Sts Group Ag · XETR:SF3
Sts — Investor Day (October 2019)
31 slides from Sts's investor day presentation, Oct 22, 2019
Slide 1: Capital Markets Day - STS Group AG
Capital Markets Day - STS Group AG STS Group AG Capital Markets Day Kameha Suite, Frankfurt October 22, 2019 Personal & third party confidential www.sts.group STS Group © 2019 Slide / 1
Slide 2: Welcome to our first Capital Markets Day!
Capital Markets Day - STS Group AG Welcome to our first Capital Markets Day! Personal & third party confidential www.sts.group STS Group © 2019 Slide / 2
Slide 3: Agenda
Capital Markets Day - STS Group AG Agenda Capital Markets Day STS Group 09:30 a.m. Opening Andreas Becker, CEO “STS Group AG: Strategy update“ 10:00 a.m. Dr. Ulrich Hauck, CFO “Business Figures and Financial Status“ 10:30 a.m. Q&A Session 10:50 a.m. Coffee break 11:00 a.m. Key Note: Sebastian Wolff,
Slide 4: Welcome to our CMD - Who are we?
Capital Markets Day - STS Group AG Welcome to our CMD Who are we? ANDREAS BECKER, CEO DR. ULRICH HAUCK, CFO PATRICK OSCHUST, COO STS Board Member since 2013. 22 years of STS Board Member and CFO of the STS Group STS Board Member since 2013. 19 years of industry industry experience. He has been CEO o
Slide 5: Preferred global acoustics and plastics solution provider
Capital Markets Day - STS Group AG We are the preferred global acoustics and plastics solution provider for transportation systems when it comes to design, comfort and efficiency! Personal & third party confidential www.sts.group STS Group © 2019 Slide / 5
Slide 6: Group at a glance: Successful transformation to global system supplier
Capital Markets Day - STS Group AG STS Group at a glance Successful transformation to global system supplier Long history to become one of the leading 2015 2017 global Tier 1 truck suppliers for soft and hard Greenfield plant in Acquisition of global composite truck trim. Until 2013 part of Autoneum
Slide 7: Group at a glance: Footprint
Capital Markets Day - STS Group AG STS Group at a glance Footprint STS Group has operations in 4 continents with FRANCE GERMANY POLAND about 2,500 employees. – St. Désirat – Hallbergmoos HQ – Miedzyrzecz – Précigné – Kandel STS Group has actually 13 production plants – Izernore and 4 logistic/servic
Slide 8: Intelligence for interior and exterior excellence
Capital Markets Day - STS Group AG STS Group at a glance Intelligence for interior and exterior excellence STS designs and provides solutions for a broad Front shelf variety of interior and exterior systems. So STS is the perfect partner to engineer successful heavy and light commercial vehicles as
Slide 9: Megatrends
Capital Markets Day - STS Group AG Megatrends Personal & third party confidential www.sts.group STS Group © 2019 Slide / 15
Slide 10: Megatrends of the automotive industry
Capital Markets Day - STS Group AG Megatrends Megatrends of the automotive industry EMISSION REDUCTION ALTERNATIVE POWERTRAIN DIGITALISATION TRANSPORT GROWTH MARKET IMPACT Personal & third party confidential STS Group is well positioned to develop new innovative solutions to changing market conditio
Slide 11: STS Group can provide intelligent solutions for all megatrends
Capital Markets Day - STS Group AG Megatrends STS Group can provide intelligent solutions for all megatrends STS Solutions Personal & third party confidential STS Group is well positioned to develop new innovative solutions to changing market conditions. All megatrends are an opportunity for the act
Slide 12: Group Strategy
Capital Markets Day - STS Group AG STS Group Strategy Personal & third party confidential www.sts.group STS Group © 2019 Slide / 18
Slide 13: Roadmap to global preferred system supplier with sustainable profit growth
Capital Markets Day - STS Group AG STS Group strategy Roadmap to global preferred system supplier with sustainable profit growth GROWTH IN CHINA MARKET ENTRY USA ADD-ON ACQUISITIONS China as the largest automotive market USA is an attractive market being the third Continuous market screening for pot
Slide 14: Growth in China
Capital Markets Day - STS Group AG STS Group strategy Growth in China POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − Largest market worldwide − Double current sales volume in the − All major truck manufacturers are − Local competitors only small local mid-term already STS customers family busine
Slide 15: China with substantial order intake in 2019
Capital Markets Day - STS Group AG STS Group at a glance China with substantial order intake in 2019 Intensive sales activities in China in 2019 to Lifetime from SOP acquire additional orders for Truck and eVechicle. 2025 Order intake achieved in China in 2019 translates into significant increase of
Slide 16: Market entry USA
Capital Markets Day - STS Group AG STS Group strategy Market entry USA POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − Third-largest truck market worldwide − Market entry with composite − Projects for American truck OEM − Long-nose trucks with higher value technology acquired per vehicle (+120% m
