Renk Group Ag · XETR:R3NK

Renk — H1 2024 Earnings Presentation

31 slides from Renk's earnings presentation, Aug 13, 2024

  1. Slide 1: Trusted Partner: H1 2024 Investor & Analyst Presentation

    Trusted Partner H1 2024 Investor & Analyst Presentation 13 August 2024

  2. Slide 2: Disclaimer

    Disclaimer By accessing this presentation, you agree to be bound by the following limitations. This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or

  3. Slide 3: Experienced management team with strong track record

    Introduction Experienced management team with strong track record Today’s speakers Susanne Christian Dr. Alexander Wiegand Schulz Sagel CEO CFO COO 2 Trusted Partner

  4. Slide 4: 1. RENK introduction

    1. RENK introduction 2. Update on H1-24 performance 3. Summary and outlook Trusted Partner

  5. Slide 5: RENK – Leading provider of drive technologies with high aftermarket share

    RENK introduction RENK – Leading provider of drive technologies with high aftermarket share Growth markets Global leader Strong financials ~10% #1 Player €926m 2022A-2027E in mission-critical 2023A Total addressable market CAGR(1) drive technologies(4) Revenue ~€4.6bn ~75% 16.2% Dec-2023 Global mark

  6. Slide 6: 2. Update on H1-24 performance

    1. RENK introduction 2. Update on H1-24 performance 3. Summary and outlook Trusted Partner

  7. Slide 7: Executive summary Q2 2024: Orders and revenues at record level, targets raised

    Update on H1-24 performance Record Q2 order • Strong VMS order intake (book-to-bill 2.1x) in Q2 2024 intake • Defense super cycle boosts order intake growth • VMS revenue growth boosted by accelerated backlog Record Q2 conversion thanks to operational improvement revenue level • Revenue growth accel

  8. Slide 8: Total order backlog at >4x annual revenues

    Update on H1-24 performance Total order backlog at >4x annual revenues – strong market demand beyond total order backlog Total order backlog (Jun-24), €bn Commentary LTM revenue 1 Fixed order backlog: Increased by 1.8x 0.6x 2.1x 4.6x €203m thanks to strong order intake in the coverage(1) VMS segmen

  9. Slide 9: Strong revenue growth in defense and aftermarket-related areas

    Update on H1-24 performance Strong revenue growth in defense and aftermarket-related areas YoY growth Book-to-bill ratio(1) Large order(s) Order intake, €m Revenue, €m Fixed order backlog(2), €m Commentary (Q2) 1.6x 1.2x 0.9x 1.5x  Substantially higher order intake in Q2 due to a large order win in

  10. Slide 10: Strong adj. EBIT performance – FY guidance narrowed

    Update on H1-24 performance YoY growth Adj. gross profit margin Strong adj. EBIT performance – FY guidance narrowed Adj. EBIT margin Net debt / LTM Adj. EBITDA(4) Adj. EBIT margin without one-time warranty provision Adj. gross profit(1), €m Adj. EBIT(2), €m Net debt(3), €m Commentary (Q2) 28.7% 27.0

  11. Slide 11: VMS: Significant revenue growth & 2.1x b-t-b driven by Defense super cycle

    Update on H1-24 performance YoY growth Adj. EBIT margin without VMS: Significant revenue growth & 2.1x b-t-b driven by Defense super cycle one-time warranty provision Large order(s) Segment financials, €m Commentary (Q2) Order intake Revenue Adj. EBIT(1)  Q2 Order Intake in VMS YoY substantially hi

  12. Slide 12: M&I: Revenue growth accelerated, margin at double-digit level

    Update on H1-24 performance M&I: Revenue growth accelerated, margin at double-digit level YoY growth Adj. EBIT margin Segment financials, €m Commentary (Q2) Order intake Revenue Adj. EBIT(1)  Book-to-bill below 1.0x in Q2 2024 following strong order intake in Q1 2024 (H1 2024 -2.2% 10.0% 2.1% 13.7%

  13. Slide 13: Slide Bearings: Growth in e-Bearings and further EBIT margin expansion

    Update on H1-24 performance Slide Bearings: Growth in e-Bearings and further EBIT margin expansion YoY growth Adj. EBIT margin Segment financials, €m Commentary (Q2) Order intake Revenue Adj. EBIT(1)  Slight decrease in order intake in Q2 of 3.7% YoY; order intake from the power 14.2% 18.0% 15.2% 1

  14. Slide 14: Adjustments mainly related to PPA, refinancing costs and RAMup

    Update on H1-24 performance Adjustments mainly related to PPA, refinancing costs and RAMup For the period, €m Commentary H1-23 H1-24 Q2-23 Q2-24 1 Adjustments are mainly attributable to effects of purchase price allocations, Operating profit 31.9 35.6 25.2 23.7 which mainly relate to depreciation an

  15. Slide 15: NWC ratio expected to decline in the mid-term

    Update on H1-24 performance NWC ratio expected to decline in the mid-term Customer receivables(1) Inventories Net working capital, €m Trade payables Prepayments received(2) Commentary  NWC as a percentage of sales increased by % of LTM revenue 26.0% 26.8% 27.3% 0.4 pp.  Customer receivables increa

