share price during the period (price paid), SEK	71.00	117.40	-46.40	99.50	117.60	-18.10	108.60	117.60
Lowest share price during the period (price paid), SEK	60.40	98.90	-38.50	57.40	84.10	-26.70	57.40	74.50
Market value at end of period, SEK million	1,347	2,163	-816	1,347	2,163	-816	1,347	1,957
P/E	–	–	–	–	–	–	–	13.58
Yield, %	–	–	–	–	–	–	–	2.42
Data per share, SEK
Earnings before depreciation (EBITDA) *)	4.00	4.58	-0.58	5.53	11.25	-5.72	13.32	19.04
Adjusted earnings before depreciation (EBITDA) *)	4.45	4.58	-0.13	9.95	11.25	-1.30	17.74	19.04
Operating earnings (EBIT) *)	1.96	2.60	-0.64	1.43	7.29	-5.86	5.18	11.04
Adjusted operating earnings (EBIT) *)	2.41	2.60	-0.19	5.85	7.29	-1.44	9.60	11.04
Earnings after net financial items (EAFI) *)	1.87	2.57	-0.70	0.94	6.77	-5.83	4.15	9.98
Earnings for the period *)	0.88	1.80	-0.92	-1.02	5.01	-6.03	0.82	6.85
Adjusted earnings for the period *)	1.31	1.80	-0.49	3.38	5.01	-1.63	5.22	6.85
Equity *)	–	–	–	79.96	75.88	4.08	–	79.09
Cash flow from operating activities *)	-0.88	1.49	-2.37	3.57	5.93	-2.36	–	2.30
Cash flow for the period *)	2.99	0.45	2.54	-0.91	-2.36	1.45	–	-0.39
Dividend	–	–	–	–	–	–	–	2.25
Total outstanding ordinary shares, 000
Weighted number during the period *)	20,988.0	20,988.0		– 20,988.0	20,988.0	–	20,988.0	20,988.0
At the end of the period *)	20,988.0	20,988.0		– 20,988.0	20,988.0	–	20,988.0	20,988.0

*) Before dilution.

share performance

Source: Cision on 30 june 2022

bulten's ten largest shareholders

SHAREHOLDERS	NO. OF SHARES	SHARE HOLDING, %
Volito AB	5,100,000	24.2
Nordea Investment Funds	1,388,158	6.6
Handelsbanken Fonder	1,228,510	5.8
Carnegie Fonder	1,188,803	5.7
Unionen	800,000	3.8
Avanza Pension	714,317	3.4
Clearstream Banking S.A., W8IMY	568,154	2.7
Swedbank Försäkring	422,854	2.0
Tredje AP-Fonden	397,005	1.9
Flerie Participation AB	300,000	1.4

Total number of shareholders: 10,101

Source: Euroclear Sweden AB on 30 june 2022

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	FULL YEAR
SEK MILLION	NOTE 2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
Net sales	1,006 1	910	96	2,040	2,013	27	3,757	3,730
Cost of goods sold	-817	-734	-83	-1,646	-1,611	-35	-3,055	-3,020
Gross profit	189	176	13	394	402	-8	702	710
Other operating income	1	2	-1	7	4	3	16	13
Selling expenses	-76	-67	-9	-145	-144	-1	-280	-279
Administrative expenses	-67	-57	-10	-127	-111	-16	-239	-223
Other operating expenses	-9	-2	-7	-103	-3	-100	-103	-3
Share of profit in joint ventures	3	3	–	4	5	-1	13	14
Operating earnings	41	55	-14	30	153	-123	109	232
Financial income	4	5	-1	1	1	–	1	1
Financial expenses	-5	-6	1	-11	-12	1	-22	-23
Earnings before tax	40	54	-14	20	142	-122	88	210
Tax on earnings for the period	-18	-16	-2	-37	-36	-1	-57	-56
Earnings after tax	22	38	-16	-17	106	-123	31	154
Attributable to
Parent Company shareholders	18	37	-19	-22	105	-127	16	143
Non-controlling interests	4	1	3	5	1	4	15	11
Earnings after tax	22	38	-16	-17	106	-123	31	154
Earnings per share attributable to Parent Company shareholders
Earnings per share before dilution, SEK	0.88	1.80	-0.92	-1.02	5.01	-6.03	0.82	6.85
Adjusted earnings per share before dilution, SEK	1.31	1.80	-0.49	3.38	5.01	-1.63	5.22	6.85
Earnings per share after dilution, SEK	0.88	1.80	-0.92	-1.02	5.01	-6.03	0.82	6.85
Weighted number of outstanding ordinary shares before dilution, 000	20,988.0	20,988.0	–	20,988.0	20,988.0	–	20,988.0	20,988.0
Weighted number of outstanding

