Slide 1: Welcome to Schindler: Annual Results Presentation 2015
Welcome to Schindler Annual Results Presentation 2015 Lucerne, February 12, 2016 Styria Media Center, office building; Graz, Austria New installation of 7 Schindler 5500 elevators
Slide 2: Agenda
Annual results presentation 2015 Agenda Results 2015 Silvio Napoli and Erich Ammann Action plan and outlook 2016 Thomas Oetterli Q&A Silvio Napoli, Erich Ammann, Thomas Oetterli © Schindler | Annual Results Presentation 2015 Slide 2
Slide 3: Highlights 2015
Highlights 2015 Growth strategy delivers despite headwinds Schindler’s position significantly strengthened in strategic markets China’s new installation market declined for the first time in more than 20 years India, Southeast Asia and Australia growing Accelerating growth in North America; So
Slide 4: Slight decline in global new installations market
Slight decline in global new installations market First contraction in China in more than 20 years -3% -4% NI market size 828k 803k (units) and 642k 619k growth rate Stable 2014-15 -4% 138k 138k 48k 46k 2014 2015 2014 2015 2014 2015 2014 2015 Americas Europe Asia-Pacific Global Regional share 16% 16
Slide 5: Order intake aligning more to global demand distribution
Order intake aligning more to global demand distribution Improved position in growth markets 36% 22% 23% NI market 51% 49% 77% (units) 72% 78% 2005 2010 2014 2015 27% Schindler NI 41% 41% 35% 59% 59% 65% order intake 73% (units) Other zones © Schindler | Annual Results Presentation 2015 Slide 5
Slide 6: Growth strategy at work
Growth strategy at work Better balance across regions 24% 26% 25% 32% 36% 51% 41% 44% 45% Order 77% backlog 78% 78% 35% 32% 30% 30% 2005 2010 2014 2015 15% 19% 27% 29% 33% Revenue 41% 52% 43% 39% 56% 59% 59% 65% 29% 29% 28% 28% © Schindler | Annual Results Presentation 2015 Slide 6
Slide 7: Digitization
Digitization Enhancing customer experience through digital tools Schindler Dashboard & Mobile App Superior Customer Experience available on all platforms: Web, iOS, Android and Windows Mobile Customer value Schindler Direct Schindler equipment connected to the Internet of Elevators and Escalators wi
Slide 8: Q4 2015: Key figures
Q4 2015: Key figures Progress in performance In CHF million Q4/2015 Q4/2014 ∆% ∆% in LC Orders received 2 606 2 569 +1.4 +6.6 Revenue 2 589 2 593 –0.2 +5.1 Operating profit (EBIT), comparable 277 259 +6.9 +17.0 in % 10.7 10.0 Net profit, comparable 194 217 –10.6 Including exceptional items 2014 1 Op
Slide 9: Q4 2015: Key figures, cash flow
Q4 2015: Key figures Surge in cash flow from operating activities In CHF million Q4/2015 Q4/2014 ∆% ∆% in LC Cash flow from operating activities 377 296 +27.4 Investments in property, plant, and equipment 55 41 +34.1 31.12.2015 30.09.2015 Order backlog 9 364 9 519 –1.6 –3.0 Number of employees 56 76
Slide 10: Full year 2015: Key figures
Full year 2015: Key figures Successful execution of strategic growth targets In CHF million 2015 2014 ∆% ∆% in LC Orders received 9 967 9 979 –0.1 +4.6 Revenue 9 391 9 246 +1.6 +6.7 Operating profit (EBIT), comparable 1 002 932 +7.5 +16.8 in % 10.7 10.1 Net profit, comparable 747 740 +0.9 Including
Slide 11: Full year 2015: Key figures, cash flow
Full year 2015: Key figures Cash flow above CHF 1 billion, growth in order backlog In CHF million 2015 2014 ∆% ∆% in LC Cash flow from operating activities 1 076 902 +19.3 Investments in property, plant, and equipment 183 183 0.0 31.12.2015 31.12.2014 Order backlog 9 364 9 263 +1.1 +7.9 Number of em
Slide 12: Currency headwinds
Currency headwinds Translation impact of exchange rates In CHF million 2008 2009 2010 2011 2012 2013 2014 2015 Total Revenue –549 –324 –291 –900 14 –137 –206 –472 –2 865 EBIT –56 –43 –35 –110 –16 –19 –30 –87 –396 0 -200 Revenue -400 EBIT -600 -800 -1000 © Schindler | Annual Results Presentation 2015
Slide 13: Schindler generates >90% of revenues outside Switzerland
Schindler generates >90% of revenues outside Switzerland Limited transaction risk but large translation risk Revenue 2015 by functional currency Transaction exposure Good match of revenue and cost in functional currencies in operating companies CHF 100% hedging policy for transaction exposure Tr
Slide 14: Agenda
Annual results presentation 2015 Agenda Results 2015 Silvio Napoli and Erich Ammann Action plan and outlook 2016 Thomas Oetterli Q&A Silvio Napoli, Erich Ammann, Thomas Oetterli © Schindler | Annual Results Presentation 2015 Slide 14
Slide 15: Action Plan 2016
Action Plan 2016 Marginal decrease of global new installations market Further decline in China Positive outlook for the U.S., India, and Southeast Asia Fast Forward execution in full swing New Group Executive Committee to drive key initiatives Continued focus on strategic markets Product i
Slide 16: Strategic intent unchanged
Strategic intent unchanged Fast Forward execution in full swing Objectives Growth above market Improvement in EBIT Focus on margins Operational Excellence Strategic Markets Global Delivery Installations Installations China Cost competitiveness Customer-centricity New India, Southeast A
Slide 17: Group Executive Committee as of April 1, 2016
Group Executive Committee as of April 1, 2016 Four new appointments, two new positions CEO Thomas Oetterli Field Quality & Existing Installations & New Installations & CFO Human Resources CTO Chief Digital Officer Excellence Modernization Supply Chain Erich Ammann David Clymo Albert Haffert Christia
Slide 18: E&E market growth potential driven by verticalization of cities
E&E market growth potential driven by verticalization of cities By 2050, two out of three people globally will live in cities Total E&E density 2015 Urbanization ratio no. of installed units % of urban residents in per 1,000 population total population 2010 2015 2030 Switzerland 30.0 73.7% 73.9% 76.
