BULTEN CAPITAL MARKETS DAY 21 SEPTEMBER 2017
AGENDA 13:00 14:30 Introduction Corporate Presentation Strong financial platform Full Service Provider to the international automotive industry & Highlights region West Technology leader meeting future demands & Highlights region East Becoming the industry s most cost effective producer of fasteners Hallstahammar operation Kamilla Oresvärd Senior Vice President Corporate Communications Tommy Andersson President and CEO Helena Wennerström Executive Vice President and CFO Neal Thomas Senior Vice President Marketing and Sales region West Magnus Carlunger Senior Vice President Marketing and Sales region East Jörg Neveling Senior Vice President Production Juha Kauppinen Managing Director, Bulten Hallstahammar 14:30 16:30 Factory tour including coffee 2
CORPORATE PRESENTATION Tommy Andersson President and CEO
BULTEN DEVELOPMENT 2011 2017 DIVESTMENT OF FINNVEDEN METAL STRUCTURES 2011 2012 2014 2016 2017 FinnvedenBulten listed at Nasdaq Stockholm Established in Russia, JV with GAZ Focus on fasteners for the automotive industry Divestment of Finnveden Metal Structures New Management Name change to Bulten Bulten AB (publ) moved up to Nasdaq Stockholm s Mid Cap segment Established in the US, JV with Ramco 4
BULTEN DEVELOPMENT 2011 2017 3500 3000 2500 3094 2972 3061 DIVESTMENT OF FINNVEDEN METAL STRUCTURES 2414 ALL FINANCIAL TARGETS REACHED 2693 2676 2760 CAPTURE FUTURE GROWTH 2000 1500 1000 500 Sales 0 2011 2012 2013 2014 2015 2016 2017 12 m rolling 5
SUSTAINABLE BUSINESS RAMP UP OF NEW CONTRACTS SEK 130 million/year Started late 2015 with slow ramp up, full pace in 2020. FSP SEK 17 million/year Started late 2016 SEK 60 million in total Contract period 2017 2019. China NEW SIGNED CONTRACTS, NOT YET STARTED EUR 20 million/year Starts late 2017, full pace in 2019. FSP EUR 700 thousand/year Starts 2017, full pace in 2018. Russia USD 5.5 million/year Starts 2018, full pace in 2019/2020. Bulten part USD 5.0 million/year EUR 30 million/year Starts 2018, full pace in 2020. FSP EUR 56.2 MILLION/YEAR OF LONG TERM SUSTAINABLE BUSINESS 6
FOUNDATION The strategy moving forward is based on continuing to strengthen our core values and success factors with a strong FSP offering. SUCCESS FACTORS Bulten has exceeded the growth of the automotive industry in Europe thanks to a strong business model based on our important success factors TECHNOLOGY LEADER GEOGRAPHIC PROXIMITY CORE VALUES Bulten s core values originate in the company s history and are the foundation of our corporate culture They define the way we work and behave and inspire and support us in our efforts to continue building a successful and sustainable business Important partners and suppliers share our core values FINANCIAL PLATFORM QUALITY LEADER PROFESSIONAL INNOVATIVE EXPERIENCED MANAGEMENT & EMPOWERED EMPLOYEES FULL SERVICE PROVIDER (FSP) DEDICATED EMPOWERED 7
TECHNOLOGY LEADER Looking into every possible way to reduce weight on cars and powertrain Technology Board established 8
GLOBALIZATION Bulten is the only automotive fastener company that can support with local content in Europe, Russia, Asia and NAFTA RUSSIA SWEDEN GREAT BRITAIN USA GERMANY POLAND CHINA HEAD OFFICE PRODUCTION SALES LOGISTICS PRE DEVELOPMENT PRODUCT DEVELOPMENT 9
STRONG FINANCIAL PLATFORM Helena Wennerström Executive Vice President and CFO