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

ordinary shares after dilution, 000 20,988.0 20,988.0 – 20,988.0 20,988.0 – 20,988.0 20,988.0

		JAN-JUNE			12-MONTH ROLLING	FULL YEAR
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
Earnings after tax	22	38	-16	-17	106	-123	31	154
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	86	-7	93	88	27	61	119	58
Total comprehensive income	108	31	77	71	133	-62	149	211
Attributable to
Parent Company shareholders	100	30	70	65	131	-66	133	199
Non-controlling interests	8	1	7	6	2	4	16	12
Total comprehensive income	108	31	77	71	133	-62	149	211

CONSOLIDATED BALANCE SHEET

SEK MILLION	30-06-2022	30-06-2021	31-12-2021
ASSETS
Fixed assets
Intangible fixed assets 1)	220	234	237
Tangible fixed assets	867	722	817
Right-of-use assets	306	331	313
Financial assets	61	57	63
Deferred tax assets	18	4	16
Total fixed assets	1,472	1,348	1,446
Current assets
Inventories	961	840	875
Current receivables	930	740	856
Cash equivalents	233	192	242
Total current assets	2,124	1,772	1,973
Total assets	3,596	3,120	3,419
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent Company shareholders	1,678	1,592	1,660
Non-controlling interests	21	16	27
Total equity	1,699	1,608	1,687
Long-term liabilities
Deferred tax liabilities	14	4	18
Long-term interest-bearing lease liabilities	272	294	277
Other long-term interest-bearing liabilities and provisions	321	206	346
Total long-term liabilities	607	504	641
Current liabilities
Current lease liabilities, interest-bearing	58	50	56
Other current liabilities, interest-bearing	360	83	221
Other current liabilities, non interest-bearing	872	875	814
Total current liabilities	1,290	1,008	1,091
Total equity and liabilities	3,596	3,120	3,419

1) Of which goodwill SEK 220 (234) (237) million.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		JAN-JUNE
SEK MILLION	30-06-2022	30-06-2021	31-12-2021
Equity at start of period	1,687	1,517	1,517
Comprehensive income
Earnings after tax	-17	106	154
Other comprehensive income 2)	88	27	57
Total comprehensive income	71	133	211
Transactions with shareholders
Transaction with non-controlling interests	-12	0	1
Dividend to Parent Company shareholders	-47	-42	-42
Total transactions with shareholders	-59	-42	-41
Equity at end of period	1,699	1,608	1,687

2) In connection with the divestment of the Russian operation exchange rate differences of SEK 27 million have been returned to the income statement.

CONSOLIDATED CASH FLOW STATEMENT

	Q2		JAN-JUNE		FULL YEAR
SEK MILLION	2022	2021	2022	2021	2021
Operating activities
Earnings after financial items	40	54	20	142	210
Adjustments for items not included in cash flow	48	38	176	75	149
Taxes paid	-13	-11	-20	-21	-27
Cash flow from operating activities before changes in working capital	75	81	176	196	332
Cash flow from changes in working capital
Change in working capital	-94	-49	-101	-71	-284
Cash flow from operating activities	-19	32	75	125	48
Investing activities
Acquisition of intangible fixed assets	0	–	0	–	-0
Acquisition of tangible fixed assets	-50	-25	-125	-41	-170
Divestment of tangible fixed assets	0	0	0	0	1
Divestment of shares in Joint Venture	–	–	–	–	4
Cash flow from investing activities	-50	-25	-125	-41	-165
Financing activities
Change in overdraft facilities and other financial liabilities	196	61	113	-60	213
Amortization of lease liabilities	-18	-16	-35	-31	-62
Dividend to Parent Company shareholders	-47	-42	-47	-42	-42
Transactions with non-controlling interests	–	–	–	–	0
Cash flow from financing activities	131	3	31	-133	109
Cash flow for the period	62	10	-19	-49	-8
Cash flow for the period	62	10	-19	-49	-8
Cash and cash equivalents at start of period	164	185	242	236	236
Exchange rate difference in cash and cash equivalents	7	-3	10	5	14
Cash and cash equivalents at end of period	233	192	233	192	242

