Schindler Holding Ltd. · SIX:SCHN
Schindler — Schindler Hldg Ag Akt — FY2023 Earnings Presentation
36 slides from Schindler's earnings presentation, Feb 14, 2024
Slide 1: Annual results 2023 & outlook
Annual results 2023 & outlook February 14, 2024 © Schindler 2024 I © Schindler 2024 I We Elevate I February 14, 2024 I Investor Relations
Slide 2: Agenda
Agenda 1. Highlights 2023 Silvio Napoli 2. Market Development Paolo Compagna 3. Financial Results 2023 Carla De Geyseleer 4. Priorities 2024 Silvio Napoli 5. Outlook Carla De Geyseleer 6. Q&A Silvio Napoli/Paolo Compagna/Carla De Geyseleer 2 I © Schindler 2024 I We Elevate I February 14, 2024 I Inve
Slide 3: Highlights 2023
Highlights 2023 Performance improvement trajectory continues +31% EBIT +85% Cash flow from operations Pricing + EFFICIENCY New standardized > Inflation modular platform ready for global launch +Net42% CHF 4.00 + 1.00/share profit and EPS proposed dividend +5.0% Service portfolio growth +7.4% Dividen
Slide 4: Disciplined execution yields results
Disciplined execution yields results Sustained performance improvement EBIT adjusted evolution 2022 – 2023 in CHF million EBIT Margin 9.0% 9.7% 8.5% 11.4% 9.2% 11.1% 10.2% 11.4% 334 338 311 309 272 272 236 230 2022 2023 Q1 Q2 Q3 Q4 4 I © Schindler 2024 I We Elevate I February 14, 2024 I Investor Rel
Slide 5: Order intake and backlog margins developing positively
Order intake and backlog margins developing positively 70% of legacy backlog consumed, rest still a drag New Installations order intake margin Remaining 30% of dilutive backlog still to be executed New Installations order backlog margin (sequential development) 100% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2
Slide 6: Top Speed 23 program closed
Top Speed 23 program closed Total cost CHF 167 million, 4 years payback Key elements Achievements Portfolio growth ▪ More than 30% of maintenance base connected Portfolio growth & connectivity to the cloud, digital revenue +50% Up to Sustainable modernization 270 ▪ Cost competitive, solutions innova
Slide 7: Agenda
Agenda 1. Highlights 2023 Silvio Napoli 2. Market Development Paolo Compagna 3. Financial Results 2023 Carla De Geyseleer 4. Priorities 2024 Silvio Napoli 5. Outlook Carla De Geyseleer 6. Q&A Silvio Napoli/Paolo Compagna/Carla De Geyseleer 7 I © Schindler 2024 I We Elevate I February 14, 2024 I Inve
Slide 8: Market development 2023
Market development 2023 New Installations further deteriorating, Modernization taking off, continued growth in Service APAC Units China w/o China Americas EMEA Global New Installations ––– ––– –– ––– Modernization +++ +++ + ++ ++ Service ++ ++ + + ++ 0 to <5% + 0 to > –5% – 5% to 10% + + –5% to –10%
Slide 9: Market outlook 2024
Market outlook 2024: No recovery of NI market expected Modernization market with biggest growth opportunities APAC Units China w/o China Americas EMEA Global New Installations –– ++ – – –– Modernization +++ +++ + ++ ++ Service ++ ++ + + ++ 0 to <5% + 0 to > –5% – 5% to 10% + + –5% to –10% – – >10% +
Slide 10: Balanced global footprint
Balanced global footprint Opportunities in strategic markets New Installations Service North America China North America China EMEA EMEA Latin America Latin America Asia-Pacific Asia-Pacific Schindler’s position among global OEMs Leading position (No. 1 or 2) Challenger (below No. 2) 10 I © Schindle
Slide 11: China New Installations: In search of a new balance
China New Installations: In search of a ‟new balance” NI market still declining 6% Floor space started and floor space under construction in decline Special pre-sales account introduced 5% 20% 4% 10% 3.7% 5.2% 3% 0% -1.2% -10% 2% -7.2% -7.4% -11.4% -20% 1% -30% -20.9% -39.4% -40% 0% 2014 2015 2016 2
Slide 12: Agenda
Agenda 1. Highlights 2023 Silvio Napoli 2. Market Development Paolo Compagna 3. Financial Results 2023 Carla De Geyseleer 4. Priorities 2024 Silvio Napoli 5. Outlook Carla De Geyseleer 6. Q&A Silvio Napoli/Paolo Compagna/Carla De Geyseleer 12 I © Schindler 2024 I We Elevate I February 14, 2024 I Inv