FINANCIAL PLATFORM We have a strong financial platform and a position to support further growth Strong organic growth LMC forecast a market growth of 2.1% for 2017 Increased capacity Strong financial position All financial targets reached Q2 2017 Secured financing with good headroom Strong balance sheet with an equity ratio of 69.4% Flexible organisation with proven track record 11
ALL FINANCIAL TARGETS REACHED IN Q2, 2017 Growth Margin ROCE EPS Dividend Profitable organic growth more strongly than the industry average Operating margin of at least 7% At least 15% EPS development At least one third of net earnings after tax Q2 R12 3.0% 3.2% 7.9% 7.6% Na 15.0% 17.4% excl. goodwill 2.01 SEK 7.93 SEK 4.50 SEK (3.50 + 1.00 SEK /share) 62% for 2016 12
RISK FACTORS The aim of the risk management is to identify risk and prevent risk arising as well as limiting any damage that arises from risks. Risk can be categorized as business cycle and external risks operational risk financial risk sustainability risks 13
MARKET DEVELOPMENT LMC Automotive reports for automotive production in Europe, 2017: Production of LV in 2017 up by 1.8% compared to 2016 Production of HCV (>15 t) in 2017 up by 4.0% compared to 2016 For Bulten s mix, up 2.1% LV stands for ~87% of sales HCV stands ~13% of sales ACEA reports for LV sales in Europe for January August 2017, up 4.5% compared to 2016 Source: LMC Automotive Q2, 2017. ACEA eight months, 2017 14
LMC AUTOMOTIVE REPORTS FOR AUTOMOTIVE PRODUCTION IN EUROPE PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES EUROPE PRODUCTION GROWTH RATE (YEAR ON YEAR) HEAVY COMMERCIAL VEHICLES (>15t) EUROPE 5% 4% 4% 3% 3% 2% 2% 2,9% 4,1% 2,7% 1,8% 1,9% 2,0% 10% 5% 0% 5% 7,3% 5,1% 4,0% 4,3% 4,6% 1% 1% 0% 2014E 2015E 2016E 2017E 2018E 2019E 10% 15% -12,5% 2014E 2015E 2016E 2017E 2018E 2019E Q1 2017 Q2 2017 Q1 2017 Q2 2017 LMC Automotive (Q2 2017 report) has not changed its forecast level on LV production 2017 compared to the Q1 2017 report. LMCA forecast an increase of 1.8% compared to 2016. LMC Automotive (Q2 2017 report) has increased its forecast of HCV production 2017 compared to the Q1 2017 report with 1.1%, to an increase of 4.0% compared to 2016. Source: LMC Automotive Q2 2017 15
BULTEN MARKET SHARE DEVELOPMENT BULTEN MARKET SHARE DEVELOPMENT Management estimates*: Market share 17% of the European market of fasteners for the automotive industry 2016, flat versus 2015. Market share of FSP contracts for the same market to be 60% 2016, flat versus 2015. 20% 15% 10% 5% 0% 11% 14% 17% 17% Market share of total European fasteners 2013 2014 2015 2016 70% 60% 50% 40% 30% 20% 10% 0% 45% 56% 60% 60% Market share of European fastener FSP contracts 2013 2014 2015 2016 * Based on data from EIFI (European Industrial Fasteners Institute) 16
FINANCIAL GUIDELINES THE GROUP 12 M ROLLING Q2 FULL YEAR 2016 GUIDELINES Average net working capital as % of sales 19.4 18.8 20 CAPEX as % of sales 3.5 3.1 2 3 Depreciation as % of sales 2.8 2.7 2 3 Tax rate 24.6 24.9 24 28 NWC lower than guidelines Capex in line with our guidelines investments in new plating lines in Germany and Poland in 2017 ( 8.8m) Investment in an additional production and logistic plant in Poland (SEK 177m) Tax rate in line with our guidelines 17
NO SEASONALITY IN BULTEN S UNDERLYING DEMAND QUARTERLY VOLUMES AND SIGNIFICANT RESULTS ARE AFFECTED BY THE NUMBER OF PRODUCTION DAYS AND BY MODEL SHIFTS QUARTERLY VOLUMES AVG. NUMBER OF PRODUCTION DAYS PER MONTH 70 57 9,0% 60 50 40 7.9% 8,0% 7,0% 6,0% 5,0% 19 20 23 20 19 21 16 22 21 22 17 30 20 10 4,0% 3,0% 2,0% 1,0% 10 0 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 0,0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1: 62 days Q2: 60 days Q3: 48 days Q4: 60 days EBIT EBIT margin 18
