Schindler Holding Ltd. · SIX:SCHN
Schindler — Schindler Hldg Ag Akt — FY2020 Earnings Presentation
39 slides from Schindler's earnings presentation, Feb 17, 2021
Slide 1: Full year 2020 results
Full year 2020 results February 17, 2021 © Schindler 2021 I © Schindler 2021 I We Elevate I February 17, 2021 I
Slide 2: Agenda
Agenda 1. Megatrends and markets 2. Focus and priorities 3. Innovation and technology 4. Sustainability 5. Results 2020 6. Outlook 2 I © Schindler 2021 I We Elevate I February 17, 2021 I Investor Relations
Slide 3: 1. Megatrends and markets
1. Megatrends and markets 3
Slide 4: Megatrends remain intact
Megatrends remain intact Aging society Growing middle class More single households Smart buildings Digitalization Urbanization Sustainability 4
Slide 5: E&E markets long-term 20 years of growth
E&E markets long-term 20 years of growth Global new installations market Global installed base CAGR CAGR 6.5% 5.4% 2000 2020 2000 2020 Long-term new installations growth driven by megatrends Resilient service business with growth, even in crisis situations Modernization opportunities going for
Slide 6: Global markets muted in 2020
Global markets muted in 2020 China growing, other regions with varying degrees of decline Market growth vs. 2019 China APAC w/o China Americas EMEA Global By business (units) New installations (NI) Maintenance By business (value) New installations (NI) flat Maintenance By market segment (NI units) R
Slide 7: Market outlook 2021
Market outlook 2021 Expected growth but uncertainties remain Market growth in units China APAC w/o China Americas EMEA Global New installations Total Residential Commercial Public transport Growth across the board – all regions, segments and product lines are expected to grow Existing installations
Slide 8: Mid-/long-term market outlook: COVID-19 – a game changer?
Mid-/long-term market outlook: COVID-19 – a game changer? No fundamental change expected Market segment Mid-term growth outlook Long-term growth outlook New installations Residential Commercial Public transport Existing installations Modernization Maintenance Slow recovery in heavily affected geog
Slide 9: 2. Focus and priorities
2. Focus and priorities 9
Slide 10: The Schindler way
The Schindler way Grow faster than the market Doing business Industry leader by Ambitions sustainably Improve Foster a winning unique user experience profitability team Customer Data driven High performance Cost Priorities excellence innovation culture competitiveness Values Customers Employees Safe
Slide 11: Operational highlights in 2020
Operational highlights in 2020 Protecting people and business, driving innovation and digitalization Safety and well-being of people priority No. 1 Focus on customers, supply chain and liquidity Engagement and Passenger safety Financials retention improved and well-being ensured NPS increased Delive
Slide 12: Data driven innovation
Data driven innovation Accelerated investments in strategic initiatives Investments in strategic initiatives Digital Twin Creation of a Digital Twin for each product, enabling all information along the value chain to be accessed digitally in real time and worldwide resulting in reduced time to marke
Slide 13: 3. Innovation and technology
3. Innovation and technology 13
Slide 14: Integrated solutions
Integrated solutions Powering digital transformation in buildings New modular energy-efficient elevator solutions ready for a seamless and interactive Holistic building user experience Advanced adaptive maintenance, transit experience and remote services Schindler PORT Schindler Ahead Digital
Slide 15: Adding the EXTRA to the ORDINARY
Adding the EXTRA to the ORDINARY The new smart, modular elevators 15
Slide 16: Modular solutions for sustainable vertical mobility
Modular solutions for sustainable vertical mobility Digital customer journey for a unique user experience Customers Users Advanced connectivity Seamless, tailor-made offering Clean mobility solutions New features and Digital Media Services design opportunities _ Real-time performance tracking Top-cl
Slide 17: Turning elevators into communication platforms
Turning elevators into communication platforms Schindler Digital Media Services 17
Slide 18: 4. Sustainability
4. Sustainability 18
Slide 19: Driving sustainability
Driving sustainability We continue to build on the foundation of sustainability laid over five generations. Focusing on what matters Top Management commitment Increased engagement in NGOs/initiatives: 30% reduction of energy-use with new Official supporter of modular product lines CleanMobilit
Slide 20: Sustainability road map 2018–2022
Sustainability road map 2018–2022 Enhance safety Pioneer smart urban mobility Reduce the number of employee incidents and injuries. Increase the number of passengers using Schindler’s digitally connected Improving Total Case Rate (TCR) by 20% compared to 2017. elevators and escalators to over half a
Slide 21: 5. Results 2020
5. Results 2020 21
Slide 22: Resilience and innovation in adversity
Resilience and innovation in adversity Challenging environment negatively affected construction markets; improving situation in the second half of the year Business model proved resilient; cash flow up by 33% and increase in order backlog Swiss franc appreciation heavily weighed on results S
