Page 1

JANUARY - SEPTEMBER 2021 INTERIM REPORT BULTEN Several major , strategic contracts signed in a quarter blighted by semiconductor shortage THIRD QUARTER • Net sales amounted to SEK 764 ( 853 ) million , a decrease of -10.5 % on the same period last year . • Operating earnings ( EBIT ) totaled SEK 31 ( 40 ) million , equating to an operating margin of 4.1 % ( 4.7 ) . • Earnings after tax amounted to SEK 16 ( 17 ) million . • Order bookings amounted to SEK 830 ( 1,322 ) million , a decrease of -37.2 % on the same period last year . • Cash flow from operating activities totaled SEK -122 ( 157 ) million . Earnings per share were SEK 0.68 ( 0.91 ) . Q3 • Bulten signed a strategically important agreement in China regarding the supply of fasteners to a leading provider of consumer electronics . The agreement has an estimated annual value of approximately SEK 50 million . Deliveries started in the middle of the quarter . • Bulten strengthened an existing FSP ( Full Service Provider ) contract for the supply of fasteners , with a further order from a European automotive manufacturer . The order is worth approximately SEK 68 million per annum . Deliveries are estimated to start in Q4 2021 , will reach full pace in 2022 , and will run for three years . • Bulten was awarded a new FSP ( Full - Service Provider ) contract by a European automotive manufacturer , which is also a new customer for Bulten . The contract relates to supply of fasteners for an electric vehicle program that is under development . The order value is approxi mately SEK 220 million a year at full production . Deliveries are estimated to start in the third quarter of 2022 , reaching full pace by 2025 . · JANUARY - SEPTEMBER • Net sales amounted to SEK 2,777 ( 2,115 ) million , an increase of 31.3 % on the same period last year . Adjusted for acquisitions , the increase amounted to 27.6 % . The acquisition of PSM took place on February 28 , 2020 . Operating earnings ( EBIT ) totaled SEK 184 ( 24 ) million , equating to an operating margin of 6.6 % ( 1.2 ) . • Earnings after tax amounted to SEK 122 ( -13 ) million . • Order bookings totaled SEK 2,787 ( 2,419 ) million , an increase of 15.2 % on the same period last year . • Cash flow from operating activities totaled SEK 3 ( 271 ) million . • Earnings per share were SEK 5.69 ( -0.33 ) . • Net debt amounted to SEK 623 ( 605 ) million . Net debt ( excluding lease liabilities ) totaled SEK 285 ( 238 ) million . • The equity / assets ratio was 50.9 % ( 49.7 ) at the end of the period . The equity / assets ratio ( excluding lease liabilities ) totaled SEK 56.6 % ( 56.0 ) . CEO'S COMMENTS " The shortage of semiconductors that has been impacting the global automotive industry since Q2 2021 was an even greater obstacle during Q3 . A number of our customers ' production units have been closed or running at reduced capacity during certain periods . The negative impact of the semiconductor shortage on Bulten's sales is estimated at 25-30 % during the third quarter , which is in line with LMC Automotive's estimated loss of production on the European market . Underlying demand in the consumer stage remains strong , but at present vehicle production cannot keep up with demand . During the quarter , Bulten's net sales decreased by -10.5 % compared to the corresponding quarter last year - a quarter when volumes had started to recover after the pandemic . Reduced volumes and lower capacity utilization in Q3 meant that we had to take necessary decelerating measures to reduce our stock , which has had a negative impact on earnings in the short term . The shortage of semiconductors , along with price rises for steel , are external macroeconomic and partly geopolitical factors that are expected to continue affecting Bulten's sales and margins negatively for the rest of 2021 . From a longer - term perspective , Bulten's growth and earning capacity is very good . The inflow of new contracts , from both new and existing customers in and outside of automotive , has never been as strong as it has to date in 2021. As announced previously , Bulten has won a number of major contracts during the quarter , where our broad product offering and our sustainability solutions have been key factors in why customers chose us as a supplier . In addition , we can see that the measures we have taken as part of our ' Stronger 24 ' strategy are producing results , both in the shape of new business and productivity , and we continue to roll the strategy out to build an even stronger Bulten . " Anders Nyström , President and CEO