Slide 13: Improving operating performance and increasing profitability
Improving operating performance and increasing profitability Q4 2023 vs. Q4 2022 4’900.00Order intake 4’700.00 Revenue Operating cash flow 4’500.00 4’300.00 –2.7% – 5.0% +6.7% +3.8% +1.5% YoY growth +4.7% +10.0% +15.2% +0.9% +4.3% 4’100.00 in LC 1 271 3’900.00 3’700.00 3’500.00 3’300.00 2 994 2 889
Slide 14: Performance improving in spite of sustained FX impact
Performance improving in spite of sustained FX impact Impact on order intake, revenue and EBIT Full Year 2023 (CHF million) Order intake Revenue EBIT 0 -200 – 74 -400 -600 -800 – 721 – 688 -1000 Since 2008 (CHF million) –4 666 Revenue –602 EBIT 14 I © Schindler 2024 I We Elevate I February 14, 2024
Slide 15: Order intake
Order intake Growth in local currencies against tough market environment – foreign exchange headwinds reduce growth by more than 600bps Q4 2023 in CHF million Full Year 2023 in CHF million YoY growth in LC +1.5% +1.7% YoY growth in CHF –5.0% –4.4% 15 I © Schindler 2024 I We Elevate I February 14, 20
Slide 16: Order intake
Order intake Growth driven by strong Service business, Modernization picked up in 4th quarter, New Installations volume outperformed market Q4 2023 vs. Q4 2022 Full Year 2023 vs. 2022 APAC APAC China w/o China Americas EMEA Global China w/o China Americas EMEA Global Value (in LC) Value (in LC) New
Slide 17: Revenue
Revenue Growth in LC for all three main regions and product lines; negative FX impact reaching a record high CHF – 688 million in CHF million in CHF million 3 036 2 965 2 960 2 926 2 796 2 812 2 713 EMEA ++ 2 632 Americas ++ China – Rest AP ++ 2022 2023 Q1 Q2 Q3 Q4 YoY growth in LC +10.0% +15.2% +0.
Slide 18: EBIT adjusted and EBIT
EBIT adjusted and EBIT Improvement driven by operational efficiency gains and positive pricing in CHF million Pricing Top Speed 23 +35 > Restructuring cost +8 Real estate gain BuildingMinds +32 +1 Efficiency Inflation EBIT adj. EBIT Operational Δ Adjustments FX EBIT EBIT adj. 2022 2022 2023 2023 Gro
Slide 19: Net profit +42%, reaching CHF 935 million
Net profit +42%, reaching CHF 935 million Earnings per share reached CHF 8.05 Q4 2023 in CHF million Full Year 2023 in CHF million +42% 935 659 +37% 244 178 Q4 22 Q4 23 2022 2023 5.9% 8.2% Margin 5.8% 8.1% 1.54 2.09 Earnings per share (CHF) 5.67 8.05 19 I © Schindler 2024 I We Elevate I February 14,
Slide 20: Operating cash flow uptake
Operating cash flow uptake Driven by higher operating profit and improved net working capital Q4 2023 in CHF million Full Year 2023 in CHF million + Operational efficiency + Pricing + Supply chain recovery 20 I © Schindler 2024 I We Elevate I February 14, 2024 I Investor Relations
Slide 21: Proposed dividend CHF 4.00 + 1.00 extraordinary (150 years)
Proposed dividend CHF 4.00 + 1.00 extraordinary (150 years) Going forward, payout ratio range increased to 50 – 80% +1.00 4.00 4.00 4.00 2021 2022 2023 Payout ratio (%) 52 70 62 Dividend yield, closing price registered share 1.8 2.1 2.4 on the day of Board of Directors decision (%) 21 I © Schindler
Slide 22: Key figures as of December 31, 2023 January to December
Key figures as of December 31, 2023 January to December In CHF million FY 2023 FY 2022 r% r% in LC Order intake 11 439 11 961 –4.4 1.7 Revenue 11 494 11 346 1.3 7.4 Operating profit (EBIT) 1 188 904 31.4 39.6 in % 10.3 8.0 Operating profit (EBIT), adjusted 1 255 1) 1 047 2) 19.9 27.3 in % 10.9 9.2 F
Slide 23: Agenda
Agenda 1. Highlights 2023 Silvio Napoli 2. Market Development Paolo Compagna 3. Financial Results 2023 Carla De Geyseleer 4. Priorities 2024 Silvio Napoli 5. Outlook Carla De Geyseleer 6. Q&A Silvio Napoli/Paolo Compagna/Carla De Geyseleer 23 I © Schindler 2024 I We Elevate I February 14, 2024 I Inv
Slide 24: Market environment
Market environment Resilient business model to overcome persistent challenges Tailwinds Headwinds Modernization market Service steady growth NI markets under Trade labor scarcity taking off pressure Inflation abating Material cost Wage inflation FX effects Regulatory pressure Geopolitical Sustained