Slide 23: Key figures overview
Key figures overview Mixed regional trends, strong adverse FX impacts Q4 2020 in CHF million FY 2020 in CHF million Order intake Revenue Order intake Revenue 12’123 3’114 11’018 11’271 +1.1% 1) 2’951 3’016 +3.3% 1) 2’927 –3.2% 1) +0.4% 1) 10’640 –5.2% –3.0% –9.1% –5.6% Q4 2019 Q4 2020 Q4 2019 Q4 202
Slide 24: Order intake growth by region and product line
Order intake growth by region and product line China strong, EMEA growing, rest slowing Growth vs. FY 2019 China APAC w/o China Americas EMEA Group Units New installations Maintenance Value New installations Modernization / Maintenance 0 to <5% 5% to <10% 10% to <20% >20% negative positive 24 I © Sc
Slide 25: Order backlog
Order backlog Up in local currencies FY 2020 in CHF million 9’042 8’687 +2.4% 1) –3.9% FY 2019 FY 2020 1) Growth in local currencies 25 I © Schindler 2021 I We Elevate I February 17, 2021 I Investor Relations
Slide 26: Revenue development
Revenue development Growth across all regions in Q4 Q4 2020 in CHF million FY 2020 in CHF million EMEA Americas China BRL EUR Rest AP USD RMB Others +3.3% 1) +0.4% 1) –3.0% –5.6% 0 to <5% 5% to <10% 10% to <20% negative positive 1) Growth in local currencies 1) Growth in local currencies 2
Slide 27: Profit development
Profit development Significant negative FX impact Q4 2020 in CHF million FY 2020 in CHF million (–) fixed cost / pricing BRL EUR pressure USD RMB (–) inflation and COVID Others (–) strategic investments (+) operational measures Margin 12.1% Margin 11.7% Margin 11.7% Margin 11.1% 27 I © Sch
Slide 28: Net profit and cash flow
Net profit and cash flow Strong cash flow driven by improved NWC Q4 2020 in CHF million FY 2020 in CHF million Net profit Cash flow 1) Net profit Cash flow 1) 1’581 626 929 1’185 529 249 774 226 –9.2% +18.3% –16.7% +33.4% Q4 2019 Q4 2020 Q4 2019 Q4 2020 FY 2019 FY 2020 FY 2019 FY 2020 1) Cash flow f
Slide 29: 6. Outlook
6. Outlook 29
Slide 30: Outlook 2021
Outlook 2021 As of February 17, 2021 Business environment Schindler outlook for 2021 High level of uncertainty regarding Revenue growth of between 0% to 5% economic developments due to in local currencies, excluding any other pandemic remains unforeseeable events No full market recovery to 201
Slide 31: Financial calendar
Financial calendar 2021 2022 Full year results media conference February 17 February Closing date of shareholders' register March 16 Ordinary General Meeting Schindler Holding Ltd. March 23 March 22 1) First trading date ex-dividend March 25 1) Date of Schindler Holding Ltd. dividend payment March 2
Slide 32: Additional charts
Additional charts 32
Slide 33: Key figures as of December 31, 2020 – October to December
Key figures as of December 31, 2020 October to December In CHF million Q4 2020 Q4 2019 Δ% Δ% in LC Order intake 2 951 3 114 –5.2 1.1 Revenue 2 927 3 016 –3.0 3.3 Operating profit (EBIT) 298 335 –11.0 –4.2 in % 10.2 11.1 Operating profit (EBIT), adjusted 341 1) 364 2) –6.3 0.5 in % 11.7 12.1 Financin
Slide 34: Key figures as of December 31, 2020 – January to December
Key figures as of December 31, 2020 January to December In CHF million FY 2020 FY 2019 Δ% Δ% in LC Order intake 11 018 12 123 –9.1 –3.2 Revenue 10 640 11 271 –5.6 0.4 Operating profit (EBIT) 1 032 1 258 –18.0 –11.0 in % 9.7 11.2 Operating profit (EBIT), adjusted 1 185 1) 1 314 2) –9.8 –2.5 in % 11.1
Slide 35: Dividend
Dividend Proposal to the Annual General Meeting of CHF 4.00 Dividends Schindler Holding Ltd. in CHF 5.00 4.00 3.00 Dividend proposal Special dividend 2.00 Ordinary dividend 1.00 0.00 2016 2017 2018 2019 2020 70.0 52.0 45.5 49.8 59.5 Payout ratio in % of earnings per registered share/participation ce
Slide 36: Quarterly overview 2020/2019
Quarterly overview 2020/2019 In CHF million 2020 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Order intake 2 951 2 712 2 635 2 720 3 114 2 919 3 122 2 968 Revenue 2 927 2 754 2 512 2 447 3 016 2 824 2 849 2 582 Operating profit (EBIT) 298 313 255 166 335 327 322 274 in % 10.2 11.4 10.2 6.8 11.1 11.6 11.3 10.6 Opera
Slide 37: Quarterly development
Quarterly development Order intake, Revenue and EBIT adjusted Order intake Revenue EBIT adjusted (CHF million) (CHF million) (CHF million) 3’122 3’114 2’968 2’951 3’016 2’927 2’919 2’849 2’824 2’754 2’720 2’635 2’712 2’582 2’512 2’447 364 334 334 337 341 282 286 221 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 38: Balance sheet
Balance sheet In CHF million 31.12.2020 in % 31.12.2019 in % Cash and cash equivalents 2 483 22.8 2 370 22.4 Other current assets 4 892 45.0 4 587 43.2 Total current assets 7 375 67.8 6 957 65.6 Non-current assets 3 502 32.2 3 641 34.4 Total assets 10 877 100.0 10 598 100.0 Current liabilities 5 365
Slide 39: FX development
FX development Persisting negative translation impact Foreign currencies against CHF 10-year impact of FX on Revenue and EBIT FY In CHF million 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Revenue –900 14 –137 –206 –472 –49 51 –44 –216 –674 –2’633 -3.7% -4.6% -5.6% -5.6% -6.0% EBIT –110 –