CONSOLIDATED NET DEBT COMPOSITION

SEK MILLION	30-06-2022	30-06-2021	31-12-2020
Long-term interest-bearing liabilities	-572	-480	-603
Provision for pensions	-21	-20	-20
Current interest-bearing liabilities	-418	-133	-277
Financial interest-bearing receivables	2	3	1
Cash equivalents	233	192	242
Net debt (-)	-777	-438	-655
Less interest-bearing liabilities attributable to lease liabilities	331	344	332
Adjusted net debt (-), (excluding lease liabilities)	-446	-94	-323

KEY FIGURES FOR THE GROUP

GROUP		Q2		JAN-MAR
	2022	2021	2022	2021	2021
Margins
EBITDA margin, %	8.3	10.6	5.7	11.7	10.7
Adjusted EBITDA margin, % 3)	9.3	10.6	10.2	11.7	10.7
EBIT margin (operating margin), %	4.1	6.0	1.5	7.6	6.2
Adjusted EBIT margin (operating margin), % 3)	5.0	6.0	6.0	7.6	6.2
Net margin, %	2.2	4.2	-0.8	5.2	4.1
Adjusted net margin, % 3)	3.1	4.2	3.7	5.2	4.1
Capital structure
Interest coverage ratio, times	8.3	10.7	2.8	13.0	10.1
Earnings per share attributable to Parent Company shareholders
Earnings per share before dilution, SEK	0.88	1.80	-1.02	5.01	6.85
Adjusted earnings per share before dilution, SEK 3)	1.31	1.80	3.38	5.01	6.85
Earnings per share after dilution, SEK	0.88	1.80	-1.02	5.01	6.85
Number of outstanding ordinary shares
Weighted number of outstanding ordinary shares before dilution, 000	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0
Weighted number of outstanding ordinary shares after dilution, 000	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0

GROUP	30-06-2022	30-06-2021	31-12-2021
Capital structure
Net debt/equity ratio, times	-0.5	-0.3	-0.4
Equity/assets ratio, %	47.3	51.6	49.3
Equity/assets ratio, (excluding lease liabilities, IFRS 16), %	51.9	57.6	54.4
Other
Net debt (-), SEK million	-777	-438	-655
Adjusted net debt (-), (excluding lease liabilities), SEK million	-446	-94	-323
Equity per share attributable to Parent Company shareholders
Equity per share before dilution, SEK	79.96	75.88	79.09
Equity per share after dilution, SEK	79.96	75.88	79.09
Number of outstanding ordinary shares
Number of outstanding ordinary shares before dilution on the closing date, 000	20,988.0	20,988.0	20,988.0
Number of outstanding ordinary shares after dilution on the closing date, 000	20,988.0	20,988.0	20,988.0

	12-MONTH ROLLING	FULL YEAR
GROUP, 12-MONTH ROLLING	JULY 2021 – JUNE 2022	JULY 2020 – JUNE 2021	2021
Profitability ratios
Return on capital employed, %	4.4	12.6	9.7
Adjusted return on capital employed, % 1)	8.1	12.5	9.7
Return on capital employed, (excluding leasing, IFRS 16), %	4.9	14.2	11.0
Adjusted return on capital employed, (excluding leasing IFRS 16), %	9.1	14.1	11.0
Return on capital employed, excluding goodwill, %	4.8	13.9	10.7
Return on equity, %	1.1	12.1	9.1
Adjusted return on equity, % 2)	6.7	11.9	9.1
Capital structure
Capital turnover rate, times	1.5	1.7	1.6
Employees
Net sales per employee, SEK 000	2,361	2,384	2,230
Operating earnings per employee, SEK 000	68	172	139
Average number of full-time employees (FTE)	1,591	1,655	1,673

DEFINITIONS

Definitions of calculated key indicators are unchanged compared to the definitions in the 2021 Annual Report.

