SAF-Holland SE · XETR:SFQ
SAF-Holland — Q1 2016 Earnings Presentation
27 slides from SAF-Holland's earnings presentation, May 9, 2016
Slide 1: Strategy 2020 – First quarter results 2016
Strategy 2020 First quarter results 2016 Detlef Borghardt, CEO Wilfried Trepels, CFO May 09, 2016
Slide 2: Agenda
Agenda 1 Highlights Q1 2016 3 2 Market Trend 5 3 Financial information 9 4 Outlook 21 2
Slide 3: Highlights of the first quarter 2016
Highlights of the first quarter 2016 Targets Despite a burdening market environment in many emerging countries and severe truck market downturn in the US, organic sales almost reached PY level (- 2.1%) Even in such a challenging environment adj. EBIT margin increased by 40 BPs and climbed to 8.7% Pl
Slide 4: Agenda
Agenda 1 Highlights Q1 2016 3 2 Market Trend 5 3 Financial information 9 4 Outlook 21 4
Slide 5: Truck and trailer market trend
Truck and trailer market trend Global truck forecast Change Change 2014 2015 in % yoy 2016 in % yoy ACT Truck Build1) 297,097 323,282 +8.8 236,522 -26.8 North America Class 8 FTR Truck Shipment2) 294,855 319,614 +8.4 235,560 -26.3 Change Change 2014 2015 in % yoy 2016 in % yoy Western, Central & LMC
Slide 6: Truck market development Europe
Truck market development Europe New registrations heavy commercial vehicles (HCV) >16 tons Analytics • Pent-up demand and sustained moderate economic recovery form the basis for further, yet moderate growth in European truck 40000 production • For 2016 SAFH expects a low to mid single- digit percent
Slide 7: Truck market trend North America
Truck market trend North America Analytics Class 8 net orders • US trucks: Market decreases further but is expected to stabilize over the next months on lower basis of comparison • Less than 10% of SAFH group sales depend upon US truck segment: vocational and renewed governmental business is not OE-
Slide 8: Agenda
Agenda 1 Highlights Q1 2016 3 2 Market Trend 5 3 Financial information 9 4 Outlook 21 8
Slide 9: Executive Summary
Executive Summary Organic sales almost at PY level in a challenging environment • Group sales Q1 down 4.1% to € 259.9 mn (271.0) yet only minus 2.2% organically 1 • Translational FX effects burden (€ -2.3 mn), Aerway sale effect of € -2.7 mn • Corpco € 3.0 mn behind plan in Q1 due to changed order p
Slide 10: Business performance – group sales and group adjusted EBIT
Business performance – group sales and group adjusted EBIT Sales in €mn Adjusted EBIT in €mn 400 1,200 25 22.7 22.6 14% 1,000 20 12% 271.0 259.9 -11.1mn 10% 15 200 8.7% 8% 8.3% 10 +0.1mn 6% 4% 5 2% 00 0 0% Q1 2015 Q1 2016 Q1 2015 Q1 2016 300 287.7 271.0 30 26.9 16% 258.8 259.9 243.2 24.1 22.6 22.7 2
Slide 11: Business performance – sales by segment and by channel
Business performance – sales by segment and by channel Sales in €mn by Segment Sales in €mn by OEM and Aftermarket EMEAI Americas APAC/ China OEM Aftermarket 300 300 17.6 -17.6% -3.5% 14.5 (6.5%) 250 (5.5%) 250 66.1 63.8 -14.9% (24.4%) (24.5%) 200 117.7 200 100.2 -4.3% (43.4%) (38.6%) 150 150 271.0
Slide 12: Business performance – EMEAI
Business performance – EMEAI Sales in €mn Summary 160 145.2 • Strong sales increase in Q1 16 by 7.0% to € 145.2 mn (135.7) 135.7 140 • Sales trend driven chiefly by higher demand in OE business for 120 trailer components as moderate economic recovery in most 100 80 Eurozone markets continues, AM sol
Slide 13: Business performance – Americas
Business performance – Americas Sales in €mn Summary 140 • Q1 16 sales declined by 14.9% to € 100.2 mn (117.7); Adj.for 117.7 120 100.2 FX and Aerway (approx. € 5.0 mn), sales declined by 10.6% 100 • Sales on an organic basis declined due to the as expected 80 strong decrease of the North American t
Slide 14: Business performance – APAC/ China
