Slide 1: Financial Results Q3/21
Quarterly Statement June 1 to September 30, 2021 FINANCIAL RESULTS Q3/21 DR. JAN MROSIK I CEO FRANK WEBER I CFO NOVEMBER 12, 2021
Slide 2: Q3/21 Highlights
Q3/21 Highlights Financial KPIs improved yoy Revenues +4% yoy and op. EBIT margin at 13.6% (+90bps), EPS of € 0.91 (+11% yoy) Order book of € 5bn provides solid outlook for quarters ahead Strong underlying demand momentum, but increasing impact from supply shortage Revenues +10% yoy and EBIT margin
Slide 3: Current market and business environment
Current market and business environment Market fundamentals in rail fully intact No order cancellations and no major supply issues Robust current orders for our OE customers, however, Market recovery slower than OI lead times for suppliers ~12-18 months expected Postponements of tenders and contract
Slide 4: Outlook market and business environment – what do we expect?
Outlook market and business environment – what do we expect? Market fundamentals in rail fully intact Market growth of 2-3% p.a. supported by stimulus programs Strong potential and attractiveness Global rail traffic not back to pre-Covid levels globally of rail market unchanged anytime soon TPRs1 FY
Slide 5: Highlights 9M/21: strong development of key financials
Highlights 9M/21: strong development of key financials ORDER INTAKE € 5.04bn ORDER BOOK € 5.01bn (15.7% yoy) (12.3% yoy) REVENUES OF € 5.01bn 14.2% OP. EBIT MARGIN (9.1% yoy) (PY: 12.9%) € 2.46bn € 2.55bn op. 18.0% 11.7% (-4.0% yoy) (+25.8% yoy) (PY: 18.4%) (PY: 7.8%) € 297m FREE CASHFLOW (PY: € 169
Slide 6: Highlights Q3/21: solid performance in a challenging environment
Highlights Q3/21: solid performance in a challenging environment ORDER INTAKE € 1.44bn ORDER BOOK € 5.01bn (-11.8% yoy) (12.3% yoy) REVENUES OF € 1.59bn 13.6% OP. EBIT MARGIN (3.6% yoy) (PY: 12.7%) € 805m € 785m op. 17.6% 10.8% (-2.0% yoy) (+10.3% yoy) (PY: 17.8%) (PY: 9.0%) € 189m FREE CASHFLOW (PY
Slide 7: Order book increases and provides solid foundation for FY22
Order book increases and provides solid foundation for FY22 Order intake Order book €m €m 1.06x Book-to-bill 0.90x +12.3% 5,007 -11.8% 1,628 4,458 11 26 1,435 RVS -230 RVS 726 3,451 RVS RVS -14.1% 739 3,400 CVS EVAC 902 € 11m (Q3/21) CVS CVS 697 CVS 1,569 1,071 Q3/20 Organic M&A FX Q3/21 30.09.20 30
Slide 8: Revenue increase driven by Europe and North America
Revenue increase driven by Europe and North America Revenue €m By business By region +3.6% 1,534 1,589 1,534 25 13 17 1,589 19 77.8% 34 SA Asia/ 455 482 -5.7% Pacific 1.6% RVS RVS 805 822 3.6% 335 NA 323 EVAC CVS CVS 766 € 13m (Q3/21) 709 8.0% EU 712 785 Q3/20 Organic M&A FX Q3/21 Q3/20 Q3/21 8
Slide 9: Operating profitability impacted by Covid and supply issues
Operating profitability impacted by Covid and supply issues op. EBITDA/ margin op. EBIT/ ROS EPS2 €m € Op. EBIT margin at 13.6% in Q3/21 18.1%3 +11.0% 17.5% ▪ Operating leverage, cost measures and fix cost discipline supported margin increase 13.6%3 0.91 12.7% 0.82 ▪ Margin impacted by adverse divis
Slide 10: Focused capex spending and stringent NWC management drives ROCE
Focused capex spending and stringent NWC management drives ROCE CapEx NWC ROCE (annualized) €m % of sales €m Scope of days % 5.4% 5.2% 69.5 25.3% 60.5 22.2% 1,181 82 82 1,122 310 bps Q3/20 Q3/21 30.09.20 30.09.21 30.09.20 30.09.21 ▪ Disciplined and focused investments ▪ NWC in days improved due to h
Slide 11: Strong Free Cashflow and Cash Conversion Rate >100%
Strong Free Cashflow and Cash Conversion Rate >100% Free Cashflow1 Cash Conversion Rate €m +3.8% 129% 126% ▪ Free Cashflow increased by 3.8% to € 189m 189 182 ▪ CCR with 126% on high level and almost same level yoy ▪ Stringent and focused capex prioritization ▪ Tax rate improved ▪ Working capital lo
