BULTEN CAPITAL MARKETS DAY · 2017-09-22 · PRODUCTION SALES LOGISTICS ... LMC Automotive reports...

21 SEPTEMBER 2017

BULTEN CAPITAL MARKETS DAY

AGENDA

2

13:00‐14:30

Introduction Kamilla OresvärdSenior Vice President Corporate Communications

Corporate Presentation Tommy AnderssonPresident and CEO

Strong financial platform Helena WennerströmExecutive Vice President and CFO

Full Service Provider to the international automotive industry & Highlights region West

Neal ThomasSenior Vice President Marketing and Sales region West

Technology leader meeting future demands & Highlights region East

Magnus CarlungerSenior Vice President Marketing and Sales region East

Becoming the industry’s most cost effective producer of fasteners

Jörg NevelingSenior Vice President Production

Hallstahammar operation Juha KauppinenManaging Director, Bulten Hallstahammar

14:30‐16:30

Factory tour including coffee

BULTEN CAPITAL MARKETS DAY, 21 SEPTEMBER 2017

CORPORATE PRESENTATION

Tommy AnderssonPresident and CEO

4

BULTEN DEVELOPMENT 2011‐2017

2011FinnvedenBultenlisted at Nasdaq Stockholm

2012Established in Russia, JV with GAZ

2014Focus on fasteners for the automotive industry• Divestment of

Finnveden Metal Structures

• New Management• Name change to

Bulten

2016Bulten AB (publ) moved up to Nasdaq Stockholm’s Mid Cap segment

2017Established in the US, JV with Ramco

DIVESTMENT OF FINNVEDENMETAL STRUCTURES


BULTEN DEVELOPMENT 2011‐2017

3094 2972 3061

24142693 2676 2760

0

500

1000

1500

2000

2500

3000

3500

2011 2012 2013 2014 2015 2016 2017 12 m rolling

5

Sales

CAPTURE FUTURE GROWTH

DIVESTMENT OF FINNVEDENMETAL

STRUCTURES

ALL FINANCIAL TARGETS REACHED


6

SUSTAINABLE BUSINESS

SEK 17 million/yearStarted late 2016

SEK 130 million/year Started late 2015 with slow ramp up, full pace in 2020. FSP

SEK 60 million in totalContract period 2017‐2019. China

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/yearStarts 2018, full pace in 2019/2020.Bulten part USD 5.0 million/year

EUR 30 million/yearStarts 2018, full pace in 2020. FSP

RAMP UP OF NEW CONTRACTS NEW SIGNED CONTRACTS, NOT YET STARTED

EUR 56.2 MILLION/YEAR OF LONG TERM SUSTAINABLE BUSINESS


FOUNDATION

The strategy moving forward is based on continuing to strengthen our core values and success factors with a strong FSP offering.

7

TECHNOLOGY LEADER

GEOGRAPHIC PROXIMITY

FINANCIAL PLATFORM

QUALITY LEADER

EXPERIENCED MANAGEMENT &

EMPOWERED EMPLOYEES

FULL SERVICE PROVIDER

(FSP)

PROFESSIONAL

DEDICATED

INNOVATIVE

EMPOWERED

SUCCESS FACTORS 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

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

Looking into every possible way to reduce weight on cars and powertrain

Technology Board established

8BULTEN CAPITAL MARKETS DAY, 21 SEPTEMBER 2017

GLOBALIZATION

Bulten is the only automotive fastener company that can support with local content in Europe, Russia, Asia and NAFTA

9

SWEDEN ●●●●●●

GREAT BRITAIN ●●●

USA ●●●

POLAND ●●●

GERMANY ●●●

RUSSIA ●●●●

CHINA ●●●●

HEAD OFFICE

PRODUCTION

SALES

LOGISTICS

PRE DEVELOPMENT

PRODUCT DEVELOPMENT

●●●●●●


STRONG FINANCIAL PLATFORM

Helena WennerströmExecutive 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