SHAREHOLDER INFORMATION Listed on Nasdaq Stockholm since 20 May 2011 On September 1, 2014 the company formally changed name from FinnvedenBulten AB to Bulten AB (new ticker BULTEN) Among the largest shareholders we have Volito and Öresund and they are also representative in the board Bulten is among the top ten owners TEN LARGEST SHAREHOLDERS, 31 AUGUST 2017 Total number of Shareholders 7 075 Shareholder No. of shares Share of votes and capital (%) Volito AB 4 450 000 21.2 Lannebo fonder 2 812 795 13.4 Öresund Investment AB 2 263 535 10.8 Spiltan Fonder AB 967 312 4,6 JP Morgan 723 383 3.4 BULTEN AB 680 500 3.2 SKANDINAVISKA ENSKILDA BANKEN S.A. 471 834 2.2 Sjöbergstiftelsen 400 000 1.9 CBNY DFA INT SML CAP V 339 418 1.6 CLIENTS ACCOUNT DCS 309 849 1.5 Source: Euroclear Sweden AB 19
BULTEN DEVELOPMENT 3500 3000 2500 2000 1500 1000 500 0 6.0% 50 SEK +34% growth 67 SEK 5.5% +12% growth 82 SEK 6.1% Flat dev. 7.5% 89 SEK +3% growth 120 SEK 7.6% 2013 2014 2015 2016 2017 12 m rolling CAPTURE FUTURE GROWTH Sales Share development Operating margin GROUP STRUCTURE GROWTH AND DIVESTMENT CONSOLIDATION CONSOLIDATION GROWTH Bulten part of FinnvedenBulten Group. Divestment of Finnveden Metal Structures. Several new FSP contracts. Executing new FSP contracts. Focus on operation/optimiz ation program Investments for the future and executing new contracts 20
FULL SERVICE PROVIDER TO THE INTERNATIONAL AUTOMOTIVE INDUSTRY & HIGHLIGHTS REGION WEST Neal Thomas Senior Vice President Marketing and Sales region West
WHAT IS FSP (FULL SERVICE PROVIDER)? TRADITIONAL SETUP BULTEN FSP SETUP Multiple suppliers feeding into the customer site, leading to complex and time consuming handling for the customer Multiple suppliers managed and supplying into Bulten, leading to only Bulten feeding into the customer s site 22
WHAT IS FSP (FULL SERVICE PROVIDER) TRADITIONAL LOGISTICS SOLUTION BULTEN S LOGISTICS SOLUTION FSP 23
FULL SERVICE PROVIDER PROVEN TRACK RECORD Autoliv 80 active articles 500 tons /year Ford Sigma Engine Bridgend (BBB) 80 active articles 1600 tons/year Ford B MAX Romania (BBB) 480 active articles 1,300 tons/year Land Rover AJ200 Engine 100 active articles 1700 tons/year Range Rover Evoque Halewood (D8 Platform) 400 active articles platform Annual Halewood 5,800 tons Jaguar E Pace, Jaguar I Pace Electric Magna Steyr Graz (Contract with JLR) 420 active articles 2,450 tons/year 1998 2001 2005 2006 2007 2011 2014 2015 2016 2017 Nissan Sunderland Bulten runs limited FSP to market place EuCD Ford Mondeo / Galaxy / S MAX in Genk and worldwide 630 active articles 6000 tons /year EuCD Volvo 430 active articles 8,500 tons /year Ford Fiesta Cologne and worldwide 400 active articles 10,000 tons/year Land Rover Discovery Sport Halewood (D8 Platform) 400 active articles platform Annual Halewood 5,800 tons Land Rover Discovery, Land Rover Defender 525 active articles 4,560 tons/year 24
HIGHLIGHTS REGION WEST Business opportunities Establishment in USA
SALES REGION WEST Sales Units: RUSSIA USA SWEDEN GREAT BRITAIN GERMANY POLAND CHINA Sales units: Bulten Ltd. Bulten GmbH Bulten North America Inc. and Ram Bul LLC 26
FUTURE AND POTENTIAL FOR FSP BUSINESS As a leading FSP to the automotive market, the focus is to promote the knowledge, competence and experience Bulten possesses to global automotive OEMs Whilst it is often a long term project to develop a full FSP project, Bulten has initiated discussions and continues to look to develop not only FSP but also further traditional business with major OEMs 27
