Jost Werke Se · XETR:JST
Jost Werke — 9M 2017 Earnings Presentation
27 slides from Jost Werke's earnings presentation, December 2017
Slide 1: Company presentation - 9M 2017 Update
Company presentation - 9M 2017 Update Lars Brorsen (CEO) Christoph Hobo (CFO)
Slide 2: Disclaimer
Disclaimer THIS FINANCIAL REPORT IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS FINANCIAL REPORT, WHICH HAS BEEN PREPARED BY JOST WERKE AG (THE “COMPANY”), SHOULD NOT BE TREATED AS GIVING INVESTMENT ADVICE AND MAY NOT BE REPRODUCED IN ANY FORM, PASSED ON OR OTHERWISE MADE AVAILABLE, DIRE
Slide 3: Company overview and key highlights
Company overview and key highlights 2
Slide 4: JOST – leading global supplier of safety critical truck and trailer solutions
JOST – leading global supplier of safety critical truck and trailer solutions FY 2016 9M 2017 update Sales / CAGR (14-16A) Adj. EBIT2 / margin CF / Cash conversion3 Sales / y-o-y growth Adj. EBIT2 / margin €634m / 3.6%1 €62m / 9.8% €60m / 76.4% €533m / 9.5% €64m / 12.0% Sales by region4,5 Sales by a
Slide 5: Overview of our main products
Overview of our main products Drawbar Varioblock Turntable Rockinger Agriculture Towing Hitch Coupling Drawbar Turntable Cross Member Cylinder Axles Container Technology, Supporting Leg Landing Gear Forced Steering King Pin Fifth Wheel Vehicle interface (74% sales) Handling solution (10% sales)7 Man
Slide 6: Key takeaways
Key takeaways Key investment highlights 1 Leadership – Global leadership in branded products 2 Attractive company growth – Market outperformance: upselling, market expansion and bolt-on M&A 3 Market growth – Sustained growth on the back of strong fundamentals 4 Diversification – High aftermarket con
Slide 7: Global leadership in branded products
1 Global leadership in branded products One of the leading global suppliers of truck and trailer systems with high market share in core segments JOST has a leading market position in Vehicle Interface systems >50% global market share in articulated truck trailer combinations market Fifth wheel Landi
Slide 8: Market outperformance: upselling, market expansion and bolt-on M&A
2 Market outperformance: upselling, market expansion and bolt-on M&A JOST’s strategy is focused on further enhancing its cash generative baseline business while developing advanced solution systems to provide long-term growth Business area development Example products Operational focus Integrated sy
Slide 9: JOST's successful strategy to outgrow the market
2 Market outperformance: upselling, market expansion and bolt-on M&A JOST’s successful strategy to outgrow the market JOST’s approach to outperform the market Manual landing gear E-Drive landing gear Increased content compared to base version (e.g >4x for landing gear) Higher content 1 Upselling t
Slide 10: Sustained growth on the back of strong fundamentals
3 Sustained growth on the back of strong fundamentals Truck and trailer in all other regions are expected to outperform GDP growth on the back of favorable long-term economic factors Macro factors supporting robust long-term sector growth Positive GDP and Growing share of road Regulation driving ren
Slide 11: China's newly implemented truck overload restrictions
3 Sustained growth on the back of strong fundamentals China’s newly implemented truck overload restrictions positively impact truck and trailer demand in China Truck overload restrictions Traditional car carrier in China Implementation of new regulation on truck overload restrictions (GB1589) No
Slide 12: High aftermarket content and diversification by customer and geography
4 High aftermarket content and high diversification by customer and geography High resilience due to high customers fragmentation and leading AM business High customer fragmentation Attractive AM opportunity 51% Product Other Fifth Landing Top 25 Wheel Gear customers represent 49% of sales¹ AM value
Slide 13: Flexible and asset light business model
5 Flexible and asset light business model Ability to quickly adapt to changing market environment due to asset light and efficient supply and production platform Key parts of the value chain Number of variants1 20 100 100 1,500 On demand High capex Purchased Mech. Stage Design/ Forging and Quality L