12

ALL FINANCIAL TARGETS REACHED IN Q2, 2017

Q2

R12

Profitable organic growth more strongly than the industry average

Operating margin of at least 7%

At least 15% At least one third of net earnings after tax

3.0%

3.2%

7.9%

7.6%

Na15.0%17.4%

excl. goodwill

ROCEMargin

✔

Growth

✔

Dividend

2.01 SEK

7.93 SEK

EPS

4.50 SEK

(3.50 + 1.00SEK /share)62% for 2016

EPSdevelopment

✔ ✔


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


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

14

Source: LMC Automotive Q2, 2017. ACEA eight months, 2017


LMC AUTOMOTIVE REPORTS FOR AUTOMOTIVE PRODUCTION IN EUROPE

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.

15

PRODUCTION GROWTH RATE (YEAR ON YEAR) LIGHT VEHICLES EUROPE

2,9%

2,0%

4,1%

2,7%

1,8% 1,9%

0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

2014E 2015E 2016E 2017E 2018E 2019E

Q1 2017 Q2 2017

PRODUCTION GROWTH RATE (YEAR ON YEAR) HEAVY COMMERCIAL VEHICLES (>15t) EUROPE

-12,5%

4,6%

7,3%5,1% 4,3%4,0%

‐15%

‐10%

‐5%

0%

5%

10%

2014E 2015E 2016E 2017E 2018E 2019E

Q1 2017 Q2 2017

Source: LMC Automotive Q2 2017


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.

16

BULTEN MARKET SHARE DEVELOPMENT

45%56% 60% 60%

0%10%20%30%40%50%60%70%

Market share of European fastener FSPcontracts

2013

2014

2015

2016

* Based on data from EIFI (European Industrial Fasteners Institute)

11%14%

17% 17%

0%

5%

10%

15%

20%

Market share of total European fasteners

2013

2014

2015

2016


FINANCIAL GUIDELINES

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

THE GROUP12 M ROLLING

Q2FULL 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


NO SEASONALITY IN BULTEN’S UNDERLYING DEMAND – QUARTERLY VOLUMES AND SIGNIFICANT RESULTS ARE AFFECTED BY THE NUMBER OF PRODUCTION DAYS AND BY MODEL SHIFTS

18

57

7.9%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

0

10

20

30

40

50

60

70

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116

Q216

Q316

Q416

Q117

Q217


19 20

23

20 1921

10

16

22 21 22

17

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Q1: 62 days Q2: 60 days Q3: 48 days Q4: 60 days

AVG. NUMBER OF PRODUCTION DAYS PER MONTHQUARTERLY VOLUMES

EBITEBIT margin

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

19

TEN LARGEST SHAREHOLDERS, 31 AUGUST 2017 Total number of Shareholders 7 075

Source: Euroclear Sweden AB

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


BULTEN DEVELOPMENT

0

500

1000

1500

2000

2500

3000

3500

2013 2014 2015 2016 2017 12 m rolling

20

6.0%

5.5%6.1%

7.5%

7.6%

50 SEK

67 SEK

82 SEK

89 SEK

120 SEK

GROUP STRUCTURE GROWTH AND DIVESTMENT

CONSOLIDATION GROWTHCONSOLIDATION

SalesShare development

Operating margin

Bulten part of FinnvedenBultenGroup.

Divestment of FinnvedenMetal Structures. Several new FSP contracts.

Executing new FSP contracts.

Focus on operation/optimization program

Investments for the future and executing new contracts

+34% growth

+12% growth

Flatdev.

CAPTURE FUTURE GROWTH

+3% growth


FULL SERVICE PROVIDER TO THE INTERNATIONAL AUTOMOTIVE INDUSTRY & HIGHLIGHTS REGION WEST Neal ThomasSenior Vice President Marketing and Sales region West

WHAT IS FSP (FULL SERVICE PROVIDER)?

