Jost Werke Se · XETR:JST
Jost Werke — Q3 2020 Earnings Presentation
21 slides from Jost Werke's earnings presentation, Nov 12, 2020
Slide 1: Results Q3 2020
JOST WERKE AG – NOVEMBER 12, 2020 RESULTS Q3 2020 JOACHIM DÜRR (CEO) & CHRISTIAN TERLINDE (CFO)
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS CONFIDENTIAL AND MUST NOT BE RELEASED, PUBLISHED, TRANSMITTED OR DISTRIBUTED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation
Slide 3: Key Developments – Q3 2020
Key Developments – Q3 2020 Strong Q3 2020 despite ongoing pandemic impact: Supported by the acquisition of Ålö, group sales grew by +11% to €197m and adj. EBIT increased by +7% to €20m year-over-year. Ålö post-merger integration on track: Ålö in line with expectations despite pandemic. Ålö raised gr
Slide 4: Market Development Q3 2020 vs. Q3 2019
Market Development Q3 2020 vs. Q3 2019 EUROPE NORTH AMERICA APA In Q3 heavy truck production Class 8 production recovered Chinese market boosted Q3 TRUCK -27% started to recover from severe -40% from plant closures in Q2 and +47% truck demand further, while pandemic impact. started rising in Septemb
Slide 5: Key Financials Q3 2020
KEY FINANCIALS Q3 2020 5 JOST Werke AG – ANALYSTS’ AND INVESTORS’ PRESENTATION Q3 2020 – NOVEMBER 12, 2020
Slide 6: Europe – Growth Driven by Ålö Acquisition and Improving End Markets
Europe – Growth Driven by Ålö Acquisition and Improving End Markets KEY FINANCIALS OVERVIEW KEY HIGHLIGHTS Reported +0.2% +13.9% • Sales in Europe grew by +14% to €117m in Q3 2020, Growth • Ålö contributed €32m to European sales. Organic sales (excl. Ålö and FX) Organic Growth -24.8% -16.0% contract
Slide 7: North America – Markets Begin to Recover in Q3 but Remain Weak Still
North America – Markets Begin to Recover in Q3 but Remain Weak Still KEY FINANCIALS OVERVIEW KEY HIGHLIGHTS • Sales in North America contracted in Q3 2020 only by -4.2% to €41m Reported -4.9% -4.2% Growth • Ålö contributed €12m in revenues to JOST’s North American business, partly Organic Growth -30
Slide 8: Asia-Pacific-Africa – JOST Improves Position in APA Posting Strong Growth
Asia-Pacific-Africa – JOST Improves Position in APA Posting Strong Growth KEY FINANCIALS OVERVIEW KEY HIGHLIGHTS Reported -9.3% +20.8% • JOST’s sales in APA grew by +21% to €39m in Q3 2020, compared to previous Growth year Organic Growth -6.8% +25.6% • FX-headwinds amounted to -5.9%. Ålö’s contribut
Slide 9: Group – JOST Posted Sales and Earnings Growth in Q3 Despite Pandemic
Group – JOST Posted Sales and Earnings Growth in Q3 Despite Pandemic KEY FINANCIALS OVERVIEW KEY HIGHLIGHTS Reported -2.7% +10.7% • For the first time in 2020, JOST’s sales grew compared to prior year’s quarter, Growth up by +11% to €197m. Organic Growth -22.6% -11.4% • Ålö contributed €44m to group
Slide 10: Impact of Ålö's Acquisition on Exceptionals
Impact of Ålö's Acquisition on Exceptionals EXCEPTIONALS (IN M€) KEY HIGHLIGHTS • During Q3 2020 the major adjustments came from non- -19.9m -34.4m -6.6m -11.9m operational D&A from PPA amounting to €-7.3m. Thereof €-1.1m result from Ålö's PPA; the remaining €-6.2m stem from -1.2 JOST’s historical P
Slide 11: Development of Earnings After Taxes and EPS