BULTEN IS ONE OF FEW THAT CAN OFFER LOCAL CONTENT AS WELL AS FSP SOLUTIONS IN NORTH AMERICA USA automotive sales market is the second largest in the world Bulten has major opportunity to develop the FSP concept in USA Local production and support are seen as key to supporting globalization of the key OEMs COUNTRY NEW CAR SALES 2016 CHINA 23,693,000 USA 17,465,000 EU 14,641,000 Globalization is pushed by the customers as the requirement for all major suppliers Bulten already supply parts through FSP to Volvo Powertrain in USA Ford is US based Volvo Car is building a plant in the USA and JLR is planning to do the same Renault/Nissan has a global strategy for its preferred suppliers including USA Further opportunities at other OEMs 28
JV WITH RAMCO IS THE MOST COST EFFECTIVE AND FASTEST WAY FOR BULTEN TO ENTER INTO THE US MARKET Michigan and Ohio area is an automotive based economy close to customers and with a readily available supply base Ram Bul JV 50/50 between Ramco and Bulten is the optimum solution on the basis that: The two companies complement each other and share the same core values Many years of partnership prior to the JV Strengthens both Bulten and Ramco This JV will create a base for production as well as logistics with possibilities for future expansion 29
PRESENTATION TITLE APRIL 14, 2017 JEFF MELICK 30
BULTEN NA, THE PRODUCTION COMPANY IN USA Wholly owned Bulten production company in USA Production for the USA market only Start of production Q2 2018 Production based on Bulten Production System (BPS) as used in all the other plants globally 31
MARKET HIGHLIGHTS USA Establishing in North America has broadened Bulten s market and have created further opportunities for growth among both new and existing companies Ram Bul signed a contract in July with a major vehicle manufacturer The annual order value is of approximately USD 5.5 million a delivery value of USD 5 million to Bulten and USD 0.5 million to Ramco Deliveries will continue over a number of years, with start and ramp up during 2018. Full volumes are expected to be reached in 2019/2020 Prospects for continuing winning new contracts are good RFQs from electrical vehicle manufacturer Vendor code ready from major car manufacturer and waiting for a several more Several technical presentations conducted 32
TECHNOLOGY LEADER MEETING FUTURE DEMANDS & HIGHLIGHTS REGION EAST Magnus Carlunger Senior Vice President Marketing and Sales region East
CONTENT Technology leader Trends and driving forces for electrification Highlights region East
THE LINE GIVEN BY NATURE 35
A TECHNOLOGY IN CONTINUOUS EVOLUTION The thread form traced back to year 400 B.C still in the 21st century developed to optimize the utilization of the fastener Today the thread form and purpose of the product usage is clearly defined However the knowledge how to optimize the utilization and assembly is pushed forward. The Mission Keep assembled parts from separating Keep assembled parts from sliding 36
UTILIZE THE ULTIMATE STRENGTH To be considered: Purpose of application Material in components to be assembled Surrounding environment Vibrations Assembly method (manual / automatic) Design requirements Fastener design Head shape requirements Maximum length Maximum diameter Thread type Thread length Friction Corrosion Surface treatment Locking feature Etc. 37