22

• 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

TRADITIONAL SETUP BULTEN FSP SETUP


WHAT IS FSP (FULL SERVICE PROVIDER)

TRADITIONAL LOGISTICS SOLUTION


BULTEN’S LOGISTICS SOLUTION ‐ FSP

Jaguar E‐Pace, Jaguar I‐Pace Electric Magna‐Steyr Graz (Contract with JLR)• 420 active articles• 2,450 tons/year

24

FULL SERVICE PROVIDER ‐ PROVEN TRACK RECORD

Autoliv• 80 active articles• 500 tons /year

Nissan SunderlandBulten 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 B‐MAX Romania (BBB) • 480 active articles• 1,300 tons/year

Ford Fiesta Cologne and worldwide• 400 active articles• 10,000 tons/year

Range Rover Evoque Halewood (D8 Platform)• 400 active articles platform• Annual Halewood 5,800 tons

Land Rover Discovery SportHalewood (D8 Platform)• 400 active articles platform• Annual Halewood 5,800 tons

Ford Sigma Engine Bridgend (BBB)• 80 active articles• 1600 tons/year

Land Rover AJ200 Engine • 100 active articles• 1700 tons/year

20152014201120072006200520011998 2016 2017

Land Rover Discovery , Land Rover Defender • 525 active articles• 4,560 tons/year


HIGHLIGHTS REGION WEST

• Business opportunities • Establishment in USA

SALES REGION WEST

Sales Units:

26

SWEDEN

GREAT BRITAIN

USA

POLAND

GERMANY

RUSSIA

CHINA

Sales units:

Bulten Ltd.

Bulten GmbH

Bulten North America Inc. and Ram‐Bul LLC


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


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

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

COUNTRY NEW CAR SALES 2016

CHINA 23,693,000

USA 17,465,000

EU 14,641,000


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


PRESENTATION TITLE

APRIL 14, 2017 | JEFF MELICK

BULTEN CAPITAL MARKETS DAY, 21 SEPTEMBER 2017 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


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


TECHNOLOGY LEADER MEETING FUTURE DEMANDS & HIGHLIGHTS REGION EAST

Magnus CarlungerSenior Vice President Marketing and Sales region East

CONTENT

• Technology leader• Trends and driving forces for electrification• Highlights region East

THE LINE‐ GIVEN BY NATURE


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.

36

Keep assembled parts from separating Keep assembled parts from sliding

The Mission


UTILIZE THE ULTIMATE STRENGTH

37

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.


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

38

0

2

4

6

8

10

12

14

0 1 2 3 4 5 6 7

Need nu

mbe

rs of screw

s


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

39

CommunalizationReduction of part number variety– More of the same = Win‐Win

Simplified AssemblyReduction of assembly cost

– IPC = Smarter fastener solutions

Weight reductionReduce emission

High tech fastener for the future


TECHNOLOGY LEADER – COMPETENCE HUB


TRENDS AND DRIVING FORCES FOR ELECTRIFICATION

ELECTRIC POWERTRAIN IN AUTOMOTIVE

42

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


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 CO2 emissions worldwide is combustion of fossil fuels coal, oil and gas

43

Methane; 17%

Other gases; 11,90%

Nitrous oxide; 6,00%

Fluorinated gases; 0,80%

Carbon dioxide; 64,30%

MAJOR GREENHOUSE GASES FROM PEOPLE’S ACTIVITIES


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”


0,00

5,00

10,00

15,00

20,00Petrol

Diesel

Petrol + hybrid

Diesel + hybridEV Year 2017

EV Year 2020

EV Year 2025

TOTAL COST OF OWNERSHIP / 100 KM (EUR)

IMPORTANT FACTOR FOR EV BREAKTHROUGH

45

Source: IHSBULTEN CAPITAL MARKETS DAY, 21 SEPTEMBER 2017

STUDY – ELECTRIFICATION EFFECT PIECES

46

05001000150020002500300035004000

Exterior Trim BodyConstruction

Interior Trim SafetyComponents &

Seats

Chassis Electrical Engine SVO

Combustion vs Electrified

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

Electrical 175 265 91 Electrification

Engine 164 53 ‐111 Engine removal

SVO 11 7 ‐4

Total fasteners 2437 5342 2905Source Bulten

Delivery value per car approx. 40%

higher!