Business performance – APAC/ China Sales in €mn Summary 20 17.6 • Overall. sales in Q1 16 eased by 17.6% to € 14.5 mn (17.6) 14.5 • Solid performance in China yet Corpco € 3.0 mn behind plan in 15 Q1 16 due to changed order process & rescheduling 10 • Weak general economic environment in most ASEAN
Slide 15: Business performance – Outstanding Q1 cash generation
Business performance – Outstanding Q1 cash generation Operating cash flow before income tax in € mn Summary 40 • Operating cash flow in Q1 16 increased significantly to € 22.5 mn 35.8 35 (2.3) fostered by improved working capital management following 28.8 30 concluded plant consolidation 25 22.5 • L
Slide 16: Financials – Balance Sheet
Financials – Balance Sheet in € mn 03/31/2016 % 12/31/2015 % Non-current assets 374.4 40.5% 380.3 42.8% Inventories 127.2 13.8% 118.0 13.3% Other current assets 148.5 16.0% 129.5 14.6% Other short-term investments 75.0 8.1% 115.0 12.9% Cash and cash equivalents 199.6 21.6% 145.7 16.4% Total assets 9
Slide 17: Financials – Profit and Loss statement
Financials – Profit and Loss statement Comments in € mn Q1/2016 % Q1/2015 % • Organic sales almost at PY level: 4.1% sales Sales 259.9 100% 271.0 100% decline, organically down only 2.2%: € 2.3 mn thereof attributable to neg. translational FX Cost of sales -206.7 -79.5% -220.0 -81.2% effects, € 2.7
Slide 18: Financials – Cash Flow statement
Financials – Cash Flow statement in €mn Q1/2016 Q1/2015 Result before tax 15.9 27.1 Finance result 4.9 -6.6 Amortization/depreciation 5.7 5.2 Changes in Net Working Capital -5.5 -24.3 Other items cash flow 1.5 0.9 Operating cash flow before income tax 22.5 2.3 Income tax paid -4.1 -2.9 Operating cas
Slide 19: Share price and shareholder structure
Share price and shareholder structure Development of SAF-HOLLAND share price vs. indices (in %) Shareholder Structure (in %) Basic data for share as of March 31, 2015 SAF-HOLLAND share price development in Q1/2016 ISIN LU0307018795 • Share price eased 13.1% in Q1 16 Number of shares 45,361,112 • SAF
Slide 20: Agenda
Agenda 1 Highlights Q1 2016 3 2 Market Trend 5 3 Financial information 9 4 Outlook 21 20
Slide 21: Outlook: Financial targets 2016 confirmed
Outlook: Financial targets 2016 confirmed FY 2016* Strategy 2020 Organically constant or slight increase Organic: € 1,250 mn Sales € 1,050 mn to € 1,070 mn + Coop., JVs, Acquisitions: € 1,500 mn Adj. EBIT-margin 8 - 9% ≥ 8% NWC ratio 12 – 13% 12% CAPEX Approx. € 28 mn € 26 mn - € 28 mn p.a. 21 * Ass
Slide 22: Appendix
Appendix NLD)
Slide 23: Reconciliation statement for adjusted EBIT
Reconciliation statement for adjusted EBIT in €mn Q1/2016 Q1/2015 Result of the period 11.1 18.1 Income tax 4.8 9.1 Financial Result 4.9 -6.6 Depreciation and amortization from PPA 1.6 1.6 Restructuring and integration costs 0.3 0.4 Adjusted EBIT 22.7 22.6 in % of Sales 8.7% 8.3% 23
Slide 24: Key financials
Key financials in €mn Q1/2016 Q1/2015 Sales 259.9 271.0 Cost of sales -206.7 -220.0 Gross profit 53.2 51.0 Margin 20.5% 18.8% Adjusted result 12.4 20.3 Margin 4.8% 7.5% Adjusted EPS in € 0.27 0.45 Adjusted EBITDA 26.8 26.2 Margin 10.3% 9.7% Adjusted EBIT* 22.7 22.6 Margin 8.7% 8.3% Operating cash fl
Slide 25: Strong financial profile as basis for further growth & dividend payments
Strong financial profile as basis for further growth & dividend payments Strong financial profile Corporate Bond Revolving Credit Convertible Bond Promissory note (SSD) €75mn lines €100.2mn €200mn due 04/2018 €156mn due 09/2020 €140mn due in 11/2020 due 10/2020 with option €17mn due in 11/2022 of re
Slide 26: Disclaimer
Disclaimer • By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by SAF-HOLLAND S.A. ("SAF-HOLLAND") for use at a road show presentation by SAF-HOLLAND
Slide 27: Investor Relations
Investor Relations SAF-HOLLAND GmbH Stephan Haas Hauptstraße 26 63856 Bessenbach Phone +49 6095 301-617 Telefax +49 6095 301-102 Mobile +49 170 306 64 97 Stephan.Haas@safholland.de www.safholland.com 27