Slide 12: RVS: High order book provides solid visibility
RVS: High order book provides solid visibility and strong OI in Q4/21 expected Order intake Order book €m Order book increased by 1.5%yoy +1.5% ▪ Order book well supported by resilient and 0.88x Book-to-bill 0.92x 3,451 stable rail industry despite Covid momentum in 3,400 Q3/21; no cancellations of
Slide 13: RVS: Order book continues to grow
RVS: Order book continues to grow providing solid foundation for future growth Order intake Order book Revenues (FY) Quarterly seasonality In €m Q1 Q2 Q3 Q4 In €m +6% 1200 YE21e1: € 3.6-3.8bn ~1x 4000 +6% -9% +9% ∑ 4,017 YE20: € 3.7bn 1.04x Positive ∑ 3,485 YE19: € 3.6bn 1.10x 3000 1000 ∑ 3,536 YE18
Slide 14: RVS: Covid impact persists on rail industry and RVS
RVS: Covid impact persists on rail industry and RVS Revenue op. EBIT / EBITDA €m 17.8% 17.6%2 Revenue slightly down in Q3/21 yoy -2.9% ▪ AM: slightly up yoy, but still impacted by lower -2.0% rail traffic 146 0.2 2 142 ▪ EU: Overall slightly higher in both OE and AM 822 13 11 805 -7 ▪ APAC: Slightly
Slide 15: CVS: OI impacted by supply shortages
CVS: OI impacted by supply shortages – underlying demand and order book strong Order intake Order book €m OI development in Q3/21 impacted by high levels in H2/20 and H1/21 +46.6% 1.27x Book-to-bill 0.89x ▪ Supply shortages constrained higher OI in Q3/21. 1,569 Further postponements expected in Q4/2
Slide 16: CVS: Solid profitability still impacted by extra costs
CVS: Solid profitability still impacted by extra costs Revenue op. EBIT / EBITDA €m Revenues impacted by shortage related OEM 9.0% 10.8% production stops after record levels in H1/21 ▪ EU & NA: Significant impact from supply chain +32.9% crisis reflected in sharp reduction of production +10.3% 21 0
Slide 17: Narrowing of the guidance ranges
Purely market driven developments lead to a narrowing of the guidance ranges Revenue guidance € 6,500-6,900m € 6,600-6,800m RVS CVS Acquisition of EVAC ▪ Slower recovery of ▪ Stronger market than global rail markets expected (TPR) ▪ Lower revenues by supply issues for truck market old new Op. EBITDA
Slide 18: Outlook – positive development in FY22 expected
Outlook – positive development in FY22 expected, but still meaningfully impacted by the Covid pandemic and supply shortages Guidance FY21e First indications FY22e Assumptions FY22 Stable economic environment in important markets Revenues € 6,600-6,800m Slight to solid No major FX changes FY22 vs
Slide 19: Invitation to Knorr-Bremse's Capital Markets Day 2021
Invitation to Knorr-Bremse’s Capital Markets Day 2021 November 29, 2021 19
Slide 20: Key take aways
Key take aways Q3/21 KPIs noticeably impacted by Covid pandemic, but long- term megatrends in both divisions unchanged and strong Deep dive in strategy and divisional topics at CMD Strong Covid-related impact on CVS (supply) and RVS (speed of recovery) Guidance: FY21 narrowed and confirmed as well a
Slide 21: Q&A / Backup
Q&A / Backup 21
Slide 22: Financial calendar: upcoming events
Financial calendar: upcoming events Date Event November 29, 2021 Capital Markets Day December 1, 2021 DZ Bank Conference December 3, 2021 Société Générale EU Conference December 6/7, 2021 Berenberg Conference (Pennyhill) December 7, 2021 Roadshow December 8, 2021 UBS Mobility Conference December 13,
Slide 23: Backup
a) KNORR-BREMSE Backup
Slide 24: 9M/21 – Group
9M/21 – Group Order intake Order book €m €m 0.95 Book-to-bill 1.01 +12.3% +15.7% 5,007 742 43 5,038 4,458 4,355 -102 RVS 2,190 RVS RVS 17.0% RVS 3,451 2,390 3,400 EVAC € 16m (9M/21) CVS R.H. Sheppard 2,850 CVS € 28m (Q1/21) CVS 1,963 CVS 1,569 1,071 9M/20 Organic M&A FX 9M/21 9M/20 9M/21 24