Slide 17: New Products
Capital Markets Day - STS Group AG STS Group strategy New Products POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − eMobility and emission regulation − Supplier for emerging eMobility − Tech-Days with several customers trigger need for new products market − Bundling of group-wide R&D activities −
Slide 18: eVehicle development within the next years
Capital Markets Day - STS Group AG Megatrends eVehicle development within the next years Europe1) China1) NAFTA1) 33% 38% 38% ICE ICE ICE 55% 46% 44% HEV HEV HEV 12% 15% 18% BEV BEV BEV 2019 2021 2023 2025 2019 2021 2023 2025 2019 2021 2023 2025 − Total share of HEV (Hybrid Electric − Total share of
Slide 19: Significant sales potential with battery covers
Capital Markets Day - STS Group AG STS Group at a glance Significant sales potential with battery covers Increase of hybrid- and battery electric vehicle production until 2025, leads to further sales Battery Cover Market Europe1) Battery Cover Market China 1) volume from battery covers. SMC SMC STS
Slide 20: Achievement of several milestones in line with STS strategy
Capital Markets Day - STS Group AG STS Group strategy Achievement of several milestones in line with STS strategy February New business for BU Acoustics passenger car business awarded April Third Chinese plant opened in Shiyan with successful SOP May Major order for innovative long-nose trucks in Ch
Slide 21: STS Group an attractive asset for today and tomorrow
Capital Markets Day - STS Group AG STS Group at a glance STS Group an attractive asset for today and tomorrow Investment in STS Group with attractive value proposition: Global growth potential − leading market positions, − well positioned with regard to relevant Today … Solid order book … megatrends
Slide 22: Financial Highlights H1 2019
Capital Markets Day - STS Group AG Financial Highlights H1 2019 Personal & third party confidential www.sts.group STS Group © 2019 Slide / 28
Slide 23: 2019 is challenging due to weak automotive and truck markets
Capital Markets Day - STS Group AG Financial Highlights 2019 is challenging due to weak automotive and truck markets Revenues Adj. EBITDA 2018 -11.2% 2019 -10.1% Comments: 218.2 193.8 16.5 109.3 98.3 8.4 5.8 10.1 Revenues decreased by 11.2% in H1 2019 STS Group − Weak passenger car market in Europ
Slide 24: Adj. EBITDA Q2 2019 below prior year, but improved versus Q1 2019
Capital Markets Day - STS Group AG Financial Highlights Adj. EBITDA Q2 2019 below prior year, but improved versus Q1 2019 Adj. EBITDA (in mEUR) Adj. EBITDA Margin (in %) 8.1 8.4 Adj. EBITDA Q2 18 Q2 19 H1 18 H1 19 EBITDA 5.8 5.8 Acoustics 0.9 2.6 1.5 1.2 4.6 4.3 4.3 3.5 3.5 3.3 Plastics 13.2 9.6 10.
Slide 25: Free Operating Cash Flow improved versus Q2 2018
Capital Markets Day - STS Group AG Financial Highlights Free Operating Cash Flow improved versus Q2 2018 CAPEX (in mEUR) Free Operating Cash Flow1) (in mEUR) 1) Cashflow from Operations – CAPEX - Lease cash outs +6.7% 3.6 3.7 2.4 0.9 2.9 3.0 3.1 3.2 2.5 -4.8 -4.9 -6.6 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q
Slide 26: Several cash flow optimization measures applied
Capital Markets Day - STS Group AG Financial Highlights Several cash flow optimization measures applied EARNINGS CAPEX TRADE WORKING CAPITAL Measures with short- and midterm Focus on CAPEX to enhance efficiency Optimize Trade Working Capital impact: or accommodate new orders - Optimizing operational
Slide 27: Improving cash flow with working capital optimization
Capital Markets Day - STS Group AG Financial Highlights Improving cash flow with working capital optimization TRADE RECEIVABLES INVENTORIES TRADE PAYABLES Balancing trade receivables Optimizing inventories in different Improving payment terms and trade payables locations worldwide of trade payables
Slide 28: Leverage ratio of 2.2 as per end of Q2 2019 on a solid level
Capital Markets Day - STS Group AG Financial Highlights Leverage ratio of 2.2 as per end of Q2 2019 on a solid level Net financial debt and leverage (in mEUR / multiple) Financial Debt (in mEUR) Net Debt 2018 2019 52.9 +0.9% Leverage Ratio leasing adj. 31.3. 30.6. 30.9. 31.12. 31.3. 30.6. Bank loans
Slide 29: Guidance for 2019 adjusted due to weaker than expected automotive markets
Capital Markets Day - STS Group AG Guidance & Capital Market Guidance for 2019 adjusted due to weaker than expected automotive markets 2019 OLD (February 27, 2019) 2019 NEW (August 2, 2019) Market environment in the automotive Reduced expectations for automotive industry will continue to be challeng
Slide 30: Thank you for your attention!
Capital Markets Day - STS Group AG Thank you for your attention! Contact us Stefan Hummel Head of Investor Relations ir@sts.group +49 81 12 44 94 12 Personal & third party confidential www.sts.group STS Group © 2019 Slide / 38
Slide 31: Disclaimer
Capital Markets Day - STS Group AG Disclaimer This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in pa