  16. Slide 16: Slightly negative cash flow in Q2 due to inventory build-up

    Update on H1-24 performance Slightly negative cash flow in Q2 due to inventory build-up for upcoming sales Key cash flow items, €m Commentary H1-23 H1-24 Q2-23 Q2-24 1 Q1 2023 tax payments include an aperiodic real estate tax payment (€2.8m) Adj. EBITDA(1) 78.2 84.6 51.5 49.1 2 Cash outflow for ne

  17. Slide 17: 3. Summary and outlook

    1. RENK introduction 2. Update on H1-24 performance 3. Summary and outlook Trusted Partner

  18. Slide 18: Guidance: Turning more positive on prospects for 24 and mid-term

    Guidance Guidance: Turning more positive on prospects for 2024 and mid-term after strong H1 growth 2023A 2024 Guidance Medium-term target Guidance raised! Target raised! Revenue / new: ~€1,100m new: ~15% CAGR €926m growth old: €1,000-1,100m old: ~10% CAGR Guidance narrowed to the upper end! Target r

  19. Slide 19: Priorities and key challenges for 2024

    Update on H1-24 performance Output increase • Accelerate output and revenue growth, especially in VTA Augsburg VTA (“Vehicle Transmissions Augsburg”) Operational • Develop RENK America to the next level to sustain Excellence performance: Supply chain, operating model, leadership Americas structures

  20. Slide 20: Financial calendar H2 2024

    FINANCIAL CALENDAR H2 2024 August 2024: October 2024: • Roadshow London • Roadshow, Milan/Lugano • Roadshow Chicago • Roadshow Zurich November 2024: • Roadshow Frankfurt • Q3 Release (13 November) • Roadshow Stockholm • Deutsche Börse Eigenkapitalforum, Frankfurt September 2024: December 2024: • Bac

  21. Slide 21: Capital Markets Day – Save the date

    SAVE THE DATE Capital Markets Day Date: 10 September 2024 Time: 8.30h to approx. 16.00h CEST Location: Munich Registration: investors@renk.com

  22. Slide 22: Q&A Session

    TRUSTED PARTNER Q&A Session RENK Group / Company presentation / March 2023

  23. Slide 23: Your contact

    TRUSTED PARTNER Your contact RENK Group AG Goegginger Straße 73 Investor Relations D-86159 Augsburg Germany Ingo Schachel, Head of IR www.renk.com Phone: +49 821 5700 1439 E-Mail: investors@renk.com Management Board: Susanne Wiegand (Chairman), Christian Schulz, www.ir.renk.com Dr. Alexander Sagel S

  24. Slide 24: Appendix

    APPENDIX 23 Trusted Partner

  25. Slide 25: Income statement

    Financial Appendix Income statement For the period, €m H1 2023 H1 2024 Revenue 410,2 510,3 Cost of sales (317,1) (395,6) Gross profit 93,1 114,7 Other operating income 6,7 3,4 Net allowances on financial assets (0,1) 0,5 Distribution expenses (27,6) (30,3) General and administrative expenses (31,5)

  26. Slide 26: Balance sheet – Total assets

    Financial Appendix Balance sheet – Total assets As of, €m Dec 31, 2023 Jun 30, 2024 Intangible assets 383,9 369,9 Property, plant and equipment 319,0 321,4 Other and financial investments 9,4 5,1 Deferred tax assets 18,2 23,2 Other non-current financial assets 0,4 1,6 Other non-current receivables 4

  27. Slide 27: Balance sheet – Total equity and liabilities

    Financial Appendix Balance sheet – Total equity and liabilities As of, €m Dec 31, 2023 Jun 30, 2024 Share capital (subscribed capital in previous year) 100,0 100,0 Capital reserves 223,8 227,6 Retained earnings 57,6 36,0 Cumulative other comprehensive income 22,5 29,0 Equity attributable to sharehol

  28. Slide 28: Cash flow statement

    Financial Appendix Cash flow statement For the period, €m H1 2023 H1 2024 Cash and cash equivalents at beginning of period 158,7 102,2 Profit / loss before tax 10,6 * 20,2 Income taxes paid (16,1) (9,8) Depreciation, amortization and impairment losses on intangible assets and property, pland and equ

  29. Slide 29: Endnotes (1/3)

    Endnotes (1/3) p.4 (1) Market CAGR of ~10% calculated as a blended rate by weighting 2022-27 CAGRs of total addressable market for defense (12.9% as per Renaissance market study) and civil (4.7% as per Roland Berger market study) with the defense / civil revenue split of around 70% / 30% in 2022A. G

  30. Slide 30: Endnotes (2/3)

    Endnotes (2/3) p.9 (1) Adjusted gross profit is defined as gross profit before PPA depreciation and certain items which management considers to be exceptional or non-recurring in nature. Adj. Gross Profit margin is defined as adjusted gross profit divided by revenue. (2) Adj. EBIT is defined as oper

  31. Slide 31: Endnotes (3/3)

    Endnotes (3/3) p.24 * The figures have been adjusted. For explanations of the changes for the first six months of financial year 2023, see half year report section 1 General principles (IAS 8) p.27 (1) Previous year's value before final purchase price adjustment (2) Financial result including divide

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