Slide 14: Industry-leading margins and cash generation profile
6 Industry-leading margins and cash generation profile JOST has continuously outperformed the truck market since 2003 showing high profitability and strong cash generation JOST's performance over time Strong margin resilience High cash flow generation Indexed to 2003 Adjusted EBITDA margin (%) 400 T
Slide 15: Key financials
Key financials 14
Slide 16: 9M 2017 best first nine months in JOST's history
9M 2017 best first nine months in JOST’s history with strong improvement in margins across all regions Sales split by geography1 (€m) 9M 2017 commentary CAGR: 10.8%/3.6%2 9.5% 650 % growth 634 % growth % growth 533 Record 9M sales performance, 516 15.2% 4.4% 487 47.1% Growth driven by high activit
Slide 17: Strong cash generation, low capex, disciplined working capital
Strong cash generation profile supported by low capex spend and disciplined working capital planning Key financials overview Cash conversion1 72.6% 60.9% 76.4% 78.4% 88.3% Cash flow1 (€m) Highly capital efficient business model with strong cash conversion 60 68 and attractive ROCE 51 47 50 FY2014A
Slide 18: Balance sheet strengthened
Balance sheet strengthened Balance sheet as at September 30, 2017 Shareholder structure 610 610 Noncurrent Equity Equity ratio assets 195 32.0% NIBC Bank 337 13% Noncurrent Interest-bearing liabilities loans Black 178 Maturity: 2022 Diamond Interest rate <2% Lock-up 13% 42.5% Current assets 217 Free
Slide 19: Highlights 9M 2017: Sales +10% and Frankfurt listing
Highlights 9M 2017 Listing on Frankfurt Sales +10% to €533m stock exchange 4.875m new shares issued Adj. EBIT +24% to €64m Placement price €27.00 €132m raised from capital increase Adj. net income +76% to €41m +41% share price increase by end of Q3 2017 Equity ratio 32% Attractive new Outloo
Slide 20: Outlook 2017 – raised
Outlook 2017 – raised FY 2016 2016 Outlook 2017 Outlook 2017 (€m) (% of sales) (old) (new) Mid single digit High single digit Sales 634 growth growth High single digit Moderate double Adjusted EBIT (% margin) 62 9.8% growth digit growth Capex1 (% of sales) 18 2.9% 2.0 – 2.5% of sales 2.0 – 2.5% of s
Slide 21: Appendix
Appendix 20
Slide 22: Reconciliation of adjusted earnings 9M 2017
Reconciliation of adjusted earnings 9M 2017 Key financials Key highlights Adjustments to EBIT mainly 18.9 63.8 from D&A of PPA Reconciliation of adj. EBIT (€m) 1.0 2.7 Further adjustments from 41.2 costs associated with the stock listing Reported EBIT Exceptionals Stock listing D&A from PPA Adj.
Slide 23: Group's sales and adjusted EBIT by quarter
Group’s sales and adjusted EBIT by quarter Sales (€m) Adj. EBIT (€m) 25,0 25,0 180,5 181,4 22,5 176,6 21,8 172,1 171,5 167,4 165,5 20,6 157,3 19,4 19,5 149,4 20,0 20,0 148,5 147,0 17,8 16,8 14,6 15,0 14,1 15,0 10,4 10,4 12,4% 12,0% 12,0% 10,0 11,0% 11,4% 10,0 10,6% 10,1% 9,3% 9,4% 7,0% 7,1% 5,0 5,0%
Slide 24: Organic sales development
Organic sales development Sales 9M (€m) Sales Q3 (€m) Sales growth (%) 9.3% 0.2% 16.5% -1.7% 1 45 533 25 (3) 171 487 149 Sales Organic sales FX translation Sales Sales Organic sales FX translation Sales 9M 2016 growth effects 9M 2017 Q3 2016 growth effects Q3 2017 23
Slide 25: Adjusted consolidated statement of income
Adjusted consolidated statement of income Profit & loss statement adjusted for exceptionals, PPA and shareholder loan effects (€m) FY2014A FY2015A FY2016A 9M 2016 9M 2017 % Sales 516.3 649.8 633.9 487.0 533.3 10% Cost of sales (376.2) (485.2) (456.1) (355.6) (384.9) 8% Gross profit 140.1 164.6 177.9
Slide 26: Consolidated statement of income
Consolidated statement of income Profit & loss statement (€m) FY2014A FY2015A FY2016A 9M 2016 9M 2017 Sales revenues 516.3 649.8 633.9 487.0 533.3 Cost of sales (376.2) (485.2) (456.1) (355.6) (384.9) Gross profit 140.1 164.6 177.9 131.4 148.4 Selling expenses (1.2) (81.0) (82.1) (61.0) (63.2) Resea
Slide 27: Global leadership
Global leadership JOST’s leading market positions – focus on fifth wheel and landing gear JOST has a leading market position in Vehicle Interface systems Market shares by sales in OE business by geography Fifth wheel JOST position Landing gear JOST position Global 54% 46% 1 Global 56% 44% 1 Europe 1