Q3 2014 Presentation

Värnamo, November 4, 2014

2

Third quarter

Bufab is a leading Supply Chain Partner. We provide C-Parts,

covering everything from traditional fasteners to complicated

processed and assembled components in different materials, and

services to the industry worldwide, providing solutions in

manufacturing, quality, sourcing and logistics.

Bufab’s offering – Global Parts ProductivityTM

It helps our customers reduce total cost and complexity, free up

capital, achieve stable quality and deliveries.

Who we are

3

Bufab Group

Third quarter

Established

in 1977

Around 800

employees

30 wholly owned

subsidiaries in23 countries

Approx 2 000 MSEK in turnover

Headquarters in

Värnamo, Sweden

120 000

articles

Listed on the stock exchange

12 000customers

In-house

production

4

Volume vs. value

Third quarter

5

Global Parts Productivity™

Third quarter

Over 120 000C-Parts

GlobalSupplierNetwork

In-houseProduction

CUSTOMERSATISFACTION

Lower total cost

Secured quality

Reliable delivery

Less complexity

Focus on core

6

Financial targets

Third quarter

Sales growth

Bufab’s goal is to achieve average annual organic growth over a

business cycle exceeding the growth of the manufacturing industry in countries where Bufab is active by three percentage

points. In addition, Bufab intends to grow through acquisitions.

+3 ppt

Profitability

Bufab targets an average operating margin of 12 percent over a

business cycle. 12 %

Capital structure

Bufab’s capital structure shall provide a high degree of financial

flexibility and make acquisitions possible. The net debt/equity ratio should not exceed 80%.

<80%

Net working capital

Bufab’s long-term goal is to achieve a net working capital/net

sales ratio of 30 percent. 30%

Dividend policy

Bufab’s target is to pay 50 percent of its net profit in dividends.

However, the company’s financial condition, cash flow, acquisition opportunities and future prospects will be taken into

account in any dividend decision.

50%

ACCELERATED ORGANIC GROWTH

IMPROVED EFFICIENCY

VALUE-ADDING ACQUISITIONS

7

Third quarter

Bufab´s Strategy

2

Quality and Customer First!

Accelerated organic

GrowthImproved cost/capital

EfficiencyValue-adding

Acquisitions

• New Business Growth -

Customer Value Creation

• All of Bufab, All the Time

• Global Parts Productivity ™

• Consolidate Sourcing

• Logistics Productivity

• Common Tools and

Processes

• Good Base Performance

• Growth Synergies

• Products

• Geography• Customer

• Shared Value Creation

8

Financial highlights, Group

Third quarter

Strong growth in a weaker market

�Order intake weaker than net sales

�Adjusted for currency translation 6.2 %

�Strategic initiatives showing result – higher

market shares for segment International

�Weaker underlying demand

*Excluding IPO costs of 18 MSEK

Operating margin

�Positively affected by higher sales

�Negatively affected by higher costs for sales

organization – now levelling out

�Strong comparable Q3 2013

12 month rollingQuarter 3

Δ Jan-Sep Δ Full year Δ

SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 %

Order intake 528 503 5.0 1,656 1 553 6.7 2,175 2,072 5.0

Net sales 536 490 9.4 1,667 1 519 9.7 2,178 2,031 7.3

Gross margin, % 28.4 28.2 29.5 29.0 29.7 29.3

Adjusted operating profit* 48 49 -3.7 159* 148 7.8 214 203 5.7

Adjusted operating margin, % 8.9 10.1 9.5 9.7 9.8 10.0

0

3

6

9

12

15

0

500

1000

1500

2000

2500

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Marg

in, %

LT

M N

et sale

s, S

EK

mill

ions

LTM Net sales 12 M, MSEK

Adjusted Operating Margin 12 M, %

-6 -6

-8

-1

6

4

10

8

6

-10

-5

0

5

10

15

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Quarterly year-on-year net sales growth, %*

9

Financial development, Group

Third quarter

*Adjusted for currency translation effects

10

Segment Sweden

Third quarter

Weaker order intake

• Decreased order intake from one customer to

manufacturing subsidiary

Net sales in line with last year

• Negatively affected by customers moving

production abroad which shows up in segment

International, weaker demand

Slightly weaker operating margin

• Higher operating costs

• Q3 as a rule weaker than other quarters

12 month rolling

Quarter 3 Δ Jan-Sep Δ Δ

SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 %

Order intake* 212 237 -10.2 736 757 -2.8 977 998 -2.1

Net sales* 220 218 1.2 752 727 3.5 995 970 2.6

Adjusted operating profit 29 31 -6.1 117 103 13.3 157 143 9.6

Adjusted operating margin, % 13.3 14.3 15.5 14.2 15.8 14.8

*Pertains to net sales and order intake from external customers

0

5

10

15

20

0

500

1000

1500

2000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Marg

in, %

LT

M N

et sale

s, S

EK

mill

ions

Net sales LTM, MSEK Adjusted Operating Margin, %

-6 -7

-9

-6

-2

3

6

21

-10

-5

0

5

10

15

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Quarterly year-on-year net sales growth, %

