Telephone conference February 16th 2012
CEO comment to the full-year report
”The integration process following the Hamelin
merger and efforts to realise synergies have
progressed as planned. Cash Flow was robust and
key savings measures will successively reduce
costs in the company in 2012. However, economic
uncertainty in Europe, higher raw material prices
and tough competitionhave put pressure on our
margins. We are running several efficiency
projects to secure higher margins, long-term
competitiveness and profitability.”
Page 2
Bong’s markets in Q4
• Several restructuring measures within the industry
in France and Spain
• DeVroede, the largest overprinter in Benelux,
insolvent and taken over by Mayer
• West European envelope volumes year to date
down 4% according to FEPE, Q3 -6%, Q4 -9%.
Related to economic slowdown
• Uncertainty within the retail sector hampered gift
bag growth in Q4
• Continued growth in packaging for E-trading
Page 3
Bong sales development 2011
SEK million
Net Sales
At fixed exchange rates
ProPac sales
Full year
Oct-Dec
3 203 (2 326)
850 (939)
3371
888
507 (390) +30%
150 (157)
•Additional Sales Hamelin
•Air bubble bags
•Tyvek®
Page 4
Operating Profit (EBIT) by quarter
SEK million
25
28
17
10
20
31
13
13
26
13
8
11
16
15
-9
-17
-106
Q407
Page 5
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Rolling 12 month EBIT
SEK million
100
80 71
85
77
60
33
40
44
59 54 60
64
79
74
60
57 55
65 65 63
46
40 39
40,1
20
0
-20
-40
-49
-60
-80
-100
Page 6
-91
Q1/05Q4/05
Q1/06Q4/06
Q1/07Q4/07
Q1/08
Q4/08
Q1/09
Q4/09
Q1/10
Q4/10
-78
-73
Q1/11
Q4/11
Cash Flow by quarter
SEK million
87
39
51
41
16
67
58 51
18
30 37
13
3
2
-9
-32
-260
-260
Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q407 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11
Page 7
Cash flow breakdown
SEK million
2011
Jan – Dec
2010
Jan -Dec
EBITDA
Financial Net
151
-63
23
-41
Restructuring outflow
Tax paid & other provisions
Change in Working Capital
-90
39
112
0
43
28
149
53
-12
-330
137
-277
Cash Flow from operations
Investments & Acquisitions
Cash Flow after Investing Activities
Page 8
Net loan debt
SEK million
1062
158
103
1026
158
103
1021
160
105
Pension Debt
1026
947
Owner Loan and
Convertibles
162
Bank Loans etc.
161
107
103
598
582
122
120
801
Page 9
476
462
Q2 2010
Q3 2010
Q4 2010
765
756
758
Q1 2011
Q2 2011
Q3 2011
682
Q4 2011
Current financial targets (2009-2011)
Target
1. EBIT margin
6%
Actual Comments
2011
1,3% Target was set pre Hamelin
merger
2. Average ProPac growth p.a.
25%
31% Target achieved
3. Net debt/EBITDA
<3,0
>6,0 Target was set pre Hamelin
merger
No new Financial Targets
have been set yet
Page 10
Merger synergies follow-up
Accelerated
Growth
Higher Cost
Efficiency
Improved
Cash Flow
Page 11
• Stronger plattform to grow our
envelope business
• Achieved
• Drive growth in ProPac
• Foundation in place
•
•
Less intercompany transactions/freight etc
In progress
• More benchmarking and knowledge sharing
• In progress
• Better purchasing
• Achieved
• Better payment terms
•
Achieved
• Lower inventory levels
•
In progess
• Sale of idle assets
•
Achieved
Restructuring programme update
Belgium
Scandinavia
UK
•
•
•
•
•
Project completed September 2011
60 people
Yearly savings 40 MSEK
First impact Q4-2011
Costs reserved 2010
• Adapting to lower demand in Sweden, Denmark, and Norway
• Approx. 55 people
• 23 MSEK one-time cost charged to P&L in Q4-2011
•
•
•
•
Efficiency improvement project
Approx. 30 people
Yearly savings 5-10 MSEK
Costs already taken in P&L
In total, around 235
employees have left
the company since
the merger
Page 12
Bong sales in Russia
SEK Million
73
66
53
49
2007
Page 13
66
2008
2009
2010
Key events 2011
• Building extension
• Additional machines
• Increased end-user focus; sales office in Moscow
2011
ProPac update
• New organisational set up in place – separate
business unit
• Air bubble bags and padded bags showing good
growth
• Retail gift bags and European gift wrapping concept
growing in spite of slow down in the retail sector
• Starting up machinery for e-business fulfilment
initiative - Angus & Wright acquisition
• Additional converting and printing capacity for Retail
gift bags installed in Nybro
• Innovation work with Tyvek® and other security
products ongoing
Page 14
Board of directors dividend proposal
Bong´s priority at present is to reduce its debt in
light of the economic uncertainty in Europe and the
weak earnings in 2011. In line with this the Board of
Directors is proposing that no dividend be paid for
2011. A dividend of SEK 1 per share was paid for
2010.
Page 15
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