Investor Relations – 2009 Q1 Seco Tools Group Q1-2009.

Investor Relations – 2009 Q1

Seco Tools GroupQ1-2009


Highlights Q1

• Revenue growth was -28% in fixed currencies and -17% in SEK

• Decrease relatively evenly spread between countries and regions

• We continue to win market-share

• EBIT-margin for the quarter 7,0% (excl. restructuring 9,1%) vs. 24,7% last year

• Impacts from saving programs and currency impact only partly offsets volume decline

• Ongoing saving programs

• Programs announced in November and February comprising among other things employee reductions of 800 employees is running according to plan

• Total annual savings estimated to 500 MSEK, whereof 400 will impact 2009. Impact in Q1 is 68 MSEK

• Around 30 MSEK in additional restructuring costs estimated for Q2

• Uncertain 2009

• Stock reductions at end customers impact current demand situation

• Sales levels appear to have stabilized at low level but demand situation very difficult to assess.

• We stay the course!

• Maintain strategic direction

• Launches of several new competitive products

• New subsidiaries formed in Indonesia, Brazil and India


Growth Analysis Q1

Eastern Europe excl. ALG: -33%

Fixed currency -29 %Acquisition + 1 %Currency +11 %

SEK total -17 %

Seco Tools Group

I nvoicing in local currency

-30%-28%

-22%

-34%

-28%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

WesternEurope

NAFTA EasternEurope

Asia SouthAmerica


Seco Tools Total Monthly Revenues(fixed currency)

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 0002

00

4

20

05

20

06

20

07

20

08

20

09

TS

EK

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

% Y

-O-Y

Sales Y-o-Y Change 3 per. glid. med. (Y-o-Y Change)

Jan-Mar: -29%*)

Y-o-Y:2008 + 6%2009:Jan - 29%Feb - 31%Mar - 26%*)

Q1 - 29%

*) -30% acc. excl. structure

-27% monthly excl. structure


Seco Tools Revenues, SEK M(Fixed currencies)

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Ro

llin

g 4

Q

0

500

1 000

1 500

2 000

2 500

Qu

art

er

Quarter 4Q Rolling

Financial keydata


Seco Tools RevenuesYear-on-Year Change %

(Fixed currencies)

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Ro

llin

g 4

Q

Quarter 4Q rolling

Financial keydata


Seco Tools revenues in fixed currencies excl ALG.Macro data up to 31/01/2009.

Seco Tools revenue development and weighted production index (12 mths rolling)

Weighted IPI consists of IPI From EU12, US, CEE and AP


Western Europe - Revenues(Fixed Currency)

0

200 000

400 000

600 000

800 000

1 000 000

1 200 0001

99

9

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

SE

K 0

00

-40%

-30%

-20%

-10%

0%

10%

20%

30%

% Y

-O-Y

Y-o-Y:2008 + 4%2009:Q1 - 30%

Financial keydata


Seco revenues in fixed currencies.Macro data up to 31/01/2009.

Financial keydata

EU12 Economic Indicators & Seco Western Europe 3M Average InvoicingY-o-Y % Change

Local Currencies

-10%

-5%

0%

5%

10%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Ind

ica

tors

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Se

co T

oo

ls

EU12 Industrial Production EU12 Basic and Fabricated Metals

EU12 Machinery & Equipment


NAFTA - Revenues(Fixed Currency)

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

SE

K 0

00

-40%

-30%

-20%

-10%

0%

10%

20%

30%

% Y

-O-Y

Y-o-Y:2008 + 3%2009:Q1 - 28%

Financial keydata


Seco revenues in fixed currencies.Macro data up to 28/02/2009.

Financial keydata

US Economic Indicators & Seco NAFTA 3M Average Invoicing

Y-o-Y % ChangeLocal Currencies

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Ind

ica

tors

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Se

co T

oo

ls

US Industrial Production Primary metals Fabricated Metals Machinery


Central and Eastern Europe - Revenues(Fixed Currency)

0

50 000

100 000

150 000

200 000

250 000

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

SE

K 0

00

-30%

-20%

-10%

0%

10%

20%

30%

40%

% Y

-O-Y

Y-o-Y:2008 +17%2009:Q1 - 22%

Financial keydata

YTD -33% excl ALG


Asia - Revenues(Fixed Currency)

0

50 000

100 000

150 000

200 000

250 000

300 000

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

SE

K 0

00

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

% Y

-O-Y

Y-o-Y:2008 + 5%2009:Q1 - 28%

Financial keydata


The decline in historical perspective

Revenue fixed currency, quarterlyY-o-Y % Change

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009


Cost reduction measures (1)

Personnel reductions corresponding to 250 employees globally, whereof 200 workers, in addition to the reduction of approx 100 temporaries

Quarter 4 charged with 60 MSEK in restructuring

Completed by end of quarter 1

Large decrease in external spending

Full impact from quarter 2

Announcement Nov 20



Personnel reduction corresponding to 550 employees globally, whereof 410 workers

Includes agreements on reduced working time and salary in for instance Fagersta

Further reduction in external spending

Quarter 1 charged with 29 MSEK in restructuring Similar amount to be expected for quarter 2.