Slide 25: Operational priorities for 2024
Operational priorities for 2024 People Product Successful launch of new standardized Build teams of champions modular platform Fight for talent Digital services 11% Frontline is the bottom line Increased portfolio retention rate Organizational efficiency EBIT Fleet transformation Field efficiency “G
Slide 26: New standardized modular elevator platform
New standardized modular elevator platform Global launch Performance tracking 2024 Europe India Latin America NPS Order Intake 2025 China Asia-Pacific Sales margin On time delivery North America Conversion rate Installation efficiency & execution 26 I © Schindler 2024 I We Elevate I February 14, 202
Slide 27: Agenda
Agenda 1. Highlights 2023 Silvio Napoli 2. Market Development Paolo Compagna 3. Financial Results 2023 Carla De Geyseleer 4. Priorities 2024 Silvio Napoli 5. Outlook Carla De Geyseleer 6. Q&A Silvio Napoli/Paolo Compagna/Carla De Geyseleer 27 I © Schindler 2024 I We Elevate I February 14, 2024 I Inv
Slide 28: Attractive industry – megatrends fueling E&E demand
Attractive industry – megatrends fueling E&E demand Every day, we move >2 billion passengers across >100 countries Schindler covers the entire lifetime of elevators and escalators Climate change Urbanization research and develop – plan and design – market and sell Business Value Silver society Susta
Slide 29: Resilient performance across cycles
Resilient performance across cycles Asset light service model, yielding a high return on capital and generating high cash flows Balanced global footprint Robust growth in service Steady revenue growth Revenue split (CHF) Service portfolio Service revenue Revenue growth in LC growth in units growth i
Slide 30: Mid-term target: 13% EBIT
Mid-term target: 13% EBIT Focus on performance drivers across the value chain 13.0% 10.3% Products New Installations Modernization Digital services Procurement Connectivity Efficiency Field execution Portfolio density SG&A Processes Back-office Support functions Business Mix EBIT reported Mid-term F
Slide 31: Outlook
Outlook Outlook 2024: Mid-term outlook: 11% EBIT reported, 13% EBIT reported Low single digit revenue growth ▪ New standardized modular platform launch ▪ New standardized modular platform growth ▪ Operational efficiency and conversion ▪ Pricing discipline ▪ Full consumption of legacy backlog ▪ Portf
Slide 32: Highlights 2023
Highlights 2023 Performance improvement trajectory continues +31% EBIT +85% Cash flow from operations Pricing + EFFICIENCY New standardized > Inflation modular platform ready for global launch +Net42% CHF 4.00 + 1.00/share profit and EPS proposed dividend +5.0% Service portfolio growth +7.4% Dividen
Slide 33: Q&A
Q&A Q&A Q&A Q&Ais the year to deliver Q&A 20232023 is the year to work together as one team and deliver 33
Slide 34: Key figures as of December 31, 2023 October to December
Key figures as of December 31, 2023 October to December In CHF million Q4 2023 Q4 2022 r% r% in LC Order intake 2 844 2 994 –5.0 1.5 Revenue 2 960 3 036 –2.5 4.3 Operating profit (EBIT) 296 249 18.9 27.7 in % 10.0 8.2 1) Operating profit (EBIT), adjusted 338 309 2) 9.4 17.2 in % 11.4 10.2 Financing
Slide 35: Quarterly overview Key figures
Quarterly overview Key figures In CHF million 2023 2022 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Order intake 2 844 2 657 3 049 2 889 2 994 2 740 3 063 3 164 Revenue 2 960 2 812 2 926 2 796 3 036 2 965 2 713 2 632 Operating profit (EBIT) 296 290 320 282 249 252 192 211 in % 10.0 10.3 10.9 10.1 8.2 8.5 7.1 8.0 Operat
Slide 36: Calendar 2024/2025
Calendar 2024/2025 2024 2025 Full year results analyst and media conference February Ordinary General Meeting Schindler Holding Ltd. March March Publication of key figures as of March 31 April April Publication of Interim Report as of June 30 July July Publication of key figures as of September 30 O