11

Financial development, segment Sweden

Third quarter

12

Segment International

Third quarter

Order intake in line with net sales

Strong sales growth

�Adjusted for currency effects 10.0%

�Strategic initiatives showing results

�Higher market shares

Operating margin

�Positively affected by higher sales

�Negatively by higher cost for stronger sales organization

�Comparable earnings in 2013 positively impacted by

better business mix as well as of revaluation items of 4

MSEK

12 month rolling

Quarter 3 Δ Jan-Sep Δ Δ

SEK millions 2014 2013 % 2014 2013 % 2013/14 2013 %

Order intake* 316 267 18.5 921 797 15.6 1,198 1,074 11.5

Net sales* 316 272 15.9 914 792 15.4 1,183 1,061 11.5

Adjusted operating profit 23 27 -13.6 63 64 -2.4 82 83 -1.9

Adjusted operating margin, % 7.3 9.8 6.9 8.1 6.9 7.8

*Pertains to net sales and order intake from external customers

0,0

5,0

10,0

15,0

20,0

0

500

1000

1500

2000

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Marg

in, %

LT

M N

et sale

s, S

EK

mill

ions

Net sales LTM, MSEK Adjusted Operating Margin LTM, %

-6-5

-7

5

13

6

14 14

10

-10

-5

0

5

10

15

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Quarterly year-on-year net sales growth, %*

13

Financial development, segment International

Third quarter

*Adjusted for currency translation effects

14

Third quarter

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

0

200

400

600

800

1000

Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

As o

f%

ofnetsale

sS

EK

mill

ions

Net Working Capital As of % of net sales

Net working capital

15

Third quarter

� Strong growth in a weaker market – increased market shares

� Order intake in Sweden weaker than net sales

� Margin somewhat weaker than strong Q3 2013

� Increased earnings per share

Summary Q3 2014

16

BACK UP

Third quarter

Consolidated income statement

17

Quarter 3

SEK millions 2014 2013

Net sales 536 490

Cost of goods sold -384 -352

Gross profit 152 138

Distribution costs -77 -61

Administrative expenses -28 -29

Other operating income 6 8

Other operating expenses -5 -5

Operating profit Note 1 48 51

Profit/loss from financial items

Interest and similar income 0 0

Interest and similar expenses -6 -10

Profit after financial items 42 41

Tax on profit of the period -11 -11

Profit for the period 31 30

Third quarter

Consolidated balance sheet

18

30-sep-14 30-sep-13 31-dec-13SEK millions

ASSETS

Non-current assets

Intangible assets 745 739 739

Property, land and equipment 144 130 145

Financial assets 25 26 25

Total non-current assets 914 895 909

Current assets

Inventories 670 585 626

Current receivables 516 470 440

Cash and cash equivalents 94 97 98

Total current assets 1,280 1,152 1,164

Total assets 2,194 2,047 2,073

EQUITY AND LIABILITIES

Equity 1,121 966 1,012

Non-current liabilities

Non-current liabilities, interest bearing 600 507 479

Non-current liabilities, non-interest bearing

29 25 29

Total non-current liabilities 629 532 508

Current liabilities

Current liabilities, interest bearing 86 203 227

Current liabilities, non-interest bearing 358 346 326

Total current liabilities 444 549 553

Total equity and liabilities 2,194 2,047 2,073

Third quarter

Key figures

19

Quarter3 Δ

2014 2013 %

Order intake, SEK million 528 503 5,0

Net sales, SEK million 536 490 9,4

Gross profit, SEK million 152 138 10,1

Adjusted EBITDA, SEK million 56 57 -2,8

Operating profit, SEK million 48 51 -6,5

Adjusted operating profit, SEK million 48 49 -3,7

Profit after tax, SEK million 31 30 3,0

Gross margin, % 28,4 28,2

Operating margin, % 8,9 10,4

Adjusted operating margin, % 8,9 10,1

Net margin, % 5,8 6,1

Net debt, SEK million 592 613 -3,4

Debt/equity ratio, % 53 63

Net debt / adjusted EBITDA 2,4 2,7

Working capital, SEK million 828 709

Working capital / net sales, % 36,2 35,5

Equity/assets ratio, % 51 47

Operating cash flow, SEK million 34 46

Earnings per share, SEK 0,81 0,79

20

Expected market growth for Supply Chain Partners in Europe of 6-7%

Fundamental trend for C-Parts supply chain solutions… …drive strong growth for Supply Chain Partners*

In-house production

Direct sourcing from

manufacturer

Wholesaler

Supply Chain Partner

Today

* The total market growth for Supply Chain Partners in Europe is expected to be, on average, 6-7% per year in the years to come.

Source: Company information.

% of direct material cost

Expected growth in

underlying

European C-Parts

market

Expected growth

premium for

Supply Chain

Partners

in Europe

~6-7%

~4%

~2-3%

Expected total

growth for Supply

Chain Partners

in Europe

Third quarter

21

Strategy - Efficiency

Improved cost/capital efficiency

• Consolidate Sourcing

• Logistics Productivity

• Common Tools & Processes

Improved cost/capital

Efficiency

Logistics ProductivityConsolidate Sourcing Common Tools & Processes

Third quarter

Case: Global leader in power and automation technologies

Global business together

In 18 countries at 90 factories

Bottom unit

2005

2013

”I believe that Bufab care about us, and that

they would make that extra effort if needed”

Geographical expansion

2005-2012

Started 2005 with 3 countries and

9 MSEK in sales

2013 Bufab delivered in

18 countries with sales of > 120 MSEK

Started as supplier of commodity

2005

In 2013 Bufab provide wide range

of C-Parts

Sales development

2005-2012