SAF-Holland SE · XETR:SFQ
SAF-Holland — 9M 2020 Earnings Presentation
30 slides from SAF-Holland's earnings presentation, Nov 18, 2020
Slide 1: Financial results 9M 2020
ALEXANDER GEIS (CEO) INKA KOLJONEN (CFO) Financial results 9M 2020 18 NOVEMBER 2020 Financial Results 9M 2020 < 1 >
Slide 2: Agenda
AGENDA Welcome 1 Performance 9M 2020 – Very solid performance in a challenging market environment 2 Outlook Financial Results 9M 2020 < 2 >
Slide 3: Today's speakers – Welcome to our 9M 2020 Financial Results Conference
Today’s speakers – Welcome to our 9M 2020 Financial Results Conference Alexander Geis Inka Koljonen Chairman of the Management Board and Chief Member of the Management Board and Chief Executive Officer Financial Officer • With the company since 1992 • With the company since September 2020 • Responsi
Slide 4: Performance 9M 2020 – Very solid performance in a challenging market environment
1 Performance 9M 2020 – Very solid performance in a challenging market environment Financial Results 9M 2020 < 4 >
Slide 5: 9M 2020 results demonstrate resilience of our business model – guidance raised
9M 2020 results demonstrate resilience of our business model – guidance raised •9M 2020 adj. EBIT margin with 5.4 per cent above the P upper end of the FY guidance range of 3 to 5 per cent Adj. EBIT Sales margin •High share of aftermarket business safeguards P profitability in crisis times € 709 MN
Slide 6: Group – Adj. EBIT margin above the upper end of the previous guidance range
Group – Adj. EBIT margin above the upper end of the previous guidance range • Sales 9M 2020 down by 29.7 per cent yoy SALES (€ MN) SALES BY QUARTER (€ MN) 2019 2020 • But Q3 2020 sales figure shows recovery compared to Q2 2020 (+ 20.5 per cent) led by the EMEA region 1.009 709 • Adj. EBIT margin 9M
Slide 7: EMEA – Adj. EBIT margin very robust despite COVID-19
EMEA – Adj. EBIT margin very robust despite COVID-19 • Sales 9M 2020 down by 17.8 per cent yoy SALES (€ MN) SALES BY QUARTER (€ MN) 2019 • Q3 2020 sales figure down only 5.4 per 2020 cent yoy; good recovery in all areas 492 • Adj. EBIT margin 9M 2020 at 8.7 per cent 405 (9M 2019: 9.5 per cent) • Mai
Slide 8: Americas – Improved adj. EBIT margin despite massive sales decline
Americas – Improved adj. EBIT margin despite massive sales decline • Sales 9M 2020 down by 39.9 per cent yoy SALES (€ MN) SALES BY QUARTER (€ MN) 2019 2020 • Americas region strongly hit by COVID-19 even in Q3 with sales down by 47.0 per cent yoy 416 • Adj. EBIT margin 9M 2020 at 3.5 per cent 250 re
Slide 9: APAC – Lockdown and delayed ramp-up weigh on sales and profitability
APAC – Lockdown and delayed ramp-up weigh on sales and profitability • Sales 9M 2020 down by 46.2 per cent yoy SALES (€ MN) SALES BY QUARTER (€ MN) 2019 • Several weeks lockdown of the Chinese, 2020 Australian, Indian and Singapore entities • Ceased export business as a result of the trade dispute b
Slide 10: Truck and trailer production 9M 2020 vs. 9M 2019
Truck and trailer production 9M 2020 vs. 9M 2019 – COVID-19 strongly impacted already weakening markets NORTH SOUTH EUROPE CHINA INDIA AMERICA AMERICA* Truck Trailer Truck Trailer Truck Trailer Truck Trailer Truck Trailer -30% to -35% -25% to -30% -45% to -50% -40% to -45% +10% to +20% +10% -35% to
Slide 11: Investments and D&A – Capex ratio within target range of 2.0 to 2.5 per cent
Investments and D&A – Capex ratio within target range of 2.0 to 2.5 per cent • Investments in plant, property, equipment INVESTMENTS (IN % OF SALES) INVESTMENTS BY QUARTER (IN % OF SALES) 2019 and intangible assets reached 2.3 per cent 2020 of Group sales (FY 2020 guidance: around 5,9% 2.5 per cent
Slide 12: Net working capital – Cash-is-King program well on track
Net working capital – Cash-is-King program well on track • Net working capital (NWC) in Q3 significantly down both in absolute and NET WORKING CAPITAL (€ MN) NET WORKING CAPITAL (IN % OF SALES)* 300 20% relative terms compared to previous year 19,2% • Minus 36.2 per cent from € 217.3 mn to 18,9% € 1
Slide 13: Operating free cash flow significantly improved due to successful NWC management and lower capex
Operating free cash flow significantly improved due to successful NWC management and lower capex in EUR thousands Q1 2019 Q2 2019 Q3 2019 Q1-Q3 Q4 2019 Q1-Q4 Q1 2020 Q2 2020 Q3 2020 Q1-Q3 2019 2019 2020 EBITDA 28,411 29,195 12,120 69,726 18,487 88,213 25,876 6,550 21,061 53,486 Delta NWC -14,914 -7,
Slide 14: Q3 2020 – Net debt reduced by € 46.5 mn vs. Q2 2020
Q3 2020 – Net debt reduced by € 46.5 mn vs. Q2 2020 due to improved cash generation Net Debt incl. Finance Lease Liabilities (€ MN) 300 282,8 278,9 274,7 250,9 251,7 256,2 250 232,4 200 150 100 50 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 NOTE: All figures shown are rounded, minor di