Slide 25: 9M/21 – Group
9M/21 – Group Revenue €m By business €m By region y-o-y growth +9.1% 468 46 5,008 5,008 4,589 88 SA 4,589 -95 54 63.2% 1,504 Asia/ 10.2% RVS Pacific 1,518 -0.9% 2,460 RVS 2,563 1,041 11.3% NA 936 EVAC € 18m (9M/21) R.H. Sheppard € 29m (Q1/21) CVS CVS 2,549 14.1% 2,375 EU 2,082 2,026 9M/20 Organic M&
Slide 26: 9M/21 – Group
9M/21 – Group op. EBITDA/ EBITDA Margin op. EBIT/ EBIT Margin (ROS) €m 18.4% 17.5% 14.2% +14.3% 12.9% 130 2 919 +20.2% 804 -16 133 712 RVS 592 -2 -11 16.1% RVS RVS 535 361 RVS 568 RVS RVS 443 RVS 22.4% 390 RVS 301 472 EVAC 326 EVAC € 0.3m1 (9M/21) CVS € 0.3m1 (9M/21) 400 CVS CVS R.H. Sheppard R.H. S
Slide 27: 9M/21 – Group
9M/21 – Group OCF & FCF CapEx NWC ROCE (annualized) €m OCF FCF €m % of sales €m Scope of days % 69.5 5.0% +76.2% 60.5 +32.3% 4.2% 25.3% 1,181 22.2% 489 1,122 369 230 212 297 169 9M/20 9M/21 9M/20 9M/21 30.09.20 30.09.21 9M/20 9M/21 27
Slide 28: 9M/21 – RVS
9M/21 – RVS Order intake Order book €m +1.5% 0.93 Book-to-bill 0.89 3,451 -8.4% 3,400 2,390 16 2,190 -196 -20 -8.2% EVAC € 16m (9M/21) 9M/20 Organic M&A FX 9M/21 30.09.20 30.09.21 28
Slide 29: 9M/21 – RVS
9M/21 – RVS Revenue op. EBITDA / EBITDA margin op. EBIT / EBIT margin (ROS) €m -4.0% 22.2% 21.7%2 2,563 18.4% 18.0%2 18 2,460 -5.9% -99 -21 568 -6.1% 0.3 535 -3.9% 472 -28 -6 0.3 443 -4.9% -25 -5 EVAC -5.2% € 18m (9M/21) EVAC EVAC € 0.3m1 (9M/21) € 0.3m1 (9M/21) 9M/20 Organic M&A FX 9M/21 9M/20 Orga
Slide 30: 9M/21 – CVS
9M/21 – CVS Order intake Order book €m 0.97 Book-to-bill 1.12 +45.2% 941 28 2,850 -82 +46.6% 1,963 1,569 48.0% 1,071 R.H. Sheppard € 28m (Q1/21) 9M/20 Organic M&A FX 9M/21 30.09.20 30.09.21 30
Slide 31: 9M/21 – CVS
9M/21 – CVS Revenue EBITDA / EBITDA margin EBIT / EBIT margin (ROS) €m 15.7% +25.8% 12.8% 11.7% 7.8% 568 29 2,549 +53.8% -74 149 1 +89.1% 400 2,026 -11 150 299 -2 -7 28.0% 260 158 57.5% R.H. Sheppard 95.0% € 29m (Q1/21) R.H. Sheppard R.H. Sheppard € 1m (Q1/21) € -2m (Q1/21) 9M/20 Organic M&A FX 9M/2
Slide 32: Income statement
Income statement INCOME STATEMENT 2020 2021 2020 2021 EUR million Q1/20 Q2/20 Q3/20 Q4/20 FY/20 Q1/21 Q2/21 Q3/21 9M/20 9M/21 Revenues 1,627.5 1,428.3 1,533.5 1,567.4 6,156.7 1,691.5 1,727.4 1,589.2 4,589.3 5,008.1 Change in inventory of unfinished/finished products -0.8 15.1 -6.7 -18.9 -11.3 30.0 2
Slide 33: Cashflow
Cashflow CASHFLOW STATEMENT (shortened) 2020 2021 2020 2021 EUR million Q1/20 Q2/20 Q3/20 Q4/20 FY20 Q1/21 Q2/21 Q3/21 9M/20 9M/21 Net cash flows from/used in operating activities 3.5 115.1 250.8 666.6 1,036.0 27.6 196.1 265.1 369.4 488.7 Net cash flows from/used in investing activities -57.8 -195.5
Slide 34: Balance sheet / assets
Balance sheet / assets BALANCE SHEET 2020 2021 EUR thousand 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 30.09.2021 Assets Intangible assets and goodwill 858.8 896.2 888.5 887.8 899.2 967.5 986.9 Property, plant and equipment 1,437.2 1,490.0 1,479.5 1,544.7 1,589.1 1,611.6 1,618
Slide 35: Balance sheet / liabilities
Balance sheet / liabilities 2020 2021 EUR thousand 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 30.09.2021 Equity Subscribed capital 161.2 161.2 161.2 161.2 161.2 161.2 161.2 Capital reserves 13.9 13.9 13.9 13.9 13.9 13.9 13.9 Retained earnings 34.2 34.2 34.2 13.3 13.3 13.3 13.3
Slide 36: Investor relations contact
Investor relations contact Andreas Sophia Spitzauer Kursawe +49 89 3547 182310 +49 89 3547 187311 +49 175 5281320 +49 151 62330709 Andreas.Spitzauer@knorr-bremse.com Sophia.Kursawe@knorr-bremse.com 36
Slide 37: Disclaimer
Disclaimer IMPORTANT NOTICE This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or an invitation to subscribe for, underwrite or otherwise acquire, an