MULTIPLE FACTORS CAUSES COMPLEXITY High complexity increases the number of used fasteners in an application As a technology leader we are able to control the complexity 14 Need numbers of screws 12 10 8 6 4 2 0 0 1 2 3 4 5 6 7 38
TECHNOLOGY LEADER The position as Technology Leader is important in automotive where trends are heading towards: Faster development cycles Fewer fastener experts at our customers Advanced tightening strategies Automation Digitalization Communalization Reduction of part number variety More of the same = Win Win Simplified Assembly Weight reduction Reduction of assembly cost IPC = Smarter fastener solutions Reduce emission High tech fastener for the future 39
TECHNOLOGY LEADER COMPETENCE HUB 40
TRENDS AND DRIVING FORCES FOR ELECTRIFICATION
ELECTRIC POWERTRAIN IN AUTOMOTIVE Electric cars are no new invention, already 1898 Porsche produced their first electric car Electric cars were dominating the US market until the early 20th century when outcompeted by the combustion engine and petrol Global warming and the focus in energy efficiency has lead to a revival of the electrification in automotive Toyota with its model Prius was the first model on the market which gave the hybrid technology a breakthrough 42
FORCES FOR A GROWING ELECTRIFIED AUTOMOTIVE INDUSTRY Climate change, global warming and increasing emissions of greenhouse gases are the targeted factors that forces the development of electrification The overall largest contributing cause of CO 2 emissions worldwide is combustion of fossil fuels coal, oil and gas MAJOR GREENHOUSE GASES FROM PEOPLE S ACTIVITIES Carbon dioxide; 64,30% Methane; 17% Other gases; 11,90% Nitrous oxide; 6,00% Fluorinated gases; 0,80% 43
FORCES FOR A GROWING ELECTRIFIED AUTOMOTIVE INDUSTRY Underlying forces that are expected to drive increased EV adoption: Regulatory support in key markets; USA, Europe and China Falling lithium ion battery prices and production methods Clean production of electricity Increased EV commitments from automakers Growing consumer acceptance, driven by competitive priced EV s across all vehicle classes The growing role of car sharing, ride hailing and autonomous driving Intelligent Mobility 44
IMPORTANT FACTOR FOR EV BREAKTHROUGH TOTAL COST OF OWNERSHIP / 100 KM (EUR) Petrol 20,00 EV Year 2025 15,00 10,00 Diesel 5,00 EV Year 2020 0,00 Petrol + hybrid EV Year 2017 Diesel + hybrid Source: IHS 45
STUDY ELECTRIFICATION EFFECT PIECES Combustion vs Electrified 4000 3500 3000 2500 2000 1500 1000 500 0 Exterior Trim Body Construction Interior Trim Safety Components & Seats Chassis Electrical Engine SVO Usage area Combustion Electric Difference Reason Exterior Trim 583 547 36 Body Construction 893 3776 2883 Aluminimum body Interior Trim 258 379 121 Electrification Safety Components & Seats 71 56 16 Chassis 282 259 23 Delivery value per car approx. 40% higher! Electrical 175 265 91 Electrification Engine 164 53 111 Engine removal SVO 11 7 4 Total fasteners 2437 5342 2905 Source Bulten 46
A PARADIGM OR A TREND 7000000 FORECAST EV VOLUMES 2025 6000000 5000000 4000000 3000000 2000000 1000000 0 Europé conservative Europé aggressive China conservative China aggresive Korea conservative Korea aggressive NAFTA conservative NAFTA aggressive BEV conser. BEV aggr. PHEV conserv. PHEV aggr. Total volume conservative forecast: 6.4 MPcs 5.6% of global volume Total volume aggressive forecast: 17.8 MPcs 15.6% Source: IHS 47
HIGHLIGHTS REGION EAST Russia China
SALES REGION EAST Sales Units: RUSSIA USA SWEDEN GREAT BRITAIN GERMANY POLAND CHINA Sales units: Bulten Sweden AB Bulten Polska S.A Bulten Rus LLC Bulten Fasteners (China) Co Ltd 49