Other key indicators not in the Annual Report or on page 14 of this interim report are explained below.

1) Adjusted return on capital employed: Earnings before financial expenses adjusted for non-recurring items as a percentage of average capital employed. 2)Adjusted return on equity: Net earnings adjusted for non-recurring items divided by average equity.

3) Adjusted result: Result adjusted for items affecting comparability.

QUARTERLY DATA FOR THE GROUP

		2022 2021					2020
SEK MILLION	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Order bookings	1,289	1,134	871	830	947	1,010	1,188	1,322	409
Income statement
Net sales	1,006	1,034	953	764	910	1,103	1,080	853	441
Gross profit	189	205	168	140	176	226	212	161	40
Adjusted gross profit 3)	189	205	168	140	176	226	212	161	40
Earnings before depreciation (EBITDA)	84	32	90	74	96	140	132	80	-18
EBITDA margin, %	8.3	3.1	9.4	9.7	10.6	12,7	12.2	9.4	-4.1
Adjusted Earnings before depreciation
(EBITDA) 3) Adjusted EBITDA margin, % 3)	94 9.3	115 11.1	90 9.4	74 9.7	96 10.6	140 12.7	125 11.6	80 9.4	-18 -4.1
Operating earnings (EBIT)	41	-11	48	31	55	98	92	40	-59
EBIT margin (operating margin), %	4.1	-1.1	5.0	4.1	6.0	8.9	8.5	4.7	-13.3
Adjusted Operating earnings (EBIT) 3)	51	72	48	31	55	98	85	40	-59
Adjusted EBIT margin (operating margin), % 3)	5.0	7.0	5.0	4.1	6.0	8.9	7.8	4.7	-13.3
Earnings after tax	22	-39	32	16	38	68	63	17	-39
Net margin, %	2.2	-3.8	3.3	2.2	4.2	6.1	5.8	2.1	-8.8
Adjusted earnings after tax 3)	32	44	32	16	38	68	57	17	-39
Adjusted Net margin, % 3)	3.1	4.3	3.3	2.2	4.2	6.1	5.3	2.1	-8.8
Cash flow from
operating activities	-19	94	45	-122	32	93	176	157	51
investing activities	-50	-75	-69	-55	-25	-16	-19	-12	-17
financing activities	131	-100	71	171	3	-136	-66	-144	-28
Cash flow for the period	62	-81	47	-6	10	-59	91	1	6
Earnings per share attributable to Parent Company shareholders
Earnings per share before dilution, SEK	0.88	-1.90	1.16	0.68	1.80	3.21	2.96	0.91	-1.85
Adjusted earnings per share before dilution,
SEK 3)	1.32	2.07	1.16	0.68	1.80	3.21	2.67	0.91	-1.85
Number of outstanding ordinary shares
Weighted number of outstanding ordinary shares before dilution, 000	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0
SEK MILLION	30-06-2022	31-03-2022	31-12-2021	30-09-2021	30-06-2021	31-03-2021		31-12-2020 30-09-2020 30-06-2020
Balance sheet
Fixed assets	1,472	1,421	1,446	1,380	1,348	1,358	1,354	1,394	1,323
Current assets	2,124	1,988	1,973	1,836	1,772	1,803	1,717	1,649	1,449
Equity	1,699	1,650	1,687	1,637	1,608	1,619	1,517	1,512	1,508
Long-term liabilities	607	506	641	608	504	476	574	587	715
Current liabilities	1,290	1,253	1,091	971	1,008	1,066	980	944	549
Other
Net debt (-)	-777	-648	-655	-623	-438	-392	-458	-605	-634
Adjusted net debt (-)	-446	-319	-323	-285	-94	-42	-112	-238	-371
Equity per share attributable to Parent Company shareholders
Equity per share before dilution, SEK	79.96	77.45	79.09	77.11	75.88	76.41	71.62	71.36	70.98
Number of outstanding ordinary shares

Number of outstanding ordinary shares on closing date before dilution, 000	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0	20,988.0
Share price
Share price at end of period (SEK)	64.00	65.10	93.00	84.40	102.80	104.60	89.80	71.60	53.40

3) See definition on page 10.

