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Investor Relations – 2009 Q2 Seco Tools Group Q2-2009.

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Presentation on theme: "Investor Relations – 2009 Q2 Seco Tools Group Q2-2009."— Presentation transcript:

1 Investor Relations – 2009 Q2 Seco Tools Group Q2-2009

2 Investor Relations – 2009 Q2 Highlights Q2 Revenue growth was -40% in fixed currencies and -30% in SEK Stabilization on low level We continue to win market-share EBIT-margin for Q2 was 3,4% vs. 22,3% last year Margin decrease driven by the dramatic drop in volume Stable prices Savings and currency gains partly offsets volume decline Ongoing saving programs increased and ahead of time plan Initiated programs increased with 100 MSEK – annual savings now estimated to be around 600 MSEK whereof 500 will impact 2009 Workforce reduction now estimated to be approx 850 Q2 restructuring costs was 24 MSEK. Around 10 MSEK in additional restructuring costs for the already started programs are estimated for H2 We stay the course! Maintain strategic direction Launches of several new competitive products - Square 6 released in Q2 Uncertain 2009 Stock reductions at end customers impact current demand situation No sign of a near upturn

3 Investor Relations – 2009 Q2 Growth Analysis Q2 CEE excl. ALG: -38% Fixed currency - 41% Acquisition+ 1% Currency+10% SEK total- 30% Seco Tools Group

4 Investor Relations – 2009 Q2 Y-o-Y: 2008+ 4% 2009: Q1- 30% Q2- 43% 2009- 37% Financial keydata

5 Investor Relations – 2009 Q2 Seco revenues in fixed currencies. Macro data up to 30/04/2009. Financial keydata

6 Investor Relations – 2009 Q2 Y-o-Y: 2008 + 3% 2009: Q1- 28% Q2- 44% 2009- 36% Financial keydata

7 Investor Relations – 2009 Q2 Seco revenues in fixed currencies. Macro data up to 31/05/2009. Financial keydata

8 Investor Relations – 2009 Q2 Y-o-Y: 2008+17% 2009: Q1- 22% Q2- 34% 2009- 28% Financial keydata YTD -33% excl ALG

9 Investor Relations – 2009 Q2 Y-o-Y: 2008+ 5% 2009: Q1- 28% Q2- 31% 2009- 30% Financial keydata

10 Investor Relations – 2009 Q2 Financial keydata

11 Investor Relations – 2009 Q2 Financial keydata

12 Investor Relations – 2009 Q2 The decline in historical perspective

13 Investor Relations – 2009 Q2 Total savings –In order to compensate for somewhat lower volumes larger savings activities have been initiated –Annual cost level will be reduced by 600 MSEK (previously 500 MSEK) relating to both direct and fixed costs –Impact on 2009 result is approx. 500 MSEK (previously 400 MSEK) Total workforce will be reduced by approx 900 people (previously 800), whereof approx 200 are staff. Reductions include time- and salary reductions corresponding to around 220 full time equivalents Cost adjustment measures

14 Investor Relations – 2009 Q2 Personnel reduction plan * Not reported temporaries Reductions ahead of time plan Total reductions approx 50 people higher

15 Investor Relations – 2009 Q2 Accumulated market growth - goal: 0,2 percentage unit per year referens We are taking market share!

16 Investor Relations – 2009 Q2 Square 6 A new family of square shoulder milling products Six cutting edges per insert gives optimal economy without compromising performance Product very well received since launch in Q2

17 Investor Relations – 2009 Q2 –Customer intimacy and understanding the customer’s manufacturing process –Solutions orientation –High performance products and services –Global competence and support structures –Distributors Customer Intimacy and Solution Orientation Strategic Direction We stay the course!

18 Investor Relations – 2009 Q2 Positioning for Growth Number of employees 40% field sales and technicans close to customers 2005 till 2008 Capital expenditure (excl acquisitions) Time for payback and consolidation

19 Investor Relations – 2009 Q2 Invoicing, SEK M1,1801,697 EBIT margin 3, 4 %22, 3 % EBIT, SEK M 40 378 Earnings per share (SEK) 0, 10 1, 76 ROCE (Roll 12 mths)16, 9 %38, 2 % Net debt / equity ratio 1, 04 0, 99 Q2-2009 Q2-2008 Financial keydata

20 Investor Relations – 2009 Q2 Result development Q2-2009 Rev. / EBIT 1 180 / 3,4% Volume and other Restructuring Currency Savings

21 Investor Relations – 2009 Q2 Financial keydata Financial target

22 Investor Relations – 2009 Q2 - Cash Flow higher than EBIT - Reduced level of working capital - Lower investment level Operational Cash Flow Operating cash flow includes changes in working capital but excludes acquisitions Financial keydata

23 Investor Relations – 2009 Q2 Financial keydata Working capital includes trade receivables, inventories and trade payables

24 Investor Relations – 2009 Q2 Financial keydata Working capital includes trade receivables, inventories and trade payables

25 Investor Relations – 2009 Q2 Financial keydata

26 Investor Relations – 2009 Q2 Financial keydata

27 Investor Relations – 2009 Q2 Financial keydata

28 Investor Relations – 2009 Q2


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