CHALLENGING MARKETS RUSSIA AND CHINA Automotive business is a challenge, and the markets in China and Russia are no exceptions Market entry in two challenging markets driven by: Globalization in the automotive industry with local supply demands Markets where qualified suppliers are few Markets with growth potential Markets where understanding in cultural differences and behavior is important. Similarities and differences in both cultures compared to Swedes 100 90 80 70 60 50 40 30 20 10 0 6 DIMENSION ANALYSIS Russia China Sweden Source: Hofstede 50
BULTEN HAS A STRONG POSITION IN RUSSIA WITH OPPORTUNITIES IN A GROWING MARKET Bulten started a JV with GAZ Group in 2014 for production, sales and logistics Well positioned at the major Russian car makers Wide customer base and growing stronger as the only renowned player in the country with poor competition from domestic players and no new market entrants 51
DEVELOPMENT IN RUSSIA In 2016 and 2017 important customer contracts was signed with major Russian OEMs and Tiers, e.g. Autovaz, GAZ Group and Autoliv and many other discussions ongoing with several vehicle manufacturers Creating the only quality fastener manufacturer in Russia with a market of more than 1 million cars and fast growing 2017 looks promising for the Russian Automotive industry with doubledigit growth for the third month in a row 3000 2500 2000 1500 1000 500 0 CAR SALES FORECAST 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Positive Normal Negative From the top year 2013 with 3.1 million cars sold the market ended at the bottom rate in 2016 with 1.4 million cars sold. In 2017 a market recovery is noted with a growing forecast. 52
BULTEN HAS A WIDE CUSTOMER BASE IN CHINA AND IS GROWING STRONGER Bulten in China is a wholly owned subsidiary acquired already in 1996 handling production, sales and logistics In the beginning it was focused on the electronic industry but was converted to automotive industry late 00 s Bulten is well positioned in China supporting major European OEMs as well as local brands Bulten s market position today has a wide customer base and is growing stronger 53
DEVELOPMENT IN CHINA Important customer contracts signed with major OEMs and Tiers e.g. Volvo Cars, Geely, CEVT and BAIC many other discussions ongoing with several vehicle manufacturers China is now the world s largest market in number of cars of approximately 24 million cars 2017 looks promising for the Chinese Automotive industry 32000 30000 28000 26000 24000 22000 20000 CAR SALES FORECAST 2014 2015 2016 2017 2018 2019 2020 2021 2022 Positive Normal Negative 54
BECOMING THE INDUSTRY S MOST COST EFFECTIVE PRODUCER OF FASTENERS Jörg Neveling Senior Vice President Production
LEAN AND WELL POSITIONED LOGISTICS AND MANUFACTURING FOOTPRINT
BULTEN HAS A LEAN AND WELL POSITIONED LOGISTICS AND MANUFACTURING FOOTPRINT AND FLEXIBLE SUPPLY CHAIN LEAN AND WELL POSITIONED LOGISTICS AND MANUFACTURING FACILITIES RUSSIA IN HOUSE VS. TRADING (SALES VALUE) LOGISTICS 2% SWEDEN USA GREAT BRITAIN GERMANY CHINA HEAD OFFICE PRODUCTION SALES LOGISTICS PRE DEVELOPMENT PRODUCT DEVELOPMENT POLAND TRADING 38% IN HOUSE 60% Global footprint Production, strong focus in Europe Russia and Asia well established North America production to start in 2018 Bulten produces most products in house and has a significant trading operation to optimize efficiency Trading > flexibility 57