Slide 19: Global New Installations market 2016
Global New Installations market 2016 Marginal decrease driven by China NI E&E market (units) Market outlook 2016 Further decline in China -2.5% 803k 783k India and Southeast Asia expanding 138 139 Continued growth in the U.S. 46 47 Moderate recovery in Europe Mid- to long-term outlook 619 59
Slide 20: China remains key focus
China remains key focus NI market 9x larger than any other despite recent downturn 900000 100% 100.0% 92% 93% 90% 88% 90.0% 800000 85% 82% 79% 700000 75% 80.0% 71% 67% 70.0% 600000 60% 60.0% 500000 50.0% 400000 40.0% 300000 30.0% China’s share in global NI market: 200000 20.0% 13% 100000 10.0% 0 0.0
Slide 21: China: Second year of falling floor space started
China: Second year of falling floor space started Pricing trend in key cities in positive territory Floor space sold in China Opportunities 500 13.5% 15% Urbanization and infrastructure investment continue 10% 400 13.3% 5% Several stimulus measures deployed to prop up market 300 ‐3.8% 4.8% 0%
Slide 22: China: Inventories remain very high, especially in smaller cities
China: Inventories remain very high, especially in smaller cities Slight improvement in Tier 1-2 cities Housing inventory, by city tier (2010=100) Housing inventory, by city tier (months of sales) 400 50 45 350 40 300 Tier 3 35 250 30 200 Tier 2 25 Tier 3 20 150 Tier 1 15 Tier 2 100 10 50 Tier 1 5 0
Slide 23: Global supply chain investments
Global supply chain investments Integrated operations close to markets, enabling efficiency gains Dunajská Streda, Slovakia Hanover, USA Pune, India Shanghai, China © Schindler | Annual Results Presentation 2015 Slide 23
Slide 24: Modular products – reduced complexity
Modular products – reduced complexity Seamless offering tailored to market needs S3X00 S5X00 Reduce number of component variants by half Machine Controller Car Doors S7X00 © Schindler | Annual Results Presentation 2015 Slide 24
Slide 25: Innovation: Escalator modernization opportunity
Innovation: Escalator modernization opportunity Schindler InTruss to capture growth in infrastructure refurbishment Market opportunity Innovation Benefits to Customer 2017 In global infrastructure No recertification of $4tn investment by 2017 building Compact drive Minimal disruption from escala
Slide 26: Outlook 2016
Outlook 2016 Status as of February 12, 2016 Macroeconomic and political uncertainties Markets expected to slightly decline Growth strategy and focus on margins unchanged Fast Forward execution in full swing Revenue expected to increase by 3-7% in local currencies Net profit 2016 forecast
Slide 27: Agenda
Annual results presentation 2015 Agenda Results 2015 Silvio Napoli and Erich Ammann Action plan and outlook 2016 Thomas Oetterli Q&A Silvio Napoli, Erich Ammann, Thomas Oetterli © Schindler | Annual Results Presentation 2015 Slide 27
Slide 28: Thank you.
Thank you. Financial calendar 2016 Ordinary General Meeting Schindler Holding Ltd. March 22 Selected key figures as of March 31, 2016 April 28 Interim Report as of June 30, 2016 August 16 Selected key figures as of September 30, 2016 October 25 Your contact: Barbara Zäch, Head Investor Relations; Te
Slide 29: Additional slides
Additional slides © Schindler | Annual Results Presentation 2015 Slide 29
Slide 30: Quarterly overview 2015/2014
Quarterly overview 2015/2014 2015 2014 In CHF million Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Orders received 2 606 2 384 2 534 2 443 2 569 2 448 2 520 2 442 Revenue 2 589 2 310 2 355 2 137 2 593 2 314 2 292 2 047 Operating profit (EBIT), comparable 277 249 254 222 259 231 237 205 in % 10.7 10.8 10.8 10.4 10.0 10.0
Slide 31: Share buyback program – 2nd trading line
Share buyback program – 2nd trading line as of December 31, 2015 Registered Participation shares certificates Number of securities purchased in 20131 2 618 693 1 258 576 Number of securities purchased in 2014 162 600 544 000 Number of securities cancelled in 2014 –2 707 293 –1 553 376 Number of secu
Slide 32: Dividend proposal 2015 for registered share and PC
Dividend proposal 2015 for registered share and PC Ordinary dividend CHF 2.70 In CHF 4.00 3.00 Additional Ordinary 2.00 1.00 0.00 2011 2012 2013 2014 1 2015 Pay-out ratio in % of 41.8 37.1 59.6 41.9 44.0 net profit after minorities 1 Ordinary dividend CHF 2.20, additional CHF 1.00 © Schindler | Annu