Development of Earnings After Taxes and EPS RECONCILIATION OF ADJUSTED EARNINGS Q3 2020 (IN M€) KEY HIGHLIGHTS • In Q3 2020 reported net income amounted to €4.6m (Q3 2019: €11.1m) and reported EBIT amounted to €8.3m • Adjustments to EBIT in Q3 2020 resulted mostly from D&A of PPA as well as acquisit
Slide 12: Development of Equity Ratio and Net Debt
Development of Equity Ratio and Net Debt BALANCE SHEET OVERVIEW AS AT SEPT. 30, 2020 COMMENTARY 18.4% • The increase in financial liabilities due to the acquisition of Ålö led to a reduction of ROCE1 ROCE and equity ratio as well as to an increase of net debt and leverage, compared to (%) 9.6% year-
Slide 13: Strong Cash Generation Profile Remained Intact Despite Pandemic
Strong Cash Generation Profile Remained Intact Despite Pandemic CASH FLOW OVERVIEW IN Q3 2020 COMMENTARY Cash conversion2 83.5% 83.0% Free cash flow • Cash conversion rate remained strong at 83.0%, despite the effects of the coronavirus 29.9 31.6 (€m) pandemic on the industry. Free cash flow improve
Slide 14: Outlook 2020
Outlook 2020 14 JOST Werke AG – ANALYSTS’ AND INVESTORS’ PRESENTATION Q3 2020 – NOVEMBER 12, 2020
Slide 15: Market Outlook for FY 2020
Market Outlook for FY 2020 EUROPE NORTH AMERICA APA TRUCK (30) – (25)% (45) – (40)% 5 – 10% Demand for heavy duty trucks has Production of class 8 trucks has started Expectations for APA improved further improved in H2, but still below 2019 to improve in H2. Dealer stock is going driven by the stron
Slide 16: Outlook 2020 – Confirmed
Outlook 2020 – Confirmed Single digit percent decline y-o-y Sales (2019: 736m€) Adj. EBITDA margin Higher than 10.0% Adj. EBIT margin Higher than 7.0% Capex (in % of sales) Approx. 2.5% of sales 16 JOST Werke AG – ANALYSTS’ AND INVESTORS’ PRESENTATION Q3 2020 – NOVEMBER 12, 2020
Slide 17: Executive Summary
Executive Summary JOST had a solid Q3 2020 despite the ongoing pandemic impact. The recovery of the transport markets as well as the agricultural business all contributed to the good result. Ålö posted a good performance in Q3 despite typical seasonality of the agricultural business. Integration pro
Slide 18: Q&A Appendix
Q&A Appendix Further information 18 JOST Werke AG – ANALYSTS’ AND INVESTORS’ PRESENTATION Q3 2020 – NOVEMBER 12, 2020
Slide 19: Development of JOST's Sales and Adjusted EBIT by Quarter
Development of JOST’s Sales and Adjusted EBIT by Quarter SALES (€m) ADJ. EBIT (€m) 199 202 192 197 190 191 187 187 181 181 178 175 166 172 171 168 149 147 157 23.7 23.9 22.7 22.5 21.8 21.3 20.3 20.6 19.5 20.3 19.0 16.8 15.9 14.1 14.3 12.6 10.4 11.2 11.1 12.0% 12.5%12.0% 12.5% 11.2% 12.0%11.2% 11.4%
Slide 20: Shareholder Structure and Share Information
Shareholder Structure and Share Information SHAREHOLDER STRUCTURE AS OF NOVEMBER 12, 2020 1 SHARE INFORMATION ISIN DE000JST4000 Trading symbol JST 18.0% Allianz Global Investors German Sec. Code Number (WKN) JST400 58.1% Mondrian Shares in issue 14,900,000 Index SDAX Universal-Investment-Gesellschaf
Slide 21: Financial Calendar 2020 Contact Financial Calendar 2021
Financial Calendar 2020 Contact Nov. 18 Virtual Road Show Investor Relations Contact: Nov. 25 Virtual Road Show ROMY ACOSTA Nov. 30 Berenberg European Investment Conference (virtual) Head of Investor Relations Financial Calendar 2021 JOST Werke AG SIEMENSSTRASSE 2 Feb. 23 Publication of Preliminary