Slide 15: Outlook
2 Outlook Financial Results 9M 2020 < 15 >
Slide 16: 2020 Outlook truck and trailer production – Global downturn expected vs. 2019
2020 Outlook truck and trailer production – Global downturn expected vs. 2019 NORTH SOUTH EUROPE CHINA INDIA AMERICA AMERICA*** Truck Trailer Truck Trailer Truck Trailer Truck Trailer Truck Trailer -30% to -15% to -40% to -40% to 0% to -5% to -30% to -5% to -40% to -40% to New* New* New* New* New* -
Slide 17: Guidance 2020 raised
Guidance 2020 raised FY 2019 FY 2020* (new) FY 2020 (old) Decline by 20 to Decline by 20 to Sales € 1,284 mn 30 per cent 30 per cent Between 5 and 6 Between 3 and 5 Adj. EBIT margin 6.2 per cent per cent per cent 4.1 per cent of Around 2.5 per Around 2.5 per CAPEX sales cent of sales cent of sales •
Slide 18: Your key takeaways
Your key takeaways • Consistent aftermarket business safeguards profitability • SG&A savings programs will be continued • Cash-is-King program on track • Solid financial profile • Operational excellence as key driver Financial Results 9M 2020 < 18 >
Slide 19: Financial calendar & IR contact
Financial calendar & IR contact DATE EVENT Investor Relations Contact 25.11.2020 SAF-HOLLAND Virtual Investor & Analyst Day Michael Schickling T: +49 (0) 6095 301 617 E: ir@safholland.de Alexander Pöschl T: +49 (0) 6095 301 117 E: ir@safholland.de Klaus Breitenbach T: + 49 (0) 6095 301 565 E: ir@saf
Slide 20: We are happy to answer your questions
»WE ARE HAPPY TO ANSWER YOUR QUESTIONS.« Financial Results 9M 2020 < 20 >
Slide 21: Appendix
Appendix Financial Results 9M 2020 < 21 >
Slide 22: P&L 9M 2020 – Extraordinary items
P&L 9M 2020 – Extraordinary items Total Q1-Q3/2020 in % Total Q1-Q3/2019 in % in EUR thousands Q1-Q3/2020 Adjustments adjusted* of sales Q1-Q3/2019 Adjustments adjusted* of sales Sales 708,698 – 708,698 100.0% 1008,626 – 1008,626 100.0% Cost of sales -589,694 8,504 -581,190 -82.0% -844,385 9,116 -83
Slide 23: Group – Reconciliation EBIT to adjusted EBIT
Group – Reconciliation EBIT to adjusted EBIT in EUR thousands Q1-Q3 2020 Q1-Q3 2019 Change absolute Change in % EBIT 18,943 38,895 -19,952 -51.3% EBIT margin in % 2.7% 3.9% - - Additional depreciation and amortization of property, 7,876 7,288 588 8.1% plant and equipment and intangible assets from P
Slide 24: EMEA – Reconciliation EBIT to adjusted EBIT
EMEA – Reconciliation EBIT to adjusted EBIT in EUR thousands Q1-Q3 2020 Q1-Q3 2019 Change absolute Change in % EBIT 28,823 40,518 -11,695 -28.9% EBIT margin in % 7.1% 8.2% - - Additional depreciation and amortization of property, 3,478 3,449 29 0.8% plant and equipment and intangible assets from PPA
Slide 25: Americas – Reconciliation EBIT to adjusted EBIT
Americas – Reconciliation EBIT to adjusted EBIT in EUR thousands Q1-Q3 2020 Q1-Q3 2019 Change absolute Change in % EBIT 2,949 18,567 -15,618 -84.1% EBIT margin in % 1.2% 4.5% - - Additional depreciation and amortization of property, 1,794 1,912 -118 -6.2% plant and equipment and intangible assets fr
Slide 26: APAC – Reconciliation EBIT to adjusted EBIT
APAC – Reconciliation EBIT to adjusted EBIT in EUR thousands Q1-Q3 2020 Q1-Q3 2019 Change absolute Change in % EBIT -12,829 -20,190 7,361 -36.5% EBIT margin in % -23.8% -20.2% - - Additional depreciation and amortization of property, 2,604 1,927 677 35.1% plant and equipment and intangible assets fr
Slide 27: Adj. EBITDA margin
Adj. EBITDA margin ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER Group 2019 10,1% 2020 9,0% 9,2% 9,2% 9,7% 9,8% 7,8% 8,6% 7,4% YTD Q1 Q2 Q3 Q4 ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER EMEA 2019 14,3% 11,9% 13,1% 2020 11,8% 11,5% 12,3% 11,9% 12,0% 10,0% YTD Q1 Q2 Q3 Q4 NOTE: All figures sh
Slide 28: Adj. EBITDA margin
Adj. EBITDA margin ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER Americas 2019 10,2% 10,3% 2020 8,5% 8,0% 8,0% 7,3% 7,6% 6,1% 5,8% YTD Q1 Q2 Q3 Q4 ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER APAC 2019 5,1% 2020 0,9% -3,2% -1,8% -5,8% -7,5% -10,5% -12,0% -18,0% YTD Q1 Q2 Q3 Q4 NOTE: All figur
Slide 29: Current financing structure
Current financing structure MATURITY PROFILE (€ MN) Amount Maturity Product € mn date Promissory note loan old (5 years) 52.0 11/2020 100** Loan RMB 9.0 06/2022 Promissory note loan old (7 years) 5.0 11/2022 Promissory note loan new (3 years) 141.0 03/2023 Promissory note loan new (3.5 years) 20.0 1
Slide 30: Disclaimer
Disclaimer Not for general release, publication or distribution in the United States, Australia, Canada or Japan. By attending this presentation you agree to be bound by the following limitations: This presentation has been prepared by SAF-HOLLAND SE (“SAF-HOLLAND”) and comprises written materials c