47

A PARADIGM OR A TREND

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Européconservative

Européaggressive

Chinaconservative

China aggresive Koreaconservative

Koreaaggressive

NAFTAconservative

NAFTAaggressive

BEV conser. BEV aggr. PHEV conserv. PHEV aggr.

Source: IHSBULTEN CAPITAL MARKETS DAY, 21 SEPTEMBER 2017

FORECAST EV VOLUMES 2025

Total volume conservative forecast: 6.4 MPcs 5.6% of global volume

Total volume aggressive forecast: 17.8 MPcs 15.6%

HIGHLIGHTS REGION EAST

• Russia• China

SALES REGION EAST

Sales Units:

49

SWEDEN

GREAT BRITAIN

USA

POLAND

GERMANY

RUSSIA

CHINA

Sales units:

Bulten Sweden AB

Bulten Polska S.A

Bulten Rus LLC

Bulten Fasteners (China) Co Ltd


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

50

0

10

20

30

40

50

60

70

80

90

100

6 DIMENSION ANALYSIS

Russia China Sweden


Source: Hofstede

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


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 double‐digit growth for the third month in a row

52

0

500

1000

1500

2000

2500

3000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

CAR SALES FORECAST

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.


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


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


20000

22000

24000

26000

28000

30000

32000

2014 2015 2016 2017 2018 2019 2020 2021 2022

CAR SALES FORECAST

Positive Normal Negative

BECOMING THE INDUSTRY’S MOST COST EFFECTIVE PRODUCER OF FASTENERSJörg NevelingSenior 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

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

LEAN AND WELL POSITIONED LOGISTICS AND MANUFACTURING FACILITIES


SWEDEN ●●●●●●

GREAT BRITAIN ●●●

USA ●●●

POLAND ●●●

GERMANY ●●●

RUSSIA ●●●●

CHINA ●●●●

IN‐HOUSE VS. TRADING (SALES VALUE)

IN‐HOUSE

60%

LOGISTICS

2%

TRADING

38%

HEAD OFFICE

PRODUCTION

SALES

LOGISTICS

PRE DEVELOPMENT

PRODUCT DEVELOPMENT

●●●●●●

BERGKAMEN, GERMANY

Capacity: 13.5 k tonsDimension range: M10‐M16

BIELSKO‐BIALA, POLANDCapacity: 24 k tonsDimension range: M6‐M22

BEIJING, CHINACapacity: > 2.5 k tonsDimension range: M3‐M16

HALLSTAHAMMAR, SWEDENCapacity: 14 k tonsDimension range: M10‐M30


MANUFACTURING FOOTPRINT

NIZHNY NOVGOROD, RUSSIACapacity: 6 k tonsDimension range: M6‐M24

HUDSON/OHIO, AMERICACapacity > 500 tonsDimension range:M5‐M12

BULTEN CONTINUES TO GROW AND INVESTS IN A FURTHER PLANT IN POLAND

Bulten is taking another step towards becoming the industry's most cost‐effective 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


FLEXIBLE PRODUCTION BY STANDARDIZATION AND KNOWLEDGE EXCHANGE

FLEXIBLE PRODUCTION BY KNOWLEDGE EXCHANGE

61

• SORT, SET IN ORDER, SHINE, STANDARDIZE, SUSTAIN

• 5 steps to maintain a visual workplace (visual controls and information systems.

• TS16949, ISO 14001, ISO 18001, ISO 50001

• the best, easiest and safest way currently known to achieve a task.

• i.e. PDCA, Ishikawa, 5Why

• using generally known methods, in an orderly manner, for finding solutions to the well‐defined problems.

• standardized audit performed on a regular, frequent basis by all layers of the organization, in order to verify the compliance of operational standards.

5S

STANDARDS

PROBLEM SOLVING STANDARDS

LPA (Layered Process Audit)


• Maximize value added work. To do this we must identify and eliminate all non‐value added work.

