Schindler Holding Ltd. · SIX:SCHN

Schindler — Schindler Hldg Ag Akt — H1 2023 Earnings Presentation

30 slides from Schindler's earnings presentation, Jul 21, 2023

  1. Slide 1: Half-year 2023 results

    Half-year 2023 results July 21, 2023 © Schindler 2023 I © Schindler 2023 I We Elevate I July 21, 2023 I

  2. Slide 2: Agenda

    Agenda 1. Highlights Silvio Napoli 2. Market update Silvio Napoli 3. Performance Silvio Napoli 4. Financial results Carla De Geyseleer 5. Outlook 2023 Carla De Geyseleer 6. Q&A Silvio Napoli/Carla De Geyseleer 2 I © Schindler 2023 I We Elevate I July 21, 2023 I Investor Relations

  3. Slide 3: Gaining momentum

    Gaining momentum Q2 order intake recovery, Market uncertainty FX headwinds increasing Revenue growth NI under pressure driven Total OIT (LC): Q2 +6.7%, H1 stable Strong backlog execution by China, robust Service Q2 OIT: NI/MOD: up mid-single digit across all regions and and Modernization Service por

  4. Slide 4: Agenda

    Agenda 1. Highlights Silvio Napoli 2. Market update Silvio Napoli 3. Performance Silvio Napoli 4. Financial results Carla De Geyseleer 5. Outlook 2023 Carla De Geyseleer 6. Q&A Silvio Napoli/Carla De Geyseleer 4 I © Schindler 2023 I We Elevate I July 21, 2023 I Investor Relations

  5. Slide 5: Updated market outlook for 2023

    Updated market outlook for 2023 NI market contracting, Service and Modernization strong APAC Units China w/o China Americas EMEA Global New Installations ––– ++ –– – –– Comments on Completions India: growing North America: Europe: widespread Declining China, Q2 development strong but weak declining

  6. Slide 6: China NI: recovery timing and magnitude still uncertain

    China NI: recovery timing and magnitude still uncertain Construction starts still declining, housing inventories remain high Floor space started declining for 4th consecutive year Housing inventory decreasing, but still elevated, especially in lower-tier cities1) 2500 30% Months of consumption 17.2%

  7. Slide 7: China: E&E transition to Service and Modernization

    China: E&E transition to Service and Modernization Installed base at ~10 milllion units, with room for further growth China urbanization continues to drive E&E growth potential, China Modernization to reach 50% of global market by 2030 China still less than half of South Korea’s density E&E installe

  8. Slide 8: Agenda

    Agenda 1. Highlights Silvio Napoli 2. Market update Silvio Napoli 3. Performance Silvio Napoli 4. Financial results Carla De Geyseleer 5. Outlook 2023 Carla De Geyseleer 6. Q&A Silvio Napoli/Carla De Geyseleer 8 I © Schindler 2023 I We Elevate I July 21, 2023 I Investor Relations

  9. Slide 9: Sustained performance improvement over last twelve months

    Sustained performance improvement over last twelve months Revenue and EBIT evolution (CHF million) Revenue and EBIT yoy difference 6000 10.9% 12.0% 10.1% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 5000 8.5% 10.0% 8.0% 8.2% 4000 7.1% 8.0% 213 2 965 3 036 2 926 3000 2 632 2 713 2 796 6.0% Revenue 158 164 EBI

  10. Slide 10: Focus on continued pricing gains and supply chain stabilization paying off

    Focus on continued pricing gains and supply chain stabilization paying off Year-on-year modular platform average sales price development On-time delivery (%) 100 50 0 12/21 06/22 12/22 06/23 Region 1 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Region 2 10 I © Schindler 2023 I We Elevate I July 21, 2023 I In

  11. Slide 11: Value selling and diligent backlog execution drive margin recovery

    Value selling and diligent backlog execution drive margin recovery New Installations order intake margin New Installations order backlog margin1) ~2x H2 21 H1 22 H2 22 H1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 1) Sequential margin development by quarter 11 I © Schindler 2023 I We Elevate I July 21,

  12. Slide 12: Simplified modular elevator platform re-launch on track

    Simplified modular elevator platform re-launch on track Complexity reduction, cost-competitiveness, higher margins Full connectivity Standardization Faster installation, shorter with high cyber- lead times security level Schindler 1000 Schindler 3000 3 User experience driven functionality Net zero r

  13. Slide 13: Efficiency key to competitiveness

    Efficiency key to competitiveness Focus on disciplined execution 1 ▪ New modular products NI/MOD ▪ Standardization/harmonization ▪ Process simplification 2 ▪ Drive density Service & Repairs ▪ Boost connected units ▪ Digital services 3 ▪ Shift from tactical to strategic sourcing Procurement ▪ Complex

  14. Slide 14: Agenda

    Agenda 1. Highlights Silvio Napoli 2. Market update Silvio Napoli 3. Performance Silvio Napoli 4. Financial results Carla De Geyseleer 5. Outlook 2023 Carla De Geyseleer 6. Q&A Silvio Napoli/Carla De Geyseleer 14 I © Schindler 2023 I We Elevate I July 21, 2023 I Investor Relations

  15. Slide 15: Delivering on commitments

    Delivering on commitments Disciplined execution driving performance Q2 2023 vs. Q2 2022 Order intake stable, up in LC Order intake margin Strong order backlog execution 7’000.00 almost doubled resulting in revenue growth 6’800.00 6’600.00 6’400.00 6’200.00 6’000.00 5’800.00 5’600.00 5’400.00 3 036 5