MANUFACTURING FOOTPRINT BERGKAMEN, GERMANY Capacity: 13.5 k tons Dimension range: M10 M16 HALLSTAHAMMAR, SWEDEN Capacity: 14 k tons Dimension range: M10 M30 NIZHNY NOVGOROD, RUSSIA Capacity: 6k tons Dimension range: M6 M24 HUDSON/OHIO, AMERICA Capacity > 500 tons Dimension range: M5 M12 BIELSKO BIALA, POLAND Capacity: 24 k tons Dimension range: M6 M22 BEIJING, CHINA Capacity: > 2.5 k tons Dimension range: M3 M16 58
BULTEN CONTINUES TO GROW AND INVESTS IN A FURTHER PLANT IN POLAND Bulten is taking another step towards becoming the industry's most costeffective fastener manufacturer and continues to strengthen Bulten s market position Bulten has decided to invest around PLN 80.5 million (about SEK 177 million) in a new production plant in Poland to meet future volumes approximately PLN 9.5 million is for around 78,000 m2 of land and PLN 71 million for the building Set up will start in 2017 and production is expected to start in the first half of 2019 Set up is conditional upon obtaining the required permits Built in Radziechowy Wieprz, about 30 km from the existing production plant in Bielsko Biala In the Katowice Special Economic Zone Move from the current Wilkowice logistics centre to the new building 59
FLEXIBLE PRODUCTION BY STANDARDIZATION AND KNOWLEDGE EXCHANGE
FLEXIBLE PRODUCTION BY KNOWLEDGE EXCHANGE 5S SORT, SET IN ORDER, SHINE, STANDARDIZE, SUSTAIN 5 steps to maintain a visual workplace (visual controls and information systems. STANDARDS TS16949, ISO 14001, ISO 18001, ISO 50001 the best, easiest and safest way currently known to achieve a task. PROBLEM SOLVING STANDARDS i.e. PDCA, Ishikawa, 5Why using generally known methods, in an orderly manner, for finding solutions to the well defined problems. LPA (Layered Process Audit) standardized audit performed on a regular, frequent basis by all layers of the organization, in order to verify the compliance of operational standards. 61
FLEXIBLE PRODUCTION BY KNOWLEDGE EXCHANGE WASTE ELIMINATION Maximize value added work. To do this we must identify and eliminate all non value added work. VISUAL MANAGEMENT Communicating information via using visuals to increase clarity and efficiency. TEAMWORK The most effective way of solving problems and achieving defined results. SMED (Single Minute Exchange of Dies) Reduce setup and adjustment times by a systematic analysis of what is actually done and how much time it consumes. 62
FLEXIBLE PRODUCTION BY KNOWLEDGE EXCHANGE TPM (Total Productive Maintenance) A systematic way of working on process and equipment with less waste. All employees taking responsibility for the machines in their area and performing basic maintenance work. FMEA (Failure Mode Effect Analyse) A systematic, proactive method for evaluating a process in order to prevent, eliminate or reduce failures. STANDARDIZED WORK A method of achieving lean gains, by which the best current practices are documented in order to form the baseline for continuous improvement. SIX SIGMA Improving the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. BUSINESS PROCESS MANAGEMENT Aligning processes with business goals, improving processes and establishing measurements to track and monitor performance for continuous improvement and optimization. 63
FLEXIBLE PRODUCTION BY STANDARDIZATION 64
FLEXIBLE PRODUCTION BY STANDARDIZATION GERMANY POLAND RUSSIA SWEDEN Sweden 65
ONE SPECIFIC ITEM FROM ORDER TO DELIVERIES Coldforging Surface treatment Packing Heat treatment Patching Sorting Deliveries + Cologne / Car model + Cologne / Engine Plant + Export + + Export / Far East + + Export / Craiova 66