• Reduce setup and adjustment times by a systematic analysis of what is actually done and how much time it consumes.

WASTE ELIMINATION

SMED (Single Minute Exchange of Dies)


62

• Communicating information via using visuals to increaseclarity and efficiency .

VISUAL MANAGEMENT

• The most effective way of solving problems and achieving defined results.

TEAMWORK


• 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.

• Improving the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.

TPM (Total Productive Maintenance)

SIX SIGMA

• A systematic, proactive method for evaluating a process in order to prevent, eliminate or reduce failures.

FMEA (Failure Mode Effect Analyse)

• A method of achieving lean gains, by which the best current practices are documented in order to form the baseline for continuous improvement.

STANDARDIZED WORK


63

• Aligning processes with business goals, improving processes and establishing measurements to track and monitor performance for continuous improvement and optimization.

BUSINESS PROCESS MANAGEMENT


FLEXIBLE PRODUCTION BY STANDARDIZATION


FLEXIBLE PRODUCTION BY STANDARDIZATION

65

Sweden

POLAND

SWEDENRUSSIA

GERMANY


Surface treatment

Patching

ONE SPECIFIC ITEM FROM ORDER TO DELIVERIES

+ Cologne / Engine Plant

+ Export

+ Export /

Far East +

+ + Export /

Craiova

Cologne / Car model

+

Sorting

Packing

Deliveries

Coldforging

Heat treatment


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


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


HALLSTAHAMMAR OPERATION

Juha KauppinenManaging 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


VOLUME AND NUMBER OF EMPLOYEES OVER 140 YEARS IN HALLSTAHAMMAR

Ton 5.000Emp 200

73

Theold Bulten

HHR

Bulten today

1873

1930

1973

1991

2017

Ton 0,5Emp 20

Ton 60.000Emp 1.300

Ton 33.000Emp 2.200

Ton 14.000Emp 265

15 ton/emp

46 ton/emp

25 ton/emp

50 ton/emp

x 3

x 2


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FACTS BULTEN HALLSTAHAMMAR, SWEDEN

Located: production, warehouse, engineering

Products: Fasteners with high demands, stainless, Taptitesand special fasteners

Facility: 48.000 m2

Capacity: 14.000 tonnes

Loading: 14.000 tonnes

Employees: 265

Dimensions: M10 to M30

Length up to: 300 mm

Stainless: M6 to M12

Certificates / awards• Quality ISO/TS 16949

• Environment ISO 14001

• VQE. Volvo Car

• Q1. Ford


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


HALLSTAHAMMAR PRODUCTION

76

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Pace 2017‐Q2

Yearly Ton

Low valuemix

High Value mix


STAINLESS DEVELOPMENT 2009 – 2017 HEAT RESISTANCE

Approx. 20 % yearly growth.

Major investments has ben done towards stainless the past years and continue coming year

77

0

100

200

300

400

500

600

700

2009 2010 2011 2012 2013 2014 2015 2016 Pace2017‐Q2

Tonnes

+ 20%


WHAT IS DRIVING THE STAINLESS DEVELOPMENT

78.

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 SEPTEMBER 2017

OUR MOST REQUESTED PRODUCT


INTRODUCTION

Manufacturing steps and factory tour

BULTEN HALLSTAHAMMARBASIC MANUFACTURING STEPS WITH HIGH EFFICIENCY

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Wire

Inspection

”Patch”Wax

Surface

treatment

TurningDrilling

Heat

treatment

Washer‐assembly

Threading

InductionThreading

Tooling

Coldforgin

Assembly

Straight.

Packing

Stocking

Extend operations =higher complexity = creates value

Alloyed materials =Special Properties = creates value


BULTEN CAPITAL MARKETS DAY · 2017-09-22 · PRODUCTION SALES LOGISTICS ... LMC Automotive reports...

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Transcript of BULTEN CAPITAL MARKETS DAY · 2017-09-22 · PRODUCTION SALES LOGISTICS ... LMC Automotive reports...