Completed by end of quarter 3

Full impact from quarter 4

Announcement Feb 18


Total cost reductions Impact in quarter 1 is 68 MSEK

Annual cost level including both fixed and variable cost will be reduced by 500 MSEK

Impact in 2009 is estimated to approx 400 MSEK

Total personnel reduction is 800 employees, whereof around 200 are staff employees

Total savings



Accumulated market growth- goal: 0,2 percentage unit per year

Target Seco

0,0%

0,2%

0,4%

0,6%

0,8%

1,0%

2005 2006 2007 2008 2009 2010

referens

We are taking market share!


– 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!


Positioning for Growth

Number of employees

40% field sales and technicans close to customers 2005 till 2008

Capital expenditure(excl acquisitions)

0%

2%

4%

6%

8%

10%

12%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

% o

f re

ven

ues

Time for payback and consolidation


• Invoicing, SEK M 1,351 1,632

• EBIT margin 7,0% 24,7%

• EBIT, SEK M 95 403

• Earnings per share (SEK) 0,37 1,89

• ROCE (Roll 12 mths) 22,9% 40,6%

• Net debt / equity ratio 0,71 0,38

Q1-2009 Q1-2008

Financial keydata


-100

-50

0

50

100

150

200

250

300

350

400

4502

00

8 Q

1

20

09

Q1

EB

IT (

MS

EK

)Result development Q1-2009

Rev. / EBIT

Rev. / EBIT

1 351 / 7%

1 351 / 7%

Volu

me a

nd

oth

er

Restr

uctu

rin

g

Cu

rren

cy

Savin

gs


Revenues and EBIT margin 1988-2008

0

1000

2000

3000

4000

5000

6000

7000

8812

8912

9012

9112

9212

9312

9412

9512

9612

9712

9812

9912

0012

0112

0212

0312

0412

0512

0612

0712

0812

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

Revenues EBIT%

Financial keydata


- Reduced level of trade receivables- Lower investment level

0

50

100

150

200

250

300

350

400

Q1

00

Q2

00

Q3

00

Q4

00

Q1

01

Q2

01

Q3

01

Q4

01

Q1

02

Q2

02

Q3

02

Q4

02

Q1

03

Q2

03

Q3

03

Q4

03

Q1

04

Q2

04

Q3

04

Q4

04

Q1

05

Q2

05

Q3

05

Q4

05

Q1

06

Q2

06

Q3

06

Q4

06

Q1

07

Q2

07

Q3

07

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

MS

EK

Operational CF EBIT

Operational Cash Flow

Operating cash flow includes changes in working capital but excludes aquistions

Financial keydata


Working Capital

15%

20%

25%

30%

35%

40%

45%

50%

9803

9809

9903

9909

0003

0009

0103

0109

0203

0209

0303

0309

0403

0409

0503

0509

0603

0609

0703

0709

0803

0809

0903

15%

20%

25%

30%

35%

40%

45%

Quarter Rolling

Financial keydata


Inventory

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

9803

9809

9903

9909

0003

0009

0103

0109

0203

0209

0303

0309

0403

0409

0503

0509

0603

0609

0703

0709

0803

0809

0903

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

Quarter Rolling

Financial keydata


Trade Receivables

10%

12%

14%

16%

18%

20%

22%

24%

9803

9809

9903

9909

0003

0009

0103

0109

0203

0209

0303

0309

0403

0409

0503

0509

0603

0609

0703

0709

0803

0809

0903

10%

12%

14%

16%

18%

20%

22%

24%

Quarter Rolling

Financial keydata


Shareholder Value4Q Rolling

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

2002

2003

2004

2005

2006

2007

2008

2009

0%

10%

20%

30%

40%

50%

60%

Return on Equity EPS

Financial keydata


0

1

2

3

4

5

6

7

8

2003 2004 2005 2006 2007 2008Regular dividend Extra ordinary dividend

Earnings per share, SEK

Earnings and dividend per share


Investor Relations – 2009 Q1 Seco Tools Group Q1-2009.

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