GROUP, 12-MONTH ROLLING

SEK MILLION	JULY 2021– JUNE 2022	APRIL 2021– MARCH 2022	JANUARY 2021– DECEMBER 2021	OCTOBER 2020– SEPTEBER 2021	JULY 2020– JUNE 2021	APRIL 2020– MARCH 2021	JANUARY 2020– DECEMBER 2020	OCTOBER 2019– SEPTEBER 2020	JULY 2019– JUNE 2020
Income statement
Net sales	3,757	3,661	3,730	3,857	3,946	3,477	3,195	2,899	2,764
Gross profit	702	689	710	754	775	639	567	504	449
Adjusted gross profit 3)	702	689	710	754	775	639	567	504	460
Earnings before depreciation (EBITDA)	280	292	400	442	448	334	277	210	159
EBITDA margin, %	7.4	8.0	10.7	11.5	11.4	9.6	8.7	7.2	5.8
Adjusted earnings before depreciation (EBITDA) 3)	372	375	400	439	445	331	274	225	201
Adjusted EBITDA margin, % 3)	9.9	10.2	10.7	11.4	11.3	9.5	8.6	7.7	7.3
Operating earnings (EBIT)	109	122	232	276	285	171	116	51	4
EBIT margin (operating margin), %	2.9	3.3	6.2	7.1	7.2	4.9	3.6	1.8	0.2
Adjusted operating earnings (EBIT) 3)	201	206	232	273	282	168	113	67	46
Adjusted EBIT margin (operating margin), % 3)	5.4	5.6	6.2	7.1	7.1	4.9	3.5	2.3	1.7
Earnings after tax	32	47	154	185	186	109	50	-2	-33
Net margin, %	0.9	1.3	4.1	4.8	4.7	3.1	1.6	-0.0	-1.2
Adjusted earnings after tax 3)	124	130	154	183	184	107	48	13	2
Adjusted net margin, % 3)	3.3	3.5	4.1	4.7	4.7	3.1	1.5	0.5	0.1
Employees
Net sales per employee, SEK 000	2,361	2,220	2,230	2,295	2,384	2,121	1,977	1,808	1,761
Operating earnings per employee, SEK 000	68	74	139	164	172	104	72	32	3
Average number of full-time employees (FTE) on closing date	1,591	1,649	1,673	1,680	1,655	1,639	1,616	1,603	1,570
Profitability ratios
Return on capital employed, %	4.4	5.3	9.7	11.7	12.6	7.4	5.4	2.5	0.2
Adjusted return on capital employed, % 1)	8.1	8.7	9.7	11.6	12.5	7.3	5.2	3.1	2.1
Return on capital employed, (excluding leasing, IFRS 16), %	4.9	6.0	11.0	13.5	14.2	8.3	5.9	2.6	0.0
Return on capital employed, excluding goodwill, %	4.8	5.9	10.7	12.9	13.9	8.2	5.9	2.7	0.2
Adjusted return on capital employed, excluding goodwill, % 1)	9.0	9.8	10.7	12.7	13.8	8.0	5.8	3.5	2.3
Return on equity, %	1.1	2.3	9.1	11.7	12.1	6.9	3.7	0.3	-2.0
Adjusted return on equity, % 2)	6.7	7.4	9.1	11.5	11.9	6.7	3.5	1.2	0.3
Other
Net debt(-)/EBITDA	-2.8	-2.2	-1.6	-1.4	-1.0	-1.2	-1.7	-2.9	-4.0
Adjusted net debt(-)/EBITDA*)	-1.6	-1.1	-0.8	-0.6	-0.2	-0.1	-0.4	-1.1	-2.3
Adjusted net debt(-)/Adjusted EBITDA**)	-1.4	-1.0	-0.9	-0.7	-0.2	-0.2	-0.5	-1.4	-2.4