  16. Slide 16: Key figures as of June 30, 2023 April to June

    Key figures as of June 30, 2023 April to June In CHF million Q2 2023 Q2 2022 r% r% in LC Order intake 3 049 3 063 –0.5 6.7 Revenue 2 926 2 713 7.9 15.2 Operating profit (EBIT) 320 192 66.7 78.1 in % 10.9 7.1 Operating profit (EBIT), adjusted 334 1) 230 2) 45.2 55.2 in % 11.4 8.5 Financing and invest

  17. Slide 17: Key figures as of June 30, 2023 January to June

    Key figures as of June 30, 2023 January to June In CHF million 1H 2023 1H 2022 r% r% in LC Order intake 5 938 6 227 –4.6 0.8 Revenue 5 722 5 345 7.1 12.6 Operating profit (EBIT) 602 403 49.4 58.1 in % 10.5 7.5 Operating profit (EBIT), adjusted 606 1) 466 2) 30.0 37.8 in % 10.6 8.7 Financing and inve

  18. Slide 18: Balance sheet

    Balance sheet Solid cash position despite bond repayment In CHF million 30.06.2023 in % 31.12.2022 in % 30.06.2022 in % Cash and cash equivalents 2 257 19.9 2 153 18.2 2 408 20.2 Other current assets 5 494 48.4 5 956 50.5 5 689 47.6 Total current assets 7 751 68.3 8 109 68.7 8 097 67.8 Non-current a

  19. Slide 19: Order intake

    Order intake Growth in local currencies despite challenging markets April to June January to June in CHF million in CHF million Growth in local currencies (LC) +6.7% +0.8% Growth in reported currency –0.5% –4.6% 19 I © Schindler 2023 I We Elevate I July 21, 2023 I Investor Relations

  20. Slide 20: Order intake

    Order intake Q2 growth across all product lines, HY growth mainly driven by Service, NI down but above market Order intake growth Q2 2023 vs. Q2 2022 Order intake growth HY 2023 vs. HY 2022 APAC APAC China w/o China Americas EMEA Global China w/o China Americas EMEA Global Value (in LC) Value (in LC

  21. Slide 21: Revenue

    Revenue All regions and product lines contribute to revenue growth, negative FX impact doubled in Q2 in CHF million in CHF million 2 713 2 965 3 036 2 926 2 632 2 796 EMEA +++ Americas ++ China +++ Rest AP +++ Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 0 to <5% + 5% to 10% + + >10% + + + +1.9% –4.6% +7.9%

  22. Slide 22: Year-on-year EBIT adjusted and EBIT

    Year-on-year EBIT adjusted and EBIT Continued profitability improvement, highest EBIT since Q4 2019 EBIT adjusted EBIT in CHF million in CHF million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 128 104 71 36 1) 3 –4 – 36 – 54 – 65 – 77 – 107 – 127 –20.6% –30.3% –8.8% +3.6%

  23. Slide 23: Year-on-year EBIT adjusted and EBIT

    Year-on-year EBIT adjusted and EBIT Strong operational performance, FX impact of CHF –35 million in CHF million Top Speed 23 +12 Restructuring cost +13 Real estate gain +32 Others +2 EBIT adj. EBIT Opera- Δ Adjust- FX EBIT EBIT adj. HY 22 HY 22 tional ments HY 23 HY 23 Margin 8.7% 7.5% 10.5% 10.6% 2

  24. Slide 24: Operating cash flow

    Operating cash flow Improvement driven by higher operating profit and net working capital April to June January to June in CHF million in CHF million – Higher income tax payments – Other non-cash items + Growth in service + Inventory + China recovery + Supply chain recovery Growth in reported curren

  25. Slide 25: Agenda

    Agenda 1. Highlights Silvio Napoli 2. Market update Silvio Napoli 3. Performance Silvio Napoli 4. Financial results Carla De Geyseleer 5. Outlook 2023 Carla De Geyseleer 6. Q&A Silvio Napoli/Carla De Geyseleer 25 I © Schindler 2023 I We Elevate I July 21, 2023 I Investor Relations

  26. Slide 26: Outlook 2023

    Outlook 2023 Uncertain environment Persistent focus ▪ China: timing and magnitude of NI recovery Disciplined execution of strategic priorities focusing on: still uncertain; Service and Modernization ▪ Pricing growing ▪ Efficiency and cost reduction drive ▪ America and Europe NI markets softening ▪ S

  27. Slide 27: Q&A

    Q&A July 21, 2023 © Schindler 2023 I © Schindler 2023 I We Elevate I July 21, 2023 I

  28. Slide 28: Additional charts

    Additional charts 28 I © Schindler 2023 I We Elevate I July 21, 2023 I Investor Relations

  29. Slide 29: Quarterly overview Key figures

    Quarterly overview Key figures In CHF million 2023 2022 Q2 Q1 Q4 Q3 Q2 Q1 Order intake 3 049 2 889 2 994 2 740 3 063 3 164 Revenue 2 926 2 796 3 036 2 965 2 713 2 632 Operating profit (EBIT) 320 282 249 252 192 211 in % 10.9 10.1 8.2 8.5 7.1 8.0 Operating profit (EBIT), adjusted 334 272 309 272 230

  30. Slide 30: Calendar 2023/2024

    Calendar 2023/2024 2023 2024 Full year results analyst and media conference February Ordinary General Meeting Schindler Holding Ltd. March 19 Publication of key figures as of March 31 April Publication of Interim Report as of June 30 July Publication of key figures as of September 30 October 19 Octo

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