VALUE ADDED INVESTMENTS/PROJECTS 6
VALUE ADDED INVESTMENTS / PROJECTS Surface treatment Galvanic surface treatment in Poland Zinc Flake surface treatment in Sweden, Germany and China Heat treatment of high temperature parts in Sweden Patching line for polyamide coating in Poland Production cell for plug production in Poland Injection molding for specific fastener / polyamide application 68
SUMMARY
SUMMARY AND GOING FORWARD Bulten will continue to grow with sustainable contracts Bulten is positioned to support future technology in the automotive industry EV, hybrids, autonomous cars Opportunities to grow in emerging markets Added value Strong financial platform to support further growth 70
HALLSTAHAMMAR OPERATION Juha Kauppinen Managing Director, Bulten Hallstahammar
THE BEGINNING, BULTEN ESTABLISHED 1873 IN HALLSTAHAMMAR The business idea was production of high quality nails, nuts and bolts Started with hot forging machines bought in England Driven by water power from the river beside the factory Standardisation and high quality already from the beginning 72
VOLUME AND NUMBER OF EMPLOYEES OVER 140 YEARS IN HALLSTAHAMMAR The old Bulten 1873 1930 Ton 0,5 Emp 20 1973 Ton 33.000 Emp 2.200 15 ton/emp x 3 Bulten today Ton 60.000 Emp 1.300 46 ton/emp HHR 1991 2017 Ton 5.000 Emp 200 Ton 14.000 Emp 265 25 ton/emp 50 ton/emp x 2 73
FACTS BULTEN HALLSTAHAMMAR, SWEDEN Located: Products: production, warehouse, engineering Fasteners with high demands, stainless, Taptites and special fasteners Facility: Capacity: Loading: 48.000 m2 14.000 tonnes 14.000 tonnes Employees: 265 Dimensions: Length up to: Stainless: M10 to M30 300 mm M6 to M12 Certificates / awards Quality ISO/TS 16949 Environment ISO 14001 VQE. Volvo Car Q1. Ford 74
BULTEN HAS BEEN AWARDED VOLVO CARS QUALITY EXCELLENCE AWARD Bulten s unit in Hallstahammar has been awarded Volvo Cars Quality Excellence (VQE) Award Classified in accordance with the eleven VQE elements including product quality, delivery performance, logistics, LEAN and improvement work 75
HALLSTAHAMMAR PRODUCTION Yearly Ton Pace 2017 Q2 2016 2015 2014 High Value mix 2013 2012 2011 2010 2009 2008 2007 2006 Low value mix 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 76
STAINLESS DEVELOPMENT 2009 2017 HEAT RESISTANCE 700 Tonnes 600 500 400 300 + 20% 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 Pace 2017 Q2 Approx. 20 % yearly growth. Major investments has ben done towards stainless the past years and continue coming year 77
WHAT IS DRIVING THE STAINLESS DEVELOPMENT As illustrated from the chart below. New and modern Petrol Engines run at high temperatures (blue). Downsizing in combination with more power gives high temperature. Hence to secure the hot joints, a heat resistant fastener are often needed. Se photo to the right. Bulten has been already awarded a number of FSP Engine programs, Petrol & Diesel. Many still in the ramp up, especially for Petrol & Petrol Hybrid variants. Typical glow in engine testing. BULTEN CAPITAL MARKETS DAY 21 SEPTEMBER2017 78
OUR MOST REQUESTED PRODUCT 79
INTRODUCTION Manufacturing steps and factory tour
BULTEN HALLSTAHAMMAR BASIC MANUFACTURING STEPS WITH HIGH EFFICIENCY Wire Washerassembly Induction Threading Assembly Coldforgin Threading Heat treatment Surface treatment Inspection Packing Stocking Tooling Turning Drilling Straight. Patch Wax Extend operations = higher complexity = creates value Alloyed materials = Special Properties = creates value 81