*) Adjusted net debt(-): Net debt exclusive lease liabilities

**) Adjusted EBITDA: Adjusted for non-recurring items

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 table below refers to income by geographic market where the customer's delivery point is located. The Group has the major of its income from customers in Northern Europe, but part of the sales is then exported to other markets in the rest of the world. Customers are mainly manufacturers of light vehicles but also heavy commercial vehicles and other suppliers, so-called tiers. For heavy commercial vehicles, most of the deliveries are for critical fasteners for engines. Of the total sales, the majority goes to the chassis/body. Other income refers to other industries outside the automotive industry, such as consumer electronics.

Total income	1,006	910	96	2,040	2,013	27	3,757	3,730
Rest of the world	46	61	-15	105	121	-16	242	258
USA	63	36	27	122	82	40	208	168
China	151	104	47	311	199	112	644	532
Rest of Europe	279	261	18	566	560	6	983	977
Poland	7	7	–	14	15	-1	25	26
UK	267	271	-4	544	663	-119	979	1,098
Germany	66	50	16	131	131	–	233	233
Sweden	127	120	7	247	242	5	443	438
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
		Q2			JAN-JUNE	12-MONTH ROLLING	FULL YEAR

income by geographic market

income by customer group

Total income	1,006	910	96	2,040	2,013	27	3,757	3,730
Other income	109	60	49	202	112	90	417	327
Tiers	144	155	-11	314	318	-4	579	583
OEM Heavy commercial vehicle	108	96	12	200	204	-4	376	380
OEM Light vehicle	645	599	46	1,324	1,379	-55	2,385	2,440
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
		Q2			JAN-JUNE		12-MONTH ROLLING	FULL YEAR

income by chassis/body and powertrain

Total income	1,006	910	96	2,040	2,013	27	3,757	3,730
Other income	108	59	49	201	112	89	416	327
Powertrain	159	173	-14	316	379	-63	591	654
Chassis/body	739	678	61	1,523	1,522	1	2,750	2,749
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
		Q2				JAN-JUNE

income distributed by income category

Total income	1,006	910	96	2,040	2,013	27	3,757	3,730
Other income	23	20	3	50	52	-2	82	84
Outsourced production	369	379	-10	769	890	-121	1,477	1,598
Own production	614	511	103	1,221	1,071	150	2,198	2,048
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
		Q2			JAN-JUNE	12-MONTH ROLLING	FULL YEAR

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

SEK MILLION	2022	2021		2022	2021
Net sales	1,006	910	96	2,040	2,013	27
Currency effect, current period	-52	–	-52	-103	–	-103
Adjusted net sales	954	910	44	1,937	2,013	-76

When calculating adjusted net sales, 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

Operating earnings before depreciation (EBITDA)	84	96	-12	116	236	-120	280	400
Depreciation/amortization and impairments	43	41	2	86	83	3	171	168
Operating earnings (EBIT)	41	55	-14	30	153	-123	109	232
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
		Q2			JAN-JUNE	12-MONTH ROLLING	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 earnings before depreciation, adjusted ebitda

Adjusted operating earnings before depreciation (EBITDA)	94	96	-2	209	236	-27	373	400
Divestment costs related to the Russian operation	10	–	10	93	–	93	93	–
Operating earnings excluding depreciation (EBITDA)	84	96	-12	116	236	-120	280	400
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
		Q2		JAN-JUNE			12-MONTH ROLLING	FULL YEAR

adjusted operating earnings, adjusted ebit

		Q2			JAN-JUNE			FULL YEAR
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
Operating earnings (EBIT)	41	55	-14	30	153	-123	109	232
Divestment costs related to the Russian operation	10	–	10	93	–	93	93	–
Adjusted operating earnings (EBIT)	51	55	-4	123	153	-30	139	232

adjusted net earnings

Adjusted net earnings	32	38	-6	76	106	-30	124	154
Divestment costs related to the Russian operation	10	–	10	93	–	93	93	–
Net earnings	22	38	-16	-17	106	-123	31	154
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
	Q2			JAN-JUNE			12-MONTH ROLLING	FULL YEAR

adjusted net debt (excluding lease liabilities)

SEK MILLION	30-06-2022	30-06-2021	31-12-2021
Net debt (-)	-777	-438	-655
Less interest-bearing liabilities attributable to lease liabilities	331	344	332
Adjusted net debt (-), (excluding lease liabilities)	-446	-94	-323

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

INCOME STATEMENT, PARENT COMPANY

		Q2			JAN-JUNE			FULL YEAR
SEK MILLION	2022	2021		2022	2021		JULY 2021– JUNE 2022	2021
Net sales	5	4	1	9	9	–	18	18
Gross profit	5	4	1	9	9	–	18	18
Administrative expenses	-11	-10	-1	-19	-21	2	-40	-42
Operating earnings	-6	-6	–	-10	-12	2	-22	-24
Interest income	–	–	–	–	0	0	0	0
Interest expenses and similar loss items	-1	-2	1	-3	-3	–	-4	-4
Earnings after net financial items	-7	-8	1	-13	-15	2	-26	-28
Appropriations	–	–	–	–	–	–	37	37
Earnings before tax	-7	-8	1	-13	-15	2	11	9
Tax on earnings for the period	1	2	-1	3	3	–	-2	-2
Earnings after tax	-6	-6	–	-10	-12	2	9	7

BALANCE SHEET, PARENT COMPANY

SEK MILLION	30-06-2022	30-06-2021	31-12-2021
ASSETS
Fixed assets
Intangible fixed assets	0	0	0
Tangible fixed assets	0	0	1
Total intangible and tangible fixed assets	1	1	1
Financial assets
Participations in Group companies	1,450	1,450	1,450
Other long-term receivables	1	1	1
Total financial assets	1,451	1,451	1,451
Deferred tax assets	2	3	–
Total fixed assets	1,454	1,455	1,452
Current assets
Current receivables from Group companies	10	52	37
Other current receivables	4	8	3
Cash and cash equivalents	0	0	0
Total current assets	14	60	40
Total assets	1,468	1,515	1,492
EQUITY AND LIABILITIES
Equity
Restricted equity	110	110	110
Non-restricted equity	922	961	980
Total equity	1,032	1,071	1,090
Long-term liabilities
Long-term liabilities to Group companies	422	414	383
Total long-term liabilities	422	414	383
Current liabilities
Current liabilities to Group companies	0	0	0
Other current liabilities	14	30	19
Total current liabilities	14	30	19
Total equity and liabilities	1,468	1,515	1,492

financial calendar

October 27, 2022 Interim report January-September 2022 February 9, 2023 Full year report January-December 2022

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

contact

Ulrika Hultgren, SVP Corporate Communications & IR Phone: +46 727-47 17 58 E-mail: ulrika.hultgren@bulten.com

invitation to presentation

Investors, analysts and media are invited to participate in the teleconference on July 13 at 11:00 CEST. The report will be presented by President and CEO Anders Nyström and CFO Anna Åkerblad via audiocast.

The presentation will be held in English and can be followed live via the link: https://tv.streamfabriken.com/bulten-q2-2022. It will also be possible to take part of the audiocast afterwards at the same address or at www.bulten.se.

To participate in the teleconference, please call 5 minutes before the opening: SE: +46850558350 UK: +443333009031 US: +16467224903

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 contact person set out above, at 08:00 CEST on 13 July 2022.

Bulten Group is a leading global manufacturer and supplier of fasteners to the automotive industry, as well as other customer groups such as consumer electronics. The offering extends from a wide range of standard products to specially adapted fasteners. With Bulten's Full Service Provider concept (FSP), customers can entrust all their fastener needs to the company, including development, sourcing, logistics and service. The company was founded in 1873, has approximately 1,600 employees in 15 countries and is headquartered in Gothenburg, Sweden. Net sales in 2021 totaled SEK 3,730 million. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com.

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